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HomeMy WebLinkAbout10/19/1999, C10 - AGREEMENT TO TERMINATE CITY OBLIGATION TO SERVE WATER TO PROPERTY ON OLD STAGE COACH ROAD. council to -1q -91 j agcnaa Report ]CIO CITY OF SAN LUIS OBISPO FROM: John Moss, Utilities Director Prepared By: Dave Pierce,Water Projects Manager SUBJECT: AGREEMENT TO TERMINATE CITY OBLIGATION TO SERVE WATER TO PROPERTY ON OLD STAGE COACH ROAD. CAO RECOMMENDATION Approve an agreement with J. Dennis Ahearn and Sandra D. Ahearn in the amount of$10,000.00 for discontinuance of water service,transfer of water rights and conveyance of real property. DISCUSSION This agreement is a component of the project to terminate the City's obligations to provide free water to certain properties from the Hansen & Gularte Creeks Pipeline. Since 1912, the City has been responsible to provide water to property on Old Stage Coach Road that is currently owned by Mr. and Mrs. Ahearn. Water is provided without charge as a condition of the agreement granting to the City the right to construct diversion structures and pipelines to deliver water from that property for use in the City of San Luis Obispo. Since the storms of 1995, portions of the delivery system have been out of operation and water has been hauled by truck to meet domestic needs at the Ahearn property. The City has replaced the two diversion structures and repaired water lines to provide the water required by the 1912 deed. The cost of these repairs and the hauling of water is being reimbursed by FEMA. The deed signed in 1912 provided the City with: 1. A 3/acre parcel to be used as a part of a reservoir on San Luis Obispo Creek. 2. Rights to the waters crossing the property. 3. Easements for the construction and maintenance of diversion structures and pipelines. In exchange the property owner received 1. $5,250.00 2. Water without charge from the City pipehrreim two houses, gardens and cattle troughs. The City no longer has any use for the diversion structures and pipeline. Since the water has not been used within the City for more than 20 years, the City has lost the legal right to use the water within the City. The new agreement will return. to the property owner the City's interests in the water system and will terminate the City's obligation to provide water at this site. Specifically the agreement will: 1. Quitclaim any rights that the City may have to the waters crossing this property. These rights are limited to serving the property owned by the Aheams. C10-1 Council Agenda Report-Hansen-Gularte Water System Page 2 2. Quitclaim the easements for construction and maintenance. of the diversions and pipelines. 3. Quitclaim any interest in the diversions and pipelines. 4. Pay $10,000.00 for future costs associated with operation and maintenance of the private system. In exchange the City will be released from any obligation to: 1. Provide water to this site. 2. Operate or maintain the diversions and pipeline. FISCAL E"ACT Proposed payment to owner for operation and maintenance of the water system is $10,000.00. Funding for this project is available in the Hansen-Gularte Waterline Project account. There was a balance of$80,424 at the beginning of the year. $27,600 has been charged to this account leaving sufficient fimding to complete the project. This is a portion of the Hansen and Gularte Waterline Abandonment CIP project(1995-97 Financial Plan,Appendix B pages 32 and 33). Remaining phases to be completed: • Complete well development(Miossi) 15,000.00 ALTERNATIVES Other options to meet the City's obligation to provide water to the Ahearn property include: (a) continuing to operate and maintain the diversion structures and pipelines plus add treatment for all water delivered for domestic use so that it meets State Department of Health Service requirements,or (b) maintaining the existing diversions and pipelines to provide water for cattle and gardens and trucking potable water for domestic use at two houses. Neither of these alternatives is recommended as it would not satisfy the City's goal of eliminating the legal obligation to serve water to this property as described, and the annual and ongoing operations and maintenance costs would far exceed the cost of the recommended action. AT TACEMENTS Agreement C10-2 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Utilities Department CITY OF SAN LUIS OBISPO 990 Palm Street San Luis Obispo, CA 93401 APN: 070-241-017 &070-241-018 THIS SPACE RESERVED FOR RECORDER ONLY (Gov.Code§27361.6) AGREEMENT FOR DISCONTINUANCE OF WATER SERVICE, TRANSFER OF WATER RIGHTS AND CONVEYANCE OF REAL PROPERTY and QUITCLAIM DEED This agreement is entered into this day of , 1999,by and between J. Dennis Ahearn and Sandra D. Ahearn, hereafter referred to as "Owner", and the City of San Luis Obispo, a chartered municipal corporation, hereafter referred to as "City",collectively referred to as "Parties". Parcel 1 of the property transferred from Josephine Garcia Avila to J. Dennis Ahearn and Sandra D.Ahearn, husband and wife, as community property on December 23, 1977 by Grant Deed recorded in volume 2050 on page 274 of Official Records of San Luis Obispo County, CA, and identified by assessors parcel numbers 070-241-017&070-241-018 is hereinafter referred to as "Subject Parcel". Water has been supplied by the City to the Subject Parcel from the Hansen-Gularte Pipeline,as stipulated in the Indenture signed November 18, 1912, recorded in volume 95 on page 277 of Deeds, at the San Luis Obispo County Recorders Office. In consideration of the mutual and respective covenants and promises set forth herein and subject to all the terms and conditions hereof,the Parties hereby agree as follows: 1. The City quitclaims, to the Owner,the existing water system consisting of springs, spring boxes and pipelines all of which are on Subject Parcel. The City shall have no further responsibility for that water system and shall have no further right of access for maintenance of that system. C10-3 2. The City quitclaims, to the Owner, the rights of way and easement to lay and maintain pipeline as described 3rd in that certain deed recorded at Vol. 95, page 277 et seq of Deeds. 3. The City quitclaims, to Owner All the right, title and interest of the City of San Luis Obispo in, of and to the waters of the San Luis Obispo Creek, the Axel Hanson Creek and all tributary, or other streams and creeks flowing on, under,to and across the two hundred and eighty (280) acre tract described in that certain deed recorded at Vol. 95, page 277 et seq of Deeds. These rights specifically include any water rights associated with the diversions that were installed before 1914 to appropriate water. City also agrees not to contest or object to the use of said Water Rights on the Subject Parcel, or elsewhere,by Owner or their successors and assigns. City also agrees to execute all future documents necessary to confirm said transfer/ relinquishment of the Water Rights to Owner under this Agreement. The Parties agree and acknowledge that the City provides no warranty or representation with respect to the quality or quantity of the Water Rights quitclaimed to Owner by this Agreement. 4. This deed shall in no way be construed to limit the water rights,riparian, appropriative, or otherwise,retained by the grantors in that certain deed recorded at Vol. 95,page 277 et seq of Deeds and passed by chain of title to Grantee of this deed. 5. The Owner acknowledges receipt of the sum of$10,000.00 as compensation for future costs of maintenance,upkeep and replacement of the water supply system. 6. In consideration for the City's quitclaim to the existing water system and water rights and the specified cash payment,the Owner agrees that the City will have no further obligation to provide water to the Subject Parcel. The maintenance,upkeep or replacement of the water system is the responsibility of the Owner. 7. All notices, statements,requests or other communications that are required either expressly or by implication to be given by either party to the other under this agreement shall be in writing. 8. Any waiver at any time by either party hereto of its rights with respect to a breach or default, or any other matter arising in connection with this agreement,shall not be deemed to be a waiver with respect to any other breach, default or matter. 9. This agreement shall be binding on the heirs,executors, administrators, successors, agents, lessees and assigns of the respective parties. 10. This agreement is freely and voluntarily entered into by the parties after having had the opportunity to consult with their respective attorneys. The parties,in entering into this agreement, do not rely on any inducements,promises, or representations made by each other, their representatives,or any other person, other than those inducements,promises,and representations contained in this agreement. This agreement represents the entire agreement of the parties. 11. The City shall record this agreement and shall be responsible for any recording costs. 2 C10-4 IN WITNESS WIiEREOF, the parties have hereunto set their hands the day and year fust entered above, at San Luis Obispo, California. CITY OF SAN LUIS OBISPO RS: BY: Mayor Allen K. Settle J. De Ahearn Mayor Allen K ettle ATTEST: Sandra D. Ahearn City Clerk JACQUELEEN M.E Commission#1; 'Q 3 C z � NotaryPubGC-Ca: ,•ia y APPROVED AS TO FORM: son Luk Obispo Co :-y My Comm.Expires Jung: 20W ItCity Attorney PAMELA L TONG Commisfon#1227306 Notary Abi-Calitartda f = son Luk Obispo County My Comm.Fires Jul 2,2003 3 C10-5 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT i State of California I 1 County of SAN LDTS OBTSPO ss. r �) On 10/11/99 , before me, PAMFT.A x_ KTNr_, NOTARY PiIBi.TC Dab; Name and TFue of Officer(e.g.,-Jane Doe.Notary Pubfrc- 5 personally appeared JOHN DENNIS ANRARN Name(s)of Signer(s) � �.1 ❑ personally known to me ® proved to me on the basis of satisfactory r evidence c to be the person(j) whose name(j) iskMg subscribed to the within instrument and acknowledged to me that heexecuted PAMl3A IC IONG the same in his/MmMidu authorized Commission# 1 ca acit WCrYPubT� Carftmk3 p and that by hist Son Luis Obispo - signature(E)on the instrument the person(x), or Mycomm.I esJul Z CoLu*o� the entity upon behalf of which the person*) ` acted, executed the instrument. t1 WI ESS my hand and qNal seal. Placa Notary Seal Above signature of Notary Pubtic CY OPTIONAL Though the information below is not required by taw,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: n f� Document Date: Number of Pages: n: Signer(s) Other Than Named Above: � Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual 1 ❑ Corporate Officer—Title(s): Top or thumb mete ❑ Partner—❑ Limited ❑General ❑ Attorney in Fad fit ❑ Trustee ❑ Guardian or Conservator ❑ Other. c� u5 I Signer Is Representing: cI ®1997 National Notary Association-9350 De Soto Ave..P.O.Box 2402-Chatsworth,CA 91313-2402 Prod.No.5907 Reorder Can Toa-Free 1-800-f176-6827 C10-6 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT I ]I State of California c � ss. County of J&.y,, "% S 071 _ I C 21LY1 r`�l LrfinQ� - I �.uJ�tL On ii before me, Ik2 I Dale Ne and Title of Officer(e.g.,'Jane Doe.Notary Pubic") personally appeared Ar'1ea_Arr-- Name(s)of Signers) .I 2-rersonally known to me ❑ proved to me on the basis of satisfactory l evidence .I I 11ACQt)gy�M to be the person(s) whose name(s) is/are �CO�nisslon# 143 subscribed to the within instrument and tcw' ic-Cordbmio acknowledged to me that he/she/they executed Son Luis Obispor^'+�u,r+/�' I: � � the same in his/her/their authorized °% ^�•� r capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WIT SS hand and Aoffici se . Place Notary Seal Above Signature of Notary Public I I OPT/O Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document I Title or Type of Document: •I ' Document Date: Number of Pages: I• I Signer(s)Other Than Named Above: I Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual Top of thumb here ❑ Corporate Officer—Title(s): ❑ Partner—❑ Limited ❑General ) ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: I 1 Signer Is Representing: I L J tD 1997 National Notary Association•9350 De Soto Ave.,P,O.Box 2402•Chatsworth,CA 913132402 Prod.No.5907 Reorder.Call ToIFFree I-BOM76.6827 C10-7