HomeMy WebLinkAboutAGENDA REPORT 2010 1117 CC REG ITEM 10F ITEM 10Y.
ACTION:
a d
MOORPARK CITY COUNCIL ,
AGENDA REPORT
TO: Honorable City Council
FROM: David A. Bobardt, Community Development r for
Prepared by Joseph Fiss, Principal Planner
DATE: October 25, 2010 (CC Meeting of 11/17/2010)
SUBJECT: Consider Release of Surety (Letter of Credit) for A-B Properties (TM
5147)
BACKGROUND
On December 16, 1998, the City Council adopted Ordinance No. 250 (effective January
15, 1999), approving a Development Agreement between the City of Moorpark and A-B
Properties in connection with General Plan Amendment (GPA) No. 97-02 and Zone
Change (ZC) No. 97-06 and on March 15, 2000, the City Council adopted Resolution
No. 2000-1714, approving Tentative Tract Map 5147 for seventeen (17) lot industrial
subdivision of 34.5 acres, located north of the Union Pacific Railroad tracks and about
one-quarter (1/4) of a mile west of Gabbert Road.
DISCUSSION
Condition of Approval No. CED-33 of Resolution No. 2000-1714 and Section 6.21 of
Development Agreement 1998-04 (Ordinance No. 250) require that Developer construct
an off-site 32-foot wide paved access road, encumbered by a right-of-way easement
recorded January 4, 1968 in favor of Southern California Edison ("SCE"), to serve as
primary access, emergency access and for utility purposes, until the Improvements as
defined in Section 6.22 of the Development Agreement are constructed, or until other
alternative access is provided via construction of a 2-lane portion of North Hills Parkway
from the Property to Gabbert Road following Moorpark's approval of an amendment to
said Development Agreement. Following completion of the Improvements or the other
alternative access, this access road to Gabbert Road would revert to emergency access
purposes only.
195
Honorable City Council
November 17, 2010
Page 2
SCE allowed use of the Existing Access Easement for grading access, but did not permit
use for public access to the affected property. This prohibition made it impossible for the
developer to comply with the required conditions of approval.
On January 23, 2008, the developer requested in writing that Moorpark initiate eminent
domain proceedings to acquire all property necessary from SCE to construct the Paved
Access Road Interests pursuant to Section 7.4 of the A-B Development Agreement.
On May 6, 2008 the City entered into a reimbursement agreement for the City's costs,
including legal fees, related to the process of acquisition, guaranteed by a Letter of Credit
in the amount of$200,000.00.
SCE and A-B Properties have negotiated a settlement allowing public use of the access
road and the City Attorney has indicated that legal costs related to this action will no
longer be accrued.
A-B Properties has accrued $192,184.55 in direct City Attorney costs that have been
billed to the City as of September 15, 2010. Resolution No. 2010-2896 requires that all
contract services shall be billed at cost, plus fifteen percent. In this case, the total billed
costs are $221,012.23 because substantial additional time was needed to reach a
settlement. The direct legal fees for the acquisition were initially expected to not
exceed $100,000.00, which would mean that the City would have billed A-B Properties
no more than $115,000.00. In order to offset the additional $92,184.55 of unexpected
legal fees, staff recommends that the City Council direct staff to collect the fifteen
percent administrative fee only for the first $100,000.00 ($15,000.00) and bill A-B
Properties the $92,184.55 of direct legal fees with no additional administrative fee, for a
total of $207,184.55, a savings to the applicant of $13,827.68. Staff is satisfied that
$15,000.00 fully covered the costs of administering this agreement due to the
economies of scale of the size of the contract. Additionally, staff costs, including those
of the Deputy City Manager, Community Development Director and Public Works
Director, have been charged and billed directly to the developer's condition compliance
deposit, consistent with the City's policy for reimbursement of all direct costs related to
development projects.
The following is the applicable surety:
SURETY NUMBER ORIGINAL PRIOR AUTHORIZED
TYPE SURETY AUTHORIZED ACTION OF
AMOUNT ACTION 11/17/2010
Irrevocable 080501.OD.4939 $200,000.00 NONE Release Letter
Standby Letter of Credit
of Credit
SACommunity Development\DEV PMTS\T T M\5147 A-B Properties\cc agenda report LOC release 101117.doc 196
Honorable City Council
November 17, 2010
Page 3
FISCAL IMPACT
None.
STAFF RECOMMENDATION
Authorize the City Clerk to release the Letter of Credit surety referenced in the agenda
report for A-B Properties and to bill no more than $15,000.00 of administrative cost
related to the reimbursement agreement.
SACommunity Development\DEV PMTS\T T M\5147 A-B Properties\cc agenda report LOC release 101117.doc 197
Lawyers Title
AD INSURANCE CORPORATION
RO 1701 Solaf D�.Soto 250
Os CA 90030
-93&54' (11M)484-2701
SEE DETAIL 0 T 2
PARCEL
PARCEL MAP WAIVER NO.SD06-0064
DETAIL A
SEE DETAIL C
o
T.
20,00' 0.00# -------
SEE DETAIL B
O
10.00---
C
Ifffft
2.00'1
O
O DETAIL B
o
CZ)
42.50'
52.50'
DETAIL C
280.DO'
SEE DETAIL A
4-7
2W
DETAIL D
This is neither a plat nor a survey. Lawyers Title makes no representation nor are we assuring any party as to the exact location of the
easements burdening the land shown hereon. This map is being furnished as a convenience to show the approximate location of said
easements only and no liability is assumed by Lawyers Title by reason of reliance hereon. Should precise location of said easements
be required,it is advised that parties contact a licensed surveyor directly 198