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08.k. Well No 11 ProjectMEMORANDUM TO: CITY COUNCIL FROM: &" TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: MIKE LINN, ASSISTANT CITY ENGINEER SUBJECT: CONSIDERATION OF A RESOLUTION ACCEPTING ACCESS EASEMENTS AND WELL DEDICATION FOR TRACT 1998 AND A FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT WITH GARING, TAYLOR & ASSOCIATES FOR THE WELL NO. 11 PROJECT, PW 2010-07 DATE: JUNE 12,2012 RECOMMENDATION: It is recommended the City Council: 1. Adopt a resolution accepting access easements and a well dedication for Tract 1998; and 2. Authorize the Mayor to execute a First Amendment to Consultant Services Agreement ("First Amendment") with Garing, Taylor & Associates for the Well No. 1 1 Project, PW 201 0-07. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Well improvements and infrastructure will be required to make the well operational for City use. The Capital Improvement Budget includes $285,200 for design and construction of the Well No. 11 Project. The First Amendment revives and extends the term of the Garing, Taylor & Associates $56,480 agreement. The price and scope of work on the original agreement are unaffected. BACKGROUND: The existing well is located on the south side of La Canada Street approximately 800 feet north of the intersection of James Way was constructed to provide irrigation water for a development project. The well was constructed in 1992 with a PVC casing that is 6 inches in diameter and 305 feet deep. The City required dedication of the well as a condition of approval of Tract 1998. The Condition of Approval for the well dedication and related well site and access easements is as follows: 9. WELL DEDICATION AND EASEMENT. Within ninety (90) days of tentative tract map approval, and by separate written instrument, subject to the prior written approval of the City Attorney, the applicant shall offer to dedicate to City: Agenda Item 8.k. Page 1 CITY COUNCIL CONSIDERATION OF A RESOLUTION ACCEPTING ACCESS EASEMENTS AND WELL DEDICATION FOR TRACT 1998 AND A FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT WITH GARING, TAYLOR & ASSOCIATES FOR THE WELL NO. 11 PROJECT, PW 2010-07 JUNE 12,2012 PAGE 2 a) The existing water well ("we11'3 located in Lot 1, including existing well infrastructure and appurtenances located within the well easement described in subsection 6) below; and 6) An easement 16 feet wide and 25 feet deep along La Canada to include the existing well for the purpose of operating, maintaining, repairing and replacing the well; c) An easement 30 feet wide and 40 feet deep on Lot 16 along La Canada and south of Blossom Valley Road for the purposes of placing additional infrastructure to extract, treat, store and transport water from the well to the City's water distribution system; d) The applicant may reserve from the dedication the right to use untreated water from this well for construction of the subdivision improvements and residences. This right to use water for construction purposes shall terminate upon issuance of a notice of completion for the last residence in the project, or five years after final tract map approval, whichever is eadier. Applicant, for itself and for the HOA, may reserve from the dedication the right to use water from this well for establishment and maintenance of common area landscaping, including landscaping that is required by the MMRP. This right to use water for landscaping purposes shall terminate upon successful completion of the landscaping, mitigation and restoration requirements of the MMRP. e) In accordance with subsection d) above, the applicant, for itself, its successors in interest to the residential lots and for the HOA shall use any and all well water on and within the boundaries of the subdivision site. The size, location and configuration of the easement and the placement of equipment shall not unreasonably interfere or detract from the development of the lot on which the well will be located. g) The existing storage tanks will either be removed entirely by the applicant, or moved by the applicant to a location on the project site approved by the City that does not interfere with use and enjoyment of the residential subdivision lots. h) Applicant is responsible for all costs associated with pumping, treating, transporting and using well water reserved in subsection d) above, including the provision of electrical power to the existing well; the applicant is not responsible for any other utilities or equipment, including treatment equipment. On August 24, 2010, in anticipation of the well dedication, the Council awarded a design contract to Garing, Taylor & Associates to rehabilitate the existing irrigation well and provide the appropriate treatment facilities for conversion of the well for domestic use. Agenda Item 8.k. Page 2 CITY COUNCIL CONSIDERATION OF A RESOLUTION ACCEPTING ACCESS EASEMENTS AND WELL DEDICATION FOR TRACT 1998 AND A FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT WITH GARING, TAYLOR & ASSOCIATES FOR THE WELL NO. 11 PROJECT, PW 2010-07 JUNE 12,2012 PAGE 3 ANALYSIS OF ISSUES: Staff has successfully negotiated the terms and conditions of the well offer and dedication with the developer, Taos Holding Corporation. Acceptance of the well dedication will fulfill Condition of Approval No. 9. The City will provide water produced by the well for use by the project until the time the construction of subdivision improvements, residences, and required environmental mitigation are corr~pleted or 5 years after Final Map recordation, whichever is sooner. After that time, owners of the project will assume regular consumer status for water use from the City. Although they performed preliminary engineering on Well No. 11, Garing, Taylor & Associates has been unable to proceed with the project design as it was predicated on receipt of a formal well dedication. The agreement for Garirrg, Taylor & Associates expired on September 20, 201 1. The First Amendment will revive the agreement and extend the contract time to December 31, 2013. All payments shall be verified on a monthly basis and the pricing shall be based on pre-established terms and hourly rates. ALTERNATIVES: The following alternatives are provided for the Council's consideration: - Approve staffs recommendations; - Do not accept the recommendations; or - Provide direction to staff. ADVANTAGES: Adoption of the Resolution for the well acceptance and approval of the First Amendment will enable Garing, Taylor & Associates to continue design efforts to rehabilitate the existing irrigation well and provide the appropriate treatment facilities for conversion of the well for domestic use. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: A determination on the environmental review will be performed by the consultant as part of the contract. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, June 7, 2012. The Agenda and report were posted on the City's website on Friday, June 8, 2012. No public comments were received. Agenda Item 8.k. Page 3 CITY COUNCIL CONSIDERATION OF A RESOLUTION ACCEPTING ACCESS EASEMENTS AND WELL DEDICATION FOR TRACT 1998 AND A FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT WITH GARING, TAYLOR & ASSOCIATES FOR THE WELL NO. 11 PROJECT, PW 2010-07 JUNE 12,2012 PAGE 4 Attachment: 1. Consultant Services Agreement Amendment No. 1 Agenda Item 8.k. Page 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF 'THE CITY OF ARROYO GRANDE ACCEPTING AN OFFER TO DEDICATE WATER RIGHTS AND WELL AND RELATED EASEMENTS AND AGREEMENT FOR THE PROVISION OF CONSTRUCTION WATER FOR TRACT 1998 (TRACT 01-001) WHEREAS, an offer to dedicate to the City the water rights and well and related easements for a municipal water well site has been provided as required to satisfy the conditions of approval for Tract 1998; and WHEREAS, the City desires to accept the offer of dedication. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby accepts an irrevocable and perpetual offer by Taos Holding Corporation to dedicate water rights, a municipal water well site easements and related easements, as offered and described by the attached hereto as Exhibit "A, and which is incorporated herein by this reference. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this ,2012. day of Agenda Item 8.k. Page 5 RESOLUTION NO. PAGE 2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Agenda Item 8.k. Page 6 Exhibit "A" Recording requested by: CITY OF ARROYO GRANDE When recorded, return to: Director of Public Works 300 E. Branch Street Arroyo Grande, CA 93420 APN: 007-78 1-024 I SPACE ABOVE LINE FOR RECORDER'S USE ONLY IRREVOCABLE AND PERPETUAL OFFER TO DEDICATE WATER RIGHTS AND WELL EASEMENT AND AGREEMENT FOR THE PROVISION OF WATER THIS OFFER TO DEDICATE WATER RIGI-ITS AND WELL EASEMENT AND AGREEMENT FOR THE PROVISION OF WATER ("Offer and Agreement"), made this 1 I day of %y , 2012 by and between TAOS HOLDING CORPORATION, a California coiporation, hereinafter referred to as "Offeror" and the CITY OF ARROYO GRANDE, a California municipal corporation, hereinafter referred to as "City". WHEREAS, the Condition #9 of the Conditions of Approval for Tract 1998 (aka Tract 01-001) ("Condition 9") requires the offer of dedication of an easement for the water well located on Lot 1, including infrastructure, appurtenances, water rights and related easements; and WHEREAS, the parties recognize that Condition 9 authorizes Offeror to reserve the right to use water from the well offered for dedication to City for certain on-site construction and environmental mitigation purposes; and WHEREAS, the parties have determined that it is more cost effective and efficient for Offeror to use water provided by the City at no charge through its water conveyance infrastructure rather than use well water as provided in Condition 9, that such use would not violate City codes or regulations and therefore, the parties wish to effectuate such an understanding by this Offer and Agreement; and WHEREAS, said Offeror desires to offer to dedicate, irrevocably, to the City, a water well easement, water rights and related easements, which offer may be accepted at any time by the City based on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein, and for good and other valuable consideration, the receipt and sufficiency of which is hereby aclaowledged, the parties agree as follows: 1. That Offeror is the owner of the real property described on Exhibit "A" attached hereto and incorporated herein by this reference. Date: 5/1 OR0 12 flu Agenda Item 8.k. Page 7 2. That said Offeror does hereby irrevocably and in perpetuity offer to City a dedication of a) an exclusive easement for the existing well, including any and all right, title and interest in the currently existing well iufrastructure and appurtenances and the water rights associated with the existing well, located within Easement Area No. 1 as more particularly described in Exhibit "B" attached hereto and incorporated herein by this reference; b) an exclusive easement over the area described as Easeinent Area No. 1 as described in Exhibit "B" hereto for the purpose of operating, maintaining, repairing and replacing the well; and c) an exclusive easement over the area described as Easement Area No. 2 as described in Exhibit "B" hereto for the purposes of placing additional infrastiucture to extract, treat, store and transport water. 3. That said Offeror reserves for itself and any successor in interest to Tract 1998 (including but not limited to Castlerock Development, a California corporation), the right to the reasonable and beneficial use of City water provided through City's water infrastructure for the purpose of construction of the subdivision improvements and residences for Tract 1998 (including without limitation environmental mitigation purposes). If for any reason, City is unable to provide City water through City's water infrastructure as contemplated above by this Paragraph 3, then water fiom the subject well at no charge by City shal.1 be used instead. Offeror's right to City water for such use shall terminate upon issuance of a notice of completion for the last residence in Tract 1998, or five years after the final tract map of Tract 1998 is approved by the City, whichever is earlier. Use of water through City's water irhastructure as defined above by this Paragraph 3 shall not be subject to any City water conservation regulation that is inconsistent with the purpose and intent of this section. Further, use of City water shall be at no cost to the Offeror in any form, including usage rates, meter costs, treatment costs, capital improvement costs or administrative costs. 4. That said Offeror reserves for itself and its successors in interest to the residential lots in Tract 1998 (including but not limited to Castlerock Development, a California corporation) and the homeowners association formed in connection wjth Tract 1998 (the "HOA"), the right to the reasonable and beneficial use of City water, at no cost, provided through City's water infrastructure for the purpose of establishment and maintenance of common area landscaping, including landscaping that is required by the Mitigation, Monitoring and Reporting Program for Tract 1998 ("MMRP"). If for any reason, City is unable to provide City water through City's water infrastructure as contemplated by this Paragraph 4, then water fiom the subject well at no charge by City shall be used instead. Offeror's right to use water for establishment and maintenance of common area landscaping purposes shall terminate upon successful completion of the landscaping mitigation and restoration requirements of the MMRP. Use of water through City's water infrastructure as defined above by this Paragraph 4 shall not be subject to any City water conservation regulation that is inconsistent with the purpose and intent of this section. Further, use of City water shall be at no cost to the Offeror in any form, including usage rates, meter costs, treatment costs, capital improvement costs or administrative costs. Dote: 5/10/2012 &u Agenda Item 8.k. Page 8 5. That said Offeror, its successors in interest to the residential lots in Tract 1998 (including but not limited to Castlerock Development, a California colporation), shall defend and hold City harmless from and against, any and all losses, damages, suits, and claims arising from or in any way whatsoever related to this Agreement or Offeror's, or Offeror's contractor's, agent's or employee's use of City's water as provided herein. 6. The size, location and configuration of the easements described above in Paragraph 2 and the placement of equipment within said easements shall not unreasonably interfere or detract fiom the develop~nent of the residential lot on which the well and equipment will be located. 7. The existing on-site storage tanks, in their cun-ent condition, used in connection with the existing well pump shall be removed entirely by the Offeror (or its successors in interest in Tract 1998) within ninety (90) days of City's acceptance of this offer of dedication set fort11 herein. Existing appurtenances used in conuection with the existing on-site storage tanks, that are within the easements described in Paragraph 2, are to be abandoned and shall be removed by the Offeror. 8. That said Offeror agrees that said offer of dedication shall be irrevocable and that the City may, at any time in the future, accept said offer of dedication. 9. That said Offeror agrees that this irrevocable and perpetual Offer and Agreement is and shall be binding on its heirs, legatees, successors and assigns. IN WITNESS WHEREOF, this Irrevocable and Perpetual Offer to Dedicate Water Rights and Well Easement and Agreement for the Provision of Water is hereby executed by the said Offeror on the day and year first above written. TAOS HOLDING CORPORATION, a California corporation By: &en Shetler, President Agenda Item 8.k. Page 9 EXHIBIT "A" LEGAL DESCRIPTION OF OFFEROR'S PROPERTY THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: Parcel 7 of Parcel Map No. 77-1 03, in the City of Arroyo Grande, County of San Luis Obispo, State of California according to map recorded November 30, 1979 i11 Book 28, Page 85 of Parcel Maps, in the office of the County Recorder of said County. Excepting therefrom 50% of all oil, gas, minerals and hydrocarbon substances in and under said land, provided, however, that the grantors therein, their heirs or assigns or successors in interest, shall not drill for or develop any such oil, gas, minerals and hydrocarbon substances without the written consent of the grantees therein, their heirs or assigns, or successors, in interest reserved in the deed froin Anton Doko, et ux., recorded Apiil 15,1958 in Book 936, Page 21 1 of Official Records. Also excepting therefrom 50% of all oil, gas, minerals and hydrocarbon substances in and under said land, provided, however, that the grantors therein, their heirs or assigns, or successors in interest, shall not drill for or develop any of such oil, gas, minerals and hydrocarbon substances without the written consent of the grantees therein, their heirs or assigns, or successors, in interest reserved in the deed from Frank E. Bosch, et ux., to Anton Doko, et ux., dated April 2, 1958 and recorded April 15,1958 in Book 936, Page 208 of Official Records. Agenda Item 8.k. Page 10 EXHIBIT "B" EASEMENT AREA DESCRIPTION Sheet 1 of 3 Those portions of Parcel 7 of Parcel Map No. 77-103, in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to the map recorded November 30, 1979 in Book 28, Page 85 of Parcel Maps, in the ofice of the County Recorder of said County and State, described as follows: Easement Area No. 1 Beginning at a centerline well monument at the intersection of La Canada and Rosemary Court, as shown on said map; Thence, northerly along the centerline of La Canada, being a curve concave to the northwest having a radius of 600.00 feet, 293.22 feet through an included angle of 28°00'00", with a chord having a bearing of North 21 030'00" East and a distance of 290.3 1 feet to a centerline monument of La Canada which a radial bears South 82°30'00" East; Thei~ce, leaving said centerline along the prolongation of said radial line, South 82°30'00" East 32.00 feet to the northwesterly comer of said Parcel 7, said coiner being Point of Beginning #I (POB 1); Thence, along said radial line, South 82"30'00" East 25.00 feet to a point along the northwesterly line of Parcel 7; Thence, leaving said northwesterly line South 07°30'00" West a distance of 16.00 feet; Thence, North 82"3OY00" West a distance of 25.20 feet to a point on the easterly right-of-way line of La Canada; Thence, northerly along said right-of-way line, being a curve concave to the northwest with a radius of 632.00 feet, 16.002 feet through an included angle of 01 "27'02", with a chord having a bearing of North 08°13'31" East and a distance of 16.00 feet to Point of Beginning #1 (POBl). Easement Area No. 2 Beginning at a centerline well monument at the intersection of La Canada and Rosemary Court, as shown on said map; Thence, northerly along the centerline of La Canada, being a curve concave to the northwest having a radius of 600.00 feet, 293.22 feet through an included angle of 28°00'00", with a chord having a bearing ofNorth 21°30'00" East and a distance of 290.3 1 feet to a centerline monument of La Canada which a radial bears South 82°30'00" East; Agenda Item 8.k. Page 11 CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC STATE OF CALIFORNIA COUNTY OF SAN LUIS OBISPO On ,,, \ \ ,2012, before me, \r34 (here insert name and title of the officer), personally appeared >affh 5ht& 1 gr Y who proved to me on the basis of satisfactory evidence to be the pelson(+ wliose name@ is/= subscribed to the within instrument and acknowledged to me that he/*+ executed the same in hidkertttrelr authorized capacity(k), and that by hidkgFkkeir signature(+ on tlie instrument tlie person@, or the entity upon behalf of wliich the person&) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Notary Public Agenda Item 8.k. Page 12 Sheet 2 of 3 Thence, leaving said centerline along the prolongation of said radial line, North 82'30'00" West 32.00 feet to the northwesterly comer of said Parcel 7; Thence, southerly along the easterly right-of-way line of La Canada, being a curve cqncave to the northwest having a radius of 632.00 feet, 229.99 feet through an included angle of 20'51 '03': with a chord having a bearing of South 17'55'31" West and a distance of 228.73 feet to a point on said easterly right-of-way line which a radial bears North 61'38'57" West, said point being the Point of Beginning #2 (POB2); Thence, South 60'17'22" East a distance of 40.00 feet; Thence, South 29'42'39" West a distance of 30.00 feet; Thence, North 60'1 7'22" West a distance of 40.00 feet to a point on the easterly right-of-way line of La Canada; Thence, northerly along said right-of-way, being a curve concave to the northwest with a radius of 632.00 feet, 30.003 feet through an included angle of 02"43'12", with a chord having a bearing of North 29'42'39'' East and a distance of 30.00' to the Point of Beginning #2 (POB2). The attached Exhibit "B" Sheet 3 of 3 should be used to assist in retracing the lines of the above descriptions. ~rofessional &d Surveyor Lic. No. 6407 Exp. 12-31-10 Agenda Item 8.k. Page 13 EASEMENT AREA 1 SCALE: N.T.S. SEE EASEMENT AREA 1 DETAIL EASTERLY LA CANADA RIGHT-OF-WAY PTN. PARCEL 7 PER 28-PM-85 SEE EASEMENT AREA 2 DETAIL R-1 RECORD PER 28-PM-85 \ R-2 RECORD PER 18-MB-19 R-3 RECORD PER 17-MB-78 INDICATES FOUND S'TD. / / EASEMENT AREA 2 SCALE: N.T.S. Agenda Item 8.k. Page 14 Attachment 1 CONSULTANT SERVICES AGREEMENT AMENDMENT NO. 1 This First Amendment ("First Amendment',) to Consultant Services Agreement ("CSA") by and between the ClTY OF ARROYO GRANDE and GARING, TAYLOR & ASSOCIATES is made and entered into this day of June 2012. WHEREAS, the parties entered into a CSA dated September 20, 2010 for the design and construction services for the Well No. 11 Design Services, Project PW 2010-07; and WHEREAS, the parties desire to further modify the CSA as set forth herein. NOW THEREFORE, for valuable consideration the receipt and sufficiency of which is acknowledged, the parties agree as follows: 1. Section 1 ("TERM") of the Agreement, shall be modified in its entirety to read as follows: This Agreement shall be extended and remain and continue in effect until December 31, 2013, unless sooner terminated pursuant to the provisions of this Agreement. 2. Except as modified herein, all other terms and conditions set forth in the CSA, as amended, shall remain unchanged. IN WITNESS WHEREOF, ClTY and CONSULTANT have executed this Second Amendment the day and year first above written. GARING, TAYLOR & ASSOCIATES By: ClTY OF ARROYO GRANDE By: Tony Ferrara Mayor Agenda Item 8.k. Page 15 THIS PAGE INTENTIO NALLY LEFT BLANK Agenda Item 8.k. Page 16