HomeMy WebLinkAboutItem No.32CITY OF LAKE ELSINORE
REPORT TO THE CITY COUNCIL
TO: Mayor and City Council
FROM: Ron Molendyk, City Manager
DATE: May 11, 1993
SUBJECT: STORM DRAIN REIMBURSEMENT AGREEMENT WITH SOUTHLAKE
ESTATES JOINT VENTURE
BACKGROUND
In 1989, Wesco and Osborne Development Corporation, in Joint
Venture, began development of Tracts 24138, 24139, and 24215.
Located along the southwest side of the lake near the intersection
of Grand Avenue and Ontario Way, these tracts are within the
Corydon Drainage District of the City's Master Drainage Plan.
In February, 1990, The Joint Venture constructed street
improvements and a major portion of the master plan storm drainage
improvements of Line "B ".
ANALYSIS
The improvements have been completed and the construction cost for
the master planed storm drain facilities was $900,518. The
developer bore the cost of these storm drain improvements. City
Ordinance requires the developer to pay drainage fees for Tracts
24138, 24139, and 24215, whose aggregate amount is $185.914. Under
the Ordinance, the developer is entitled to reimbursement for
master planned storm drain costs over and above his drainage fee.
Therefore, the developer is eligible for a reimbursement of
$714,604. Also the developer will have all drainage fees waived.
The developer needs to be refunded $20,344.74 for drainage fees
previously paid. He paid these fees because he did not have a
waiver for fees granted by City Council.
FISCAL IMPACT
Reimbursement will be paid from drainage fees collected in Corydon
Drainage District. The current balance of funds for this District is
approximately $1.1 million.
RECOMMENDATION
Refund Osborne Development Joint Venture $20,344.74 from the
Corydon Drainage District Fund.
Waive all drainage fees for Tract 24138, 24139, and 24215.
Approve the Reimbursement Agreement with Osborne Development Joint
Venture for $714,604.
Authorize the Mayor to sign the agreement.
PREPARED BY:
APPROVED BY
APPROVED FO
LISTING BY:
AFn . ecca,,� Director of Public Services
R l L, C1
Ron Molend City Manager
AGENDA ITEM NO. 3�
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STORM DRAIN
NO.
TRACTS 241381 24139 AND 24215
THIS AGREEMENT, made and entered into this day of
, 1993, by and between the City of Lake Elsinore, a
California Municipal Corporation, hereinafter referred to as
"City ", and Osborne Development Corporation, a California
Corporation, and its successors in interest, hereinafter referred
to as "Developer ".
WHEREAS, Developer, in conjunction with the development of
Tract(s) 24138, 24139 & 24215, will be performing certain master
planned storm drain work within the City;
WHEREAS, City does agree and has agreed with Developer that it
may apply a portion of drainage fees for Tract(s) 24138, 24139 &
24215, toward the construction cost of the Master Plan storm drain
improvements hereinafter described;
WHEREAS, City does agree and has agreed with Developer that
Developer has constructed certain Master Plan storm drain
improvements which will be dedicated to the City by Developer and
AGENDA ITEM NO 3
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PAGE 2 Op�
more particularly shown on Sheet(s) 90 -323 to 333 and 345 to 348
and 91 -75 and 76 of the Storm Drain plans for Tract(s) 24138, 24139
and 24215 on file in the office of the City Engineer of the City;
WHEREAS, the storm drain improvements constructed by the
Developer will benefit Tract(s) 24138, 24139 and 24215, as well as
real property not owned by Developer, which real property is within
the Cc rydon Drainage District; and
WHEREAS, the City has agreed to reimburse the Developer for a
portion of the cost of the Master Plan storm drain facilities
constructed by Developer;
NOW, THEREFORE, in consideration of mutual covenants,
conditions, and promises herein contained, IT IS HEREBY AGREED by
and between City and Developer as follows:
1. Developer has installed the hereinbefore described storm
drain facilities, including all appurtenances thereof, all at
Developer's sole expense without cost, charge, claim, or obligation
to City, except as hereinafter set forth.
2. Any and all improvements so installed shall be completed
to the reasonable satisfaction of the City and County of Riverside
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and shall become the sole property of the City when finally
accepted and Developer shall have no interest therein whatsoever.
3. City and Developer agree that the total cost to be
reimbursed to the Developer shall consist of all construction costs
of said Master Plan storm drain facilities over and above the
applied drainage fee for Tract(s) 24138, 24139 and 24215, which
fees are in the aggregate amount of $185,914.00. The construction
cost for the master plan storm drain facilities was $900,518.00.
4. The construction costs of the Master Plan storm drain
facilities exceed the drainage fees $714,604.00 for Tract(s) 24138,
24139 and 24215, and the drainage district fund is insufficient to
fully reimburse the eligible developers; the City shall reimburse
the developer twelve percent (12 %) of the drainage fees collected
in connection with development of property within the Corydon
Drainage District. No developer shall receive reimbursement until
all developers who have previously executed reimbursement
agreements in the Corydon Drainage District are fully reimbursed or
until such agreements have expired. Developer shall not be
entitled to any interest on the monies to be reimbursable to it.
5. This Agreement shall continue in full force and effect
until either the total sums due Developer have been reimbursed or
the expiration of ten (10) years from the date hereof, whichever
event shall first occur.
AGENDA ITEM NO.
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6. it is specifically understood and agreed by Developer and
City that the City will reimburse Developer, in accordance with
this Agreement.
7. Developer agrees at all times during the term of this
Agreement to keep the City informed as to the exact mailing address
of Developer. it is understood and agreed that Developer shall
have the right to assign its interest in this Agreement to others
and that City assents thereto, proviaeci saia agreemec— �� �.•
writing and an executed copy thereof is delivered to City and City
is at all times kept fully informed of the name and address of the
assignee to whom the reimbursement payments are to be made and
provided further that City has the absolute right to offset against
any money due Developer under this Agreement, notwithstanding any
assignment, if at the time drainage assessment funds are received
by City, the Developer or its successors in interest owe City any
sums of money for any reasons. Only the net money due Developer,
after offset by City, will be paid over pursuant to the assignment.
Developer may also name a depository who shall be authorized to
receive all sums payable to Developer, its nominee or assigns
hereunder, and all sums paid to said depository, nominee, or
assigns hereunder shall be conclusively presumed by both Developer
and City to have been paid in performance of any obligation of City
under this Agreement.
AGENDA ITEM NO. 3//��
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8. No payments hereunder shall be made until the original of
this Agreement is returned to City. The value of the Agreement and
successive payments will be entered thereon and the Agreement
returned to Developer. After final payment is made, the Agreement
shall be retained by the Clerk of the City.
9. In the event either party hereto shall institute suit to
enforce or construe the provisions hereof, the prevailing party in
any such suit shall be entitled to recover, in addition to its
costs, its reasonable attorney's fees.
IN WITNESS WHEREOF, the undersigned Developer and undersigned
City have caused this Agreement to be executed by their duly
authorized officers this
}
day of
CITY OF LAKE ELSINORE
A Municipal Corporation
By:
Mayor
STATE OF CALIFORNIA }ss.
COUNTY OF Orange }
On April 22, 1993 before me, Louise Anderson
personally appeared Robert E. Osborne
personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within
instrument and acknowledged to me that he /sheAhey executed the same in his/her/their authored capacity(ies),
and that by his/herAheir signature(s) on the instrument the person(s) or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS m a a official seal,
N
Signatur
O"Ic' 1WL
Louise Anderson
TAB �
W ceaia 1GpwswIld.
(this area for official notarial 6")
AGENDA ITEM rN,O.
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