HomeMy WebLinkAboutItem # 12 WRCOG Settlement Agreement - SRReport to City Council
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by: Barbara Leibold, City Attorney
Date:January 10, 2017
Subject:Settlement and Release Agreement (WRCOG)
Recommendation
Approve and authorize the Mayor to execute the Settlement and Release Agreement between the
City and WRCOG.
Background
A dispute arose between the Western Riverside Council of Governments (“WRCOG”) and the
City in connection with WRCOG’s audit of the City’s collection of Transportation Uniform
Mitigation Fees (“TUMF”) related to specific developments within the City of Lake Elsinore. The
parties agreed to submit the matter to non-binding arbitration and have actively engaged in
settlement negotiations.
Discussion
The attached Settlement and Release Agreement has been approved by the WRCOG Executive
Committee and is presented to the City Council for final approval. Should the Settlement and
Release Agreement be approved, the pending arbitration will be cancelled and the dispute will be
formally resolved.
The Settlement and Release Agreement provides a mechanism for funding the construction and
completion of certain TUMF improvements in the City, including Temescal Canyon Road Bridge
Replacement/Widening; Railroad Canyon Road/I-15 Interchange (Off Ramp Improvements); SR-
74/I-15 Interchange, and (pending WRCOG Executive Committee approval to add to the
Southwest Zone TIP) Franklin Street Interchange/I-15 Interchange (Canyon Estates Drive)
through the TUMF Program and City contributions of “Eligible In-Kind Contributions” which may
include (a) federal or state grants made directly to the City; (b) contributions of City local
development impact fees; (c) City Gas Tax contributions; (d) Measure “A” local streets and roads
funds received by the City, (e) Developer contributions of right of way, (f) other public or private
financing mechanisms.
Agreement and Escrow Instructions for Purchase and Sale of Property
Page 2 of 2
Fiscal Impact
The Settlement and Release Agreement provides for the City to contribute $9,500,000 in Eligible
In-Kind Contributions for the construction of Eligible TUMF Projects over the next twelve years.
Exhibit
Exhibit A - Settlement and Release Agreement