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CITY COUNCIL AGENDA ITEM NO. 17

Meeting Date: July 13, 2004

Subject/Title: Approve a Resolution authorizing the City Manager to Execute a Disclaimer in State Route 4 Bypass Authority v. Ruckstahl LLC, et al.

Submitted by: Bailey Grewal, City Engineer

Approved by: John Stevenson, City Manager

RECOMMENDATION
Approve a Resolution authorizing the City Manager to execute a Disclaimer of Interest of City of Brentwood in State Route 4 Bypass Authority v. Ruckstahl LLC, et al.

PREVIOUS ACTION
The City is a member of the State Route 4 Bypass Authority and also East Contra Costa Regional Fee and Financing Authority (“Authorities”) that are involved with the construction of the Highway 4 Bypass. In order to construct the Highway 4 Bypass, the Authorities must purchase the necessary right of way and in some cases, the Authorities must file eminent domain proceedings in order to obtain the necessary right of way. The Authorities were required to file such an eminent domain proceeding in order to obtain possession and right of way for the area along Lone Tree Way and south across the property owned by various land owners, including Centre Point Associates, L.P., Ruckstahl LLC, Arcadia Development Company, Donahue Schriber Realty Group, L.P., and other real property interests.

BACKGROUND
The subject litigation, State Route 4 Bypass Authority v. Ruckstahl LLC, et al., involves real property needed by the Authorities along the Lone Tree Way right of way, as well as the Highway 4 Bypass route south of Lone Tree Way owned by the subject defendants. One of the defendants named in the litigation guaranty provided by the title company is the City of Brentwood. The documents in which the City is listed in the title company’s litigation guaranty includes items such as the Development Agreement between the City and Arcadia , the Subdivision Improvement Agreement between the City and Centre Point Associates and Ruckstahl, LLC, and some grant deeds and reservations between the City and Ruckstahl, LLP and Arcadia, relating to dedications and construction easements.

The Authorities are not attempting to condemn any City interests in the property that is subject to the above-entitled eminent domain proceeding. Rather, the Authorities are acquiring fee title to the parcels. The one area where the City has a direct interest in the parcels is a 54-inch diameter storm drain line that drains the Home Depot parcel and related parcels of this commercial development. The Authorities are acquiring this property subject to this storm drain easement and this storm drain line will remain in place and all agreements with respect to its acceptance, maintenance, etc., by the City will remain in place after the proceeding is finalized.

The intent of the Disclaimer is to have the City disclaim any interest in any monetary award. It is not clear why the title insurance company listed the City, but the Authorities are convinced the easiest and most economical way to deal with the title insurance issues is to file a disclaimer. The effect of the disclaimer is merely to state to the court that the City does not claim any interest in the Authorities’ acquisition or the money awarded.

FISCAL IMPACT
None.

Attachment:
Resolution
Disclaimer of Interest of City of Brentwood

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE A DISCLAIMER IN STATE ROUTE 4 BYPASS AUTHORITY v. RUCKSTAHL, LLC, et al.

WHEREAS, the City is a member of the State Route 4 Bypass Authority and also East Contra Costa Regional Fee and Financing Authority (“Authorities”) that is involved with the construction of the Highway 4 Bypass.

WHEREAS, in order to construct the Highway 4 Bypass, the Authorities must purchase the necessary right of way and in some cases, the Authorities must file eminent domain proceedings in order to obtain the necessary right of way.

WHEREAS, the Authorities were required to file such an eminent domain proceeding in order to obtain possession and right of way for the area along Lone Tree Way and south across the property owned by various land owners, including Centre Point Associates, L.P., Ruckstahl LLC, Arcadia Development Company, Donahue Schriber Realty Group, L.P., and other real property interests.

WHEREAS, one of the defendants named in the litigation guaranty provided by the title company in the subject eminent domain proceeding, State Route 4 Bypass Authority v. Ruckstahl, LLC, et al., is the City of Brentwood.

WHEREAS, the Authorities are not attempting to condemn any City interests in the property that is subject to the above-entitled eminent domain proceeding.

WHEREAS, the one area where the City has a direct interest in the property subject to the proceeding is a 54-inch diameter storm drain line that drains the Home Depot parcel and related parcels of this commercial development. The Authorities are acquiring this property subject to this storm drain easement and this storm drain line will remain in place and all agreements with respect to its acceptance, maintenance, etc., by the City will remain in place after the proceeding is finalized.

WHEREAS, the City’s intent when filing the Disclaimer is to have the City disclaim any interest in any monetary award; and

WHEREAS, the Authorities are convinced the easiest and most economical way to deal with the title insurance issues is for the City to file a disclaimer in the above-entitled eminent domain proceeding.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood that the City Manager is hereby authorized to execute a Disclaimer of Interest of City of Brentwood in State Route 4 Bypass Authority v. Ruckstahl, LLC, et al., and the Disclaimer of Interest of the City of Brentwood is attached hereto as Exhibit “A.”

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 13th day of July, 2004, by the following vote:

 

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