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CITY COUNCIL AGENDA ITEM NO. 6

Meeting Date: November 14, 2006

Subject/Title: Adopt a Resolution approving and authorizing the City Manager to execute First Amendment to the Agreement for Purchase and Sale of Interests in Real Property with the Strickler Family Partnership.

Prepared by: Brian Kelleher, Accountant II

Submitted by: Pamela Ehler, Director of Finance & Information Systems

RECOMMENDATION
Adopt a Resolution approving and authorizing the City Manager to execute First Amendment to the Agreement for Purchase and Sale of Interests in Real Property with the Strickler Family Partnership.

PREVIOUS ACTION
On May 26, 1998 the City approved an agreement with the Strickler Family Partnership for the Zone II Reservoir Project, accepting real property located on Balfour Road, (APN 007-100-003-8, 007-100-004-3 & 007-100-023-6), as needed for the reservoir, pipeline and access.

BACKGROUND
The City and the Strickler Family Partnership entered into an agreement for purchase and sale of interests in real property, dated May 26, 1998, for the City’s purchase of certain property interests, including a fee parcel and various easements.

The Zone II Reservoir was identified in the 1997-2002 Capital Improvement Program as a mandatory project. It included the construction of a 2.5 million gallon reservoir, booster station, and pipeline to support the developments in elevations higher than 110 feet. The location for the reservoir and some of the pipelines were located on property owned by the Strickler Family Partnership.

On January 28, 1999, the City accepted the grant deed for the stated parcels and completed the Zone II reservoir in 2001. The development of subdivision 7705 was completed in fiscal year 2004/05.

Per the agreement, the City was to credit the developer of subdivision 7705 with water fee credits in the amount of $179,506.65. However, the City never provided the fee credit to the developer of subdivision 7705 and the parties desire to amend the agreement to provide for the cash payment to the Strickler Family Partnership of $179,506.65.

FISCAL IMPACT
The payment, in the amount of $179,506.65, will be funded by Water Facility Fees. The Finance Director has verified funds are available. The payment is required within thirty days of execution of the First Amendment.

Attachment:
Resolution
First Amendment to Agreement for Purchase and Sale of Interests in Real Property
Agreement for Purchase and Sale of Interests in Real Property
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING, AND AUTHORIZING THE CITY MANAGER TO SIGN A FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF INTERESTS IN REAL PROPERTY WITH THE STRICKLER FAMILY PARTNERSHIP.

WHEREAS, on June 24, 1997, City Council approved the 1997-2002 Capital Improvement program; and

WHEREAS, the Zone II Water reservoir project was identified as a mandatory project to provide water to developments in elevations above 11 feet; and

WHEREAS, a portion of the properties located on Balfour Road located in Brentwood that were owned by the Strickler Family Partnership and further identified by APNs 007-100-003-8, 007-100-004-3 & 007-100-023-6 were needed for the reservoir, pipeline and access; and

WHEREAS, on May 28, 1998, City Council adopted Resolution No. 98-80 approving an agreement for purchase and sale with the Strickler Family Partnership for the Zone II Reservoir project, accepting real property.

WHEREAS, on January 28, 1999, the City accepted the grant deed for the stated parcels and completed the Zone II reservoir in 2001. The development of subdivision 7705 was completed in fiscal year 2004/05.

WHEREAS, per the agreement, the City was to credit the developer of subdivision 7705 with water fee credits in the amount of $179,506.65. However, the City never provided the fee credit to the developer of subdivision 7705 and the parties desire to amend the agreement to provide for the cash payment to the Strickler Family Partnership of $179,506.65.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood hereby approves and authorizes:

1. The City Manager to sign the First Amendment to the Agreement for the Purchase and Sale of Interests in Real Property with the Strickler Family Partnership.
2. Payment to be made to the Strickler Family Partnership in accordance with the First Amendment to the Agreement for Purchase and Sale of Interests in Real Property.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 14th day of November 2006 by the following vote:

FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF
INTERESTS IN REAL PROPERTY

This First Amendment to Agreement for Purchase and Sale of Interests in Real Property (the “First Amendment”) is entered as of , the date of execution by the City, by and between the City of Brentwood (“City”) and the Strickler Family Partnership (“Grantor”).

Recitals

A. City and Grantor entered into that certain Agreement for Purchase and Sale of Interests in Real Property, dated May 26, 1998, for the City’s purchase of certain property interests, including a fee parcel and various easements (the “Agreement”).

B. Section 2(A) of the Agreement provides that City shall credit the Grantor’s Subdivision 7705 with water fee credits in the amount of $179,506.65 for the property interests acquired by City (the “Fee Credit”).

C. City has never provided the Fee Credit to Grantor’s Subdivision 7705 and the parties desire to amend the Agreement to provide for the cash payment to Grantor of $179,506.65.

Terms

1. Amendment of Section 2(A). Section 2(A) of the Agreement is hereby deleted in its entirety and replaced with the following:

“A. Pay Grantor the sum of $179,506.65 in immediately available funds within thirty days of execution of the First Amendment.”

2. Grantor’s Warranty. Grantor hereby warrants and represents to City that Grantor’s Subdivision 7705 has not received the Fee Credit.

3. Waiver and Release; Indemnity. Grantor hereby waives and releases City and its employees, officers, assigns and contractors (the “City Parties”) from any and all claims regarding the payment of the Fee Credit. Grantor further agrees to defend, indemnify and hold the City Parties harmless from any and all claims by any party claiming a right to payment of the Fee Credit.

[Remainder of page left intentionally blank]

4. Agreement in Full Force and Effect. Except as amended by this First Amendment, the Agreement remains in full force and effect.

Strickler Family Partnership

By:
Printed Name:
Title:
Date:

By:
Printed Name:
Title:
Date:

City of Brentwood

By:
Donna Landeros, City Manager

Date:

ATTEST:

By:
Margaret Wimberly, City Clerk


APPROVED AS TO FORM:

By:
Damien B. Brower, City Attorney
 

City Administration
City of Brentwood City Council
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Brentwood, CA 94513
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E-mail allcouncil@brentwoodca.gov