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none, Slope landscaping, Staff ReportsTO: eiev Rceeig9 'we& INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 Agenda Item No.: 10-B Mtg. Date: 04-27-09 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ANTON DAHLERBRUCH, CITY MANAGER f SUBJECT: CONSIDERATION OF A REQUEST BY THE OWNERS OF 18 PORTUGUESE BEND ROAD TO WAIVE THE ESCROW REQUIREMENT PER THE THIRD AMENDMENT TO THE SUBDIVISION AGREEMENT AND, AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO EXECUTE AN AGREEMENT WITH THE OWNERS OF 18 PORTUGUESE BEND ROAD. DATE: APRIL 27, 2009 ATTACHMENT: Accounting of Project Costs Letter from Stephen and Diana Nuccion RECOMMENDATION It is recommended that the City Council consider the request of the new property owners of 18 Portuguese Bend Road and not require an additional $150,000 be placed in escrow for completion of the project. It is also recommended that the City Council authorize the City Manager and City Attorney to develop and execute an agreement in regard to the property owner's request. BACKGROUND Over the past two years, progress has been made in support of the Subdivision Agreement for 17 and 18 Portuguese Bend Road requiring the undergrounding of the utility lines and the removal of utility poles. With the removal of overhead lines that were across Portuguese Bend Road and completion of the underground infrastructure, the remaining work involves removing the pole between the two properties and locating the overhead lines on it. -1- On April 16, 2009, a meeting was held with all the utilities, the new (prospective, at the time) homeowners of 18 Portuguese Bend Road and City representatives. It was the conclusion of the meeting that there are sufficient funds remaining in the escrow account to complete the required undergrounding. It was also projected that the remaining work would be completed by late June 2009. Attached for reference is an accounting of the project costs. The 3rd Amendment to the Subdivision Agreement, as recorded with the County on the property title, requires $150,000 to be set aside in an escrow account if/when 18 Portuguese Bend Road is/was to be sold. The requirement was basically intended to be a security deposit if the residence was sold before the house was completed, the new owner had not been informed that a Certificate of Occupancy would not be issued until the undergrounding was complete and, to complete the undergrounding. DISCUSSION The new owners of 18 Portuguese Bend Road are long-time residents of the City, aware of the undergrounding requirement for 17 and 18 Portuguese Bend Road and, being anxious to move into the house, pushing the utilities for the remaining work to be completed. In this regard, the attached letter has been received requesting the City to withhold the requirement that an additional $150,000 be added into escrow to insure the undergrounding be completed recognizing that they, not the seller (Vineyard Bank), would need to deposit the funds. In turn, they are aware that a Certificate of Occupancy will not be issued until the undergrounding is complete. At this time, the City Council is being requested to consider their request to hold -off on the requirement that an additional $150,000 be placed in escrow for completion of the undergrounding. The owners have been advised that the undergrounding will be necessary for occupancy of the home and that they will be responsible for any additional costs associated with the outstanding work. FISCAL IMPACT There is no fiscal impact to the City associated with the action being considered by the City Council. NOTIFICATION The new property owners have been advised that this matter is being considered by the City Council. CONCLUSION It is recommended that the City Council consider and approve the property owner's request, recognizing that occupancy is not permitted until the undergrounding project is complete. AD:hl -2- C1tyo//2etin,.��ee INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (310) 377.1521 FAX: (310) 377.7288 Agenda Item No.: 8-A Mtg. Date: 07-28-08 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ANTON DAHLERBRUCH, CITY MANAGER SUBJECT: CONSIDERATION OF OPTIONS FOR UNDERGROUNDING THE UTILITIES BEHIND 17 AND 18 PORTUGUESE BEND ROAD DATE: JULY 28, 2008 ATTACHMENT: Letter from Ken Allen & Associates Letter from Saridakis Construction RECOMMENDATION It is recommended that the City Council consider the request of the owners of 18 Portuguese Bend Road (Saridakis) to relieve them of the requirement to underground the telecommunications lines behind 17 and 18 Portuguese Bend Road and direct staff accordingly. It is further recommended that the City Council consider the offer that funds remaining in escrow be dedicated to the City for future undergrounding projects at other locations. BACKGROUND At its meeting of May 12, 2008, the City Council approved a third amendment to the subdivision improvement agreement with the subdivider and current property owners of 17 and 18 Portuguese Bend Road. This third amendment, allows a final inspection of 18 Portuguese Bend Road with the conditions that: 1. An additional $150,000 is placed in escrow if the residence is sold prior to completion of the remaining undergrounding. 2. The required undergrounding is completed by January 12, 2009. 3. No gas meter is installed and no natural gas is provided to the residence until completion of the required undergrounding. 4. No occupancy of the residence is granted until completion of the required undergrounding. -l- 0 Printed on Recycled Paper On July 7, 2008, the City received signed originals of the third amendment to the agreement for execution. The portion of undergrounding the utility lines that cross Portuguese Bend Road is also complete. The City received a letter dated June 30, 2008 (attached) from the property owner conveying letters from NextG, Verizon and Cox that these utilities would not underground their lines behind 17 and 18 Portuguese Bend Road. The letter also states that Southern California Edison (Edison) will uphold its verbal commitment to underground its electrical lines and relocate the existing pole at the northwest corner of 18 Portuguese Bend Road. All the attachments, per Mr. Allen, were retracted for preparation of the second, July 24, 2008 letter (attached). The updated letter states that Edison and Verizon will underground their lines. Mr. Allen has verbally explained that Verizon has no fiber optics on the poles so, as long as Edison undergrounds, they will too. NextG and Cox have verbally stated that they could underground their fiber optics if the funding was provided, although they maintain that it is not practical and will be costly to do so. A Cox representative projected that the cost would be in the six -figures. According to Mr. Allen, if the funding were available for the NextG and Cox undergrounding, no easements would be needed from property owners adjacent to 17 and 18 Portuguese Bend Road. DISCUSSION The City Council is being asked to consider alternatives and next steps with regard to the remaining undergrounding requirement behind 17 and 18 Portuguese Bend Road. The property owners of 18 Portuguese Bend Road is specifically asking to be relieved of their remaining undergrounding obligations with regard to NextG and Cox in order to connect natural gas and allow occupancy in the home. They are suggesting that the City retain the remaining funds in escrow for future City (undergrounding) projects. There are three utility poles behind 17 and 18 Portuguese Bend Road. Residing on the pole are lines belonging to Edison, NextG (for Sprint), Verizon and Cox. The property owners are required to remove the middle pole (and underground the utilities between the two remaining poles) and relocate the northern pole by five (5) feet by January 12, 2009. An alternate option for removing all three poles was eliminated several months ago when a neighbor voiced objections and another withheld a necessary easement. If NextG' and Cox do not underground their utility lines behind 17 and 18 Portuguese Bend Road, the existing poles behind the properties will all remain. Edison's undergrounding will result in topping the middle pole so, while not removed as required by the subdivision agreement, it would be several feet lower. NextG and Cox have explained that their fiber optic lines lose signal strength with splicing for rerouting the lines and, their lines are bundled (not separate on the pole); this explains the high cost associated with undergrounding their respective lines. NextG is a wireless telecommunications company whose network of cell sites and fiber optics are used in Rolling Hills, by Sprint. Their network consists of 16 nodes or antenna "upstream" from 17 and 18 Portuguese Bend Road that, they report, would be affected by relocating their fiber optic line behind these two properties. At this time, it is not known when the fiber optic line behind the subject properties was installed. -2- ,. • The following is recommended to be considered as the City Council addresses the request from the owner of 18 Portuguese Bend Road: 1. The City has been clear and consistent in the subdivision requirements for 17 and 18 Portuguese Bend Road in regard to undergrounding the utility lines across Portuguese Bend Road and behind 17 and 18 Portuguese Bend Road. The undergrounding across Portuguese Bend Road is complete. An enforceable subdivision agreement exists that requires the utility lines behind the properties be completed at any cost, whether sufficient funds have been secured in the escrow account or not. 2. For undergrounding the electrical lines, Edison will install its lines and a transformer along side of Portuguese Bend Road in the front of the properties. Edison will no longer use the rear easement for the span across 17 and 18 Portuguese Bend Road. From the re-routing, if NextG and Cox do not underground, the middle of the three poles behind the properties will be topped. 3. NextG and Cox oppose relocating their utility lines. However, NextG and Cox have stated that if the cost is borne by another party, they would underground. The total cost of undergrounding these two telecommunications utilities is not known. Figures have been requested for the City Council meeting. 4. The funds available in escrow for undergrounding Edison, NextG and Cox behind the two properties are $311,149.82. Verizon has been paid in advance for their work. Upon completion of Edison's undergrounding, $120,823.94 will remain in the escrow account to cover the undergrounding of NextG and Cox lines. 5. Because Edison's and Verizori s undergrounding would not remove the one agreement -required pole, if the City Council chooses not to require NextG and Cox to underground, it should consider whether to relieve the property owners of the remaining undergrounding requirement. This would, according to the owners' proposal, allow a larger fund to be made available to the City for another City undergrounding project that would provide a visual benefit for the public. The City Council has a variety of options as follows: A. Maintain the current requirement that all the lines behind 17 and 18 Portuguese Bend Road be undergrounded. B. Direct Edison and Verizon to underground, but relieve the property owners of the requirement that NextG and Cox underground. This would result in lowering but not removing one utility pole and the relocation of the northern pole. This would leave $120,823.94 in escrow. C. Relieve the property owners from the requirement to underground all the utilities behind 17 and 18 Portuguese Bend Road and to relocate the northern pole. Based on the City Council's direction, the City can negotiate the details of a 4°' amendment to the subdivision improvement agreement that addresses the remaining funds in escrow. NOTIFICATION The current and former property owners of 17 and 18 Portuguese Bend Road, the Rolling 1-sills Community Association and the neighboring residences to 18 Portuguese Bend Road have been advised of this matter before the City Council. Edison, Verizon, Cox and NextG representatives have been invited to attend the City Council meeting to address their positions. AD/ 17_18 Portuguese Bend Road.doc C1tyo/,eoelin9 wee INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (310) 377-1521 FAX: (310) 377.7288 Agenda Item No.: 7-A Mtg. Date: 5/12/08 DATE: MAY 12 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ANTON DAHLERBRUCH, CITY MANAGER SUBJECT: REQUEST FOR MODIFICATION OF AN IMPROVEMENT AGREEMENT FOR UNDERGROUNDING OF UTILITY LINES PURSUANT TO CONDITIONS OF APPROVAL OF PARCEL MAP NO. 23991 AND A REQUEST TO OBTAIN FINAL INSPECTION AT 18 PORTUGUESE BEND ROAD. REQUEST Mr. and Mrs. Saridakis, property owners of 18 Portuguese Bend Road, request modification to the second amended agreement, effective July 10, 2006, to relieve them from the requirement that no final inspection and/or occupancy permit be given by the Los Angeles County Building and Safety Department for the new residence until utility lines are undergrounded subject to the layout in the second amended agreement. The agreement and letter of request are attached. RECOMMENDATION: It is recommended that the City Council: 1. Approve the request for a final inspection of 18 Portuguese Bend Road, 2. Withhold approval of turning on natural gas to the property and withhold occupancy to the residence, 3. Extend the July 10, 2008 due date for completion of the undergrounding for six months to January 12, 2009, 4. Require an additional $150,000 be placed in the existing escrow account by the property owner of 18 Portuguese Bend Road for undergrounding if the property is sold prior to achieving resolution of the undergrounding requirement to the satisfaction of the City, 5. Authorize the City Manager and City Attorney to prepare and execute a third amended agreement incorporating #1, #2, #3 and #4 above and record the agreement, 17/18 Port. Bnd. Rd. 1 Undergrounding 0 L�J Printed on Recycled Paper 6. Direct the City Manager to work with the property owner of 18 Portuguese Bend Road to develop for the City Council's consideration a satisfactory resolution for the remaining undergrounding requirement. BACKGROUND 1. In 1998 Parcel Map 23991, a two -lot subdivision at 17 Portuguese Bend Road, was finaled and recorded. As part of the approval the then applicant (Dr. Marshall) was required to underground the utility lines across Portuguese Bend Road, remove one pole and move two poles into the easements of the two new lots. Due to the configuration of the lots and the existing canyon to the rear of the lots, the Southern California Edison Co. (SCE) provided a letter to the City stating that the utility lines spanning the canyon could not be undergrounded, and therefore, City Council agreed to allow the utility lines to the rear of the lots to remain aboveground from the relocated poles. 2. In 1998, prior to finaling the map, the applicant entered into an Improvement Agreement with the City for undergrounding and deposited a bond in the amount of $120,000 to underground the utilities within two years. 3. In early 2003, Dr. Marshall sold one of the lots and in May of 2003 the new owner submitted plans for a new residence. A condition of the approval of the new residence included that the utilities be undergrounded in conjunction with grading for the new home within two years of the approval. An amended agreement was signed and bond in the amount of $200,000 was deposited with the City. The amended agreement required that no building permit be issued until the undergrounding is completed. The amended agreement was recorded in the County Recorders Office. 4. In April 2005 grading permit was issued for 18 Portuguese Bend Road for the new residence. As a common practice, basement walls and foundations are part of the grading permit. Grading commenced that month. The owners continued working with Edison Co. and neighbors to procure easements for the utility lines. 5. In June 2005 City staff was informed by Dr. Marshall's realtor that Dr. Marshall has a buyer for the developed (17 Portuguese Bend Road) lot and that they are working on escrow instructions. Staff instructed the realtor that any escrow instructions / agreements must include provisions for undergrounding, bonding for the cost of the undergrounding and naming the City as beneficiary. 6. On June 16, 2005 City issued a Formal Notice to all parties, (seller, buyer, realtors for the seller and buyer, property owner of 18 Portuguese Bend Road, bonding company and bonding insurance company) alerting them of the requirement to underground the utilities and that no building permit on either lot will be issued until the project (undergrounding) is completed and that the 17/18 Port. Bnd. Rd. Undergrounding 2 �J City shall review all escrow instructions and agreements. In addition, City required that $400,000 be left in the escrow for the undergrounding project. 7. The escrow company retained $400,000 naming the City as beneficiary of these funds. These funds may only be disbursed with City approval for activities leading towards undergrounding of the utilities. 8. The owners and Edison Co. were not successful in procuring easements from neighbors and a new plan had to be devised. In July 2006, the applicants requested relief from the requirement to move two utility poles to the side easements, one on each of the lots, and to allow the property owners to obtain a building permit to continue with the construction of the residence. The City Council approved the request. 9. In September 2006, a second amendment to the Improvement Agreement was signed by all parties, incorporating the escrow funds in the amount of $400,000, allowing the property owners to obtain a building permit and to continue the construction with a condition that the undergrounding be completed within two years (July 2008), and that no final inspection and/or certificate of occupancy be issued for the construction of the new residence until the utility lines are undergrounded and amending the previously approved configuration of certain utility lines and location of two utility poles at 17 and 18 Portuguese Bend Road. 10. Mr. Saridakis employed Mr. Ken Allen, consultant to facilitate the undergrounding project. Mr. Allen has been working with Edison and the other utility companies to prepare amended plans and with neighbors to procure easements. Over the past year staff has also assisted in their efforts by meeting with all of the affected parties and contacting the neighbors to ask for the necessary easements and cooperation. 11. Currently the property owners are seeking further amendment to the Improvement Agreement to allow them to obtain final inspection of the residence, so that they may refinance out of the construction loan. In a letter to staff, attached, Mr. Saridakis suggests that the City not release the gas to the property, therefore assuring that no one could move into the residence. 12. An alternative layout of the undergrounding, presented and approved by the City Council in March 2008, to remove two poles behind 17 and 18 Portuguese Bend Road has been deemed unworkable due to the inability to obtain a necessary easement from an affected property owner. 13. While Mr. Allen assesses the remaining options for achieving the undergrounding behind 17 and 18 Portuguese Bend Road per the second amended agreement (Phase II), the undergrounding of lines across Portuguese Bend Road has commenced (Phase I). The conduit has been installed and the utilities have been requested to pull their wires and remove the overhead lines. 17/18 Port. Bnd. Rd. Undergrounding 3 6 14. Currently there is $347,509.50 remaining in the escrow account for Phase II. DISCUSSION With the 3rd party work completed for Phase I of the undergrounding project (installation of conduit) and the utilities having responsibility for the remaining work, staff recognizes that Mr. Saridakis has made a substantial effort to meet a primary component of the undergrounding requirement. As such, it is recommended that a final inspection be granted for the residence. However, noting that the entire project is not complete, staff, with the verbal concurrence of the applicant, suggests withholding natural gas from the property until Phase II is addressed to the satisfaction of the City. Furthermore, staff recommends that additional funds in the amount of $150,000 be placed in escrow for undergrounding if the property is sold before Phase II is completed. Mr. Allen, with City staff in attendance, has met with the utilities to ascertain how Phase II of the required undergrounding can be completed. Phase II requires the removal of one pole behind 17 Portuguese Bend Road and the relocation of one pole at 18 Portuguese Bend Road by 5 feet. The utilities have been asked to provide, in writing, their response to the requirement. The response will be utilized to evaluate the options and develop an appropriate solution. Recognizing that it will likely take beyond July 10, 2008 to develop and implement an approach to resolving Phase II, it is recommended that an additional six (6) months be granted to the applicant to resolve the matter. Moreover, it is recommended that City staff engage in the discussions to facilitate or broker a solution that may be acceptable to the City. NOTIFICATION The property owners of 13, 14, 15, 16, 17 and 18 Portuguese Bend Road and 1 Lower Blackwater Canyon Road, Southern California Edison and the Rolling Hills Community Association have been advised of this item before the City Council. CONCLUSION With Phase II of the undergrounding requirement still outstanding, it is recommended that the City Council direct the City Manager to directly engage in conversations with Mr. Saridakis to develop a solution that supports the City Council's goals of undergrounding. Six (6) months is recommended for Mr. Saridakis to accomplish the undergrounding or an alternative solution be proposed to the City Council. 17/18 Port. Bnd. Rd. 4 Undergrounding