Agenda Report
Fullerton City Council
MEETING DATE: DECEMBER 20, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: stephen bise, CITY ENGINEER
PREPARED BY: stephen bise, CITY ENGINEER
SUBJECT: AB22-02 SUMMARY VACATION ABANDONING A WATER WELL EASEMENT AND A SEWER EASEMENT AND NEW WATER WELL EASEMENT AND COVENANT AGREEMENT WITH GOODMAN LOGISTICS CENTER
SUMMARY
This action would vacate an existing Water Well Easement and an existing Sewer Easement over a portion of land owned by Goodman Logistics Center Fullerton LLC (“GLC”) and enter into a new Water Well Easement and Covenant Agreement with GLC for City pumping, treating and transporting water as previously approved by City Council.
RECOMMENDATION
Adopt the following resolutions:
RESOLUTION NO. 2022-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A SUMMARY VACATION TO ABANDON A CITY OF FULLERTON WATER WELL EASEMENT OVER A PORTION OF 2001 EAST ORANGETHORPE AVENUE RESOLUTION NO. 2022-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A SUMMARY VACATION TO ABANDON A CITY OF FULLERTON SEWER EASEMENT OVER A PORTION OF 2001 EAST ORANGETHORPE AVENUE Authorize Public Works Director, or designee, to accept new Water Well Easement and Covenant Agreement subject to minor changes approved by City Attorney’s Office and City Manager.
CITY MANAGER REMARKS
The City Manager recommends acceptance of a new water well easement and approval of covenant agreement with Goodman Logistics Center.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets
FISCAL IMPACT
The City has a 1955 easement over GLC’s property which allows drilling and extracting water. GLC agreed to increase the area covered by the 1955 easement by an additional 6,047 square feet at the City’s request. which equates to a fair market value of $406,611. City Council approved the action in July 2021. The City will make five equal annual installment payments following final easement recordation, funded from the City’s Water Fund. Staff included the first installment in the Capital Improvement Program (CIP) budget for Fiscal Year 2022-23 and will program future installments into subsequent annual CIP budgets.
DISCUSSION
Kimberly-Clark Corporation executed a Corporation Grant Deed in August 1955, granting the City an easement for drilling and extracting water from a portion of land owned by Kimberly-Clark. The City adopted Resolution No. 2052 which accepted the Deed, in September 1955. Separately, the City obtained an easement for sewer purposes from Kimberly Clark Corporation in April 1963 through the water well easement and a small portion of Kimberley Clark property. The City no longer needs this easement and will vacate it as part of this action. GLC acquired the Property from Kimberly-Clark, thereby succeeding the Kimberly-Clark interest in the property as well as the related easement Deeds.
City Council approved redevelopment of the 65.4-acre former Kimberly-Clark site located at 2001 East Orangethorpe Avenue, at the northeast corner of Orangethorpe and Acacia Avenues, in November 2020. The project included a Development Agreement providing GLC and the City certain assurances and obligations including expansion of the 1955 water well easement for future water purposes. Subsequent to the November 2020 approval, the City and GLC desired to amend the previously-approved Public Benefit with respect to the identified “Water Well Easement”. The change reduced the additional easement area required by the City and proportionally reduced the City’s cost to purchase the easement. City Council approved the First Amendment to the Development Agreement in July 2021, which reduced the easement expansion area as follows:
Existing Easement Area (s.f.)
Expansion Area 1 (s.f.)
Expansion Area 2 (s.f.)
Total Expansion Area (s.f.)
Total Area (s.f.)
Costs
Original Requested Easement (DDA)
7,466
8,019
313
8,332
15,798
$590,739
Reduced Final Easement
7,466
5,735
313
6,047
13,514
$406,611
The additional easement area provides space for future water treatment needs.
City staff approved a new parcel map for this development which did not include this proposed easement due to ongoing discussions about the space required by the City and most effective easement instrument. After review, staff now recommends adopting separate resolutions to vacate the two existing easements – the 1955 water well easement and 1963 sewer easement (Attachment 1 and 2) and enter into the new Water Well Easement and Covenant Agreement (Attachment 3). The new Water Well Easement and Covenant Agreement grants the City a new Water Well Easement Area for any and all water purposes including, but not limited to, the modification, expansion, repair, installation, change, improvement, removal, use, operation and replacement of water facilities. Adopting the Resolutions and Agreement would formalize the approval granted by City Council in July 2021.
Attachments:
Attachment 1 – Draft Resolution - Water Well Easement
Attachment 2 – Draft Resolution - Sewer Easement
Attachment 3 – Water Well Easement and Covenant Agreement cc: City Manager Eric J. Levitt
AB22-02 Goodman Logistics Center
December 20, 2022 - Page 2