RESOLUTION NO. 24-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING TWO SETTLEMENT AGREEMENTS, ACCEPTING TWO CONSERVATION EASEMENTS, APPROVING AN ENDOWMENT AGREEMENT, AND ACCEPTING THREE EASEMENT DEEDS FOR STORM DRAIN AND ASSOCIATED IMPROVEMENTS ALL RELATED TO THE ARRIOLA GLOBAL SETTLEMENT AGREEMENT AND LANDSLIDE REPAIR PROJECT AT VIA BALLENA AND THE SHORECLIFFS GOLF COURSE AND AUTHORIZING A SUPPLEMENTAL APPROPRIATION OF $700,000 TO FUND THE SETTLEMENTS WHEREAS, in October, 2015, the City entered into the Arriola Global Settlement Agreement (herein the Arriola Agreement) regarding remediation of a slope between Via Ballena and holes 5 and 6 of the Shorecliffs Golf Course; and WHEREAS, the Arriola Agreement required the construction of a 7-foot by 7-foot box culvert, an access maintenance road, and associated improvements as per the As-Built Plans on file at the City of San Clemente, dated February 9, 2024 (herein the “Project”); and WHEREAS, per the Arriola Agreement, the City is responsible for acceptance of the new box culvert, the transitions structures, the portion of the maintenance road and improvements within the landlocked Parcel with an Assessor Parcel Number (APN) 691-021-02, and project improvements within the property located at 424 Via Alegre (APN 691-031-14); and WHEREAS, per the Arriola Agreement, the property owners of hole 5 and 6 (OC Re-Hab 1, LLC and its successors) are responsible for the low flow diversion system on the above-mentioned parcels, and all other improvements (including the maintenance road) on the golf course properties; and WHEREAS, on October 31, 2023, OC Re-Hab 1, LLC, the developer and contracting party for the landslide remediation project, substantially completed the project work; and WHEREAS, conditions of approval from the California Coastal Commission required the Project to mitigate for disturbed creek, riparian, and wetland habitat damaged during the Project; and WHEREAS, the required habitat mitigation resulted in the loss of available land for restoration of hole 6 of the Golf Course; and WHEREAS, George Zeber and OC Re-Hab 1, LLC, and the golf course (GC-8, LLC) filed a lawsuit against the City for loss of the hole 6 and other alleged damages [OC Re-Hab 1, LLC, et al. v. City of San Clemente (Orange County Superior Court Case No. 30-2021-01191580-CU-EI-CXC)] (the “Action”); and WHEREAS, an Endowment Agreement is proposed for long-term funding of the habitat areas by OC Re-Hab 1, LLC and GC-8, LLC; and WHEREAS, the California Joint Powers Insurance Authority (CJPIA) funded certain costs and scope changes associated with construction of the box culvert, access road, and other public improvements built as part of the Project and contends that the City owes reimbursement of a portion of those costs; and WHEREAS, settling the Action and the related Project cost issues is in the best interests of the City and the public.
NOW, THEREFORE, the City Council of the City of San Clemente does hereby find, determine and resolve as follows:
SECTION 1. That the above recitations are true and correct and incorporated herein.
SECTION 2. That the City Council deems the works related to the Arriola Global Settlement Agreement complete as per the As-Built Improvements Plans, dated February 9, 2024.
SECTION 3. That the City Council approves the Settlement Agreement and Mutual Release between the City and OC Re-Hab 1, LLC and GC-8, LLC relating to the Action, and authorizes and directs the City Manager to execute the same in a form substantially similar to that presented to the City Council on April 16, 2024, with such minor modifications as hereafter approved by the City Manager in consultation with the City Attorney.
SECTION 4. That the City Council approves the Separate Settlement Agreement and Mutual Release between the City and CJPIA and authorizes and directs the City Manager to execute the same in a form substantially similar to that presented to the City Council on April 16, 2024, with such minor modifications as hereafter approved by the City Manager in consultation with the City Attorney.
SECTION 5. That the City Council accepts the Conservation Easements for both On-site and Off-site habitat management areas and authorizes and directs the City Manager to execute the same in the forms substantially similar to those presented to the City Council on April 16, 2024, with such minor modifications as hereafter approved by the City Manager in consultation with the City Attorney.
SECTION 6. That the City Council approves the Endowment Agreement for long-term funding of the habitat areas and authorizes and directs the City Manager to execute the same in a form substantially similar to that presented to the City Council on April 16, 2024, with such minor modifications as hereafter approved by the City Manager in consultation with the City Attorney.
SECTION 7. That the City accepts the Easement Deed Agreements for storm drain and associated improvements on 424 Via Alegre, APN 691-021-02, and the On-Site Golf Course and authorizes and directs the City Manager to execute the same in the forms substantially similar to those presented to the City Council on April 16, 2024, with such minor modifications as hereafter approved by the City Manager in consultation with the City Attorney.
SECTION 8. That the City Council approves a supplemental appropriation in the amount of $700,000 from the General Liability Fund to Account No. 068-816-44050-000-00000 to fund the City’s monetary obligation under the Settlement Agreements.
SECTION 9. That the City Council authorizes and directs the City Manager or his designee to take all remaining actions and execute all documents as are necessary and proper to finalize and implement the Settlement Agreements and the purposes of this resolution.
SECTION 10. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this 16th day of April, 2024.
ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-49 was adopted at a regular meeting of the City Council of the City of San Clemente held on the 16th day of April, 2024, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, 2024. _________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
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Resolution No. 24-49 Page 3
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