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HomeMy WebLinkAboutED CC Subterranean Utility WorkCITY OF Agenda Item No: . q Meeting Date: May 18, 2015 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Tom Adams, ED Specialist City Manager Approval: ED Manager Approval: SUBJECT: Resolution of the San Rafael City Council acknowledging the Successor Agency intends to grant a 24 month temporary license to Pacific Gas and Electric Company for subterranean utility work on real property located at the Southeast corner of Second Street at Lincoln Avenue (APN 013-021-47) and declaring the City Council's intention to accept the transfer of this property from the San Rafael Successor Agency. RECOMMENDATION: Approve Resolution. BACKGROUND: BioMarin Pharmaceutical is in the process of building a parking garage at the corner of Second Street and Lincoln Avenue as part of its headquarters expansion project pursuant to a development and disposition agreement with the San Rafael Redevelopment Agency. In order for BioMarin to proceed with the construction of the garage, PG&E needs to upgrade the utilities underneath property (APN 013-021-47) currently owned by the San Rafael Redevelopment Agency. The location for the utility work is Second Street and the adjacent sidewalk in what is typically city owned right-of-way and this work ordinarily would be covered by the franchise agreement with the City of San Rafael which allows for utility work within the right-of-way. However, since the property is owned by the Redevelopment Agency, the franchise agreement does not apply at this location and PG&E needs approval from the Successor Agency to do this work. ANALYSIS: Since the property (APN 013-021-47) is currently used as right-of-way, it makes sense that this property be transferred to the City and incorporated in to the surrounding right-of- way. However, all property owned by the Successor Agency is subject to approval by the state as directed by the legislation related to the dissolution of redevelopment agencies and the state approval process will take some time. In order to prevent delays in the construction of the BioMarin parking garage, the attached license agreement will allow PG&E to perform the necessary utility work and allow sufficient time for any additional utility access until the property is transferred from the Successor Agency to the City of San Rafael. It should be noted that BioMarin is a major downtown employer and this project will result in over 400 new jobs at the headquarters campus. FOR CITY CLERK ONLY File No.: q--1® ,C 54 - e'c Ore- A�7S , Council Meeting: �l ►5��2�i� Disposition: /eGS®L.L71O,Li t9923 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 2 While the requested action is primarily an item for the Successor Agency (see below for a similar action in the San Rafael Successor Agency portion of the agenda), PG&E has requested that the City Council likewise affirm its intention to comply with the terms of the Successor Agency license with PG&E and affirm the City's intention to accept the property and make it right-of- way ight-ofway at a future date. PG&E has made this request of the City to provide additional assurances that the City will provide PG&E with long term access to its underground utilities at this location. FISCAL IMPACT: None. OPTIONS: 1) Adopt the Resolution. 2) Direct Staff to Modify the Resolution 3) Refuse to Adopt the Resolution. ACTION REQUIRED: Adopt Resolution. ATTACHMENTS: Resolution. RESOLUTION NO. 13923 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ACKNOWLEDGING THE SUCCESSOR AGENCY INTENDS TO GRANT A 24 -MONTH TEMPORARY LICENSE TO PACIFIC GAS AND ELECTRIC COMPANY FOR SUBTERRANEAN UTILITY WORK ON REAL PROPERTY LOCATED AT THE SOUTHEAST CORNER OF SECOND STREET AT LINCOLN AVENUE (APN 013-021-47), AND DECLARING THE CITY COUNCIL'S INTENTION TO ACCEPT THE TRANSFER OF THIS PROPERTY FROM THE SAN RAFAEL SUCCESSOR AGENCY WHEREAS, in 1998, the City of San Rafael entered into a Development Agreement, and the San Rafael Redevelopment Agency entered into an Owner Participation, Disposition and Development Agreement (OPDDA) with the Fair, Isaac Company, Inc. ("Fair, Isaac"), providing for the development of an office complex now known as the "San Rafael Corporate Center" on several parcels of real property located in the vicinity of Second Street and Lincoln Avenue in San Rafael; and WHEREAS, in connection with the execution of the OPDDA, the City of San Rafael transferred to the San Rafael Redevelopment Agency a parcel of City -owned real property located on the southeastern corner of the intersection of Second Street and Lincoln Avenue, to be transferred to Fair, Isaac pursuant to the OPDDA for development as part of the proposed San Rafael Corporate Center; and WHEREAS, the San Rafael Redevelopment Agency thereafter transferred to Fair, Isaac the largest portion of said property, now commonly known as 788 Lincoln Avenue (hereinafter the "Garage Parcel"), but retained title to a small portion of the parcel directly adjacent to the Garage Parcel and to Second Street, which now bears Assessor's Parcel No. ("APN") 013-021- 47 (hereinafter "the Redevelopment Agency Property"), which property is currently being used by the City of San Rafael as part of its Second Street right-of-way; and WHEREAS, after entering into the Development Agreement and OPDDA, Fair, Isaac subsequently sold the development properties and assigned the associated development rights and obligations under the OPDDA and the Development Agreement, all of which, through a succession of transfers, are now owned by the California Corporate Center Acquisition LLC, a legal entity on behalf of BioMarin Pharmaceutical Inc. (`BioMarin' ); and WHEREAS, in 2012, as part of the State of California dissolution of all redevelopment agencies throughout the state and pursuant to Health and Safety Code Sections 34170 through 34191.5, the San Rafael Successor Agency (the "Successor Agency") became the legal successor -in -interest to all assets and obligations of the San Rafael Redevelopment Agency, including the Redevelopment Agency Property; and WHEREAS, the Successor Agency is the successor -in -interest to the rights and obligations of the San Rafael Redevelopment Agency pursuant to the terms of the OPDDA; and WHEREAS, pursuant to the OPDDA and the Development Agreement, BioMarin is in the process of completing construction of the San Rafael Corporate Center by constructing a parking garage on the Garage Parcel; and WHEREAS, PG&E has a franchise granted by the City of San Rafael to place, maintain, and operate electrical transmission lines and facilities in City rights-of-way to provide electrical service to real properties within the City; and WHEREAS, as part of the garage construction project, Pacific Gas and Electric Company (PG&E) must perform subterranean utility upgrades within the area to provide service to the Garage Parcel; and WHEREAS, because the Redevelopment Agency Property is being used as part of the City of San Rafael's right-of-way, PG&E requires and has requested, consistent with its franchise, access over, under and upon the Redevelopment Agency Property for the placement of underground utilities in the right-of-way for the utility upgrade project for the Garage Parcel; and WHEREAS, to provide long term access to its utilities, PG&E has requested that the City provide assurances that the City intends to accept this property from the Successor Agency and that it will ultimately become City right-of-way subject to the utility franchise with PG&E; and WHEREAS, as part of the consideration provided in the OPDDA, the San Rafael Redevelopment Agency assumed an obligation to Fair, Isaac and its successors to "do such things, perform such acts, and make, execute, acknowledge and deliver such documents as may be reasonably necessary or proper and usual to complete" the development and occupation of the San Rafael Corporate Center; therefore the San Rafael Successor Agency now has an "enforceable obligation" to assist in effectuating the development rights of BioMarin, the current developer under the OPDDA and the Development Agreement; and WHEREAS, it is in the best interests of the City of San Rafael and the Successor Agency to cooperate with BioMarin and PG&E in order to complete construction of the garage on schedule and encourage the economic development of the downtown area; and WHEREAS, the transfer of any property owned by the Successor Agency must be approved by the Oversight Board to the Successor Agency of the dissolved Redevelopment Agency of the City of San Rafael (the "Oversight Board") and the State of California Department of Finance through approval of the Long Range Property Management Plan; and WHEREAS, the San Rafael Successor Agency has prepared a Long Range Property Management Plan which includes the transfer of the Redevelopment Agency Property to the City of San Rafael for right-of-way purposes; however, this property transfer is contingent upon the approval by the State of California and the timeline for this approval is uncertain; and WHEREAS, the Oversight Board met on May 18, 2015 to consider the Successor Agency's Long Range Property Management Plan; and WHEREAS, the subterranean utility work required for the parking lot construction project is time sensitive in order to prevent delays to the completion of the parking garage; NOW THEREFORE BE IT RESOLVED by the City Council as follows: Section 1. The City Council acknowledges that the Successor Agency intends to grant a 24 -month temporary license to Pacific Gas and Electric Company, a California Public Utility, in a form to be determined by the City Attorney for the purpose of constructing, operating, and maintaining underground utility facilities on the Redevelopment Agency Property (APN 013- 021-47) in furtherance of an enforceable obligation and to effectuate the 1998 Owner Participation, Disposition and Development Agreement, originally made with Fair, Isaac and subsequently assigned to BioMarin. Section 2. The City Council acknowledges that it intends to accept the Redevelopment Agency Property (APN 013-021-47), subject to final approval by the Oversight Board and the California Department of Finance, for use as part of the City's Second Street right-of-way, and that the Redevelopment Agency Property shall thereupon become subject to Pacific Gas and Electric Company's rights and privileges pursuant to its franchise agreement with the City of San Rafael. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the eighteenth day of May, 2015, by the following vote, to wit: AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None ESTHER C. BEIRNE, City Clerk CITY OF SAN RAFAEL INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRCC AGENDA ITEM NO._,C;____ DATE OF MEETING: 5/18/15 FROM: Stephanie Lovette DEPARTMENT: Economic Development DATE: 5/12/15 TITLE OF DOCUMENT: Resolution of the San Rafael City Council acknowledging the Successor Agency intends to grant a 24 month temporary license to Pacific Gas and Electric Company for subterranean utility work on real property located at the Southeast corner of Second Street at Lincoln Avenue (APN 013-021-47) and declaring the City Council's intention to accept the transfer of this property from the San Rafael Successor Agency. 6-� V/ JXA1 1C Depart ent Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: City Manager (signature) City Attorney (signature) NOT APPROVED REMARKS: