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Agenda Item 27.

City Council Meeting

Meeting Date:	11/07/2017
FROM:	Bill Gallardo

Subject:

Encroachment License Agreement with Old Brea, LLC and Southern California Edison Easements on City Owned Parking Lot for 180 S. Brea Boulevard.

RECOMMENDATION

Approve Encroachment License Agreement and Grant of Easements to Southern California Edison.

BACKGROUND/DISCUSSION

On October 25, 2016, Planning Commission approved Resolution No. PC 2016-17 for the entertainment venue, restaurants, and related improvements for 180 S. Brea Boulevard ("Project"). The property at 180 S. Brea Boulevard is owned by Old Brea, LLC, and is located in Downtown Brea at the northeast corner of Birch Street and Brea Boulevard. It is adjacent to the existing City owned parking lot (APN 296-364-28 and Lot 5 of LLA 02-02) located on the north side of Birch Street and east of Orange Avenue. Exhibit 'A' Location Map is attached herewith for reference. The subject property at 180 S. Brea Boulevard and the City owned public parking lot are part of the Brea Downtown Owner's Association ("BDOA") and its Covenants, Conditions and Restrictions ("CC&R").

The approved Project consists of interior demolition of the existing building (formerly occupied by Old Navy) for tenant improvements to create entertainment facilities (such as theater), restaurants, and courtyard area within the existing building footprint. The facade of the building will also be enhanced as part of the Project. Furthermore, this Project includes a number of site improvements. These site improvements comprise of constructing a trash enclosure and associated landscaping, installation of electrical transformer and conduits, installation of grease interceptor and sewer drain line, and installation of a bicycle rack.

The aforementioned site improvements have been designed to be located within the City owned public parking lot pursuant to the approved Resolution PC No. 2016-17 Conditions of Approval ("COA") and are therefore considered an encroachment onto the City owned property. In addition to these improvements, some parts of the building, such as the proposed stairwell, proposed electrical enclosure and existing door swing areas, as well as the proposed bicycle rack and the existing fire service lines encroach into the City owned property. Refer to Exhibit 'B' for Site Improvement Exhibit and Exhibit 'C' for Encroachment Area Exhibit.

Pursuant to the COA for this Project, the property owner is required to enter into an Encroachment License Agreement ("Agreement") with the City for terms and conditions of construction and maintenance of these site improvements within the City owned property. This Agreement stipulates that the property owner is solely responsible for the construction and maintenance of the improvements. Staff prepared the Agreement with review and concurrence from the City Attorney's office (Refer to  Encroachment License Agreement).

Furthermore, the proposed electrical transformer and the conduits servicing the new use for the Project require easements to be granted to Southern California Edison ("SCE"). Pursuant to the COA, the property owner is responsible to pay for any cost and perform any work related to the easement process with SCE. The final Grant of Easement document has been reviewed by the City Engineer for the legal description of the easement area and the easement form is in compliance with the form previously reviewed by the City Attorney's office and approved by the City Council (Refer to SCE Easement).

FISCAL IMPACT/SUMMARY

The costs associated with this action and staff efforts to approve the Agreement for the property owner and Grant of Easement to SCE is included in the development fees collected from the applicant pursuant to the COA. SCE will be paying for the County of Orange recordation fee. Therefore, there is no General Fund impact from this action.

The new use of the existing building at 180 S. Brea Boulevard, from retail use to entertainment venue and restaurants, was approved by the Planning Commission on October 25, 2016, pursuant to Resolution No. PC 2016-17. There are a number of site improvements related to this Project and these site improvements are located within the City owned parking lot adjacent to the
Project (APN 296-364-28 and Lot 5 of LLA 02-02).

The property owner is required to enter into an Agreement with the City for the site improvements that encroach into the City owned property, as well as, processing the easements for the new transformers and electrical conduits that SCE requires in order to install this new system within the City owned property. Both the Agreement and the Grant of Easement documents have been reviewed by the City Engineer and City Attorney's office. Therefore, staff is recommending the City Council consider approving the Agreement with the property owner to encroach within the City owned property and Grant of Easement to Southern California Edison to install the electrical transformer and conduits which serve the adjacent properties.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Hsing Chao, Associate Engineer
Concurrence: Steve Kooyman, P.E. City Engineer

Attachments
Exhibit 'A' - Location Exhibit
Site Improvement Exhibit 'B'
Exhibit 'C' - Encroachment Area Exhibit
Encroachment License Agreement
SCE Easement