AR-Beckett Ranch Option Agreement for Colton Jets Project

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CITY OF COLTON AGENDA REPORT FOR CITY COUNCIUUTILITIES COMMISSION ADJOURNED JOINT MEETING OF August 14, 2001 TO: Honorable Mayor and City Council JAPPROVAL: Daryl Parrish, City Manager FROM: City Attorney (SUBJECT: Beckett Ranch Option Agreement (DATE: July 27, 2001 BACKGROUND: At the City Council meeting on June 5, 2001, the City Council was first presented with the Option Agreement between the City and James and Frances Beckett for the option to purchase the Beckett Ranch property on Agua Mansa Road as a potential site for a power plant. The City Council approved the Option Agreement in concept and directed City staff and the City Attorney to negotiate the final terms and conditions of the Option Agreement with the Becketts and their attorneys. City staff agreed to bring the Option Agreement back to the City Council if the negotiated terms and conditions were substantially different than those presented to the Council on June 5, 2001. On July 17, 2001, City staff brought the Option Agreement back to the City Council because the Becketts had requested substantial revisions to the Option Agreement. In particular, the Becketts want the City to purchase the property in "as is" condition regardless of the environmental condition of the property. In response, the City Council approved the Option Agreement provided that a provision is included that makes the Option Payments refundable if any hazardous materials are found on the property during the option period. DISCUSSION/ANALYSIS: Subsequent to the July 17, 2001 meeting, the City Attorney conveyed to the Becketts the City Council's proposed changes. The Becketts agreed to making the Option Payments refundable for up to 60 days after execution of the Option Agreement if any hazardous materials are found on the property during that time period. The Becketts reason that 60 days should be sufficient time for the City to diligently conduct environmental studies on the property. The Becketts made it clear that they will not agree to refunding the Option Payments for more than 60 days. Item #5 Item #5