2002 AGN AUG 20 I16 - Laserfiche WebLink

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Item #16 CITY OF COLTON AGENDA REPORT run � UU1Ni:1L, 1v1hh L11NU ONAugust 20, 2002 TO: Honorable Mayor and City Council FROM: Thomas K. Clarke, Electric Utility Director SUBJECT: Approval of Assignment and Assumption of Option Agreement on the Beckett Ranch Property DATE: August 12, 2002 BACKGROUND: On August 14, 2001, the City Council authorized the City to enter into an Option Agreement with James and Frances Beckett which grants the City exclusive rights to purchase approximately thirty-seven (37) acres known as the Beckett Ranch Property. The Option Agreement expires August 28, 2002, one year after the effective date of the agreement. The City intends to develop an electric generating facility on a portion of the property and has since entered into an Engineering, Procurement, and Construction Agreement with EI Colton, LLC for the development of the generation project. DISCUSSION/ANALYSIS: The Engineering, Procurement, and Construction agreement with EI Colton, LLC states that the developer shall purchase the Beckett Ranch Property. To that end, the City desires to assign the City's rights and interests in the Option Agreement to EI Colton, LLC. The assignment also gives the City an option to purchase at any time that portion of the Beckett Ranch Property that is not necessary for the Project site. ALTERNATIVES: 1. Approve the assignment and assumption agreement. 2. Take no action. FINANCIAL IMPACT: There is no financial impact to the assignment and assumption of the option agreement. ENVIROMENTAL IMPACT: None. RECOMMENDATION: Council is requested to approve the assignment and assumption of the Option Agreement on the Beckett Ranch Property to EI Colton, LLC. Attachment: REVIEW City Attorney: Finance Director: t4 4, RIJLGI. City OTHER: