HomeMy WebLinkAbout09 - Palm Tree Replacement ReimbursementSEW p w
CITY OF
as NEWPORT BEACH
�q��oP City Council Staff Report
Agenda Item No. 9
November 13, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Stephen G. Badum, Assistant City Manager
949 - 644 -3002, sbadum(a)newportbeachca.gov
PREPARED BY: Stephen G. Badum, Assistant City Manager
APPROVED: 0, k hQ
TITLE: Reimbursement of The Newport Center Tree Replacement Costs
ABSTRACT:
The Irvine Company is requesting reimbursement of costs for Newport Center palm tree
replacements per the Letter Agreement dated February 5, 1985, between the Irvine
Company and the City of Newport Beach.
RECOMMENDATIONS:
1) Direct staff to transmit funds in the amount of $122,621 to The Irvine Company
representing the City's share of costs for Newport Center tree replacements in
accordance with the Letter Agreement dated February 5, 1985, between The
Irvine Company and the City of Newport Beach.
2) Approve Budget Amendment No. 13BA -020 appropriating $122,621 from the
General fund balance reserves to Account No. 3170 -8250.
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If approved, the reimbursement expenditure will be funded from General Fund surplus
fund balance.
DISCUSSION:
In 1985, The Irvine Company (TIC) initiated a project to refurbish various improvements
throughout Newport Center including replanting various medians, entrance plantings,
and street trees. As a part of that project, the City and TIC entered into a letter
Reimbursement of The Newport Center Tree Replacement Costs
November 13, 2012
Page 2
agreement, see attachment A, to specify responsibilities. In general, the agreement
allowed TIC to replace certain trees and plant new trees and plantings; specified
maintenance and utility cost responsibilities for each parry; and agreed that the cost of
any future replacements of palm trees due to disease or injury would be shared equally.
The City recently received a letter from TIC dated August 6, 2012, requesting payment
for tree replacements that occurred between September 2006 and September 2011,
see attachment B. Staff recommends that Council approve the payment and direct staff
to include a line item for these potential replacements in future budgets.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
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The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
�. Badum
City Manager
Attachment: A. Letter Agreement dated February 5, 1985
B. Letter and Invoice, dated August 6, 2012
C. Budget Amendment
-W IRVINE COMPANY
610 Newport Center Drive, P.O. Box I
Newport Beach, California 92658 -8904
(714) 720 -2000
February 5, 1985
Mr. Robert H. Burnham
Office of the City Attorney
P.O. Box 1768
Newport Beach, CA 92658 -8915
Dear Mr. Burnham:
The purpose of this Letter Agreement is to confirm our understanding regarding
the removal of existing trees, the planting of replacement trees, and the
maintenance of trees and landscaping for certain streets in Newport Center.
The City of Newport Beach (City) currently maintains: (1) landscaping in the
median strip; and (2) trees located in the median strip and along the parkways
located in Newport Center for the streets shown in red on Exhibit A attached
hereto. The Irvine Company (TIC) currently maintains landscaping along the
parkways in Newport Center for the streets shown in red on Exhibit A. The
median strip in and parkways along those streets shown in red on Exhibit A
shall be referred to herein as the Maintenance Area.
TIC, as principle owner of property within Newport Center, is presently engaged
in refurbishment of improvements within Newport Center and in conjunction with
that project, desires to remove the existing trees in the Maintenance Area and
replace them with Ficus Rubiginosa and several species of palm trees, and,
further, to establish future responsibilities between TIC and the City for main-
tenance of the trees and landscaping in the Maintenance Area.
In consideration of the following terms and conditions, TIC and the City agree
that:
TIC may remove the existing trees located in the Maintenance Area.
2. TIC shall plant various species of palm trees in the median strip
and parkways along Newport Center Drive East and West and at such other lo-
cations as are shown in red on Exhibit B hereto. Ficus Rubiginosa trees
shall be planted in the median in and parkways along those streets in green
on Exhibit B hereto.
3. TIC will purchase a one year warranty on all palm trees planted by
it in Newport Center, and shall be solely responsible for replacement of any
palm trees that may require replacement during the one year warranty period.
0
Mr. Robert H. Burnham
February 5, 1985
Page Two
Following the one year warranty period, City and TIC will share equally all
costs associated with replacement of any palm trees that require replacement due
to death, disease or injury. Any replacement tree shall be of the same species
and sex and of comparable size to the tree replaced. City and TIC shall mutually
agree upon the need for replacement of any tree, and the source of supply. If
TIC and Newport are unable to agree whether any palm should be replaced, or on
the source of supply, City and TIC agree to in good faith mutually select and
retain an independent horticultural consultant to resolve such differences, whose
recommendations as to the advisability of replacement and source of supply will
be binding upon both parties. City shall be responsible for providing the labor
to accomplish the replacement. TIC shall provide funds to purchase the replace-
ment tree. Each party shall be reimbursed by the other party for expenses in
excess of its share within thirty (30) days of receipt of an invoice pursuant to
this paragraph.
4. City shall perform all activities in connection with maintenance of the
trees located in the areas shown in red on Exhibit C hereto. TIC shall perform
all maintenance activities for trees located in the areas shown in blue on Exhibit
C hereto. Such activities shall include without limitation pruning as needed but
no less than annually; pest control and fertilization; provided, however, that
irrigation for all trees in the Maintenance Area shall be the responsibility of
TIC.
5. TIC shall be responsible for all activities in connection with the main-
tenance of landscaping, exclusive of trees, in the Maintenance Area; provided,
however, that TIC shall provide adequate irrigation for the trees located in the
Maintenance Area as indicated in Paragraph 4. Such activities shall include
trimming of shrubs and grass, pest control, fertilization and irrigation. TIC
shall be responsible for all activities and associated expense relating to the
installation and maintenance of the irrigation system in the Maintenance Area.
6. The City shall pay for the costs of utilities associated with maintenance
of the median in the areas shown in yellow on Exhibit 0 attached hereto. TIC will
pay for allremaining utilities costs associated with maintenance under this Letter
Agreement. Each party shall make arrangements to be invoiced directly by the pro-
vider of utilities for costs for which each party is responsible.
7. TIC and City shall indemnify, defend and hold the other harmless with
respect to any claim, loss, damage or injury that arises out of, or is in any way
related to the performance by each of them or their respective officers, agents,
employees or representatives, of any of the duties or acts authorized by this
Letter Agreement.
8. TIC shall have the right to take all reasonable action necessary or
convenient to perform its duties and obligations under this Letter Agreement
including the right to enter onto City -owned property and remove portions of
street or sidewalk surfacing. Any work done by TIC within any street or
0 0
Mr. Robert H. Burnham
February 5, 1985
Page Three
sidewalk shall be performed pursuant to a�permit issued by City and TIC agrees
to restore any surface area affected by its activities to substantially the same
condition as existed prior to the commencement of work.
This Letter Agreement constitutes the entire understanding of the parties hereto
and may be amended only by a writing, executed by authorized representatives of
the parties.
If the above terms and conditions are acceptable to you please sign below in the
space provided, return the executed copies to me for execution by The Irvine
Company. I will return a fully executed copy for your files.
Sincerely,
Marney "nan
Associate Division Counsel
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Attachments
Agreed and Accepted
This day of 1985.
City Newpor Be h
By a
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Parks, Beaches & Rec eation
Appr ed as to Form
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ATTACHMENT B
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� IRVINE COMPANY
Since 1864
August 6, 2012
Dave Kiff, City Manager
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
Re: Reimbursement of Newport Center Palm Tree Replacement
Dear Dave:
As I mentioned a couple of weeks ago, now that we have completed our Development
Agreement Amendment negotiationsiit was agreed that the City would pay past due amounts
owed for the City's share of palm tree replacements in the Newport Center.
I have attached a listing of palm trees replaced and an indication of the City's share. Per the
Letter Agreement dated February 5, 1985, between the City and the Irvine Company, the cost of
palm tree replacements is to be shared equally.
If you have any questions, please give me a call at 949 - 720 -2609.
Sincerely,
r
Dan Miller
Sr. Vice President
Entitlement & Public Affairs
Cc: Councilmember Ed Selich
550 Newport Center Drive, Newport Beach, CA 92660 949.720.2000
Newport Center Palm Tree Replacement
Month -Year
Amount Replaced
Total Cost
Clty's
Reimbursment
Comments
Sep -06
1
$ 24,400.00
$
Nov -06
1
$ 19,275.00
$ -
Aug -08
3
$ 61,700.00
$ 6,000.00
Cost savings of $24K due to reuse of Fashion Island palms.
Reimbursement based on City's preferred vendor for installation.
May -11
4
$ 110,567.00
$ -
Tree removal /replacement ($67K) and Palms ($43.5K)
Sep -11
2
$ 4.1,300.00
$ -
Letter sent to City on 9/22/2011
Total
11
$ 257,242.00
$ 6,000.00
Total divided by 2 $ 128,621.00
Less reimbursed amount $ (6,000.00)
Total City owes $ 122,621.00