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Item 8HAGENDA ITEM # 8H APRIL 12, 2010 CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Modification to Agreement between the City of Atlantic Beach and The Estates of Atlantic Beach LLC SUBMITTED BY: Jim Hanson, City Mana DATE: Apri15, 2010 BACKGROUND: The owners of The Estates have offered to the City of Atlantic Beach to amend the Agreement providing for a sewer line easement that was approved by the City Commission in September of 2009. The amendment would eliminate the requirements that the trees be removed by Atlantic Beach and mitigation costs be paid and instead that the estimated cost of these of $140,000 be paid to The Estates. The City of Atlantic Beach would still have the easement for installation of the sewer line but would be required to install the line through directional drilling. The other provisions of the Agreement would remain the same. The effect of this Agreement would be to allow the trees along this property to remain in place until such time as the owners of The Estates choose to develop the property, at which time it would be their responsibility to remove trees and pay any mitigation costs. Some of the Oceanwalk residents have objected to the removal of several trees that would be required under the original Agreement. This proposed amendment would allow the trees to remain at least for the time being and should resolve the issue related to the sewer line installation. BUDGET: Engineers working on the behalf of the City have not yet established a design for the proposed roadway as described in the Agreement with The Estates so the most current estimate of the cost to remove the trees and mitigation fees to the City of Jacksonville remains at $140,000. The City's engineers have also tried to estimate the difference in cost between directional drilling and open cut installation. In this situation, and at this particular time, they believe the costs to be approximately equal. Therefore, it is not anticipated that there will be any change in the City's installation cost for the sewer line from this proposed Agreement. RECOMMENDATION: Authorize the City Manager to approve the Modification Agreement attached hereto. ATTACHMENTS: 1) Modification Agreement AGENDA ITEM # 8H APRIL 12, 2010 MODIFICATION AGREEMENT AGREEMENT made and entered into this day of April, 2010, at Atlantic Beach, Duval County, Florida, by and. between the CITY OF ATLANTIC BEACH, a Florida municipal corporation, 800 Seminole Road, Atlantic Beach, Florida 32233 (hereinafter referred to as the "City"), and THE ESTATES OF ATLANTIC BEACH, LLC., a Florida limited liability company, 501 Riverside Avenue, Suite 600, Jacksonville, FL 32202 (hereinafter referred to as "The Estates"). The parties to this Modification Agreement entered into an Agreement dated , 2009, which included requirements for The Estates to provide a utility easement to the City and to place certain deed restrictions on its real property, and the City agreed that The Estates had a legal right to construct a street on its property and that the City was responsible for any tree removal and resulting tree mitigation costs in connection with use of the easement and future road construction. A copy of the original Agreement is attached hereto as Exhibit "A", and to the extent that it is not inconsistent with terns of this Modification Agreement, is made a part hereof. The parties hereby modify the Agreement, Exhibit "A" attached hereto, in the following respects: (a) Paragraphs 2(b) and (c) on page 3 of said Agreement are deleted and the following paragraph 2(b) is substituted in their place, so that paragraph 2 now meads as follows: " 2. Covenants, promises and agreements to be performed by the City: (a) The City agrees The Estates has the legal right to construct a street on its property which fully connects to Selva Marina Drive at its northern most point and that The Estates is vested with sufFicient capacity on Selva Marina Drive to accommodate vehicuiaz traffic which will be generated by thirty-eight (38) single family residential units. The number of trips to be vested will be determined by a traffic study provided by The Estates. The vested rights for capacity on Selva Marina Drive and the agreement to construct the street connecting to Selva Marina Drive will be confirmed, in writing, to The Estates in a form of document acceptable to The F,states. (b) The City shall uav to The Estates on or before June 30 2010 the sum of $140.000.00 which is the estimated cost for tree mitipation arxi removal associated with construction of a future road in the sewer easement as aired in AGENDA ITEM # 8H APRIL 12, 2010 this A meet. This amount is being raid to The Estates for the purpose of tree removal and nvtis?ation cosrts to be paid to the City of Jacksonville After payment of this amoun the Crtv shall have no further responsibility for any future tree removal or mttiQat~on unless rt is reawred m connection with the sewer line uastallation, and The Estates shall have the sole responsibility for all tree removal and nutieation m connection with construction of the future road." IN 'WITNESS WHEREOF, the parties have hereunto set their hands and official seals on the date and place first above written. SIGNED AND SEALED IN OUR PRESENCE: Witness print name: Witness print name: Wigs print Warne: Witness print name: CITY OF ATLANTIC BEACH, FLORIDA By: James R Hanson, City Manager Attest: Donna Bartle, City Clerk THE ESTATES OF ATLANTIC BEACH LLC By 2 Michael A. Sores, Manager