Vacations - Easements, Reserves, Streets, Walkways - 1979-1981 pt1

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EAST BAY MUN. UTILITY DIST. V. 349 RICHMOND REDEVELOPMENT AGENCY 93 Cal.App.3d 346; Cal. Rptr. — Municipal Utility'District, a public corporation (EBMUD). The pertinent facts indicate that prior to June 1973, the City entered into a local grant-in-aid and cooperation agreement (Cooperation Agreement) with the Agency and adopted an urban renewal plan for a project known as "Downtown Richmond Redevelopment Project No. 10-A" (hereafter Project 10-A). Project 10-A was undertaken by the Agency pursuant to the California Community Redevelopment Law, and its purpose was to eliminate slums and blighted areas in the City. Under the Cooperation Agreement the City, among other things, agreed to vacate such streets, . roads, alleys and other public ways as required for the implementation of the renewal plan and Project 10-A. Contemporaneously, the Agency executed a loan and capital grant contract (Grant Contract) with the United States Department of Housing and Urban Development (HUD) to secure federal funding for Project 10-A. Although under HUD regulations the relocation expenses of publicly owned utilities are eligible for a federal grant, the Agency failed to include in the Grant Contract the relocation cost of EBMUD facilities, and failed to claim federal assistance for said purpose in any other way. € By virtue of its statutory franchise, EBMUD had installed and was f operating and maintaining its pipelines and other facilities within the `• following portions of streets within the project area: (a) 13th Street between Barrett and Nevin Avenues; (b) 12th Street between Barrett and Nevin Avenues; (c) 13th Street between Macdonald and Bissell Avenues; s and (d) 12th Street between Macdonald and Bissell. Avenues. For the purpose of carrying out the renewal plan and in accordance with the 4 Cooperation Agreement, the City commenced proceedings to vacate the described portions of 12th and 13th Streets. Although EBMUD objected to the vacations and requested that the City reserve EBMUD easements in those streets for its water mains and other facilities, the orders of vacation did not reserve easements or any other rights to EBMUD. The proposed use of the vacated portions of 12th and 13th Streets physically required the relocation of EBMUD's facilities from those areas. As a result, a dispute arose between the parties as to who was responsible for the cost of relocation. In order to avoid delaying or otherwise impeding the progress of the project, EBMUD entered into a status quo agreement } with the City and the Agency. Under the agreement EBMUD consented to the relocation of its facilities from the disputed area and the City and the Agency undertook to deposit the sum of $69,196 in escrow with the May 19791 11 F 41 i f