title
AMENDMENT TO THE HOLMAN ROAD BRIDGE OVER BEAR CREEK REIMBURSEMENT AGREEMENT TO INCREASE REIMBURSEMENT AMOUNT BY $4,449,015
recommended action
RECOMMENDATION
It is recommended that City Council adopt a Resolution to:
1. Approve an Amendment to Holman Road Bridge Over Bear Creek Reimbursement Agreement to increase the reimbursement amount by $4,449,015 with Vascorp Investments Corporation, Inc.; and
2. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.
body
Summary
The proposed Resolution approves an amendment to the Holman Road Bridge Over Bear Creek Reimbursement Agreement that increases the reimbursement amount by $4,449,015 with Vascorp Investments Corporation Inc. (Developer).
Conditions of approval for the Cannery Park Mixed Use project require that certain public improvements, such as utilities, roadways, and bridge crossings, be constructed. On November 27, 2007, and in accordance with the Public Facilities Fees (PFF) Administrative Guidelines, the City Council approved a PFF reimbursement agreement with the Developer for the eligible portion of Holman Road and the bridge crossing extension improvements constructed, for an amount not to exceed $3,095,241.
The Developer received bids for constructing the Holman Road extension and bridge crossing improvements that significantly exceed the anticipated construction cost prepared in 2007. Consequently, the approved reimbursement amount for PFF-eligible improvements is insufficient to compensate the Developer. To comply with the allowable construction work window within the environmentally sensitive Bear Creek habitat, the Developer elected to proceed with construction of the bridge crossing improvements and receive partial reimbursement under the approved amount in the current Agreement.
To enable the continued construction of Holman Road extension and bridge crossing without delay, staff recommends that Council adopt a Resolution amending the Holman Road Bridge Over Bear Creek Reimbursement Agreement to increase the reimbursement amount by $4,449,015. Sufficient funds are available in Public Facilities Fee Street Improvements fund account to address the requested reimbursement amendment.
DISCUSSION
Background
On August 12, 2004, the Planning Commission approved a Small Lot and Large Lot Tentative Subdivision Map (TM 8-04 A&B) for the Cannery Park Mixed Use Project (Attachment A - Vicinity Map). The Planning Commission also recommended City Council approve an Environmental Impact Report, General Plan Amendment, Eight Mile Road Specific Plan Amendment, Annexation, Pre-zoning, and Development Agreement for the project. On September 14, 2004, City Council approved the Planning Commission and staff recommendations. The approved 448-acre project development will consist of 1,100 single-family lots, 210 multi-family units, commercial retail and office, industrial parks, a school, and a fire station. The Developer will also construct public infrastructure improvements, including the bikeway/pedestrian along Bear Creek, utility mains, a Holman Road extension from north of Morada Lane up to Eight Mile Road, and bridge crossing over Bear Creek.
In accordance with the Public Facilities Fees Administrative Guidelines, the City Council approved a Public Facility Fee (PFF) reimbursement agreement in 2007 for the eligible portions of Holman Road improvements from the Woodbridge Irrigation canal crossing to a bridge crossing of Bear Creek, in the amount not to exceed $3,095,241 (Attachment B - Resolution No. 07-0489). The approved reimbursement included construction management and staking, inspection fees, and ten percent (10%) contingencies.
The project was slowed by the 2008 - 2009 recession but resumed development in 2017. Up to the present time, the Project has had eight final maps approved that created 840 residential lots, a school, public rights-of-ways, and easements. Public infrastructure improvements have also been completed, including extending a portion of Holman Road to PFC Jesse Mizener Street and utility main extensions. Construction of the bridge crossing over Bear Creek is presently underway.
Present Situation
Due to both the increased cost for construction labor and materials and economic inflation, the recent construction bids received by the Developer for the Holman Rd extension (from north of PFC Jesse Mizener Street to Eight Mile Road), including the bridge crossing are significantly higher than the engineer’s cost estimate that was prepared in 2007. Consequently, the reimbursement amount approved for the eligible portions of the Holman Road extension and bridge crossing improvements is insufficient to compensate the Developer. Therefore, the Developer seeks to amend the Holman Road Bridge Over Bear Creek Reimbursement Agreement to increase the reimbursement amount by $4,449,015 to continue construction activity without delay.
Table 1 outlines the approved and additional reimbursement amount needed for eligible improvements.
|
|
(A) Approved Reimbursement Agreement Amount |
(B) Eligible Improvement Cost (Based on Bids Received) |
(B - A) Additional Reimbursement Amount Request (Amendment) |
|
Holman Road Extension |
$ 521,131 |
$ 1,248,106 |
$ 726,975 |
|
Bridge Crossing |
$ 2,574,110 |
$ 6,296,150 |
$ 3,722,040 |
|
Total = |
$ 3,095,241 |
$ 7,544,256 |
$ 4,449,015 |
The Developer continues to consider ways to reduce construction costs, such as using alternative materials, exploring design options, and possibly rebidding the Holman Road extension portion from Bear Creek to Eight Mile Road in early spring of 2023 in anticipation of a more favorable bid price.
The Developer received permit conditions of approval for construction of the Holman Road Bridge over Bear Creek from the Central Valley Flood Protection Board and Federal Army Corps of Engineers. In order to meet the short “in-creek” construction window imposed by the permit conditions, the developer has begun construction of Holman Road Bridge over Bear Creek. The bridge crossing portion is anticipated to be completed in the spring of 2023.
Staff recommends that Council adopt a Resolution amending the Holman Road extension and Bridge Over Bear Creek Reimbursement Agreement to increase the reimbursement amount by $4,449,015 for a total eligible amount not to exceed $7,544,256.
FINANCIAL SUMMARY
The existing reimbursement agreement is funded from the Facilities Street Improvement Fee Fund. There are sufficient funds available in this fund to sustain the increase to the reimbursement amount. There will be no financial impact to the City’s General Fund as a result of approving this action.
Attachment A - Vicinity Map
Attachment B - Resolution No. 07-0489