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AMENDMENT OF THE LOWER SACRAMENTO ROAD REIMBURSEMENT AGREEMENT WITH WOODSIDE NORTHBROOK ESTATES, INC.
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a Resolution:
1) Amending the Lower Sacramento Road Reimbursement Agreement with Woodside Northbrook Estates, Inc.; and
2) Appropriating an additional $81,378 from Public Facility Fee Street Improvement Funds for the reimbursement of eligible costs.
3) Authorizing the City Manager, or his designee, to take necessary and appropriate actions to carry out the purpose and intent of the Resolution.
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Summary
The proposed Resolution is recommended to conclude the City’s arrangements with Woodside Northbrook Estates, Inc. (Woodside). The Northbrook Estates subdivision is complete, Woodside fulfilled its development obligations and constructed requested offsite improvements. The proposed Resolution makes final amendments to the Reimbursement Agreement. Woodside’s development obligation was to either design and construct the offsite improvements or pay Public Facilities Fees (PFF) to satisfy its proportionate share of planned facilities. PFF are collected at the issuance of building permits and provide funding for improvements necessary to mitigate the impact of development. Woodside paid PFF on all of its lots.
It is also common for the City to enter into reimbursement agreements to construct offsite improvements. When builders are constructing onsite improvements for a project, it can be efficient to construct offsite improvements at the same time. On April 25, 2006, the City entered into a reimbursement agreement with Woodside. The reimbursement agreement provided up to $227,500 for eligible design costs to prepare plans to widen Lower Sacramento Road from Eight Mile Road to south of Marlette Road. Future construction was subject to mutual agreement of Woodside and the City. The City worked with Woodside to address traffic safety at the site entrance, and a new traffic signal and associated widening were deemed necessary and affordable. Woodside constructed the improvements and is eligible to receive reimbursement for eligible design costs of $46,623 and construction costs of $262,255. Staff recommends that the Council amend the reimbursement agreement to reflect the final project scope and provide an additional $81,378 for a total reimbursement of $308,878.
DISCUSSION
Background
On August 11, 2005, the Planning Commission approved a request by Woodside for the Northbrook Tentative Map (TM45-04) which provided for 337 single family lots and a 5.3 acre park site on 71 acres. The project site is located south of Eight Mile Road, west of Lower Sacramento Road and east of the Union Pacific Railroad line (see Attachment A - Vicinity Map).
The Northbrook Tentative Map was approved subject to 43 map conditions. Among these conditions were options to mitigate the impact of development. Mitigation requirements could be satisfied by payment of the PFF or by constructing specific improvements. Two specific mitigation requirements were derived from the Supplemental Environmental Impact Report (SEIR) for the North Stockton Projects Phase III Annexation. The two project requirements were to design and construct traffic signal and intersection improvements at Lower Sacramento Road and Marlette Road and design and construct the widening of Lower Sacramento Road to four lanes from Eight Mile Road to the south of Marlette Road. Both of the improvements are included in the City’s PFF program, and the map conditions specified that design and construction was subject to a mutually agreeable reimbursement agreement.
On April 25, 2006, the City Council adopted Resolution No. 06-0216 which approved the Lower Sacramento Road Reimbursement Agreement with Woodside (Attachment B - Resolution No. 06-0216). The Agreement included provision to reimburse Woodside up to $227,500 for the cost of design and permits to widen Lower Sacramento Road to four lanes between Eight Mile Road and south of Marlette Road. The agreement also included a provision that allowed Woodside to later request an amendment for reimbursement of construction costs following completion of the design.
Woodside is one of a few development projects that received planning approvals for site development under the SEIR for the North Stockton Projects Phase III Annexation. Adjacent projects include Destinations and Elderberry. These development projects are in preliminary stages of site development and have existing agreements similar to Woodside. As these projects develop, the affected public street improvement obligations will be satisfied either through constructing the improvements subject to a negotiated reimbursement agreement or through payment of public facilities fees.
Present Situation
Woodside completed the design plans for a portion of the Lower Sacramento Road widening improvements associated with a new traffic signal at their site entrance. A total of $46,623 was expended to reimburse Woodside for the eligible design work and staff overhead costs. Lot development ensued, and Woodside paid appropriate PFF with building permits. The main portion of the Lower Sacramento Road design work for the segment north of Marlette Road was not completed because a mutually agreeable reimbursement agreement between Woodside and the City could not be developed. Due to the economic downturn and stoppage of development, the PFF program is significantly reduced. The PFF program can only afford the construction costs for the widening associated with the traffic signal work. Woodside constructed the traffic signal and intersection improvements to enhance safety and alleviate traffic delays resulting from the development of new housing units within its project site. The improvements were accepted, and a Notice of Completion was recorded on April 06, 2016.
The Reimbursement Agreement, approved by Resolution No. 06-0216, provides the means for Woodside to request an amendment to be reimbursed for the costs of constructing the improvements. The amendment must be considered in the same manner the agreement was originally approved, which requires Council’s consideration. An amendment to the Reimbursement Agreement with Woodside is necessary to provide reimbursement consistent with acceptance of the improvements. Further, the amendment will clarify that design plans related to the widening of Lower Sacramento Road from Eight Mile Road, south to the northerly project boundary of the Woodside Northbrook frontage are no longer included. Woodside completed development of its residential project and is requesting the clarification as part of closing out the project. Based on staff’s review of the expenses, design costs of $46,623 and construction costs of $262,255.10 should be reimbursed and can be afforded.
Staff recommends approval of the amendment because the intersection widening improvements constructed on Lower Sacramento Road at Marlette Road were necessary to accommodate a new traffic signal to address traffic flows from the development project and future developments. The requested reimbursement is appropriate because the associated improvements are included in the PFF program and exceed the applicant’s proportionate share. Staff also supports the removal of design plans for widening the northerly segment of Lower Sacramento Road because Woodside paid PFF, and has complied with the tentative subdivision map original conditions of approval.
FINANCIAL SUMMARY
No General Fund resources are required for this request; the recommended appropriation is from development fees paid into the PFF Street Improvement Fund. Based on the original agreement, $227,500 was budgeted in the Lower Sacramento Road Reimbursement Agreement Project PW9261 for design work in FY 2013. A total of $46,623 has been expended on eligible design work and overhead costs, leaving $180,877 in the project. The applicant is now requesting a total of $262,255.10 for construction work. The applicant is requesting to use unexpended design funds to pay for a portion of eligible construction expenses. The requested reimbursement exceeds the available funds in the project by $81,378.
Total original design reimbursement agreement amount $ 227,500.00
Total payment made to Woodside for design costs $ -44,829.76
Administration and Overhead Charge $ -1,793.00
Total Remaining Balance from existing agreement $ 180,877.24
Reimbursement requested by Woodside for construction costs $ 262,255.10
Less Remaining Balance unexpended on design work $-180,877.24
PFF Street Improvement fund appropriation requested $ 81,377.86
To complete the requested reimbursement, an additional appropriation of $81,378 is needed in the Lower Sacramento Road Reimbursement Agreement Project PW9261 from the PFF Street Improvement 910 fund balance. Sufficient fund balance is available in the PFF Street Improvement 910 fund balance for the additional appropriation.
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From: |
To: |
Amount |
|
PFF Street Improvement Fund 910 Available Fund Balance |
Lower Sacramento Road Reimbursement Agreement PW9261 - 910-9261-640 |
$81,378 |
Attachment A - Vicinity Map
Attachment B - Resolution No. 06-0216