HomeMy WebLinkAboutItem 12 - Tank Farm and Long Street Traffic Signal Reimbursement Agreement with Tank Farm Center, LLC
Department Name: Public Works
Cost Center: 5010
For Agenda of: May 18, 2021
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Director of Public Works
Prepared By: Luke Schwartz, Transportation Manager
SUBJECT: TANK FARM ROAD AND LONG STREET TRAFFIC SIGNAL
REIMBURSEMENT AGREEMENT WITH TANK FARM CENTER, LLC
RECOMMENDATION
1. Adopt a Resolution (Attachment A) approving a Reimbursement Agreement (Attachment B)
for the construction of the traffic signal system at the Tank Farm Road/Long Street
intersection by Tank Farm Center, LLC; and
2. Authorize the Mayor to execute the Reimbursement Agreement and designate the Finance
Director to implement the Agreement.
DISCUSSION
Tank Farm Center, LLC, the developer of the San Luis Obispo Public Market project, is required
to fund, design, and construct a new traffic signal at the intersection of Tank Farm Road and
Long Street, which serves as the primary vehicular access point to the Public Market
development. The need for the traffic signal was originally identified in the transportation impact
study prepared for the project and was ultimately included as a required mitigation measure and
condition of approval for the development (See Attachment C Architectural Review Committee
Resolution No. ARC-1013-16).
In addition to benefiting the Public Market development, the traffic signal will also serve
existing and future development and road users along the Tank Farm Road corridor. Section
16.20.110 of the City of San Luis Obispo Municipal Code allows the developer to request
reimbursement from the City when improvements are required at a greater capacity (fair share)
than required for the development of the property under consideration. The full cost of the Tank
Farm Road/Long Street traffic signal is included in the Citywide Transportation Impact Fee
program and the Public Market developer has already paid all applicable transportation impact
fees (approximately $600,000) and completed construction of the traffic signal in early 2021.
Based on this information, staff recommends that Council adopt the Resolution approving the
Reimbursement Agreement with Tank Farm Center, LLC, which will allow the City to reimburse
the developer for traffic signal installation costs that exceed the project’s fair share. As discussed
in greater detail in the Fiscal Impact section below, reimbursement will come from the
uncommitted Citywide Transportation Impact Fee fund balance, which includes impact fees
already paid by the developer, which exceed the total reimbursement request.
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Policy Context
City of San Luis Obispo Municipal Code Section 16.20.110 establishes the eligibility for public
reimbursement agreements for private development.
Public Engagement
This project has a “notify” level of engagement as identified in the City’s Public Engagement
and Notification Manual. Public hearings were held before the Architectural Review
Commission for the San Luis Obispo Public Market (Long-Bonetti Ranch Development) in 2013
and 2016, and the most recent update to the Citywide Transportation Impact Fee Program was
presented to the City Council for adoption as a public hearing item in 2019.
CONCURRENCE
The City Attorney, Community Development and Finance Departments have reviewed this staff
report and concur with its recommendation.
ENVIRONMENTAL REVIEW
Construction of the Tank Farm Road/Long Street traffic signal was reviewed as part of the
Mitigated Negative Declaration prepared for the San Luis Obispo Public Market project, adopted
by the Architectural Review Commission on July 11, 2016. Installation of the traffic signal was
identified as a required mitigation measure to address significant transportation impacts resulting
from the development proposal. The signal improvements have now been completed and this
Reimbursement Agreement relates only to the financial mechanism by which the developer’s
costs in excess of fair share will be reimbursed and does not implicate any physical change to the
project or the environment necessitating additional environmental review.
FISCAL IMPACT
Budgeted: No Budget Year: 2020-21
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Citywide
Transportation Impact
Fee Fund
$367,755.02 - $367,755.02
Total $367,755.02 - $367,755.02
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The total cost incurred by the developer for installation of the traffic signal system at Tank Farm
Road/Long Street is $379,128.89. After subtracting the developer’s fair share (3% of project
costs), the total eligible for reimbursement is $367,755.02. The developer has provided required
documentation of these costs and staff has approved this total amount as eligible for
reimbursement. Per the terms of the Reimbursement Agreement, reimbursement to the developer
will be paid from the current uncommitted Citywide Transportation Impact Fee fund balance.
Through March of 2021, the Citywide Transportation Impact Fee account has a total fund
balance of $10.9 million, including roughly $600,000 in transportation impact fees already paid
by the San Luis Obispo Public Market development. There is currently $6.1 million in Citywide
Transportation Impact Fee funds committed to other capital improvement plan projects in the
current 2019-21 Financial Plan, and $4.25 million proposed for new/ongoing projects in the
Draft 2021-23 Financial Plan, leaving an uncommitted fund balance of approximately $550,000,
which provides adequate funds to proceed with this reimbursement request.
ALTERNATIVES
Continue Consideration of the Proposed Reimbursement Agreement. The City Council could
elect to continue consideration of the Reimbursement Agreement to provide additional
clarifications or information needed to render a decision. Should the Council elect this
alternative, direction should be provided to staff as to the additional information needed for
Council consideration.
Attachments:
a - Draft Resolution
b - Exhibit A to the Resolution (Reimbursement Agreement with Tank Farm Center, LLC)
c - COUNCIL READING FILE - Architectural Review Commission Resolution No. 1013-16
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R _____
RESOLUTION NO. _________ (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN LUIS OBISPO, CALIFORNIA, APPROVING A REIMBURSEMENT
AGREEMENT WITH TANK FARM CENTER, LLC FOR CONSTRUCTION
OF A TRAFFIC SIGNAL AT THE TANK FARM ROAD/LONG STREET
INTERSECTION
WHEREAS, On July 11, 2016, the City of San Luis Obispo Architectural Review Committee
adopted Resolution No. ARC-1013-16, adopting a Mitigated Negative Declaration and granting
design approval of the “San Luis Obispo Public Market Project” at 120 Tank Farm Road/3897 S.
Higuera Street; and
WHEREAS, Mitigation Measure T-1 and Condition of Approval #49 of Architectural
Review Committee Resolution No. ARC-1013-16 requires the developer of the San Luis Obispo
Public Market Project (Tank Farm Center, LLC or “Developer”) to construct a traffic signal at the
intersection of Tank Farm Road and Long Street; and
WHEREAS, Tank Farm Center, LLC, has secured City approval of the Public Improvement
Plans for the traffic signal, completed construction of the improvements, and provided documentation
of applicable costs incurred for construction of the improvements to the satisfaction of the City Public
Works Department; and
WHEREAS, the traffic signal improvements associated with the Tank Farm Center, LLC
project will benefit properties other than those owned by the developer, and thereby qualify said
public improvements for reimbursement as set forth in San Luis Obispo Municipal Code Section
16.20.110; and
WHEREAS, the City has an established a Citywide Transportation Impact Fee Program that
allows new development projects to pay a fair share fee towards transportation infrastructure needs
throughout the City; and
WHEREAS, the Citywide Transportation Impact Fee Program currently includes the full
costs for installation of a traffic signal at the Tank Farm Road/Long Street intersection, the Developer
has paid all applicable transportation impact fees, which exceed the total cost of the traffic signal
installation, and has received no fee credits from the City related to these improvements; and
WHEREAS, Citywide Transportation Impact Fee reimbursements shall not exceed the
purpose or amount being collected; and
WHEREAS, the City agrees that the Developer is eligible for reimbursement of costs
exceeding the Developer’s fair share obligation for installation of a traffic signal at the Tank Farm
Road/Long Street intersection, with reimbursement to be paid from the City’s uncommitted Citywide
Transportation Impact Fee fund balance.
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Resolution No. _________ (2021 Series) Page 2
R _____
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The “Reimbursement Agreement,” attached to this Resolution as Exhibit A,
is hereby approved, and the Mayor is authorized to approve minor revisions and execute this
Agreement on behalf of the City.
SECTION 2. The Finance Director is authorized to administer and implement the
“Reimbursement Agreement” as provided therein.
SECTION 3. The Mayor and City staff are authorized to take action necessary to carry out
the intent of this resolution.
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Resolution No. _________ (2021 Series) Page 2
R _____
SECTION 4. Environmental Review. Construction of the Tank Farm Road/Long Street
traffic signal was reviewed as part of the Mitigated Negative Declaration prepared for the San Luis
Obispo Public Market project, adopted by the Architectural Review Commission on July 11, 2016.
Installation of the traffic signal was identified as a required mitigation measure to address
significant transportation impacts resulting from the development proposal. The signal
improvements have now been completed and this Reimbursement Agreement relates only to the
financial mechanism by which the developer’s costs in excess of fair share will be reimbursed and
does not implicate any physical change to the project or the environment necessitating additional
environmental review.
Upon motion of _______________________, seconded by ________________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ______ day of _______________ 2021.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ____________________________.
____________________________________
Teresa Purrington,
City Clerk
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