HomeMy WebLinkAbout6/21/2022 Item 5l, Elke - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: June 21, 2022
TO: Mayor and Council
FROM: Brigitte Elke, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 5l – AUTHORIZE A REIMBURSEMENT AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO AND AVILA RANCH DEVELOPERS,
INC. FOR RECYCLED WATER
Staff received a question regarding the basis for reimbursement agreements with
developers and the mechanics of the repayment.
1) Basis of reimbursement agreements with developers .
Answer:
The City is the authorized agency under the law to require orderly and efficient
development. To achieve this goal, the City often requires developers to oversize
infrastructure to accommodate the entire area development. In most cases, this
oversizing is above and beyond the developer’s fair share of the infrastructure
needed for their development and ent itles them for reimbursed from future
developments benefitting from the infrastructure.
The City’s Municipal Code under 16.20.110 – Reimbursements – provides the
basis for the agreements.
16.20.110 A. Eligibility. Whenever improvements are required to be
installed adjacent to property other than that being developed or in
greater size or capacity than that required for the development of the
property under consideration, the developer of the improvements
may be eligible for reimbursement…
2) Mechanics of repayment.
Answer:
As the permitting agency, the City collects all development related fees including
impact fees for transportation, parks, water and sewer infrastructure. When a
developer places infrastructure beyond their fair share that will benefit other
developments in the area, a reimbursement agreement is put in place to allow the
developer to receive those fees paid by other developers as repayment for the
upfront cost.
5l – Reimbursement Agreement with Avila Ranch Developers, Inc. Page 2
16.20.110 C. Payment of Reimbursement.
1. When prorated shares of the cost of improvements are collected
from the developers of new projects, the money collected shall be
paid in accordance with the terms of the agreement. The City shall
not be required to reimburse more money than it actually collects.
2. Reimbursements shall be made only when the city collects
money from the developers of new projects, notwithstanding any
provision of any law, this code or the reimbursement agreement.
Failure or error by the city resulting in funds not being coll ected will
not subject the city to any liability, obligation or debt owed the original
developer. (Ord. 1490 § 3 (part), 2006)