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HomeMy WebLinkAbout06-20-2017 Item 09 Approval of a reimbursement agreement with Ambient Communities for Offsite and Oversized Public Improvements associated with Orcutt Area Specivic Plan Devevelopment Projects Meeting Date: 6/20/2017 FROM: Michael Codron, Community Development Director Prepared By: David Watson, Contract Planner Diane Dostalek, Senior Civil Engineer SUBJECT: APPROVAL OF A REIMBURSEMENT AGREEMENT WITH AMBIENT COMMUNITIES FOR OFFSITE AND OVERSIZED PUBLIC IMPROVEMENTS ASSOCIATED WITH ORCUTT AREA SPECIFIC PLAN DEVELOPMENT PROJECTS RECOMMENDATION Adopt a resolution approving a Reimbursement Agreement (Attachment C) for the construction of specific public improvements by Ambient Communities that benefit other Orcutt Area Specific Plan (OASP) property owners, authorize the Mayor to execute said Agreement, and authorize the Public Works Director to implement said Agreement. REPORT IN BRIEF Ambient Communities, the developer of the Righetti Ranch, Jones, Imel and Pratt(1) subdivisions is conditioned to construct numerous public improvements in order to develop their property. As the first developer coming forward in the OASP, Ambient is bearing an upfront share of the cost to construct the backbone infrastructure that serves other benefiting properties in the OASP. When a developer is required to construct offsite or oversized improvements, Section 16.20.110 of the San Luis Obispo Municipal Code allows the developer to request a reimbursement agreement with the City to identify those benefitting properties and seek future reimbursements from them for these improvement costs. As those other properties develop, the City will attempt to collect a prorated share of the cost of the improvements and then use those funds to reimburse the original developer who fronted the costs. A reimbursement agreement and an estimate of the costs allocated to each benefitting property is being presented to Council for approval. These reimbursable costs are estimates and will not be collected until documentation of final costs are provided by Ambient. Pursuant to the Municipal Code, reimbursements shall be made only when the city collects money from the developers of new projects and failure or error by the city resulting in funds not being collected will not subject the city to any liability, obligation or debt owed the original developer. The reimbursement agreement expires in 15 years. The affected property owners have been notified of the proposed reimbursement agreement. Packet Pg 107 9 DISCUSSION Background Ambient Communities has secured various rights of development including Vesting Tentative and Final Tract Map approvals for the construction of residential communities within the OASP area. They have acquired four projects in the area commonly referred to as “Righetti Ranch”, “Jones”, “Imel” and “Pratt(1)”. Ambient is undergoing final map review and approval, public and private infrastructure improvement plan review, and construction. See Attachment A for a vicinity map. As a part of the various approvals noted, Ambient Communities has been conditioned to complete a host of public infrastructure projects, including roadways, parks, pedestrian and bicycle paths, water and wastewater utilities, extension of recycled water services and other improvements to serve this developing neighborhood. These improvements are needed for the orderly development of the OASP area, and are consistent with the 2010 OASP, Final EIR and Public Facilities Financing Plans approved by City Council as a “blueprint” for development in this area. Since Ambient’s developments are “first in” and being constructed prior to other projects in the OASP area, Ambient has the burden of providing considerable backbone infrastructure to this area. Portions of this infrastructure also benefit and serve other future developments outside of the Ambient projects. Section 16.20.110 of the City’s Municipal Code provides for the possibility of reimbursement “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.” Infrastructure Financing An integral part of the OASP is a Public Facilities Financing Plan (PFFP) that outlines a strategy for the timely completion of public infrastructure and private improvements to serve the developing neighborhoods. The heart of the OASP PFFP strategy is based upon a “pay-as-you- go” philosophy rather than issuing debt to fund infrastructure, which is designed to balance the cost of mitigating infrastructure with the financial resources available from each new development. This strategy includes three (3) funding mechanisms to support implementation of these improvements: 1. An OASP PFFP Impact Fee that is collected from each development project to fund shared responsibility improvements consisting of backbone roadways, parks, pedestrian and bicycle paths that benefit all properties within the OASP; 2. Direct developer funding to complete project specific public and private infrastructure that is integrated into the overall improvements network but not needed for other development to occur; and, Packet Pg 108 9 3. In some cases, “first in” private developer advance financing of both PFFP and private infrastructure improvements that are to the partial or exclusive benefit of other OASP property owners. In the case of improvements completed by Ambient that benefit other property owners within the OASP, under their conditions of approval a “Reimbursement Agreement” can be pursued to ensure a “fair share” contribution back to Ambient is provided by those benefitting owners when they elect to develop their properties. Coordination of timing and cost-sharing arrangements for these improvements is particularly challenging. That challenge is a result of the lack of certainty regarding which property owners within the OASP may wish to pursue development of their respective properties, and how each property “fits into the whole” of the OASP infrastructure network. This “phasing” of infrastructure facility improvements was anticipated in the OASP and PFFP plans, and is essentially being taken to the next level of detailed implementation by this proposed Reimbursement Agreement action. Specific Proposals by Ambient Communities In the case of Ambient Communities, their initial phases include development of the Righetti Ranch, Jones and Imel properties. Infrastructure planning and engineering review has been active since their first subdivisions were approved in 2015. City approval of their final map and improvement plans is nearing completion. To meet their project conditions, and work within the PFFP “pay-as-you-go” philosophy, Ambient proposes the following financing plan to complete initial infrastructure investments: 1. Ambient will complete PFFP-identified roadway, parks and pathway infrastructure improvements as part of their initial construction. Impact fee credits will be made available to Ambient for the costs of these improvements applied to their share of the PFFP Impact Fees otherwise du e at building permit issuance; and 2. Reimbursements to Ambient from available PFFP impact funds paid by other OASP developments will occur as fees are collected and after prior obligations are retired. Said prior obligations include an existing reimbursement agreement approved by City Council on November 15, 2005, with Orcutt Associates, LLC for advancing roadway improvements to widen Orcutt Road from two to four lanes across the Union Pacific Railroad crossing and construct improvements at the intersection of Laurel Lane; and 3. For those eligible public infrastructure improvements not covered by the OASP PFFP, such as water, sewer and certain roadways, a “Reimbursement Agreement” that would allow the City to collect reimbursable costs from other benefitting owners when they choose to develop their land. Evaluation of Proposed Ambient Communities “Reimbursement Agreement” City staff worked with Ambient Communities to develop a Reimbursement Agreement (RA) subject to criteria established in the City Municipal Code. Ambient provided the supporting documentation identifying which infrastructure projects constructed by Ambient were outside the Packet Pg 109 9 PFFP and, in their view, benefitted other OASP property owners in whole or in part. Ambient also provided estimates of costs for the design, permitting and construction of this infrastructure, along with their initial take on how the costs of these improvements would be allocated to the other OASP properties. Over the past several months, staff has worked closely with Ambient to refine both the scope of these public infrastructure projects and the “fair share” allocation of benefit to other OASP properties. The result is a draft Resolution (Attachment B) and Reimbursement Agreement (Attachment C) for Council approval. Various components of the Reimbursement Agreement are summarized below. “Excess Public Improvements” This terminology has been used in the RA to identify those public improvements that are not otherwise covered by the PFFP infrastructure facility improvement program, and that could be subject to reimbursement from other OASP properties. Exhibit “A” of the RA is a summary of the eight (8) Excess Public Improvements that Ambient proposes to build “up front” with their projects and seeks partial reimbursements from the other owners as they develop their properties. The Excess Public Improvements are graphically shown on Attachment D of this agenda report. The benefitting properties and their respective densities and allocated infrastructure projects are noted graphically in Exhibit “B” of the RA. These improvements include off-site water main extensions to the OASP area (Projects 1a and 1b), internal public water mains, recycled water lines and sanitary sewer mains (Projects 2, 3 and 4) that would be constructed under roadways built by Ambient but that would connect to other properties (done to avoid having to cut open and repave the streets if these improvements were otherwise deferred) and Orcutt frontage road improvements (Projects 6a, 6b and 7). RA Term Pursuant to the SLO Municipal Code, the term of this RA will last 15 years. At the end of this term, the Agreement would expire and no further rights to reimbursement would be available to Ambient. Exhibit “A” Costs Are Estimates, to be Confirmed After Completion of Construction The estimates of costs for each of the eight (8) projects were developed by Ambient. The RA provides that following the completion of each eligible improvement, Ambient will provide proof of reimbursable costs and the City will be exclusively responsible for determining the final reimbursable costs for each improvement. The Director of Public Works will be empowered to implement the RA on behalf of the City. Decisions of the Director on reimbursable amounts will be considered final. Packet Pg 110 9 Bids to be Provided by Ambient Prior to Construction As a means of “checks and balances”, bids will be solicited by Ambient and submitted for review by the City prior to commencing construction of the Excess Public Improvements. This clause is intended to provide some assurance that the reimbursable costs listed on Exhibit “A” to the RA are reasonable, and that Ambient has secured non-collusive bids for the work. If there is significant variation between the bids secured by Ambient and their en gineer’s estimates as reflected in Exhibit “A,” revisions to Exhibit “A” will be considered by the Director and finalized prior to commencing construction on the reimbursement-eligible projects (Paragraph 8c). Collection of Reimbursements (Timing and Allocation per Unit) Reimbursement from benefitting properties will occur on a per unit basis through collection of reimbursable costs. The per-unit reimbursable amount is identified on Exhibit “A” of the RA and is based on the OASP densities established for each benefitting owner, except for the Taylor/Muick subdivision. The new owner of that particular subdivision is proposing to construct less units than originally planned, so Exhibit “A” has been revised to reflect their newly proposed unit count. Section 11 of the RA states that the City shall attempt to collect reimbursements from benefitting properties prior to the earlier of Final Map recordation or building permit issuance of the benefitting property, provided that the Excess Public Improvement is completed and all required documentation is submitted to verify the cost of the improvement. In the event that a benefitting owner elects to develop their property at lower density, Ambient may request that the City revise Exhibit “A” of the RA to redistribute the shortfall to other benefitting properties that have not yet developed. There is nothing in the RA that requires the City to revise Exhibit “A” and the City has indicated to Ambient that it will consider revisions to Exhibit “A” only sparingly. In the case where revisions are warranted, such as when the actual cost of the improvements varies significantly from the estimated cost or when a benefitting property develops a significantly more or less number of units than originally planned, then Section 4 of the RA gives the Public Works Director ultimate authority to determine any deviations from Exhibit “A”. City to be Reimbursed for Costs to Implement RA Ambient will reimburse the City for its costs to determine the reimbursable amount per Section 9 of the RA. Indemnification The City will be indemnified, defended and held harmless by Ambient for implementing this Agreement and will bear no cost or liability if it fails to collect funds or reimbursable costs from the benefitting properties. Packet Pg 111 9 Public Outreach Staff contacted all the affected property owners either by email or letter notifying them of the impending reimbursement agreement and the impacts on each property owner. As of June 8, 2017, staff has received input or questions from three property owners: Paul Fiala, Beverly Pratt and Andy Mangano of SLO Orcutt LLC (the developer of the Taylor/Muick subdivision Tract 3044). Mr. Fiala wanted confirmation that if he didn’t develop his property, then he wouldn’t have to pay any reimbursements. That assumption was confirmed by City staff. He also wanted to know what would happen if he didn’t develop but wanted to connect his existing house(s) to City domestic and recycled water. If that were the case, he would have to pay the per unit fair share cost to Ambient for whatever Excess Public Improvement he is utilizing, provided the RA has not yet expired. Mr. Mangano wanted assurances that the final reimbursable amount to be paid by his development would be based on the number of actual units being constructed, not on the number of units allowed in the tentative map approvals or in the OASP. Staff confirmed that the reimbursements would be collected on a per unit basis for the actual number of units being constructed. However, the per unit amount may be proportionally increased or decreased dependent upon the final cost of the Excess Public Improvements and revisions to number of units being proposed. Ms. Pratt, the owner of the Pratt(2) parcel, asked for and received additional clarification on how the costs were distributed. Like Mr. Mangano, she also wanted clarification that the amount paid would be based on the number of units actually constructed, not the overall percentage assigned to her property. CONCURRENCES The Public Works Department and Utilities Department concur with the recommended action. ENVIRONMENTAL REVIEW The Orcutt Area Specific Plan (OASP) and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. Implementation of the Public Facil ities Financing Plan (PFFP), including actions such as the appended “Infrastructure Reimbursement Agreement”, were anticipated as part of the approval of the OASP (see OASP Section 8 Public Facilities Financing) to secure needed infrastructure in supporting orderly growth in the OASP Planning Area. Further environmental review was performed with Mitigated Negative Declarations for the Righetti, Jones, Imel, and Taylor/Wingate subdivisions. Additional environmental review will be required for Pratt(1) when a development application is submitted. Approval of this Reimbursement Agreement would not result in any new environmental impacts that were not previously addressed in the certified OASP FEIR and subsequent tiered environmental documents. Therefore, no further environmental review is required for this action. Packet Pg 112 9 FISCAL IMPACT There is no financial impact to the City associated with adopting and implementing the Reimbursement Agreement. All costs to implement and indemnify shall be borne by Ambient. Pursuant to the Municipal Code, reimbursements shall be made only when the city collects money from the developers of new projects and failure or error by the city resulting in funds not being collected will not subject the city to any liability, obligation o r debt owed the original developer. ALTERNATIVES Continue Consideration of the Proposed Reimbursement Agreement Pending Additional Information Required. Council may elect to continue consideration of the Reimbursement Agreement in order to provide additional clarifications or information needed to render a decision. Should Council elect this alternative, direction should be provided to staff as to the additional information needed for Council consideration. Deny Approval of the Reimbursement Agreement. Council may elect not to approve the Reimbursement Agreement if findings are made that the RA is inconsistent with the conditions of approval for the Ambient tract map approvals, and/or the RA is inconsistent with San Luis Obispo’s Municipal Code regarding facilities and improvements benefitting adjacent properties and/or oversizing and excess facilities do not in fact benefit other parties. Therefore, denying approval of the Reimbursement Agreement is not a recommended alternative unless the required findings are made. Attachments: a - Vicinity and Ownership Map b - Resolution Approving Reimbursement Agreement c - Reimbursement Agreement d - Excess Public Improvements plat Packet Pg 113 9 Righetti Ranch Approved 2015 Imel Approved 2017 Jones Approved 2015 West Creek Approved 2016 Taylor- Muick Approved 2013 Packet Pg 114 9 R _____ RESOLUTION NO. (2017 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A REIMBURSEMENT AGREEMENT WITH AMBIENT COMMUNITIES FOR OFFSITE AND OVERSIZED PUBLIC IMPROVEMENTS ASSOCIATED WITH ORCUTT AREA SPECIFIC PLAN DEVELOPMENT PROJECTS WHEREAS, Ambient Communities, aka Righetti Ranch LP, a Delaware limited partnership, has made application for the approval of an “Infrastructure Reimbursement Agreement” concerning the development of residential projects in the Orcutt Area Specific Plan (OASP) Planning Area; and WHEREAS, Ambient Communities has secured various approvals to construct said residential communities subject to conditions of approval that require the orderly and timely completion of public infrastructure improvements to support growth within the OASP; and WHEREAS, there are certain public improvements associated with the Ambient projects that include public improvements that must be installed on adjacent properties and/or are greater in size and capacity than required to serve only the Ambient projects (“Excess Public Improvements”), thereby qualifying said Excess Public Improvements for reimbursement as set forth in San Luis Obispo Municipal Code Section 16.20.110; and WHEREAS, Ambient Communities has presented estimates of the costs to design, permit and construct said Excess Public Improvements, as well as detailed breakdowns of the adjacent and nearby properties that may benefit from the installation of the Excess Public Improvements; and WHEREAS, the approval of a Reimbursement Agreement will assist in the orderly and timely completion of public infrastructure within the developing Orcutt Area Specific Plan. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The “Infrastructure Reimbursement Agreement” is hereby approved, and the Mayor is authorized to approve minor revisions and execute said Agreement on behalf of the City. SECTION 2. The Public Works Director is authorized to administer and implement the “Infrastructure 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. SECTION 4. Environmental Review. The Orcutt Area Specific Plan (OASP) and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. Implementation of the Public Facilities Financing Plan (PFFP), including actions such as the appended “Infrastructure Reimbursement Agreement”, were anticipated as part of the approval of the OASP (see OASP Section 8 Public Facilities Financing) to secure needed infrastructure in supporting orderly growth in the OASP Planning Area. Further environmental review was Packet Pg 115 9 Resolution No. (2017 Series) Page 2 R _____ performed with Mitigated Negative Declarations for the Righetti, Jones, Imel, and Taylor/Wingate subdivisions. Additional environmental review will be required for Pratt(1) when a development application is submitted. Approval of this Reimbursement Agreement would not result in any new environmental impacts that were not previously addressed in the certified OASP FEIR and subsequent tiered environmental documents. Therefore, no further environmental review is required for this action. Upon motion of _______________________, seconded by ________________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ______ day of _______________ 2017. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher 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, this ______ day of ______________, _________. ____________________________________ Carrie Gallagher City Clerk Packet Pg 116 9 1 INFRASTRUCTURE REIMBURSEMENT AGREEMENT (Righetti Ranch and Jones Ranch-Vesting Tentative Maps 3063 and 3066) This Infrastructure Reimbursement Agreement ("Agreement") is entered into this _____ day of ________, 2017 (the "Effective Date"), by and between the City of San Luis Obispo, a municipal corporation and charter city ("CITY") and Righetti Ranch L.P., a Delaware limited partnership ("DEVELOPER"). The CITY and DEVELOPER are sometimes hereinafter referred to individually as a "party" and collectively as "parties." RECITALS WHEREAS, DEVELOPER is currently developing a residential project in the City of San Luis Obispo, California, pursuant to approved Vesting Tentative Tract Map 3063 for property known as the "Righetti Ranch", and approved Vesting Tentative Map 3066, for property known as the "Jones Ranch." The development of both the Righetti Ranch and Jones Ranch are jointly referred to hereinafter as the "Project"; and WHEREAS, the Project is subject to various City requirements and conditions of approval, including but not limited to, those of the Vesting Tentative Maps, the Orcutt Area Specific Plan ("Specific Plan") and the Specific Plan's Final Environmental Impact Report ("FEIR"); and WHEREAS, some of the conditions of approval of the Project require DEVELOPER to install certain street, water, wastewater and other public infrastructure improvements ("Public Improvements"); and WHEREAS, in order to develop the Project, and to connect to existing CITY infrastructure, some of the Public Improvements are required to be installed adjacent to property other than that being developed by DEVELOPER or in greater size or capacity than that required for the development of the Project ("Excess Public Improvements"), and may be eligible for reimbursement under San Luis Obispo Municipal Code ("SLOMC") Section 16.20.110; and WHEREAS, CITY and DEVELOPER wish to identify the Excess Public Improvements that may be eligible for reimbursement and their estimated costs ("Reimbursable Costs"); identify the properties that are not within the Project site development area that benefit from the Excess Public Improvements (individually a "Benefitted Property" and collectively "Benefitted Properties") and each property's prorated share of the Public Improvement costs, and define the respective rights and obligations of the parties under this Agreement; and WHEREAS, DEVELOPER is paying for the construction and/or installation of the Public Improvements, with the development of the Project. DEVELOPER is eligible to be reimbursed for the Reimbursable Costs, to the extent and on the terms and conditions set forth in this Agreement. Packet Pg 117 9 2 AGREEMENT Subject to the terms and conditions set forth below, the parties agree as follows: 1. Recitals. The above recitals are true and correct. The recitals set forth above, and all defined terms set forth in such recitals and in the preamble preceding the recitals, are hereby incorporated into this Agreement as though set forth in full. 2. Term. This Agreement shall expire fifteen (15) years from date of execution. After such expiration, all of the rights of DEVELOPER shall be null and void and DEVELOPER shall have no further right to reimbursement for any Reimbursable Costs or interest. 3. Construction of Public Improvements. DEVELOPER shall construct the Public Improvements to CITY's satisfaction pursuant to all CITY standard specifications and rules and regulations and per the approved plans, and any approved alterations thereto, on file at the CITY. CITY shall issue to DEVELOPER an encroachment permit for any Public Improvements occurring within the CITY's right of way subject to reasonable terms and conditions. Through the execution of this Agreement, the Parties have identified the Public Improvements and the estimated costs that are subject to reimbursement, the designated Benefitted Properties (as defined below) and each Benefitted Properties' prorated share of the documented Reimbursable Costs, as specified in Exhibit "A," discussed below in Section 4 of this Agreement. 4. Reimbursable Costs. The Excess Public Improvements and each of the Benefitted Properties’ prorated share of related Reimbursable Costs are shown on Exhibit "A," attached and incorporated by this reference. The prorated shares and Reimbursable Costs are estimates prepared by DEVELOPER's engineer. The actual amount that DEVELOPER shall be reimbursed for will be determined in accordance with Section 8 and this Section. Reimbursable Costs also shall include (i) DEVELOPER's reasonable out-of-pocket costs incurred in acquiring off-site interests of property needed to construct the Excess Public Improvements, including the fair market value of the acquired property and associated reasonable closing costs, but shall not include any charges for time incurred by anyone on DEVELOPER's behalf. These costs are subject to approval by the City prior to final acquisition expense; and (ii) Costs DEVELOPER is required to pay and pays CITY for processing and approving all plans, designs and specifications of the Excess Public Improvements, including all permitting costs; and (iii) CITY's costs specified in Section 9 of this Agreement. Each of the Benefitted Properties' prorated share of the Reimbursable Costs is subject to further review and approval by the CITY's Director of Public Works ("Director") at any time prior to collection. If the Director issues a determination or approval which deviates from Exhibit "A", the Director shall attempt to meet and confer with DEVELOPER in an attempt for the Parties to mutually agree to such deviations from Exhibit "A." If the Parties cannot agree to such deviations within thirty (30) days of the Director's invitation to meet and confer, the Director shall have ultimate authority to determine any deviation from Exhibit "A." Packet Pg 118 9 3 5. Benefitted Properties. CITY and DEVELOPER agree that the Excess Public Improvements significantly benefit the Benefitted Properties. The Benefitted Properties are deemed to be any and all parcels of land that lie within the Reimbursement Area shown on Exhibit "B." 6. Reimbursement/Withholding in Event of Protest/Offset. a. Subject to the terms and conditions hereof, CITY will in good faith attempt to collect from the Benefitted Properties a prorated share of the documented Reimbursable Costs, as shown on Exhibit "A", or as otherwise determined by the Director in accordance with Section 4. CITY shall not be required to reimburse more money than it actually collects. Failure or error by CITY to collect funds or Reimbursable Costs will not subject CITY to any liability, obligation, or debt to DEVELOPER, its successors or assigns. Notwithstanding the foregoing, subject to the provisions of Section 6(b) and (c) of this Agreement, CITY shall reimburse DEVELOPER pursuant to the terms of this Agreement for all funds or Reimbursable Costs actually collected by the CITY. If CITY does not reimburse DEVELOPER after CITY collects such payments from the owners or developers of Benefitted Properties, DEVELOPER shall be entitled to exercise all legal remedies. b. If any owner or developer of one or more of the Benefitted Properties pays all or a portion of the Reimbursement Costs under protest, CITY shall not be required to make reimbursements under this Agreement until the limitation period for instituting court action to seek a refund of such funds paid under protest has passed, and no court action ("Action") has been instituted. If an Action is instituted seeking refund of funds paid under protest, or to prevent CITY from collecting such funds, or challenging any provision of this Agreement, CITY shall not pay over such funds to DEVELOPER until the Action has been finalized and the authority of CITY to collect such funds and reimburse DEVELOPER has been sustained. CITY shall promptly notify DEVELOPER in writing of the Action. CITY shall reasonably support DEVELOPER's efforts to participate as a party to the Action, to defend the Action or settle the Action. Furthermore, CITY shall have the right to turn over the defense of the Action to DEVELOPER. If, within fifteen (15) days of CITY mailing a notice in compliance with Section 18 below requesting that DEVELOPER defend the Action, DEVELOPER fails to undertake the defense of the Action at DEVELOPER's sole cost and expense, CITY may stipulate to return of the funds so paid under protest, to cease collecting such funds, or enter into any other settlement of the Action acceptable to CITY and DEVELOPER shall lose any right to reimbursement under this Agreement of the amount contested in the Action. DEVELOPER shall reimburse CITY for its costs and attorneys' fees incurred in defense of the Action, including reasonable payment for legal services performed by the CITY's City Attorney, and for any liability CITY incurred in the Action, and such costs, fees and liability shall not be Reimbursable Costs. In addition, if CITY fails to impose a requirement upon development projects proposed by owners or developers of the Benefitted Properties, to pay their respective prorated share of the Reimbursable Costs, as specified in Exhibit "A" or as determined by the Director under Section 4 of this Agreement, or fails to collect such funds, DEVELOPER Packet Pg 119 9 4 may exercise all of its legal rights to attempt to collect such funds from the Benefitted Properties, which legal rights shall not be interpreted to include an action against the CITY. In the event DEVELOPER attempts to collect such funds from the Benefitted Properties, CITY shall assign to DEVELOPER all of its rights to collect such funds under this Agreement. c. Offset. CITY reserves the right to offset any Reimbursable Costs it collects against any unpaid fees, debts or obligations of DEVELOPER to CITY. CITY shall provide DEVELOPER with notice, in accordance with Section 18, of CITY's intent to offset any collected Reimbursable Costs against unpaid fees, debts or obligations described in the notice, and provide DEVELOPER with a reasonable opportunity to cure. 7. Bids for Installation of Public Improvements. In order to assure the Benefitted Properties that the costs of construction of the Excess Public Improvements are reasonable, prior to commencing construction of the Public Improvements, DEVELOPER shall obtain at least three (3) non-collusive bids for construction of the Public Improvements, and provide copies to CITY. DEVELOPER is not required to accept any particular bid. However, when DEVELOPER provides CITY with evidence of actual costs under Section 8, DEVELOPER must justify to CITY's reasonable satisfaction the selection of one of the higher bids if the difference between the bids is substantial and/or above the engineer's estimate set forth in Exhibit "A." As part of the bid packages both contractor and DEVELOPER shall provide Non-Collusion Affidavits in a form approved by the City Attorney. 8. Proof and Due Date of Reimbursable Costs. a. DEVELOPER shall provide CITY with evidence of the actual costs of each of the Public Improvements in the form of receipted bills, canceled checks, and contracts. All invoices or other documentation requested by CITY to confirm DEVELOPER's actual costs of the Public Improvements shall be submitted to CITY within sixty (60) days of the CITY's acceptance of the respective Public Improvement. Approval of Reimbursement Costs may occur in phases as projects are accepted by CITY. Failure to timely submit evidence shall void this Agreement with respect to that portion of the Public Improvements for which documentation is not timely filed. b. Failure to submit evidence sufficient to enable CITY to determine that costs were properly allocated to a specific Public Improvement shall void DEVELOPER's right to reimbursement for that Public Improvement. DEVELOPER shall be deemed to have failed to submit sufficient evidence if, as soon as reasonably possible after DEVELOPER's original timely submission of evidence, CITY notifies DEVELOPER, in writing, that the documentation submitted is inadequate, and after CITY provides such written notice, DEVELOPER thereafter fails to respond to such notice within sixty (60) days. If DEVELOPER complies with the deadlines specified in this Section 8(b), such a process shall be repeated until CITY determines it has adequate documentation to reimburse DEVELOPER or DEVELOPER has no new documentation to provide to CITY. Packet Pg 120 9 5 c. Regardless of DEVELOPER's claimed costs incurred in constructing the Excess Public Improvements, CITY has the authority, through its Director or designee, in the exercise of his or her reasonable discretion, to determine the amount subject to possible reimbursement for each Excess Public Improvement. The purpose of this provision is to prevent unrelated, unjustified, unreasonable or excess costs from being passed on to the Benefitted Properties, and to ensure that DEVELOPER exercises reasonable control over costs of construction. If the Director disapproves any of DEVELOPER's claimed costs, the Director shall attempt to meet and confer with DEVELOPER to resolve the dispute. If the Parties cannot resolve the dispute within thirty (30) days of the Director's invitation to meet and confer, the Director shall have ultimate authority to determine the amount subject to possible reimbursement. 9. Payment of City Costs to Determine Reimbursable Amount. DEVELOPER shall reimburse CITY for CITY's actual costs incurred in determining the amount subject to possible reimbursement, including time and materials. Time/labor costs shall include benefits. 10. Reduction of Reimbursable Costs by Other Reimbursements. DEVELOPER may enter into agreements with other property owners or developers of the Benefitted Properties or others, addressing DEVELOPER's right to reimbursement resulting from DEVELOPER's oversizing or construction of Public Improvements that will benefit development of those other properties. To the extent DEVELOPER enters into such agreements or receives payment or consideration from others for costs that are otherwise "Reimbursable Costs" under this Agreement, such payments or consideration will be credited against the Reimbursable Costs otherwise due DEVELOPER under this Agreement. Notwithstanding the foregoing, DEVELOPER has no obligation to attempt to pursue reimbursement from other property owners or developers of the Benefitted Properties. 11. Timing of Reimbursement/Payment/Interest. Contingent upon completion and CITY's acceptance of the Public Improvements, and DEVELOPER's timely submission and CITY's approval of all invoices or other documentation as set forth in Section 8 above, and subject to Section 6, CITY shall attempt to collect from each of the Benefitted Properties, prior to the earlier of Final Map recordation or building permit issuance, its respective prorated share of the Reimbursement Costs, plus interest at two percent (2%) per year from the date the CITY accepts the Public Improvement subject to reimbursement under this Agreement. Any amount of Reimbursement Costs CITY collects shall be sent to DEVELOPER within thirty (30) days of receipt, subject to the provisions of Section 6. a. All reimbursements shall be by check or warrant made payable to: Righetti Ranch L.P. and mailed to: 179 Calle Magdalena, #201, Encinitas, CA 92024. 12. Indemnification. DEVELOPER agrees to indemnify, defend and hold CITY, its officials, agents, employees and contractors, harmless from any expense, liability or claim for death, injury, loss, damage or expense to persons or property which may arise or is any way related to: DEVELOPER's design or construction of the Public Improvements; or DEVELOPER's performance under this Agreement, or that of its contractors or agents; or Packet Pg 121 9 6 from DEVELOPER's failure to pay prevailing wages for the construction of the Public Improvements or comply with applicable provisions of the Labor Code; or any litigation or Action under Section 6 or Section 7. Notwithstanding the foregoing, DEVELOPER shall have no duty to indemnify CITY for any expense, liability or claim for death, injury, loss, damage or expense to persons or property which may arise from the sole negligence or willful misconduct of CITY, officials, agents, employees and contractors. DEVELOPER's indemnity obligations of this Section 12 shall expire at different times and may extend beyond expiration or termination of this Agreement. With regard to the construction of a specific Public Improvement, the indemnity obligation shall expire one (1) year after CITY's acceptance of that Public Improvement; provided, if CITY requests DEVELOPER to repair or replace any portion of a Public Improvement within one year of acceptance, DEVELOPER's indemnity obligation relating to the repaired or replaced portion of the Public Improvement shall extend for one (1) year commencing from date of the City’s acceptance of the repair or replacement. The Parties anticipate that DEVELOPER may construct, and CITY may accept, the Public Improvements, in multiple phases, at different times and that the indemnity obligations under this section may be staggered. With regard to any lawsuit or claim filed under Sections 6, 7 or 13, the indemnity obligation with regard to any such lawsuit(s) or claim(s)shall extend until final resolution of the lawsuit(s)or claim(s) and satisfaction of City’s related liability, loss and expense. 13. Labor laws and Prevailing Wages. DEVELOPER shall comply with and adhere to all applicable labor laws, which may include payment of prevailing wages, nondiscrimination, payroll records, apprentices, etc. It shall be DEVELOPER's responsibility to determine the applicability of prevailing wage and other Labor Code provisions to DEVELOPER's construction of the Public Improvements. DEVELOPER assumes all financial responsibility for adverse prevailing wage actions or determinations. 14. Entire Agreement/Amendment. This Agreement represents the entire integrated agreement between the CITY and DEVELOPER regarding reimbursement for the Excess Public Improvements, and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by a written instrument signed by both CITY and DEVELOPER. 15. Governing Law and Venue. The interpretation and implementation of this Agreement shall be governed by the law of California, except for those provisions preempted by federal law. However, the laws of the State of California shall not be applied to the extent that they would require or allow the court to use the laws of another state or jurisdiction. The parties agree that all actions or proceeding arising out of or relating to the Agreement shall be tried and litigated only in the County of San Luis Obispo or the United States District Court for the Central District of California. 16. Severability. Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants, conditions, restrictions, or provisions hereof, or the application thereof to any other person or entity, and the same shall remain in full force and effect. Packet Pg 122 9 7 17. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 18. Notices. All notices, demands, invoices, or written communications to the parties required or permitted hereunder shall be in writing and delivered personally or by U.S. mail, postage prepaid, to the following addresses or such other address as the parties may designate in accordance with this section: CITY Director Public Works 919 Palm Street San Luis Obispo, CA 93401 With a copy to: City Attorney 990 Palm Street San Luis Obispo, CA 93401 DEVELOPER Righetti Ranch, L.P. 979 Osos Street, Suite E San Luis Obispo, CA 93401 Attn: Travis Fuentez Phone: (805) 573-0401 Ambient Communities 179 Calle Magdalena, Suite 201 Encinitas, CA 92024 Attn: Rob Anselmo Phone: (619) 890-2349 With a copy to: Allen Matkins 1900 Main Street, 5th Floor Irvine, CA 92614 Attn: John Condas Phone: (949) 851-5551 19. Interpretation/Ambiguity. This Agreement was negotiated by the Parties, with the advice and assistance of their respective counsel, and shall not be construed in favor of or against either Party, regardless of who may have drafted it or any of its terms. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. 20. Assignment. DEVELOPER shall not assign, transfer or convey any of its rights, duties or obligations under this Agreement without the prior written approval of CITY. CITY shall not unreasonably withhold approval of any assignment. Any other assignment shall be null and void. Packet Pg 123 9 8 21. Authority to Execute. Both CITY and DEVELOPER do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. [Signatures on following page] Packet Pg 124 9 9 IN WITNESS WHEREOF, the parties have executed this Agreement as of the first date written above. ATTEST: ______________________________ Carrie Gallagher, City Clerk APPROVED AS TO FORM: ________________________________ J. Christine Dietrick, City Attorney CITY OF SAN LUIS OBISPO, a municipal corporation and charter city _____________________________ Heidi Harmon, Mayor DEVELOPER Righetti Ranch, LP A Delaware Limited partnership By: NRE Manager, LLC, a Delaware limited liability company Its: General Partner By: Ambient Righetti Manager, LLC, A California limited liability company Its: Sole member By: ____________________________ Travis Fuentez, President By: ____________________________ Dante Anselmo, Vice-President APPROVED AS TO FORM FOR DEVELOPER ____________________________ Packet Pg 125 9 RighettiRanchReimbursementAgreementExhibitA6Ͳ7Ͳ2017ImprovementsEligibleforReimbursement1a)OffsitewaterlinefronCedartoOrcuttRoad.Includespressurereducingvaultandrequiredtelemtryperapprovedplans.Reconnectexistingservicesalongrouteandabandonexistingwatermain.707,198.02$AmbientTaylor/MuickFarrior/Hall/Fiala/WestCreek/Garay792 Population 1747404,771$57.2%18,061$2.6% 144,527$20.4%44,819$6.3%95,019$13.4%1b)OffsitewaterlinefromJohnsonRoadtoTiburon.Includessawcutexistingroadtoinstallnewwaterlineperapprovedplans.340,202.19$AmbientTaylor/MuickFarrior/Hall/Fiala,Garay575 Population 1390244,733$71.9%10,920$3.2%27,099$8.0%57,451$16.9%2)WaterMaininRanchHouseRoadtoSponza70,740.35$Jones/Pratt(1)Taylor/MuickPratt(2)/Evans/Anderson470 Population 902 18,051$25.5% 34,289$48.5% 18,400$26.0%3)RecycledWaterMainalongRighettiRanchRoadfromTankFarmtoTiburon/AlongTiburonfromRighettiRanchRoadtoRanchHouseRoad/AlongRanchHouseRoadtoSponza(Note:InteriorRWlinecostwithinParktobepaidthroughPFFP)475,934.29$3063Phase1&2,Jones/Imel/Pratt(1&2)/Taylor/Muick/Farrior/Hall/FialaWestCreek/Evans/Anderson682RecycledWaterdeliverydemandingpm163204,652$43.0%23,797$5.0%80,909$17.0% 114,224$24.0%52,353$11.0%4)SanitarySewerMainlineinRanchHouseRoadfromTiburontoSponza.58,368.46$Taylor/Muick110 Population 23558,368$100%5)IntentionallyLeftBlank6a)Phase1ͲOrcuttRoadEastsideStreetimprovementsfromFialaPropertytoGarayPropertytaper.ToincludelefthandturnlaneatTiburon,culvertextensions,utilityrelocations,stormdraintreatmentfacilitiesandotherimprovementspertheapprovedplans574,457.25$3063Phase2Pratt(1)/Jones/ImelTaylor/Muick367AverageDailyTrips2799 401,294$69.9%173,163$30.1%6b)Phase3ͲOrcuttRoadEastsideStreetimprovementsfromGarayPropertytapertoHansenLane.Toincludecenterturnlane,culvertextensions,utilityrelocations,stormdraintreatmentfacilitiesandotherimprovementspertheapprovedplans770,592.44$3063Phase3/Garay79AverageDailyTrips718331,647$43.0%438,945$57.0%7)OrcuttRoadWestsideStreetImprovementalongGarayFrontage.Improvementstoincludeculvertextensions,utilityrelocation,stormdraintreatmentfacilitiesandotherimprovementspertheapprovedplansforthissectionofwork.365,245.63$Garay45Frontage 100%Frontage365,246$100%TotalReimbursements3,362,739$Ͳ $1,605,148$52,778$Ͳ$225,436$Ͳ$148,514$876,109$454,754$AllocationofCostPerResidentialUnitTypeByBenefitingPropertyUnitCountSFRMFRTotalPopulation*ADT**SFRShare(303dus)SFRShare(4dus)SFRShare(67dus) SFRShare(0dus) SFRShare(45dus) SFRShare(53dus)Tract3063(Righetti)Phase1(Ambient) 15115137113731,205,176.06$11,540.86$104,079.44$Ͳ$876,108.70$284,972.62$Tract3063(Righetti)Phase2(Ambient) 8732119273994Tract3063(Righetti)Phase3(Ambient) 343484309 CostPerSFRCostPerSFRCostPerSFRCostPerSFRCostPerSFRCostPerSFRTract3066(Jones)Phase1(Ambient) 1452661304573,977.48$2,885.21$1,553.42$Ͳ$19,469.08$5,376.84$Tract3095(Imel)(Ambient) 171742155Pratt1(APN053Ͳ061Ͳ024)(Ambient)5555101349Pratt2(APN076Ͳ481Ͳ007),Evans,Anderson2392394371518 MFRShare(139dus)MFRShare(19dus) MFRShare(105dus) MFRShare(239dus) MFRShare(0dus) MFRShare(57dus)Tract3083WestCreek 671051723571276399,738.09$40,780.04$121,337.60$148,513.67$Ͳ$169,846.26$Farrior,Hall191935121Taylor/Muick(ManganoProposedProject6Ͳ2Ͳ2017) 5357110235844 CostPerMFRCostPerMFRCostPerMFRCostPerMFRCostPerMFRCostPerMFRGaray 45451114092,875.81$2,146.32$1,155.60$621.40$Ͳ$2,979.76$Fiala 441036472559103121847840TotalShareTotalShareTotalShareTotalShareTotalShareTotalShare1,604,914$52,321$225,417$148,514$876,109$454,819$TableNotes(Source:OrcuttAreaSpecificPlanPublicFacilitiesFinancingPlan,2016):TotalSharebyAmbientFarrior/Hall,FialaWestCreekPratt2,Evans,GarayTaylorͲMuick*Population=2.46residents/SFR=1.83residents/MFRGPM=gallonsperminuteAnderson**ADTͲAverageDailyTrips(vehicles)=9.09/SFR=6.35/MFRSFR=singlefamilyresidential;MFR=multiͲfamilyresidentialdus=dwellingunitssomevariationincalculationsduetoroundingTotalBenefitUnitsbyTypeMangano(Taylor/Muick)Ambient(RighettiͲTM#3063/JonesͲTM#3066/ImelͲTM#3095)/Pratt(1)Population=1000ADT=3637GPM=70Pop.=45ADT=157GPMͲ8%Share%SharePop.=111ADT=409GPM=0BenefitingParcelsTotalApprovedorOASPAssignedUnitCountsEstimatedCost(fromattacheddetailedbreakdowns)BenefitingPropertieswithintheOASP(PropertySharebasedonPopulation,RecycledWaterFlowProjectionsorADTPercentage)Pratt(2),Evans,AndersonPop.=437ADT=1518GPM=39%ShareWestCreekPop.=357ADT=1276GPM=28%SharePop.=235ADT=844GPM=18%Share%ShareFarrior/Hall,FialaGarayMethodofAssigningBenefitbyTypeExhibit A Packet Pg 1269 Reimbursable Improvement 1a - Waterline Cedar Court to Orcutt Rd Offsite Waterline Construction Fee Estimate Item Description Quantity Unit Unit Cost Total Water System Mobilization 1 LS 12,500.00 12,500 Traffic Control 1 LS 30,000.00 30,000 1 6" PVC Water Line 62 LF 50.00 3,100 2 8" PVC Water Line LF 104.00 - 3 12" PVC Water Line 800 LF 165.00 132,000 4 8" Ductile Iron Pipe LF 114.00 - 5 12" Ductile Iron Pipe 8 LF 165.00 1,320 6 2" Blowoff Assembly 1 EA 3,200.00 3,200 7 2" Air Relief Valve EA 3,975.00 - 8 Connect to Existing Laterals 6 EA 2,000.00 12,000 9 Gate Valve (6")6 EA 1,300.00 7,800 10 Gate Valve (8")3 EA 1,500.00 4,500 11 Gate Valve (12")13 EA 3,500.00 45,500 12 Thrust Block (6")2 EA 250.00 500 13 Thrust Block (8")3 EA 385.00 1,155 14 Thrust Block (12")9 EA 714.00 6,426 15 4" Warf Head 1 EA 1,000.00 1,000 16 Fire Hydrant 2 EA 8,510.00 17,020 17 Connect to Existing System 3 LS 5,000.00 15,000 18 Waterline Under Crossing 1 LS 5,000.00 5,000 19 CLA VAL 2 EA 3,000.00 6,000 20 Victaulic Couplings 4 EA 300.00 1,200 21 12"x8" Reducer 2 EA 2,000.00 4,000 22 Pipe Support 4 EA 500.00 2,000 23 PRV and Concrete Vault 1 EA 50,000.00 50,000 24 Saw Cut Asphalt Concrete 1,724 LF 2.17 3,741 25 Trench Patch 2,586 SF 4.00 10,344 26 Restore Traffic Striping 1 LS 10,000.00 10,000 PRV Telemetry 1 Telemetry 1 LS 110,000.00 110,000 Sub Total 495,306 Design & Consultants 15.0%74,296 Plan Check 1.9%9,411 Inspection 12.9%63,894 Sub Total 642,907 Contingency 10.0%64,291 Total 707,198 Exhibit A Packet Pg 127 9 Reimbursable Improvement 1b - Waterline Johnson Rd to Tiburon Rd Offsite Waterline Construction Fee Estimate Item Description Quantity Unit Unit Cost Total Water System Mobilization 1 LS 12,500.00 12,500 Traffic Control 1 LS 30,000.00 30,000 1 6" PVC Water Line LF 50.00 - 2 8" PVC Water Line 1,280 LF 104.00 133,120 3 12" PVC Water Line LF 165.00 - 4 8" Ductile Iron Pipe LF 114.00 - 5 12" Ductile Iron Pipe LF 165.00 - 6 2" Blowoff Assembly 1 EA 3,200.00 3,200 7 2" Air Relief Valve 1 EA 3,975.00 3,975 8 Connect to Existing Laterals EA 2,000.00 - 9 Gate Valve (6")EA 1,300.00 - 10 Gate Valve (8")4 EA 1,500.00 6,000 11 Gate Valve (12")EA 3,500.00 - 12 Thrust Block (6")EA 250.00 - 13 Thrust Block (8")4 EA 385.00 1,540 14 Thrust Block (12")EA 714.00 - 15 4" Warf Head EA 1,000.00 - 16 Fire Hydrant 2 EA 8,510.00 17,020 17 Connect to Existing System LS 5,000.00 - 18 Waterline Under Crossing LS 5,000.00 - 19 CLA VAL EA 3,000.00 - 20 Victaulic Couplings EA 300.00 - 21 12"x8" Reducer EA 2,000.00 - 22 Pipe Support EA 500.00 - 23 Concrete Vault EA 9,000.00 - 24 Saw Cut Asphalt Concrete 2,560 LF 2.17 5,555 25 Trench Patch 3,840 SF 4.00 15,360 26 Restore Traffic Striping 1 LS 10,000.00 10,000 PRV Telemetry 1 Telemetry 1 LS - Sub Total 238,270 Design & Consultants 15.0%35,741 Plan Check 1.9%4,527 Inspection 12.9%30,737 Sub Total 309,275 Contingency 10.0%30,927 Total 340,202 Exhibit A Packet Pg 128 9 Reimbursable Improvement 2 - Water Main Ranch House Rd to Sponza Rd Waterline Construction Fee Estimate Item Description Quantity Unit Unit Cost Total Water System Mobilization 0.50 LS 12,500.00 6,250 Traffic Control 0.00 LS 30,000.00 - 1 6" PVC Water Line 0.00 LF 50.00 - 2 8" PVC Water Line 465.00 LF 45.00 20,925 3 12" PVC Water Line 0.00 LF 165.00 - 4 8" Ductile Iron Pipe 0.00 LF 114.00 - 5 12" Ductile Iron Pipe 0.00 LF 165.00 - 6 2" Blowoff Assembly 1.00 EA 3,200.00 3,200 7 2" Air Relief Valve 1.00 EA 3,975.00 3,975 8 Connect to Existing Laterals 0.00 EA 2,000.00 - 9 Gate Valve (6")0.00 EA 1,300.00 - 10 Gate Valve (8")5.00 EA 1,500.00 7,500 11 Gate Valve (12")0.00 EA 3,500.00 - 12 Thrust Block (6")0.00 EA 250.00 - 13 Thrust Block (8")7.00 EA 385.00 2,695 14 Thrust Block (12")0.00 EA 714.00 - 15 4" Warf Head 0.00 EA 1,000.00 - 16 Fire Hydrant 0.00 EA 8,510.00 - 17 Connect to Existing System 1.00 LS 5,000.00 5,000 18 Waterline Under Crossing 0.00 LS 5,000.00 - 19 CLA VAL 0.00 EA 3,000.00 - 20 Victaulic Couplings 0.00 EA 300.00 - 21 12"x8" Reducer 0.00 EA 2,000.00 - 22 Pipe Support 0.00 EA 500.00 - 23 Concrete Vault 0.00 EA 50,000.00 - 24 Saw Cut Asphalt Concrete 0.00 LF 2.17 - 25 Trench Patch 0.00 SF 4.00 - 26 Restore Traffic Striping 0.00 LS 10,000.00 - PRV Telemetry 1 Telemetry 0.00 LS 61,000.00 - Sub Total 49,545 Design & Consultants 15.0%7,432 Plan Check 1.9%941 Inspection 12.9%6,391 Sub Total 64,309 Contingency 10.0%6,431 Total 70,740 Exhibit A Packet Pg 129 9 Reimbursable Improvement 3 - Recycled Water Main Tank Farm to Sponza to Ranch House Rd Reclaimed Waterline Construction Fee Estimate Item Description Quantity Unit Unit Cost Total Water System Mobilization 0.50 LS 12,500.00 6,250 Traffic Control 0.20 LS 30,000.00 6,000 1 6" PVC Water Line 0.00 LF 50.00 - 2 8" PVC Water Line 0.00 LF 104.00 - 3 12" PVC Water Line 0.00 LF 165.00 - 4 8" Ductile Iron Pipe 2,471.00 LF 114.00 281,694 5 12" Ductile Iron Pipe 0.00 LF 165.00 - 6 2" Blowoff Assembly 2.00 EA 3,200.00 6,400 7 2" Air Relief Valve 2.00 EA 3,975.00 7,950 8 Connect to Laterals 4.00 EA 2,000.00 8,000 9 Gate Valve (6")0.00 EA 1,300.00 - 10 Gate Valve (8")5.00 EA 1,500.00 7,500 11 Gate Valve (12")0.00 EA 3,500.00 - 12 Thrust Block (6")0.00 EA 250.00 - 13 Thrust Block (8")4.00 EA 385.00 1,540 14 Thrust Block (12")0.00 EA 714.00 - 15 4" Warf Head 1.00 EA 1,000.00 1,000 16 Fire Hydrant 0.00 EA 8,510.00 - 17 Connect to Existing System 1.00 LS 5,000.00 5,000 18 Waterline Under Crossing 0.00 LS 5,000.00 - 19 CLA VAL 0.00 EA 3,000.00 - 20 Victaulic Couplings 0.00 EA 300.00 - 21 12"x8" Reducer 0.00 EA 2,000.00 - 22 Pipe Support 4.00 EA 500.00 2,000 23 Concrete Vault 0.00 EA 50,000.00 - 24 Saw Cut Asphalt Concrete 0.00 LF 2.17 - 25 Trench Patch 0.00 SF 4.00 - 26 Restore Traffic Striping 0.00 LS 10,000.00 - PRV Telemetry 1 Telemetry 0.00 LS 61,000.00 - Sub Total 333,334 Design & Consultants 15.0%50,000 Plan Check 1.9%6,333 Inspection 12.9%43,000 Sub Total 432,668 Contingency 10.0%43,267 Total 475,934 Notes: Interior RW lines within Park ($49,367) Funded Through PFFP Method of assigning benefit is based on Utilities Department estimates of total recycled water demands for each property, translated into a gallons-per-minute delivery demand. OASP parklands costs are prorated by demand estimates below to each property. The total demand by property is then pro-rated to reflect respective shares of total cost. Ambient = 35 gpm demand estimate 43% of total demands $204,651.62 Farrior/Hall, Fiala = 4 gpm 5%$23,796.70 West Creek = 14 gpm 17%$80,908.78 Pratt 2, Evans, Anderson = 20 gpm 24%$114,224.16 Taylor-Muick = 9 gpm 11%$52,352.74 Exhibit A Packet Pg 130 9 Reimbursable Improvement 4 - Sanitary Sewer in Ranch House Rd from Tiburon to Sponza Sanitary Sewer Item Description Quantity Unit Unit Cost Total Sewer System Mobilization 0.20 LS 25,000.00 5,000 Traffic Control 0.00 LS 60,000.00 - 1 8" HDPE 490.00 LF 32.00 15,680 2 10" HDPE 0.00 LF 35.00 - 3 12" HDPE 0.00 LF 52.00 - 4 Manhole 2.00 EA 3,600.00 7,200 5 Mahole Deep 2.00 EA 4,500.00 9,000 6 Manhole Rock 0.00 EA 5,000.00 - 17 Connect to Existing System 1.00 LS 2,000.00 2,000 24 Saw Cut Asphalt Concrete 0.00 LF 2.17 - 25 Trench Patch 0.00 SF 4.00 - 26 Install future stub 2.00 EA 1,000.00 2,000 27 Restore Traffic Striping 0.00 LS 6,000.00 - Sub Total 40,880 Design & Consultants 15.0%6,132 Plan Check 1.9%777 Inspection 12.9%5,274 Sub Total 53,062 Contingency 10.0%5,306 Total 58,368 Exhibit A Packet Pg 131 9 Reimbursable Improvement 6a - Phase 1 Orcutt Road East Side Improvements from Fiala to GarayOrcutt East Side Road Improvement STA 13+25 TO 23+85Item Description Quantity Unit Unit Cost Total DiscussionUnit Cost. Additional To Work Entirely on the West SideTotal D1 Mobilization1.00 LS 18,000.00 18,000 This is an additional charge over the West side construction because the East side work will be done at a different time than the West side development18,000.0018,0002Traffic Control1.00 LS 30,000.00 30,000 Same as above30,000.0030,0003 East Side Road (per Xsec East)1,067.00 LF 171.36182,841 Road Cross Section:Cut Slope with Revegetation: The East side of Orcutt is cut into the slope and requires more recontouring work than the West sidea/c Dyke: The a/c dyke is an additional cost due to road improvement on the east sidePavement With Subbase: Pavement with sub-base is a cost that would occur if all work were on the west side (less 81.25/ft)Saw Cutting: The additional saw cut is entirely due to the work being done on the East sideStreet Grinding: The street grinding is entirely due to work being done on the East sideStriping: The striping is a cost that would occur if the work was done entirely on the West side (less 10.00/ft)80.1185,4774Intersection Blend Tiburon 1,449.00 SF 11.00 15,939 The intersection blend is entirely due to East side construction11.0015,9395Driveway Blend618.00 SF 11.00 6,798 The driveway blend is entirely due to East side construction11.006,7986a/c Dyke @ Int & Drv Blend61.00 LF 10.00 610 The driveway blend is entirely due to East side construction10.006107Vehicle Guardrail271.00 LF 75.00 20,325 The guardrail is entirely due to East side construction75.00 20,3258Lid Structure Mobilization1.00 EA 5,000.00 5,000 East side LID is entirely due to East side construction5,000.005,0009LID Structure Area1,505.00 SF 11.26 16,946 East side LID is entirely due to East side construction11.2616,94610LID Structure Perimeter477.00 LF 45.00 21,465 East side LID is entirely due to East side construction45.0021,46511LID Structure Excavation2.00 EA 1,000.00 2,000 East side LID is entirely due to East side construction1,000.002,00012LID Structure Under Drain Connection2.00 EA 1,000.00 2,000 East side LID is entirely due to East side construction1,000.002,00013LID Structure Landscaping1,505.00 SF 4.00 6,020 East side LID is entirely due to East side construction4.006,02014Culvert Const. Mobilization1.00 EA 15,000.00 15,000 Equipment mobilization on the East side is because the East side will be done at a different time than the West side15,000.0015,00015Culvert Excavation260.44 YD 50.00 13,022 This is entirely East side work50.0013,0224Culvert Headwall Footings572.00 SF 25.00 14,300 This is entirely East side work25.0014,30017 Culvert Pipe Extension1.00 EA 6,000.006,000 If the work were to be done entirely on the West side the pipe extension on the West side would be longer and more expensive. Therefore there is little change in cost in with East side construction - 018Culvert Headwall Area645.00 SF 100.00 64,500 This is entirely East side work100.0064,50019Culvert RSP17.96 YD 150.00 2,694 This is entirely East side work150.002,69420Culvert Excavation Area Clean-Up/Re-Vegetation1,948.00 SF 5.00 9,740 This is entirely East side work5.009,74021Retaining Wall Footings36.00 LF 25.00 900 This is entirely East side work25.0090022Retaining Wall Area180.00 SF 75.00 13,500 This is entirely East side work75.0013,50023Power Pole Bracing5.00 EA 5,000.00 25,000 This is entirely East side work5,000.0025,00024Mail Box Replacement4.00 EA 300.00 1,200 This is entirely East side work300.001,20025Fence Replacement238.00 LF 50.00 11,900 This is entirely East side work50.00 11,900Sub Total 505,701 Sub Total 402,337 Design & Consultants15.0%75,855 60,351 Plan Check1.9%9,608 7,644 Inspection12.9%65,235 51,902 Sub Total 656,400 Sub Total522,234 Contingency10.0%65,640 52,223 Total 722,040 Total 574,457 Additional Cost Over Doing the Work Entirely on the West SideExhibit A Packet Pg 1329 Reimbursable Improvement 6b - Phase 3 Orcutt Road East Side Improvements from Garay to HansenOrcutt East Side Road Improvement STA 23+85 TO 41+13Item Description Quantity Unit Unit Cost Total DiscussionUnit Cost. Additional To Work Entirely on the West SideTotal D1Mobilization1.00 LS 18,000.00 18,000 This is an additional charge over the West side construction because the East side work will be done at a different time than the West side development18,000.0018,0002Traffic Control1.00 LS 30,000.00 30,000 Same as above30,000.0030,0003East Side Road (per Xsec East Side) 1,728.00 LF 170.25 294,192 Road Cross Section:Cut Slope with Revegetation: The East side of Orcutt is cut into the slope and requires more recontouring work than the West sidea/c Dyke: The a/c dyke is an additional cost due to road improvement on the east sidePavement With Subbase: Pavement with sub-base is a cost that would occur if all work were on the west side (less 81.25/ft)Saw Cutting: The additional saw cut is entirely due to the work being done on the East sideStreet Grinding: The street grinding is entirely due to work being done on the East sideStriping: The striping is a cost that would occur if the work was done entirely on the West side (less 10.00/ft)79.00136,5124Intersection Blend Calla Crotalo1,160.00 SF 11.00 12,760 The intersection blend is entirely due to East side construction11.0012,7605Driveway Blend208.00 SF 11.00 2,288 The driveway blend is entirely due to East side construction11.002,2886a/c Dyke @ Int & Drv Blend168.00 LF 10.00 1,680 The driveway blend is entirely due to East side construction10.001,6807Vehicle Guardrail329.00 LF 75.00 24,675 The guardrail is entirely due to East side construction75.00 24,6758Lid Structure Mobilization1.00 EA 5,000.00 5,000 East side LID is entirely due to East side construction5,000.005,0009LID Structure Area2,055.00 SF 11.26 23,139 East side LID is entirely due to East side construction11.2623,13910LID Structure Perimeter633.00 LF 45.00 28,485 East side LID is entirely due to East side construction45.0028,48511LID Structure Excavation2.00 EA 1,000.00 2,000 East side LID is entirely due to East side construction1,000.002,00012LID Structure Under Drain Connection2.00 EA 1,000.00 2,000 East side LID is entirely due to East side construction1,000.002,00013LID Structure Landscaping2,055.00 SF 4.00 8,220 East side LID is entirely due to East side construction4.008,22014Culvert Const. Mobilization1.00 EA 15,000.00 15,000 Equipment mobilization on the East side is because the East side will be done at a different time than the West side15,000.0015,00015Culvert Excavation308.04 YD 50.00 15,402 This is entirely East side work50.0015,40216Culvert Headwall Footings884.00 SF 25.00 22,100 This is entirely East side work25.0022,10017Culvert Pipe Extension2.00 EA 4,000.00 8,000 If the work were to be done entirely on the West side the pipe extension on the West side would be longer and more expensive. Therefore there is little change in cost in with East side construction - 018Culvert Headwall Area990.00 SF 100.00 99,000 This is entirely East side work100.0099,00019Culvert RSP31.67 YD 150.00 4,750 This is entirely East side work150.004,75020Culvert Excavation Area Clean-Up/Re-Vegetation2,079.00 SF 5.00 10,395 This is entirely East side work5.0010,39521Retaining Wall Footings36.00 LF 25.00 900 This is entirely East side work25.0090022Retaining Wall Area180.00 SF 75.00 13,500 This is entirely East side work75.0013,50023Power Pole Bracing3.00 EA 5,000.00 15,000 This is entirely East side work5,000.0015,00024Mail Box Replacement1.00 EA 300.00 300 This is entirely East side work300.0030025Fence Replacement972.00 LF 50.00 48,600 This is entirely East side work50.00 48,600Sub Total 705,386 Sub Total 539,706 Design & Consultants15.0%105,808 80,956 Plan Check1.9%13,402 10,254 Inspection12.9%90,995 69,622 Sub Total 915,591 Sub Total700,539 Contingency10.0%91,559 70,054 Total 1,007,150 Total 770,592 Additional Cost Over Doing the Work Entirely on the West SideExhibit A Packet Pg 1339 Reimbursable Improvement 7 - Orcutt West Side Garay Frontage Improvements Orcutt Road West Side Frontage Improvement Item Description Quantity Unit Unit Cost Total 1 Mobilization 1.00 LS 25,000.00 25,000 2 Traffic Control 1.00 LS 30,000.00 30,000 3 West Side Road (per X-Sec A)470.00 LF 200.74 94,345 4 Intersection Blend (Tiburon & Calla Crotalo)SF 11.00 - 5 Driveway Blend 871.00 SF 6.00 5,226 6 a/c Dyke @ Int & Drv Blend LF 10.00 - Lid Structure Mobilization EA 5,000.00 - 7 LID Structure Area SF 11.26 - 8 LID Structure Perimeter LF 45.00 - 9 LID Structure Excavation EA 1,000.00 - 10 LID Structure Under Drain Connection EA 1,000.00 - 11 LID Structure Landscaping SF 4.00 - 12 Culvert Const. Mobilization 1.00 EA 15,000.00 15,000 13 Culvert Excavation 148.59 YD 50.00 7,430 14 Culvert Headwall Footings 358.00 SF 25.00 8,950 15 Culvert Pipe Extension 1.00 EA 6,000.00 6,000 16 Culvert Headwall Area 405.00 SF 100.00 40,500 17 Culvert RSP 13.00 YD 150.00 1,950 18 Culvert Excavation Area Clean-Up/Re-Vegetation 1,337.00 SF 7.00 9,359 19 Retaining Wall Footings LF 25.00 - 20 Retaining Wall Area SF 75.00 - 21 Power Pole Bracing 0.00 EA 5,000.00 - 22 Mail Box Replacement 1.00 EA 300.00 300 23 Fence Replacment 470.00 LF 25.00 11,750 Sub Total 255,810 Design & Consultants 15.0%38,372 Plan Check 1.9%4,860 Inspection 12.9%33,000 Sub Total 332,041 Contingency 10.0%33,204 Total 365,246 Exhibit A Packet Pg 134 9 Garay~45 SFRProjects1a,1b, 6b,7Taylor / Muick53 SFR67 MFRProjects1a,1b,2,3,4,5,6aWest Creek67 SFR105 MFRProjects1a,3Pratt(2), Evans, Anderson~239 MFRProjects2,3Righetti Hill Open Space and HomesiteFarrior / Hall~19 MFRProjects1a,1b,3Fiala~4 SFRProjects1a,1b,3Project Description 1a. Offsite Water Main from Johnson/Cedar Ct. to Johnson/Orcutt 1b. Offsite Water Main from Johnson/Orcutt to Orcutt/Tiburon 2.Water Main in Ranch House Rd from Tiburon to Sponza 3.Recycled Water Main From Tank Farm/Righetti Ranch to Ranch House/Sponza 4.Sanitary Sewer Main in Ranch House Rd. from Tiburon to Sponza 5.Intentionally Left Blank 6a.Orcutt Road East Side Improvements from Fiala Property to Garay Property 6b. Orcutt Road East Side Improvements from Garay Property to Hanson Lane 7.Orcutt Road West Side Fronting the Garay Property Ambient Breakdown:Tract 3066 (Jones) 14 SFR 52 MFRImel 17 SFR 0 MFRPratt(1), (024) 0 SFR 55 MFRTract 3063 Phase 1 151 SFR 0 MFRTract 3063 Phase 2 87 SFR 32 MFRTract 3063 Phase 3 34 SFR 0 MFRTOTALS 303 SFR 139 MFRORCUTTJOHNSONTANK FARMT I B U R O N HANSONBULLOCKNot A PartTract 3063 Phase 1(Ambient)151 SFRProjects1a,1b,3Tract 3063 Phase 2(Ambient)87 SFR32 MFRProjects1a,1b,3,6a,6bTract 3066 (Ambient)14 SFR52 MFRProjects1a,1b,2,3,6a,6bTract 3063 Phase 3(Ambient)34 SFRProjects1a,1b,6bIMEL(Ambient)17 SFRProjects1a,1b,3,6aPratt(1)(Ambient)55 MFRProjects1a,1b,2,3,6a,6bBENEFITING PARCELS MAP5/26/2017 9:12:20 AMK:\1 Ambient Projects\CA, SLO - Righetti Ranch\2016 03 02 Fare Share Agreement\Reimbursment Agreement\2017 05 01 Benefiting Parcels Map.rvtExhibit B Packet Pg 1359 RECLAIMED WATER MAIN (3) RECLAIMED WATERRighetti Ranch RoadTiburon Road Ranch House RoadSponza Righetti Ranch RoadOrcutt RoadWATER MAIN SEWER MAIN 1(a) & 1(b) WATER MAIN FROM CEDAR CT.6(a) ORCUTT EAST SIDE6(b) ORCUTT EAST SIDE(7) ORCUTT WEST SIDE FRONTING GARAY(4) SEWER MAIN(2) WATER MAIN Hanson ROAD FRONTAGE Tiburon Road Orcutt Road5/24/2017 2:29:44 PMK:\1 Ambient Projects\CA, SLO - Righetti Ranch\REVIT Files\Reimbursment Agreement\2017 05 01Reimbursment AgreementExhibit A V2017.rvt Excess Public Improvements Eligible for Reimbursement Ambient Reimbursement Agreement Packet Pg 136 9