HomeMy WebLinkAbout06-18-2019 Item 4, HudsonCity of San Luis Obispo, Council Memorandum
Date: June 17, 2019
TO: Mayor and Council
FROM: Jake Hudson, Interim Deputy Public Works Director
VIA: Derek Johnson, City Manager DJ
SUBJECT: Avila Ranch Private Reimbursement Agreement – Melton Correspondence
The Council recently received a letter from Mrs. Melton asking for the costs associated with the
improvements at Higuera & Vachell and the Buckley Road Extension to be distributed across
more developable area. Below is a summary how the costs for these two projects are currently
distributed and an explanation of why there was not nexus to expand the cost distribution further
under a private reimbursement agreement. Staff can report that a meeting with the Meltons did
occur along with other property owners and additional language has been added into the
agreement providing flexibility to distribute costs to the entire city thru the Citywide Impact Fee
Program and for distributing costs to new development in the County should Council desire to do
so in the future.
Higuera & Vachell
Regarding the improvements at Higuera
and Vachell the estimated cost distribution
is proposed across five (5) properties with
Avila & CalTrans having the highest
proportions. We considered all new
development potential in the Southern area
of the City for distribution of these costs,
however these were the only five new
development areas whose traffic was
projected to contribute to the specific need
of the mitigation project at Higuera &
Vachell. The need is primarily driven by
new traffic approaching or departing
Higuera via Vachell.
While it may seem that new development
potential along Suburban would also
contribute to that need, this area has
adequate access to Higuera via the Traffic Signal at Suburban.
Avila Ranch,
50%
CalTrans, 23%
Morbito
Burke, 12%
Meltons, 8%
Sports
Warehouse,
7%
Higuera & Vachell Intersection
Proportional Share
Avila Ranch Private Reimbursement Distribution Information Page 2
Buckley Extension
In regards to the Buckley Road Extension
estimated cost distribution is proposed
across seven properties with Avila, Froom
Ranch, & CalTrans having the highest
proportions. The specific need for the
Buckley Extension is primarily driven by
new traffic projected on Buckley Road.
Similar to the circumstances with Higuera
& Vachell, while it may seem that new
development potential along Suburban
would also contribute to that need this area
has a negligible amount of new traffic
projected on Buckley Road.
Although the properties identified in the
agreement are the only potential new
development areas known that have nexus
to these two mitigation projects, these are estimates. Sections 4(b) and 6(a) of the agreement
provide the flexibility to add properties not currently known to have new development potential
both within City and County that have nexus to these improvements. Staff will review new
development applications and County referrals for potential inclusion into the distribution of
reimbursement costs.
Since staff had last meet with affected property owners, based that input, Section 6(b) of the
agreement has been added that allows for these costs to be removed from the reimbursement
agreement if they are ever adopted into a fee program such as the Citywide Transportation
Impact Fee Program. These projects were originally considered for inclusion in the fee program,
but were ultimately excluded to facilitate the implementation of the City’s transportation
improvement objectives. If the projects were to be adopted into the fee program, Citywide traffic
impact fees could increase as much as 3% and, due to adopted fee program policy discounts, this
would result in an approximate $2.0 million General Fund obligation over the course of 30 years.
Avila Ranch,
25%
Froom Ranch,
18%
CalTrans, 15%
Morbito
Burke, 12%
Meltons, 5%
Sports
Warehouse,
4%
Creekside, 4%
Buckley Extension
Proportional Share