HomeMy WebLinkAbout06-04-2019 Item 16 - Reimbursement Agreement w Avila Ranch, LLC for Buckley Sewer Lift Sation Construction
Department Name: Utilities
Cost Center: 6002
For Agenda of: June 4, 2019
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: David Hix, Deputy Director - Wastewater
Jennifer Metz, Utilities Projects Manager
SUBJECT: REIMBURSEMENT AGREEMENT WITH AVILA RANCH, LLC FOR
CONSTRUCTION OF THE BUCKLEY SEWER LIFT STATION
RECOMMENDATION
1. Adopt a Resolution (Attachment A) approving a Wastewater Reimbursement Agreement for
the construction of the Buckley lift station by Avila Ranch, LLC; and
2. Authorize the Mayor to execute the Agreement and authorize the Utilities Director to
implement the Agreement.
DISCUSSION
Avila Ranch, LLC, the developer of the Avila Ranch subdivision, is conditioned to construct the
Buckley sewer lift station to serve its residential development with up to 720 units on a 150-acre
site north of Buckley Road. The Buckley sewer lift station would also serve future development
east and west of the Avila Ranch project within the boundaries of the Airport Area Specific Plan.
Section 16.21.110 of the San Luis Obispo Municipal Code allows the developer to request
reimbursement from the City when improvements are required at a greater capacity than required
for the development of the property under consideration.
Staff worked with representatives of Avila Ranch, LLC on the Wastewater Reimbursement
Agreement provided in the Resolution in Attachment A. Under the Agreement, reimbursements
would be made to Avila Ranch, LLC over the course of the development of the Avila Ranch
subdivision, from wastewater development impact fees on a per equivalent dwelling unit (EDU)
basis. The City Council will consider the increase to the City’s wastewater development impact
fees on June 4, 2019. The methodology used for the City’s wastewater development impact fees,
when adopted in 2018, included the cost of sewer lift stations in the citywide wastewater
development impact fee. Therefore, it is consistent with this methodology to include the cost of
the Buckley lift station in the updated fees. The updated fees are recommended to become
effective June 5, 2019.
Staff recommends Council adopt the Resolution approving the Reimbursement Agreement with
Avila Ranch, LLC contingent upon adoption of the updated wastewater development imp act fees
that include the cost of the Buckley Sewer Lift Station.
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Policy Context
The City periodically updates its development impact fees, consistent with General Plan, Water
and Wastewater Management Element, and policies related to the provision of wastewater
service.
Public Engagement
Public engagement regarding the recommended Reimbursement Agreement with Avila Ranch,
LLC entailed official notice of the City Council meeting. City staff also presented the updated
wastewater development impact fees at the Developers Roundtable meeting on May 13, 2019,
which enables the reimbursement. The meeting was well attended by a variety of representatives
from the development community.
CONCURRENCES
The City’s Administration and Community Development Departments concur with the
recommended action. The Community Development Department also concurs with
environmental review findings, below.
ENVIRONMENTAL REVIEW
Construction of the Buckley lift station was reviewed as part of the Avila Ranch Environmental
Impact Report, certified by the City Council on September 19, 2017. The City found in
connection with its review and consideration of the Wastewater Reimbursement Agreement that
no subsequent or supplemental Environmental Impact Report is required under CEQA because
the terms and conditions of the Agreement are consistent with and within the scope of and
contemplated by the FEIR adopted for the Avila Ranch Project. This 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.
FISCAL IMPACT
Budgeted: No Budget Year: FY 18-19
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost Annualized
On-going Cost Total Project Cost
General Fund
State
Federal
Fees
Other: Sewer Fund 0 0 Reimbursement of up to
$1,414,759 Total 0 0
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Reimbursement to Avila Ranch, LLC would be from the City’s Sewer Fund through the
collection of wastewater development impact fees on a per equivalent dwelling unit basis as
described in the Agreement.
ALTERNATIVE
Continue Consideration of the Proposed Reimbursement Agreement. Council may elect to
continue consideration of the Reimbursement Agreement 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.
Attachments:
a - Resolution
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R ______
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING A WASTEWATER REIMBURSEMENT
AGREEMENT FOR CONSTRUCTION OF THE BUCKLEY SEWER LIFT
STATION
WHEREAS, On September 19, 2017, the San Luis Obispo City Council certified the Final
Environmental Impact Report; approved the Avila Ranch Development Plan, Airport Area
Specific Plan Amendment 1318-2015, General Plan Amendment 1319-2015, Vesting Tentative
Tract Map 3089, Ordinance 1638 (2017 Series) approving a rezone of the Avila Ranch property,
and Ordinance 1639 (2017 Series) approving Development Agreement 2017 -1, and formation of
a Community Facilities District (collectively “Project”); and
WHEREAS, Section 6.02.1 of Development Agreement 2017-1 requires Avila Ranch to
construct or pay for its fair share allocation of public facilities and infrastructure needed to serve
the Project; and
WHEREAS, Vesting Tentative Tract Map 3089 Condition 50 require s Avila Ranch to
construct a sewer lift station to connect to a force main system to transport wastewater flow from
both the Project site and future development east and west of the Project, as illustrated in the
Approved Plans, then north to the Tank Farm Lift Station (“Buckley Lift Station”); and
WHEREAS, Avila Ranch estimates the cost to construct the Buckley Sewer Lift Station
will be approximately $1.3 millio n; and
WHEREAS, Section 5.05.3 of Development Agreement 2017-1 requires the City to
reimburse the actual hard and soft costs associated with Avila Ranch’s construction of that portion
of any oversized facilities attributable to a project or area other than the Project or Project property.
Therefore, the City proposes to reimburse Avila Ranch for the cost of constructing the Buckley
Sewer Lift Station to the extent that such reimbursement is available as part of the City’s adopted
fee program; and
WHEREAS, Wastewater development impact fee reimbursements shall not exceed the
purpose or amount being collected; and
WHEREAS, Wastewater development impact fees are assessed based on residential unit
size (e.g. where a residential unit that is 1,201 square feet or more is equal to one equivalent
dwelling unit (EDU)); and
WHEREAS, The City agrees to issue the Developer wastewater development impact fee
reimbursements from the City’s Sewer Fund to the extent that funds are available as part of the
City’s adopted fee program. Exhibits specifying the Eligible Buckley Sewer Lift Station
Construction Costs and Wastewater Development Impact Fee Reimbursements are available in
Exhibits 1 and 2; and
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Resolution No. _____ (2019 Series) Page 2
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows/or that:
SECTION 1. The “Wastewater Reimbursement Agreement,” attached to this Resolut ion
as Attachment A, is hereby approved, and the Mayor is authorized to approve minor revisions and
execute said Agreement on behalf of the City contingent on the adoption of revised Wastewater
Development Impact Fees also being considered on June 4, 2019.
SECTION 2. The Utilities Director is authorized to administer and implement the
“Wastewater 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. Construction of the Buckley Sewer Lift Station was
reviewed as part of the Avila Ranch EIR, certified by the City Council on September 19, 2017.
The City found in connection with its review and consideration of the Wastewater Reimbursement
Agreement that no subsequent or supplemental Environmental Impact Report is required under
CEQA because the terms and conditions of the Agreement are consistent with and within the scope
of and contemplated by the FEIR adopted for the Avila Ranch Pro ject. This 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.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
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Resolution No. _____ (2019 Series) Page 3
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 June, 2019.
____________________________________
Teresa Purrington
City Clerk
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Resolution No. _____ (2019 Series) Page 4
ATTACHMENT A: Wastewater Reimbursement Agreement
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CAT.ITEM QUANT UNIT COST/UNIT COST DESCRIPTION
IMPROVEMENTS
MOBILIZATION 1 LS 45,000.00$ 43,606.00$ 5% OF TOTAL CONSTRUCTION COSTS
ROUGH GRADING 15,000 SF 0.75$ 11,250.00$ INCLUDES COMPACTED SUBGRADES
SHORING 1 LS 35,000.00$ 35,000.00$ ALLOWANCE
DEWATERING 1 LS 30,000.00$ 30,000.00$ ALLOWANCE
PUMPS, WETWELL AND VAULT 1 LS 233,000.00$ 233,000.00$ ALLOWANCE
ELECTRICAL 1 LS 15,000.00$ 15,000.00$ ALLOWANCE
FIBER OPTIC LINES TO TF LS 6,900 LF 30.00$ 207,000.00$ TRENCHING, CONDUITS AND TRAFFIC CTRL.
ASPHALT DEMO/PATCHBACK 4,500 LF 12.50$ 56,250.00$ INCLUDES SAWCUTTING, DEMO AND PATCHBACK
CONNECTION TO TF LIFT STATION 1 LS 10,000.00$ 10,000.00$ ON TANK FARM ROAD
CONTROLS 1 LS 100,000.00$ 100,000.00$ ALLOWANCE
GENERATOR 1 LS 75,000.00$ 75,000.00$ ALLOWANCE
GENERATOR ENCLOSURE 1 LS 15,000.00$ 15,000.00$ ALLOWANCE
LIFT STATION PAD 1,600 SF 8.00$ 12,800.00$ ASSUMES 6" REINFORCED
GENERATOR PAD 75 SF 15.00$ 1,125.00$ 12" REINFORCED
EQUIPMENT PAD 65 SF 15.00$ 975.00$ 12" REINFORCED
APPROACH 160 SF 8.50$ 1,360.00$ CITY STANDARD
ACCESS ROAD PAVING 2,100 SF 5.00$ 10,500.00$ INCLUDES BASE AND PAVING
RECYCLED WATER SERVICE 1 EA 1,750.00$ 1,750.00$ ALLOWANCE
RECYCLED WATER FEES/METER 1 LS 21,000.00$ 21,000.00$ ALLOWANCE
GAS SERVICE 1 EA 750.00$ 750.00$ ALLOWANCE
METAL FABRIC FENCING 395 LF 25.00$ 9,875.00$ CHAIN LINK FENCING WITH SLATS
BLOCK WALL FENCE 115 LF 125.00$ 14,375.00$ ASSUMES AROUND LIFT STATION
LANDSCAPING 525 SF 5.00$ 2,625.00$ INCLUDES IRRIGATION AND PLANTINGS
TREES - EA 350.00$ -$ ALLOWANCE
16' GATES 2 EA 1,500.00$ 3,000.00$ ON ACCESS ROAD
LIGHT POLE 1 EA 4,500.00$ 4,500.00$ AT LIFT STATION
Subtotal Hard Cost:915,741.00$
Contingency @ 10%91,574.10$
Total:1,007,315.10$
SOFT COSTS
ENGINEERING DESIGN LIFT STATION 1 LS 34,200.00$ 34,200.00$ MKN Contract
CIVIL & LANDSCAPE ENG. DESIGN 1 LS 28,283.00$ 28,283.00$ RRM Contract
SPECIAL GEOTECH 1 LS 6,500.00$ 6,500.00$ GeoSolutions
ELECTRICAL ENGINEER 1 LS 9,800.00$ 9,800.00$ Thoma Contract
ENGINEERING CONSTRUCTION 1 2%20,170.37$ 20,170.37$ Survey
LEGAL AND ACCOUNTING 1 LS 2,500.00$ 2,500.00$ ALLOWANCE
CITY PLAN CHECK FEES 1 2.44%22,370.77$ 22,370.77$ Estimate
CITY INSPECTION FEES 1 -$ -$ City to Provide All Inpsection
SPECIAL INSPECTIONS/TESTING 1 2.50%22,920.88$ 22,920.88$ Estimate; City to Pay Actual
SPECIAL PLANNING PLAN CHECK 1 1.50%13,752.53$ 13,752.53$ Estimate; City to Pay Actual
INSURANCE 1 1.75%16,044.61$ 16,044.61$ Estimate; City to Pay Actual
SUPERVISION 1 2.25%20,628.79$ 20,628.79$ Estimate; City to Pay Actual
CONSTRUCTION MANAGEMENT 1 1.75%16,044.61$ 16,044.61$ Estimate; City to Pay Actual
BONDS/PROJECT MANAGEMENT 1 3.50%32,089.23$ 32,089.23$ Estimate; City to Pay Actual
Soft Cost Subtotal:245,304.78$
GRAND TOTAL:1,252,619.88$
BUCKLEY SERVICE AREA LIFT STATION ESTIMATE OF COST
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Units EDU Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
R-1 101 1.00 - - - - - - - 50 51
R-2 Standard 228 1.00 45 45 45 29 64 - - - -
R-2 Pocket (>1200 SF)54 1.00 11 11 11 10 10 - - - -
R-2 Pocket (Mod/WF-1100 SF)18 0.80 5 5 - - 8 - - - -
R-3 Duplex (1,850 SF)38 1.00 - - - - - 38 - - -
R-3 Townhome (>1,200 SF)77 1.00 - - - - - 77 - - -
R-3 Townhome (1,100 SF -1,200 SF)40 0.80 - - - - - - 40 - -
R-3 Townhome (<1,100 SF)39 0.80 - - - - - - 39 - -
R-4 (450 SF - 800 SF)40 0.70 - - - 40 - - - - -
R-4 (801 SF - 1,100 SF)60 0.80 - - - 60 - - - - -
R-4 (>1,100 SF)25 0.80 - - - 25 - - - - -
Total 720 671.60 61 61 56 164 82 115 79 50 51
Impact Fee Credits 1,414,759$ 127,095$ 127,095$ 118,669$ 284,384$ 169,367$ 242,253$ 133,134$ 105,328$ 107,434$
Capital Cost Costs
Improvements 915,741$
Soft Costs 245,305$
Contingency 91,574$
Subtotal 1,252,620$ 1,252,620$
Accumulated Annual Interest Expense 3.25%162,139$ 36,580$ 33,638$ 30,874$ 22,635$ 17,866$ 10,574$ 6,591$ 3,382$
Total 1,414,759$ 1,125,525$ 1,035,009$ 949,978$ 696,468$ 549,736$ 325,349$ 202,789$ 104,052$ (0)$
Cost/Reimbursement per EDU 2,107$
Residential (by Unit Size)EDU per Fee
Schedule
Estimated
Units Total EDUs Reimbursement
Per Unit
Residential Unit (1,201 square feet or more)1.0 498 498.0 2,107$
Residential Unit (801-1200 square feet or
more)
0.8 182 145.6 1,685$
Residential Unit (451 to 800 square feet)0.7 40 28.0 1,475$
Mobile Home 0.6 1,264$
Studio Unit (450 square feet or less)0.3 632$
Total 720 671.60
Buildout and Cash Flow
Project Cost Payoff
$ 1,414,759
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