HomeMy WebLinkAboutr 10513 fit director to issue inter fund loan for prado rdRESOLUTION NO. 10513 (2014 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE FINANCE AND INFORMATION TECHNOLOGY DIRECTOR
TO ISSUE AN INTERFUND LOAN
FOR THE PURPOSES OF CONSTRUCTING A PORTION OF PRADO ROAD
FOR TRACT 2342 AND 2353
WHEREAS, on October 12, 2004 the San Luis Obispo City Council adopted the
Margarita Area Specific Plan ( "MASP ") by City Council Resolution Number 9615; and
WHEREAS, Chapter 23 of the City's General Plan Land Use Element identifies the
Margarita Area as a Residential Expansion Area intended to accommodate San Luis Obispo's
planned residential growth for the near future; and
WHEREAS, Prado Road is intended to serve as the primary east -west arterial serving
citywide and vehicle, transit, and bicycle traffic, relieving congestion along South Street & Tank
Farm Road, and providing improved emergency response times in those areas; and
WHEREAS, establishing the east -west connection of Prado Road between Broad Street
and Higuera Street at the earliest possible stage of development is a goal of the MASP and City
development process. However, because this goal is hindered by multiple and changing property
ownerships and development phasing of individual properties, revised plans for phased
implementation of Prado Road are necessary; and
WHEREAS, on March 7, 2006, the City Council adopted Resolution Nos. 9776 and
9777, approving, respectively, Vesting Tentative Tract Map ( "VTTM's ")Nos. 2342 and 2353;
and
WHEREAS, Section 5.7.2 of the Margarita Area Specific Plan and the Vesting Tentative
Tract Map Nos. 2342 Condition of Approval l .g. provide that the Developer is to pay the costs of
designing, permitting and constructing Prado Road; and
WHEREAS, the City has determined that the most efficient, expedient, and effective
approach to coordinate the construction of Prado Road concurrent with the housing development
is for the Developer to construct Prado Road; and
WHEREAS, Sections 1.4 and 1.5 of the Economic Development Strategic Plan call for
exploring financing strategies for infrastructure that address timing /costs and ensure that that new
development is responsible for infrastructure costs only to the extent there is a nexus between
costs and project impacts; and
WHEREAS, Section 1.9 of the Economic Development Strategic Plan contains a
strategy to work with developers that are willing to install infrastructure beyond their "fair share'
requirement as an expedient way to provide new infrastructure in the City's Expansion Areas;
and
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Resolution No. 10513 (2014 Series)
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WHEREAS, in connection with obtaining a building permit for each office, single -
family and multi- family unit within the Margarita Area Specific Plan area, Margarita Area
Specific Plan owners and /or developers are required to pay certain City -wide and Margarita Area
Specific Plan area Impact Fees to the City of San Luis Obispo; and
WHEREAS, the City of San Luis Obispo has adopted Chapter 16.20 of the San Luis
Obispo Municipal Code to set forth the procedure and conditions for physical improvement
standards and procedures, including the reimbursement of costs whenever improvements are
required to be installed adjacent to property other than that being developed or in greater size or
capacity than required for the development of the property under consideration; and
WHEREAS, Rescal LLC (hereinafter "Developer ") will construct a portion of Prado
Road as required by the conditions of approval and this portion of Prado Road is of greater
capacity than required for the development of the property under consideration; and
WHEREAS, Section 9.53 of the MASP provides that when the roadway is constructed
and accepted by the City, fee credits equal to the amount of the cost of the partial facility, or the
cost of the facility as estimated in the MASP public facilities financing plan can be issued to the
developer. The Developer can then apply them to offset fees imposed on his development or
enter into a reimbursement agreement for any constructed facility that is oversized; and
WHEREAS, a study prepared by Goodwin Consulting Group, Inc., and as modified by
actual public improvements costs, concluded that construction and related costs to design
Segments A, D and E of Prado Road as required by the conditions of approval would be
approximately $3,492,203 and that Tract 2342 and Tract 2353 MASP transportation fee
contribution for their single family residential components towards these improvements is
approximately $1,729,555 based on the MASP fees that took effect on July 1, 2012 and as
modified on July 1, 2013, leaving an estimated reimbursement amount of $1,762,648; and
WHEREAS, Section 66006 (b)(G) of the California Government Code allows for the
Interfund loan of development impact fees as defined under California Government Code 66000
et seq. if public improvements on which the Interfund loans will be expended, the date on which
the loan will be repaid and the rate of interest for the Interfund loan have all been established;
and
WHEREAS, an Interfund loan of $1,468,509 in Margarita Area Park Fees for the
residential component of Tracts 2342 and 2353 will reduce the estimated amount of remaining
reimbursement to $294,139 and the loan of Margarita Area Park Fee account to the Margarita
Area Transportation Fee account will not impair or delay the delivery of the future park
contemplated in the MASP as it is estimated that the payment of Margarita Area Park Fees from
other development with the MASP will be collected prior to the date when these funds will be
needed to construct this park; and
WHEREAS, The City has found in connection with its review and consideration of this a
Interfund loan that no subsequent or supplemental Environmental Impact Report is necessary or
required under CEQA because the credit of fees and reimbursement was analyzed and within the
Resolution No. 10513 (2014 Series)
Page 3
scope of activities contemplated by the FEIR adopted for the MASP and VTTM's and in the
Negative Declaration adopted for the proposed modifications to conditions regarding the
construction and phasing of Prado Road as required for implementation of the mitigation
measures thereunder.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows /or that (whatever action is needed):
SECTION 1. Authorize the Finance and Information Technology Director to loan up to
$1,468,509 of Tract 2342 and Tract 2353 MASP Park Improvement Fees account (via crediting)
to the MASP Transportation account for the reimbursement of actual eligible costs for the
construction of Prado Road as determined by the City Engineer, consistent with the approved
reimbursement agreements under the terms specified in this Resolution.
SECTION 2. The loan contemplated under this agreement shall be for no more than 15
years and the interest rate shall be as close as administratively practical to the average rate of
return for City investments during the period of said loans as determined by the Finance and
Information Technology Director. Repayment of the loans made under this resolution may be
made at any time without penalty.
SECTION 3. Direct the Director of Finance & Information Technology to establish one
or more Margarita Area Specific Plan accounts, or other accounts, as necessary to properly
account for and track the Interfund loans described and authorized herein.
SECTION 4. As required under Section 66006 et seq; the Finance and Information
Technology Director is hereby required to include in the City's annual Comprehensive Annual
Financial Report, outstanding Interfund loan amounts, a description of the improvements on
which the Interfund loan will be expended, repayment amounts and terms of Interfund loans,
including but not limited to the date on which the Interfund loan will be repaid.
SECTION 5. This Interfund loan does not constitute a debt on behalf of the General
Fund and the City does not pledge the full faith and credit of the General Fund in approving these
Interfund loans as described in this resolution. The Interfund loan shall not directly or indirectly
or contingently obligate the City to levy or pledge any form of taxation whatsoever or make any
appropriations for payments.
SECTION 6. The City reserves the right pursuant to conditions 1 e of Tracts Resolution
Nos. 9776 and 9777, approving, respectively, Vesting Tentative Tract Map Nos. 2342 and 2353
to form a community facilities district or other such financing mechanism that would fund any
final project costs for the construction of Prado Road as authorized under the approved VTTM's
conditions of approval that are not contained in the Margarita Area Specific Plan Impact Fee
estimates or to repay the Interfund loan if not repaid during the term as specified in this
agreement.
SECTION 7. Repayment of the interfund loan shall be made from MASP Transportation
account fees collected from future development located in the Margarita Area. Collected MASP
Resolution No. 10513 (2014 Series)
Page 4
Transportation Funds from future development other than the Developer shall first repay the
MASP Park Improvement account and once satisfied, may be used to reimburse developer for
any remaining obligation.
Upon motion of Council Member Carpenter, seconded by Council Member Ashbaugh,
and on the following roll call vote:
AYES: Council Members Ashbaugh and Carpenter, Vice Mayor Christianson and
Mayor Marx
NOES: None
ABSENT: None
ABSTAIN: Council Member Kathy Smith
The foregoing resolution was adopted this 15th day of April 2014.
�1" p4i9�e
Mayor Ja ` arx
ATTEST:
ptl''iony J Mejiaf CMC
ity Clerk
APPROVED AS TO
.1 piristine Dietrick
City Attorney