City Council Report 915 I Street, 1 st Floor Sacramento, CA
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1 City Council Report 915 I Street, 1 st Floor Sacramento, CA File ID: October 24, 2017 Consent Item 05 Title: Agreement: Shasta Park Frontage Improvements and Fee Credit/Reimbursement Location: District 8 Recommendation: Pass a Resolution: 1) approving the Park Development Impact Fee Credit Agreement with KB Home Sacramento, Inc. for the Park Frontage Improvements along Kastanis Way abutting Shasta Park; 2) authorizing the City Manager or City Manager s designee to execute the agreement; 3) establishing a new capital improvement project (CIP) for Shasta Park Frontage Improvements (L ); and 4) appropriating $20,000 from Park Development Impact Fees (Fund 3204) available fund balance to L Contact: Raymond Costantino, Senior Planner, (916) , Department of Parks and Recreation Presenter: None Attachments: 1-Description/Analysis 2-Park Frontage Improvement and Fee Credit/Reimbursement Agreement 3-Resolution 4-Location Map Matthew Ruyak, Interim City Attorney Mindy Cuppy, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of 18
2 File ID: Consent Item 05 Description/Analysis Issue Detail: KB Homes Sacramento, Inc. is the developer of the Shasta 10 (P06-189), a recently entitled 60 lot residential subdivision project on 10-acres of unimproved land in South Sacramento, located between Cotton Lane and Shasta Avenue (Assessor s Parcel Nos and 014). The development abuts Shasta Park, a 19.6-acre community park located at 7617 Shasta Avenue. A new street, Kastanis Way, will separate the Shasta 10 subdivision from Shasta Park. As part of the development entitlements, the developer is required to dedicate and construct one-half of the street improvements to the east of the property line between the subdivision and Shasta Park. The developer is obligated to build the street as part of the subdivision improvements, and the street frontage improvements (curb, gutter and sidewalk) along the residential side of the street. However, the developer is not obligated to build the street frontage improvements along Shasta Park (the City frontage improvements ). Both the City and the developer agree that it would be beneficial to the new residents if the City frontage improvements are installed with the development, which would increase public access to park for the residents of the new subdivision. The City and developer agree that there are mutual benefits to having the developer build the City frontage improvements at the same time as the subdivision is developed rather than the City having to install these park improvements at a later date. The City will benefit by not having to coordinate construction between different contractors if the City frontage improvements were constructed by a separate City contractor. Based on current estimates, the City frontage improvements costs will be approximately $124,838. The City frontage improvements will be based on the street plan approved by City as shown on the final Shasta 10 subdivision map and the developer will separately bid this work. The City will grant the developer Park Development Impact Fee credits as the form of reimbursement for the costs of the City frontage improvements based on the terms and conditions set forth in the credit/reimbursement agreement. Policy Considerations: City Code Section provides that the City Council, by resolution or agreement, may establish policies and procedures for issuance of development credits against the park development impact fee for park facilities constructed by a landowner. As stated in City Council Budget Resolution No , Sections 10.2, City Council approval is required to establish CIP projects. Utilizing Park Development Impact Fees (PIF) available fund balance, Fund 3204, to fund and augment project budget is consistent with Sacramento City Code Section as these funds will be expended on park facilities that serve the residents and employees of development projects for which the fees were paid. Economic Impacts: Not applicable. City of Sacramento October 24, 2017 powered by Legistar Page 2 of 18
3 File ID: Consent Item 05 Environmental Considerations: The City frontage improvements will be built as part of Kastanis Street within the Shasta 10 subdivision project, which has already been subject to environmental review under the California Environmental Quality Act (CEQA). Also, the City frontage improvements are exempt from environmental review under CEQA Guidelines Section 15304, minor alterations to land. Rationale for Recommendation: The developer is not obligated to build the City frontage improvements along Kastanis Way, which abuts the City s Shasta Park property. City desires that the developer construct such improvements as part of Kastanis Way so that new residents of the Shasta 10 subdivision can access the park utilizing a sidewalk along the park boundary. By having the developer construct the improvements, access to the park along Kastanis Way will be safer. The City benefits by construction efficiencies and economies of scale. Payment of these costs by issuing park development impact fee credits is appropriate since this fund would be used if the City were to build the street frontage improvements for this park. Financial Considerations: The City frontage improvements are estimated at $124,838. The actual park development impact fee credits to be issued will depend on the actual bid costs of the improvement amount. The transfer of $20,000 will provide the budgetary resources for staff time to review and inspect improvements. Local Business Enterprise (LBE): Not applicable. Background: As part of the development project entitlements, the developer will be obligated to pay an in-lieu fee for parkland dedication as set forth in Chapter Based on parkland dedication Level of Service of 3.5 acres per 1,000 population, this generates a land dedication obligation of 0.57 acres that equals a fee of $133,950. The subdivision is also subject to the City s Park Development Impact Fee as set forth in City Code Chapter The PIF rates were revised as of April 15, 2017 and are now based on square footage, with a minimum fee for units under 750 square feet of $1,913 and a maximum fee of for units over 2,000 square feet of $5,100. The current PIF fee estimate for this project is $306,000, assuming the units will be a minimum of 2,000 sq. ft. each. Together this project will generate approximately $439,950 in both the parkland dedication fee and the park development impact fee. The PIF can be used for park development such as the City frontage improvements. City will grant developer Park Development Impact Fee credits for such costs on the terms and conditions set forth in this agreement. This agreement will also serve as a right of entry over a portion of the City park property for the developer to construct the City frontage improvements. City of Sacramento October 24, 2017 powered by Legistar Page 3 of 18
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16 RESOLUTION NO Adopted by the Sacramento City Council APPROVE THE PARK DEVELOPMENT IMPACT FEE CREDIT AGREEMENT AND ESTABLISH A CAPITAL IMPROVEMENT PROJECT FOR SHASTA PARK FRONTAGE IMPROVEMENTS AND APPROPRIATE FUNDING BACKGROUND: A. On March 12, 2015, KB Home Sacramento, Inc. (developer) obtained approval for Shasta 10 (P06-189), a 60-unit residential subdivision project encompassing 10 acres and located between Cotton Lane and Shasta Avenue. B. The Shasta 10 development abuts the City's Shasta Community Park at 7617 Shasta Avenue. C. The Shasta 10 subdivision map includes the construction of Kastanis Way along the western boundary of the Property, which new road will separate the subdivision from Shasta Community Park. D. KB Home is not obligated to build the Frontage Improvements along Kastanis Way which abuts City's Shasta Park property. City desires that the Developer construct such improvements when Kastanis Way is constructed by Developer so that residents of the Shasta 10 subdivision can access the park along sidewalks that abut the park. E. City will grant developer Park Development Impact Fee credits for such costs on the terms and conditions set forth in Park Development Impact Fee Credit Agreement. F. City Council approval is required to establish CIP projects. BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS: Section 1. Section 2. Section 3. The Park Development Impact Fee Credit agreement with KB Home for the park frontage improvements along Kastanis Way abutting Shasta Park is approved. The City Manager or City Manager s designee is authorized to execute the agreement. A new capital improvement project for the Shasta Park Frontage Improvements L is established. Page 16 of 18
17 Section 4. Appropriation of $20,000 from the Park Development Impact Fee (Fund 3204) available fund balance to establish an expenditure budget for L is approved. Page 17 of 18
18 BRUCEVILLE RD Street Improvements - 54 feet wide Parcel lines Project area Shasta Park KASTANIS WAY!"#$ }þ 99 5!"#$ 80!"#$ 80!"#$ 80!"#$ }þ )*+, )*+,- 80 (/ 50 }þ 16 }þ 99!"#$ 5 }þ 99 IMAGINATION PKWY COTTON LN project area Shasta Park SHASTA AVE KEUSMAN ST Shasta Park Street Improvements ,000 Feet ² Page 18 of 18 DISCLAIMER: All maps & data provided are subject toterms of Use identified in the City of Sacramento Open DataPolicyat \\ewgis01\shares\it_gis\projects\parks\projects\shasta_park mxd DavidWilcox
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