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: August 9, 2018 Consent Item 09 Title: Establishing a CIP for the River Oaks (the Cove ) Park Development Project (L ), Accepting Service Agreement Payment, and Establishing Revenue and Expenditure Budget Location: District 4 Recommendation: Pass a Resolution authorizing the City Manager or City Manager s designee to: 1) establish a new capital improvement project for River Oaks (the Cove ) Park Development Project (L ); 2) accept payment of $20,000 pursuant to the Park Master Plan Service Agreement from Beazer Homes Holdings, LLC into the Park Development Impact Fee (PIF) Fund (Fund 3204); and 3) establish a revenue budget in the Youth, Parks, and Community Enrichment Department operating budget in the amount of $20,000 in the PIF Fund (Fund 3204) and establish an expenditure budget for the River Oaks (the Cove ) Park Development (L ) in the amount of $20,000 in the PIF Fund (Fund 3204). Contact: Raymond Costantino, PPDS Manager, (916) , Department Youth, Parks and Community Enrichment Presenter: None Attachments: 1-Description/Analysis 2-River Oaks (the Cove ) Development Park Master Plan Service Agreement 3-Resolution 4-Location Map Susana Alcala Wood, City Attorney Mindy Cuppy, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of 13
2 File ID: Consent Item 09 Description/Analysis Issue Detail: Beazer Homes Holdings, LLC (Beazer) is the developer of the Cove development project, previously known as the River Oaks development, located at the Northwest Corner of West El Camino Avenue and the main drainage canal. The original River Oaks development project was approved by City Council (P01-132) on September 13, The development is a residential project on an 83.3-acre site. Beazer has requested that the City start the process of developing the new Cove Park project with the preparation of a park master plan. Beazer will hire a landscape architectural firm to prepare the park master plan and will reimburse the City s staff costs for plan review, community outreach, Parks and Recreation Commission review, CEQA analysis, and the City Council approval process. Beazer intends to build this park as part of its phase 2-5 development under a Park Impact Fee Credit Agreement, referred to as a turnkey agreement. Staff is proposing to establish a capital improvement project (L ) for the River Oaks (the Cove) Park development project at this time to account for the acceptance of the developer funds. The funds will be used for staff review and approval of the park master plan under a Park Master Plan Services Agreement. The new residential neighborhood will contain 591 homes. The project is planned to include a 1.9-acre neighborhood park to serve the new residents. Also, any Quimby In Lieu fees contributed by this project will be directed towards the building out of Barandas Park across the main drainage canal. Prior to development of a neighborhood park, a master plan for the site must be prepared. The master plan programs the types of recreational amenities and facilities to be developed and includes a schematic site plan for the park. The plan amenities and facilities must be in compliance with the City s Parks and Recreation Master Plan. To meet the City s Park Development Impact Fee ordinance, as set forth in City Code Chapter 18.56, Beazer plans to construct the park site rather than paying the impact fees for the City to construct the park. A developer who intends to build a city park rather than pay impact fees is required to reimburse the City for its costs to review and approve the park master plan, for CEQA review of the master plan, review of the park construction plans and specifications, and inspection during construction. The City s costs for park master plan review and approval, including CEQA review, are covered through the Service Agreement. The costs to review the park construction plans and specifications and inspection costs are paid for through the turnkey agreement. The City will need to provide guidance to Beazer to ensure that the park design is consistent with Parks and Recreation Master Plan and City park and construction standards, and assist in City of Sacramento August 9, 2018 powered by Legistar Page 2 of 13
3 File ID: Consent Item 09 coordinating public meetings and formal approval of the park master plan. In order to perform such services, Beazer must pay for the City s costs in the estimated amount of $12,410. To initiate the Service Agreement, the City requires a deposit of a minimum of $20,000 to establish the CIP for the Park Master Plan. Any remaining funds will be allocated towards the City s costs for plan review and overseeing construction of the park under the turnkey agreement. Staff recommends establishing the CIP to account for the developer payment to cover the cost of City staff time to oversee the Park Master Plan development and approval process. Policy Considerations: The River Oaks development (the Cove ) project was approved on September 13, 2005 and found to be consistent with the City s General Plan and the goals, policies, standards, and objectives. Providing parks and recreation facilities is also consistent with the City s strategic plan to enhance livability in Sacramento s neighborhoods through the provision of parks, recreation, and trail facilities throughout the City. Economic Impacts: Not applicable. Environmental Considerations: The proposed action to establish a capital improvement project for the Cove Park is a fiscal activity that is exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Section (b)(4). Environmental review of the park master plan will be conducted before the plan is approved. The Cove Park is part of the River Oaks development project. On September 20, 2005, the City Council certified the environmental impact report (EIR) and adopted the mitigation monitoring program (MMP) for the River Oaks Planned Unit Development (PUD) project. The developer is currently seeking to revise the tentative map and obtain schematic plan and PUD guidelines amendments that will relocate the park site to a more central location within the development. CEQA evaluation of those entitlements is currently underway. Rationale for Recommendation: Beazer desires to prepare the park master plan for the neighborhood park so that construction of the park can occur concurrently with development of the housing units so that the park will be in place once the new residents begin to occupy the units. Financial Considerations: The $20,000 payment from Beazer will be recorded as revenue for the Youth, Parks, and Community Enrichment Department operating budget in the Park Impact Fee (Fund 3204) and an expenditure budget will be established in the Cove Park Development Project (L ) to cover staff costs associated with overseeing the preparation of the park master plan, holding the public meetings, Park and Recreation Commission review, CEQA City of Sacramento August 9, 2018 powered by Legistar Page 3 of 13
4 File ID: Consent Item 09 analysis, and City Council approval. Any remaining funds will be used for staff costs to review the design plans and oversee construction of the park. Local Business Enterprise (LBE): Not applicable. City of Sacramento August 9, 2018 powered by Legistar Page 4 of 13
5 PARKS MASTER PLAN SERVICES AGREEMENT COVE (FORMERLY RIVER OAKS) DEVELOPMENT PROJECT This Park Master Plan Services Agreement ( Agreement ) is made and entered into on May, 2018, by and between the CITY OF SACRAMENTO, a municipal corporation ( CITY ) and BEAZER HOMES HOLDINGS, LLC ( DEVELOPER ). The CITY and DEVELOPER may be referred to collectively as Parties or in the singular as Party, as the context requires. RECITALS A. DEVELOPER has received land use approvals from the City to develop the Cove development site with a new residential neighborhood containing 590 homes ( Project ). The Project site is located within the South Natomas Community Planning Area, south of Interstate 80, North of El Camino, East of the Natomas Main Drainage Canal, and west of Orchard Lane. B. The Project is planned to include a neighborhood park (1.9 acres) serve the new residents. The neighborhood park will be bordered by new I and C Streets on north and south and new H Street and N Street on east and west. Developer intends to include the neighborhood park Phase 2 of the Project. C. DEVELOPER plans to dedicate the neighborhood park parcel to CITY to partially fulfill the CITY s parkland dedication requirements under the Quimby Ordinance, as set forth in City Code Chapter The Project site is located in the Remainder City, which under the ordinance requires 3.5 acres of parkland for every 1,000 persons and/or payment of an in-lieu fee as a condition of filing a final subdivision map. The developer s Quimby obligation is 5.6 acres. In this instance the City requested that 1.9 acres be provided as land dedication on site and the remaining 3.7 acres be provided as In-Lieu fee that will be directed towards improving Barandas Park located east of this subdivision. D. Prior to development of the neighborhood park, a master plan must be prepared and reviewed by the Parks and Recreation Commission and approved by the City Council. The master plan programs the types of recreational amenities and facilities to be developed and includes a schematic site plan for the park. The plan amenities and facilities must be in compliance with City s adopted Parks and Recreation Master Plan. Typically, City staff prepares a park master plan upon construction of half of the homes within the subdivision, and such costs are funded from park development impact fees. However, the timing as to when a park master plan is prepared is dependent on when CITY initiates development of a park site. The timing can also be accelerated by a DEVELOPER if it chooses to design and build a park as a turnkey facility. E. DEVELOPER plans to develop the park site, rather than paying certain fees for the CITY to develop the site, to meet the CITY s Park Development Impact Fee ordinance as set forth in City Code Chapter As part of the required 1 Page 5 of 13
6 turnkey agreement, a DEVELOPER is required to reimburse CITY for its costs of park master planning and preparation of park construction plans and specifications. F. DEVELOPER desires to prepare a park master plan for the neighborhood park (1.9 acres) at this time, so that construction of park can occur expeditiously and concurrently with completion of the Project s housing models and so that the park will be in place once the new residents begin to occupy the subdivision. G. CITY will need to provide guidance to DEVELOPER to ensure park design is consistent with City standards, review the proposed master plan and assist in coordinating public meetings and formal approval of the master plan. In order to perform such services, CITY requires DEVELOPER to pay for CITY s costs and to deposit a minimum of $20,000 to cover City s cost. Funds that are not used will be applied towards the future turnkey agreement relating to construction of the neighborhood park. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows: 1. Purpose The purpose of this Agreement is to provide a contractual mechanism by which DEVELOPER can pay for the costs incurred by CITY staff to review the park plans prepared by DEVELOPER for the neighborhood park proposed as part of the Project as one park master plan. The Parties acknowledge and agree that this Agreement does not guarantee that the City Council will approve the proposed park master plan. DEVELOPER acknowledges and agrees that in the event that the Park and Recreation Commission and/or the City Council does not approve the proposed park master plan, CITY has no liability to reimburse DEVELOPER for any of its costs to prepare the master plan, including, without limitation, payments made under this Agreement for CITY staff costs. 2. CITY Services CITY will perform the tasks as set forth in Exhibit A, Scope of Work and City Costs, attached and incorporated herein, contingent on DEVELOPER and its consultant preparing the master plan for the neighborhood park and the other submittals as referenced therein in a timely manner. CITY commits to work collaboratively with DEVELOPER and its consultant to exchange information as may be needed for the preparation of the master plan. The plans and deliverables referenced in Exhibit A are subject to CITY s written approval, which approval will not be unreasonably withheld, conditioned, or delayed. 3. Payment 2 Page 6 of 13
7 As set forth in Exhibit A, the total estimated CITY cost to complete the preparation and adoption of the park master plan for the neighborhood park sites is $12,410. The City requests a $20,000 minimum deposit to cover the cost of preparation and adoption of the park master plan and the estimated costs of $12,410 will be deducted from this minimum deposit. Any remaining funds will be applied toward the future turnkey agreement relating to park construction. The Parties acknowledge and agree that this amount is only a good faith estimate and that CITY does not guarantee that this amount will be sufficient to cover CITY s costs to perform the work set forth in Exhibit A. If during the term of this Agreement CITY determines that additional funds will be required to complete the CITY tasks, CITY will notify DEVELOPER and the Parties shall meet to determine whether to amend this Agreement to increase the total consideration, if the additional funds can be paid under the subsequent turnkey agreement, or to terminate this Agreement. Under no circumstances, however, will DEVELOPER be liable for costs in excess of $12,410 without DEVELOPER S prior written approval. CITY may deduct from the Initial Deposit of $20,000 payment for CITY staff time actually expended in accordance with the fully burdened hourly rate for each CITY staff, as identified in Exhibit A. If there are any CITY costs for tasks under this Agreement which are not reimbursed from the Initial Deposit, then CITY may require DEVELOPER to pay such costs under the turnkey agreement for the neighborhood park prior to CITY s execution of that agreement. 4. Term and Termination This Agreement shall become effective on the last date it is signed by both Parties and shall remain in effect until the date the City Council acts to approve or disapprove the park master plan, subject to the remaining obligation of CITY to reimburse DEVELOPER as set forth in Section 3, above. Either Party may terminate this Agreement for its convenience by providing at least ten (10) days advance written notice to the other Party in the manner specified in Section 5, below. 5. Notices Any notice to a party required or called for in this Agreement shall be served in person, or by deposit in the U.S. Mail, first class postage prepaid, to the address set forth below. A party may change a notice address only by providing written notice thereof to the other party. CITY: City of Sacramento, Parks Department Attn: Raymond Costantino New City Hall 3 DEVELOPER: Lauren Stickelman Division President Beazer Homes Holdings, LLC Page 7 of 13
8 915 I Street, 3rd Floor 2710 Gateway Oaks Drive, Suite 190-N Sacramento, CA Sacramento, CA Phone: (916) Indemnity DEVELOPER shall pay its consultant and all persons who perform labor or provide materials for performance of the tasks to prepare the park master plan. DEVELOPER shall indemnify and hold harmless CITY from and against any and all liens, claims, demands, costs or expenses of whatsoever nature in any way connected with or arising out of such work done, labor performed, or materials furnished to DEVELOPER or CITY for the preparation and approval of the park master plan under his Agreement. DEVELOPER shall also defend, indemnify and hold harmless CITY and its officers, employees, and agents against and from all actions, damages, costs, liability, claims, losses, judgments, penalties and expenses of every type and description, including, but not limited to, any fees and/or costs reasonably incurred by CITY s staff attorneys or outside attorneys, and any other fees and expenses incurred which arise directly or indirectly from any action or failure to act by DEVELOPER and its officers, employees, contractors, and agents in connection with the performance of any work under this Agreement. The indemnity provisions of this Section 6 shall survive the expiration or termination of this Agreement. 7. Independent Contractors; No Joint Venture It is understood and agreed that each Party is an independent organization and that this Agreement shall not create a relationship between the CITY and DEVELOPER of employer-employee, joint venture, partnership, or any other relationship of association. Except as expressly provided in this Agreement, no Party shall have the authority, express or implied, to act on behalf of the other Party in any capacity whatsoever as an agent, nor bind the other Party to any obligations whatsoever. 8. No Third Party Beneficiaries This Agreement is for the sole benefit of the Parties and no other person or entity shall be entitled to rely upon any term of this Agreement, to receive any benefit from this Agreement, or to enforce this Agreement. 9. Non-Waiver 4 Page 8 of 13
9 Waiver of any breach of, or default under, this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach either of the same or of another provision of this Agreement. 10. Governing Law The interpretation and enforcement of this Agreement shall be governed by the laws of the State of California, the state in which the Agreement is signed. 11. Counterparts This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument. 12. Captions The headings or captions contained in this Agreement are for identification purposes only and shall have no effect upon the construction or interpretation of this Agreement. 13. Ambiguities The Parties have each carefully reviewed and have agreed to each term of this Agreement. No ambiguity shall be presumed to be construed against either Party. 14. Entire Agreement; Modification This Agreement contains all of the terms and conditions as agreed upon by the parties, and supersedes any and all oral or written communications by and between the Parties. No waiver, alteration, modification, or termination of this Agreement shall be valid unless made in writing and signed by the Parties. In the event of a conflict between this Agreement and any other agreement or understanding executed by the Parties subsequent to the commencement of this Agreement, the terms of this Agreement shall prevail and be controlling unless such other agreement expressly provides to the contrary. 15. Authorization Each individual executing this Agreement on behalf of any entity represents and warrants that he or she has been duly authorized to do so by the entity on whose behalf he or she executes this Agreement and said entity will thereby be obligated to perform the terms of this Agreement. IN WITNESS WHEREOF, CITY and DEVELOPER have executed this Agreement on the date hereinabove first written. 5 Page 9 of 13
10 CITY OF SACRAMENTO By: Shannon Brown Youth, Parks and Community Enrichment Department For: Howard Chan, City Manager By: Lauren Stickelman Division President Beazer Homes Holdings, LLC APPROVED AS TO FORM: By: Senior Deputy City Attorney ATTEST: By: Assistant City Clerk 6 Page 10 of 13
11 Exhibit A Scope of Work and City Costs Cove Park Master Plan Service Agreement: City Staff Cost Estimate City Staff: JW (Jason Wiesemann, Project Manager) SP (Senior Park Planner) SLA (Supervising Landscape. Architect) EL (Park Maintenance Manager) HOURLY RATES Project Manager $210 Supervising Landscape Architect $275 Park Planner $210 Tasks 1. Start-up Meeting ($1,260) Research project background; prepare background materials for consultant; attend meetings to review process / neighborhood amenities / City park standards. City Staff: SP, SLA, JW 2. Public Workshops (1) ($2,230 per workshop) Assist in workshop coordination with District 3 Council Office; review workshop flyer and mail list; review opportunities / constraints; attend workshops and introduce consultant; respond to questions as appropriate; review meeting notes; attend follow-up meetings to review public comments; provide direction as needed. City Staff: SLA, JW 3. Concept Design ($2,230) Reviews consultant s draft concept designs (review park name; complete CPTED (Crime Prevention through Environmental Design) analysis; provide comments; attend meetings with consultant to review staff comments. City Staff: SLA, JW, EL 4. Draft Master Plan ($2,230) Review consultant s draft master plan; attend meetings to review staff comments. City Staff: SLA, JW, EL 5. Parks & Recreation Commission Meeting ($2,230) Schedule and prepare staff report for Commission review; attend meeting. City Staff: SP, SLA, JW 6. City Council Report / Meeting ($2,230) Draft park master plan report and City Council Resolution; attend City Council meeting. City Staff: SP, SLA, JW Initial Deposit $20,000; Total Cost Estimate: $12,410; Remaining Funds ($7,590) Are Applied Toward Turnkey Agreement 7 Page 11 of 13
12 RESOLUTION NO Adopted by the Sacramento City Council ESTABLISHING RIVER OAKS (THE COVE ) PARK DEVELOPMENT PROJECT (L ), ACCEPTING SERVICE AGREEMENT PAYMENT AND ESTABLISHING REVENUE AND EXPENDITURE BUDGET BACKGROUND A. The River Oaks development project (P01-132) (the Cove ) is a 591 unit residential subdivision encompassing 83.3 acres and located within South Natomas Community Plan. The development project includes a 1.9 -acre neighborhood park to serve the new residents. B. The developer, Beazer Homes Holdings, LLC, intends to build the neighborhood park under a Park Impact Fee Agreement. C. Beazer Homes Holdings, LLC has entered into a Park Master Plan Service Agreement to prepare the master plan for the neighborhood park and pay for the City s costs for the review and approval of the master plan the amount of $20,000. D. A capital improvement project (CIP) needs to be established for the River Oaks (the Cove ) Park Development Project to accept and expend the funds. 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. A new capital improvement project for the River Oaks (the Cove ) Park Development Project (L ) is established. Payment of $20,000 from Beazer Homes Holdings, LLC pursuant to the Park Master Plan Services Agreement is accepted into the Park Development Impact Fee (PIF) Fund (Fund 3204). A revenue budget in the Youth, Parks, and Community Enrichment Department operating budget in the amount of $20,000 in the PIF Fund (Fund 3204) is established and an expenditure budget for the River Oaks (the Cove ) Park Development (L ) in the amount of $20,000 in the PIF Fund (Fund 3204) is established. Page 12 of 13
13 99 þ } "5! $ # Cove River Oaks Park 80 "! $ # 80 " $! # 80 " $! # 80, + * þ) } "!5 160 $ # 80, + * ) 50 ( / 16 þ } 99 þ } " $! #5 Parcel Lines 99 þ } TE GA YO WA S AK DR E Y LL BE R WA EU FL AU SE RO WAY ROSIER CIR L NO SI G CI R ROS W RIVER DR W EL CAMINO AVE UNITY CIR UNITY PARK ST ORCHARD LN Cove (aka) River Oaks Project Area C o v e / R i v e r O aks Park Vicinity Map ² DISCLAIMER: All maps & data provided are subject to Terms of Use identified in the City of Sacramento Open Data Policy at rtal.cityofsacramento.org/opendata Page 13 of Feet \\ewgis01\shares\it_gis\projects\parks\projects\cove-riveroakspark mxd DavidWilcox
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