RESOLUTION TO FORM THE REDSTONE PARKWAY BENEFIT DISTRICT

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1 Agenda Item No. 8A November 10, 2015 TO: FROM: SUBJECT: Honorable Mayor and City Council Attention: Laura C. Kuhn, City Manager Steven L. Hartwig, Director of Public Works/City Engineer RESOLUTION TO FORM THE REDSTONE PARKWAY BENEFIT DISTRICT DISCUSSION: Southtown Phase 1A is a residential development east of Vanden Road and west of Leisure Town Road. The developer of this subdivision, TRI Pointe Homes, has installed various public improvements that will benefit adjacent property owners. For instance, the developer of Southtown Phase 1A constructed Redstone Parkway that connects Leisure Town Road to Vanden Road and is required as part of the Southtown Phase 1A development, along with neighboring developments. Also included in Redstone Parkway are various utilities, storm drainage, and landscaping that not only benefit their development, but future developments. The adjacent properties that benefit from these improvements will pay their proportionate share when development of their particular property occurs. The benefit district has been prepared based on actual costs reviewed and approved by the City Engineer, per Section (C) 8 of the City s Land Use and Benefit Code. The Benefit District Engineer s Report (Attachment 1) was prepared by Phillippi Engineering for TRI Pointe Homes. This report was reviewed by Public Works Development Engineering and determined to be in conformance with the City s Municipal Code requirements for establishing a benefit district. The participants of this benefit district have been notified by the City of the proposal to create this district. Additionally, the City held an informal stakeholders meeting on September 16, 2015, and there has been no opposition to its formation. The duration of the benefit district is proposed to be 15 years, to provide a reasonable period of time for the properties in the area to build out. On October 13, 2015, the City Council adopted a Resolution of Intent to form the Redstone Parkway Benefit District and set the public hearing for the November 10, 2015, City Council meeting. FISCAL IMPACT: None. RECOMMENDATION: By simple motion, adopt the subject resolution. ATTACHMENTS: Resolution Action Item Attachment 1: Benefit District Engineer s Report Attachment 2: Area Map

2 RESOLUTION NO RESOLUTION TO FORM THE REDSTONE PARKWAY BENEFIT DISTRICT WHEREAS, the developer of the Southtown Phase 1A residential subdivision paid for the preparation of the construction documents and the improvements that benefit other properties in that area; and WHEREAS, an Engineer s Report has been prepared which explains the scope of the project, the cost of the work, how the properties in the benefit district will benefit from the project, the rules of the benefit district, which parcels are in the district, and how the costs will be spread to those parcels; and WHEREAS, the purpose of the benefit district is to provide partial reimbursement to that developer who paid up front for the improvements that benefit other properties in that area; and WHEREAS, the City of Vacaville desires that future users of these facilities share in part of the cost of the improvements; and WHEREAS, the City of Vacaville will only charge participants in the district a benefit district fee which shall be due at the time a final map is recorded or a building permit is issued, whichever comes first; and WHEREAS, the duration of the benefit district is 15 years to provide a reasonable period of time for the properties in the area to build out and pay the benefit. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville hereby approves the Redstone Parkway Benefit District. I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 10th day of November, 2015, by the following vote: ATTEST: AYES: NOES: ABSENT: Michelle A. Thornbrugh, City Clerk

3 Engineer s Report For Redstone Parkway Benefit District September

4 Table of contents 1. Purpose 2. Definitions 3. Description of the items in the Benefit District 4. Cost of the Improvements 5. Method of Assessment 6. Method and Timing of Payment 7. Compensation to City for Administering the Benefit District 8. District Boundaries 9. Beneficiary and Distribution of Payments 10. Term of the Benefit District 11. Waiver of the Benefit District Fee 12. Value Adjustment 13. Current Owners Exhibits Exhibit A - Benefit District Diagram Exhibit B - Cost of the Improvements Exhibit C Allocation of the Costs Exhibit D - Map of Roadway Assessment Segments Exhibit E - Map of Sanitary Sewer 2

5 1. Purpose - Southtown 1A (Tri-pointe) is a residential development east of Vanden Road and west of Leisure Town Road. The developer of this subdivision has installed various public improvements that will benefit other property owners. Those improvements are described in section 3 of this Engineer s Report. These improvements were not included in any previous Benefit District. Therefore, this Benefit District is proposed to be created for the following purposes: Establish the responsibility of property owners in that area to reimburse the developer of Southtown 1A for those improvements, establish the appropriate amount of their reimbursement, and establish a method of future payments for that future reimbursement. Comply with chapter of the City of Vacaville Land Use and Development Code (the local Benefit District Ordinance of the City of Vacaville). This Benefit District is being formed for those properties that meet the following criteria: The property will be benefitted by the improvement, the improvement would have been a normal requirement for the development of that property, and the property would have had to install the improvement if it had developed first. Benefit District participants will be required to pay the assessments listed in this report at such time as development occurs on a participant s property. No payment will be due until development occurs. The assessments are deemed to be that property s fair share of the costs of these improvements. 2. Definitions - Participant A participant is the owner of any property included within the boundary of this Benefit District. 3

6 3. Description of the Items in the Benefit District The following is a description of the improvements constructed by Southtown 1A that benefit other properties. How and why the costs of these improvement should be shared is included in Section 5 (Method of Assessment). These improvements can be segregated into six categories and are shown on Exhibit D: Offsite Redstone Parkway Improvements This section of Redstone Parkway extends from Vanden Road to the western boundary of Southtown 1A. It is roughly 1,100 feet long. The south side of this segment is totally adjacent to Southtown 3. The western portion of the north side is adjacent to the future Casa dei Venti subdivision, and the eastern portion of the north side is adjacent to a future pocket park. It is a collector roadway (40 feet curb to curb) with a structural section of 5 AC on 18 AB. Sidewalks are not included. They will be constructed by the adjacent properties when they develop. Handicapped ramps at the Vanden Road intersection are included. For the most part drainage, potable water, and non-potable water facilities have been previously installed by others, and those costs are included in other Benefit Districts. Some minor utilities are included in the project (local drainage crossings and facilities, a water stubout to a future street in Southtown 3, and raising existing utility structures to grade). The water stubout will be assessed separately. Street lighting is included in this project, as are striping and signs. Onsite Redstone Parkway improvements A portion of the onsite Redstone Parkway is fronted on the northeast side by the Southtown 1A subdivision and the future Southtown 3 development on the southwest side. This portion begins at the east end of the offsite portion and ends at Lava Street. It is also a collector roadway (40 feet curb to curb) with a structural section of 5 AC on 18 AB. The improvements include a 6 foot wide sidewalk and setback landscaping (an average of 12 feet wide). The landscaping will be a separate item in calculating the assessments. For the most part drainage, potable water, and non-potable water have been installed by others and the costs of those improvements have been included in other Benefit Districts Some minor utilities are included in the project (local drainage crossing and associated facilities. Street lighting is included in these improvements, as are striping and signs. The sanitary sewer in this street will be assessed as a separate item. 4

7 Lava Street The developer of Southtown 1A is also constructing a stub of a future street that will connect to the Southtown 3 subdivision. Lava Street is 40 foot wide (curb to curb) with a structural section of 5 AC on; 18 AB. The surface improvements include a six foot sidewalk and setback landscaping (average width approximately 6 feet wide). The landscaping will be a separate item in calculating the assessments. The utility improvements will also include potable water, nonpotabale water, and sanitary sewer facilities. Street lighting is included, as well as striping and signing. Sanitary Sewer The developer of Southtown 1A is constructing an oversized sanitary sewer main starting at the southerly end of the Lava Street stub, continuing to the intersection of Lava Street and Redstone Parkway, and extending northerly on Redstone Parkway past Ginger Street, and then through the future Casa dei Venti subdivision to the south side of the Alamo Creek channel. The previously approved Southeast Vanden Benefit District will reimburse the developer for the oversizing of that main, but the cost of a theoretical 8 sanitary sewer through that alignment should be shared between this developer and the other two properties. How this sharing is to be done is shown in section 5 (Method of Assessment). Landscaping Setback landscaping is included along the onsite portion of Redstone Parkway and also on Lava Street Park Frontage Street A small portion of Ginger Steet in Southtown 1A fronts on the future pocket park that lies between Southtown 1A, Southtown 3, and Casa dei Venti. 4. Costs of the Improvements The actual costs of the improvement in this Benefit District are shown in Exhibit B. 5

8 5. Method of Assessment The proposed sharing of the costs of these improvements is based on the following concept: The costs of public improvements in a street are normally shared by the property owners on each side of the street. However the first property owner to develop will normally need to construct far more than just his share of those improvements in order for that first development to function properly. In the case of a public utility, the first property to developer installs the entire utility (since it cannot be constructed in parts). The property owner across the street subsequently reimburses his neighbor for his share of those improvements, either by means of a private agreement, a Benefit District, or some other method. Similarly, in the case of surface improvements the first developer often installs more than just his half of the road, with his across the street neighbor paying for his share later in a Benefit District. Therefore, the cost of the improvements in this Engineer s Report are to be shared between Southtown 1A and the two adjacent properties (Southtown 3 and the property for which a Tentative Map entitled Casa dei Venti has been submitted to the City of Vacaville for approval). Offsite Redstone parkway Each property fronting this portion of Redstone Parkway will pay for the improvement on its side of the street, with the only exception being that neither party will be assessed for any temporary improvement. For the south side of the roadway a 100 foot section of asphalt Bern was installed in the location of the future intersection. That asphalt berm is considered temporary and will not be assessed. On the other side 100 feet of the new curb and gutter will need to be removed for an intersection in the future as such time as that property is developed. Therefore, the cost of 100 feet of curb and gutter will be deducted from the length of along the north side of the roadway. A portion of this segment fronts the future pocket park. That portion of this roadway will be shared by the three parties on a per unit basis. Onsite Redstone Parkway The southeastern half of this street will be assessed to Southtown 3. No temporary facilities are being construction in this portion of the roadway. 6

9 Lava Street The surface improvement on the north half of this street (which includes sidewalk and landscaping) will be assessed to Southtown 3. The water mains (potable water, non-potable water) will be shared by Southtown 3 and Southtown 1A on a 50/50 basis. The over sizing of the sanitary sewer on this street will be reimbursed to the developer of Southtown 1A by the Southeast Vanden Benefit District. That leaves a theoretical 8 sewer on Lava Street which will be shared by the two fronting owners. The three utility stubs that are to serve the future Southtown 3 cul de sac will be entirely assessed to Southtown 3. The cost of the storm drain on Lava Street will be reimbursed to the developer of Southtown 1A by the Southeast Vanden Benefit District. The landscaping will be assessed as a separate item. Landscaping The landscaping on the north side of Lava Street and the south side of the onsite Redstone Parkway will be assessed entirely to Southtown 3. Sanitary Sewer Assessment The theoretical 8 sanitary sewer within Redstone Parkway, and also extending up to the southern boundary of Casa dei Venti will be shared equally between Southtown Phase 1A and Southtown 3. The theoretical 8 sanitary sewer within the future Casa dei Venti will be assessed entirely to that development. Park Frontage Street This is a small portion of Ginger Street within Southtown 1A that fronts on the future pocket park. The costs for half of that roadway will be shared by all three parties on an EDU basis. The spread of the cost of these improvements is shown on Exhibits B and C. 7

10 6. Method and Timing of Payment Payments for single family residential projects shall be due at the time a Final Map is recorded that creates single family lots. Payments shall be proportionate to the number of units on the Final Map, compared with the total units in the project. For example, if the Final Map included 25% of the total units of the project, 25% of this Benefit District fee would be due at that time. Payments for multiple family residential projects shall be due at either (a) the time of issuance of the first multiple family building permit on a property, or (b) the recordation of a parcel map to divide a multiple family project into phases, whichever comes first. The filing of a parcel map on a single family residential project, which does not create any buildable lots would not require the payment of Benefit District fees. 7. Compensation to City for Administering the Benefit District The City of Vacaville charges a fee of $2121 for the creation of a Benefit District and then also charges a 0.5 % administrative fee each time a fee is collected. The purpose these fees is to reimburse the City for the time it takes to administer a Benefit District. 8. District Boundaries - The boundaries of the Benefit District are shown on Exhibit A. 9. Beneficiary and Distribution of Payments The beneficiary of this Benefit District will be as follows: TRI Pointe Homes, Inc Jamboree Road, Suite 200 Irvine, CA, It is the responsibility of the beneficiary to inform the City as to any change in name or address, or any subsequent agreement with any other party relating to being the beneficiary of this Benefit District. 8

11 10. Term of the Benefit District The Benefit District will remain in effect for fifteen (15) years from the date of City Council approval of the benefit District. 11. Waiver of the Benefit District Fee The City reserves the right to waive the payment of the Benefit District fee, if it finds that it is in the best interest of the City to do so. However, if the fee is waived, the city will be responsible for the payment of the benefificairy. 12. Value Adjustment The payments for this Benefit District shall include a value adjustment, which shall be calculated in accordance with the City Benefit District Ordinance. 13. Current Owners Benefit Assessor s Parcel Owner and Address District Number(s) A AGAPE LLC (Southtown 3) 2150 California Street Mountain View, CA, B Vanden II (Casa dei Venti) P.O. Box 1999 Novato, CA,

12 Attachments Exhibit A - Benefit District Diagram Exhibit B - Cost of the Improvements Exhibit C Allocation of the Costs Exhibit D - Map of Roadway Assessment Segments Exhibit E - Map of Sanitary Sewer 10

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