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Home My WebLink About2007/03/06 Item 5 CITY COUNCIL AGENDA STATEMENT ~'Yf:. CITY OF ~~ CHUlA VISTA 03/06/07 Item ~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, APPROPRIATING FUNDS FROM THE TRAFFIC SIGNAL FUND FOR COSTS INVOLVED WITH INSTALLATION OF A TRAFFIC SIGNAL AT MAIN STREET AND AUTO PARK PLACE SUBMITTED BY: REVIEWED BY: ~ CITY ENGINEER c:,. I ;({ INTERIM CITY MANAGER 'JI 4/5THS VOTE: YES X NO BACKGROUND In 2003, the City of Chula Vista approved a development including an auto park and other auto related businesses by Mr. Hooper Knowlton on the north side of Main Street at Auto Park Place (Auto Park North). In 2004, the City approved an auto park development by Sunroad Enterprises on the south side of Main Street directly across from Auto Park North (Auto Park East). As a result of these developments, a new traffic signal was needed at the intersection of Main Street and Auto Park Place. Tonight, City Council will consider the appropriation of funds from the City's Traffic Signal Fund for the City's share of signalizing the four-legged intersection. Total project cost was initially paid by Sunroad Enterprises with an understanding that reimbursements would follow from the City and the developer of Auto Park North upon project completion. ENVIRONMENTAL REVIEW: The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity, appropriation of funds, is not a "Project" as defined under Section l5378(b)(5) of the State CEQA Guidelines; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That Council approve the Resolution: 5-1 03/06/07, Item~ Page 2 of3 1. Appropriating funds in the amount of $54,183.32 from the Traffic Signal Fund to reimburse the developer (Sunroad Enterprises) for the cost of installing a traffic signal at Main Street and Auto Park Place. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION In August 2003, the City conditionally approved Tentative Parcel Map 03-03 for Auto Park North located on the north side of Main Street east of Brandywine Avenue. The developer, Mr. Hooper Knowlton, was required to install many public street improvements including traffic signals at the two intersections (Auto Park Place and Auto Park Avenue) along the project frontage at Main Street. Mr. Knowlton entered into a Parcel Map Improvement Agreement to install these public improvements within two years of the date ofthe agreement (by August 26,2005). In August 2004, the City conditionally approved Tentative Parcel Map 01-08 for Auto Park East located on the south side of Main Street opposite Auto Park North. The developer, Mr. Fred Borst, was also required to install traffic signals (along with other improvements to Main Street) at Auto Park Place and Auto Park A venue in the event that these traffic signals were not operational at the time the developer wished to obtain building permits. Mr. Borst did not enter into a Parcel Map Improvement Agreement nor did he apply for a final parcel map, but he sold one of his existing parcels to Sunroad Enterprises who then obtained approval from the City in May 2005 to build the Toyota dealership within Auto Park East. The Tentative Parcel Map approved with Mr. Borst has since expired. However, as part of the Toyota dealership approval, Sunroad Enterprises was required to construct its associated public street improvements along the Main Street frontage together with the traffic signal at Auto Park Place ifMr. Knowlton did not install the signal in time for Toyota dealership building permits. Although Mr. Knowlton's Parcel Map Improvement Agreement and associated bonds guaranteed the construction of public improvements including the traffic signal at Auto Park Place, the work was not completed within the required two-year construction period. On September 21, 2005, the City sent a default letter to Mr. Knowlton stating that all the public improvements must be completed to the satisfaction of the City Engineer or the City would proceed to make demand upon his bonds. By mid-December 2005, there was little activity at the Auto Park North job site and the City sent a second default letter to Mr. Knowlton. This time the City requested that Mr. Knowlton enter into an Amendment to the original Parcel Map Improvement Agreement together with submitting new construction bonds and a cash deposit of $115,000 for half of the traffic signal at Auto Park Place. Mr. Knowlton responded to the second default letter by submitting a cash deposit of $115,000 for half the estimated costs of the traffic signal but did not sign the Amended Parcel Map Improvement Agreement nor post new bonds. Soon construction activity at 5-2 03/06/07, Item2 Page 3 of3 Mr. Knowlton's job site accelerated and therefore staff expected that the required public improvements would be completed. Staff did not pursue the Amendment to the Parcel Map Improvement Agreement. Meanwhile, the Toyota dealership constructed their street improvements on the south side of Main Street and when it became apparent Mr. Knowlton would not install the traffic signal at Auto Park Place in time for the anticipated opening of the Toyota dealership, Sumoad Enterprises proceeded with installing the signal with an estimated total project cost of $230,000. The City agreed to contribute one-quarter of the cost with Sumoad Enterprises also contributing one-quarter of the cost, leaving Mr. Knowlton responsible for one-half of the cost to be covered by the $115,000 cash deposit provided in response to the second default letter. All work was completed and the signal was activated in late December 2006. Sumoad Enterprises has submitted an invoice from their traffic signal contractor in the amount of $216,733.29 and requested reimbursement from the Auto Park North developer and the City per verbal agreement with the City Engineer in November 2005. With Sumoad Enterprises paying $54,183.32 (25%), the remainder would be reimbursed; $108,366.64 (50%) from Mr. Knowlton's cash deposit and $54,183.32 (25%) from the City's Traffic Signal Fund which is consistent with Council Policy 478-01 allowing use of these funds when a significant benefit to the general public is identified. This project meets these criteria. The difference between Mr. Knowlton's cash deposit of $115,000.00 and the 50% reimbursement amount is $6,633.36. This remainder amount will be transferred into Mr. Knowlton's development account, which is in deficit by approximately $25,000.00. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action. FISCAL IMPACT There is no impact to the General Fund. Sumo ad Enterprises is contributing 25% of the total cost, the City's 25% ($54,183.32) reimbursement to Sumo ad Enterprises will be funded with available Traffic Signal funds and the remaining 50% ($108,366.64) reimbursement will be funded by the Auto Park North developer's deposit account with the remainder in that account ($6,633.36) will be transferred into that developer's other account which is in deficit by approximately $25,000. Prepared by: Silvester Evetovich, Principal Civil Engineer, Engineering Department J: IEngineerlAG ENDA ICAS2007103-06-07ISunroadReimbursement.doc 5-3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING FUNDS FROM THE TRAFFIC SIGNAL FUND FOR COSTS INVOLVED WITH INST ALLA TION OF A TRAFFIC SIGNAL AT MAIN STREET AND AUTO PARK PLACE. WHEREAS, in 2003, the Chula Vista City Council approved a development including an auto park and other auto related businesses by Mr. Hooper Knowlton on the north side of Main Street at Auto Park Place (Auto Park North); and WHEREAS, in 2004, the City approved an auto park development by Sunroad Enterprises on the south side of Main Street directly across from Auto Park North (Auto Park East); and WHEREAS, as a result of these developments, a new traffic signal was needed at the intersection of Main Street and Auto Park Place; and WHEREAS, Sunroad Enterprises installed the traffic signal and paid the total cost for the signal with an understanding that it would be partially reimbursed by the City and the developer of Auto Park North upon project completion. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves the appropriation of $54,183.32 to the Other Expenses Category of the Traffic Signal fund from the available balance of the fund for the City's share of the installation of the traffic signal at Main Street and Auto Park Place. Presented by Approved as to form by ~~~J ;U:~ Ann Moore City Attorney Scott Tulloch City Engineer H:\E:N(jINEER\RES()S\Resos20(J7\()3-0()~07\SLlllroadReil11bursel1lent Revised by EC.doc 5-4