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Home My WebLink About2007/08/14 Item 4 CITY COUNCIL AGENDA STATEMENT :S}\~ CllY OF ~.b (HULA VISTA 08/14/07 Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, APPROPRIATING $49,903.50 FROM THE AVAILABLE FUND BALANCE OF THE TRAFFIC SIGNAL FUND FOR THE CITY SHARE OF TRAFFIC SIGNAL INSTALLATION COSTS AT MAIN STREET AND AUTO PARK PLACE AND AUTHORIZING THE DIRECTOR OF FINANCE TO REIMBURSE THE DEVELOPER SUBMITTED BY: REVIEWED BY: CITY ENGINEER S-; CITY MANAGEjlJlm/ 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 SUilload 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. SUilload Enterprises initially paid the full cost of the traffic signal project with an understanding that reimbursements would follow from the City and the developer of Auto Park North upon completion of the traffic signal proj ecl. 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 15378(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. 4-1 08/14/07, Item 4- Page 2 of4 RECOMMENDATION That Council approve the Resolution: 1. Appropriating funds in the amount of $49,903.50 from the Traffic Signal Fund to reimburse the developer (Sunroad Enterprises) for a portion of 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 of the 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 Avenue 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 the Parcel Map Improvement Agreement and associated bonds for Auto Park North 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. After several discussions with Mr. Knowlton and Sunroad to resolve the situation so that Sunroad Toyota could open as planned, Mr. Knowlton submitted 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. Meanwhile, the Toyota dealership constructed their street improvements on the south side of Main Street and when it became apparent the traffic signal at Auto Park Place would not be installed in time for the anticipated opening of the Toyota dealership, Sunroad Enterprises proceeded with installing the signal at an estimated total project cost of $230,000. In another attempt to resolve this dispute so that the Toyota dealership could open on schedule, the City agreed to contribute one-quarter of the cost knowing that 4-2 08/14/07, Item 4- Pagd of 4 Sunroad Enterprises would be contributing one-quarter of the cost and Mr. Knowlton's $115,000 cash deposit would fund one-half ofthe cost. All work was completed and the signal was activated in late December 2006. In May 2007, Sunroad Enterprises submitted a traffic signal cost study totaling $222,398.86 and requested reimbursement from the Auto Park North developer and the City per verbal agreement with the City Engineer in November 2005. However, Mr. Knowlton requested further review and staff ultimately did not agree with many of the line items in the cost study such as construction administration soft costs; Sunroad was not able to provide additional justification for these items. Because Sunroad, Mr. Knowlton and the City did not enter into a formal reimbursement agreement and additional justification for soft costs was not available, staff is proposing basing the traffic signal reimbursement on an existing policy used for reimbursing developers involved with Community Facilities Districts. The policy comes from the "Statement Of Goals and Policies Regarding The Establishment Of Community Facilities Districts" adopted on December 8, 1998. The policy allows for the payment of public improvement facilities such as traffic signals to include civil engineering design costs in the amount of7.5% of the cost of the improvements and construction administration costs of 1.75% of the cost of the improvements. Sunroad has agreed to this method of reimbursement; however it is our understanding that Mr. Knowlton may not be in agreement with this approach. After a review of the available documentation, traffic signal costs of $179,013.00 and associated road striping costs of $3,700.00 are recommended as the basis for the reimbursement calculation. Using the CFD method, a total signal cost of $199,614.00 is recommended, which includes confirmed construction costs provided to the City by Sunroad's contractor, 7.5% allowance for design and 1.75% allowance for administrative costs. With Surrroad Enterprises paying $49,903.50 (25%) and the remainder being reimbursed as follows: $99,807.00 (50%) from Mr. Knowlton's cash deposit and $49,903.50 (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. This item was originally scheduled to be before City Council on March 6, 2007, but was pulled with hopes that Mr. Knowlton's remaining concerns could be addressed. However, we have been unable to reach full resolution. Staff feels that this is a fair and equitable way to resolve this situation, fulfilling the spirit of the agreement made with Sunroad helping reduce their cost for installing the traffic signal and supporting the opening of their dealership while partially relieving Auto Park North from the full responsibility of the traffic signal installation as previously required by their Tentative Map conditions and returning $15,193.00 to Mr. Knowlton. 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. 4-3 08/14/07, itemL Page 4 of 4 FISCAL IMPACT There is no impact to the General Fund as a result of this action. Sunroad Enterprises is contributing 25% of the total cost, the City's 25% ($49,903.50) reimbursement to Sunroad Enterprises will be funded from the available Traffic Signal funds and the remaining 50% ($99,807.00) reimbursement will be funded by the Auto Park North developer's deposit account. Prepared by: Silvester Evetovich, Principal Civil Engineer, Engineering Department J: IEngineerlAG EN DA ICAS2007108-14-07ISunroad Reimbursementt.doc 4-4 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, APPROPRIATING $49,903.50 FROM THE AVAILABLE FUND BALANCE OF THE TRAFFIC SIGNAL FUND FOR THE CITY SHARE OF TRAFFIC SIGNAL INSTALLATION COSTS AT MAIN STREET AND AUTO PARK PLACE AND AUTHORIZING THE DIRECTOR OF FINANCE TO REIMBURSE THE DEVELOPER 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 $49,903.50 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 Scott Tulloch City Engineer ~~~/L~ Ann Moore City Attorney H:\ENGINEER\RESOS\Resos2007\08-14-07\SunroadReimbursement Revised by EC.doc 4-5