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HomeMy WebLinkAboutAgenda Statement 1986/10/07 Item 24 r COUNCIL AGENDA STATEMENT Item 24 Meeting Date 10/7/86 ITEM TITLE: Public hearing on the formation of a reimbursement district at the southwest corner of the Bonita Road/"E" Street intersection Resolution/~7~r ~ Establishing a reimbursement district at the southwest corner of Bonita Road/"E" Street intersection and approving a reimbursement agreement with the owners of the benefited parcel SUBMITTED BY: Director of Public Works/City Engineer REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) On September 16, 1986, the City Council by Resolution No. 12715 ordered a public hearing to be held October 7, 1986, on the formation of a reimbursement district at the southwest corner of Bonita Road/"E" Street intersection. The reimbursement district is required to assure that the City will be reimbursed $17,970.06 which the City advanced to install street improvements adjacent to a parcel which is owned by Will and Karen Gardner and John Gardner. RECOMMENDATION: That Council: a. Hold the public hearing and b. Adopt the resolution establishing the reimbursement district and approving the reimbursement agreement with the owners of the benefited parcel. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On February 4, 1986, Council, by Resolution No. 12355, awarded a contract to Select Electric, Inc. for the construction of street improvements on Bonita Road and "E" Street. Because of Safety and Engineering requirements, the project improved the frontage along a vacant parcel of land west of Bonita Road and south of "E" Street. Funds for this project were approved in the FY 1984-85 Capital Improvement Program budget with the condition that the cost for the vacant land improvements be recovered by the City through a reimbursement district when the land is subdivided and/or developed. The street improvements built adjacent to the vacant parcel (Assessor's Parcel No. 57U-1320-L4) are as follows: Page 2, Item 24 Meeting Date 10 86 Actual Cost for Improvements Built Adjacent to Parcel 570-130-24 No. Item Quantity Unit Unit Price Amount 1 6" P.C.C, curb & gutter 189.13 L.F. $ 10.00 $ 1,891.30 2 4" P.C.C. sidewalk `L15.10 S.F. 2.75 5y1.53 3 4" P.C.C. sidewalk ramp 108.50 S.F. 2.75 298.37 4 Asphalt concrete paving 75.13 Ton 60.00 4,507.83 5 Processed misc. base 163.89 Ton 15.57 2,551.77 6 4' type "C" inlet L.S. L.S. 2,500.00 2,500.00 7 18" R.C.P - 1350D 20.00 L.F. 57.00 1,140.00 8 Traffic control L.S. L.S. 1,500.00 1,500.00 9 Excavation & disposal L.S. L.S. 2,989.20 2,989.29 TOTAL COST $17,970.06 Chapter 15.50 of the City Code contains a procedure for the establishment of reimbursement districts which assures that a benefited property owner reimburses another party for the excess costs it incurs when providing public improvements benefiting property other than its own or in excess of its obligation. In accordance with the Code, the City Council is required to hold a public hearing on the formation of the reimbursement district where "all persons desiring to testify with respect to: tree necessity of said public improvements, the cost of said public improvements, the benefited area or, the amount of the excess costs, may appear and be heard." The City Clerk has duly notified the property owners and published the required notices for this public hearing. We, therefore, recommend that Council hold the public hearing and establish the reimbursement district which consists of one benefited parcel (see attached plat). We further recommend that Council approve a reimbursement agreement between the City and Will and Karen Gardner and John Gardner, owners of the benefited parcel through which they agree to reimburse the City the cost of the improvements ($17,970.00) plus seven percent (7%) simple interest per annum from July 8, 1986 (when the improvements were accepted by the City Council). The owners also agree to reimburse the City upon the development of their property, pursuant to a request for a building permit or an application for subdivision of land. Subsequent to Council's establishment of the reimbursement district and approval of the reimbursement agreement, the City Clerk will record a copy of the Council's resolution with the County Recorder. It should be noted that the $17,970.06 does not include the cost for Engineering or administrative expenses associated with the construction of the project or the cost of the reimbursement district formation proceedings. The reasons for not charging the property owner engineering and administrative costs are: Page 3, Item 24 Meeting Date 1 6 1. The realignment of Bonita Road at the intersection was a general benefit to the public and a City-initiated project. 2. The property owner dedicated voluntarily the additional right-of-way that was needed. 3. City Council Policy 505-01 with respect to the 1911 Block Act Program states that the City, at no cost to the property owner shall provide all engineering, inspection and administrative services. Also, not included is the cost of the traffic signal because the developers will be subject to the City's Traffic Signal Fee when and if they develop their property. FISCAL IMPACT: City will recover $17,970.06 advanced to install improvements at the southwest corner of the Bonita Road/"E" Street intersection. The City will bear the cost for Engineering and administrative expense for the formation of the district which is estimated to be about $1,000. WPC 23413E the City Council of Chula Vista, California Dated ~ ~ ,~