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HomeMy WebLinkAboutAgenda Report - May 17, 2006 K-01AGENDA ITEM 144 CITY OF LORI COUNCIL COMMUNICATION 7M AGENDA TITLE: Authorke City Manager to Execute Fee Adjustment Agreement for Vintage Oaks Subdivision MEETING DATE: May 17, 2006 (Carried over from April 19 meeting) PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council authorize the City Manager to execute an impact fee adjustment agreement for Vintage Oaks Subdivision. BACKGROUND INFORMATION: On November 3, 2004, Council approved Resolution No. 2004-239 which updated development impact mitigation fees. The old fee was $57,266 per acre and it increased by $13,475 to $70,741 per acre, or 24%, effective January 2005, including the regular Engineering News -Record update. At that time, following public discussion, the Council provided in the resolution for a window of time for projects with a completed development application to pay the fees at the previous rate provided the fees were actually paid by December 31, 2005. On September 21, 2005, the City Council approved the Final Map and Improvement Agreement for the Vintage Oaks Subdivision project which included the following language regarding payment of impact fees: Development Impact Mitigation Fees for water, wastewater, street improvements, storm drain, police, fire, parks and recreation and general city facilities are required for this project. Payment of the fees shall be deferred until the project is ready for acceptance. Acceptance of the public improvements will be contingent upon payment of the deferred fees. The amounts shown in this agreement for these deferred fees are those in effect at the time of execution of this agreement and are subject to revision if not paid prior to January 1, 2006, in conformance with Resolution No. 2004-238, approved by the City Council on November 3, 2004. If the deferred fees are not paid prior to January 1, 2006, the actual fees to be paid will be those in effect at the time of payment. If payment for the deferred fees is made on or after January 1, 2006, this agreement shall in no way limit the City's ability to charge the Developer the fees in effect at the time the Developer pays the deferred fees. On Dece nber 21, 2005, the City Council adopted another resolution effectively eliminating this fee window, providing that "The increased fees in Resolution No. 2004-238 will not apply to any project which has satisfied all elements necessary under California Law to be exempt from increases in impact fees." On January 31, 2006, the City sent a letter to the Vintage Oaks developers, represented by Mr. Jeffrey Kirst, with an updated invoice for the fees, since the project was nearing completion. The fees increased by $51,693.07 (from $249,576.47 to $301,269.54). Staff's position is that had he contacted us regarding paying the fees in December of 2005, we would have accepted payment at the previous rates. The developer was well aware of the scheduled increase (he spoke at the Council meeting in 2004), however, he was under the impression he fell within the "window" for the previous fees and is disputing the increase being applied to his project. He has also stated that had he known staff would have APPROVED: -- ----; Blair Kn ity Manager JSDEV_SERWintage Oaks\UeeAdjustment.doc 5/212006 Authorize City Manager to Execute Fee Adjustment Agreement for Vintage Oaks Subdivision May 17, 2046 (Carried over from April 19 meeting) Page 2 accepted the fees, they would have been paid in December. Finally, he notes that completion of his project was delayed due to City work on Lower Sacramento Road and related coordination issues. Due to the communication not being entirely clear and the desire to avoid a formal dispute, we have agreed that splitting the increase in half is a reasonable compromise. Staff has also made it clear to the developer that waiver of all or part of the fees would require Council approval. If approved, the City Attorney would draft a simple agreement describing the fee reduction for execution by the applicant and the City Manager. FISCAL WPACT: Approval would mean losing $25,846.54 in fee program revenue but avoiding potential, unknown costs to resolve any formal dispute. FUNDING AVAILABLE: Not applicable. Ual 4kd Richard C. Prima, Public Works Directo RCPlpmf cc: Jeffery Kirst, Vintage Oaks L.P. J:SDEV_SER\AVintage OakslCFeeAdjustment.doc 5/2/2006 -f�- OG Mar& 15, 2006 Revia d May 15, 2006 Vintme CWks Dues 1. Project was limited to particular work days due to Lower Sac Work a. Concrete work and repairs were limited to Saturday b. Paving was limited to Saturday Received billing for Saturday inspection overtime, but that was due to restriction em sed by the C ky's project. 2. Ahbough the Cky agreement indicates that Vintage Oaks was to install and plant all of the required bixiscaping, I was told by Mr. Sandelin that Vintage Oaks was responsible for work up to and including it's wall, City would do all other work with the Lower Sac project. The landscape work is outside the wall. There was so much negotiating between the City and adjacent neighbors to get the Lower Sac project started on time 1 assumed that the City staff wanted control of the right of way, so I did not consider this to be an issue with credits or charges to be calculated by the City later and because I asked Mr. Sandelin two different occasions and was told the same thing, the City would construct everything outside the wall. a. When the right of way boundary line and wall location became an issue, I was then told landscape work was developer responsibility as shown in the agreement b. Due to that, sleeves that were to cross Vintage Oaks Court for the irrigation line and landscape controller wire were left out by Vintage Oaks as it was on Landscape plans and outside the block wail, so Vintage Oaks thought that the City was doing that work. 3. City work also 1eR out irrigation line in Lower Sac to feed City Landscaping on Lover Sac. a. Looking to solve the problem Mr. Sandelin first had said the City would provide tap down at Park entrance. Developer will have to trench 600' and install line for landscaping. Staff did not want to cut Lower Sac pavement to install the line. OR tap into Vintage Oaks fire hydrants and trench 400' of line under driveways. b. Later, City staff proposed to install a water tap from Lower Sac near as was originally designed and that Vintage Oaks bore by the most efficient means and install a 3" sleeve, in lieu of a 2 — 4" sleeves. This would allow a 1-112" waterline and the controller wire. We received approval for reducing the water line to 2" to 1-112" line after recalculating the irrigation area by the landscape engineers. c. Vintage Oaks agreed to install the sleeve at a cost of around $1,500, even though there was initial confusion about who was to install the original sleeves. Vintage Oaks contractor started to install using a pneumatic "missile" that would bore and pull the sleeve across. Vintage Oaks was stopped by the City Inspector as he felt that the method would not meet City standards. Met with Rich and Mr. Sandelin to confirm that it could work if installed with rolled type sleeving material. I Restarted the installation of the sleeve, Inspector still felt that there was too much doubt in this method and the coniiracctvr finally quit. e. Out of concern and frustration, Vintage Oaks has agreed to bring in a boring machine contractor at a cost bowmen $3,000 to $4,000 to finally complete this part of the problem. Estimated to be complete by May 22nd. f. Cjq has stdLnot co n ' service that was 1 ft out of the City's vac, will be installed so that Vintage Osks cin complete thg la data- work, further deb lipg the completion of the tmoject 4. The City's project engineer for Lower Sac did not design or stake the right of way correctly creatig a problem with the landscape strip left between sidewalk and Vintage Oaks well. a. Realized problem around 11/1015 b. Net with Mr. Sandelin, Wes, Rich Thomas, Paul Scheider, and myself onsite on 11115/05. Mr. Sandelin said 11pW donate 2 feet of land along Lower Sac to City to fix mistake. If rot bc would slot accept pWjspL c. Paul at Siegfried prepared plans on 11/21/05 to show extent of problem. Gave Mr. Sandelin land cost to pay for lard if City warted to purchase as lot was already mapped an 2 . d. Met with Riot & Mr. Sandelin on 11130/05 to discuss options. City agreed to leave frontage alone, but Vintage Oaks would grant the City an easement for the wall return alt no IgW _cost to ft QU for the Mj g. e. Prepared exhibits and restaked wall at new locations. On 12113106. Started raining at that time. f. Rain made work impassible until mid January. g. Wall compided by end of January. Requested invoice for final fees. h. Received fee invoice with fee increase and billing for overtime. to snomwy, vintage OWN does not feet that R owes the City ay a"dond fen or averthee invokes as it was pa^edarr maty the City's Eek Sots -Contractor that delayed tie project past the point of completion viten the rains started and delayed the projowt into the new biRiisg cycle. CITY COUNCIL CITY OF L O D I SUSAN HITCHCOCK, BLAIR KING, Mayor �J�°R, City Manager BOB JOHNSON, ~ �• SUSAN J. BLACKSTON, Mayor Pro Tempore City Clerk JOHN BECKMAN LARRY D. HANSEN _ D. STEPHEN SCHWASAUER, JOANNE MOUWCE PUBLIC WORKS DEPARTMENT City Attorney CITY HALL, 221 WEST PINE STREET / P.O. BOX 300.6 RICHARD C. PRIMA, JR., LODI, CALIFORNIA 95241-1910 Public Works Director TELEPHONE (209) 333-6706 / FAX (209) 333-6710 EMAIL pwdept@lodi.gov http://www-lodi.gov May 11, 2006 Vintage Oaks, L.P. c/o Tokay Development Mr. Jeffery Kirst P.O. Box 1259 Woodbridge, CA 95258 SUBJECT: Authorize City Manager to Execute Fee Adjustment Agreement for Vintage Oaks Subdivision Enclosed is a copy of background information on an item on the City Council agenda of Wednesday, May 17, 2006. The meeting will be held at 7 p.m. in the City Council Chamber, Carnegie Forum, 305 West Pine Street. TNs item is on the regular calendar for Council discussion. You are welcome to attend. If you wish to write to the City Council, please address your letter to City Council, City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street. If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's card (available at the Camegie Forum immediately prior to the start of the meeting) and give it to the City Clerk. If you have any questions about communicating with the Council, please contact Susan Blackston, City Clerk, at 333-6702. If you have any questions about the item itself, please call me at 333-6759. Richard C. Prima, Jr. - Public Works Director RCP/pmf Enclosure cc: City Clerk J:10EV_SERV1Vintage Oaks\NCFeeAdjustment.doc