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