ENG 003 i. Water Connections by City of Turfock
( 1 - 10" tap in E. Tuolumne Rd. @ $550.00 per tap
- 10" in-line connection @ $700.00 per connection Deferred to - 12" in-line connection @ $700.00 per connection Encr. Permit MUNI 016 j. T.V. of Sewer & Storm Pipes Fee: Deferred to (5450 LF @ $1.10 per LF) Encr. Permit
k. ETMP Cost Recovery Fee - • $31,532.00
(Reimburse City of Turlock)
MAKE ONE CHECK PAYABLE TO THE CITY OF TURLOCK: - $136,920,90
MAKE ONE CHECK PAYABLE TO STANISLAUS COUNTY RECORDER FOR THE RECORDING FEE: -- $21.00
2. Tracings of the final map with all applicable certificates on them executed by the involved parties in accordance with the Subdivision Map Act.
A monumentation security in an amount equal to $50.00 for each monument to be set.
An improvement security for performance (bond, letter of credit or cash) in an amount equal to 112.5% of the estimated construction costs of improvements plus $10,000.00 30e =
An improvement security for labor and materials (bond, letter of credit or cash) in an amount equal to 50% of the estimated construction costs of improvements
6. A warranty security in an amount equal to 10% of the estimated construction costs of improvements to correct or repair any deficient work found during the warranty period of twelve months from the date of tiling Notice of Completion. (To be posted with City before Notice of Completion is filed) A cash security in the amount of $6,186.00 (20.62 acres @ $300 per acre) for site maintenance and cleanup per Section 11-8.604 of the Turlock Municipal Code and Resolution 88-91. (Will be paid at issuance of Grading Permit)
8. Current preliminary title report.
9. Map guarantee report before map is recorded.
10. Liability insurance certificate per Item 5 of the enclosed subdivision agreement. 1i. "As-Built" improvement plans must be submitted to the Engineering Division before requesting a final inspection. The "As-Builts" must be approved and accepted by the City prior to filing the "Notice of Completion" for the subdivision. Mylar "As-Builts" will be required for City records.
12. Three executed, notarized copies of the subdivision improvement agreement.
Very truly vours,
CITY OF TURLOCK, Engineering Division
Michael G. Pitcock, P.E.
City Engineer
ARO
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
- and -
CITY OF TURLOCK
Development Services
Engineering Division
156 S. Broadway, Suite 150
Turlock, CA 95380
APN: 073-013-004
MASTER AGREEMENT BETWEEN
THE CITY OF TURLOCK
AND
RBK DEVELOPMENT, INC. AND BELGRAVIA LAND & DEVELOPMENT, INC.
FOR THE PAYMENT OF
RESIDENTIAL DEVELOPMENT IMPACT FEES
PURSUANT TO GOVERNMENT CODE §66007
THIS AGREEMENT is made and entered into this 28th day of July, 2015 between the CITY OF TURLOCK (hereinafter referred to as "City") and RBK Development, Inc. and Belgravia Land & Development, Inc. (hereinafter referred to as "Developer").
RECITALS
WHEREAS, Developer is the owner of and is seeking entitlements to develop that certain parcel of real property (hereinafter referred to as the "Property") described more fully in Attachment 1 attached hereto.
WHEREAS, Developer is seeking approval to subdivide the Property and is seeking approval to construct residential dwellings on the subdivided lots. A copy of the tentative map is attached as Attachment 2 hereto.
WHEREAS, as a condition of development, the Developer will be required to pay City Impact Fees upon the issuance of a building permit.
WHEREAS, pursuant to Government Code §66007(g) and Resolution 2015-136, the City is willing to defer the collection of the City Impact Fees set forth on Attachinent 3 until escrow closes for the sale of each individual residential dwelling.
Master Agreement for the Payinent of
Page l of 18 Residential Development Impact Fees
Citv Contract No. 15-075
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
1. Following proper request and submission of the required documents that meet all local and state requirements, the City will issue the building permits for construction of the residential dwellings on the Property:
2. Upon issuance of each building permit, the City will calculate the City Impact Fees, that would normally be due and payable upon issuance of the building permit;
3. The City will defer collection of the City Impact Fees until the close of escrow for the sale of each individual residential dwelling;
4. As a condition of issuance of each building permit, the City and Developer will enter into an agreement for the payment of the City Impact Fees that substantially conforins to the form of Agreement attached as Attachment 4 hereto.
5. The parties further agree that cach properly executed agreement for the payment of the City Impact Fees shall be recorded against the specified parcel and as set forth in the Agreement attached as Attachment 4, shall be a lien against the specified parcel, and the lien shall be satisfied and paid, upon the close of escrow, from the proceeds deposited into the escrow accounts opened following the execution of each individual residential real property sales contract, in accordance with the terms of the Agreement set forth in Attachment 4.
6. The Parties finally agree to the following terms and conditions:
a. Governing Law. This Agreement and the attachments attached hereto have been negotiated and executed in the State of California and shall be governed by and construed in accordance with the laws of the State of California without regard to conflicts of law.
b. Assignment. Each and all of the covenants and conditions of this Agreement shall inure to the benetit of and shall be binding upon the respective heirs, executors, administrators, successors and assigns of the Developer. As used in this Section, the term "successors" shall refer to the successors to all or substantially all of the assets of a party and to a party's successors by merger or consolidation. Developer shall have the right to assign this Agreement without the consent of the City. c. Entire Agreement. This Agreement and its attachments constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and the final, complete and exclusive expression of the terms and conditions therenf. All Master Agreement for the Paymenl of
Cily Contract No. 15-075 Page 2 of 18 Residential Development Impact Fices prior agreements, representations, negotiations and understandings of the parties hereto, oral or written, express or implied, are hereby superseded and merged herein. d. Modification and Amendment. This Agreement shall not be amended, modified. or otherwise changed unless in writing and signed by both parties hereto. e. Severability. If any portion of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated
i Waiver. In the event that either the City of the Developer shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or any other covenant, condition or obligation. Waiver shall not be deemed effective until and unless signed by the waiving party.
g. Integration. This Agreement, together with the attachments attached hereto, constitute the complete, entire, exclusive, and final agreement and understanding between the parties as to the subject matter herein, superseding all negotiations, prior discussions, and preliminary agreements or cotemporaneous understandings, written or oral.
h. Authority to Execute. The person or persons exccuting this Agreement on behalf of the parties hereto warrants and represents that he/she/they has/have the authority to execute this Agreement on behalf of their entity and has/have the authority to bind their party to the performance of its obligations hereunder.
SIGNATURE PAGE FOLLOWS
Master Agreement for the Payment of
City Contract No. 15-075 Page 3 of 18 Residential Development Impact Fees RBK DEVELOPMENT, INC. AND CITY OF TURLOCK
BELGRAVIA LAND & a municipal corporation
DEVOLOPMENT, INC. By:
By: Wait A It Gary Soiseth, Mayor
By: 7~
Roy W. Wasden, City Manager
APPROVED AS TO FORM:
By: 1.170201
/Signature(s) above must be notarized] Phaedra A. Norton, City Attorney APPROVED AS TO SUFFICIENCY:
By:
Michael G. Pitcock, P.F.., Director of
Development Services/City Engineer
ATTEST:
By:
Kellie E. Weaver, City Clerk
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that docunent
State of California
County of Slanisland
On Lingers! 4, 2015 before me. _ Erer L Bishop , Nolary Public, personally appeared Funate Binaki eni Keva Baye
, who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the
ERIN L. ВІЗНОР laws of the State of California that the foregoing Commission # 1866519
paragraph is true and correct.
Notary Pubile - Callernia
Stanislaus County WITNESS my hand and official seal.
say Corm. Expires Rav 11. 2015
22 x Carop
(Seal) Signature of Notary Public
Master Agreement for the Payment of
City Contract No. 15-075 Page 4 oF 18 Residential Devclopment Impaci Fecs ATTACHMENT 1
073-013-004
The property described in Grant Deed filed as Document No. 2006-0171834-00. on Novenber 22, 2006 in Stanislaus County Records.
Masier Agreoment for the Payment ot
Cily Contract No 15-075 Радс 5 of 18 Residential Development hapact Fees ATTACHMENT 2
(La Chateaux) Tentative Map
Master Agreement for the Payment of
Cily Contract No. 15-075 Page 6 of 18 Residential Development Impact Fees ATTACHMENT 3
CITY OF TURLOCK
FEES TO BE DEFERRED
1. Street Light Fee
2. Sewer Trunk Line Construction Fee
3. Sewer Capital Expansion Fee
4. Sewer Frontage Fee
5. Water Grid Fee
6. Water Frontage Fee
7. Water Meter
8. Master Storm Drainage Fee
9. Cap. Fac. Fee Road
10. Cap. Fac. Fee P.D.
11. Cap. Fac. Fee General Government
12. Cap. Fac. Fee Fire
13. Cap. Fac. Fee Administration
14. N.W.T.S.P. Fee Sewer
15. N.W.T.S.P. Fee Water
16. N. W.T.S.P. Fee Admin
17. North Area Master Plan Transp. Fee
18. North Area Master Plan Sewer Fee
19. North Area Master Plan Drainage Fee
20. North Area Master Plan Admin Fee
21. NE Trik Master Plan Transportation Fee
Master Agreement for the Payment of
City Contract No. 15-075 Page 7 of 18 Residential Development Impact Fees
22. NE Trik Master Plan Sewer Fee
23. NE TrIk Master Plan Drainage Fee
24. NE Trlk Master Plan Water Fee
25. NE TrIk Master Plan Admin Fee
26. E. Tuolumne Master Plan Transp. Fee
27. E. Tuolumne Master Plan Sewer Fee
28. E. Tuolumne Master Plan Drainage Fee
29. E. Tuolumne Master Plan Water Fee
30. E. Tuolumne Master Plan Admin. Fee
31. W.I.S.P. Sewer Fee
32. W.I.S.P. Potable Water Fee
33. W.I.S.P. Administration Fee
34. Park Improvement Fee (Neighborhood)
35. Park Improvement Fee (Community)
36. GIS Development Charges
Master Agreement for the Payment of
Cily Contract No. 15-075 Page 8 of 18 Residential Deveiopment Impact Fees ATTACHMENT 4
RECORDING INFORMATION
Recording Requested by and
When recorded, please return to:
CITY OF TURLOCK
DEVELOPMENT SERVICES
ENGINEERING DIVISION
156 South Broadway, Suite 150
TURLOCK, CA 95380
AGREEMENT
BETWEEN
THE CITY OF TURLOCK
AND
FOR THE PAYMENT OF
RESIDENTIAL DEVELOPMENT IMPACT FEES
PURSUANT TO GOVERNMENT CODE §66007
THIS AGREEMENT is made and entered into this
RECITALS
A. The PROPERTY OWNER is constructing a residential dwelling at Turlock, California 9538_, APN
B. The PROPERTY OWNER, as a condition of development, is required to pay City Impact Fees, County of Stanislaus Impact Fees, Turlock Unified School District Impact Fees, and other City fees for Building Permit totaling $ at building permit issuance.
C. Pursuant to Government Code §66007, Resolution 2015-_, and as a condition of issuance of the building permit, the City is willing to defer the collection of certain fees as set forth herein up to close of escrow, pursuant to Government Code §66007(g) D. The PROPERTY OWNER has agreed to pay $ of the total fees at building permit issuance and has requested that all City Impact Fees, as set forth on Exhibit B, in the amount of $ be deferred for each parcel/dwelling to close of escrow in Master Agreement for the Payment of
City Contract No. 15-075 Page 9 of 18 Residential Development Impact Fees accordance with Resolution No. 2015-136 of the City Council of the City of Turlock, adopted on June 23, 2015 and Government Code §66007(g).
The deferred fees are as follows:
City of Turlock Impact Fees $
Total Deferral Amount..... . $
IT IS MUTUALLY AGREED AS FOLLOWS:
PROPERTY AFFECTED
The PROPERTY OWNER holds fee title to the Property Affected and legally described on Exhibit A. The Property consists of one parcel/dwelling for which development impact fees have been deferred and which parcel/dwelling is encumbered by the outstanding fee balance indicated above until the parcel is released upon payment to the City (the "Property Affected").
2. RECORDATION
This Agreement shall be recorded in the office of the Stanislaus County Recorder and from the date of recordation, pursuant to Government Code §66007(c)(2), shall constitute a lien for payment of the fees or charges set forth herein which shall be enforceable against successors in interest to the PROPERTY OWNER or lessee at the time of issuance of the building permit. This contract shall be recorded in the Grantor-Grantee Index in the name of the City of Turlock as Grantee and in the name of the PROPERTY OWNER as Grantor.
3. LIEN CREATED
In addition to the statutory lien created by paragraph 2, the PROPERTY OWNER hereby expressly grants to City a lien against the Property Affected. Said lien is intended to guarantee the payment in full, plus accrued interest, processing fees, and the cost of collection, if applicable, of the deferred development impact fees. Cost for recording said lien shall be paid for by PROPERTY OWNER.
4. TERM OF PAYMENT
The outstanding fee/lien balance, allocated to each parcel/dwelling listed above, shall be due and payable to City at close of escrow of each parcel/dwelling listed above, notwithstanding Türlock Municipal Code §68-11-07 and 8-11-08 and pursuant to Government Code §66007 (g).
OPENING OF ESCROW
The PROPERTY OWNER and any and all assignees or transferees as set forth in property for which a building permit was issued for the Property Affected and to provide in the Master Agreement for the Payment of
Cily Contract No. 15-075 Page 10 of 18 Residential Development Impact Fees escrow instructions that the fee or charge to be paid to the City imposing the same from the sale proceeds in escrow prior to disbursing proceeds to the seller.
INTEREST AND FEES
No interest or processing fee shall apply if the deferred impact fees are paid in full when they become due. However, should the deferred fees not be paid when due and payable, or should the PROPERTY OWNER be in breach of any provision of this Agreement: (a) interest shall accrue on ail unpaid tees trom the date of issuance of the initial building permit until the deferred fees and all accrued interest is paid; and (b) an additional One Thousand Dollars ($1,000.00) shall be added to the unpaid amount to cover the initial administrative costs incurred in processing the fee deferral application. If assessed, interest shall be at the annual rate of interest which the City earns on its investment of pooled funds.
PRIORITY
The lien created hereunder shall have the same priority as property taxes.
8. RELEASE OF LIEN
Upon full payment of all deferred impact fees and accrued interest pursuant to paragraph 7, if applicable, to City and complete satisfaction of all terms and conditions of this Agreement by the PROPERTY OWNER, the City shall promptly release the lien created hereunder by executing a lien release in substantial form as shown in Exhibit C. Cost for recording said lien release shall be paid for by PROPERTY OWNER. This Agreement shall remain in full force and effect and continue as a lien on the Property Affected until the City of Turlock receives the full amount of the fees, which are the subject of this Agreement.
9. RELEASE OF CLAIMS
In consideration of the deferral herein granted by City, Undersigned hereby expressly waives and releases all claims and causes of action it now has or in the future may have against the City of Turlock, a municipal corporation (collectively, the "Released Parties") based on, or related directly or indirectly to capital facility fees charged by City for the project constructed on the property described on Exhibit A, including without limitation any and all claims that such fees are not reasonably related to the project's impacts or the cost of the services provided. To the extent of such waiver and release, Undersigned expressly waives its rights, if any, under California Civil Code Section 1542 which provides: "A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."
10. COLLECTION
The City may pursue collection through all available legal and administrative means including, but shall not be limited to, judicial or non-judicial foreclosure of the recorded lien against the Property Affected and/or civil judgment against the PROPERTY OWNER for breach of this Agreement. As part of the obligation secured hereby and in addition to the amount of the deferred fees stated above, there shall be included cost and reasonable expenses and fees, Master Agreement for the Payment ui
City Contract No. 15-075 Page 11 of 18 Residential Development Srupaut Fees including reasonable attorneys' fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered
11. ASSIGNMENT
This Agreement shall not be assigned or otherwise transferred to a person or entity not a party to this Agreement without the express prior written consent of the City. City's written consent will not be unreasonably withheld. Any person or entity seeking assignment or transfer of this Agreement shall execute a written assignment/transfer agreement agreeing to be legally responsible for meeting all of the terms and conditions under this Agreement, and the Resolutions of the City Council adopting standards for fee deferrals. Assignment shall not be effective until the proposed assignee/transferee executes an assignment and assumption agreement, in a form acceptable to the City Attorney, assuming all duties and obligations of the PROPERTY OWNER under this Agreement. Any assignment or transfer not in strict compliance with this provision shall: (a) be null and void; (b) constitute a material breach of this Agreement; (c) cause all impact fees deferred under this Agreement to become due and immediately payable at the time of the attempted assignment or transfer; and (d) cause any and all building permits issued related to the Property to automatically terminate and become null and void.
12. BUILDING PERMIT
PROPERTY OWNER shall ensure that any person or entity, of any kind, applying for a building permit for the Property is advised of this Agreement. The person or firm applying for a building permit for the property shall agree that the building permit is subject to the terms and conditions of this Agreement including, but not limited to, paragraph 12.
13. CONTRACT ADMINISTRATOR
City of Turlock Chief Building Official
156 S. Broadway, Suite 150
Turlock. California 95380-5456
(209) 668-5560
14. GOVERNING LAW
This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in :
state court in the County of Stanislaus
15. WAIVER
In the event that either City or PROPERTY OWNER shall at any time or times waive any reach of this Agreement by the other, such waiver shall not constitute a waiver of any other ( ucceeding breach of this Agreement, whether of the same or any other covenant, condition c obligation. Waiver shall not be deemed effective until and unless signed by the waiving party.
16. INTEGRATION
This Agreement constitutes the complete, entire, exclusive, and final agreement and understanding between the parties as to the subject matter herein, superseding all negotiations, Master Agrement for the Payment of
City Contract No. 15-075 Page 12 of 18 Residential Development Impact Fees prior discussions, and preliminary agreements or contemporaneous understandings, written or
17. MODIFICATION AND AMENDMENT
and signed y bet pat es let be amended, modified, or onenise changed unles in witing
18. SUCCESSORS AND ASSIGNS
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
19. SEVERABILITY
It any portion of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.
20. AUTHORITY TO EXECUTE
The person or persons executing this Agreement on behalf of the parties hereto warrants and represents that he/she/they has/have the authority to execute this Agreement on behalf of their entity and has/have the authority to bind their party to the performance of its
SIGNATURE PAGE FOLLOWS
Master Agreement for the Payment of
City Contract No 15-075 Page 13 of 18 Residential Development Impact Fees CITY OF TURLOCK, a municipal corporation
By: By: _
Gary Soiseth, Mayor
or Title:
Roy W. Wasden, City Manager Print name:
Date: Date:
APPROVED AS TO SUFFICIENCY:
By:
Michael G. Pitcock, PE, Director of (Signature(s) above must be notarized) Development Services/City Engineer
APPROVED AS TO FORM:
By:
Phaedra A. Norton, City Attorney
ATTEST:
By: _
Kellie E. Weaver, City Clerk
validity of that document
State of California
County of Stanislaus
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
Place Notary Seal above
Master Agreement for the Payment of
City Contract No. 15-075 Page 14 of 18 Residential Development Impact Fees
EXHIBIT A
All that certain parcel(s) of land situated in the City of Turlock, County of Stanislaus, State of California, being known and designated as follows:
Parcel One:
Parcel Two:
Parcel Three:
Etc:
Master Agrecment for the Payment of
Cily Contract No. 15-075 Page 15 of 18 Residential Devclopment Impact Fecs
EXHIBIT B
IMPACT FEES
City of Turlock
County of Stanislaus
Turlock Unified School District
Master Agreement for the Payment of
City Contract No 15-075 Page 16 of 18 Residential Development Impact Fees
EXHIBIT C
RECORDED AT THE REQUEST OF:
CITY OF TURLOCK
WHEN RECORDED MAIL TO:
CITY OF TURLOCK
OFFICE OF THE CITY CLERK
156 S. Broadway, Suite 230
Turlock GA 95380-5454
NOTICE OF RELEASE OF LIEN
DEFERRED PAYMENT OF CAPITAL FACILITY FEES
WHEREAS, on _ ("Grantor") and the City of Turlock ("Grantee"), entered into an agreement Affecting Real Property and Creating a Lien to Secure Payment of Deferred Residential Development Impact Fees (the "Agreement"), which Agreement was recorded as Document No. in the Official Records of Stanislaus County on_ _; and, WHEREAS, Grantor has satisfied the conditions for a release of lien encumbering certain parcels under said Agreement.
NOW, THEREFORE, the Grantee hereby releases all of its right, title, and interest to the lien in the real property described in Exhibit "1" attached hereto.
CITY OF TURLOCK, a municipal corporation
MICHAEL G. PITCOCK, P.E.
CITY ENGINEER
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document State of California
County of Stanislaus
before me,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.
Signature of Notary Public
Place Notary Seal above
Master Agreement for the Payment of
Cily Contract No. 15-075 Page 17 of 18 Residential Development Impact Fees
EXHIBIT
to
EXHIBIT C
NOTICE OF RELEASE OF LIEN
DEFERRED PAYMENT OF CAPITAL FACILITY FEES
LEGAL DESCRIPTION
Master Agreement for he Payment of
City Contract No. 13-025 Page 18 ol 18
Residential Development lact Fors
Brad Kilger
From: Ron Katakis <[email protected] >
Sent: Monday, October 24, 2022 11:53 AM
To:
Cc: Jami Westervelt; [email protected]
Subject: Re: Message
Brad,
I just wanted to clarify something on the Reimbursement Addendum to the Subdivision Improvement Agreement that i submitted. I made some changes to it, specifically adjusting the fees numbers to reflect the correct base fee, but I wanted to address the comments that staff made a couple of months ago on the first draft version that I submitted. The numbers and minor items such as no contingencies, no allowance for design, etc. are not important at this point in time. As you are aware, I am asking for the City to consider the deferral of development impact fees and that any credit balances in a particular fee component be used to offset any debit balances in other fee components. At this point, my main concern is for the City to agree to the concept that I am proposing. The actual numbers, etc. will obviously be determined at the point in time that a builder purchases the property, pulls building permits and submits proof of costs for all of the infrastructure items in question. I really don't want any more time to be spent on such matters that will only serve to delay things even more. The concept of the addendum is what is important right now so that the Planning Commission and City Council can understand it when they are presented with it. The mechanics of determining the dollars that are to be reimbursed will be ever changing until actual invoices are provided to the City sometime in the future when development occurs, and at that time, any discrepancies can be worked out. As you are no doubt aware, the magnitude of work that is shown on paper often changes when work is performed out in the field.
Thanks.
Ron Katakis
In a message dated 10/24/2022 9:59:42 AM Pacific Standard Time, [email protected] writes:
Received your message. I am on the road until Wed. Your application packet was sent out to the team to review last week. We have a meeting scheduled for Thursday to disacuss.
Brad
KD Anderson & Associates, Inc.
Transportation Engineers
March 18, 2021
Mr. Max Garcia
GDR Engineering Inc.
[email protected]
RE: REVIEW OF CHANGES TO SE GUSTINE ANNEXATION AREA
Dear Mr. Garcia:
This letter is intended to address potential changes to the layout of circulation for the Southeast Gustine Annexation area. In 2015 our firm completed an analysis of the transportation impacts associated with developing the area bounded roughly by Meredith Avenue on the north, West Avenue - Mills Road on the west, and Hunt Road on the east. The layout of the circulation system as proposed at that time is indicated in the attached figure from our study, which also indicates the assignment of project traffic onto the local The plan for the Southeast Gustine Annexation has changed slightly, as noted in the attached map. Locally, the new design resolves an issue that was identified in the environmental document at the Sullivan Road / Grove Avenue intersection relating to the offset location of the main north-south collector through the annexation area. The new plan creates roundabout at the Sullivan Road / Grove Avenue intersection and aligns the new road with that intersection. The remaining elements of the plans are substantially the same.
The roundabout will have the capacity to safely accommodate anticipated traffic volumes with a Level of Service that satisfies the minimum requirements of Gustine's General Plan policies. Conditions at other locations should not change. Thus, the transportation impacts of the proposed plan are similar to or less than those identified in our previous analysis, and no additional mitigation is required.
Please feel free to contact me if you have any questions.
Sincerely Yours,
KD Anderson & Associates, Inc.
Kenneth D. Anderson, P.E.
President
Attachments: Figure 3, tentative map
SE Gustinc 3-1R-2l Itr
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PROJECT ONLY TRAFFIC VOLUMES
XU Anderson de Associates, Inc. AND LANE CONFIGURATIONS Transportation Engineers
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figure 3
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STREET S ENGINEERING/SURVEYING/PLANHINC
VESTING TENTATIVE SUBDIVISION HAD
ZON KATATIS
RESOLUTION NO. 2022-2619A
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUSTINE APPROVING A VESTING
TENTATIVE SUBDIVISION MAP FOR SOUTHEAST GUSTINE DEVELOPMENT WHEREAS, by Resolution 2018-2419 on March 6, 2018 the City Council adopted the Southeast Gustine Master Plan in conformance with the provisions of the Gustine General Plan; and
WHEREAS, Ron Katakis ("Subdivider") has filed an application for a Vesting Tentative Subdivision Map to divide 41.68 acres, property located south of Sullivan Avenue within the Southeast Gustine Master Plan area, into 157 single-family residential lots and one park/storm drainage/water well lot; and
WHEREAS, an application for the proposed Vesting Tentative Map was received in the office of the Secretary of the Planning Commission on December 3, 2020; and WHEREAS, copies of the proposed vesting tentative map have been sent to the Gustine Unified School District, Pacific Gas and Electric Company, Central California Irrigation District, and the City Engineer; and
WHEREAS, City services, including sewer and water facilities, are available; and WHEREAS, the area can be served by elementary schools in the Gustine Unified School District and by the City's Fire Station at 686 Third Street, about 1-1/2 miles distant; WHEREAS, a public hearing was held by the Planning Commission on April 27, 2022, in the Council Chambers, Gustine, California, at which hearing evidence both oral and documentary was received and considered; and
WHEREAS, the City Council certifies it has received and reviewed the Southeast Gustine Master Plan EIR, and
NOW, THEREFORE, BE IT RESOLVED by the Gustine City Council that it hereby finds and determines as follows:
1. The proposed vesting tentative subdivision map, together with the provisions for its design and improvements, is consistent with the General Plan of the City of Gustine, the Southeast Gustine Master Plan, and the Subdivision Map Act of the State of California.
2. Prior to issuance of any building permit, a Precise Development Plan as required by provisions of the PD zone must be applied for and approved.
3. The discharge of waste as a result of the proposed vesting tentative subdivision map into the existing sewer system will not result in a violation of existing requirements by the California Regional Water Quality Control Board pursuant to Division 7 (commencing with Section 13000) of the Water Code of the State of California.
4. The proposed vesting tentative map will have no additional significant effect on the environment, as defined in subdivision (d) of Section 21158 of the Public Resources Code, which was not identified in the Master Plan EIR.
5. No new or additional mitigation measures or alternatives are required.
6. The proposed vesting tentative map is within the scope of the project covered by the Master Plan EIR.
7. All applicable policies, regulations, and mitigation measures identified in the Master Plan EIR have been applied to the proposed vesting tentative map subsequent project or otherwise made conditions of approval of the proposed vesting tentative map.
BE IT FURTHER RESOLVED that the City Council approves the Vesting Tentative Map subject to the following conditions:
CEQA:
1. All development shall at all times be subject to and in conformance with the mitigation measures identified by the Southeast Gustine Final EIR and set forth in the Mitigation Monitoring and Reporting Program for the Southeast Gustine Master Plan Project (MMRP).
1.1. BIO 3.1: If construction work on a project commences between March 1 and September 15, a pre-construction survey for nesting Swainson's hawks within
0.5 miles of the construction site shall be conducted by a qualified biologist retained by the project applicant prior to the start of construction work. If active nests are found, a qualified biologist shall determine the need (if any) for temporal restrictions on construction or other protective measures. The determination shall be pursuant to criteria set forth by CDFW in its Staff Report regarding Mitigation for Impacts to Swainson's Hawks (Buteo swainsoni) in the Central Valley of California (1994). The project shall incorporate all recommended measures, including any temporal restrictions.
1.2. BIO 3.2: If construction work on a project commences between February 1 and August 31, a pre-construction survey for burrowing owls within 250 feet of the construction site shall be conducted by a qualified biologist retained by the project applicant prior to the start of construction work. If occupied burrows are found, a qualified biologist shall determine the need (if any) for temporal restrictions on construction or other protective measures. The determination shall be pursuant to criteria set forth by CDFW in its Staff Report on Burrowing Owl Mitigation (2012). The project shall incorporate all recommended measures, including any tempora restrictions.
1.3. BIO 4.l: If construction work on a project commences during the general avian nesting season from March 1 through July 31, a pre-construction survey for nesting birds shall be conducted by a qualified biologist retained by the project applicant prior to the start of construction work. If active nests are found, work in the vicinity of the nest shall be delayed until the young fledge.
1.4. CULT 1.2 and 2.2: So that potential archaeological or paleontological materials encountered during construction activity can be identified, the developer or contractor shall provide training of field personnel in identification procedures prior to construction work, such training to be carried out by a qualified cultural resources specialist. The training would consist of a mandatory pre-field meeting in which a professional archaeologist would review with equipment operators the natural and cultural history of the annexation area, archaeological sensitivity, the most likely locations of buried cultural materials, if any, and what kinds of cultural materials would be seen if prehistoric materials are in fact unearthed and specifically how to address such discoveries and what immediate actions to take, particularly if human remains are found.
1.5. CULT 2.3: If any subsurface cultural resources are encountered during future project construction, all construction activity in the vicinity of the encounter shall cease until a qualified archaeologist examines the materials, determines their significance, and recommends mitigation measures that would reduce potentially significant impacts to a less than significant level, in accordance with CEQA. The City of Gustine shall be immediately notified of the discovery and the developer or its contractor shall be responsible for retaining a qualified archaeologist and for implementing recommended mitigation measures.
1.6. CULT 2.4: If human remains are encountered at any time during future project construction, all construction activity in the vicinity of the encounter shall cease, and the County Coroner and the City of Gustine shall be notified immediately. The Coroner will contact the Native American Heritage Commission if the remains have been identified as or are suspected of being of Native American descent. The developer or its contractor shall implement the requirements of the CEQA Guidelines with respect to human remains of Native American origin. The developer or its contractor shall retain a qualified archaeologist to evaluate the archaeological importance of the find and recommend any mitigation measures needed to reduce any potentially significant effects to a less than significant level under CEQA. The developer shall implement those recommendations.
1.7. CULT 3.1: If paleontological resources are encountered during project construction, construction activity in the vicinity of the encounter shall cease until a qualified paleontologist examines the materials, determines their significance under CEQA, and recommends mitigation measures that would be necessary to reduce potentially significant effects to a less than significant level, in accordance with CEQA. The City of Gustine shall be immediately notified of the discovery. The developer or its contractor shall be responsible for retaining a qualified paleontologist and for implementing recommended mitigation measures.
1.8. GEO 3.1/3.2: Implemented by Condition 16.
1.9. GRG-1: The project developer shall implement the following greenhouse gas emission reduction measures: 1) The project shall install only natural gas hearths in residences, and 2) Residences on the project site shall exceed Title 24 energy efficiency targets by at least 15%.
1.10. NOISE 14.1: Hours of operation for noise-generating construction equipment shall be restricted to 7:00 AM to 7:00 PM Monday through Friday, 8:00 AM to 7:00 PM Saturday, and Sundays (with authorization from the City Council or Planning Commission), 9:00 AM to 5:00 PM, when such equipment is to be used near noise sensitive land uses.
1.11. SERV 1.1: The Precise Development Plan shall include design and implementation that promotes citizens' safety developed in consultation with the Gustine Police Department.
1.12. TRANS 1.2 is implemented through the payment of applicable Traffic Development Impact Fees as currently under consideration for adoption.
TRANS 1.3 is implemented through the inclusion of a roundabout at the Sullivan/Grove intersection into the VTSM.
1.13. UTIL 2.1 and UTIL 5.1 are implemented into the Master Plan infrastructure required to be completed with the project.
General Conditions:
1. With recordation of a Final Map, the map shall demonstrate via note or building setback line that all rear-yard setbacks for lots that back up to Sullivan Road shall be fifteen feet, in accordance to the setback standards outlined in the City's Zoning Code.
2. Prior to Certificate of Occupancy of any structure on any lot abutting Sullivan Road, the following fences and walls shall be installed:
2.1. An eight-foot high continuous split-face decorative masonry wall with cap treatment shall be installed along Sullivan Road;
3. Prior to recordation of a Final Map, Subdivider shall provide a form of disclosure to future residents about the potential exposure to agricultural operations in the area.
Such disclosure shall be placed on the Final Map and provided with deeds for each residential lot.
4. All landscaping, fences, and walls shall be maintained and the premises shall be kept free of weeds, trash, and other debris.
5. Except as amended herein, or by reference, all development shall be in accordance with the Southeast Gustine Master Plan and the mitigation measures specified by the applicable EIR and Mitigation Monitoring and Reporting Program.
6. Prior to start of construction, all-weather, hard-surfaced roadways shall be constructed and maintained free of obstructions at all times during construction as required by City Engineer.
7. Subdivider shall, at his sole expense, defend, indemnify and hold harmless the City of Gustine, its agents, officers, directors and employees, from and against all claims, actions, damages, losses, or expenses of every type and description, including but not limited to payment of attorneys' fees and costs, by reason of, or arising out of, this development approval. The obligation to defend, indemnify and hold harmless shall include but is not limited to any action to arbitrate, attack, review, set aside, void or annul this development approval on any grounds whatsoever. The City of Gustine shall promptly notify Subdivider of any such claim, action, or proceeding and shall cooperate fully in the defense.
8. Prior to the issuance of any building permit, a Precise Development Plan for the area as required by provisions of the PD zone must be applied for and approved.
9. All minimum conditions of subdivision approval in Article 6 of the City's Zoning Ordinance ("Subdivisions") are included by reference.
10. The Final Map shall comply with all provisions of the Subdivision Map Act.
11. The Final Map shall be prepared by a California licensed land surveyor or registered civil engineer and filed for City Council approval.
12. Subdivider shall provide all required documents as determined by the City Engineer for review and approval of the Final Map and recording thereof.
13. Before approval of the Final Map and recording thereof, the Subdivider shall:
a) Construct all public improvements or provide the required surety for the construction thereof for acceptance by the City Council. b) Construct or provide required surety for all irrigation improvements as required by Central California Irrigation District.
c) The Subdivider shall dedicate all necessary rights of way and easements to the City of Gustine, public utility companies, and other affected agencies. d) The Subdivider shall dedicate all public park lands, well sites, and storm basins to the City of Gustine.
14. Prior to approval of the Final Map, improvement plans for streets, utilities, drainage facilities, survey monuments, grading, and erosion control shall be prepared and submitted for the City Engineer's approval.
15. Public improvements shall conform to the latest edition of the City of Gustine Improvement Standards and any modifications thereto approved by the City Engineer in place at the time of approval of this Vesting Tentative Subdivision Map.
Improvements shall conform to other City adopted documents, including the approved Southeast Gustine Master Plan and amendments thereof, General Plan, Sewer Master Plan, and Stormwater Master Plan. The work shall comply with all applicable State, Federal, and local laws and regulations.
16. As part of the improvement plans, the Subdivider shall submit to the City Engineer a soils report prepared by a California registered geotechnical engineer. The soils report shall include recommendations for the structural sections for streets, excavation, compaction, clearing, grubbing requirements, percolation, water table elevation, and grading improvements for the drainage basin.
17. Prior to issuance of a Grading Permit or commencement or construction on site, the Subdivider shall prepare a Storm Water Pollution Prevention Plan (SWPPP) under the California Water Resources Control Board Order No. 2009-0009-DWQ, NPDES No.
CA000002 for construction activities.
18. Prior to approval of the improvement plans, Subdivider shall prepare a pre-project water balance calculation for storm water runoff pursuant to the California Water Resources Control Board Order No. 2012-0006-DWQ, NPDES No. CA000002 for compliance with Post-Construction Standards for non-MS4 Phase I and Phase Il agencies.
19. Prior to issuance of a Grading Permit or commencement of construction on site, the Subdivider shall prepare a Dust Control Plan (DCP) and file the Plan with the San Joaquin Valley Air Pollution Control District to approve construction activities for the project if required.
20. Prior to the issuance of any grading and encroachment permits, Subdivider shall pay the permit fee, plan check and inspection fees, and furnish improvement securities pursuant to the City's improvement standards, municipal code, and ordinances.
Improvement securities will be in accordance with standards set for in the California Subdivision Map Act and the City's Municipal Code.
21. Prior to the issuance of a building permit, Subdivider shall pay all development impact fees as specified and pursuant to the City's municipal code, ordinances, and resolutions. The fee assessment shall include all applicable fees for Municipal Facilities, Police, Fire Protection, Transportation, Water, Domestic Wastewater, Storm Drainage, and Parks. Fees shall be paid at the time of the issuance of each permit.
Development Fees shall include ail those fees currently under consideration by the City Council and proposed for adoption on May 17, 2022
22. The proposed parcels shall be annexed to any applicable Landscape and Lighting Maintenance District and Community Facilities District for the City of Gustine for all required and applicable assessments, and, at the City's discretion, the Subdivider will agree to, prepare and fund, formation of a new landscape and lighting maintenance district and/or community facilities district for the parcels.
23. Provide utility services to each lot, including electric power, gas, telephone, and cable television.
24. Construct all proposed utilities underground within the street rights of way or public utility easement. Any existing overhead lines including electric, communication and Cable TV within the public rights of way or easements fronting the subdivision, or within the proposed parcel boundaries shall be undergrounded within the street rights of way or relocated to acceptable easements as approved by the City and the affected utility companies.
25. The location and installation of mailboxes shall be approved by the US Postmaster and the City of Gustine.
26. The names for the new subdivision streets shall be provided for consideration and are subject to approval by the City Council. As established during the approval proceedings of this resolution, one street within the subdivision must be named "Faulder Court" as a gesture of gratitude in exchange for the allowance of the City's solar array on their property that serves as parking for City Hall.
27. The rights of way and easements shown on the Vesting Tentative Subdivision Map are preliminary until they are reviewed and approved by the City Engineer. The Final Map shall show final precise location of all rights of way and easements.
28. Subdivider shall coordinate and obtain all required approvals from the County of Merced, Central California Irrigation District, and any other stakeholders affected by the work.
Subdivision Public Improvements
Streets
29. Subdivider shall dedicate or cause the dedication of street right of way for the proposed roundabout and subdivision street frontage for Sullivan Road and construct street improvements pursuant to a 70-ft Street Section per the Southeast Gustine Master Plan and as approved by the City Engineer. Roadway pavement shall be widened to ultimate street width within the project frontage and transitioned to existing pavement as required. Curb, gutter, sidewalk, landscaping. decorative street lighting and other required street frontage improvements shall extend the length of the subdivision boundary. Construct all required frontage improvements per City standards or as approved by the City Engineer.
30. Subdivider shall dedicate public utility/pedestrian easement and construct street improvements for Mills Road pursuant to a 60-ft Street Section per the Southeast Gustine Master Plan and as approved by the City Engineer. Roadway pavement shall be widened to ultimate street width within the project frontage and transitioned to existing pavement as required. Curb, gutter, sidewalk, landscaping, decorative street lighting and other required street frontage improvements shall extend the length of the subdivision boundary. Construct all required frontage improvements per City standards or as approved by the City Engineer.
31. Subdivider shall dedicate street right of way and public utility/pedestrian easement for the proposed Interior Collectors and construct street improvements pursuant to a 70-ft Street Section per the Southeast Gustine Master Plan and as approved by the City Engineer. Roadway improvements shall include, but not be limited to. pavement section, curb, gutter, sidewalk, curb ramps, driveways, decorative street lighting, landscaping, survey monuments, signage, and striping and shall conform to the City's Improvement Standards.
32. Subdivider shall dedicate street right of way and public utility/pedestrian easement for the proposed Local Roads and construct street improvements pursuant to a 52-ft Street Section per the Southeast Gustine Master Plan and as approved by the City Engineer. Roadway improvements shall include, but not be limited to, pavement section, curb, gutter, sidewalk, curb ramps, driveways, street knuckles, decorative street lighting, landscaping, survey monuments, signage, and striping and shall conform to the City's Improvement Standards.
33. Construct the proposed roundabout to meet Highway Design Manual Figure 404.5C for California Legal Design Vehicle of 50-ft turning radius and 6-seconds lock-to-lock time for a rural arterial designation.
34. Construct street knuckles to the dimensions and curve lines as required per the City of Gustine Improvement Standards.
35. Construct all designated partial Interior Collectors and Local Roads to allow vehicle travel in each direction and to contain storm runoff within the subdivision boundary.
36. Provide sight distance at intersections of Street 9 (A) at Sullivan Rd and Street 5 (A) at Mills Road to meet City of Gustine Improvement Standards.
37. Pursuant to the Southeast Gustine Master Plan, construct temporary paved pedestrian access north from Sullivan Rd. along Grove St. to the elementary school, consistent with the provisions of the Master Plan.
38. Pursuant to the Southeast Gustine Master Plan, construct frontage improvements along the Gustine Middle School frontage of Sullivan Road.
Water System
39. Construct water mains, fire hydrants, blowoffs, sampling stations, and lateral connections as necessary to serve each lot.
40. Water services shall be sized to meet domestic and fire protection demands and shall include shutoff valves, corporation stops, and water meters. Subdivider shall incorporate water recirculation for residential sprinkler system at the water service or onsite plumbing as applicable.
41. Construct minimum 8-inch water mains on proposed subdivision streets and looped as needed to support the subdivision pursuant to the Southeast Gustine Master Plan and as approved by the City Engineer. Pipe sizes greater than the minimum shall be determined from hydraulic calculations and/or modeling studies, consistent with the existing network grid or as recommended from the Southeast Gustine Master Plan.
42. Construct 12-inch water main from point of connection at Sullivan Road and along Street 9 (B), Street 1 (B) and Street 8 (B) to the proposed well location at the basin site per the Southeast Gustine Master Plan.
43. Construct 12-inch water main from the proposed well location and along Street 8 (B) to the subdivision south boundary per the Southeast Gustine Master Plan.
44. Construct 12-inch water main on Mills Road to extend the length of the subdivision boundary per the Southeast Gustine Master Plan.
45. Connect proposed water main on Street 11 (A) to existing main on Sullivan Road to complete a loop per the Southeast Gustine Master Plan.
Sewer System
46. Construct sewer lines, lift stations, manholes, and lateral connections as necessary to serve each lot. Convey sanitary wastewater via a gravity flow system unless a lift station is required at points of connection due to topography restrictions.
47. Lateral connections shall include cleanouts and other required components per the City's Improvement Standards.
48. Construct minimum 8-inch sewer mains on proposed subdivision streets pursuant to the Southeast Gustine Master Plans and as approved by the City Engineer. Pipe sizes greater than the minimum shall be determined from hydraulic calculations and/or modeling studies, consistent with the existing network grid, or as recommended from the Southeast Gustine Master Plan.
49. Construct 10-inch sewer main from the proposed connection on Sullivan Road and along Street 9 (B), Street 1 (B), and Street 8 (B) to the subdivision south boundary per the Southeast Gustine Master Plan.
50. Construct 18-inch sewer main on Sullivan Road to extend the length of the subdivision boundary to the west and connect to the existing 18-inch sewer main to the east. Extend the 18-inch trunk sewer from the existing sewer pump station on Railroad and Meredith Avenue and along Hunt Avenue, Meredith Avenue, and Kniebes Road to connect to the existing 24-inch on Carnation Road pursuant to the South east Gustine Master Plan and as approved by the City Engineer.
Storm Drainage
51. Construct storm drain lines, manholes, drain inlets, catch basins, detention basins, outfalls, and lift stations.
52. Construct storm sewers on proposed subdivision streets as determined from hydraulic calculations and/or modeling studies, consistent with the existing network grid and as recommended per the Southeast Gustine Master Plan and Storm Drain Master Plan.
53. All runoff from City streets shall be contained within the public rights of way or easements and conveyed to the proposed storm basin.
54. Design and construct the proposed storm basin per the City's Improvement Standards, Soils Investigation and Southeast Gustine Master Plan and as approved by the City Engineer. Basin shall be sized to handle the storm runoff from the proposed subdivision. Design shall demonstrate and construction shall implement an interim solution providing for the ultimate storm basin design for the Master Plan area.
55. Design and construct a storm pump station on a block wall-enclosed 50'x50' site with pumping capacity and equipped as required and approved by the City Engineer and pursuant to the Southeast Gustine Master Plan.
56. Construct 12-inch storm drain force main from the storm pump station and along Street 8 (B), Street 5 (A), Street 11(A), Sullivan Road, Hunt Road, and Railroad Avenue to connect at the existing 42-inch irrigation pipeline on Meredith Avenue pursuant to the Southeast Gustine Master Plan and as approved by the City Engineer. Construct connection to irrigation pipe as required and approved by the Central California Irrigation District.
57. Subdivider shall dedicate the park/storm basin/water well parcel to the City of Gustine for public use.
58. The basin area including side slopes and floor shall be provided with grass and irrigation at all phases.
Cily Park Improvements
59. Subdivider shall dedicate the park/storm drain/water well parcel to the City of Gustine for public use.
BE IT FURTHER RESOLVED that the conditions of project approval set forth herein include certain fees, dedication requirements, reservations requirements, and other exactions, and that pursuant to Government Code Section 66020(d) (1), these conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions.
BE IT FURTHER RESOLVED that the applicant is hereby further notified that the ninety (90) days approval period in which a protest of these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a) can be filed, begins on May 17, 2022, and that if a protest is not filed within this (90) ninety day period complying with all of the requirements of Section 66020, the applicant will be legally barred from later challenging such exactions.
BE IT FURTHER RESOLVED by the City Council that the Secretary of the City Council is hereby directed to file with the Merced County Clerk a Notice of Determination in regard to the environmental impact of the proposed subdivision.
The foregoing resolution was introduced at the regular meeting of the Gustine City Council held on May 17, 2022, by Council Member Brazil who moved its adoption, which motion was seconded by Mayor Pro Tem Alexander and carried by the following vote:
AYES: Bonta, Brazil, Ford, Alexander, Mayor Nagy
NOES: None
ABSTAIN: None
ABSENT: None
APPROVED:
City of Gustine
ATTEST:
means
Melanie Correa, Deputy City Clerk
City of Gustine
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CITY CALIFOR ITEM NO. 11
COUNCIL AGENDA ITEM
FEBRUARY 21, 2023
PREPARED BY: Jami Westervelt, Economic and Community Development Director SUBJECT: Amendment to Fee Schedule for Encroachment Permits
BACKGROUND
Cities require encroachment permits for projects within, under or over right-of-ways in City limits. Cities require permits from individuals, private entities, as well as from other public entities. Other public entities also require such permits when projects encroach upon their right-of-way, with one example in Gustine being Caltrans.
The encroachment permit is the mechanism by which the City of Gustine formally receives all the pertinent details of the request, approves it prior to start or work, and collects the fees necessary to complete the related tasks the City must complete.
The overwhelming concept for the City of Gustine, and other cities and public entities, is that they attempt to set fees that match the cost of providing the service. The legal mandate in California is that fees estimated are "reasonable."
DISCUSSION
The City requires the applicant for an encroachment permit list a valuation of the work taking place. If the valuation is deemed reasonable by the City, the City charges fees based upon the valuation. One flat fee will not work for encroachment permits because the type and scope vary too widely. The logic behind using valuation is that cost, to a degree, indicates the size and larger projects cost the City more than smaller.
A caveat to the valuation concept is that no matter how small the value of the work, there is a minimum amount of cost that the City will incur for simply completing any review. For that reason, the City has a minimum fee for encroachment permits and a percentage application after that—with the greater of the two applying. The current fee schedule lists the Encroachment Permit fee (Exhibit A) as follows (greater A or B):
a. Minimum Fee- $100
b. Percent of Estimated Project Valuation: Deposit 5% AND Minimum Fee 5% Encroachment permits are not the only fee the City charges based upon valuation or that has a minimum fee. However, the encroachment permit fees are an anomaly in that, after the minimum threshold, the City lists the same deposit percentage as also the minimum fee ITSELF, without any limitation on the valuation amount.
For example, some Building fees utilize valuation (as well as square footage amounts) to determine fees. The fees are based on a sliding scale such that the amount charged decreases in per/unit amount as the valuation increases to certain thresholds. The logic here is the corollary to the idea of a minimum: While larger projects generally always cost the City more than smaller projects, when projects reach a certain tipping point the rate of that cost increase tends to slow.
As staff involved in the 2019 fee schedule update are no longer with the City, current staff queried the consultant that assisted in that update to ask about the lack of a sliding scale for encroachment fees. ClearSource Financial reflected that the fee schedule likely did not take into account large projects because the City simply had not encountered such requests previously. The majority of applications the City receives for encroachment permits are for valuations on the lower end of the spectrum. Most City valuations in the last decade were well below $50,000 valuation ($2,500 fee). The 5% fee amount is reasonable for projects within the valuation of $0-$50,000.
Recently, however, the City has been approached with projects that have valuations in the millions of dollars. Two telecommunications projects which offer widespread Broadband access to the community will soon apply for encroachment permits to install fiber. The City's existing fee schedule sets forth that the projects require a minimum payment—not simply a deposit-of 5%. That fee has the potential to outweigh the costs the City would spend in reviewing the project permits. Charging substantially more would not be reasonable and is not the intent of the City in collecting fees. The aim is to recover all the various costs associated with work on projects.
Staff and Clearsource concur that the City needs to address this in the next fee schedule being worked on in an existing contract with that consultant. The fee schedule requires hearing and public notice. Staff and the consultant believe to delay these large projects until Council approves the full fee schedule does not seem reasonable. Therefore, staff recommends Council consider reducing the mandatory fee obligation amount until the new fee schedule is adopted in the coming months.
Review work for encroachment permits on large-dollar encroachment projects is similar to the type of review on large planning projects: It has many variables that can result in large variance in the number of review hours and costs related. Staff suggests that using a recovery structure similar to planning provides a reasonable alternative: The City collects a set deposit for large projects prior to starting work and then essentially bills against the deposit as the project progresses. When the deposit gets within 20% of the initial deposit, the City requires additional deposit to continue work. The City refunds any deposit not billed against the project at completion.
This process is time-consuming in regards to tracking and as is not being recommended for the majority of the encroachment permits the City receives-which are lower dollar.
However, for larger-valuation projects, it provides a structure that provides for a clearly reasonable nexus between the costs and fees charged and provides fair recovery. The revised fee schedule being discussed with the consultant currently follows this model.
In the meantime, the Council can amend the current encroachment permit fee to allow high-dollar projects, including the two recent broadband projects in discussion, to move forward with a reasonable fee structure until the new fees come before Council.
The recommended amendment changes the fee to read as listed on Exhibit A under "Proposed Amendment to Encroachment Fee." A minimum fee of $100 applies to any encroachment permit up to $2,000. For valuations from $2,000 up to $50,000, the 5% fee remains, meaning actual fees of $2,500 or less based upon valuation. For projects with valuations over $50,000, the structure changes to mirror planning. It follows the billing specifications outlined in the existing fee structure for services such as attorney, building, engineering and planning. The minimum for these projects over $50,000 defaults to $2,500 if the review cost somehow totals less than that amount.
Any changes to this fee in the next Fee Schedule approved by the Council will supersede this, as is true for all other fees in the schedule.
FISCAL IMPACT
No direct costs associated. Allows the City to have a fiscal mechanism to more accurately collect for costs it incurs in encroachment permits for large projects, and to insure the fees remain reasonable per mandates the City operates under.
RECOMMENDATION
City Council to approve the proposed Amendment to encroachment fee as outlined in the staff report.
EXHIBIT(S)
A) Encroachment Fee Amendment
B) Resolution
APPROVED BY:_
Anna Nicholas, City Manager
Exhibit A- Encroachment Fee Amendment
Current Encroachment Fee (taken from current Fee Schedule) Fixed Fee/
Fee Description Minimum Fee Initial Deposit Deposit
1 Encroachment (Excavation) Permits (Greater of A or B) al Minimum Fee $100 Foxed Fee
b) Percent of Estimated Project Valuation 5% Deposit
PROPOSED Amendment to Encroachment Fee
ENCROACHMENT MINIMUM FEE INITIAL DEPOSIT Fixed Fee or Deposit
PERMIT VALUATION
Less than $2,000 $100 Not Applicable Fixed Fee
Valuation up to $50,000 5% of Valuation 5% of Valuation Fee Valuation over $50,000 $2,500 5% of Valuation Deposit*
* Billings for the Deposit amount will continue to be billed as listed in the current Fee Schedule, including as related to administrative fees and contract services such as attorney, building, engineering and planning.
RESOLUTION 2023-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUSTINE
AMENDING THE ENCROACHMENT PERMIT FEE
Whereas, the City of Gustine has a responsibility to structure its fees to attempt to recover as many costs associated with projects as possible; and Whereas, the City also has a responsibility to structure fees so that they do not charge applicants beyond reasonable recovery costs; and Whereas, City staff has evaluated the current encroachment permit fee and determined that proposed changes will continue to provide reasonable recovery for smaller projects as well as reasonable recovery for higher-valuation projects; and Whereas, the City has applications for large projects pending for which it would not appear reasonable to either enforce those fees or force applicants to wait to move these forward until a full City Fee Schedule amendment can take place; and Whereas, the City Council may approve amendments to the fee schedule which reduce, rather than increase, fee responsibility; and
Now Therefore, Be It Resolved by the City Council of the City of Gustine that the following fee schedule amendment be made to the encroachment fee section listed in the current City Fee Schedule under Public Works:
ENCROACHMENT PERMIT MINIMUM FEE INITIAL DEPOSIT Fixed Fee or VALUATION Deposit
Less than $2,000 $100 Not Applicable Fixed Fee
Valuation up to $50,000 5% of Valuation 5% of Valuation Fee Valuation over $50,000 $2,500 5% of Valuation Deposit*
THE FOREGOING RESOLUTION of the City Council of the City of Gustine was passed by the City Council at a regular meeting held on the 21st day of February, 2023, the resolution was adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
APPROVED:
Patrick Nagy, Mayor
City of Gustine
ATTEST:
Melanie Correa, Deputy City Clerk
City of Gustine