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prior to discounting. The value of the public facilities to be financed with the contemplated bond financing will be included in the appraisal. The discount rate should reflect the rates of return needed to attract debt and equity participation in the project.
(5) Mass Appraisal Techniques. When an entire tract or project has been built and fully absorbed, the appraiser may employ mass appraisal techniques, utilizing conservative per dwelling unit estimates.
(6) Assessed Value. If, based upon assessed value, the value-to-lien ratio of the project and ninety (90%) percent of the undeveloped parcels is greater than 3:1, then a separate appraisal may not be required. If the assessed value of ninety (90%) percent of the undeveloped parcels is not greater than three times the amount of the lien then the City can require an appraisal to be completed on the undeveloped portion of the project while it uses the assessed value for the developed portion. p) Contents of Appraisal. The appropriate format and level of appraisal documentation can vary according to its complexity. A detailed appraisal will reflect nationally recognized appraisal standards, including, to the extent appropriate, the Uniform Standards of Professional Appraisal Practice. Appraisal methodology and presentation of the results of the appraisal shall be presented in writing in either form report or narrative report, as required, by the CFD Formation Group.
Appraisals should conform to the following specific criteria:
(1) Appraisals must be selected from a “pre-qualified” list of appraisers determined by the City.
(2) Appraisals must be in writing, using either a “form report” (Uniform Commercial and Industrial Appraisal Report - Existing Property) or a “narrative report.” (3) Each appraisal shall clearly state the purpose of the report; a definition of the estate being appraised (i.e. fee, leasehold, etc.); and a description of the limiting conditions and assumptions underlying the appraisal.
(4) Valuation dates shall be as determined by the City, but in no event earlier than 120 days prior to the sale of the bonds. To the extent practical, valuation dates on all properties shall be synchronized to a specific date, such as “October 1, 1999.” (5) A physical description of the property being appraised, along with a discussion of its “highest and best use,” land use regulations, present use and location. (6) An opinion of value which specifically considers the value of the property (including individual parcels) with the completed public facilities (bond proceeds and other financial guarantees).
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the property, along with a brief description of the appraiser’s qualifications. (8) Improvement description (to the extent information is practically available). (a) Land parcels which have been developed and subsequently sold should at a minimum indicate land parcel size, number of lots, density, number of plans, square footage, year construction was initiated, year of completion, and when sales were initiated.
(b) Land parcels with product under construction or with standing inventory, should be described as in (5) above and include a summary of the stage of development including: number of residential units or buildings completed, number of buildings, status of buildings under construction, finished lots and mass-graded or raw lots. In addition, a comment on the marketability of the building (architecture, size, etc.) is appropriate.
(c) Land parcels which have been developed with income-producing (or owneroccupied) commercial, industrial, offices, etc., should be described as follows:
(i) Commercial Retail. Land parcel size; basic construction type; typical tenant improvements (and who is responsible for their construction); leasable area, when construction was initiated; and date of completion. (ii) Industrial. Land parcel size; basic construction type, whether single or multi-tenant typical office build-out as percentage of total area, when construction was initiated; and date of completion.
(iii) Office. Land parcel size; basic construction type; typical tenant improvements/allowance; net rentable area, when construction was initiated; and date of completion.
(iv) Residential. Land parcel size; basic construction type; whether single or multi-family; when construction was initiated; and date of completion. 5) District Administrator.
Upon completion of the formation of or annexation to a CFD, the District Administrator shall oversee all post-formation/post-annexation administrative duties. Examples of said duties include but are not limited to the following:
a) Establish through the Finance Department of the City of Modesto the financing mechanism to receive, dispense and administer all monies received post-formation/post-annexation. b) Establish and administer a reserve fund.
c) File all appropriate notices.
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d) Take any and all actions necessary for prudent administration of all post-formation/postannexation CFDs, including but not limited to the expenditure or allocation of District funds, in strict accordance with Section 53343 of the Mello-Roos Act of 1982 as it may be amended, so that any such funds shall only be allocated or expended for facilities and services authorized by the Act. This shall include but not be limited to, creation of and modification to the Capital Improvement Project (CIP) budgets. 6) District Administration.
a) District Administration Requirement of Infrastructure/Credit Specification in Subdivision Agreements.
On or after December 1, 1998, it shall be City policy with respect to those subdivisions located within the boundaries of a proposed Community Facilities District, an existing Community Facilities District, or a proposed or existing annexation to a Community Facilities District that the subdivision agreement required by the City for each such subdivision specify the creditable infrastructure or infrastructure segment percentages to be provided by the Developer of that subdivision in detail, as well as proposed credit amounts associated with the subject infrastructure or infrastructure segment percentages. The infrastructure or infrastructure percentages shall be among those required to be completed by the Facility Master Plan or another similar infrastructure specification pertaining to the subdivision for which an agreement is sought.
b) District Administrator To Consult With Director Of Community Development Re Inclusion of Community Facilities Districts In Specific (Or Other) Plan Finance Plans.
When Specific or analogous Plans required by law for development are being prepared by the City, the City's Director of Community Development, after consultation with the City's Director of Engineering and Transportation and its District Administrator, shall determine whether or not a Community Facilities District shall be at least one means of financing infrastructure within any proposed Specific Plan on and after December 1, 1998, once the Director of Community Development has determined that a Community Facilities District shall be one means of financing such infrastructure, each subdivision within such a Plan shall have approval of its tentative subdivision map conditioned on the creation of or annexation to a Community Facilities District prior to final approval of its subdivision map, and the District Administrator shall assist the Director of Community Development in ensuring enforcement of this policy. c) Uncreditable Portion Of Contingency Estimates In Village One.
The District Administrator, in coordination with the City's Community Development Department, shall ensure that the contingency portion of each facility segment credit against the one-time facilities taxes otherwise due shall be #5..
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uncreditable, and received in cash, in an amount equivalent to 10.5% of the 25% contingency portion of each such facility segment credit, so that Village One developers will receive a net credit of 14.5% with respect to the contingency portion of each such facility segment credit against the appropriate one-time facilities tax. d) Uncreditable Portion Of Contingency Costs To Be Included In Future Community Facilities Districts.
The District Administrator, in coordination with the City's Community Development Department, shall insure that an uncreditable percentage of each future one-time facilities tax is incorporated into each of the City's future Community Facilities Districts by means of inclusion in the Public Report and in the Rate and Method of Apportionment of Taxes. In order to ensure that the City's sunk costs of planning and engineering, ongoing administration, indirect costs and consultant costs can be paid from cash on hand generated by this requirement, some portion of the estimated cost of each facility, facility segment, or unit cost of a facility shall be disallowed from presentation for credit against the special one-time facilities tax which would otherwise be due with respect to the provision of that facility.
e) Tax Credit Procedure
i) Facility providers may be permitted credits against taxes owed, or cash credits, as appropriate, and as set forth herein.
ii) In the case of oversubscription, cash up to the amount of the oversubscription may be paid to a facility provider as cash becomes available to the CFD through tax collection. iii) Taxes shall be payable at the time specified in the public report. Until January 1, 2000, the tax payable shall at least equal the administrative offset specified in the public report or otherwise.
iv) The district shall also be compensated from available tax monies for money and services advanced by it for the acquisition, construction, improvement or control of any or all of the facilities set forth in the public report, all in accordance with and subject to the Mello Roos Act (including, without limitation, Section 53314.9 of the Act), the resolution of formation of the CFD, the policies and procedures for administration of the CFD, the public report and other applicable law.
v) In no event shall cash advances, dedications, or construction of facilities become either a debt of the City, or a debt in excess of actual tax receipts, of the CFD. vi) All tax credits shall be made by the District Administrator pursuant to a valid, executed facility acquisition agreement in a form approved by the District Administrator. vii) Prior to January 1, 2000, with the approval of the District Administrator, credits may be furnished to a facility provider to offset taxes otherwise due if the facility provider has #5..
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furnished or is furnishing facilities which have not yet received a notice of completion.
Notwithstanding the foregoing, such discretionary credit shall be fully reimbursable to the CFD in cash by the facility provider in the event that a facility acquisition agreement is not executed by the facility provider, or if that facility provider does not receive a notice of completion from the District Engineer.
viii)On and after January 1, 2000:
(1) The District Administrator shall ensure that the full tax is collected as it becomes due from each provider of facilities or facility segments to the CFD until (a) a valid facility acquisition agreement exists between the CFD and the facility provider and, (b) the facility has been completed, and (c) a certificate of completion has been issued to the facility provider. The District Administrator shall then provide facility special tax credits or cash reimbursement, as appropriate, to that facility provider. (2) All facility providers shall be denied tax credit for any portion of an otherwise crediteligible facility constructed prior to execution by that provider of a facility acquisition agreement suitable to the District Administrator. Credit shall not be denied for planning or engineering costs included in a Facility Cost Estimate incurred prior to execution of that agreement.
(3) Credits shall be expended by the District Administrator in date order of the certificate of completion of the facility for which credits are requested, and each such facility shall be completely credited before the district administrator shall grant credits to a facility receiving a certificate of completion later in time. (4) Where apportionment is required, as with respect to a total facilities cost stated in the public report including two or more sub-facilities, or where more than one person or entity participates in the construction or furnishing of a facility, the determination of such apportionment and credit by the District Administrator or their designee shall be conclusive evidence of the amount of the credit derived thereby. #5..
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CITY OF MODESTO
COMMITTEE AGENDA REPORT
DATE OF MEETING:
April 4, 2022
March 16, 2022
TO: Economic Development Committee
Sue Zwahlen, Chair
Chris Ricci, Vice-Chair
David Wright, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: William Wong, Director of Utilities
SUBJECT: Upcoming Construction Projects Update
CONTACT: Jesse Franco, Engineering Division Manager, [email protected], 209-571-5175
DESCRIPTION:
Consider accepting a report on upcoming Capital Improvement Program Projects planned for bidding and construction and forwarding to Council for approval. (Funding Source: Various CIPs)
STRATEGIC PLAN ELEMENT:
The recommended action supports the 2020-2025 City of Modesto Strategic Plan Initiatives, Goal D: Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.
BACKGROUND:
In 2017 Council requested that individual Capital Improvement Program (CIP) Projects from the various departments be presented to a standing committee prior to being presented to Council for consideration of award. In 2018, in an effort to reduce the number of committee reports and improve efficiencies, staff developed a collaborative and consolidated committee report to provide an update on upcoming CIP projects scheduled to be bid and awarded for construction within six months.
Staff has prepared a report of upcoming CIP Projects that are anticipated to be bid and presented to Council for award between May 2022 and November 2022.
DISCUSSION:
The following projects are anticipated to be bid within the next six months:
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Upcoming Construction Projects Update
Utilities Department
Sutter Neighborhood Water Main Improvement Project (101154) This project will replace approximately 5,072 lineal feet of aged existing water mains within Stanislaus County, generally bounded by Sunset Avenue on the East, Rouse Avenue to the North, Sutter Avenue on the West, and Pelton Avenue on the South.
Existing water mains in this area are aged, undersized steel mains which are prone to leaking and low pressures. This project will replace the existing system with City standard water mains, valves and hydrants to improve system reliability, flows and pressures.
Construction Estimate: $2,037,835
Contingency: $203,783
Construction Administration: $203,783
City Construction Forces: $50,000
Bid Support/Engineering Support During Construction-City: $101,892 TOTAL: $2,597,293
Coffee Road Water Mains (101331)
This project will rehabilitate the water main on Sunrise Avenue from Fairmont Avenue to E. Orangeburg Avenue, as well as along Edison Avenue, Dawn Drive, Ford Avenue, Sarah Avenue and Long Court. The water mains within the project area are aged, undersized steel mains which are prone to leaks and low pressure. The project will replace the existing system with City Standard water mains, valves and hydrants to improve system reliability, flow and pressure.
Construction Estimate: $1,089,057
Contingency: $108,906
Construction Administration: $108,906
City Construction Forces: $50,000
Bid Support/Engineering Support During Construction-City: $43,563 TOTAL: $1,400,432
Sutter Trunk Phase 2 Improvements (101298)
The proposed rehabilitation project will replace approximately 5,000 LF of undersized trunk line. The limits of the project will span from the intersection of Jefferson Street and 8th Street to the intersection of Paradise Road and Sutter Avenue. The new trunk line will be installed with the appropriate slope for better flow efficiency. The sewer mains between 9th and 8th Streets have unnecessary flow splitting that can be remedied by abandoning or reconfiguring the mains. This system will be evaluated to determine the necessary improvements which could eliminate the need for the Jefferson Lift Station.
Construction Estimate: $5,000,000
Contingency: $500,000
Contract Administration – City Staff: $400,000
Bid Support/Engineering Support During Construction-City: $200,000 TOTAL: $6,100,000
MCC Replacement at Sutter and Jennings WWTP– (101372)
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Economic Development Committee, April 4, 2022
Upcoming Construction Projects Update
This project will replace the existing Motor Control Center (MCC) at the Sutter Wastewater Treatment Plant (WWTP) and at Jennings WWTP. At the Sutter WWTP, the project will replace the MCC Panels in the Sludge handling building and the breaker panel that feeds the MCC at the Sutter WWTP. At the Jennings WWTP, the Recirculation channel pumps MCC will be replaced and relocated to the room east of the existing MCC.
Construction Estimate: $700,000
Contingency: $80,000
Contract Administration – City Staff: $80,000
Bid Support/Engineering Support During Construction-City: $60,000 TOTAL: $920,000
Jennings Well Treatment Improvement (101093)
This project will be able to provide potable water service to the nearby City Composting Facility, which currently does not have a portable ware supply, and the next step in this effort is to utilize an engineering consultant to prepare the design of a complete well treatment system that will improve water quality.
Consultant Estimate: $217,100.00
Contingency: $21,710.00
TOTAL: $238,810.00
Parks, Recreation and Neighborhoods Department
Downey Shade Structure Replacement (100922)
The Downey Shade Structure at the group picnic area needs replacement. This project will replace the current structure and associated concrete below with a new structure and concrete. In addition, the project will address ADA accessibility from the parking lot to the group picnic area.
Construction Estimate: $262,000
Contingency: $26,200
Construction Administration: $26,200
Bid Support/Engineering Support During Construction-City: $4,500 TOTAL: $318,900
Mary E. Grogan Community Park – Phase 2 (101017)
Construction of Phase 2 of Mary E. Grogan Community Park. The project will include completion of the rest of the community park, irrigation, landscaping, play area, sidewalks, shade structure, drinking fountain, picnic tables, benches, restroom, security lighting, etc.
Construction Estimate: $2,195,250
Contingency: $219,525
Construction Administration: $219,525
Bid Support/Engineering Support During Construction-City: $45,000 TOTAL: $2,679,300
TRRP River Overlook (101109)
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Economic Development Committee, April 4, 2022
Upcoming Construction Projects Update
This project involves construction of a river overlook at the TRRP Gateway Parcel which will include pathways, elevated walkway and habitat restoration.
Construction Estimate: $545,000
Contingency: $54,500
Construction Administration: $54,500
Bid Support/Engineering Support During Construction-City: $8,000 TOTAL: $662,000
TRRP Carpenter Road Area Soccer Complex (101061)
This project involves construction of 2-3 Soccer fields, parking lot, security lighting, landscape and irrigation at the Carpenter Road Area Soccer Complex to the east of Bellenita Park in west Modesto.
Construction Estimate: $909,000
Contingency: $45,500
Construction Administration: $45,500
Bid Support/Engineering Support During Construction-City: $14,000 TOTAL: $1,014,000
TRRP Neece Drive Boat Launch (101071)
This project involves construction of a non-motorized boat launch, small parking lot and river access point on the Tuolumne River within the Tuolumne River Regional Park.
Construction Estimate: $500,000
Contingency: $50,000
Construction Administration: $50,000
Bid Support/Engineering Support During Construction-City: $11,000 TOTAL: $611,000
Virginia Corridor, Phase 7 (100813)
The project will continue the Tidewater Railroad Rails-to-Trail conversion program, the Virginia Corridor, Phase 7 Trail Project will complete construction of (0.75) mile of Class 1 bike trail between Woodrow Ave and Semallon Drive; and construct a grade separated (bridge structure) crossing over Standiford Ave.
Construction Estimate: $3,375,281
Contingency: $274,821
Construction Administration: $274,821
Bid Support/Engineering Support During Construction-City: $75,000 TOTAL: $3,999,923
Public Works Department
Clause Road Signal Coordination (101322)
Software and hardware upgrades to coordinate signals along Claus Road at Briggsmore, Orangeburg, Scenic, and Creekside.
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Upcoming Construction Projects Update
Construction Estimate: $237,154
Contingency: $23,715
Construction Administration: $33,914
Bid Support/Engineering Support During Construction-City: $5,217 TOTAL: $300,000
Upgrade Traffic Signals 2019 (101186)
Upgrade traffic signal equipment and communications at the following intersections: Blue Gum Avenue/Carpenter Road, I St./14th St., I St./17th St., G St./12th St., and G St./17th St.
Construction Estimate: $830,039
Contingency: $83,004
Construction Administration: $109,565
Bid Support/Engineering Support During Construction-City: $27,392 TOTAL: $1,050,000
Scenic Drive Signal Coordination (101323)
Software and hardware upgrades to coordinate signals along Scenic Drive at Bodem, Rose, Coffee, and Oakdale.
Construction Estimate: $316,206
Contingency: $31,621
Construction Administration: $45,217
Bid Support/Engineering Support During Construction-City: $6,956 TOTAL: $400,000
Staff is presenting this report of upcoming construction projects to the Economic Development Committee prior to seeking Council approval for award of the individual projects. As each project is presented to Council for approval, actions may include award of construction projects; and, if necessary, approval of agreement for construction management services, approval of agreement for engineering support during construction, approval of increase in Director’s Authority, and budget adjustment.
FISCAL IMPACT:
Anticipated project construction expenditures are reflected in the Discussion section above.
Once bids are received and evaluated for responsiveness, staff will present these items to Council for approval. If the bids received are greater than 15% of the engineer’s estimate, staff may bring individual project items back to Committee for further consideration, prior to presenting to Council.
Next steps: Upon award of projects, staff will present these items to Council for approval. #6..
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Economic Development Committee, April 4, 2022
Upcoming Construction Projects Update
Approved by:
William Wong, Director of Utilities
Joseph P. Lopez, City Manager
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