City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00454 2/18/2025 Consent Item 8.
Agreement: Credit Agreement Landowner Payment for Construction of Water Facilities - Panhandle 105 Project
File ID: 2025-00454
Location: District 1, Represented by Councilmember Kaplan Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute an Agreement with The Meritage Homes of California to issue water development impact fee credits for the Panhandle 105 Development Project for the amount not to exceed the actual costs of the developer’s construction of the water infrastructure.
Contact: Inthira Mendoza, Project Manager, (916) 808-1473, [email protected]; Neal Joyce, Supervising Engineer, (916) 808-1912, [email protected]; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455, [email protected]; Pravani Vandeyar, Director (916) 808-3765, [email protected]; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
Description/Analysis
Issue Detail: Staff recommends Council approve an agreement with The Meritage Homes of California (Developer), for the issuance of water development fee credits.
Developer is developing the Panhandle 105 Project, a 106.5-acre project that proposed to add 441 single-family units. The Panhandle 105 Project is a part of a larger planned mixed-use project on 589+/- acres of land in North Natomas (“Panhandle Project”). In order to provide water service to this development, the Developer is funding and constructing water transmission mains as a part of the City’s water system.
Per City Code Section 13.04.820, the Developer is eligible for water development fee credits upon Council’s authorization since it is constructing the major facilities for the City’s drinking water system.
File ID: 2025-00454 2/18/2025 Consent Item 8.
This agreement authorizes the credits, establishes the credit amount and specifies the process for obtaining those credits.
Policy Considerations: City Council approval is required to authorize credit for transmission facilities per City Code 13.04.820, subsection F.
Economic Impacts: None.
Environmental Considerations: On July 3, 2018, City Council approved the Panhandle Project and certified an environmental impact report (EIR) along with adopting a mitigation monitoring and reporting program (MMRP) (Resolution No. 2018-0287). On August 3,2018, staff filed a Notice of Determination with the Sacramento County Clerk and the California Office of Planning and Research, State Clearinghouse. The subject activity implements components and processes associated with the approved Panhandle Project, which was included in the analysis conducted in the certified EIR.
No further environmental review is required.
Sustainability: The proposed project is consistent with the 2040 General Plan Policy LUP-1.1 as it requires new development to provide adequate facilities needed to provide services to accommodate growth.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Developer is constructing the water transmission mains as part of the Project’s need for development, and in doing so, per City Code Section 13.04.820, is eligible for water development fee credits upon council’s authorization.
Financial Considerations: In accordance with the City fee credit policies and the Agreement, the City will issue fee credits from the Water Development Fees Fund (Fund 6001) to The Meritage Homes of California in an amount not to exceed the actual cost of the construction of the water infrastructure for the City’s drinking water sytem. Once the City accepts the infrastructure, the capital assets completed through the fee credits will be added to the Water Development Fees Fund (6001), in accordance with the Generally Accepted Accounting Principles (GAAP).
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): Not applicable.