Agenda Item No.
CITY OF YUCAIPA
AGENDA REPORT
7 TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer j Landon Kern, Assistant City Engineer?
Ryan Miller, Housing & Economic Development Analyst
FOR: City Council Meeting of November 13, 2024
SUBJECT: Fair Share Agreement and Memorandum of Understanding with the City of Calimesa
RECOMMENDATION:
That the City Council:
1. Approve the Fair Share Agreement and Memorandum of Understanding for the County Line Road/Interstate 10 Freeway Interchange Interim Traffic Signal Project between the City of Yucaipa and the City of Calimesa; and
2. Authorize the City Manager to execute the Agreement on behalf of the City of Yucaipa.
BACKGROUND/DISCUSSION:
The traffic signals are an interim solution, as the intentions to improve the interchange to an ultimate configuration. A future agreement between the cities of Calimesa and Yucaipa will address how the costs for the ultimate improvements will be shared among the cities and future developments.
In July 2022, the Yucaipa Planning Commission approved a Conditional Use Permit for an approximately 363,000 square foot warehouse (Case No. 21-138 CUP/ARC), An allowable use allowed under Yucaipa's Freeway Corridor Specific Plan approved in 2008. The Project Conditional of Approval No. 122, requires the Warehouse Project to construct interim traffic signals at the on and off ramps of Interstate 10 and County Line Road, prior to the issuance of a certificate of occupancy, since the Warehouse Project will use the County Line Road interchange to access Interstate 10. The traffic signals are considered interim, since the ultimate improvements at these ramps will be incorporated into a future interchange improvement project. The City of Calimesa and Yucaipa will be partnering to facilitate this project through coordinating with Caltrans.
In October 2020, the City of Calimesa approved the RV Fueling Project (DPR 19- 04/CUP19- 05/CUP 19-06) at 7th Place and County Line Road. The RV Fueling Project involves two phases.
The first phase is complete and operational, with a convenience store and RV fuel canopy, and the second phase is a one drive -through retail pad that is to be developed and constructed in the future.
Condition of Approval 7.04 for the RV Fueling Project required the design and construction of interim traffic signals at the on and off ramps of Interstate 10 and County Line Road prior to the second phase of the RV Fueling Project, with the possibility of fair share reimbursements from other projects that have an impact on the interchange.
Since the Warehouse Project will be completed and ready for occupancy before Phase 2 of the RV Fueling Project, the warehouse developer plans to construct the interim traffic signals. The Warehouse Project Condition of Approval No. 122 requires that the Warehouse Project construct the interim signal and identifies that the RV Fueling Project will contribute up to 25% of the cost of the signal, with Phase 1 paying 13% of the cost and Phase 2, if constructed, contributing 12% of the cost. Calimesa has the 13% cost share held in deposit, based on an estimated total cost of $1,200,000.
Since projects from each city will be contributing to the interim traffic signals, the cities have been negotiating a Fair Share Agreement and Memorandum of Understanding outlining the expectations of each city and their respective projects. This Agreement not only outlines the expectations for the approved project, but also the expected conditions for future projects that will impact the interchange.
Both cities agree that they shall inform the other of any development applications that will impact the I-10/County Line Road interchange, and that said development will be required to contribute a fair share of costs toward the interim traffic signal as a condition of approval. Neither city can issue a certificate of occupancy to any impacting project until the interim signals are complete and operational.
The plans for the interim traffic signal have been submitted to Caltrans for review and approval by the Warehouse Project developer. The plans have been developed to accommodate the installation of the traffic signals in 2-phases. The first phase will allow for the temporary signals to be installed and supported with the temporary poles and overhead wires. The second phase will replace these temporary signals with permanent steel poles that will remain in place until the interchange improvements are constructed at a later phase. Additionally, the developer is required to post performance bonds for the permanent signals to ensure they are constructed in a timely manner.
On October 21, 2024, The City of Calimesa's City Council approved the Fair Share Agreement and Memorandum of Understanding as it is presented to you this evening. Staff is recommending that the City Council approve the Fair Share Agreement and Memorandum of Understanding.
FISCAL IMPACT:
The recommendations do not result in a Fiscal Impact.
Attachment(s):
1. Fair Share Agreement and Memorandum of Understanding Approved by:
ATTACHMENT 1
FAIR SHARE AGREEMENT AND MEMORANDUM OF UNDERSTANDING
COUNTY LINE RD/INTERSTATE 10 FREEWAY INTERCHANGE
INTERIM TRAFFIC SIGNAL PROJECT
This Memorandum of Understanding (MOU) is made and entered into this _ day of , 2024, by the City of Calimesa, a California municipal corporation ("Calimesa") and the City of Yucaipa, a California municipal corporation ("Yucaipa").
RECITALS
WHEREAS, the Cities of Calimesa and Yucaipa (collectively referred to as the "Cities" or "Parties" and individually as "City" or "Party") recognize the current and future potential development of the properties adjacent to the existing County Line Road/Interstate 10 Freeway Interchange ("Interchange") and the associated vehicular traffic generated by those developments that will use the Interchange as the primary or secondary access to the I-10 Freeway; and WHEREAS, the Cities plan to collaborate to improve the Interchange to its ultimate condition ("Ultimate Interchange Improvements"); and
WHEREAS, The Ultimate Interchange Improvements will not be constructed for several years, and thus an Interim Signal Project is needed; and WHEREAS, the estimated cost of the design, permitting and construction of the Interim Signal Project is estimated to be in the amount of $1,200,000; and WHEREAS, on October 12, 2020, Calimesa approved the development of the 7th Place and County Line Road RV Fueling and Retail Project ("RV Fueling Project" or "DPR 19-04/CUP 19- 05/CUP 19-06"), with the Interchange serving as the primary access to the I-10 Freeway. The RV Fueling Project is to be constructed in two phases, with the first phase (RV Fuel canopy), completed prior to the execution of this agreement, and the second phase (one drive -through retail pad) to be developed, constructed and opened in the future; and WHEREAS, the RV Fueling Station Project includes a condition of approval [Exhibit A] requiring the design and construction of interim traffic signals at the intersection of County Line Road & the Eastbound on/off ramps and the intersection of County Line Road & the Westbound on/off ramps ("Interim Signal Project") to mitigate additional traffic caused by the development of the RV Fueling Project and to be 100% funded and constructed by the developer of the RV Fueling Project (with the possibility of fair share reimbursement — see Exhibit A) prior to completion of the second phase of the RV Fueling Project; and WHEREAS, under no circumstances shall Calimesa be obligated to contribute any funds to the costs incurred in connection with the Interim Signal Project; and WHEREAS, on July 6, 2022, Yucaipa approved the development of the Transwestern Development Warehouse Project ("Warehouse Project" or "Case No. 21-138 CUP/ARC"), with the Interchange serving as the primary access to the I-10 Freeway; and
WHEREAS, Condition of Approval No. 122 [Exhibit B] of the Warehouse Project provides that if the Ultimate Interchange Improvements have not been completed prior to the development and construction of the Warehouse Project, the Warehouse Project shall design, apply for and receive all necessary permits, and install the Interim Signal Project in collaboration with the RV Fueling Project. Condition of Approval No. 122 further provides that the Warehouse Project's initial fair share contribution of the total cost of the Interim Signal Project shall be 100% of the total cost (net of 87% after reimbursement associated with Phase 1 of the RV Fueling station project) and the RV Fueling Station's fair share cost shall be 13% for Phase 1 and capped at 25% of the total cost, only if and when Phase 2 moves forward will the remaining 12% be paid; and WHEREAS, pursuant to Exhibit B, "To ensure efficient access from the Project and the RV Fueling Project to the I-10 Interchange, should a multi -way stop, traffic signal or other circulation improvements be necessary and warranted at the County Line Road and County Line Lane intersection to support any substantive changes in traffic volumes, based on a traffic analysis reviewed and approved by the City of Yucaipa, the Warehouse Project would be responsible for 100% of the cost of such improvements." Yucaipa will provide Calimesa the opportunity to also review and approve said traffic analysis; and
WHEREAS, Cities recognize future unentitled potential development projects in each city, planning to use the Interchange as the primary or secondary access to the I-10 Freeway, should also provide an "up -front" fair share contribution for the total cost of the Interim Signal Project; and
WHEREAS, the future unentitled potential development projects' "up -front" fair share contribution for the total cost of the Interim Signal Project shall be paid prior to the issuance of a building permit, to the developer which designed and constructed the Interim Signal Project (either the RV Fueling Project or the Warehouse Project); and
WHEREAS, the Cities of Yucaipa and Calimesa will mutually benefit from the construction of the Interim Signal Project.
NOW, THEREFORE, in consideration of the mutual promises contained herein including recitals, it is agreed by the Cities as follows:
SECTION I. The above recitals are hereby incorporated by this reference.
SECTION II. OBLIGATION OF BOTH CITIES
A. Both Parties agree to cooperate in a joint effort to facilitate the design, permitting and construction of the Interim Signal Project by the Warehouse Project developer in an efficient manner to the benefit of results to both communities.
B. Both Parties agree to cooperate in a joint effort to require unentitled private land development projects utilizing the Interchange as the primary or secondary access to the I-10 Freeway to pay their "up -front" fair share contribution for the Interim Signal Project if all of the following criteria are met:
i. Land development projects generating more than 200 daily vehicle trips using rates from the latest edition of the ITE's Trip Generation Manual; or ii. Land development projects adding 21 or more trips during either the AM or PM peak hours to the County Line Road & I-10 Freeway Westbound on/off ramp intersection or the County Line Road & I-10 Freeway Eastbound on/off ramp intersection.
This requirement will be identified and included in the conditions of approval applied to the entitlement approval of such land development projects. Land development projects include projects to be entitled prior to traffic signal construction and projects entitled within 90 days after the completion of the Interim Signal Project. iv. Neither Party will issue a certificate of occupancy for any land development project identified in Section II.B (above) until the Interim Signal Project has been completed.
C. If required by Caltrans during permit application review, both parties agree to consider and coordinate with Caltrans in a joint effort to determine if another Caltrans approved intersection improvement providing equivalent enhancements to the intersections' level of service can be constructed in lieu of the Interim Signal Project.
D. Both Parties agree to negotiate and consider a separate agreement for the preparation of the Ultimate Interchange Improvements.
SECTION III. OBLIGATIONS OF YUCAIPA
A. Yucaipa shall notify Calimesa when a complete application has been received for the entitlement of a land development project that meets the criteria presented in Section IIB of this agreement.
B. Yucaipa shall determine the fair share contribution amount for the Interim Signal Project to be paid by each land development project based on the traffic impact analysis and provide such information to Calimesa for review and concurrence.
SECTION IV. OBLIGATIONS OF CALIMESA
C. Calimesa shall notify Yucaipa when a complete application has been received for the entitlement of a land development project that meets the criteria presented in Section IIB of this agreement.
D. Calimesa shall determine the fair share contribution amount for the Interim Signal Project to be paid by each land development project based on the traffic impact analysis and provide such information to Yucaipa for review and concurrence.
SECTION V. MISCELLANEOUS
A. Notices. All notices, demands, requests, consents, approvals, or communications from one Party to another shall be personally delivered or sent by facsimile or e-mail to the persons
set forth below and shall be deemed given one (1) business day after it is sent. Alternatively, it shall be deemed given five (5) calendar days after deposit in the United States mail, certified and postage prepaid, return receipt requested, and addressed as follows, or at such other address as either Party may from time to time specify to the other parties in writing:
To Calimesa:
To Yucaipa
City of Calimesa
908 Park Avenue
Calimesa, California 92320
Attn: City Manager
Fax: 909.795.4399
E-mail: [email protected]
City of Yucaipa
34272 Yucaipa Boulevard
Yucaipa, California 92399
Attn: City Manager
Fax: 909.790.9203
E-mail: [email protected]
The Parties agree to accept facsimile or scanned signed documents and agree to rely upon such documents as if they bore original signatures. Each Party agrees to provide to the other parties, within seventy-two (72) hours after transmission of such a facsimile or scan, the original documents that bear the original signatures.
B. Amendment. This Agreement may not be modified or amended, nor any provision or breach waived, except with approval of both Parties in a writing signed by both Parties which expressly refers to this Agreement.
C. Venue. The venue of any action or claim brought by any Party to this Agreement shall be either the Superior Court of California, County of San Bernardino, San Bernardino District, or the Superior Court of California, County of Riverside. If any action or claim concerning this Agreement is brought by any third -party and filed in another venue, the Parties hereto agree to use their best efforts to obtain a change of venue to either the Superior Court of California, County of San Bernardino, San Bernardino District, or the Superior Court of California, County of Riverside.
D. Neutral Interpretation. Cities have each cooperated in the drafting and preparation of this Agreement and in any construction to be made of this Agreement, the same shall not be construed against either Party to this Agreement in the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein.
E. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which shall constitute one and the same instrument.
F. Term. This Agreement shall terminate ninety (90) days after completion of the Interim Signal Project and acceptance of the final accounting of the fair share contributions by both Cities in writing. After final accounting approvals by both cities, no new land development projects will be required to contribute.
G. Applicable Law. The validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of California.
SECTION VI. MUTUAL INDEMNIFICATION
Neither Party to this Agreement nor officers nor employees thereof shall be responsible for any claim, lawsuit, damage or liability occurring by reason of anything done or omitted to be done by the other Party to the Agreement under or in connection with any work, authority, or jurisdiction not delegated to the parties under this Agreement. It is also agreed that, pursuant to Government Code Section 895.4, each Party shall fully defend, indemnify and hold the other Party harmless from any liability imposed for injury (as defined by Government Code Section 810.8) occurring by reason of anything done or omitted to be done under or in connection with work, authority, or jurisdiction of that Party under this Agreement.
SECTION VII. ATTORNEYS FEES. In the event any action is commenced to enforce or interpret the terms or conditions of this Agreement, the prevailing Party shall, in addition to any other costs and relief, be entitled to reasonable attorney's fees. Both Parties agree to submit any unresolved issues to binding arbitration, upon terms to be negotiated and agreed upon between the Parties.
IN WITNESS THEREOF, the parties hereto have authorized this Agreement to be executed by their respective officials thereunto duly authorized.
ATTEST:
ene Gerdes, City`Clerk
ATTEST:
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CITY OF CALIMESA
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Mayor
CITY OF YUCAIPA
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Ana Sauceda, City Clerk Date City Manager Date
EXHIBIT A
RV Fueling Project Condition of Approval 7.04 (PC Resolution 2020-02) (Calimesa):
MM TIA-1: The proposed project shall implement the following intersection improvements prior to issuance of certificate of occupancy for Phase 2 development:
• I-10 Southbound Ramps (NS) at County Line Road (EW) — #6 - Install a traffic signal • I-10 Northbound Ramps (NS) at County Line Avenue (EW) — #7 - Install a traffic signal The City of Calimesa and California Department of Transportation (Caltrans) plan to install roundabouts at both of these ramp intersection locations. The anticipated installation of these roundabouts is Year 2023. Roundabouts at this freeway interchange were analyzed for all future traffic scenarios. Traffic signal installation would be a temporary measure until the roundabouts are constructed, with feasibility and necessity to be determined by the City of Calimesa and Caltrans.
Traffic signal installation as an interim mitigation measure would be required to mitigate project impacts. The project may be eligible for a reimbursement agreement for construction of these improvements. The reimbursement agreement shall take in account the project's fair share contribution and payment of other fees for the impacted intersections.
EXHIBIT B
Warehouse Project (Case No. 21-138 CUP/ARC) Condition of Approval No. 122 (Yucaipa):
If the ultimate I-10 interchange improvement project has not been completed, Project shall be responsible for the design, permitting, and installation of interim traffic signals at the intersections of I-10 SB Ramps/County Line Road and I-10 NB Ramps/County Line Road (Interim Signal Project) in collaboration with the 7th Street & County Line Road RV Fueling & Retail Project (RV Fueling Project) in the City of Calimesa. If the RV Fueling Project installs the Interim Signal Project, the Project will provide a maximum "up -front" fair share contribution of 75% to the Interim Signal Project. If the Project installs the Interim Signal Project, the RV Fueling Project will pay a maximum of 25% of the "up -front" cost of the Interim Signal Project, which is estimated to be $1,200,000 based on the RV Fueling Project traffic impact analysis. However, the ultimate fair share amounts will be based on both cities requiring a fair share reimbursement to the development project (Project or RV Fueling Project) constructing the Interim Signal Project from those other development projects using the County Line/I-10 Interchange as their primary or secondary access to the I-10 Freeway prior to the completion of the ultimate interchange improvements. The fair share reimbursement for those other development projects will be incorporated in a Memorandum of Understanding (MOU) between the City of Calimesa and the City of Yucaipa and will require the fair share reimbursement be paid prior to the issuance of a building permit. The City of Calimesa and the City of Yucaipa will prepare the MOU that provides the schedule, cost of the Interim Signal Project, and fair share contribution of each development project to the Interim Signal Project or another Caltrans approved intersection improvement that provides equivalent enhancement to the intersections' levels of service. The Interim Signal Project plans must be completed and submitted to Caltrans prior to issuance of building permits. The Interim Signal Project must be operational prior to certificate of occupancy. To ensure efficient access from the Project and the RV Fueling Project to the I-10 Interchange, should a multi -way stop, traffic signal or other circulation improvements be necessary and warranted at the County Line Road and County Line Lane intersection to support any substantive changes in traffic volumes, based on a traffic analysis reviewed and approved by the City of Yucaipa, the Transwestern project would be responsible for 100% of the cost of such improvements.
Exhibit C
Standard condition of approval to be applied to future entitlement approvals by both Cities:
"This Project is subject to the Fair Share Agreement and Memorandum of Understanding — County Line Road/Interstate 10 Freeway Interchange Interim Traffic Signal Project entered into by the City of Calimesa and City of Yucaipa (Agreement Section I.C.iii)."