Title
RESOLUTION NO. 2016-221 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A REIMBURSEMENT AGREEMENT FOR THE CONSTRUCTION OF MONTECITO NEIGHBORHOOD PARK WITHIN OTAY RANCH, VILLAGE 2 AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED)
Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
Body
SUMMARY
On November 4, 2014, by Resolution 2014-213 Council approved the Agreement Regarding the Construction of Parks P-1, P-2, P-3, P-5 and P-6 in a portion of Otay Ranch Village 2, (“Overall Parks Agreement”). The Village 2 master developer, Baldwin and Sons, is constructing the Montecito Neighborhood Park. The Reimbursement Agreement under consideration herein is the next step in the construction of Park P-3, “Montecito Neighborhood Park” for Village 2. A small number of Village 2 merchant builders were not subject to the Overall Parks Agreement and paid in-lieu park fees to the City. This Reimbursement Agreement is necessary to reimburse PAD fees that Baldwin paid for dwelling units already constructed, prior to the Overall Parks Agreement, as well as for any work done in excess of their fair share of acquisition and improvement costs. The funds for reimbursement shall come from PAD fees paid for Village 2 by merchant builders who were not parties to the Overall Parks Agreement, from PAD fees paid by Baldwin and Sons, Inc. prior to the execution of the Overall Parks Agreement and from PAD fees collected for the Olympic Pointe project.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The proposed project complies with the California Environmental Quality Act (CEQA) and has determined that the proposed project was adequately covered in the previously adopted Final Second Tier Environmental Impact Report, No. 02-02 and Final Supplemental Environmental Impact Report No. 12-01. Thus, no further environmental review or documentation is required.
Body
Environmental Determination
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed project was adequately covered in the previously adopted Final Second Tier Environmental Impact Report, No. 02-02 and Final Supplemental Environmental Impact Report No. 12-01. Thus, no further environmental review or documentation is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The Village of Montecito, Village 2 of the Otay Ranch is generally located south of Olympic Parkway and west of La Media Road. The master plan for the first park to serve the Village, Park P-3, Montecito Neighborhood Park, was approved by City Council on January 27, 2015. The park is located adjacent to the private swim club at the intersection of Santa Diana Road and Santa Victoria Road.
Prevailing wage bids for the construction of the park were received by the developer, Baldwin and Sons, on June 20, 2016. The first phase of the park is anticipated to be open to the public in early 2018. Park design and construction are estimated to total $5.3 million (excluding City staff costs).
Approval of the Reimbursement Agreement will reimburse the developer for construction of P-3 from the PAD fees it paid prior to the execution of the Overall Parks Agreement, from those PAD fees attributable to Village 2 Merchant Builders who were not subject to the overall Village 2 Parks Agreement, and the balance from PAD fees collected for the Olympic Pointe project.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The provision of neighborhood parks that this agreement enables, addresses the Healthy Community goal as it seeks to provide recreational opportunities for residents. Well used neighborhood parks within a community help foster more secure, strong and connected communities.
CURRENT YEAR FISCAL IMPACT
All staff costs associated with the preparation of this report and the proposed agreement are borne by the developer, resulting in no net fiscal impact to the General Fund or Development Services Fund.
Approval of the resolution authorizes a reimbursement agreement with Baldwin & Sons for costs incurred designing and constructing Montecito Park (Neighborhood Park P-3), and appropriates funds for this purpose.
Reimbursable costs for design and construction are currently estimated to total $5.34 million (all phases) as summarized in Table 1 below.
Table 1 - Total Reimbursable Amount, Estimated
|
Description |
Phase 1 Cost |
Phase 2 Cost |
Total Cost |
|
Pre Bid Construction Cost Estimate |
$3,797,831 |
$1,312,864 |
$ 5,110,695 |
|
Design Costs |
$ 240,950 |
- |
$ 240,950 |
|
Total Reimbursable Amount |
$4,038,781 |
- |
$ 5,351,645 |
Actual amounts to be reimbursed may vary based upon actual costs incurred, subject to specific adjustments authorized in the Reimbursement Agreement.
Phase 2 construction costs are not anticipated in the near future and are therefore not recommended for appropriation at this time, reducing the recommended appropriation by $1.31 million, from $5.35 to $4.04 million.
There are sufficient funds in the Parkland Acquisition and Development (PAD) fund available for this purpose. Anticipated sources of funds available are as summarized in Table 2 below.
Table 2 - Total Funds Available, Estimated
|
Description |
Phase 1 + Design |
Phase 2 |
Total |
|
Otay Ranch Village 2 |
|
|
|
|
PAD Fees Received |
4,010,530 |
|
4,010,530 |
|
Interest Earnings through 06/30/2015 |
174,721 |
|
174,721 |
|
CIP Expenses (parks master planning efforts) |
(244,000) |
|
(244,000) |
|
Otay Ranch Village 2 PAD Fees Available |
3,941,251 |
|
3,941,251 |
|
|
|
|
|
|
Eastlake III Senior (Olympic Pointe) Funds |
97,350 |
1,312,864 |
1,410,394 |
|
|
|
|
|
|
Total |
4,038,601 |
1,312,864 |
5,351,645 |
The use of funds collected from the Eastlake III Senior Project (Olympic Pointe) is authorized by Resolution 2006-191 (Attachment 2). The 2006 action waived the Parkland Acquisition component of the City’s PAD fees due per Chula Vista Municipal Code 17.10, given the lack of available parkland acreage that could be acquired to serve the development. In place of the standard Parkland Acquisition in-lieu fee, the developer agreed to make a one-time payment to be spent on other parks and public facilities serving the City’s eastern territories.
Additional interest earnings accruing to the Otay Ranch Village 2 PAD fees subsequent to this action and prior to disbursement will be applied to reduce the Olympic Pointe funds allocated. Should the final reimbursement fall below the above estimate, the Olympic Pointe funds allocated would be reduced commensurately. Reimbursement in excess of the above estimate would be funded through a combination of additional interest earnings accrued to the Otay Ranch Village 2 PAD in-lieu fees and the Olympic Pointe funds.
ONGOING FISCAL IMPACT
Montecito Park is being constructed in two phases. The proposed resolution appropriates funds sufficient to reimburse the projected phase 1 construction costs and all project design costs in the current fiscal year; however, phase 1 reimbursements may carry forward into subsequent fiscal years. The proposed resolution does not appropriate funds for reimbursement of phase 2 construction costs. These monies will be appropriated via future budget processes.
All park design and construction reimbursements per the proposed agreement will be funded via a combination of PAD fees collected from builders in Otay Ranch Village 2 and park funds contributed by the Eastlake III Senior Project (Olympic Pointe). No other funds will be applied.
Upon completion and acceptance of the park, the General Fund will be responsible for ongoing park maintenance costs, as contemplated in the Fiscal Impact Analysis associated with the Public Facilities Financing Plan for Otay Ranch Village 2.
ATTACHMENTS
1. Reimbursement Agreement: Reimbursement for the Construction of Montecito Neighborhood Park P-3
2. Resolution 2006-191
Staff Contact: Mary Radley, Landscape Architect, Development Services