REPORT TO COUNCIL
SUBJECT
Title
Approve a Transportation/Traffic Impact Fee Reimbursement Agreement with Remington LLC for the Construction of Intersection Improvements at 1010 Sunnyvale Saratoga Road and Approve Budget Modification No. 51 to appropriate $417,831 to a New Project, Improvements at Sunnyvale Saratoga Road and Remington Drive.
Report
BACKGROUND
On November 27, 2017, the Planning Commission approved a Special Development Permit (#2017-7633) to allow the construction of an 18,600-square foot commercial building at the northeast corner of Sunnyvale Saratoga Road and Remington Drive for a child care center use.
Per the Conditions of Approval (“COA”) EP-27 (Attachment 1 - Excerpt of COAs) associated with the Special Development Permit, Remington LLC (“Developer”) was required to design and construct a right-turn lane at the northeast corner of Remington Drive and Sunnyvale Saratoga Road (“project”). This work includes widening the roadway on Remington Drive and a traffic signal modification at the intersection. The project was identified as an intersection improvement in the City of Sunnyvale Traffic Mitigation Program Study (Attachment 2 - List of Intersection Improvements Excerpt).
The development project is required to construct these intersection improvements prior to building occupancy on 1010 Sunnyvale Saratoga Road. These improvements are to be credited against the Traffic Impact Fees (“TIF” - also referred to as “Transportation Impact Fees”) required of the Developer. The project’s COAs stated that if the construction cost of the improvements exceeded the developers’ TIF requirement, a reimbursement agreement would be completed to allow the City to reimburse the Developer.
EXISTING POLICY
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
The Planning Commission adopted a Mitigated Negative Declaration for the approval of Special Development Permit 2017-7633 on November 27, 2017. As the reimbursement agreement being considered was a condition of approval for that action, no further environmental review is necessary to take the proposed action.
DISCUSSION
Staff and Remington LLC worked together during project development to define the improvements at Sunnyvale Saratoga Road/Remington Drive intersection. Detailed improvement plans for the right-turn lane pocket were provided to the City for approval in accordance with the Conditions of Approval for the development project. The project construction cost is estimated at $558,027.72 with a contingency of $41,972.28 for a total amount of $600,000.
Although the Conditions of Approval for this project do not specifically mention a contingency, the City Attorney’s Office has determined that application of a contingency up to the TIF allocated for this project ($600,000) is acceptable. The reimbursement agreement has provisions that the Developer cannot utilize the contingency funds without prior City approval.
The Developer’s TIF responsibility is $182,169. Therefore, a reimbursement agreement and budget modification are required so the City can pay the costs that exceeded the TIF owed by the Developer (Attachment 3).
FISCAL IMPACT
The City imposes a Traffic Impact Fee on land development projects which generate new automobile trips to offset the City’s cost of public improvements to the transportation network. Improvements at this intersection are identified as part of the Transportation Strategic Plan and are eligible for TIF Funding.
Budget Modification No. 51
FY 2017/18
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Current |
Increase/ (Decrease) |
Revised |
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Capital Projects Fund/Traffic Impact Fees Sub-Fund |
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Reserves |
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Capital Reserve |
$19,333,814 |
($417,831) |
$18,915,983 |
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Transfers Out |
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Transfer to General Assets Sub-Fund (New Project-1010 Sunnyvale Saratoga Road Traffic Signal) |
$0 |
$417,831 |
$417,831 |
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Capital Projects Fund/General Assets Sub-Fund |
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|
|
|
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|
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Transfers In |
|
|
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|
Transfer from Traffic Impact Fee Sub-Fund (New Project-1010 Sunnyvale Saratoga Road Traffic Signal) |
$0 |
$417,831 |
$417,831 |
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Expenditures |
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|
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(New Project-1010 Sunnyvale Saratoga Road Traffic Signal) |
$0 |
$417,831 |
$417,831 |
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PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
STAFF RECOMMENDATION
Recommendation
Approve the Cost Reimbursement Agreement, in substantially the same form as Attachment 3 to the report, with Remington LLC for the construction of Intersection improvements at Sunnyvale Saratoga Road/Remington Drive intersection and authorize the City Manager to Execute the Agreement, and Approve Budget Modification No.51 in an amount of $417,831.
Staff
Prepared by: Arnold Chu, Senior Engineer
Reviewed by: Chip Taylor, Director, Public Works
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Excerpt from Condition of Approval EP-29
2. List of Intersection Improvements Excerpt
3. Reimbursement Agreement