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HomeMy WebLinkAboutAGENDA REPORT 2018 0207 CCSA REG ITEM 08A ITEM 8.A. CITY OF MOORPARK,CALIFORNIA City Council Meeting MOORPARK CITY COUNCIL ® .. AGENDA REPORT A ON:_a TO: Honorable City Council FROM: Sean Corrigan, City Engineer/Public Works Director 7-2.•-•• DATE: January 26, 2018 (CC Meeting of 2/07/2018) SUBJECT: Consider Resolution Increasing the Los Angeles Avenue Area of Contribution Fees and Rescinding Resolution No. 2014-3336 BACKGROUND The Los Angeles Avenue Area of Contribution (LA AOC) fees were originally established by the County of Ventura prior to the incorporation of the City. The purpose of these fees is to provide mechanisms for future development projects, within specified geographical areas, to finance specific transportation improvements. The LA AOC fee was last adjusted in November 2014. Certain changes in the scope and cost of projects funded by this source make it necessary to recommend an adjustment to the fee amounts. Government Code Section 66017 requires that a public hearing be held prior to the adoption of a new development fee or an increase to any existing development fee. On December 20, 2017, City Council set the hearing for February 7, 2018. In preparation for the proposed public hearing, compliance with the public meeting and notice requirements of Government Code Section 66016 will be met. Staff advertised the hearing in the Ventura County Star in compliance with Government Code Section 6062a. Notice of the hearing was also provided to the Building Industry Association, Southern California Edison and the Gas Company based on their requests on file. The recommended LA AOC fee adjustments were provided to the (BIA) prior to the public hearing. Any fee increase approved by the City Council will not become effective until sixty (60) days after the date the action was taken to increase the fee. DISCUSSION The LA AOC fees were previously adjusted in November 2014 to the amounts shown below. LA AOC Fee 2014 Residential (per dwelling unit) $8,683 Commercial/Industrial (per acre) $48,624 1 S:\Public Works\Everyone\Reports\Staff Reports\2018\02_FEB\02-07-2018(LA AOC).docx Honorable City Council February 7, 2018 Page 2 A. Fee Requirements and Project Cost Estimates As with prior LA AOC fee adjustments, this adjustment is proposed for the purpose of establishing a fee amount sufficient to fund (in the amounts specified herein) certain identified projects. The costs for project design, construction and inspection have risen since the 2014 LA AOC fee adjustment. Several of the projects require additional right- of-way, as well as review and permitting by Caltrans, all of which has historically added significant cost and delays to those projects. The updated project cost estimates are set forth in Attachment 1. The revised project cost requirements total $40,986,846. The cost estimates used in the prior 2014 fee adjustment are shown as well. The cost increases are based on more recent information about project needs and requirements where known. For projects without current cost estimates, the 2014 costs were increased by 11% based on the Engineering News Record (ENR) Construction Cost Index — Los Angles for the period between 2014 and 2018. This is the Index the City uses to determine grading, road and storm drain construction cost estimates and fees for land development projects. For comparison purposes, the Consumer Price Index increased 7%, and the Caltrans Construction Price Index increased 43% over the same period. The Caltrans Index is based solely on contract costs of Caltrans projects only, where the ENR Index is based on the cost of labor, equipment and materials of a wider range of representative private and public projects. B. Estimated Future Land Development Projects Attachment 2 is a chart listing all of the future land development projects that are subject to the LA AOC fee, along with an estimate of the number of dwelling units or acres proposed by each project. The fees established by the Los Angeles Avenue AOC provided for a conversion factor of 5.6 dwelling units per acre to compute the per acre fee for commercial and industrial properties. Based on the total number of dwelling units or acres set forth in Attachment 2, the resultant total number of EDU (equivalent dwelling units) required for the calculation of revised fees is shown below. Description Revised Number 2014 Number Total Acres Commercial/Industrial 126.76 83.02 Multiplied by the Conversion Factor 5.6 5.6 Number of EDUs for Comm. /Ind. Property 710 465 Plus the Number of Residential Units 1,916 1,820 Total EDUs 2,626 2,285 C. Single Development Agreement Cap As noted under the table on page 1 of Attachment 2, there is one project, Essex, for which the LA AOC fee has been set at the 2014 rate. The lots for that project are not S\Public Works\Everyone\Reports\Staff Reports12018102_FEB\02-07-2018(LA AOC)docx Honorable City Council February 7, 2018 Page 3 included in the above calculations. The Essex Project Development Agreement rate is set until January 1, 2020. If paid on or after January 1, 2020 the Developer shall pay the LA AOC fee in effect at the time of building permit issuance. The additional funding requirements used to calculate the proposed revised fee (see Section E) do not include the LA AOC fees to be paid by Essex. D. LA AOC Funds Available A summary of the current funds available, and future anticipated receipts, for the LA AOC Fund 2014 (formerly 2501), is shown below. No provision has been made for future interest income as it is anticipated that any such interest income would be off-set by a comparable rise to the cost of engineering and construction as the result of inflation. The funds available from the prior fee adjustment are shown as well. Description Current Amount($) 2014 Amount($) Cash in Fund 2501 (1/29/18) 10,258,624 11,698,843 Plus Receivables from. Tierra Rejada Road AOC Fund Loan 30,073 177,005 Outstanding Notes and Interest(1"(2) 435,310 431,675 Total Funds Available 10,724,007 12,307,523 Notes: 1 The increase is the accrued interest for one year on the notes receivable. No principal was paid therefore a full-years'worth of interest was earned and booked as receivable 2 Two notes remain. E. Additional Funds Required Based on the above figures, the future LA AOC fees required to construct all of the projects listed in Attachment 1 are calculated below. Description Current Amount($) 2014 Amount($) Total Estimated Cost of Project Construction 40,986,846 33,578,870 Less Total Funds Available (10,724,007) (12,986,732) Total Additional Funds Required 30,262,839 20,592,138 Less Development Agreement Revenue' (3,651,714) (752,000) Funding Requirements Used for Fee Calculation 26,611,125 19,840,138 Note. 1 Essex to pay $1,736,600 in fees as described in paragraph C and Pacific Communities to pay $1,915,114 to reimburse City for LA Avenue improvements. S\Public Works\Everyone\Reports\Staff Reports12018102_FEB\02-07-2018(LA AOC)docx 3 Honorable City Council February 7, 2018 • Page 4 F. Revised Fee Calculation Based on the above information, the revised LA AOC fees are shown below. Description Current Amount($) 2014 Amount($) % Increase Total Additional LA AOC Fees Required 26,611,125 19,840,138 Divided by the Total Number of EDUs 2,626 2,285 AOC Fee per Residential Unit 10,134 8,683 16.7 Multiplied by 5 6 5 6 5.6 AOC Fee per Commercial/Industrial Acre 56,749 48,624 16.7 STAFF RECOMMENDATION ROLL CALL VOTE 1.Open the public hearing, accept public testimony and close the public hearing. 2.Adopt Resolution No. 2018- increasing the Los Angeles Avenue AOC fees to $10,134 for each residential unit and $56,749 for each acre of commercial/industrial property and rescinding Resolution No. 2014-3336. Attachments: 1. Project Cost Estimates 2. Future Land Development Estimates 3. Draft Resolution S\Public WorkslEveryone\Reports\Staff Reports\2018\02_FEB102-07-2018(LA AOC)docx Attachment 1 LOS ANGELES AOC Projects 2014 Revised Expenditures Remaining Costs Total Project Cost Less Other Total Future Total Future Code Project Name to Date Desk n R-O-W Const. Insp. 2014 Est. Current Est. Sources AOC Cost AOC Cost -- 8003 LA Ave at Beltramo Project completed 1 8004 LA Ave Signal Sync Project completed 2 C0020 Princeton Ave.Widening' 3,000,000 300,000 1,000,000 7,400,000 900,000 12,600,000 1,000,000 8,600,000 3,410,433 300,000 1,000,000 7,400,000 1,110,000 13,220,433 1,000,000 8,810,000 3 C0021 LA Ave.Widening-Sprg to Mpk2 1,200,000 700,000 1,800,000 2,100,000 300,000 6,100,000 796,770 4,103,230 2,445,633 777,000 1,998,000 2,331,000 349,650 7,901,283 796,770 4,658,880 4 C0022 Spring Rd.Widening&Median 220,000 125,000 150,000 1,500,000 200,000 2,195,000 0 1,975,000 462,354 125,000 150,000 2,000,000 300,000 3,037,354 0 2,575,000 5 8033 LA/TR Parkways Project completed -- 8039 Rail Xing Spring Project completed 6 C0004 Moorpark Ave.Widen Casey-3rd3 156,708 1,250,000 4,500,000 8,750,000 800,000 15,456,708 7,728,354 7,571,646 2,350,441 1,587,500 2,000,000 11,000,000 1,650,000 18,587,941 3,717,588 12,519,912 7 8046 LA/TR Signal Upgrade Project completed 8 C0026 LA Ave Median4 210,000 190,000 0 3,500,000 500,000 4,400,000 0 4,190,000 375,513 190,000 0 3,500,000 525,000 4,590,513 0 4,215,000 , 9 C0027 Underground Dist No.25 0 75,000 0 3,700,000 75,000 3,850,000 2,500,000 1,350,000 240 83,250 0 4,107,000 616,050 4,806,540 2,500,000 2,306,300 10 8058 LA Ave Widen-Maureen Project completed 1,200,000 to Leta Yancy 11 C0033 LA Ave.Utility Undergrounding 15,000 15,000 0 400,000 50,000 480,000 0 465,000 at Arroyo Bridge 26,360 100,000 0 500,000 75,000 701,360 0 675,000 D 12 xxxx New LA Ave Signal&Interconnect 0 0 0 0 0 0 0 0 0 100,000 0 750,000 100,000 950,000 0 950,000 13 xxxx Widen LA Ave.west of Tierra Rejada Rd.' This project is no longer included in the LA AOC since it will be funded directly by development Studies K 14 xxxx Studies for realignment Poindexter/First 0 200,000 0 0 0 200,000 0 200,000 m and Lassen/Third added to#6 Widen o 0 0 0 0 0 0 0 Z Moorpark Ave scope --I S\Public VVorks\CIPs\LA AOC\LA AOC 2018\Updated LA AOC project cost est(01-29-2018)-DK 1 Attachment 1 LOS ANGELES AOC Projects 2014 Revised Expenditures Remaining Costs Total Project Cost Less Other Total Future Total Future Code Project Name to Date Design R-O-W Const. Insp. 2014 Est. Current Est. Sources AOC Cost AOC Cost 15 xxxx Remove signal and left turns at 0 100,000 0 0 0 100,000 100,000 0 100,000 100,000 Park Lane&L.A.Ave. 16 xxxx Pedestrian Bridge over L.A.Ave. 0 100,000 0 0 0 100,000 100,000 0 100,000 100,000 17 xxxx Add'I lane from NB Princeton onto 118 0 100,000 0 0 0 100,000 100,000 0 100,000 100,000 18 xxxx Drainage Improvements 0 125,000 0 1,800,000 100,000 2,025,000 0 2,025,000 0 125,000 0 1,800,000 100,000 2,025,000 0 2,025,000 Prior Sub-total 31,979,876 Revised Sub-Total 39,035,092 Administration(5%) 1,598,994 Administration(5%) 1,951,755 Prior Total Project Requirements 33,578,870 Revised Total Project Requirements 40,986,846 Amount of Increase: >>> 7,407,977 Percent Increase: >>> 22.1% Notes 1 Partial funding by Federal &State grants 2 Partial funding by Federal grant 3 Funding and the availability of Federal and State grants for this work is to be decided.Current estimate assumes that 20%will come from grants& other sources 4 Median project breaks out to be 1/3 for Phase 1 (Freeway to Spring)and 2/3 for Phase 2(Spring to Tierra Rejada) 5 Funding sources still to be determined but preliminary plan includes:Fund 2014(LA AOC),Fund 2330(AD92-1) and Rule 20A 6 No improvements are currently necessary If development occurs west of Butter Creek Rd.the improvements will be funded by the development. S\PubliciWorks\CIPS\LA AOC\LA AOC 2018\Updated LA AOC project cost est(01-29-2018)-DK 2 Attachment 2 LOS ANGELES AOC Summary of Future Land Development Residential Project Developer Status Total Units Permits Remaining Issued Units Tract 5187 Meridian Hills K. Hovnanian Underway 248 226 22 Most likely w/i 60 days Tract 5972 Spring Road Condos Spring Rd LLC Approved 95 0 95 (Duncan/Ashley) Tract 5869 Green Island Villas Grand Moorpark Proposed 64 0 64 TT 5347 Canyon Crest Birdsall/Jones Approved 21 0 21 Everett Street Apts/Condos John Chiu Proposed 60 0 60 TT 5053&5204 Pacific Arroyo' Pacific Communities Approved 284 87 197 Casey Road Senior Aldersgate Proposed 390 0 390 Housing Investments (Mansil TT 5130 Moorpark 150 LLC City Ventures Approved 110 0 110 MRA Walnut Canyon Rd Potential 20 0 20 Tract 5847 Moorpark 67 Rasmussen Proposed 140 0 140 SP 1 Hitch Ranch Hitch Ranch Proposed 755 0 755 Owners Infill and Affordable units2 Various Potential 42 0 42 Total 2,229 313 1,916 Notes: 1. Developer pre-paid for 87 units though no permits have been issued yet. 2. Estimate includes 12 infill units city-wide and 30 affordable units on west side of Leta Yancy Project with LA AOC Fee set by Development Agreement until January 1, 2020 therefore not included in the above fee calculations _{ If paid on or after January 1, 2020 Developer shall pay the LA AOC fee in effect at the time of building permit issuance. —I i Fee Total n RPD 04-06 Essex Moorpark Apartments Essex Moorpark Approved 200 0 200 $ 8,683 $ 1,736,600 = Owner L.P. K m z -1N v S \Public Works\CIPs\LA AOC\LA AOC 2018\Summary of Future Land Development Projects 1 Attachment 2 LOS ANGELES AOC Summary of Future Land Development Commercial Project Developer Status Total Acres Acres Industrial Acres Developed Remaining IPD 2000-01 Patriot Commerce Center UST Patriot Ltd Prtnershp Underway 9.12 6.53 2.59 IPD 2009-01 Moorpark West Studios Trilliad Approved 44.47 0.00 44.47 CPD 2012-02 Kim Clement Center Kim Clement Center Expired 2.78 0.00 2.78 TT 5906 North Village Ind. Park A-B Properties Approved 18.26 0.00 18.26 Fairfield Inn Mpk Hospitality Approved 2.38 0.00 2.38 500 Los Angeles Ave Tom Lindstrom CUP Required 1.98 0.00 1.98 400 Science Drive Nearon Approved 2.20 0.00 2.20 Home Depot Site Potential 12.77 0.00 12.77 MRA So Side of High Street Potential 1.80 0.00 1.80 MRA/347 Moorpark Ave Potential 0.50 0.00 0.50 MRA/467 High Potential 0.50 0.00 0.50 Kavlico Hilltop Sunbelt Enterprises Potential 21.80 0.00 21.80 Lot between Condor and 118 Potential 2.55 0.00 2.55 Condor/Princeton Potential 3.46 0.00 3.46 Redevelop Vulcan plant Potential 2.82 0.00 2.82 Between Pentair and Studio Newburg Potential 5.90 0.00 5.90 Total 133.29 6.53 126.76 op S \Public Works\CIPs\LA AOC\LA AOC 2018\Summary of Future Land Development Projects 2 ATTACHMENT 3 RESOLUTION NO. 2018 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, RESCINDING RESOLUTION NO. 2014-3336, AND REVISING AND REENACTING THE SCHEDULE OF FEES FOR THE LOS ANGELES AVENUE AREA OF CONTRIBUTION WHEREAS, the County of Ventura established certain areas of contribution in 1981 to provide a method of collecting fees from future development projects and to promote orderly growth, such fees to be used to finance specific street improvements; and WHEREAS, upon incorporation of the City of Moorpark, the County of Ventura transferred responsibility for the administration of these Areas of Contribution to the City; and WHEREAS, since the incorporation of the City, the City has periodically made adjustments to these fees and the improvements to be funded by said fees; and WHEREAS, the fees for the Los Angeles Avenue Area of Contribution (LA AOC) were last adjusted by the City Council in 2014 by the adoption of Resolution No. 2014- 3336; and WHEREAS, it has been determined that estimated project costs have increased since the subject fees were last adjusted and it is, therefore, necessary and appropriate for the City Council to consider an increase to the LA AOC fees; and WHEREAS, Government Code Section 66000 et. seq. requires the City to hold a public hearing, as part of a regularly scheduled meeting, to consider written or oral presentation concerning any proposed increase in fees; and WHEREAS, pursuant to said Sections of the Government Code, on December 20, 2017, the City Council set the date of February 7, 2018, as the date of a public hearing to consider possible action to increase the amount of the LA AOC fees; and WHEREAS, the City Council received and considered a report on February 7, 2018 setting forth certain justifications for the approval of an increase to the fees for the LA AOC; and WHEREAS, on February 7, 2018, the City Council held a public hearing as required by law, and duly considered any input provided regarding said proposed fee increase. 9 Resolution No. 2018- Page 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Pursuant to Government Code Section 66017, this Resolution shall become effective sixty (60) days following the public hearing held on February 7, 2018, implementing those changes to the LA AOC fees described herein, upon the effective date of April 8, 2018. SECTION 2. Resolution No. 2014-3336 is hereby rescinded upon the effective date of this Resolution. SECTION 3. The fees set forth in Resolution No. 2014-3336 pertaining to the LA AOC, are hereby revised to be as follows: Per Residential Unit Per Commercial / Industrial Acre Fee Amount: $10,134 $56,749 SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 7th day of February, 2018. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 10