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CITY COUNCIL AGENDA ITEM NO. 15

 

Meeting Date: May 9, 2000

Subject/Title: Second Street Extension

Submitted by: Engineering: J. Stevenson

Approved by: Jon Elam, City Manager

RECOMMENDATION

Approve a Resolution directing City staff to reserve the unused Second Street right of way north of Central Avenue for future roadway improvements and directing staff to return to Council with a detailed financial and fee credit analysis of Assessment District 86-1 prior to any approval of Second Street plans and specifications to assure that the property owners adjacent to existing O’Hara Avenue were not overcharged for master planned roadway improvements in accordance with the Brentwood Development Fee Program.

PREVIOUS ACTION

On May 14, 1996, the City Council approved Resolution No. 96-53 approving a Right of Way Contract to purchase the right of way for the Central Boulevard and O’Hara Avenue realignment for the purchase price of $636,100.

On July 15, 1997, the Planning Commission by a 5-0 vote adopted Resolution 97-33 recommending the northerly extension of Second Street.

On July 22, 1997, the City Council denied a General Plan Amendment dealing with the Second Street extension, but directed staff not to sell the right of way and hold it for future reconsideration by the Council.

On April 11, 2000, the City Council directed staff to retain the right of way and return to Council with a slightly modified recommendation.

On April 25, 2000, the City Council directed staff to prepare a City Council Resolution directing staff to return to Council prior to any construction on Second Street and requiring a detailed analysis of the financing and fee credits associated with AD 86-1 to assure the fair treatment of the businesses adjacent to O’Hara Avenue.

BACKGROUND

The business owners adjacent to O’Hara Avenue north of Central Boulevard presented a letter to the City Council at the April 25th meeting requesting reimbursement for Assessment District costs associated with O’Hara Avenue if Second Street was extended northerly. The City Council directed staff to return with a Council Resolution, which addressed this request.

Staff’s review of the facts surrounding the costs and credits associated with this Assessment District leads them to believe that no reimbursement is due because the City has already overpaid for all of the roadways included in the district. A resolution has been prepared listing pertinent facts relating to this district and calling for a more detailed analysis by an impartial third party certified public accountant, and co-signed by the City’s Finance Director and City Engineer.

Attachments:

Resolution

Financial data sheets

Letter from Linda Vargas

Letter from property owners

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD DIRECTING CITY STAFF TO RESERVE THE UNUSED SECOND STREET RIGHT OF WAY NORTH OF CENTRAL AVENUE FOR FUTURE ROADWAY IMPROVEMENTS AND DIRECTING STAFF TO RETURN TO COUNCIL WITH A DETAILED FINANCIAL AND FEE CREDIT ANALYSIS OF ASSESSMENT DISTRICT 86-1 PRIOR TO ANY APPROVAL OF SECOND STREET PLANS AND SPECIFICATIONS TO ASSURE THAT THE PROPERTY OWNERS ADJACENT TO EXISTING O’HARA AVENUE WERE NOT OVERCHARGED FOR MASTER PLANNED ROADWAY IMPROVEMENTS IN ACCORDANCE WITH THE BRENTWOOD DEVELOPMENT FEE PROGRAM.

WHEREAS, Hal Porter Homes requested that the City of Brentwood assist in the financing of Brentwood Improvement District No. 1 in 1986 by forming an Assessment District known as AD 86-1; and

WHEREAS, the total construction cost of improvements financed by AD 86-1 was $2,313,177; and

WHEREAS, the Assessment District paid for street improvements, grading of the entire development area, construction of sub-master plan sewer, water and storm drain facilities, undergrounding of overhead utilities, purchasing all right of way for the roads and a portion of the traffic signal at Central and Brentwood Boulevard; and

WHEREAS, when the Assessment District ran out of construction funds due to cost overruns, the City paid for the cost overruns from the Roadway Facility Fee account in the amount of $260,603 and also paid from the bond trustee account on interest earned on the bonds in the amount of $159,468; and

WHEREAS, the City issued roadway facility fee credits totaling $1,242,452 for the businesses included in this Assessment District; and

WHEREAS, these fee credits included an additional $128,250 for oversizing of right of way beyond a 60 foot right of way; and

WHEREAS, the City’s direct contribution from fee credits and cash payments totaling $1,662,523 included reimbursement for one half of a modified four lane collector which included a 16 foot wide median and sound walls on both sides when the medians were only constructed 12 feet wide and no soundwalls were constructed; and

WHEREAS, the actual construction cost of O’Hara Avenue, Second Street and Central Boulevard, which includes A.C. paving, aggregate base, aggregate sub base, curb and gutter, sidewalk, media curb and gutter, and signing and striping cost, was $545,100, according to the contract with Granite Construction; and

WHEREAS, the actual cost of the traffic signal at Brentwood Boulevard and Central Boulevard was $183,600 according to the contract with Steiny Electric; and

WHEREAS, the Brentwood Facility Fee credits totaled $728,700 from these two construction contracts; and

WHEREAS, $987,187 in facility fee credits was issued for the $545,100 of construction cost of the roads; and

WHEREAS, the City Council of the City of Brentwood desires to be fair with all business enterprises in the City, and assure to the extent possible, that they pay their fair share of the cost of City wide infrastructure, but are not overcharged for such; and

WHEREAS, after giving due consideration to City expenditures and the Brentwood Facility Fee credits issued for the Assessment District roads, and to assure itself of the fairness to contributing businesses within AD 86-1, prior to any approval of Second Street plans and specifications, the City shall conduct a detailed report prepared by an impartial third party certified public accounting firm and an appraisal co-signed by the Director of Finance and the City Engineer.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby direct City staff to reserve the unused Second Street right of way north of Central Boulevard for future roadway improvements.

BE IT FURTHER RESOLVED that the City Council of the City of Brentwood does hereby direct City staff to return to Council with a detailed financial and fee credit analysis of Assessment District 86-1 to assure that the property owners adjacent to existing O’Hara Avenue were not overcharged for master planned roadway improvements in accordance with the Brentwood Development Fee Program.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 9th day of May 2000 by the following vote:

AYES: Councilmembers

NOES:

ABSENT:

City Administration
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