COUNCIL AGENDA ITEM NO. 15
Meeting Date: November 28, 2000
Subject/Title: Northwest Quadrant Infrastructure/CIFP 2001-1
Submitted by: Engineering: J. Stevenson
Approved by: Jon Elam, City Manager
Approval of a Resolution adding the Northwest Quadrant Infrastructure to the
2000/05 Capital Improvement Program, directing the City Engineer to initiate
right of way acquisitions in order to widen Lone Tree Way and realign Fairview
at Lone Tree Way, directing the City Engineer to initiate discussions with
the development community to develop a Capital Improvement Financing Program
(CIFP 2001-1) to assist in financing the required engineering and infrastructure
to support the anticipated commercial development in this quadrant of the City,
directing the City Engineer to hire a consultant to assist the City in developing
environmental mitigation measures for this and other City infrastructure and,
if possible, develop a mitigation bank to keep environmental mitigation expenditures
within the City limits of Brentwood or immediately adjacent, to the maximum
On November 10, 1998, the City Council approved the annexation of the northwest
are into the City of Brentwood.
The City is currently experiencing an increase in development applications
in the northwest quadrant of the City. That area would generally be described
as between Lone Tree Way and Sand Creek Road and between Heidorn Ranch Road
and Fairview Avenue. The area is depicted on the attached exhibit of CIFP 2001-1.
The first interest in the area came from commercial developers and has now
been followed by residential developers. Staff is hearing that most of these
developers intend on starting construction next spring or summer. Therein lies
This quadrant of town has very little in the way of infrastructure and certainly
not enough to support the type of developments being proposed. The City has
waited a long time for commercial developments like the ones being proposed,
and we need to be ready.
In an attempt to prepare the City for this development, staff gathered the
engineers (both City and consultant teams) to brainstorm what infrastructure
was needed to support the proposed development. The brainstorming session yielded
the following minimum improvements:
1. Lone Tree Way from Heidorn Ranch Road to Fairview Avenue.
2. Realign the Fairview intersection with Lone Tree Way to move it away from
the railroad for public safety.
3. Heidorn Ranch Road from Lone Tree Way to Sand Creek Road.
4. Sand Creek Road from Heidorn Ranch Road east to the Bypass.
5. A storm drain running parallel to Lone Tree Way and south of it from the
Bypass to Fairview Avenue.
6. A Zone II Water System Pump Station.
The exact cost of these improvements will vary depending on how many participants
we have in the CIFP and what level of improvements are decided upon. The concept
will be to design the full improvements and then to only build a portion of
the roadways depending on funding. In other words, we will design six lanes
on Lone Tree Way, but will probably only construct four lanes through most
of the area. Construction cost may vary from $20 million to $35 million.
Staff has informed the Council previously of the right-of-way requirements
through this area. Widening Lone Tree Way in particular will necessitate the
taking of some of the homes fronting on it. Staff does not know at this point
the total number of homes affected in this project. The first four that staff
is aware of belong to the Lima and Lopez families. This is one family (two
brothers and two sisters) that has resided on Lone Tree Way just west of the
railroad tracks for over 50 years. These are long-standing residents of the
area with impeccable reputations. Tony Lopez, as an example, sat on the school
board for over 35 years. The widening of Lone Tree Way will necessitate the
taking of the two homes on the south immediately and will ultimately require
the removal of the northerly homes. The members of the family are all in their
seventies and eighties and wish to stay together. Staff has met with the family
on several occasions to keep them informed of the progress of CIFP 2001-1.
The family has looked at new homes throughout the City and has asked if we
can place them in four new homes in the Garin Ranch subdivision. This is new
territory for the City and before answering questions like that, we had to
do a little homework; homework like getting appraisals of the homes. We have
two of the appraisals and are awaiting receipt of the other two.
Following discussions with Jim McKeehan of Signature Properties and a little
research at their sales office, it now looks like we will be able to place
the Lima and Lopez families in new homes in the Garin Ranch. The existing homes
on Lone Tree Way appraise somewhat higher than the new homes in the Garin Ranch,
which gives us the ability to facilitate this move. The purchase of the new
homes will be accomplished through issuing Facility Fee Credits up to the value
of the new homes to Signature Properties. Staff is currently projecting that
the new homes will be paid for fully through Fee Credits prior to the families
moving in. If this is not the case, the City will cash out the homes from the
Facility Fee account. A rough draft of the Signature agreement is attached
as Exhibit ‘A’ for your review. This Exhibit is preliminary in nature, and
only offered as an example of negotiations to date. The final agreement will
be brought to Council for approval at a future date.
One interesting side note here is the tax implications of the families selling
their homes to the City and moving into new ones. What happens to their property
taxes? Since they are selling under the threat of condemnation, and since the
new homes are worth no more than 125% of the value of their old ones (in this
case, all new homes are worth less than the old ones), the tax savings of Prop
13 transfers to the new homes.
The City will obviously be involved in relocation costs also, but the intent
of explaining some of the details of these purchases is that we will not have
to write large checks on the Roadway account, at least for these four homes.
Council might be interested in why staff started looking at the right-of-way
on Lone Tree Way rather than Fairview Avenue or Heidorn Ranch Road. Council
will remember some of the complaints we received from Canyonwood residents
for traffic volumes of 1,500 to 1,600 vehicles per day. Canyonwood is a two-lane
road with homes fronting on it. Lone Tree Way is currently a two-lane road
with homes fronting on it. The current traffic on Lone Tree Way is in excess
of 22,000 vehicles per day. That is the best example of why we need to widen
Lone Tree Way, prior to any major new projects moving forward in the northwest
As you can see from the accompanying engineering proposals, the engineering
cost is over $1 million. Staff has met with the development community to discuss
this issue and has suggested that the developers sign an agreement with the
City. The City will prepare a cost distribution analysis based on traffic projections.
The developers will then pay their fair share of the engineering costs prior
to their projects being approved, and in some cases, prior to them even submitting
to the City. The City will then give them 100% Roadway Facility Fee Credits
for the amount of the checks submitted. That is about as good a deal for everyone
involved that we could come up with. The developers gave us their verbal approval
at the meeting and staff is currently evaluating the costs distribution. Staff
will probably suggest that the City shoulder some of the design costs, at least
on paper, so that as new developers sign up they can pay the City’s portion
which will be reserved to pay the last payments of the consulting engineers’ fees
for these designs.
The construction of public infrastructure in the City is becoming more and
more difficult because of environmental issues. The City has many opportunities
for environmental projects that would be amenities for the community, but our
project managers are too busy with our public infrastructure projects to invest
the time necessary to accomplish the environmental mitigation. Staff is therefore
recommending that the Council direct the City Engineer to hire a consultant
to assist him in identifying and accomplishing the environmental mitigation
projects and, if possible, to develop a mitigation bank to help keep environmental
projects, monies and development either within Brentwood or immediately adjacent
to our City Limits.
This will be a very complicated and involved CIFP; more difficult to put together
than any of the previous programs. Council approval of the attached Resolution
does not approve the CIFP, or authorize the purchase of right-of-way. Those
specific items will come back to the Council for separate approvals. What this
Resolution does do, is begin the process, allow staff to hire consultants to
start design, allow staff to improve environmental mitigation processing, and
begin right-of-way acquisition which will be brought back to Council for approval.
Financial Impact: 100% of the costs will be funded through the Development
ENGINEER’S PRELIMINARY COST ESTIMATE
CITY OF BRENTWOOD STREETS & UTILITIES COST SUMMARY
HEIDORN RANCH ROAD
Lone Tree Way to EBMUD $ 1,258,958.42
EBMUD to Wagner 673,325.73
Wagner to Old Sand Creek Road 1,725,001.52
Old Sand Creek Road to New Sand Creek Road 1,891,993.79
NEW SAND CREEK ROAD
Heidorn Ranch Road to State Route 4 Bypass 1,078,753.89
LONE TREE WAY
Heidorn Ranch Road to State Route 4 Bypass By CC Co.
State Route 4 Bypass to Empire Road 2,216,226.10
Empire Road to Fairview Avenue 4,870,865.00
Lone Tree Way to EBMUD 1,865,165.00
ZONE II WATER
Zone II Water 326,782.50
TOTAL COST ESTIMATE $ 15,907,071.95
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ADDING
THE NORTHWEST QUADRANT INFRASTRUCTURE PROJECT TO THE CITY’S 2000/05
CAPITAL IMPROVEMENT PROGRAM, DIRECTING THE CITY ENGINEER TO INITIATE
DISCUSSIONS WITH THE DEVELOPMENT COMMUNITY TO DEVELOP A CAPITAL IMPROVEMENT
FINANCING PROGRAM (CIFP 2001-1) TO ASSIST IN FINANCING THE REQUIRED
ENGINEERING AND INFRASTRUCTURE TO SUPPORT THE ANTICIPATED COMMERCIAL
DEVELOPMENT IN THIS QUADRANT OF THE CITY, DIRECTING THE CITY ENGINEER
TO HIRE A CONSULTANT TO ASSIST IN ENVIRONMENTAL MITIGATION PROJECTS
INCLUDING ESTABLISHING A BRENTWOOD MITIGATION BANK, AND DIRECTING
THE CITY ENGINEER TO INITIATE RIGHT OF WAY ACQUISITIONS TO FACILITATE
THE ULTIMATE WIDENING OF LONE TREE WAY AND THE REALIGNMENT OF FAIRVIEW
WHEREAS, on November 10, 1998 the City Council approved the
annexation of the northwest area into the City of Brentwood; and
WHEREAS, on May 23, 2000 the City Council adopted the 2000/05
Capital Improvement Program; and
WHEREAS, the Council CIP Sub-Committee has requested that
City staff begin planning for the Northwest Quadrant Infrastructure
development in order to facilitate commercial development; and
WHEREAS, residents have repeatedly requested improvements
to Lone Tree Way to relieve traffic congestion; and
WHEREAS, the latest traffic models being prepared for the
General Plan Update call for the widening of Lone Tree Way to 6 lanes,
and that will necessitate the taking of several existing houses on
Lone Tree Way; and
WHEREAS, City staff have discussed this condition with several
of the property owners on Lone Tree Way and they are interested in
moving from Lone Tree Way to a new location in Brentwood; and
WHEREAS, several commercial developments are in various stages
of land acquisition, preliminary planning, site design and/or entitlement
and this commercial development will be impossible without the public
infrastructure recommended in the CIP and CIFP; and
WHEREAS, the City needs to intensify its efforts in environmental
mitigation and development of a local mitigation bank to reap the
benefits of the monies we are expending in environmental mitigation
for the public infrastructure being developed; and
WHEREAS, the funding of these projects will come from the
Development Fee Program.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City
of Brentwood that the Northwest Quadrant Infrastructure Project is
added to the City’s 2000/05 Capital Improvement Program.
BE IT FURTHER RESOLVED that the City Engineer is directed
to initiate discussions with the development community to develop
a Capital Improvement Financing Program (CIFP 2001-1) to assist in
financing the required engineering and infrastructure to support
the anticipated commercial development in this quadrant of the City.
BE IT FURTHER RESOLVED that the City Engineer is directed
to hire a consultant to assist him in environmental mitigation projects
including establishing a Brentwood Mitigation Bank.
BE IT FURTHER RESOLVED that the City Engineer is directed
to initiate right of way acquisitions to facilitate the ultimate
widening of Lone Tree Way and the realignment of Fairview Avenue
PASSED, APPROVED AND ADOPTED by the City Council of the City
of Brentwood at a regular meeting held on the 28th day of November
2000 by the following vote: