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CITY COUNCIL AGENDA ITEM NO. 14

Meeting Date: March 23, 2004

Subject/Title: Reimbursement Agreement with John Muir/Mt. Diablo Health System, a California not-for-profit corporation, Subdivision No. 8517, for costs associated with excess right-of-way dedication for Master Plan Facility Improvements.

Prepared by: Engineering: L. Vargas

Submitted by: Engineering: B. Grewal

RECOMMENDATION
Approve a Resolution approving a Reimbursement Agreement with John Muir/Mt. Diablo Health System, a California not-for-profit corporation, Subdivision No. 8517, located south of Balfour Road, west of Concord Avenue, for costs associated with excess right-of-way dedication for Master Plan Facility Improvements.

PREVIOUS ACTION
On April 12, 1994, City Council approved Resolution No. 94-63, which established a standard Reimbursement Agreement for Master Plan Facility Improvements.

On May 1, 2001, Planning Commission adopted Planning Commission Resolution No. 01-24, which approved Tentative Subdivision Map No. 8517, subject to conditions effective upon City Council approval of a Mitigated Negative Declaration, amendment of the General Plan Land Use Element, Zoning text amendment and Tentative Subdivision Map No. 8517.

On July 6, 2001, City Council adopted Ordinance No. 676 approving a Mitigated Negative Declaration, General Plan amendment and Zoning text amendment for the property located on the south side of Balfour Road, west of the existing Concord Avenue-future Highway 4 Bypass.

On October 28, 2003, City Council adopted Ordinance No. 764, which amended the Development Agreement previously entered into with the Developer for the development of its medical campus project and Ordinance No. 763 which rezoned seven (7) acres from PD-20 to PD-49 and added development standards.

BACKGROUND
The Conditions of Approval for Tentative Subdivision Map No. 8517 required the Developer to make dedication of excess right-of-way for Master Plan Facility Improvements. Master Plan Facility Improvements are those improvements that have been identified in the Master Infrastructure element of the General Plan. The Subdivision Map Act requires that the City enter into a reimbursement agreement when requiring the developer to construct excess capacity improvements or makes a dedication of excess right-of-way.

The excess right-of-way that qualifies for reimbursement in this agreement is the dedication along John Muir Parkway south of Eagle Rock Avenue. Credit will also be given for the roadway facility fee credits assigned to the Developer by Gloria Sciabica for Balfour Road right-of-way acquired by the City. This reimbursement is being reduced by the cost of mitigation for burrowing owls as required by the Department of Fish and Game. A careful review by staff of the right-of-way exhibit and previous dedications/purchases of right-of-way resulted in a savings to the City of approximately $220,000. The City Engineer has reviewed this agreement.

FISCAL IMPACT
The Developer paid full roadway fees at building permit while waiting for this agreement to be finalized and will be given a cash reimbursement if approved.

Attachments:
Resolution
Reimbursement Agreement with Site Map

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING A REIMBURSEMENT AGREEMENT WITH JOHN MUIR/MT. DIABLO HEALTH SYSTEM, A CALIFORNIA NOT-FOR-PROFIT CORPORATION, SUBDIVISION NO. 8517, FOR COSTS ASSOCIATED WITH EXCESS RIGHT-OF-WAY DEDICATION FOR OFF-SITE MASTER PLAN FACILITY IMPROVEMENTS.

WHEREAS, on April 12, 1994, City Council adopted Resolution No. 94-63, which established a standard Reimbursement Agreement for Master Plan Facility Improvements; and

WHEREAS, on May 1, 2001, Planning Commission adopted Planning Commission Resolution No. 01-24, which approved Tentative Subdivision Map No. 8517, subject to conditions effective upon the City Council approval of a Mitigated Negative Declaration, amendment of the General Plan Land Use Element, Zoning text amendment and Tentative Subdivision Map No. 8517; and

WHEREAS, on July 6, 2001, City Council adopted Ordinance No. 676 approving a Mitigated Negative Declaration, General Plan amendment and Zoning text amendment for the property located on the south side of Balfour Road, west of existing Concord Avenue/future Highway 4 Bypass; and

WHEREAS, on October 28, 2003, City Council adopted Ordinance No. 764, which amended the Development Agreement previously entered into with Developer for the development of its medical campus project and Ordinance No. 763 which rezoned seven (7) acres from PD-20 to PD-49 and added development standards; and

WHEREAS, certain Master Plan Facility Improvements and excess right-of-way are reimbursable under the City of Brentwood Master Plan Facility Fee Program; and

WHEREAS, the Developer has dedicated the excess right-of-way eligible for reimbursement.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve a Reimbursement Agreement with John Muir/Mt. Diablo Health System, a California not-for-profit corporation for excess right-of-way dedicated in conjunction with Subdivision No. 8517, as shown on the Reimbursement Agreement Site Map.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting on the 23rd day of March, 2004 by the following vote:

REIMBURSEMENT AGREEMENT
BRENTWOOD MASTER PLANNED FACILITIES
JOHN MUIR/MT. DIABLO HEALTH SYSTEMS,
A CALIFORNIA NOT-FOR-PROFIT CORPORATION
SUBDIVISION NO. 8517

1. PARTIES AND DATE

This Agreement is made this 23rd day of March, 2004 by and between the City of Brentwood, California, a Municipal Corporation (“City") and John Muir/Mt. Diablo Health Systems, a California not-for-profit corporation ("Developer").

2. RECITALS

2.1 The Developer owns or has legal interest in certain real property, Subdivision No. 8517, consisting of approximately 64 acres, located south of Balfour Road, west of existing Concord Avenue in the City ("Developer's Property") included within the original Tentative Subdivision Map No. 8517 described in Exhibit "A" attached hereto containing

2.2 As a condition to the development of Developer's Property, City required Developer to dedicate excess capacity right-of-way for the purpose of construction of Master Plan Roadway Improvements (“Improvements”). The Master Plan Improvements are identified in the CITY OF BRENTWOOD 2002/03 DEVELOPMENT FEE PROGRAM dated July 23, 2002. Developer has dedicated the excess capacity right-of-way and will design, construct and install the Master Plan Roadway Improvements at no cost to the City. This reimbursement agreement is for the excess right-of-way dedicated only.

2.3 Developer is willing to advance the costs of dedicating such right-of-way subject to facility fee credits and/or cash payment.

2.4 City has found that this Agreement is in accordance with the requirements of Sections 16.130.030 and 16.130.040 of the Code and California Government Code Sections 66485 through 66489.

3. TERMS

3.1 Dedication of right–of-way. Developer has dedicated the excess right-of-way for acceptance within the time period set forth in the Conditions of Approval for Subdivision Map No. 8517. City has accepted the dedication of excess right –of-way.

3.2 Source and Method of Reimbursement. City shall reduce facility fees collected from Developer for Developer’s property by the amount of Roadway Fee Credits granted to Gloria J. Sciabica, surviving trustee of the Samuel and Gloria Sciabica Family Trust, for Balfour Road right-of-way purchased on the 12th day of September 2000 and assigned to John Muir/Mt. Diablo Health System by Gloria Sciabica on August 21, 2001. City shall reimburse Developer in the form of facility fee credits and/or cash payment for the costs associated with the dedication of excess right-of-way for John Muir Parkway indicated in Exhibit “B” “Reimbursable Improvements”. The reimbursement shall be reduced by the cost of burrowing owl mitigation as required by the California Department of Fish and Game. The amount of the reimbursement credit shall be distributed on a pro-rata share over the developer's first phase square footage. In no event shall the fee credit exceed the fee for a given fee category. The total reimbursable amount is indicated in Exhibit “C” "Reimbursement Calculation" attached hereto

3.3 Maximum Reimbursement. The total amount of the reimbursement obligation over the life of this Agreement for the facilities described in Exhibit "B" shall be as determined by the CITY OF BRENTWOOD 2002/03 DEVELOPMENT FEE PROGRAM. The parties acknowledge and agree that the total reimbursement and assigned fee credits under this Agreement are THREE HUNDRED TWENTY THOUSAND THREE HUNDRED FORTY THREE DOLLARS AND 65 CENTS.

3.4 Areas and Quantities. The areas and quantities used to develop this reimbursement agreement for right-of-way costs are the actual areas dedicated.

3.5 Notice. Any notices required or desired to be sent pursuant to this agreement shall be addressed as follows:

CITY: DEVELOPER:
City Manager John Muir/Mt. Diablo Health System
City of Brentwood Attn: President
150 City Park Way 1800 Treat Boulevard
Brentwood, CA 94513 Walnut Creek, CA 94596

3.6 Attorney's Fees. In the event, any action is commenced to enforce or interpret any term or condition of this agreement, in addition to costs and any other relief, the prevailing party shall be entitled to reasonable attorney's fees. Jurisdiction over the authority in any dispute shall be maintained in Contra Costa County.

3.7 Entire Agreement. This agreement contains the entire agreement of the parties hereto with respect to the matters contained herein.

3.8 Assignment. This agreement shall not be assigned without the written consent of
the parties hereto, and any assignment without such written consent shall be void and ineffective. The written notice shall become effective within thirty days upon delivery to the City, provided that the City shall not be responsible for any misdirected written notices under this section.


CITY OF BRENTWOOD DEVELOPER: JOHN MUIR/MT. DIABLO HEALTH
SYSTEM

BY: BY: _______________________________ Brian Swisher, Mayor Name Title

ATTEST:

BY: ___________________________
Karen Diaz, CMC, City Clerk

EXHIBIT "A"
"DEVELOPER'S PROPERTY"
JOHN MUIR/MT. DIABLO HEALTH SYSTEMS,
A CALIFORNIA NOT-FOR-PROFIT CORPORATION
SUBDIVISION NO. 8517

INSERT MAP

EXHIBIT “B”
REIMBURSABLE IMPROVEMENTS
JOHN MUIR/MT. DIABLO HEALTH SYSTEMS,
A CALIFORNIA NOT-FOR-PROFIT CORPORATION
SUBDIVISION NO. 8517

Roadway Facilities

Roadway fee credits for Balfour Road right-of-way previously assigned to John Muir/Mt. Diablo by Gloria Sciabica

Excess right-of-way dedicated for John Muir Parkway

EXHIBIT “C”
REIMBURSABLE IMPROVEMENTS CALCULATIONS
JOHN MUIR/MT. DIABLO HEALTH SYSTEMS,
A CALIFORNIA NOT-FOR-PROFIT CORPORATION
SUBDIVISION NO. 8517

Roadway Facilities

Sciabica previous assignment of fee credits for Balfour Road
right-of-way $124,599.00

Excess right-of-way along John Muir Parkway south of
Eagle Rock Drive price based on purchase documents
57,467 SF @ $3.95/SF $226,994.65

Subtotal for Roadway fee credits/reimbursements $351,593.65

Deduct for burrowing owl mitigation ($ 31,250.00)

TOTAL ROADWAY FEE CREDITS/REIMBURSEMENTS $320,343.65

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