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Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 7

Meeting Date: December 14, 2004

Subject/Title: Approve Resolution authorizing City Manager to execute a contract with Pacific Gas & Electric for installation of expanded gas and electric service at Sunset Industrial Complex in an amount not to exceed $172,000 for CIP Project No. 336-3128, and amend the budget for CIP Project No. 336-3128

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Director of Economic Development

RECOMMENDATION
Approve Resolution authorizing City Manager to execute a contract with Pacific Gas & Electric for installation of expanded gas and electric service at Sunset Industrial Complex in an amount not to exceed $172,000 for CIP Project No. 336-3128, and amend the budget for CIP Project No. 336-3128

PREVIOUS ACTION
 City Council authorized the purchase of approximately 40 acres of property located at the northeast corner the Tresch and Sunset Roads.

 City Council authorized various consultant contracts to master-plan and prepare environmental documents for approximately 132 acres of city owned land northeast of Tresch and Sunset Roads to include a 49.2 acre Wastewater Treatment Plant, 2.7 acre Solid Waste Plant, 37.7 Sports Park, 13.3 acre Corporation Yard and a 28.4 acre Industrial Complex.

 On November 26, 2002 the City Council approved a sales strategy for property located at the Sunset Industrial Complex and adopt criteria for the selection of successful candidates to purchase the subject property.

 On October 28, 2003, the City Council approved the Sunset Industrial Complex sales strategy criteria ranking and preliminary lot layout which included the cul-de-sac site plan.

 On April 2, 2004, the first Final Map for Subdivision 8588 was recorded.

 On April 13, 2004, the City Council approved the Purchase Agreements for the first phase of sales.

 On June 7, 2004, the second Final Map for Subdivision 8842 was recorded.

 From April 2004 to September 2004, twelve escrows closed.

 On September 14, 2004, the City Council approved the configuration for subdividing the northerly portion of Sunset Industrial Complex.

BACKGROUND
The City purchased a 40-acre parcel off Sunset Road in 1999 for the expansion of the adjacent sports complex by 16± acres, and to implement an economic development strategy by zoning the remaining acres for industrial land use in the 2001 General Plan update. The City’s intention was to execute an economic strategy by selling parcels within the Sunset Industrial Complex to end-users. The sale revenues to the City will be then used to reimburse the City for its cost of the land, planning, engineering and a portion of the infrastructure improvements. The sales revenues will also reimburse the Redevelopment Agency for paying a portion of the cost of improvements. Therefore, both the City and the Agency expect to receive full reimbursement for their out-of-pocket costs associated with developing the Sunset Industrial Complex as parcels are sold. Any excess receipts from the proceeds of the sales beyond the actual costs shall be shared between the City and Agency in amounts equitable to their contributions.

The original conceptual plan for Sunset Industrial Complex included nine large parcels for industrial end-users. Responses to our Summer 2003 sales offering indicated a need for more industrial-zoned property than what is available at Sunset Industrial Complex. To accommodate the majority of the requests, the original site plan was revised to include cul-de-sac configurations. This provided the City an opportunity to accommodate as many buyers as possible within the Sunset Industrial Complex, while also configuring the industrial complex in a suitable geometry for truck traffic patterns and efficient site development. It is anticipated that over 500 jobs will be created at Sunset Industrial Complex.

The PG&E service improvements were installed for the original concept of nine users, prior to the City’s reconfiguration to accommodate more employers. Ultimately, the Sunset Industrial Complex will house 17 light and medium industrial employers. PG&E has submitted a contract for additional gas and electric improvements to adequately serve the Sunset Industrial Complex, in an amount of $172,000 ($156,328.28 + 10% contingency).

Upon approval of this agreement by the City council, PG&E will then commence with all necessary work and inspections for installing the necessary modifications in order to serve all the new users of the Sunset Industrial Complex. Some of the users have already begun their site improvements, therefore this agreement is critical to finalize so the necessary expanded electric and gas service will be available.

FISCAL IMPACT
The Sunset Industrial Complex, CIP Project No. 336-3128, has served as an umbrella project that is providing infrastructure benefits to the Wastewater Treatment, Solid Waste and Water enterprises, as well as the Corporation Yard, Sports Park and Road Fee Account. Funding for the project has been provided by internal distributions from these accounts as well as a loan from the Redevelopment Agency.

The accounting for the project has been intricate due to the number of funding entities. It has always been the bookkeeping intention to keep the entire project costs in one CIP project. Permanent funding for the project will be from a final internal distribution from these accounts, as determined by the Finance Director and the City Engineer, as well as the proceeds from the sale of the real property in Sunset Industrial Complex.

The proposed contract with PG&E for $172,000 will be funded from the sales receipts already received for sale of the property in Sunset Industrial Complex. The following amended CIP worksheet and budget reflects all the land and construction costs, as well as the $172,000 additional PG&E enhancements referenced in this staff report.

June 2004 Proposed 11/09/04
CIP Budget Amendment CIP Budget

Legal 50,000 50,000
Design/Eng 1,750,460 1,750,460
Construction 4,115,716 172,000 4,287,716
Project Management 137,925 137,925
Land/ROW 1,656,623 1,656,623
Total 7,710,724 172,000 7,882,724

The proportionate share of this $7.9 project attributable to the Sunset Industrial Complex is $4.6M, inclusive of the PG&E contract. The first and second phases of property sales at Sunset Industrial Complex will generate approximately $5.8M in sales. The City and Agency shall be fully reimbursed for their respective financial contributions to this project, and excess receipts shall be shared between the City and Agency in accordance with the Reimbursement Agreement.

Attachments: 1. Resolution
2. Capital Improvement Project budget sheet
3. Agreement with PG&E

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH PACIFIC GAS & ELECTRIC FOR INSTALLATION OF EXPANDED GAS AND ELECTRIC SERVICES FOR THE SUNSET INDUSTRIAL COMPLEX, CIP PROJECT 336-3128, IN AN AMOUNT NOT TO EXCEED $172,000, AND AMEND THE BUDGET FOR CIP PROJECT NO. 336-3128

WHEREAS, on January 12, 1999, City Council authorized the purchase of approximately 40 acres of property located at the northeast corner of Tresch and Sunset Roads; and

WHEREAS, on February 8, 2000, City Council authorized various consultant contracts to master-plan and prepare environmental documents for approximately 132 acres of city-owned land northeast of Tresch and Sunset Roads to include a Wastewater Treatment Plan, Solid Waste Plan, Sports Park, Corporation yard and Industrial Complex; and

WHEREAS, on November 28, 2000, City Council authorized a consultant contract with McGill Martin Self to design and prepare infrastructure improvement plans for the Sunset Industrial Complex; and

WHEREAS, in September 2001, the Brentwood Redevelopment Agency issued Tax Allocation Bonds (TAB) to refinance existing bonds and to pay for certain redevelopment and public improvement projects. One of the top three projects identified by the Agency included funding the infrastructure improvements at the Sunset Industrial Complex with TAB proceeds; and

WHEREAS, on June 4, 2002, the Planning Commission certified the Environmental Impact Report for the Sunset Industrial Complex, and on June 6, 2002, the Notice of Determination was filed with the County; and

WHEREAS, on July 23, 2002, the City Council adopted Ordinance No. 710 approving the PD Zoning for Sunset Industrial Complex, and also awarded the construction contract for the Sunset Industrial Complex Improvements Project, CIP Project No. 336-3128, to Tiechert Construction; and

WHEREAS, on August 13, 2002, the City Council and Redevelopment Agency approved a Reimbursement Agreement wherein the Agency would loan $3,000,000 to the City for infrastructure improvements at Sunset Industrial Complex, CIP Project No. 336-3128; and

WHEREAS, on November 26, 2002, the City Council approved a sales strategy for properly located at the Sunset Industrial Complex and adopted criteria for the selection of successful candidates to purchase the subject property; and

WHEREAS, on September 23, 2003, the City Council authorized the City Manager to execute a professional services agreement with Carlson Barbee & Gibson, Inc., to prepare a Survey, Tentative Map, Final Map and related work for the Sunset Industrial Complex, CIP Project No. 336-3128 and amend the CIP Budget Sheet; and

WHEREAS, sales offerings, following Council-approved guidelines, to purchase property in the Complex were distributed to interested buyers in late spring 2003. Responses to our sales offerings indicated a need for more industrial-zoned property than what is available at Sunset Industrial Complex. Over 27 acres were requested, while Sunset Industrial had only 21.7 acres to sell; and

WHEREAS, on October 28, 2003, the City Council approved the Sunset Industrial Complex sales strategy criteria ranking and approved the preliminary lot layout which included the cul-de-sac site plan to accommodate more buyers; and

WHEREAS, on November 25, 2003, the City Council approved the contract to install the cul-de-sacs and traffic signal, amended the CIP Budget Sheet, and approved a revision to the Reimbursement Agreement between the City and Agency for an additional $728,000; and

WHEREAS, on January 27, 2004, the City Council amended Planned Development Zone 56 to allow for an increase in the square footage designated for retail uses with Subareas A and B, and to allow smaller lot sizes in Subarea C, in the Sunset Industrial Complex; and

WHEREAS, on April 2, 2004, the first Final Map for Subdivision 8588 was recorded; and

WHEREAS, on April 13, 2004, the City Council approved the Purchase Agreements for the first phase of sales, and authorized the City Manager to execute Grant Deeds; and.

WHEREAS, on June 7, 2004, the second Final Map for Subdivision 8842 was recorded; and

WHEREAS, on September 14, 2004, the City Council approved the configuration for subdividing the northerly portion of Sunset Industrial Complex, and directed staff to commence subdivision activities to create two additional parcels of approximately five acres; and

WHEREAS, on October 12, 2004, the City Council approved the Purchase Agreements for the second phase of sales, and authorized the City Manager to execute Grant Deeds.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood that the City Manager is authorized to execute a contract with Pacific Gas & Electric for installation of expanded gas and electric services for Sunset Industrial Complex, CIP Project No. 336-3128, in an amount not to exceed $172,000, and amend the budget for CIP Project No. 336-3128 to reflect these changes.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 14th day of December 2004 by the following vote:

AYES:
NOES:
ABSENT:
_____________________________
Brian Swisher
Mayor
ATTEST:

__________________________________
Karen Diaz, CMC, City Clerk
 

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