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Current Council Agenda and Past Meeting Information

CITY COUNCIL AGENDA ITEM NO. 8

Meeting Date: May 24, 2005

Subject/Title: Adopt a Resolution to Increase the Amount Approved for Park Facilities in the Reimbursement Agreement with California Sun Brentwood, L.L.C., A Delaware Limited Liability Company, for all maps under Tentative Subdivision Map No. 7690.

Prepared by: Engineering: L. Vargas

Submitted by: Engineering: B. Grewal

RECOMMENDATION
Adopt a Resolution approving Amendment No. 1 to the Reimbursement Agreement with California Sun – Brentwood, L.L.C., A Delaware Limited Liability Company, for all maps under Tentative Subdivision Map No. 7690, located south of Balfour Road and west of Concord Avenue, for costs associated with Master Plan Facility Improvements.

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

On January 19, 1993, the Planning Commission adopted Planning Commission Resolution No. 93-2, which approved Tentative Subdivision Map No. 7690 with certain conditions.

On February 27, 2001, City Council adopted Resolution No. 2236, which approved a reimbursement agreement with California Sun Brentwood, L.L.C. for costs associated construction of Master Plan Facility Improvements. Construction of a 9.68 acre active park was one of the Master Plan Facility Improvements approved for reimbursement.

On November 26, 2001, after many delays, staff became concerned that California Sun Brentwood, L.L.C. was not going to be able to begin park construction due to financial difficulties. To protect the city from reimbursing for construction of a park that may not be built, the City Attorney wrote a letter to all of the developers that had purchased “villages” included under Tentative Subdivision Map No. 7690, advising them that the fee credits for the construction portion of the park were not going to be awarded.

BACKGROUND
This Deer Ridge Subdivision, original Map No. 7690, is located south of Balfour Road and West of Concord Avenue. The Conditions of Approval for Tentative Subdivision Map No. 7690 required the developer to construct an active park adjacent to Krey Elementary at the time the school was constructed, this did not happen. After the City was notified that the developer was experiencing financial difficulties, the City did not want to be in the position of issuing fee credits for park construction when there was a possibility that the park would not be built. To protect the City from reimbursing for park construction that was not taking place, the City Attorney notified the developers who had purchased ‘villages’ in this subdivision that the portion of the park fee credits for construction would not be issued. Park construction finally began on September 11, 2003 when KB Homes, who purchased a large number of the ‘villages’ stepped in to be the project manager for the park construction. On November 1, 2004, the City began issuing the original park construction fee credits on the Phase II units.

This increase in the reimbursement amount was requested because of the cost differential between active park components and the few components of a community park that were actually constructed due to the needs of the southwest area of the City. The Developer originally requested an additional amount of $833,854 based on the 2004 Development Fee Program. Staff met with the City Attorney and concluded that the increase should be based on the 2001 Development Fee Program since the Reimbursement Agreement was approved in 2001 and the park was to be constructed in 2001. The increase of $305,483.34 that staff is recommending is 31% higher than the original amount approved for the park. For that reason staff is requesting that the City Council approve this increase due to the additional components constructed. The City Engineer, Director of Finance and Information Services and the Director of Parks and Recreation have reviewed this request.

FISCAL IMPACT
Park facility fee credits will be given at building permit, reducing the amount to be collected. Depending on the number of permits remaining to be issued after approval, a cash payment for any remaining balance may be made.

Attachments:
Resolution
Reimbursement Agreement Amendment No. 1
Site Map

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AMENDMENT NO. 1 TO THE REIMBURSEMENT AGREEMENT WITH CALIFORNIA SUN BRENTWOOD, L.L.C., A DELAWARE LIMITED LIABILITY COMPANY, FOR ALL MAPS UNDER TENTATIVE SUBDIVISION MAP NO. 7690, FOR COSTS ASSOCIATED WITH MASTER PLAN FACILITY IMPROVEMENTS.

WHEREAS, on January 19, 1993, Planning Commission adopted Planning Commission Resolution No. 93-2, which approved Tentative Subdivision Map No. 7690 subject to certain conditions; and

WHEREAS, on February 27, 2001, City Council adopted Resolution No. 2236, which approved a reimbursement agreement with California Sun Brentwood, LLC for costs associated with Master Plan Facility Improvements; and

WHEREAS, the Developer has constructed the additional public improvements eligible for reimbursement; and

WHEREAS, the City agrees to pay Developer for additional public improvements eligible for reimbursement in the amount of $305,483.34.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve Amendment No. 1 to the Reimbursement Agreement with California Sun Brentwood, L.L.C., A Delaware Limited Liability Company, for all maps under Tentative Subdivision Map No. 7690 for additional Master Plan Improvements constructed.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 24th day of May 2005 by the following vote:

AMENDMENT NO. 1 REIMBURSEMENT AGREEMENT
BRENTWOOD MASTER PLANNED FACILITIES
CALIFORNIA SUN – BRENTWOOD, L.L.C., A DELAWARE
LIMITED LIABILITY COMPANY
TENTATIVE SUBDIVISION MAP NO. 7690

THIS AMENDMENT NO. 1 is entered into on the 24th day of May, 2005 by and between CITY OF BRENTWOOD (“City”) and CALIFORNIA SUN – BRENTWOOD, L.L.C. (“Developer”).

WHEREAS, in 1993, the City Planning Commission adopted Planning Commission Resolution No. 93-2, approving Tentative Subdivision Map No. 7690, subject to certain conditions; and

WHEREAS, on February 27, 2001, the City Council adopted Resolution No. 2236, which approved a Reimbursement Agreement with California Sun – Brentwood, L.L.C., for all maps under Tentative Subdivision Map No. 7690 for costs associated with Master Plan Facility Improvements (“Reimbursement Agreement”) which included the construction of a 9.68 acre park; and

WHEREAS, the City agrees to pay Developer for additional public park improvements related to its Tentative Subdivision Map No. 7690 in the amount of $305,483.34.

NOW, THEREFORE, IT IS AGREED as follows:
1. Paragraph 3.4 of the original Reimbursement Agreement entitled Maximum Reimbursement shall be amended as follows:

“3.4. Maximum Reimbursement. The total amount of the reimbursement obligation over the life of this Agreement for the type of facilities described in Exhibit “B” shall be as determined by the CITY OF BRENTWOOD 2001 DEVELOPMENT FEE PROGRAM. The parties acknowledge and agree that the reimbursement/pre-paid fees under this Agreement is to be SEVEN MILLION NINE HUNDRED ONE THOUSAND NINE HUNDRED THIRTEEN DOLLARS AND 04 CENTS. ($7,901,913.04)
.
2. All other terms of the original agreement shall remain unchanged.

CITY OF BRENTWOOD DEVELOPER: CALIFORNIA SUN-
BRENTWOOD, L.L.C.

By:____________________ By:_____________________ __
Mayor Name Title
ATTEST:

______________________
Cynthia Garcia, Interim City Clerk

Approved as to form:

______________________
Thomas R. Curry, Interim City Attorney
 

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