Agenda Item Wording:
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Approve Developer Reimbursement Agreement and appropriate of funds - Authorize the City Manager to execute the reimbursement agreement associated with Sycamore Heights Subdivision located at the northeast corner of Akers Street and Ferguson Avenue; and further authorize the additional appropriation of $297,931.92 from the Transportation Impact Fee Fund.
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Agenda Date: 03/16/2026
Prepared by:
Sarah MacLennan, Assistant Engineer-(559)713-4271, sarah.maclennan@visalia.gov
Jason Huckleberry, Director of Eng & Building-(559)713-4495, jason.huckleberry@visalia.gov
Department Recommendation:
Staff recommends that City Council:
1. Authorize the City Manager to execute the reimbursement agreement in the amount of $310,870.16 for street improvements constructed along Akers Street and Ferguson Avenue, and for sewer facilities provided for a westerly extension, associated with the Sycamore Heights subdivision; and
2. Authorize an additional appropriation of $297,931.92 from the Transportation Impact Fee Fund (241).
Summary:
All the required improvements for Sycamore Heights subdivision have been completed and accepted by the City. The subdivision was developed by San Joaquin Valley Homes and contains 91 single-family residential lots and four lettered lots for parkway landscaping, block walls, and landscaping along with public streets.
As per the Subdivision Improvement Agreement, arterial and collector roadway improvements were required along the project street frontages. Akers Street is identified as a funded arterial and Ferguson as a collector in the City’s Circulation Element and Transportation Impact Fee program. Consequently, portions of the required public improvements along Akers Street and Ferguson Avenue are eligible for reimbursement under the City’s impact fee programs. The sanitary sewer improvements required as part of the subdivision included the addition of reimbursable sewer mains being extended to accommodate areas east of the Sycamore Heights development.
The total amount to be reimbursed to the developer is $310,870.16 for the excess in pavement and sewer facilities beyond the developer’s responsibilities. Impact fees were paid by the developer for each residential building permit issued within the development. Credits were not applied at the time of building permit issuance, the reimbursement would be due in the form of a cash payment to the developer for the improvements.
Background Discussion:
Under Resolution No. 2008-58, adopted by City Council on December 1, 2008, the City will reimburse the developer for a portion of improvements made to streets designated in the City of Visalia Circulation Element as arterial and collector streets. Under Ordinance 2013-01, approved by Council on April 15, 2013, amendments were made to the timing of reimbursement paid by the City for private construction of planned transportation facilities. Per the TIF program stipulations, the developer will be fully reimbursed through credit of the Transportation Impact Fee (TIF) due at the time of building permit issuance and any balance remaining to be paid in cash within specific time periods following the issuance of a Notice of Completion.
On December 10, 2025, the reimbursement agreement for the Sycamore Heights Subdivision was reviewed and recommended for approval by the Development Reimbursement Review Committee (DRRC). The DRRC is comprised of staff from the Engineering & Building, Planning & Community Preservation and Finance Departments. The DRRC reviewed the reimbursement to ensure that the costs are reasonable compared to the City’s costs for comparable capital projects
Fiscal Impact including annual maintenance and operating costs: The reimbursement will be made from the Transportation Impact Fee Fund (CP9130) in the amount of $297,931.92 and the Sewer Fund (CP9228) in the amount of $12,938.24.
Prior Council Action: Final map for Sycamore Heights Subdivision approved by Council for recordation on October 7, 2024.
Alternatives: None recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize:
1. The City Manager to execute the reimbursement agreement for improvements completed by the Sycamore Heights subdivision; and
2. An additional appropriation of funds of $297,931.92 from the Transportation Impact Fee Fund (241).
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 03/16/2026
Attachments:
1. Aerial
2. Reimbursement Agreement - DRAFT
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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