Agenda Item Wording:
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Developer Reimbursement Agreement - Authorize the City Manager to execute the reimbursement agreement associated with Pearl Woods - Phase 1 Subdivision located at southwest corner of Cherry Avenue and McAuliff Street.
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Agenda Date: 04/06/2026
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 authorizing the City Manager to execute the reimbursement agreement in the amount of $1,665,681.12 for improvements constructed along McAuliff Street, associated with the Pearl Woods - Phase 1 subdivision and the construction of a city regional storm basin along Cameron Creek.
Summary:
Improvements for Pearl Woods - Phase 1 subdivision are under construction. The subdivision is being developed by PWV Capital LLC and contains 105 single-family residential lots and three lettered lots for parkway landscaping, block walls, and landscaping along with public streets.
As per the subdivision improvement agreement, collector roadway improvements were required along the project street frontages. McAuliff Street is identified as a funded collector in the City’s Circulation Element and Transportation Impact Fee program. Consequently, portions of the required public improvements along McAuliff Street are eligible for reimbursement under the City’s impact fee programs. The storm drainage improvements required as part of the subdivision included oversizing of the storm mains to accommodate additional capacity beyond the immediate needs of the subdivision, as well as the dedication and construction of a 3.61 acre permanent regional storm drain basin.
The total amount to be reimbursed to the developer is $1,665,681.12 for the excess in pavement and storm drainage facilities beyond the developer’s responsibilities. Transportation and storm drainage impact fees are to be credited to the developer for each residential building permit issued within the development until the available credit balance has been fully exhausted. Remaining reimbursement would be due in the form of a cash payment to the developer for the improvements. Cash payments are to be paid as fund balances allow and may be paid over a period of time as designated within existing City municipal code.
Background Discussion:
On December 10, 2025, the reimbursement agreement for the Pearl Woods - Phase 1 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 241 (CP9130) in the amount of $168,684.16, the Storm Sewer Fund 221 (CP0517) in the amount of $1,036,583.49.66, and the Recharge Storm Fund 224 (CP0517) in the amount of $460,413.47.
The timing of the payments for reimbursable improvements shall be made per municipal code for each fee category and made as funds are available within each fund. A portion of these reimbursable items are budgeted in the current 2025/26 CIP program, however funds from the anticipated 2026/27 CIP budget will be necessary to fully satisfy this reimbursement obligation, these funds will not be available until after July 1st, 2026. No payment shall be made until a Notice of Completion has been recorded for the project.
Prior Council Action: Final map for Pearl Woods - Phase 1 subdivision approved by Council for recordation on July 21, 2025.
Alternatives: None recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute the reimbursement for improvements completed by the Pearl Woods - Phase 1 subdivision.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 04/06/2026
Attachments:
1. Aerial
2. Reimbursement Agreement - Draft
Strategic Goal:
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