Agenda Item Wording:
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Developer Reimbursement Agreement for Sewer Trunk Line - Authorize the City Manager to execute the Reimbursement agreement with CRP LDF Central Point III, LLC (CapRock III), located at 4001 N. Plaza Dr. for the installation of a 30” Sanitary Sewer Trunk main on American St from Riggin Avenue extending north three-quarters of a mile to the project limits.
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Deadline for Action: 9/16/2024
Submitting Department: Community Development
Contact Name and Phone Number: Edelma Gonzalez, Associate Engineer - (559)713-4364, edelma.gonzalez@visalia.city <mailto:edelma.gonzalez@visalia.city> Chris Crawford, City Engineer - (559) 713-4331, chris.crawford@visalia.city <mailto:chris.crawford@visalia.city> Jason Huckleberry, Director of Eng & Bldg. - (559)713-4495, jason.huckleberry@visalia.city <mailto:jason.huckleberry@visalia.city>
Department Recommendation:
Staff recommends authorizing the City Manager to execute the reimbursement agreement in the amount of $1,728,189.10 for a 30-inch diameter sanitary sewer trunk line extension constructed along future American Street (Road 76), from Riggin Ave to northerly project property line located at 4001 N. Plaza Drive (approximately three-quarters of a mile) in conjunction with the commercial development under Building Permit No. B231217.
Background Discussion:
The Central Point III is a 1,270,750-square feet warehouse project being developed by CRP LDF Central Point III, LLC (CapRock III)., and is located at the northwest corner of Riverway Avenue and Plaza Drive. Per the conditions of approval under Site Plan Review 22-178, the project was required to install a 30-inch master planned sewer trunk line in American Street in accordance with the Sewer Master Plan update. The sanitary sewer trunk line was required to be extended from Riggin Avenue north to project limits. Reimbursement of the sewer trunk would also fall under the city sewer master plan program, with reimbursement of the sewer trunk line installation and oversized costs allowed under the provisions of Title 13 of the Visalia Municipal Code (VVMC).
The City Engineering Design Division had prepared for this main extension by creating a Capital Improvement Project (CIP) for American Street trunk extension under Capital Project No. 0566 (CP0566). CP0566 consists of 5,200 feet of 30-inch diameter pipeline in American Street (Road 76). The project extends from Riggin Avenue to Avenue 320 and will serve the industrial zoned area of the City. The CIP was intended to serve emerging industrial development between Riggin Avenue and Avenue 320; areas within the Industrial Land Use Zone and Tiers 1 and 3 Urban Development Boundary Areas.
The reimbursement total for this project is $1,728,189.10 for the sewer trunk line work beyond the typical developer responsibilities. Cash reimbursement will be due once the improvements have been accepted by the City and Building Permit No.: B231217 is final. The reimbursement will be funded through the identified CIP (funded by Fund 231 Wastewater Trunkline), CP0566 has a budget of $3,835,000.
After reimbursement is made, the City CIP project will have a balance of $2,106,810.90 to complete the remaining quarter mile of sewer trunk line. The 30-inch diameter pipe in American Street installed by developer encompasses 75% of CP0566 and only utilized approximately 45% of the available budget.
The City’s Development Reimbursement Committee (DRRC) has reviewed and recommended approval of the estimated reimbursement associated with the CRP LDF Central Point III, LLC (CapRock III) project in a meeting held on August 8, 2024. Therefore, staff recommends the City Council authorize the City Manager to execute the agreement.
Fiscal Impact:
Cash reimbursement of $1,728,189.10 from the American Street Trunk Extension Fund CIP No. 0566 (231 Wastewater Trunkline fund)
Prior Council Action: None
Other: On August 8, 2024, the Development Reimbursement Review Committee (DRRC) reviewed and recommended for approval the reimbursement associated with CRP LDF Central Point III, LLC (CapRock III) project.
Alternatives: None recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to execute the reimbursement for the 30-inch diameter sewer trunk line extension associated with CRP LDF Central Point III, LLC (CapRock III) project.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
1. Aerial Exhibit
2. Reimbursement Agreement