Title:
Title
Reimbursement of Engineering and Soft Costs for the Willowcreek Fee District
End
FileID
File ID: 2019-00513
Location
Location: District 4
Recommendation:
Recommendation
Adopt a Resolution: 1) increasing the expenditure budget in the Willowcreek Fee Project (I22206000) by $290,000 with a transfer from available fund balance in the Willowcreek Fee Fund (Fund 3008); and 2) authorizing the City Manager or City Manager’s designee to reimburse the engineer and landowners as reflected on Exhibit A, or their verified successors in interest.
Contact: Eric Frederick, Program Specialist, (916) 808-5129; Sheri Smith, Special Districts Manager, (916) 808-7204, Department of Finance
Body
Presenter: None.
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A Reimbursement Amounts
Description/Analysis
Issue Detail: On May 13, 1997, the City Council adopted Resolutions No. 97-227 and 97-228 and Ordinance No. 97-027, thereby forming the Willowcreek Fee District, adopting the Willowcreek Financing Plan/Nexus Study (Original Finance Plan), and establishing the Willowcreek Fee (Fee). Subsequent to its adoption, several construction cost items were added to the facilities program and adjustments were made to certain land use assumptions used in the Original Finance Plan. To account for these revisions, the City Council adopted Resolution No. 97-576 on October 14, 1997, thereby adopting the Amended Final Willowcreek Financing Plan/Nexus Study (Amended Finance Plan) and establishing revised Fee amounts. The Amended Finance Plan added certain emergency access costs, roadway improvement costs, utility undergrounding costs, utility relocation tax costs, and developer project management costs that were not included in the Original Finance Plan.
Fee revenue that is collected by the City is to be distributed to various fund components based on cost percentages outlined in the Amended Finance Plan. Specifically, 6.9% of Willowcreek Fees collected are to be distributed for “Engineering Consultant Costs” (Engineering Costs) and 8.7% is to be distributed for “Property Owner Soft Cost Reimbursements” (Soft Costs).The Engineering Costs represent the cost of engineering services provided by the Spink Corporation, and the Soft Costs represent amounts advanced by landowners within the Willowcreek Fee district. These costs were used initially to facilitate the implementation of the Amended Finance Plan through the Fee.
On October 14, 1997, City Council adopted Resolution No. 97-577, thereby authorizing the execution of the Reimbursement Agreement by and Between the City of Sacramento, the Spink Corporation and Landowners and Former Landowners in the Willowcreek Assessment District Relating to Private Funding of Certain Willowcreek Finance Plan and Developer Project Management Costs (Agreement #97-167) to reimburse advance funded costs if sufficient Fee revenues are collected. Since the execution of Agreement #97-167, the Spink Corporation was acquired by Stantec Consulting. In addition, three landowners have been fully reimbursed and two other land owners have assigned portions of their remaining reimbursement amounts to various successors-in-interest. As a result of these actions, thirteen entities are due reimbursement for costs originally incurred.
As of July 1, 2018, a total of $364,295 is still owed under Agreement #97-167. Of this, $160,115 is reimbursable from the Engineering Cost component and $204,180 is reimbursable from the Soft Cost component of Fees collected. With the recent increase in development activity, staff has verified that a total of $290,000 is available for reimbursement: $130,000 for Engineering Costs and $160,000 for Soft Costs. To complete these reimbursements, the expenditure budget of the Willowcreek Fee Project (I22206000) must be increased by $290,000. Reimbursement of the remaining $74,295 will be made when sufficient future Fee revenues are collected.
Policy Considerations: The recommendations in this report are consistent with the Amended Finance Plan adopted in 1997 and with Agreement #97-167.
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): Under CEQA Guidelines, continuing administrative activities do not constitute a project and are therefore exempt from review (14 Cal. Code Regs. §15378(b)(5)).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Increasing the expenditure budget of the Willowcreek Fee Project is required to reimburse the engineer and landowners pursuant to Agreement #97-167.
Financial Considerations: The Engineering Costs and Soft Costs components of the Fee revenue, and the associated interest, is accounted for in Fund 3008. These components of the Willowcreek Fee were established to provide funding for developer paid project management costs that facilitated the implementation of the Amended Finance Plan. The $290,000 will be disbursed from available fund balance (Fund 3008) to twelve landowners/entities, as set forth in Exhibit A to the resolution. The recommended action will not affect the General Fund.
Local Business Enterprise (LBE): Not applicable.