Title
[Contract] Credit Agreement Landowner Payment for Construction of Water Facilities - Panhandle WD40 Project
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FileID
File ID: 2026-01700
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Location
Location: District 1
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute an Agreement with Pulte Home Company of Michigan to issue water development impact fee credits for the Panhandle WD40 Development Project for the amount not to exceed the actual costs of the developer’s construction of the water infrastructure.
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Contact
Contact: Inthira Mendoza, Project Manager, (916) 808-1473, imendoza@cityofsacramento.org; Michelle Carrey, Engineering & Water Resources Division Manager, (916) 808-1438, mcarrey@cityofsacramento.org; Dalia Fadl, Director (916) 808-3765, dfadl@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Credit Agreement
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Additional Description/Analysis
IssueDetail
Issue Detail: Staff recommends City Council approve an agreement with Pulte Home Company of Michigan (Developer), for the issuance of water development fee credits.
Developer is developing the Panhandle WD40 Project, a 40.0-acre project that proposes to add 158 single-family units. The Panhandle WD40 Project is a part of a larger planned mixed-use project on 589+/- acres of land in North Natomas (“Panhandle Project”). To support this development, the Developer is funding and constructing water transmission mains that are required by the City to ensure adequate service, and that also enhance and benefit the City’s overall water system. The City does not have the staff resources necessary to design and construct the water transmission main improvements. Accordingly, the Developer has incorporated these improvements into its offsite improvement plan.
Per City Code Section 13.04.820, the Developer is eligible for water development fee credits upon Council’s authorization since it is constructing major facilities for the City’s drinking water system. This agreement authorizes the credits, establishes the credit amount and specifies the process for obtaining those credits.
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PolicyConsiderations
Policy Considerations: City Council approval is required to authorize credit for transmission facilities per City Code 13.04.820, subsection F, which allows the Council to grant appropriate credit toward water system development fees for costs associated with water diversion, treatment, storage, or transmission facilities.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: On July 3, 2018, City Council approved the Panhandle Project and certified an environmental impact report (EIR) along with adopting a mitigation monitoring and reporting program (MMRP) (Resolution No. 2018-0287). On August 3, 2018, staff filed a Notice of Determination with the Sacramento County Clerk and the California Office of Planning and Research, State Clearinghouse. The subject activity implements components and processes associated with the approved Panhandle Project, which was included in the analysis conducted in the certified EIR. No further environmental review is required.
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Sustainability
Sustainability: The proposed project is consistent with the 2040 General Plan Policy LUP-1.1 as it requires new development to provide adequate facilities needed to provide services to accommodate growth.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The Developer is funding and constructing the water transmission mains as part of the Project’s need for development, and in doing so, per City Code Section 13.04.820, is eligible for water development fee credits upon council’s authorization.
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FinancialConsiderations
Financial Considerations: In accordance with the City fee credit policies and the Agreement, the City will issue fee credits from the Water Development Fees Fund (Fund 6001) to Pulte Home Company of Michigan in an amount not to exceed the actual cost of the construction of the water infrastructure for the City’s drinking water system. Once the City accepts the infrastructure, the capital assets completed through the fee credits will be added to the Water Development Fees Fund (6001), in accordance with the Generally Accepted Accounting Principles (GAAP).
There are no General Funds allocated or planned for this project.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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