HomeMy WebLinkAboutMINUTES - 06052007 - C.08 C-1
B'
TO: BOARD OF SUPERVISORS - Contra
FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR g ,s Costa
DATE: June 5, 2007 "°srA ;i;�`� County
SUBJECT: ADOPT Traffic Fee Credit and Reimbursement Policy and APPROVE Standard Form
Reimbursement Agreement, Unincorporated County areas. (All Districts)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDED ACTION:
ADOPT Traffic Fee Credit and Reimbursement Policy and AUTHORIZE its use to determine credits and
reimbursements of Area of Benefit Traffic Fees.
APPROVE Standard Form Reimbursement Agreement for use in entering into agreements with developers for
reimbursement of Area of Benefit Traffic Fees.
FINANCIAL IMPACT:
Adoption of the Traffic Fee Credit and Reimbursement Policy(attached hereto as Exhibit A)and approval of the
Standard Form Reimbursement Agreement (attached hereto as Exhibit B) will allow the Public Works
Department to apply traffic fee credits against and provide reimbursements from applicable Area of Benefit fees,
as necessary. Reimbursements will be made only from Area of Benefit traffic fees. There will be no impact to
the General Fund.
Continued on Attachment: ® SIGNATURE:
2-/RRECOMMENDATION OF COUNTY ADMINISTRATOR F1 RECOMMENDATION OF BOARD COMMITTEE
2 APPROVE ❑ OTHER
SIGNATURE(S .
ACTION OF BOR ONA&V G- a2AW,*' APPROVED AS RECOMMENDED[2e""OTHER ❑
VVOF SUPERVISORS
1/ UNANIMOUS(ABSENT f—')
AYES: NOES:
ABSENT: ABSTAIN: I hereby certify that this is a true and correct copy of an
CL:tr action taken and entered on the minutes of the Board of
GATransEng\2007\B0-TEB0-A0B ReimbAgmt Policy.doc
Supervisors on the date shown.
Orig.Div:Public Works(TE)
Contact: Chris Lau,313-2293
c: PW Administration—J.Bueren
PW Administration—H.Ballenger
PW Accounting—C.Raynolds ATTESTED:
PW Eng.Srvs.—B.Balbas JOHN CULLEN, Clerk of the Board of Supervisors and
PW Trans.Eng.—S.Kowalewski
PW Trans.Eng.—C.Lau County Administrator
County Auditor/Controller
County Treasurer/Tax Collector
By Deputy
SUBJECT: ADOPT Traffic Fee Credit and Reimbursement Policy and APPROVE Standard Form
Reimbursement Agreement, Unincorporated County areas. (All Districts)
DATE: June 5, 2007
PAGE 2
REASONS FOR RECOMMENDATIONS AND BACKGROUND:
Installation of road improvements that are required as a condition of approval for development can be very
costly, and in many cases benefits other properties within an Area of Benefit. An Area of Benefit traffic fee
ordinance distributes the fee for these road improvements to all parcels within the Area of Benefit in proportion
to the estimated benefits they will receive from the improvements. The ordinance becomes operative with
respect to a specific parcel of land upon a request to develop or improve that parcel. The Area of Benefit fee
obligation is limited to the fee due and is payable as a condition of approval of a final map or issuance of a
building permit.
When a condition of development requires a developer to construct offsite road improvements,the developer
may be entitled to a credit against the Area of Benefit fee obligation. When a condition of development requires
the construction of offsite road improvements with a cost in excess of the Area of Benefit fee obligation, a
portion of the excess cost may be eligible for reimbursement.
This Traffic Fee Credit and Reimbursement Policy and standard form Reimbursement Agreement formalizes and
provides a mechanism to provide developers with credits and reimbursements to which they may be entitled.
The policy generally allows costs of construction,design,administration of contracts and acquisition of right-of-
way to be applied as credits against Area of Benefit fee obligations or reimbursed to developers who construct
offsite road improvements. Reimbursements are made from available Area of Benefit traffic fees over a 10-year
period.
CONSEQUENCES OF NEGATIVE ACTION:
Failure to adopt the recommended Traffic Fee Credit and Reimbursement Policy and approve the standard form
Reimbursement Agreement will provide the Public Works Department with no formal,approved mechanism to
reimburse developers for offsite road improvements required as project mitigations.
EXHIBIT A
TRAFFIC FEE CREIDIT AND REIMBURSEMENT POLICY
Adopted oS'. 0z"
This Traffic Fee Credit and Reimbursement Policy ("Policy"), adopted by the Contra Costa
County Board of Supervisors, shall be used to determine credits and reimbursements of Area of
Benefit Traffic Fees.
I. TERMS AND (DEFINITIONS
The terms set forth in this paragraph, as used in this Policy, are defined as follows:
A. Development Program Report: The report adopted by the Board of Supervisors for
an Area of Benefit, identifying road improvements needed to serve that Area of Benefit, the
estimated costs of those road improvements and recommended traffic fees.
B. Area of Benefit Traffic Fee Ordinance: The ordinance adopted for an Area of
Benefit pursuant to Government Code section 66484 and Division 913 of the Contra Costa
County Ordinance Code, establishing the traffic fees necessary to complete construction of the
road improvements in that Area of Benefit.
C. Area of Benefit Fee Obli ag tion: The traffic fee due on a development, as
determined from the Area of Benefit Traffic Fee Ordinance.
D. Improvement Costs: The cost of installing road improvements identified in the
Development Program Report for an Area of Benefit.
E. Eligible Costs. The portion of Improvement Costs eligible to be applied as credits
against the Area of Benefit Fee Obligation or reimbursed to a developer, as more particularly
described in Paragraph III of this Policy.
F. Onsite Road Improvements: Public road improvements required within the
boundaries of a development and the first twenty feet (20) of pavement widening of the public
road(s) along the frontage of the development.
G. Offsite Road Improvements: Public road improvements identified in the
Development Program Report that are required outside the boundaries of a development, beyond
the first twenty (20) feet of pavement widening of the public road(s) along the frontage of the
development.
H. Credit: A deduction from a developer's Area of Benefit Fee Obligation for which
a developer may be eligible if the developer has incurred Eligible Costs to install Offsite Road
Improvements.
Page I of 4 _EXHIBIT A
I. Reimbursement: A payment for which a developer may be eligible if Eligible
Costs exceed the developer's Area of Benefit Fee Obligation.
IL GENERAL
Installation of road improvements that are required as a condition of approval of
development can be very costly and, in many cases, benefits other properties within an Area of
Benefit. An Area of Benefit Traffic Fee Ordinance distributes the fee for these road
improvements to all parcels within the Area of Benefit in proportion to the estimated benefits they
will receive from the improvements. The ordinance becomes operative with respect to a specific
parcel of land upon a request to develop or improve that parcel. The ,Area of Benefit Fee
Obligation is limited to the fee due and is payable as a condition of approval of a final map or
issuance of a building permit.
When a condition of development requires a developer to construct Offsite Road
Improvements, the developer may be entitled to a credit against the Area of Benefit Fee
Obligation. . When a condition of development requires the construction of Offsite Road
Improvements with a cost in excess of the Area of Benefit Fee Obligation, a portion of the excess
cost may be eligible for reimbursement.
III. ELIGIBLE COSTS
Eligible Costs may be applied as a credit against the Area of Benefit Fee Obligation and,
to the extent Eligible Costs exceed the Area of Benefit Fee Obligation, reimbursed to the
developer. Eligible Costs are as follows:
A. Actual costs of construction of Offsite Road Improvements, including but not
limited to costs of grading, paving, erosion control, installation of fencing, walls and traffic
signals, permit fees and public agency inspection fees. Actual costs shall be determined based on
invoices submitted by the developer to the Public Works Department.
B. Costs of design of Offsite Road Improvements, including civil and geotechnical
engineering, traffic consulting and traffic signal design, which shall equal the lesser amount of
either (1) the developer's actual costs of design, determined based on invoices submitted by the
developer to the Public Works Department; (2) 14 percent of the actual costs of construction of
the Offsite Road Improvements; or (3) 14 percent of the lowest of three independent bids
submitted by the developer and approved by the Public Works Department.
C. Costs of administration of contracts related to Offsite Road Improvements; which
shall equal the lesser amount of(1) the developer's actual costs of administration of contracts,
determined based on invoices submitted by the developer to the Public Works Department; (2) 14
percent of the developer's actual costs of construction of the Offsite Road Improvements; or (3)
14 percent of the lowest of three independent bids submitted by the developer and approved by
the Public Works Department.
D. Costs of acquisition of right-of-way needed for the construction of Offsite Road
Improvements, which shall equal the lesser amount of (1) the developer's actual costs of
Page 2 of 4
I
• acquisition or (2) fair market value of the right-of-way. Notwithstanding the foregoing, if the
developer owns or possesses any other interest in the parcel or parcels of real property containing
the right-of-way, costs of acquisition of the right-of-way shall not be applied as a credit or
reimbursed to the developer.
Notwithstanding anything to the contrary herein,the County reserves the right to reject any
or all of the developer's bids, invoices and/or any other proposed value of said Eligible Costs and
to calculate said costs using then current prices as determined by Public Works staff.
If the developer elects to construct more costly road improvements than those shown on
the adopted Development Program Report, the County reserves the right to calculate Eligible
Costs using the then current prices for only the road improvements shown on the adopted
Development Program Report, as determined by Public Works staff.
IV. CREDIT
When a condition of development requires the developer to construct Offsite Road
Improvements, Eligible Costs may be applied as a credit against the Area of Benefit Fee
Obligation.
V. REIMBURSEMENT
A. Where Eligible Costs exceed the Area of Benefit Fee Obligation, the developer,
upon entering into a reimbursement agreement with the County, will be eligible for
reimbursement of the amount of Eligible Costs that is in excess of the Area of Benefit Fee
Obligation.
B. The reimbursement is subject to the following limitations:
I. Reimbursements will be paid only from fees collected pursuant to an Area
of Benefit Traffic Fee Ordinance.
2. If more than one reimbursement agreement is in effect in an Area of
Benefit, the reimbursement payment under each agreement will be based
on the ratio of each agreement's original amount to the total original
amount of all outstanding reimbursement agreements.
3 . The County reserves the right to utilize not more than 80 percent of the
Area of Benefit traffic fees collected annually, on a fiscal year basis, for the
purpose of making reimbursement payments.
4. Reimbursement payments will be made quarterly, except that, during any
quarter the County reserves the right not to make said payments if the
amount of available funds to be disbursed is less than $5,000.00.
5. Reimbursement agreements will remain in effect for a base period of ten
years (forty quarters). The first quarter shall be the one following the
Page 3 of 4
quarter in which the first reimbursement payment is made. The developer
shall forfeit any outstanding balance owed at the end of the ten years if 80
percent or more of the money has been reimbursed. If at the end of the ten
years, less than 80 percent of the money has been reimbursed, the
agreement will be extended for five years. If after a period of five years the
developer has not been reimbursed 80 percent of the amount due, the
agreement shall be extended for another period of five years. Any
remaining balance owed after twenty years shall be forfeited.
VI. SPECIAL CONIDITI®NS
From time to time, project-specific situations may arise that, in the judgment of County
staff, require special terms to be added to the standard reimbursement agreement. Such terms
may address matters that are not specifically covered in the Policy or may be exceptions to the.
Policy. Such terms may be incorporated into the reimbursement agreement to be executed by the
developer and approved by the Board of Supervisors.
VII. APPLICABILITY
Upon adoption for a particular Area of Benefit, this Policy will be the basis for all
subsequent reimbursement agreements in that Area of Benefit. This Policy will not alter any
reimbursement agreement executed pursuant to a different policy.
H:\Final\PW\TrafficPolicy.5.7.07.wpd
Page 4 of 4
CONTRA COSTA COUNTY
PUBLIC WORKS.DEPARTMENT
REIMBURSEMENT AGREEMENT
1. . PARTIES. Effective 111&10n.e-- 0--r, o&Z c 7 , the County. of Contra Costa, a
political subdivision of the State of California (hereinafter "COUNTY"), and
(hereinafter"DEVELOPER")
mutually agree as follows:
2. INTRODUCTION.
A. DEVELOPER is subdividing the property designated as Subdivision
(within Area of Benefit). Said development
is within the jurisdiction of the County of Contra Costa. To satisfy COUNTY's
conditions of approval for said development, DEVELOPER must install a portion
of the road improvements identified in the adopted Development Program Report
for the Area of Benefit.
B. The cost to install these road improvements exceeds the amount of the fee required
by the Area of Benefit fee ordinance for said Area of Benefit, Ordinance
No. (hereinafter"Ordinance").
C. COUNTY has adopted a Traffic Fee Credit and Reimbursement Policy for said
Area of Benefit (hereinafter "Policy"), the terms of which are incorporated herein
by reference. A copy of said Policy is attached hereto as Exhibit A.
D. DEVELOPER has requested that the COUNTY enter into this Reimbursement
Agreement(hereinafter"Agreement")with DEVELOPER,pursuant to said Policy.
3. AUTHORITY. This Agreement is authorized by and entered into pursuant to
Government Code section 66489.
4 TERMS. COUNTY shall reimburse DEVELOPER for eligible costs exceeding the
amount of fees required by said Ordinance, in accordance with the terms of this
Agreement, the Policy and COUNTY's above mentioned Development Program Report.
5. ELIGIBLE COSTS. The road improvements, right-of-way and other items eligible for
reimbursement and their estimated costs are outlined on .Exhibit `B", attached hereto and
incorporated herein by reference.
Pagel of 3 EXHIBIT B
6. DEDICATION OF RIGHT OF WAY. Right of way containing the road improvements
covered by this Agreement shall be offered for dedication to the COUNTY.
7. CONFORMANCE TO PLANS AND SPECIFICATIONS. The road improvements
covered by this Agreement shall be installed in conformance with the plans and
specifications prepared by DEVELOPER and approved by COUNTY. COUNTY is
under no obligation to perform under this Agreement unless and until the road
improvements are accepted as complete by COUNTY.
8. HOLD HARMLESS. DEVELOPER shall defend; indemnify, save and hold COUNTY
and its governing body,officers, agents and employees absolutely free, clear, and harmless
from any claims, actions, or costs arising from any property and/or rights acquisition
which may be necessary hereunder, or arising from any and all damage to property, injury
to persons, including death, or any other type of liability arising as a result of
DEVELOPER's installation of the road improvements required by the conditions of
approval for said development.
9. . NON-RESPONSIBILITY OF COUNTY. The installation of road improvements covered
by this Agreement is the sole responsibility of DEVELOPER, except for the normal
inspection provided by the COUNTY. COUNTY assumes no responsibility whatsoever
for construction procedures and methods utilized by DEVELOPER in constructing the
road improvements; however, DEVELOPER shall comply with the plans and
specifications and all applicable codes.
10. PAYMENT. Payment terms are set forth in Exhibit "A", except that the first payment
will not be made until DEVELOPER submits to COUNTY acceptable evidence that
DEVELOPER has paid for installation of the road improvements covered by this
Agreement.
11. TERMINATION. This Agreement shall remain in effect either (1) for the time as
provided in Section V.B. of Exhibit A or (2) until DEVELOPER has been reimbursed for
the total eligible reimbursement amount, whichever first occurs. Non-submittal of the
acceptable evidence of payment required by Section 9 shall not result in an extension of
the termination date.
12. NO OTHER RECOURSE AGAINST COUNTY.
A. This Agreement constitutes the total statement of rights between COUNTY and
DEVELOPER concerning payment or reimbursement for costs of installing the
road improvements exceeding the required Area of Benefit fees.
Page 2 of 3
B. If, after the expiration of the time described in Section V.B. of Exhibit A,
DEVELOPER has not received the total reimbursement amount, DEVELOPER
shall have no right to further reimbursement by COUNTY from any Area of
Benefit fees thereafter collected by the COUNTY, or from any other source of
COUNTY funding.
COUNTY DEVELOPER*
B By
Ch ' , oard of Supervisors
Name:
ATTEST: \A4-wv tom; &c
John Cullen, Clerk of the Board of Title:
Supervisors and County Administrator
By By
D puty Clerk
Name:
RECOMMENDED FOR APPROVAL:
Title:
Maurice M. Shiu
Public Works Director Taxpayer ID. #
*.If Developer is a corporation,two officers must sign. The first
By must be the chairman of the board,president or any vice president;
the second must be the secretary,assistant secretary,chief financial
officer or any assistant treasurer. (Corp.Code,§313;Civ.Code,§
APPROVED AS TO FORM: 1190.) If Developef is a limited liability company,Developer shall
sign in the manner required of corporations,or by two managers,or
by one manager,pursuant to the articles of organization(see Corp.
Silvano B. Marehesi Code,§§ 17151,17154, 17157.) If Developer is a partnership;any
County COUriSeI authorized partner may sign. Signatures by Developer must be
notarized.
By
Deputy
Exhibit"A"— Traffic Fee Credit and
Reimbursement Policy
Exhibit"B"— Calculation of Reimbursement
Amount
H:\Final\P WU'W ReimbursementAgreement.5.7.07.wpd
Page 3 of 3
I