REPORT TO THE CITY COUNCIL DECEMBER 11, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division BY: DAVID CISNEROS, Manager, Special Projects Public Works Department, Traffic and Engineering Services Division SUBJECT ..Title Actions related to Measure "C" Transit Oriented Development (TOD) Projects in the Cultural Arts District (Council District 3) 1. Approve a Reimbursement Agreement with FFDA Properties LLC, (a branch of Granville Homes) for $116,342 for the Met Block Project Off-site Improvements under the Measure "C" TOD Program 2. ***RESOLUTION - 13th amendment to the Annual Appropriation Resolution (AAR) No. 2014-95 appropriating $129,600 for the Measure "C" TOD Program Reimbursement Agreement for the Met Block Off-site Improvements Project on Fulton, Stanislaus and Calaveras Streets (Requires 5 affirmative votes) ..Body RECOMMENDATION 1. Staff recommends that the Council approve a Reimbursement Agreement in the amount of $116,342 for construction of off-site improvements under the Measure "C" TOD Program, approved as to form by the City Attorney's Office. 2. Staff recommends the Council adopts the 13th Amendment to the Annual Appropriation Resolution No. 2014-95 appropriating $129,600 for the project (requires five affirmative votes). EXECUTIVE SUMMARY On February 27, 2014, the Council adopted Resolution No. 2014-37, authorizing submission of an application for grant funds under the TOD program. The Resolution included the off-site improvements for the Met Block Development and the Broadway Project, in the amount of $533,457. The project scope for the Met Block Project will include the construction of off-site improvements along the abutting frontages of the project site, such as curbs, gutters, sidewalks and paving on Stanislaus Street, Fulton Street and Calaveras Street. On September 10, 2014, the FCTA Board approved the allocation of TOD funds for the Met Block Project. The attached Reimbursement Agreement will allow for the City to reimburse FFDA Properties LLC for eligible project costs. BACKGROUND The Measure "C" Extension (2007-2027) approved by the voters of Fresno County includes a number of subprograms including regional street and highway projects, airport funding, transit, flexible funding, street maintenance, bicycle lanes, trails and environmental enhancements, as well as several others. Under the Environmental Enhancement Allocation Program, the Measure "C" Expenditure Plan includes the TOD Program, the purpose of which is to provide funding to support planning, incentives and infrastructure related to higher-density infill development where occupants use the public transit system. On February 27, 2014, the Council adopted Resolution No. 2014-37, authorizing submission of an application for grant funds under the TOD program. This resolution included the Met Block Project off-site improvements along the abutting frontages of Calaveras Street, Stanislaus Street, and Fulton Street, in the amount of $121,342. In order to complete the project and allow for reimbursement of project costs from the Measure "C" TOD funds, the City and FCTA, on September 10, 2014, entered into a Cooperative Agreement. Staff has now negotiated a reimbursement agreement for this project with FFDA Properties LLC in anticipation of the developer obtaining bids, managing the construction contract and submitting the necessary financial documentation for reimbursement of eligible project costs. Staff recommends the Council approve the attached Reimbursement Agreement which has been approved as to form by the City Attorney's Office prior to execution. Upon approval by the Council and City Attorney's Office, the agreement will be executed on behalf of the City by the Public Works Director, in accordance with the City Manager's delegation of the signing authority. In addition, the Department's FY 2015 budget should be increased to fund this project. Staff recommends that the City Council adopt the 13th Amendment to the Annual Appropriation Resolution No. 2014-95 allocating $129,600 for expenditure on activities related to the reimbursement agreement. The City will reimburse Granville Homes $116,342 for the street improvements and use $13,258 to pay for staff time that has and will be used to prepare, process and review the agreements and reports. ENVIRONMENTAL FINDINGS On July 3, 2014, a Notice of Determination for City of Fresno Environmental Assessment No. C-13-137/T-6059/T-6060 was filed with the Fresno County Clerk. The property owner, FFDA Properties, LLC has filed a Conditional Use Permit (CUP) Application No. C-13-137 and Vesting Tentative Tract Maps Nos. T-6059 and T-6060 pertaining to approximately 2.30 net acres of property bounded by Van Ness, Calaveras, Fulton and Stanislaus Streets (the "Met block") in downtown Fresno. The CUP authorizes construction of an 85-unit residential and commercial mixed use development on the subject property. Vesting Tentative Tracts 6059 and 6060 propose common lot air space subdivisions for condominium purposes on portions of the property. The project includes demolition of an existing accessory building, vacations of portions of existing public street rights-of-way and installation and construction of both public and private facilities and infrastructure in accordance with the standards, specifications and policies of the City of Fresno. Approval of the Reimbursement Agreement will facilitate implementation of a portion of the Project. An analysis has been performed pursuant to CEQA Guidelines � 15162 to determine whether subsequent environmental review is required for the Reimbursement Agreement. Based upon this analysis the following findings are made to support the determination that no subsequent environmental review is required: 1. No substantial changes are proposed in the project which will require major revisions of the previous Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In this case, there are no changes to the project. 2. No substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. In this case, there have been no changes in circumstances. 3. There is no new information, which was not known and could not have been known at the time of the previous Mitigated Negative Declaration that the project will have significant effect not discussed in the Mitigated Negative Declaration. LOCAL PREFERENCE Not applicable because this is not a competitive bid. This is a funding mechanism only. FISCAL IMPACT The $129,600 project cost to construct off-site improvements abutting frontages of the project, is being primarily funded by Measure "C" TOD dollars in the amount of $121,342. An additional $8,258 in Measure "C" Flexible funding is for expenditures not eligible for Measure "C" TOD Funds. Approximately $13,258 of the $129,600 will be applied to cover City administrative costs. There will be no impact to the General Fund. The attached 13th Amendment to the Annual Appropriation Resolution No. 2014-95 will provide the appropriations necessary to fund the Reimbursement Agreement in FY 2015. Attachment: Reimbursement Agreement Resolution