REPORT TO THE CITY COUNCIL December 11, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division DAVID A. 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 $298,658 for Broadway-Fulton off-site improvements from Calaveras to San Joaquin Streets under the Measure "C" TOD Program 2. ***RESOLUTION - 14th amendment to the Annual Appropriation Resolution (AAR) No. 2014-95 to appropriate $331,400 for the Measure "C" TOD Program reimbursement agreement for the Broadway-Fulton off-site improvements project from Calaveras to San Joaquin Streets (Requires 5 affirmative votes) ..Body RECOMMENDATIONS It is recommended that the Council take the following actions: 1. Approve a Reimbursement Agreement with FFDA Properties LLC for $298,658 for Broadway Project Off-Site Improvements from Calaveras to San Joaquin Streets under the Measure "C" TOD Program. 2. Adopt the 14th Amendment to the Annual Appropriation Resolution No. 2014-95 to appropriate $331,400 for the Measure "C" TOD Program reimbursement agreement for the Broadway Project Off-Site Improvements from Calaveras to San Joaquin Streets in FY 2015. EXECUTIVE SUMMARY The proposed reimbursement agreement will cover a second phase of infrastructure improvements for the Broadway/Calaveras Multi-family project being developed by FFDA Properties LLC. The infrastructure to be paid for using Measure "C" TOD funding consists of the construction of off-site improvements along the abutting frontages of the project site, such as curbs, gutters, sidewalks and paving on San Joaquin Street, Broadway and Calaveras Streets, and installation of a new eight-inch water main in Broadway Street. The Council has previously taken action related to the use of TOD funds for this project, including the adoption of Resolution No. 2014-37 on February 27, 2014, authorizing submission of an application for grant funds under the TOD program; and the approval of a Cooperative Agreement with the Fresno County Transportation Authority (FCTA) on August 28, 2014. The project also previously received $456,800 for the undergrounding of overhead utilities and repaving of the Broadway-Fulton Alley from Calaveras to San Joaquin Street. Approval of the agreement and AAR amendment will allow the developer to be reimbursed for the infrastructure costs in accordance with the proposed agreement. BACKGROUND The Measure "C" Extension (2007-2027) approved by the voters of Fresno County includes a number of subprograms for regional street and highway projects, airport funding, transit, 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 developments that are designed to encourage the occupants to use the public transit system. On April 11, 2013, the Council adopted Resolution No. 2013-46, authorizing submission of application for grant funds under the TOD program. This resolution included the Broadway-Fulton Alley Improvements from Calaveras Street to San Joaquin Street in the amount of $456,800. The project scope included the repaving of the alley to provide for proper circulation and drainage in the vicinity of the Broadway Project development. On August 7, 2013, the FCTA Board approved the TOD application for funding. In order to complete the project and allow for reimbursement of project costs from the Measure "C" TOD funds, the City and FCTA entered into a Cooperative Agreement and now the City desires to enter into a Reimbursement Agreement with FFDA Properties LLC. Staff recommends the Council approve the Reimbursement Agreement in substantially the form attached subject to approval 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 or his designee, 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 14th Amendment to the Annual Appropriation Resolution No. 2014-95 to allocate $331,400 for expenditure on activities related to the reimbursement agreement. The City will reimburse FFDA Properties LLC $298,658 for the street improvements and use $32,724 to fund staff time that has and will be used to prepare, process and review the agreements and reports. ENVIRONMENTAL FINDINGS An initial study and Mitigated Negative Declaration was prepared and adopted on May 1, 2013 for C-11-163/C-12-002/VTTM 6015. Conditional Use Permit Application C-11-163, Conditional Use Permit Application C-12-002 and Vesting Tentative Tract Map 6015 pertain to approximately1.29 acres (2.15 gross acres) of property located on the easterly side of Broadway Street between Calaveras and San Joaquin Streets in Downtown Fresno. The Conditional Use Permit Applications and Vesting Tentative Tract Map collectively propose multi-family residences and a one lot subdivision for condominium purposes. 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 that project. An analysis has been performed pursuant 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 process. This is a funding mechanism only. FISCAL IMPACT The project to construct off-site improvements and a water main for the Broadway Project from Calaveras to San Joaquin Streets, located in Council District 3, is being funded with $303,658 in Measure "C" TOD dollars. An additional $27,700 in Measure "C" Flexible funding is for expenditures not eligible for the Measure "C" TOD funds. Approximately $32,733 of the $331,400 will be applied to cover City administrative costs. There will be no impact to the General Fund. The attached 14th 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