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Home My WebLink About1986-05-13; City Council; 8559-1; CANNON ROAD ASSESSMENT DISTRICT WORKSHOPt A .rl 8 u rd a c a, 0 E u a, w 4-1 u rd m a, 5 a a, g N a 4 -rl CJ d V g u3 co m I 4 I m N a rd .. z 0 6 6 z 3 0 0 a c , I *. J- CI~F CARLSBAD - AGEND~ILL AB#-/ TITLE MTG. 5/13/86 CANNON ROAD ASSESSMENT DISTRICT CITY A- DEPT. ENG RECOMMENDED ACTION: CITY MGR~ WORKSHOP 1. If Council desires to pursue an Assessment District, direct staff to bring the developer's proposal before the Project Review Committee in accordance with Council Policy No. 33. 2. If Council approves in concept obligating future Public Facilities Fee (PFF) revenues, direct staff to include $3.1 million in PFF credits in the proposed district. ITEM EXPLANATION: This proposed district has a long history, having begun in 1983 to serve properties east of El Camino Real only. On November 27, 1984 at the request of developers, Council authorized the formation of a district that included Cannon Road from 1-5 to the east City limits. Staff diligently pursued forming the district, hired a consultant assessment engineer, and placed a completed Debt Limit Report on the Council agenda on April 23, 1985. The developers requested the item be removed from the agenda because cost estimates were too high. Since that time, staff has spent large amounts of time considering numerous proposals from developers. A second completed Debt Limit Report was placed on the agenda and removed. There are divergent views among the developers on how to proceed. The original Assessment District is gone and developers have presented staff with a new proposal (Exhibit 1). This plan would construct half-width Cannon Road from 1-5 to Kelly Ranch only as an Assessment District. The proposed plan contemplates a large fill across the wetlands adjacent to the Aqua Hedionda Lagoon. This is inconsistent with the adopted Local Coastal Plan and would require an amendment to the LCP to proceed. The proposal also contemplates developers being reimbursed from PFF funds in the amount of $3.1 million for construction and right-of- way for the road between 1-5 and Kelly Ranch. In addition, a City contribution of $621,322 toward the sewer is requested. The sewer would be built by developers privately and they would expect a reimbursement for oversizing from sewer fees. In order to proceed with the proposed district several policy decisions must be made: 1. Does Council wish to consider a fill across the wetlands area (with appropriate mitigation measures)? 2. Does Council wish to consider committing future PFF funds from the area to build Cannon Road? t a e 1) Page 2 of Agenda Bill No. fsfl-#/ 3. Does Council wish to grant credits or reimbursement from the Sewer Construction Fund for the sewer? Alternatives Council may wish to consider are: 1. Proceed with developers proposal now as outlined above. 2. Require developers to submit a petition for the new district and direct the Project Review Committee to review the proposal and make a re- commendation in accordance with Council Policy No. 33. 3. Proceed with an Assessment District without PFF credits. 5. Permit developers to install the road at their cost. 6. Wait until the environmental review process is completed. If mitigation measures are not acceptable to the City or are too expensive for the developers, or if a bridge is required, the developers will drop the project. Therefore, it may be a waste of time to continue processing before the environmental status is known. FISCAL IMPACT: 1. All funds to pay the assessment engineering con- sultant have been used. In order to proceed as an Assessment District, developers need to submit an additional deposit. Staff and bond counsel deposits may need additional money as well. 2. The district as proposed by developers requires the City to commit future PFF funds in the amount of approximately $3.1 million to reimburse devel- opers for Cannon Road. It is estimated that $14 million in PFF funds will be generated by these projects at buildout (Exhibit 2). However, the first $3.1 million created in these projects would not be available to be used in other parts of the City. In the event the Growth Initiative passes in November, there would be an enormous impact on the PFF funds and may cause a reduction in funding for other projects. f -2 P d) Page 3 of Agenda Bill No. fTrY -- -&/ 3. The proposal contemplates $621,322 contribution by the City towards the sewer. Sufficient funds are available in the Sewer Construction Fund for this and other proposed sewer projects. In ad- dition, the developers anticipate reimbursement from the Sewer Connection Fee for this construc- tion amounting to an additional $1.9 million. EXHIBITS: 1. 2. PFF Generated By Projects Map. 3. Letter from San Diego Gas & Electric dated May 1, 1986 Proposal For Cannon Road And Sewer and Location Map. to Community Development Director. 1 .t 0 FROE6ALFORCA"ONRL)AD@ sE;wER FRtrM EL CAMIN0 REAL TO 1-5 I. CAN" ROAD ASSESSMENT DIsTRICII A. Fmm El Cdno Real to Faraday (Est. Cost $5.5 million) Full width right-of-way aril impmvanerrt to be pmided by Kel-cdl jn accordance with approved FIXIS* Plan. Fmm FaradaV to 1-5 (m. Cod $3.1 dlion) SM;&E and carltas b dedicate right-of-way and &ve PFF credit against future developent (Est. $896,000). Halfdda inprwanents to be pmided by major Assessment District participants (Carlsbad Research Center, Kel-Cal, Bieri Avb & Carlsbad Highlands) who will receive PF'F credit against future dwelpz (Est. $2.2 million). 13evelopers to w- pursuit of Asses& District for this portion of road, but also to prov%de agreement satisfactory to City that road will be built (assuming fill not bridge at B. Faraday) - II. sm SEWER PRIvAm SYSTEM A. hram ~1 &mino ~eal to pumxl station at FZX~W (E&. cost $900 # 000) To be built by Kd-Cal who will receive sewer fee credits for oversized lines. Fum Station at Faradav to ESdstkcr Sewer at 1-5 (Est. Cost $2.5 million). Cifq of Carlsbad, as Property owner (Macario park) I to contribute fair share per Assesment District engheer (Est. $655,000). Balance of cost (Est. $1.9 million) to be funded by mjor develaprs (Carl&& Research center 258, Kel-cal 25%, Bieri-Avb 25% and Carlsbad ~~~ 25%). Four developers to receive sewer fee credits in amount equal to participation. b. AGREED To BY: ~BADRE?zmcHcENTER BlEKC-AvIs CARLSBADHI- BY: %ZZ.?.%~~~~ ~-2. DATE2 BY: p-pc.; -/- DA!I!E: Sf 7/96 EXHIBIT 1 ASSESSMENT DISTRICT - i/2 WIDTH IMPROVEMENTS F BY DEVELOPER-FULL WIDTH m IMPROVEMENTS (4 LANES) ' PRO& NO* CANNON ROAD PROJECT? NAME EXHIBl 2 1 J e Y FILE NO -- May 1, 1986 Martin Orenyak City of Carlsbad kYY Y 1986 1200 Elm Avenue Carl sbad, CA 92008-1 989 Dear Marty: Cannon Road Assessment District. The current proposal is to privately construct the sewer line from 1-5 to Faraday prior to formation of the Cannon Road Assessment District. owners affected by the physical construction of these projects. The road and sewer will cross SDG&E land holdings. Assessment District plan to construct Cannon Road and recognizes the need for the sewer. However, we do have several concerns if the sewer line construction precedes the road as currently proposed. are : 1l-Y OF CAWLSBAC Bui lding De pa rtment We attended the April 30 meeting regarding formation of a SDG&E is one of the two property The Company supports the These concerns 1. Will the sewer line be constructed in the ultimate location of Cannon Road (horizontal a1 ignment and vertical grade)? Construction of the sewer line in the ultimate Cannon Road location will require substantial grading and creation of fill across the eastern end of the lagoon. We are not in favor of constructing the sewer in a temporary location. If the sewer is constructed prior to formation of the assessment district what assurance is there that the developers will pursue formation of the district and in what timeframe? SDG&E believes that either bonds be required or that legal agreements be executed which are binding and tied to the land. The design of both the sewer and road needs to either avoid conflicts with or provide relocation of existing gas and electric facilities. ?he area is traversed with several major electric transmission lines and a conflict due to location or ground clearances could result in major utility relocation work requiring lengthy design and construction time. request to evaluate potential conflicts or perform feasibility studies has been received by SDG&E. Prior to any construction beginning on either the sewer line or Cannon Road, conflicts with SDG&E facilities must be identified and resolved. process, a written request must be made to SDG&E for review of the preliminary plans for conflicts. SDG&E will then prepare a cost estimate to perform any necessary feasibility studies or design. 2. 3. No official To begin this EXHIBIT 3 POST OFFICE BOX 1831 SAN DIEGO, CALIFORNIA 92112 TELEPHONE: 6191696-2000 ’ 1 1 1 May 1 , 1986 -2- e Mr. Martin Orenyak In summary, SDG&E is in favor of constructing Cannon Road. We are concerned about potential conflicts with our gas and electric facilities which could cause additional project costs or delays. SDG&E prefers that the sewer line and Cannon Road be constructed concurrently. However, if the sewer construction is to proceed in advance of the road, SDG&E will oppose an alignment other than the ultimate horizontal and vertical position within the future Cannon Road right of way. there must be a commitment for future construction of Cannon Road and 1-5 to Faraday within a specified timeframe. SDG&E remains committed to working with the City and the developers toward insuring construction of Cannon Road. and the sewer line. If you have any questions or would like to discuss SDG&E's position in more detail, please contact either Pat Stanfield, our project manager, or myself. Pat can be reached at 696-2391. Additionally, f &;% t . Michael Dudley, pervisor Land Management & Redevelopment FMD : Mae cc: Doug Avis, Bieri-Avis Tony German, Koll Company Norman Neste, NBS/Lowry Bill Schainker, Kaufman & Broad Alex Tucker, Carlsbad Highlands P. M. Stanfield