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CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
Dept:
Development Services
Subject: Refund of $713,278.70 in Pre-paid
Development Impact Fees to
GFR Enterprises, Inc. d.b.a. Little League
LLC.
From:
Valerie C. Ross, Director
Date: April 8, 2010
MCC Date: April 19, 2010
Synopsis of Previous Council Action:
None.
Recommended Motion:
Authorize the Director of Finance to amend FY 2009/1 0 Capital Improvement Program budget as
outlined in the staff report; and
Refund $713,278.70 in pre-paid Development Impact Fees to Little League LLC.
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Valerie C. Ross
Contact Person:
Valerie C. Ross
Phone: 5357
Supporting data attached:
Staff Report;
Ward: 5
FUNDING REQUIREMENTS:
Amount: $713,278.70
Source: FY 2009/10 CIP Budget
Acct. Description: Various
Finance:
Council Notes:
Agenda Item No. J 7
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CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
STAFF REPORT
Subject:
Authorize the Director of Finance to amend FY 2009/10 Capital Improvement Program budget
as outlined in the staff report and refund $713,278.70 in pre-paid Development Impact Fees to
Little League LLC.
Background:
GFR Enterprises, Inc. d.b.a. Little League LLC (GFR) submitted Tentative Tract No. 17329 on
September 22, 2005 and the Planning Commission approved the tract on February 22, 2006. This
project includes 94 lots on both sides of Little League Drive, and both sides of Ohio A venue,
easterly of Little League Dlive. On May 26, 2006, GFR pre-paid $713,278.70 in Development
Impact fees (DIFs), as follows.
DIF Account No. Amount
Verdemont Infrastructure 208.000-4512 (Fire Station CFD) 141,000.00
Verdemont Infrastructure 311-000-4512 (VIF) 178,513.30
Sewer Connection 245-000-4822 139,013.68
Storm Drain 248-000-4813 235,573.84
Traffic Systems 250-000-4803 19,177.88
Total 713,278.70
When GFR pre-paid the DIFS in 2006, they anticipated that they would soon start development
of the tract. However, shortly after, the market started declining and GFR put that project on
hold. GFR determined that it would not be economically viable to construct that project in the
near future and have requested a refund of the pre-paid DIFs.
Financial Impact:
Verdemont Infrastructure Fund (Fund 208). Finance estimates that the end balance on June 30,
2010 will be $323,147. This ending balance assumes that $189,000 set aside for two projects
(Playground Equip at Tom Minor Park and Monument Signs) would be completed. Based on
current discussions on the CIP, these two projects are being put on hold which then increases the
available balance in the Verdemont Infrastructure Fund to $512,147. With Mayor and Council
approval of the revised Park Agreement with GFR, the City will use $313,710 of these available
funds for the Phase 1 improvements to President Ronald Reagan Park and $178,513 will be used
to refund the pre-payment to GFR. The $300,000 previously approved and budgeted to pay for
modular units for Al Guhin Park will remain available for this project. There will be an estimated
ending balance of $19,924 in the Verdemont Infrastructure Fund after all the above transactions
are completed.
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CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
STAFF REPORT - Continued
The Fund 208 budgeted amount and estimated balance is shown below:
323,147
+189.000
512,147
- 313,710
- 178.513
19,924
Estimated Balance
2 projects put on hold
City cost to complete Park
Refund of pre-paid fees to GFR
Revised estimated ending balance
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred but not yet processed.
Fire Station Debt Service Fund (Fund 311). On June 30, 2008, Finance closed out Fund 311 and
moved the balance to the Fire DIF fund (Fund 262). Finance estimates that end balance on June
30,2010 will be $474,934. There is adequate funding to refund $141,000.
Sewer Line Constmction Fund (Fund 245). Finance has about $1.8 million in unallocated funds
as shown in the FY 09-10 Mid-Year Report. There is adequate funding to refund $139,013.68.
Storm Drain Constmction Fund (Fund 248). All of the funds in this account are allocated to
current projects. In order to refund the $235,573.84, current CIP projects will need to be
modified. Staff recommends the following:
SD04-15: Highland Avenue Storm Drain from Central Avenue to Baldridge Creek. This
project is being built by Telacu in conjunction with their senior project on the south side
of Highland Avenue, west of Central Avenue, with funding assistance through the EDA.
As a result, staff projects a savings of $150,000 in this account.
SD09-01: 27th Storm Drain from Little Mountain Drive to "H" Street. This project is
necessary because of freeway-related work by Caltrans. $85,574 can be taken from this
account and replenished in a future budget year.
Traffic Systems Constmction Fund (Fund 250). On April 3, 2006, the Mayor and Common
Council adopted Resolution No. 2006-97 which adjusted existing and added new Development
Impact Fees based on the Development Impact Fee Nexus Study and Master Facilities Plan. The
Traffic Systems Fee was changed to two separate fees; the Regional Circulation DIF and the
Local Circulation DIF. Finance closed the Traffic Systems Constmction Fund and created the
two new funds. The funding remaining in the 250 Fund has been allocated and none is available.
The refund of $19,177.88 should be taken from the Local Circulation Fund, and staff
recommends:
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CITY OF SAN BERNARDINO REOUEST FOR COUNCIL ACTION
STAFF REPORT - Continued
TC07-002: Kendall Avenue and 48th Street Traffic Signal. This project has $20,000
allocated for design. The intersection does not meet warrants for a signal, so the
$19,177.88 can be taken from this account and replenished in a future budget year.
Recommendation:
Authorize the Director of Finance to amend FY 2009/10 Capital Improvement Program budget
as outlined in the staff report and refund$713,278.70 in pre-paid Development Impact Fees to
Little League LLC.
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