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HomeMy WebLinkAbout40-Community Development CI....'~ OF SAN BERNARD'~~O - REQU""T FOR COUNCIL AC"'--~ON From: Kenneth J. Henderson, Director Subject: FIft~qJ.N~~~~.PUBLIC IMPROVEMENTS IN THE VERDEMONT ARlJgB6 DEe I 2 PM 4: 38 -114t ,~pt: Communi ty Development Date: December 12, 1988 Synopsis of Previous Council action: On May 23 and June 20, 1988, the Mayor and Common Council took actions in connection with a financing and implementation plan for certain public improvements in the Verdemont Area. Recommended motion: That recommendations numbered 1, 2, 3, 4, 5 and 6(d) in the attached staff report be adopted. If approved, the Directors of Public Works, Planning and the Acting Director of Building and Safety are authorized and directed to process all plans in accordance with the California Environmental Quality Act and City policies and procedures up to and including the issuance of grading and building permits. Contact person: Ken Henderson Phone: 5065 Supporting data attached: Staff Report Ward: 5 FUNDING REQUIREMENTS: Amount: $9,285 Source: (Acct. No.) 121-544-57335 Acct. Desc:ri tion CDBG Contingency Finance: f"V"- "ouncil Notes: 20G7 75-0262 Agenda Item No. ///' ~(j CI., f OF SAN BERNARD[ ,0 - REQUI ;T FOR COUNCIL AC.. .ON STAFF REPORT On June 20, 1988, the Mayor and Common Council took an action directing the development of a financing plan for the con- struction of certain public improvements in the Verdemont Area bounded by Little League Drive on the west, the align- ment of Cable Canyon Creek on the south, Devil's Canyon on the east and the National Forest boundary on the north. The improvements included in the Council action are as follows: 1. Palm Avenue Box Culvert. 2. Bailey Canyon storm Drain and Debris Basin. 3. Chestnut Avenue storm Drain and Debris Basin. 4. Traffic Signal at Palm Avenue and Kendall Drive. 5. Installation of curbs and gutters, along with full width street improvements at the following locations: a) Palm Avenue - from Kendall Drive to Ohio Street. b) Irvington Avenue - from Chestnut Avenue to Pine Avenue. c) Belmont Street - from Chestnut Avenue to ,Pine Avenue. d) Pine Avenue - from Belmont Avenue to Ohio street. A timeframe of six (6) months was given for the development and adoption of said financing plan. Discussion Over the last five and one-half months the vast majority of staff work, meetings and analysis has centered around the Chestnut Avenue storm drain and debris basin, the Bailey Creek storm drain and debris basin and the construction of the "New pine Avenue" exte'nsion. Early on in the process, a staff consensus was developeq relative to the Palm Avenue box culvert, the various streets improvements and the traffic signal at Palm Avenue and Kendall Drive. The problems, however, associated with the two storm drains and the "New Pine" extension were more intractable in nature and revolved around identification of up-front funding for the Chestnut Avenue storm drain, the acquisition of private property by the State Department of Water Resources, the owner of which was slated to put in much of the Bailey Creek storm drain, and the litigation involving the Shadow Hills limited partnership which affects the "New Pine" extension. With respect to the Chestnut storm drain, initially the most effective and popular proposed solution was an interfund transfer between the Sewer Line Construction Fund and the Storm Drain Master Plan Fund. The sewer fund contains 12/12/88 1 75-0264 roughly 3.5 million dollars, and with the storm drain estimated to cost 1.3 million dollars, it was anticipated the loan to the storm drain fund would not "impact any projects scheduled in the immediate future. Moreover, it was felt the loan from the sewer fund could be repaid with 'interest in five to seven (5-7) years. After initially passing legal review, staff was informed that such a proposed interfund transfer violated Section 53077 of the government code, which apparently explicitly prohibits such transfers. About the same time as the prospects for "up-front funding for the Chestnut storm drain dimmed considerably, staff was informed that the State Department of Water Resources planned to acquire from Monnig Development, Inc., approximately sixty seven (67) acres bounded by Verdemont Drive on the north, pine Avenue on the east, Ohio Street on the south and Olive AVenUe on the west for the construction of a second after bay at Devil's Canyon. This turn of events threw into question the construction of the Bailey Creek storm drain from Walnut Avenue on the south to Verdemont Drive on the north. Monnig was planning to build approximately 215 homes and would have completed the section of Bailey Creek from Walnut to Verdemont as a condition of development. Two meetings conducted with the Department of Water Resources and the San Bernardino Municipal Water Department lead staff to believe that these and other ancillary improvements will be completed by the Department of Water Resources during the construction phase of the second after bay. One of the major street improvement projects identified for the area was the construction of "New Pine" Avenue beginning just south of Irvington and moving southwesterly to Kendall Drive. "New Pine" was to be put in by the Shadow Hills limited partnership in connection with the construction of approximately 318 apartment units. Unfortunately, this project is connected with the litigation between the City and the Shadow Hills limited partnership and will not go forward, if at all, until the legal issues have been resolved. Recommendations 1. Palm Avenue Box Culvert: The estimated cost of construc- tion is $636,000*. The recommended method of financing is through the establishment of an area-wide assessment district. The design phase is being handled by Monnig Development, Inc, and is near completion. It is recom- mended that the Mayor and Common Council authorize the Director of Public Works/City Engineer to proceed with the formation of an assessment district. 2. Bailey Creek Storm Drain and Debris Basin: The estimated cost of construction from Walnut north to the upstream terminus is $1,300,000*. The State Department of Water Resources has committed to installing a trapezoidal 12/12/88 2 concrete-lined storm drain from the center line of Ohio street to an area north of Verdemont Drive. The best location for the debris basin is north of state owned property. As such, the state is unwilling to incur this expense without further discussion. The Director of Public Works recommends that the state put in the debris basin. Staff is optimistic about the State financing the construction of the debris basin. Monnig Development, Inc., will complete the section of the channel from Walnut Avenue north to the center line of Ohio Avenue (this section of the channel must be completed prior to the. State commencing work on the section north of Ohio). Unless the City contemplates financing the debris basin, no financial assistance is required. Considerable coordination and consultation is required between the Water, Planning and Public Works Departments and State Department of Water Resources for the efficient completion of this project. A good foundation for these consultations already exists. 3. Chestnut Avenue Storm Drain and Debris Basin: The esti- mated cost of construction from Cable Creek to Ohio Avenue is $1,370,000*. The recommended method of financing is through the formation of an assessment district in the Chestnut storm drain benefit area. The Planning Department advises that there are 109 existing lots with 1,721 dwelling units allowed under the RS designation and 107 under Hillside Management. This gives a total of 1,937 (109 existing, 1,828 new) which could be assessed annually for retiring the bonded indebtedness. (Hillside Management has been calculated at one (1) unit per acre and RS has been calculated at 2.98 units per gross acre.) 4. Traffic Signal at Palm Avenue and Kendall: The estimated cost of construction is $120,000*. The need for this improvement has not been established through normal traffic studies. As such, Caltrans will not pay mainten- ance costs once the signal is constructed. Moreover, the City has not collected fees for this particular improve- ment, which is important inasmuch as the recommended method of financing is through the formation of an assessment district in conjunction with the Palm Avenue box culvert. As with the box culvert, it is recommended that all property owners within the target area be assessed equally the engineering and construction costs of the traffic signal. Monnig Development has substantially completed the design phase of this improvement. 5. Full-width Street Improvements on Palm Avenue from Kendall to Ohio; Irvington Avenue from Chestnut to Pine; Belmont Street from Chestnut to Pine; and Pine Avenue from Belmont to Ohio: It is recommended that the street improvements on Palm, Irvington and Belmont be a standard condition of development for developers/property owners possessing land 12/12/88 3 in the affected areas. Virtually all of the proposed improvements involve, as yet, undeveloped land. The proposed improvements should be a normal requirement of development. 6. Ancillary Improvements: These improvements will be constructed as a result of development, the Department of Water Resources after bay project and cooperation between the Water and Community Development Departments. With the exception of the improvements on the east side of Pine Avenue from Belmont to Ohio, all improvements will be constructed at no cost to the City. street Improvements: a) Garfield street from Palm to Olive and Huntington street from Verdemont to Garfield to be financed and constructed by Monnig Development, Inc. b) The east side of Palm Avenue from Ohio to Verdemont to be financed and constructed by Monnig Development, Inc. c) The north side of Ohio street from Olive to Pine to be financed and constructed by the Department of Water Resources. d) The east side of Pine Avenue from Belmont to Ohio. The Water Department has agreed to finance the construction of curb, gutter and sidewalk on Pine from Belmont to Redwood. In addition, the Director of Community Development has agreed to recommend to the Mayor and Common Council CDBG funding for the construction of curb, gutter and sidewalk on Pine from 150 feet north of Redwood to Ohio. The Community Development portion of the construction cost is estimated by the Director of Public Services to be $9,285. This project is to be constructed by an outside contractor. e) The extension of Palm Avenue north and northeast to provide access to private property owners, to be financed and constructed by the State Department of Water Resources. Drainage: a) As a result of the after bay construction by the State Department of Water Resources, some 6.5 million cubic yards of dirt must be moved south of the proposed after bay. Water will drain to Ohio Street, requiring the construction of storm drain on Ohio Street from Olive to Pine and south to the Bailey Creek storm drain. This improvement will be financed and constructed by the Department of Water Resources. 12/12/88 4 General Comments Although not noted elsewhere in this 'report, the financing of the subject improvements presumes that where the City has collected fees for affected improvements, the amounts col- lected will be pledged to the engineering and construction of said improvements. This would involve the fees collected for the Palm Avenue box culvert, the Chestnut and Bailey Creek storm drains and the Pine Avenue extension. Environmental review of the subject improvements would be conducted concurrent with the design phase of the assessment district formation process. It is assumed that the vacation of Chestnut Avenue would also occur during this time period. I recommend adoption of the form motion. ~~~'H~~~n1 Director of Community Development KJH/lab/2064 *AII construction cost estimates taken from City of San Bernardino Capital Improvement Plan (CIP). 12/12/88 5