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Home My WebLink About2002-11-12 - AGENDA REPORTS - VALENCIA BRIDGE FUNDS (2)CONSENT CALENDAR CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: DATE: November 12, 2002 SUBJECT: APPROPRIATE FUNDS FOR VALENCIA BRIDGE AND THOROUGHFARE DISTRICT REIMBURSEMENT DEPARTMENT: Transportation & Engineering Services RECOMMENDED ACTION City Council appropriate $8,226,615 to Account No. 4364-8001 from the Valencia Bridge and Thoroughfare District fund for payment to Newhall Land for reimbursement of the costs to complete public improvement projects within the District. BACKGROUND The Valencia Bridge and Thoroughfare District (District) was formed to provide funding for the construction of road improvements that are a part of the General Plan's Circulation Element and identified in the District formation document. The District includes territory within the City of Santa Clarita and the County of Los Angeles. The District was adopted and amended by the City Council on January 12, 1999 and September 28, 1999, respectively, and approved by the County Board of Supervisors on July 27, 1999. The formation documents of the District include provisions obligating the City to provide reimbursement or credit for the costs incurred to construct the District's identified improvements. Newhall Land has requested that the City reimburse the costs of constructing roadway improvements on Copperhill Drive from Newhall Ranch Road to McBean Parkway and for 75 percent of the Valencia District share of the Valencia Boulevard/Interstate 5 Interchange project within the City. The work on Copperhill Drive includes a bridge over San Francisquito Creek. This work has been completed by the developer and accepted by the City, and qualifies as District improvements. The attached letters dated July 24, 2002 and July 29, 2002 from the County to the City attests that the supporting documentation has been reviewed for the work on Copperhill Drive and that a 75 percent reimbursement is appropriate for the interchange work, and that Newhall Land is entitled to be reimbursed for these eligible District improvements. The remaining balance for the interchange work will be eligible for reimbursement after a complete review of the detailed accounting documentation. Agenda Item: �U APPROPRIATE FUNDS FOR VALENCIA BRIDGE AND THOROUGHFARE DISTRICT REIMBURSEMENT November 12, 2002 — Page 2 Newhall Land's request for reimbursement will be granted as follows: Appropriation/Payment to Newhall Land $8,226,615 Bridge & Thoroughfare Credits for Newhall Land $6,937,210 TOTAL $15,163,825 Bridge and Thoroughfare credits can be used for the payment of future Bridge and Thoroughfare fees. The current balance of the District's account is approximately $13,041,724. Should the City Council approve this reimbursement request, the Valencia Bridge and Thoroughfare District will retain a remaining balance of $4,815,109. This amount is sufficient for the anticipated future needs identified for funding via the Valencia Bridge and Thoroughfare District. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT The District has a current balance of approximately $13,041,724. The payment to Newhall Land of $8,226,615 will leave a remaining balance of $4,815,109. ATTACHMENTS County of Los Angeles letters dated July 24 and 29, 2002 Newhall Land letter dated October 24, 2002 CLN:KB:tw counci1\.a1eeimbu.ment2.dM JAMES A. NOYES, Director July 24, 2002 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803-1331 Telephone: (626) 458-5100 w Aadpw.org Mr. Robert Newman City Engineer City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355 Attention Mr. Curtis Nay Dear Mr. Newman VALENCIA BRIDGE AND MAJOR THOROUGHFARE DISTRICT REIMBURSEMENT REQUEST FOR DISTRICT PROJECTS ON COPPER HILL DRIVE ADDRESS ALL CORRESPONDENCE TO P.O. BOX 1460 ALHAMBRA. CALIFORNIA 9IS02-146" IN REPLY PLEASE REFER TO FILE: LD -4 We received a request for cash reimbursement from Newhall Land and Farrning Company (NL) for district projects completed on Copper Hill Drive. Please see enclosed NL packet. We reviewed the supporting documentation and determined that NL is entitled to an amount of $8,818,593.94 for the work completed. The enclosed chart shows a comparison of the actual project costs to the District Report estimates. On November 12, 1998, an agreement (copy enclosed) was made between NL and W-9/WLA Real Estate Limited Partnership (Legacy). Legacy reimbursed NL $514,524 for the Valencia Bridge and Major Thoroughfare (B&T) District improvements made to Copper Hill Drive with the understanding that Legacy, would in turn, receive credits in the Valencia B&T District for an equal amount when the District reimbursed NL for the improvements. Therefore, NL requested the following distribution for the Copper Hill Drive reimbursement of $8,818,593.94: Credit issued to Legacy Partners of: $ 514,524.00. Cash issued to Newhall Land of: $ 8.304.069.94 Total: $ 8,818,593.94 Mr. Robert Newman July 24, 2002 Page 2 Per Legacy, they will be using the credit received to offset their B&T fee obligations for Tract Nos. 52673-01 and 52673-02 during the building permit stage. Since those tracts are within the City of Santa Clarita, please provide confirmation to Legacy that they will receive a credit amount of $514,524.00 in the District. The confirmation should be mailed to: Legacy Partners W-9/Rye South Realty, LLC-DISS 99 Attention Mr. Bob Lumley 888 West 6th Street, 9th Floor Los Angeles, CA 90017 Furthermore, regarding the cash reimbursement, the County does not currently have adequate funds in the Valencia B&T District to reimburse NL for the total amount. Therefore, we request that your City reimburse the requested amount of $8,304,069.94 to NL from your City's Valencia B&T District Fund. If you have any questions regarding this matter, please contact Mr. Barry S. Witler of my staff at (626) 458-4351. Very truly yours, JAMES A. NOYES Director of Public Works ice\ THOMAS W. HOAGLAND Assistant Deputy Director Land Development Division JKC:jmw P:\LDPUB\Trans\Chin\CityRefundRemaining.do Enc. cc: Legacy Partners (Bob Lumley) Newhall Land Company (Barbara Butki, Barbara Fortman) NEWHALL LAND (B&T) CASH REQUEST (CHART) __._.. ALIM RA it o runvnnruFnRE DISTRICT -COPPER HILL DRIVE Copper Hill Drive bridge over San Francisquit0 Creek (Phases II and III 5 only: from 2 to 6 lanes. 194A X $1,334,404.53 $ 1,816,083.00 $ (481,678.47) Total: $8,818,593.94 b 0,413a,000.w � � ,�� " Link 65, 66, 66A and 194 completed under one contract. No cost breakdown of each link. Chart Prepared By: John Chin Los Angeles County Department Department of Public works NLCityRegCopperHill 07/15/2002 COPPER HILL DRf)/EPRO� �° a e s ct epoit b 65 X u * $ 2,193,603.00 - ( ) N/A Ranch Road to Decoro Drive 1 Newhall Decoro Drive to westerly boundary of * N/A 66 X $ 3,294,446.00 2 Tesoro Westerly to easterly boundary of * N/A 66A X $ 673,051.00 3 Tesorro I Easterly boundary of tesoro to * N/A McBean Parkway 194 X $ 492,483.00 4 O,h4n}nl• R7dRd189.41 $ 6.653.583.00 $ 830,606.41 Copper Hill Drive bridge over San Francisquit0 Creek (Phases II and III 5 only: from 2 to 6 lanes. 194A X $1,334,404.53 $ 1,816,083.00 $ (481,678.47) Total: $8,818,593.94 b 0,413a,000.w � � ,�� " Link 65, 66, 66A and 194 completed under one contract. No cost breakdown of each link. Chart Prepared By: John Chin Los Angeles County Department Department of Public works NLCityRegCopperHill 07/15/2002 JAMES A. NOYES, Director July 29, 2002 COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS 900 SOUTH FREMONT AVENUE ALHAMBRA, CALIFORNIA 91803-1331 Telephone: (626) 458-5100 www.ladpw.org Mr. Robert Newman City Engineer City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355 Attention Mr. Curtis Nay Dear Mr. Newman ADDRESS ALL CORRESPONDENCE -'.� P.O. BOX 1460 ALHAMBRA, CALIFORNIA 91802-141 IN REPLY PLEASE REFER TO FILE. LD -4 VALENCIA BRIDGE AND MAJOR THOROUGHFARE DISTRICT REIMBURSEMENT REQUEST FOR THE VALENCIA BOULEVARD/1-5 INTERSTATE INTERCHANGE IMPROVEMENT PROJECT We received a cash request from Newhall Land and Farming Company (NL) for work completed on the Valencia Boulevard/1-5 Interstate Interchange improvement project. This District is responsible for 61 percent share of the total cost of this project with the unadopted Magic Mountain (Westside) District having a responsible share of 39 percent. Please see enclosed NL packet. To remove some of the financial impact from NL and allow us time to evaluate their documentation, the County had agreed to reimburse 75 percent of the estimated district project cost upon receiving the certification of project completion. The remaining balance will be reimbursed after a complete review of their detailed accounting documentation. NL is entitled to an amount of $6,859,755 for the work completed based on 75 percent of the estimated project share cost of $9,146,340. Currently, the County does not have adequate funds in the Valencia Bridge and Major Thoroughfare District to reimburse NL for the requested amount. Therefore, we request that your City reimburse the aforementioned amount to NL from your City's Valencia Bridge and Major Thoroughfare District Fund. Mr. Robert Newman July 29, 2002 Page 2 If you have any questions regarding this matter, please contact Mr. Barry S. Witler of my staff at (626) 458-4351. Very truly yours, JAMES A. NOYES Director of Public Works THOMAS W. HOA ND Assistant Deputy Director Land Development Division JKC:jmw P:\LDPU B\Trans\Chin\CltyRefundValencia-IS.doc Enc. cc: Newhall Land Company (Barbara Butki, Barbara Fortman) October 24, 2002 Mr. Robert Newman Director of Transportation and Engineering Services City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355-2196 SUB: NEWHALL RANCH ROAD FUNDING MATCH Dear Robert: Pursuant to our phone conversation earlier today regarding the local match for the MTA funding grant for Newhall Ranch Road from Rye to I-5, Newhall Land agrees that if the Valencia Bridge and Thoroughfare District (District) does not have adequate cash to cover the required local match, Newhall will pay future District fees in cash (in lieu of using credits to offset the fees) until such time as the local match is secured. Newhall looks forward to working with the City to develop a final budget for the Newhall Ranch Road project and closely monitor the District's cash balance to ensure that the match is in place when needed. If you'd like to discuss this further, please feel free to call. Sincerely, %�NLIi Ross Pistone Vice President - Operations THE NEWHALL LAND AND FARMING COMPANY, 23823 VALENCIA BOULEVARD, VALENCIA, CA 91 355 -21 94 TEL 661.255.4000 FAx 661.255.3960 WEBSITE: www.newhall.com