R 1866
Yb Rm)LUI1CN ID. 1866
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A RESOLUflOO OF TIlE ClTI (I)lN:;IL OF TIlE
CI TI OF ARROYO GRAl-IDE SUPERaIDINJ RESOLUl'ICN
ro. 1660 AND !il1ENDINJ RESOLUfICN m. 1006
RIXWIDINJ /IrI'lENDINJ ESTABLISHED OJARGES Fill
IRA1NtGE S1UJY MAP DESICNA1ED "ARROYO GtANDE
mAINtGE .AREA m. 1, HAI..CY(N ROAD WEST 10
crIT LIMI'IS"; .AND SPECIFICALLY AlIRESSINJ
RESOLUfICN OF mAINi'GE a:::NCEtNS IN
"IDm 3 OF ARROl'O GRANDE mAINXE .AREA ro. 1"
WHEREAS, there exists certain drainage problems wi thin that area I
cons idered in a drainage study and map to be known as !tArroyo Grande Drainage Area I
No.1", adopted August 22,1972, for that area generally westerly of North and South I
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Halcyon Road within the Ci ty limi ts as prepared by the City of Arroyo Grande Staff
lTleIrbers; and
WHEREAS, wi thin the adopted drainage report, the mal;) included divided the
drainage study into 5 individual drainage zones which were subsequently redivided
into addi tional zones with various number and letter designations shown on said
map of the area as \Yell as its amendments; and
WHEREAS, the complexity and cost of implementing the approved JEAINAGE
REroRTcaused the iffil?lement ing of drainage solutions to be on a piecemeal basis; and
WHEREAS, the amount of drainage runoff generated by the development of
I I;)rivate property is in direct relation to the percentage of the lot coverage as
permitted by applicable zoning; and
VllEr-EAS, drainage zone 3 is one of the drainage zones wi thin the boundary of
the adol;)ted drainage plan; and
\\HEREAS, certain ownerships wi thin zone 3 remain partially or wholly
undeveloped; and
WHEREAS, private developments have occurred within zone 3, and interim
drainage ponds and permanent drainage structures have been constructed; and
\~, certain parcels of land within zone 3 have been set aside by
developers and approved by City COuncil action for the purpose of storing storm
water only; and
VtHEREAS , there are still major drainage structures remaining to be
constructed within zone 3 to complete the implementation of the adopted drainage
plan; and
\1l1EREAS, these certain parcels of land within zone 3 set aside for storing
storm \~ter can only be released by COuncil action when drainage facilities are
available to receive the stored storm water; and
WHEREAS, drainage zone 3 drainage requirements are unique, but runoff
factors as to improvement types are the same as Drainage Area No.1; and
m'IEREAS. Gar Bar Ltd., (herein after referred to as "Gar Bar") owner of
vnC/1,nt property adjacent to find easterly of Elm Street and lying 400 feet south of
Farroll Road (set forth in Ti tle report by First ,/!merican Ti tie Company preliminary
ti tl..! L'cpor t SID 8330775 0:::) as a condi t ion to approval of deve loprent of its vacant
property and to protect the safety, heal th, prol;)erty and welfare of the public, has
been required to construct the Farroll Road drainage faci Ii ty, at an approxirmte
cos t of $250,000, and approxirmtely located in Farroll Road between Elm Street and a
proposed westerly terminus in the vicinity of Golden West Place; and , J
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ViHERElIS, the drainage facility benefits all properties lying within '-J~-
Drninuge zone 3, and to be fair and equi table, all properties wi thin the zone should
share the expense of the drainage facility; and
\\HEREAS, reinbursement to Gar Bar for construction of a portion of the
proposed drainage structures as required by the Ci ty of Arroyo Grande is author ized
by the State Map Act, permi tted by this resolution, and can be paid for from fees
t collected by the Ci ty from the owners of the undeveloped land wi thin zone 3,
" (approximately 25.5 acres inc luding the Gar Bar land having an area of approximately
4 acres). and from the release of existing privately held parcels of land acting IlS
! pondin[; basins in zone :\ from 17 previously developed acres; ahd
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, WHEREAS. n means to develop a proceeding to reimburse Gar Bar for the
implementation of the required drainage structures is in keeping with State
statutc; and construction of the Farroll Road drainage facilities is in the best
i nteres t of the Ci ty, the future developers of vacant land, and the present proper ty
Oi~ners; and
"HEREAS, a fee of $7,000 per acre for single family development of vacant
land is found by the Ci ty Council to be a fair and equitable charge for implementing
the drainage solutions in Drainage zone 3 and is based on 1/2 the value of land set
aside fOl' existing drainage ponds in Tract 283 and 398; and
\'d1.EREAS, Gar Bar has by letter accepted the content of this resolution of
the City Counc il of the Ci ty of Arroyo Grande, as its only agreement with City of
I i ArI'OYO for reimbursement of costs incurred to construct drainage faci 11 ties which
\ \\Uuld benef it itself and other property owners in zone 3.
1..-:-
IDV, 'llIEREFC:RE, BE IT RFBOLVED BY 1HE CI'IY CDlNCIL OF TIm CI'IY OF ARIUYO
Gr.ANDE that within the Arroyo Grande Drainage No.1, the City of Arroyo Grande
es tablishes a drainage fee, and said fee being determined by the City Council to be
an amount sufficient to contribute toward that portion of the cost of acquiring and
constructing the drainage facili ties, shown in said drainage study, aUr ibutable to
new development, to be collected within the area of the above referred tornal? and
subsequent amendments exclusive of zone 3 on the following basis:
2Dm tNIT,<Un' PER. Jam
R-l $ 1,630.31
R-2 2,037,89
R-G 2,445.47
R-3 3,064.99
C or 1 4,075.78
P-D Select Zone Unit Cost Per kre in
Accordance with actual density
achieved
~ BE IT FUR'IHER RESOLVED tha t M1ether or not Gar Bar proceeds to finance and
construct necessary drainage faci Ii ties to implement the remaining major drainage
structure in Drainage zone 3 in Farroll Road, the owners of property in zone 3 as a
i condition to development or redevelopment of all vacant or underdeveloped
I properties inDrainage zone 3 shall be required to contribute their fair share of the
-' cost of the Farroll Road drainage facility; and
BE IT FURTHERRESOLVEO that the fair share of cost of the Farroll Road
drainage faci Ii ty in zone 3 be based on acreage and density of development according
to City zoning at the time of development; and
BE ITFUR1HERRESOLVED that the fair share cost to be collected as a drainage
fee in zone 3 on the vacant or underdeveloped property for construction of the
FarraH Road drainage faci Ii ties within zone 3 be es tablished by the City Council as
follows :
mm tNIT <Un' PER tDm
R-l $ 7,000
R-2 8,700
R-G 10,500
R-3 13,160
C or I 17,500
P-D Select Zone Unit Cbst Per Acre in
accordance with actual density
achieved
i BE IT FUR1HER. RESOLVED that the fee for those previously developed
1 properties in zone 3 that have set aside land for existing ponding basins be 1/2 the
-- accepted value of the highest and best use of that set aside land, those values being
$35,000 for tract 398 (Total fee for release of one R-3 lot, Golden West Homes),
$21,000 per Rl-lot and/or $63,000 for tract 283 (Total fee for release of 3 R-l10ts,
James Norman) and $52,000 for the Grand Mothers Club Mobi Ie Home Park (Total fee for
release of undivided portion of park In ponding, but zoned R-3D) assuming the Ci ty
Counci I releases that set aside land now held for ponding basins to be developed to
its highest and best use under present zoning; and
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BE ITFUR1HERRESOLVED that annually the fees shall be modi fied up or down in
conformance wi th the EngineeringNews Record Cbnstruction Cbst Index and the foetor
for the adjustment of the fees above shall be calculated and established each
January by Ci ty Counci I resolution as reconmended by the Director of Public Works,
by the following formula:
Factor = 1 + f,urrent Ind~x - Base Ind~x for July 11, 1985
Base Index for July 11, 1985
Factor = 1 + Qlrrent Index - 4219.62
4219.62
TIle ENR Index as used above does not guarantee that sufficient flmds will be
generated to construct all the drainage structures necessary. The Index
i tseH, however, does reflect actual increase in construction cost which have I
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occurred and which will apparently continue to occur.
BE IT FURll~RESOLVED that in those cases where a subdivider or other
developer has been required to construct public drainage improvements for
benefit to the general area, the cost of those structures may be credited
to\v.ard the required drainage fees. This credit shall not preclude the
developer from negotiating any additional reimbursements allowed by the
Subdivision Map Act.
BE IT FUR1HERRESOLVED that a development permit or approval for the
improvement or release of ponding lots for any property within the area of the
above referred to Arroyo Grande Drainage Area No. 1 shall not be commenced
until a payment of the appropriate dra~nage fees has been deposited with the
City of Arroyo Grande; and
BE IT FUR1HER RESOLVED that the area subject to the unit cost per acre
shall be the total gross area of the property or parcel being developed,
excepting that a credit shall be allowed for any existing, improvements and no
drainage fee ,shall be assessed to any, existing residentially improved R-l
lots; and
BE IT FUR'IHER RESOLVED that in the event Gar Bar elects to finance and
construct the Farroll Road drainage facility, then fees collected by the City
from property owners in zone 3 shall be paid to Gar Bar in a timely manner I ~
until fully reimbursed for expense beyond its initial fair share of installing I
the approved drainage structures plus financing costs as outlined below or ..~--
until the term of this stipulated reimbursement proposal expires:
PRJR:mD RRI~ 10 GAR BAR AS FHF.S ARB
([)Il,.1CIID BY 'lHE CI1Y IN 2CNE 3
Item Description Value of Item
1. Total construction cost exclusive = $250,000 (estimate only - actual
of design and construction bid figures to be used in
management calculation of actual reimburs-
able aroount)
2. Estimated Drainage Fee based on = $ 42,000 (estimate only - actual
zone 3 location, R-G zoning, gross area after surveying
and approximate gross area of multiplied by the appropriate
" acres drainage fee based on zoning at
time Building Permit is
requested or tract n~p approval
is requested)
3. First year value of principal due
Gar Dar from Drainage Fees , ,
collected in zone 3 shall be: S I
$250,000 - $42,000 = $208,000 .........
(Item 1 - Item 2) =
(estimate only)
4, To reimburse Gar Bar financing costs the principal aroount due Gar Bar
in years following the first year shall be calculated as follows:
L
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101 i...,
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'lWelve rronths after the date determined by the Ci ty Counci I by the
date the Farroll Road drainage structure is accepted by minute
rrotion for maintenance by the public and annually thereafter, the
reimbursabled pr incipal balance due to Gar Bar shall be
recalculated for the following year by multiplying the
unreimbursed balance due on said anniversary date (determined by
the City Director of Public Works) by a faclor of 1.12, It is
understood by Gar Bar and the City of ArI'oyo Grande that all
reinbursements paid to Gar Bar of drainage fees collected by the
City in zone 3 of Drainage Area No. 1 shall reduce the principal due
Gar Bar for each succeeding year's calculation of unrelmbursed
balance of principal due Gar Bar.
I I BE ITFUR1HERRESOLVED that the period over which Gar Bar shall be eligible
i i
\ for reimbursements for construction costs of the Farroll Road drainage faci li ty, if
~ Gar Sttr elects to proceed with financing and construction, shall be a period ot
fifteen (15) years after the date of this resolution is adopted regardless of the
value calculated as the unreimbursed princIpal balance due at expiration of the
fifteen (15) year period; and
BE IT FlR1HER RESOLVED that upon final payment of reimbursements whether
fully paid off or after expiration of the fifteen (15) year reimbursement period all
subsequently collected drainage fees from property developers in zone 3 shall be the
property of the City of Arroyo Grande for use determined appropriate by the City
Council for drainage facility constructIon, reconstruction, or maIntenance of
drainage facilities within Drainage Area No.1. In the event Gar Bar does not
proceed, the fees collected In zone 3 shall be retained by the City for expenditure
on drainage facilities In zone 3 as first priority and other damage facilities In
Drainage Area 1 thereafter; and
BE IT RR1HER RESOLVED that in the event that the City's legal ability to
collect drainage fees as outlined above is challenged and is stricken dO\W1, the
provisions for reimbursement to Gar Bar shall be considered null and void; and
BE IT FURlliER RESOLVED that the area known as the "Stem Annexation" is
included wi thin the Arroyo Grande Drainage Area No. 1, Halcyon Road west to theCi ty
limits", and the map of the area is hereby amended to Include the Stem Annexa I.i on (a
\ copy of which is attached and known as Exhibit A). TIle Stem area is lWiconsJdered
I to be within zone 3 of Drainage Area 1.
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BE IT RR1HERRESOLVED that in the event the Ci ty's drainage faci Ii ties, as
necessary to serve a prop<!rty proposed for development wi thin Drainage Area No.1
are not available, the developer shall provide for drainage water to the approval of
the Ci ty, and said provisions may be requirements to construct all of or a port! on of
the ultimate drainage facility deemed appropriate by the City to serve the zone ih
which the property lies. In the event the developer is required to construct less
than lhe ultimate solution to a drainage problem in a particular zone, those
additional interim irrprovements which may be necessary to mitigate local drainage
concerns must be completed as approved by the Director of Public Works.
On rrotion of Council Merrber Gallagher, seconded by Council \'v1ember Porter,
and on the following roll call vote, to wit:
AYES: Council Merrbers Gallagher and Porter and Mayor Smith,
t-DES: None,
ABSENT: <;:ounci I Merrbers Moots and Johnson,
lhe foregoing Resolution was passed and adopted this 22nd day of July, 1985.
13'r1Mu~
MAYOR
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AT1'PoST: ~~ tl. P/hH~
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I. Nancy A. Davis. City Clerk of t~e Ci~y of A~royo Grand:,
County of San Luis Obispo, State of Ca1~forn1a, do hereby cert1fy
that the foregoing Resolution No. 1866 1S a true, full ,and c?rrect
copy of said Resolution passed and adopted at a regular meet1ng
of said Council on the 22nd day of July, 1985.
, III 6' ' \
WITN8SS my hand and the Seal of the City of Arroyo r~nde
affixed this 24th day of July, 1985. ~" ~
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