SR 06:152 (3) - Laserfiche WebLink

Page 2 Memo to Mayor and City Councilmembers September 19, 2006 . Detention Basin Improvements - To be constructed in a single phase as part of the Vineyard A venue realignment. . Utility Undergrounding - Improvement to existing l2KV power lines along Vineyard Avenue. In 1999, Specific Plan infrastructure improvements were estimated at $10,397,919. The Financing Program sets forth that funding for these infrastructure improvements would come from new residential development, existing residential development based on specific infrastructure benefits, the Pleasanton Unified School District (PUSD) and the City, based on the assumption that it would acquire a site within the Specific Plan area for a community park. Prior to the start of development within the development within the Corridor, the initial per unit Specific Plan infrastructure fees were estimated at $29,551 for new residential development, a range of $4, 131 to $19,427 for exiting residential development based on the specific benefit received, $1,149,444 for the City and $3,168,359 for the PUSD. (The City's share was largely based on its share of the water facility improvements.) In general, the Financing Program is based on a fair share "pay as you go" concept based on the assumption that new development will fund all Plan Area infrastructure required for buildout. The "pay as you go" concept allows development to proceed as specified in the Specific Plan, with infrastructure constructed as development occurs generally from the west to the east end on the Plan area. As a result, the Financing Program divided the Specific Plan area into four subcategories and identified infrastructure improvements required to be completed prior to commencing development in each of these sub areas. A fifth sub area covering the entire Specific Plan area was also created for area wide improvements including the water storage tank. The specific infrastructure improvements for each sub area are outlined in the Financing Program. The Financing Program assumed that front end financing of improvements by some developers could exceed their financial fair share and that they would be reimbursed from other developers as subsequent development occurs. Further, the Financing Program assumed that the developer related infrastructure fees would be adjusted over time to reflect the cost of improvements as they were completed. As a result, earlier development would pay lower Specific Plan infrastructure fees than development occurring later. The Financing Program also assumed that development would occur in an orderly and expeditious manner that was reflective of the real estate market at the time. However, that did not occur and some infrastructure, such as the realignment of Vineyard A venue and installation of sewer lines, was financed by the City, which was not fully consistent with the four sub area concept identified in the Financing Program. As a result, the City has assumed a much larger role in financing improvements than was initially anticipated. Moreover, inflationary pressure anticipated in the Financing Program, has resulted in larger than anticipated Specific Plan fees.