City Council Agenda
|
Memo to: |
Manteca City Council |
|
|
|
|
From: |
Kevin Jorgensen II, Director of Engineering/City Engineer |
|
|
|
|
Prepared by: |
Lauren Silva, Associate Engineer |
|
|
|
|
Date: |
June 17, 2025 |
|
|
|
|
Subject: |
S. Main Street Widening and Improvements Project - Area of Benefit, Improvement Agreement and City Funding Contribution |
Recommendation:
title
Conduct a Public Hearing for the S. Main Street Widening and Improvements Area of Benefit formation and adopt a resolution approving the Engineer’s Report for the S. Main Street Widening and Improvements Area of Benefit, forming the S. Main Street Widening and Improvements Area of Benefit District; approving the Improvement Agreement for the Marketplace @ Main (Offsite) Improvements; approving the use of Development Agreement fees in the amount of $1,017,691.00 and a contingency not-to-exceed $101,769.10 (10%), for a total amount of $1,119,460.10 to fund the unfunded portion of the Marketplace @ Main (Offsite) Improvements; authorizing the City Manager or designee to execute all associated documents and take all appropriate actions necessary to carry out the purpose and intent of this resolution.
body
Background:
In accordance with the City’s adopted Transportation Public Facilities Implementation Plan (P.F.I.P.) the S. Main Street corridor between State Highway 120 (SR120) and Woodward Avenue will ultimately be a 6-lane multimodal road with a median. Currently, this corridor is primarily a two-lane roadway with no sidewalk, curb or gutter.
Roadways are normally widened and improved as projects develop on the parcels that front the roadway. Because the properties adjacent to the 2-lane portion of the S. Main Street corridor are undeveloped, there is a “bottle neck” in the roadway system. The unimproved 2-lane portion of the corridor is bounded by the following properties.
- 1437 and 1533 S. Main Street on the west side, north of Atherton Drive (Aretakis),
- 1601 and 1669 S. Main Street on the west side, south of Atherton Drive (Marketplace at Main),
- 1574 and 1636 S. Main Street on the east side, south of Atherton Drive (SOMA Apartments/Brocchini),
- 1482 and 1532 S. Main Street on the eastside, north of Atherton Drive (Brocchini), and
- 144, 292, 301, 475 and 490 E. Quintal Road on the east side, north and east of Brocchini (QMC Manteca).
To ensure S. Main Street is widened on both sides and improved to 6 lanes most expeditiously, City staff has placed a Condition of Approval on the Marketplace at Main, SOMA Apartments and QMC Manteca projects requiring the respective developers to acquire right-of-way to widen S. Main Street and install improvements from the southern extent of the Marketplace at Main project up to the SR120 eastbound ramps, including widening of the eastbound SR120 on-ramp to add a dedicated right turn lane. Per the respective projects’ conditions, the entire S. Main Street Widening and Improvement Project must be complete prior to the first final inspection of a building permit for any of the adjacent development projects. The Aretakis property and the Brocchini property at 1482 S. Main Street will also receive this condition if a project is initiated on those properties before the S. Main Street improvements are constructed. The Brocchini property at 1532 S. Main Street has an existing residence on it and is unlikely to be included in a development in the near future.
By placing the same condition on all projects, the full length of the corridor will be widened and improved as a single project. This will be the least disruptive to the public, as S. Main Street will only be impacted a single time with the construction work. Additionally, the full length of the corridor will be improved with the first project that develops instead of the corridor being piecemealed together as each parcel develops.
The Marketplace at Main project is a shopping center that was conditionally approved by the Planning Commission on June 1, 2023. California Gold Development Corporation (CalGold), the developer of the Marketplace at Main project, wishes to begin construction of the shopping center. In accordance with the project’s Conditions of Approval, CalGold will acquire right-of-way and construct improvements to improve the 2-lane portion of the S. Main Street corridor between SR120 and Woodward Avenue to its ultimate 6-lane configuration.
Project Funding
P.F.I.P. Funded Improvements:
In accordance with the P.F.I.P, the median including the landscape, the two inside lanes on each side of the median and the turn lanes are paid for by the P.F.I.P. program. Additionally, anticipating that the Brocchini property at 1532 S. Main Street would not be included in a development since there is an existing, occupied home on the property, the frontage improvements for that property including the roadway paving, sidewalk, curb and gutter, joint trench and dry utility work are paid for by the P.F.I.P.
Privately Funded Improvements:
Each property with frontage on S. Main Street and the QMC Manteca project, which is conditioned to install improvements in S. Main Street, is responsible for the non-P.F.I.P. roadway, frontage and joint trench improvements along their own S. Main Street frontage. All properties are equally responsible for the improvements to the SR120 eastbound on-ramp improvements, except for 1532 S. Main Street which is deemed undevelopable due to the single-family residence that is currently located on it.
CalGold was able to enter into agreements with QMC Manteca and Brocchini, as the owner of the SOMA Apartments property and 1482 S. Main Street, to cover the non-P.F.I.P. improvements that are their responsibilities to fund. However, CalGold was unable to secure an agreement with the owners of the Aretakis property for the cost of their non-P.F.I.P. improvements, the effective cost/value for their frontage right-of-way, nor their share of the SR120 on-ramp improvements.
Area of Benefit & City Funding
To ensure the feasibility of the project and to ensure that all the improvements are constructed concurrently as intended, City staff proposes the City Council approve the use of previously collected Development Agreement Fees to finance the costs that are the responsibility of the Aretakis property. The City will be reimbursed these monies through the S. Main Street Widening and Improvements Area of Benefit when the Aretakis property develops in the future.
NorthStar Engineering, who developed the plans for the S. Main Street Widening and Improvements, has submitted the Engineer’s Report for the Area of Benefit which identifies each property’s share of the total project cost. City staff reviewed the initial draft of the report and agreed with its cost assignment methodology. At the May 6, 2025, City Council meeting, the report was scheduled for Public Hearing no sooner than four weeks from that date.
Since the initial presentation of the report at the May 6, 2025, City Council meeting, the predominant change was an update of the Engineer’s Estimate unit costs from the initial report to costs based on the Contractor’s Bid, in accordance with the City’s Area of Benefit Establishment Policy. Based on the Contractor’s Bid, the total sum of the Aretakis improvements is $721,696.00.
The amount above also includes the Aretakis property frontage improvements along W. Atherton Drive that CalGold is required to install, and therefore eligible for inclusion in the Area of Benefit.
In addition to the cost of the construction of the improvements, CalGold had to pay Aretakis for the right-of-way needed to widen S. Main Street along the frontage of the Aretakis property and the “soft” costs that Aretakis would’ve had to pay if they constructed the project themselves. The cost of the right-of-way is $132,820.00. The “soft” costs total is $163,176.00 and includes design engineering, construction staking, City of Manteca Plan Check and Construction Inspection Fees, construction bonding and Construction Management and Administration. These amounts will be included in the City funding for the project which will be paid to CalGold and will be included in the Area of Benefit for Aretakis to repay to the City.
City staff is also requesting a ten percent (10%) contingency for the project funding to cover any unforeseen quantity changes, change orders and/or scope alterations without needing to bring the item back before City Council. Project overages in excess of the 10% will be brought back to City Council for approval and will be included in the amount that Aretakis will have to reimburse to the City.
The total funding request from the Development Agreement Fees is $1,119,460.10.
Improvement Agreement
As previously mentioned, on June 15, 2023, the Planning Commission conditionally approved the Marketplace at Main Shopping Center project. A Condition of Approval of the project is improvement of the S. Main Street corridor from the eastbound SR120 onramp, including the addition of a right turn lane to said onramp, southerly to approximately 600’ south of the S. Main Street/Atherton Drive intersection, in accordance with the City’s P.F.I.P.
At this time CalGold is seeking to enter into an Improvement Agreement to construct the S. Main Street improvements detailed above. CalGold has worked with the City to complete the agreement and has worked with the adjacent property owners to have the necessary right-of-way dedicated to the City. Prior to the start of work, the City will be in receipt of the required bonds.
The Improvement Agreement includes the P.F.I.P. reimbursements, as well as the provision for the City to use City funds to cover the shortage in the project funding for the Aretakis expenses. Per Schedule B of the Improvement Agreement both the P.F.I.P and the shortfall reimbursements will be made quarterly based on submittal of documentation from CalGold demonstrating what improvements were installed in the previous quarter.
Fiscal Impact:
Staff recommends the City Council approve the use of previously collected Development Agreement fees to cover the project’s funding shortfall of $1,017,691.00 and a contingency of $101,769.10 (10%) for a total of $1,119,460.10.
There is sufficient fund balance in Development Mitigation (Fund 250) in Development Agreement Fees for the requested total amount of $1,119,460.10.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - The S. Main Street Widening and Improvements Area of Benefit Engineer’s Report
3. Attachment 3 - Marketplace @ Main (Offsite) Improvement Agreement
4. Attachment 4 - Location Map