AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 14-000951
MEETING DATE:	06/24/14
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	Shane Silsby (714) 667-9700
	Robyn Uptegraff (714) 667-3255

Subject: "F" Street Fee Credits Agreement D14-034 with RMV Community Development

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Consent Calendar

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact: No

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years No
	Year of Audit

Prior Board Action: 11/8/2004 #1

RECOMMENDED ACTION(S):

For Recommended Action #2 find that the subject project is Statutorily Exempt from the provisions of California Environmental Quality Act (CEQA) pursuant to Section 15273 of the CEQA Guidelines, as the establishment or modification, structuring, restructuring or approval of rates, tolls, fares, and other charges by a public agency which, for the purpose of meeting the operating expenses, including employee wage rates and fringe benefits, purchasing or leasing supplies, equipment, or materials as set forth herein.

Approve Agreement D14-034 for Grant of Fee Credits with RMV Community Development LLC, allowing credits under the Major Thoroughfare and Bridge Fee Program for the early delivery of "F" Street.

For Recommended Actions #4 through #6, find that Final EIR No. 589, previously certified by the Board of Supervisors (Board) on November 8, 2004, reflects the independent judgment of the County of Orange and satisfies the requirements of CEQA for the Irrevocable Offer to Convey (IOC) Real Property and Memorandum of Fee Credit Agreement and the approval of Grant Deed for acceptance of "F" Street alignment, which are a necessarily included element contemplated as part of the whole action.

The circumstances of the Project are substantially the same as described in EIR 589, which adequately addressed the effects of the proposed Project. No substantial changes have been made in the Project; no substantial changes have occurred in the circumstances under which the Project is being undertaken; and no new information of substantial importance to the Project, which was not known or could not have been known when the previous EIR No. 589 was adopted has become known; and no further environmental review is required.

The EIR 589 is adequate to satisfy the requirements of CEQA for the IOC Real Property and the Memorandum of Fee Credit Alignment and the approval of Grant Deed for acceptance of "F" Street alignment.

All mitigation measures are fully enforceable pursuant to CEQA (Public Resources Code) Section 21081.6(b) and have either been adopted as conditions, incorporated as part of the Project design, or included in the procedures of Project implementation.

Approve Grant Deed for acceptance of "F" Street alignment in substantially the form attached (Exhibit A) and instruct OC Public Works to return the Grant Deed to the Board for execution of Grant Deed and approval of resolution of acceptance once conditions for acceptance of "F" Street in the Fee Credit Agreement and IOC are fulfilled.

Approve IOC Real Property and Memorandum of Fee Credit Agreement in substantially the form attached (Exhibit B) and authorize the OC Public Works Director, or designee, to sign the certificate of acceptance for the IOC for recordation upon satisfactory review and acceptance of title conditions and road alignment.

Authorize OC Public Works Director, or designee, to execute any all documents necessary to effectuate the terms of the Fee Credit Agreement and IOC, including any amendments necessary upon satisfactory review and acceptance for "F" Street.

SUMMARY:

Entering into an Agreement for Grant of Fee Credits (Fee Credit Agreement) with RMV Community Development, LLC, and its associated entities (Developer) will allow the County of Orange to grant Transportation Corridor Agency (TCA) Fee Credits, as defined in the Major Thoroughfare and Bridge Fee Program for the TCA (Fee Program), to compensate Developer for right-of-way, grading, and roadway construction costs that Developer would incur for the construction of "F" Street. Provision of the fee credit has been authorized by the TCA and will allow the early delivery of "F" Street, providing needed roadway options for South County.

BACKGROUND INFORMATION:

On November 8, 2004, the Board of Supervisors (Board) adopted Resolution No. 04-291, which approved a General Plan Amendment (GPA) for the Ranch Plan Project, including an amendment of the Transportation Element’s Circulation Plan, which recognized that if the SR 241 were not extended across the Ranch Plan Project area, and future traffic from proposed development reached certain levels, there would be a need for an arterial roadway (referred to as "F" Street) linking Cow Camp Road to Oso Parkway.

The Ranch Plan Final EIR 589 also imposed Mitigation Measure 4.6-14 requiring that the Developer reach an agreement with Transportation Corridor Agency (TCA) "to address right-of-way, cost, phasing, implementation and roles, and responsibilities relating to all roadway connections to and/or crossings of the SR-241 extension within the Ranch Plan Project, and/or funding/phasing/construction of other roadways (i.e., "F" Street) that are needed in the event the extension of SR 241 does not occur."

The TCA was formed for the purpose of acquiring land, obtaining financing and constructing major thoroughfares and associated bridges, including that known as the SR 241 Tesoro Extension (TEx), which is proposed to be constructed between Oso Parkway and Cow Camp Road and which is within Planning Area 2 of the Ranch Plan. To date, TCA has not yet obtained all of the approvals required to commence construction of the TEx. TCA continues to seek the required approvals, but the timing of construction remains uncertain.

On June 12, 2014, the TCA approved an Option Agreement with Developer for an alignment for TEx. The TCA also authorized its Executive Director to confirm to the County of Orange (County) that it has authorized and is in support of the proposed Agreement for Grant of Fee Credits in accordance with the Major Thoroughfare and Bridge Fee Program. On June 13, 2014, the County received a letter from the TCA Acting Chief Executive Officer confirming this position.

In the event that the TCA exercises its rights under their Option Agreement, the County's Fee Credit Agreement will be terminated and no credits will be granted as the TCA will construct the toll road in lieu of "F" Street. If the Developer is prepared to construct "F" Street prior to the TCA exercising its Option, then the credits under the Fee Credit Agreement will be granted and the right-of-way accepted by the County as set forth in the Fee Credit Agreement. Assuming an "F" Street scenario, the connection would be built to County standards and, upon completion, the connection would be accepted into the County's highway system. In this scenario, the Fee Credit Agreement would allow the County to grant appropriate Fee Credits, as defined in the Fee Program, to compensate Developer for right-of-way, grading, and roadway construction costs that Developer would incur that are not otherwise reimbursed. All of the Fee Credits granted to Developer would be applicable towards the Development Fees that Developer is required to pay to the TCA under the Fee Program. The proposed Fee Credit Agreement also includes an Irrevocable Offer to Convey (IOC) real property to the County and Memorandum of Fee Credit Agreement necessary for the "F" Street Project. OC Public Works is requesting that the Board of Supervisors (Board) approves the IOC in substantially the form attached (Exhibit B) and authorize the OC Public Works Director, or designee, to sign the certificate of acceptance for the IOC for recordation upon satisfactory review and acceptance of title conditions and confirmation by OC Public Works of the alignment of the right-of-way.

Also attached is a draft Grant Deed (Exhibit A) from Rancho Mission Viejo, LLC and its subsidiaries for the right-of-way dedication to the County necessary for the "F" Street Project. OC Public Works is in the process of finalizing the documents for conveyance of all right-of-way and recommends that the Board approve the Grant Deed in substantially the form attached. OC Public Works will return to the Board for final approval of the Grant Deed, along with a resolution accepting the IOC upon satisfactory review and acceptance of title conditions and confirmation of the final alignment of the right-of-way. The Developer is currently working on preparation of final tract maps that will contain the final definitive alignment of the "F" Street right-of-way. Once the final tract maps are completed minor revisions to the legal descriptions attached to the Fee Credit Agreement and IOC may be necessary, as is provided for in the Fee Credit Agreement. OC Public Works is also requesting authority be delegated to the OC Public Works Director to execute and record any necessary amendments, as well as other documents necessary for implementation of the terms of the Fee Credit Agreement and IOC. Upon the County's acceptance of the right-of-way and infrastructure, "F" Street will be operated and maintained by the County.

Compliance with CEQA: The Agreement for Grant of Fee Credits is statutorily exempt from California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15273. CEQA Guidelines Section 15273 a,b,c provides for the exemption of charges by public agencies, which the public agency finds are necessary for the purpose of obtaining funds for capital projects, necessary to maintain service within the existing service areas. The Irrevocable Offer to Convey Real Property and Memorandum of Fee Credit Agreement and the approval of Grant Deed for acceptance of "F" Street alignment, are necessarily included elements of the Project considered in Final EIR No. 589, certified by the Board on November 8, 2004, which adequately addressed the effects of the proposed Project. No substantial changes have been made in the Project; no substantial changes have occurred in the circumstances under which the Project is being undertaken; and no new information of substantial importance to the Project, which was not known or could not have been known when the Final EIR No. 589 was certified has become known; therefore, no further environmental review is required.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

EXHIBIT(S):

Exhibit A - Draft Grant Deed
Exhibit B - Irrevocable Offer to Convey

ATTACHMENT(S):

Attachment A – Agreement for Grant of Fee Credits D14-034