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HomeMy WebLinkAbout8 Approval of a Coldstream Development Agreement with Teichert ConstructionAgenda Item #8 To: From: Date: Subject: Board of Directors Brian Wright June 03, 2020 Approval of a Coldstream Development Agreement with Teichert Construction ACTION 1. WHY THIS MATTER IS BEFORE THE BOARD Per District Code Section 7.12.030, approval by the Board of Directors is required for any development agreement where the total value of on-site improvements being installed by the applicant to be conveyed to the District for ownership, operation and maintenance exceeds $400,000. 2. HISTORY When a developer proposes to construct a new project, a development agreement is necessary when there are facilities that will be constructed by the developer and then conveyed to the District for ownership, operation and maintenance. The development agreement is essentially a contract between a developer and the District. It describes the responsibilities of each party with respect to a particular project. Separate development agreements are created for the Electric Department and the Water Department. Items addressed in a development agreement typically include: Costs and fees; Dedication of easements where necessary; Dedication of facilities constructed by the developer; Insurance; Indemnification; Project acceptance; and Warranty. The development agreement will normally reference the approved drawings for a project and the District’s construction standards. The development agreement process typically takes the following steps: 1) Initial discussions between the developer and the District regarding project feasibility; 2) Development agreement application; 3) Review and revision of project plans (this may involve multiple rounds of review & revision); 4) Preparation of development agreement; Brian Wright Michael D. Holley Water Utility Director/Assistant GM General Manager 4) Preparation of development agreement; 5) Signing of development agreement and payment of costs and fees; 6) Project construction; and 7) Project acceptance and administrative closeout. 3. NEW INFORMATION The Coldstream (PC-1) is located at the entrance to Coldstream Canyon on the west side of Truckee, south of Interstate 80 and just east of the Donner Memorial State Park. The project involves the construction of up to 300 residential units and 30,000 square feet of mixed use commercial space on land formerly utilized by A.Teichert and Son, Inc. for the purposes of harvesting aggregate materials. The Coldstream Specific Plan has been designed by Stonebridge Properties, a subsidiary of Teichert Land Co. The District has been working with Coldstream Developers on a development agreement for the construction of water utility infrastructure associated with Phase 3 of the Coldstream Specific Plan including residential and mixed use commercial space. Separate development agreements will be required for future phases of the project. The water utility infrastructure associated with this development includes necessary potable water distribution system to serve Phase 3 and the construction of an above ground steel potable water storage tank (approximately 230,000 gallon capacity) at the District's Red Mountain Tank site in order to provide adequate potable water supply and fire protection upon full build-out of the development. Construction cost for these improvements will exceed $400,000. 4. FISCAL IMPACT There is no direct fiscal impact to the District associated with this item. The developer shall be reimbursed for the actual costs for construction of the potable water storage tank through water facility fees collected by the District from parcels within the development. 5. RECOMMENDATION Approve the development agreement and authorize the General Manager to execute the agreement between Coldstream Developers, LLC and the District for the Coldstream Development, Phase 3.