Eastern Municipal Water District
California

Action/Info Item
3813

Approve and Authorize Adjusted Special Benefit Area Fee for the Paradise Meadows Reservoir

Information

Department:Development ServicesSponsors:
Category:Action/Info ItemMeeting Workflows:Board Planning Committee Workflow

Background

In November 2015, the Board authorized execution of a Participation Agreement for the development of the five million gallon Paradise Meadows Reservoir (formerly referred to as Canyon Cove Reservoir) and the formation of an associated Special Benefit Assessment Area (SBA).  The Agreement (Exhibit A) was executed by Brookfield Residential under the limited partnerships of Sutter Mitland-Audie Murphy Ranch North (AMRN), Riverside Mitland-Audie Murphy Ranch South (AMRS), and EMWD.

 

The Agreement identified 1,583 lots that would benefit from the Paradise Meadows Reservoir and thus contribute to the developer’s portion of the cost of the reservoir. In 2016, the estimated value of the reservoir was $8,088,000; AMR’s share of the reservoir was estimated at $5,257,000, while EMWD’s oversizing participation for regional benefit was estimated at $2,831,000.  AMR made its initial contribution by providing the land for the reservoir, design of facilities, and site development/grading; which was estimated at an aggregate value of $2,335,000. Thus, EMWD agreed to contribute the remaining balance amount, estimated at $2,922,000, subject to reimbursement from Special Benefit Assessment (SBA) fee payments.

 

Reimbursement of the EMWD and AMR contributions occurs as the residential lots are developed and are connected to the potable water system.  Based upon the 2016 estimates, the original SBA fee was calculated as $3,321 per unit for 1,583 participating lots, as depicted in Exhibit A.

 

Construction of the reservoir began in July 2016, and was completed in December 2017.  An independent audit of actual expenditures have confirmed the total cost of the reservoir and site development to be $5,871,280. Based upon this amount, EMWD’s oversizing contribution was proportionally reduced to $2,054,948, and AMR’s cost share was proportionally reduced to $3,816,332 based upon agreement-specific cost participation terms and provisions.  The actual AMR cost share amount of $3,816,332 was further proportioned, with AMR’s contribution of the reservoir site development in the amount of $1,806,829, and EMWD’s additional contribution in the amount of $2,009,504, as depicted by Exhibit B.  The contributions by both AMR and EMWD are subject to reimbursement from SBA fee credits and/or payments.

 

As of February 20, 2019, a total of $657,540 has been applied toward the reimbursement amount as an SBA fee credit for 198 lots of AMRS, and a total of $689,079 has been applied toward the reimbursement amount from SBA fee payments from 195 lots of AMRN.  This leaves an indexed reimbursement balance in the amount of $2,540,841 to be applied to the remaining 1,190 lots of AMRN, with a resulting reconciled SBA fee of $2,135 per lot, as depicted by Exhibit B.

Financial/Strat Plan/Enviro

FINANCIAL IMPACT:

EMWD’s financial participation in the Paradise Meadows Reservoir was financed from the General District Restricted Water Facilities Expansion Fund, and will be reimbursed over time through collection of applicable SBA fee payments.

 

STRATEGIC PLANNING GOAL/OBJECTIVE:

Water Supply and System Redundancy: Develop adaptable buffer supplies, water storage and delivery system improvements to manage uncertain supply delivery conditions and emergency outages.

 

ENVIRONMENTAL IMPACT:

This item is not a project as defined in the California Environmental Quality Act Code of Regulations, Title 14, Chapter 3, Section 15378.

Recommendation

Approve and authorize the adjusted SBA Fee for the Paradise Meadows Reservoir consistent with the reconciled project costs and the provisions of the Participation Agreement dated January 7, 2016.

Meeting History

Mar 14, 2019 3:30 PM  Board Planning Committee Regular Meeting
draft Draft
RESULT:RECOMMENDED FOR APPROVAL
Mar 20, 2019 9:00 AM  Board of Directors Regular Meeting
draft Draft

Mr. Wallace provided a presentation on this item

RESULT:APPROVED [3 TO 0]
MOVER:Philip E. Paule, Vice President
SECONDER:David J. Slawson, Board Member
YES:Ronald W. Sullivan, Philip E. Paule, David J. Slawson
ABSENT:Stephen J. Corona, Randy A. Record