Report Prepared by: Joe Cardoso, P.L.S., City Surveyor, Engineering Department
Title
SUBJECT: Approval of Public Facilities Impact Fee Credit/Reimbursement Agreement with Stonefield Home, Inc. for improvements on M Street and M Street Circle
REPORT IN BRIEF
Considers approving Reimbursement of Public Facilities and Impact Fees (PFFP) to Stonefield Home, Inc. in the amount of $114,125.00 for the cost of restriping and minor street modifications to M Street and M Street Circle to complete the one-way direction of M Street Circle.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Public Facilities Impact Fee Credit/Reimbursement Agreement with Stonefield Home, LLC for the work of restriping and minor street modifications to M Street and M Street Circle; and,
B. Approving a supplemental appropriation from the unreserved, unencumbered fund balance in Fund 3505 Facilities-Roadways Developer Fees in the amount not to exceed $114,125.00, transferring to Fund 5005-Streets and Signals CIP, and appropriating the same in Fund 5005, Project CP270048; and,
C. Authorizing the Finance Officer to make the necessary budget adjustments; and,
D. Authorizing the City Manager to execute all necessary documents.
Body
ALTERNATIVES
1. Approve the request as recommended by staff; or,
2. Deny the request; or,
3. Approve, subject to modifications as conditioned by Council; or,
4. Refer back to staff for reconsideration of specific items (specific items to be addressed in City Council motion); or,
5. Continue to a future City Council meeting (date and time to be specified in City Council motion).
AUTHORITY
Chapter 17.62 of the Merced Municipal Code and Policy A32 (Attachment 1) of the City Administrative Policy and Procedures deal with the Public Facility Impact Fee program including eligibility for credit or reimbursement.
Merced Municipal Code Section 17.62.060 - Developer construction of facilities:
“Except as may otherwise be provided by development agreement, whenever a developer is required to construct a public facility described in the plan, which facility is determined by the city to have supplemental size, length or capacity over that needed for the impacts of that development, and when such construction is necessary to ensure efficient and timely construction of the facilities network, a reimbursement agreement with the developer and a credit against the fees, which would otherwise be charged pursuant to this chapter on the development project, shall be offered. The reimbursement amount shall not include the portion of the improvement needed to provide services or mitigate the need for the facility or the burdens created by the new development. The timing and amount of the reimbursement or credit shall be determined in accordance with the administrative guidelines adopted pursuant to Section 17.62.080 <https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT17BUCO_CH17.62PUFAIMFE_17.62.080ADGU>, and shall in no event be owed until sufficient public facilities impact fees have been collected for such purpose.”
CITY COUNCIL PRIORITIES
As provided for in the 2026-27 Adopted Budget
DISCUSSION
The developer (Stonefield Home, Inc.) has an approved Tentative Subdivision Map #1330 - Bellevue Ranch West, Village 18-22 generally located at the southwest corner of M Street and Bellevue Road, within Planned Development (P-D) #42, with a General Plan Designation of Low to Medium Density Residential.
The developer is responsible to install public improvements on the west side of M Street and M Street Circle as a condition of approval of their subdivision. This includes constructing the roadway, installing streetlights, sidewalks, curb & gutter, sewer mains, watermains, storm drains and striping the roadway. It doesn’t include any public improvement on the east side of M Street Circle.
To accommodate new and existing growth, it was necessary to make M Street Circle a one-way road. This would add the framework for current and future development as it would a safety component requiring traffic to flow in one direction around the existing transit hub and the future home of Fire Station 56 located on the westerly portion of M Street Circle.
The current configuration of M Street Circle is constructed as a two-way street on the east side of M Street Circle with multiple stop signs and crosswalks at the intersections of M Street and Mandeville Lane and a uncontrolled crosswalk on Bancroft Drive. The new layout will remove all the stop signs on M Street Circle and add pedestrian access points at M Street, Mandeville Lane, and Stephanie Drive. This would add a safety component for pedestrian and vehicle traffic that is currently not existing.
The Developer has agreed to restripe the easterly portion of M Street Circle (City’s portion) and modify the street to accommodate the new one-way street (Attachment #3). This includes removing existing striping and signage, adding concrete channelizers, crosswalks, signage, and bike lanes.
Staff has determined the restriping of M Street Circle does meet the goal of the Public Facilities Financing Plan by expanding infrastructure improvements to accommodate new and existing growth for current and future residents.
A reimbursable agreement (Attachment #2) has been signed by Stonefield Home, LLC, outlining the scope of work and what is reimbursable.
The cost for this additional work is $114,125.00 and is eligible for reimbursable pursuant to Chapter 17.62 of the Merced Municipal Code and Administrative Policy and Procedure A-32. The reimbursable amount is $114,125.00 due to the developer in fee credits or cash reimbursement.
IMPACT ON CITY RESOURCES
A supplemental appropriation from the unreserved, unencumbered fund balance in the amount not to exceed $114,125.00 from PFFP Facilities Roadways or Facilities Transportation Funds, transferring to Fund 5005-Street and Signal CIP, and appropriating in Fund 5005, Project CP270048 is needed to reimburse the developer for the striping and minor street modifications to M Street and M Street Circle.
This item will require five affirmative votes for approval.
ATTACHMENTS
1. Administrative Policy A32
2. Public Facility Impact Fee Credit/Reimbursement Agreement
3. Construction Plans