8I Consent Calendar 2019 0122 - Laserfiche WebLink

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File Number: 18-650 Legal Analysis The City Attorney reviewed the Crossing Agreement and approves the document as to form. Fiscal Impacts The Crossing Agreement with Union Pacific obligates the City to pay $381,506 for easements and rail improvements, subject to adjustment for actual costs once work is complete. This amount includes $1,700 for easements (or $60.71 per square foot) plus $379,806 in improvement costs. To fund the City’s obligation under the Crossing Agreement, the City will rely on funds deposited into an escrow account by SLTC where the Development Fee for Street Improvements (DFSI) for Phases 1 and 2 have been paid. The funds are governed by an Escrow Agreement between the City and SLTC dated February 9, 2017, as amended on August 7, 2018. The current escrow account balance is $1,336,932.50 not including accrued interest. In addition to paying Union Pacific for its costs, the escrow agreement will also be used to disburse fee credits for eligible street improvements performed by SLTC. The fee credit payment will be in conformance with San Leandro Municipal Code Section 7-11-125 which provides: “A credit may be given for street construction costs where street widening is required in excess of fourteen (14) feet. The credit shall be equal to the standard qualities and cost, as determined in the sole and absolute discretion of the City Engineer, to construct street improvements in excess of fourteen (14) feet.” Escrow account disbursements are expected as follows: Current escrow account balance (not including accrued interest):$1,336,932.50 Previous Agreement with Union Pacific for Alvarado Street:<$589,460.00> Amount not eligible for fee credits (I-880/Marina Fee):<$368,659.50> Agreement with Union Pacific for Davis Street Crossing:<$381,506.00> Escrow Account balance (eligible for fee credits):<$2,693.00> Since the escrow account will have a negative balance according to these expected disbursements, SLTC will be responsible for funding any shortfall. Staff believes that the amounts indicated in the two Union Pacific agreements (previous Alvarado Street and current Davis Street) are conservative estimates. Since Union Pacific will invoice their work based on actual costs, it is expected that there will be no shortfall. Budget Authority No City funds will be expended to pay for rail crossing improvements governed by the Crossing Agreement with Union Pacific. Instead, funds will be disbursed from an account governed by the Escrow Agreement between the City and SLTC. Any funding shortfall will be paid by SLTC. Page 4 City of San Leandro Printed on 1/17/2019