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RESOLUTION NO. R-1213-108: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, DECLARING A RECOUPMENT PROJECT FOR COSTS ASSOCIATED WITH IMPROVEMENTS ON CEDAR LANE ROAD, AN ARTERIAL ROAD, FROM 400 FEET WEST OF 12TH AVENUE S.E. TO 1/2 MILE EAST OF 24TH AVENUE S.E.
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BACKGROUND: On February 8, 2011, City Council approved engineering services Contract No. K-1011-135 with Cardinal Engineering Inc. for the design of the Cedar Lane Road Widening Project. The Cedar Lane Road Widening Project involves the construction of a new four-lane roadway that will include five foot bike lines on each side of the road. The project will also include improvements to 12th Avenue SE and 24th Avenue SE as they approach Cedar Lane Road, improve the BNSF railroad crossing and resurface U.S. Highway 77 on the north and south sides of Cedar Lane Road. Signalization of the 12th Avenue SE and Cedar Lane Road intersection will also help relieve traffic congestion at peak travel times during the day.
On November 22, 2011, the Norman City Council approved programming Resolution No. R-1112-60 requesting federal funds to widen Cedar Lane Road. The resolution states the City’s commitment to adhere to the terms and conditions of a federally funded project. Through the Association of Central Oklahoma Governments (ACOG), the Oklahoma Department of Transportation (ODOT) agrees to provide 80% of the project funding and to administer the construction with a 20% matching share from the City of Norman. In order to receive federal funding, the City of Norman was required to enter into an agreement with ODOT to complete the design, acquire all necessary rights-of-way and relocate utilities and encroachments, at the City’s cost. This agreement was adopted by resolution.
On August 28, 2012, the citizens of Norman voted in favor of a Bond Issue to finance the local share of eight transportation/storm water improvement projects. Please see Attachment A for the list of the bond projects with their estimated cost. Attachment B is a map of the Bond Projects. One of the eight 2012 bond projects is the Cedar Lane Road Widening Project. As indicated in Attachment A the cost of the Cedar Lane Road Widening Project is projected to be approximately $9.8 million. The City’s share, after projected Federal funds are acquired, is estimated to be approximately $3.6 million.
Currently, staff, along with Cardinal Engineering and ODOT, has been able to fulfill the requirements necessary to complete the environmental study and begin the process of right-of-way acquisition. The right of way acquisition costs included in the City’s share of this project associated with undeveloped property is currently estimated to be approximately $800,000. Under City development regulations, improvement of arterial roadways is a cost normally paid by the developer when property adjoining the roadway is developed. However, in this instance, since the roadway is being improved prior to development of adjoining land, a mechanism to require the developer to pay the development costs that would normally be paid by the developer is applicable. Section 16-603 of the Norman Code, adopted by Council on February 11, 1997, established a recoupment process to recover costs associated with the widening of arterial streets. Recoupment will allow the City of Norman to recover funds used to purchase right-of-way. Recoupment will also allow the City to recover funds used to cover the cost of design, utility relocation, and construction to the extent that those costs are not paid from bonds or federal grants. This Recoupment ordinance applies to unplatted parcels along and adjacent to Cedar Lane Road.
DISCUSSION: There are thirteen (13) unplatted parcels along Cedar Lane Road; part of which will be needed as right-of-way for the project. Exhibit A is a map of the unplatted parcels and Exhibit B is a table of the recoupment parcels. By adopting Resolution No. R-1213-108, the City will be able to recover the appropriate costs for the Cedar Lane Road improvements when the parcel is platted and developed in the future. According to the City’s Recoupment Ordinance, if any of the thirteen (13) parcels do not develop within 20 years, the recoupment fee is waived. If any of the parcels develop between years 15 and 20, then the Recoupment assessment will be reduced proportionately each year down to zero at the twentieth year.
All thirteen (113) property owners will be notified at least ten (10) days before Council considers adopting the recoupment resolution for the Cedar Lane Widening Project. If approved, the attached Resolution will be filed with Cleveland County to provide notice to all future property owners and their agents. When the Cedar Lane Road Widening Project is completed, another Resolution will be prepared for Council’s consideration, indicating the actual cost of the project and the associated recoupment fee per parcel. Recoupment fees are collected by the City upon approval by Council of a final plat of the property that is developed after the initial recoupment resolution is adopted.
RECOMMENDATION: As outlined above, the Recoupment Resolution presented with this item is somewhat routine, as outlined in Section 16-603 of the Norman Code, to preserve the right of the City to collect normal arterial roadway development costs that would normally be paid by the property developer, if the unplatted property is developed over the next twenty years. Staff recommends that Council approve Resolution No. R-1213-108.