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Home My WebLink AboutAGENDA REPORT 2019 0417 REG CCSA ITEM 10HCITY OF MOORPARK, CALIFORNIA City Council Meeting of April 17, 2019 ACTION Approved Staff Recommendation. BY B.Garza H. Consider Resolution Amending the Fiscal Year 2018/19 Budget to Allocate Funds to Refund Assessment Districts Fees to ORA Ashford from Landscape Maintenance District 20 (Meridian Hills). Staff Recommendation: Adopt Resolution No. 2019-______, amending the Fiscal Year 2018/19 budget to Appropriate $173,774 from Meridian Hills Fund (2320) to refund Assessment District fees to ORA Ashford. ROLL CALL VOTE REQUIRED (Staff: Jeremy Laurentowski) Item: 10.H. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jeremy Laurentowski, Parks and Recreation Director By: Jessica Sandifer, Community Services Manager DATE: 04/17/2019 Regular Meeting SUBJECT: Consider Resolution Amending the Fiscal Year 2018/19 Budget to Allocate Funds to Refund Assessment Districts Fees to ORA Ashford from Landscape Maintenance District 20 (Meridian Hills) BACKGROUND West Pointe Homes was the original owner and developer of Tract 5187 (Meridian Hills). In 2007, West Pointe sold the project to William Lyons Homes (WLH). WLH was required to make certain improvements which included the Phase 1 landscape maintenance Areas (see Exhibit A, Attachment 1), which were a requirement of the Conditions of Approval for the project. The Conditions of Approval also required that an assessment district be formed to fund City maintenance costs for these improvements, once accepted by the City. In 2007, Landscaping and Lighting Maintenance Assessment District 07-02 (AD 07-02) was formed to fund the City maintenance costs for the landscape improvements installed in Tract 5187. In 2008, WLH sold the development project to ORA Ashford 94, LLC, ORA Marquis 89, LLC, and ORA Brighton 17, LLC (collectively, “ORA Ashford”) and managed by The Resmark Companies without notifying the City. An implementation plan was drafted to ensure that certain improvements, including the landscape maintenance areas were completed. In 2014, ORA Ashford subsequently sold their interest in the project to K. Hovnanian, who is in the final stages of completion of the project. DISCUSSION On February 6, 2019, the City Council approved an Agreement with ORA Ashford wherein among other things, the City agreed to complete the required improvements in the Phase I landscape maintenance areas using assessment district funds that the City had previously collected when ORA Ashford owned the property. Additionally, the City Council approved the acceptance of the Phase I landscape areas into Landscape Maintenance District 20 (Meridian Hills) and agreed to refund ORA Ashford $173,773.67 Item: 10.H. 261 Honorable City Council 04/17/2019 Regular Meeting Page 2 of the assessment fees that were collected. The refund is due to the fact that the City received approximately $697,090 in assessments from ORA Ashford from property assessments in Assessment District No. 07-02 during Fiscal Years 2007/08, 2008/09, 2009/10, 2010/11, 2011/12, and 2012/13. Of this amount, the City and ORA Ashford have agreed that the City will retain $523,316.33, which is the estimated cost of completing the Phase I landscape improvements, and return the balance of $173,773.67 to ORA Ashford. The City will competitively bid the Phase I landscaping improvement work and use the $523,316.33 to pay for those improvements. The agreement with ORA Ashford required payment of the refund by April 1, 2019. Accordingly, the City issued check No. 206205 on March 19, 2019. However, a budget amendment needs to be processed to appropriate the funds, as this cost was not included in the FY 2018/19 operating budget. FISCAL IMPACT A budget amendment of $173,774.00 is requested from Meridian Hills Fund (2320). This fund has adequate fund balance to refund the assessment fees to ORA Ashford. STAFF RECOMMENDATION (ROLL CALL VOTE) Adopt Resolution No. 2019-______, amending the Fiscal Year 2018/19 budget to Appropriate $173,774 from Meridian Hills Fund (2320) to refund Assessment District fees to ORA Ashford. Attachment – Resolution No. 2019-______ 262 RESOLUTION NO. 2019- ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2018/19 BUDGET TO APPROPRIATE $173,774.00 FROM THE MERIDIAN HILLS FUND (2320) TO REFUND ASSESSMENT FEES TO ORA ASHFORD WHEREAS, the City Council approved Residential Planned Development (RPD) 99-02 and Tract 5187 which allowed West Pointe Homes to construct the Meridian Hills housing project (“Project”) within the City of Moorpark; and WHEREAS, subsequent to that approval, West Pointe Homes, sold the Project to William Lyon Homes in 2007, who sold the Project to ORA Ashford 94, LLC, ORA Marquis 89, LLC, and ORA Brighton 17, LLC (collectively, ORA Ashford), as managed by the Resmark Companies, in 2008; and WHEREAS, the conditions of approval of RPD 99-02 required construction of certain landscaping improvements within the tract and formation of Assessment District No. 07-02 (AD 07-02) within the tract to fund the costs of City maintenance of these landscape improvements at such time as the maintenance is taken over by the City; and WHEREAS, William Lyon Homes constructed some of the Landscape Improvements in Tract 5187 prior to sale to ORA Ashford (Phase I Landscape Improvements); and WHEREAS, ORA Ashford was responsible for those Phase I Landscape Improvements; and WHEREAS, in 2014 ORA Ashford sold the Project to K. Hovnanian Homes; and WHEREAS, on June 20, 2018 the City Council adopted the Operating and Capital Improvement Projects budget for Fiscal Year (FY) 2018/19; and WHEREAS, on February 6, 2019, the City Council approved the “Agreement for the Acceptance of ORA Ashford Maintained Landscape Areas in the Meridian Hills Development into Assessment District AD-07-02, Payment for Certain Landscape Improvements, and Termination of ORA Ashford’s Remaining Obligations under a Development Agreement,” (“Agreement”) whereby the City and ORA Ashford have reached agreement on the terms and conditions by which the City will accept the Phase I Landscape Improvements into AD-07-02 and begin to undertake the work to complete the Improvements and undertake their maintenance; and WHEREAS, the Agreement requires that the City refund ORA Ashford $173,773.67 of assessment fees collected during ORA Ashford’s ownership of the property; and 263 Resolution No. 2019-____ Page 2 WHEREAS, a staff report has been presented to the City Council requesting a budget amendment of $173,774.00 to appropriate funds from Meridian Hills Fund (2320) to refund the assessment fees to ORA Ashford; and WHEREAS, Exhibit “A”, attached hereto and made a part hereof, describes said budget amendment and the resultant impact to the budget line item. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment in the amount of $173,774.00 from Meridian Hills Fund (2320) as more particularly described in Exhibit “A”, attached hereto, is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 17th day of April, 2019. __________________________________ Janice S. Parvin, Mayor ATTEST: ____________________________________ Deborah Traffenstedt Assistant City Manager/City Clerk Exhibit A – Budget Amendment 264 Resolution No. 2019-____ Page 3 FUND BALANCE ALLOCATION: Fund-Account Number Amount 2320-000-00000-33990 173,774.00$ Total 173,774.00$ EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 2320-000-00000-59600 -$ 173,774.00$ 173,774.00$ Total -$ 173,774.00$ 173,774.00$ Meridian Hills EXHIBIT A BUDGET AMENDMENT FOR MERIDIAN HILLS FUND (2320) FOR AD - 07-02 ASSESSMENT REFUND FY 2018/19 Fund Title 265