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Home My WebLink AboutAGENDA REPORT 1993 0203 CC REG ITEM 11I1-1V.L-/' (5 2)f /.;L MOORPARK 799 Moorpark Avenue Moorpark, California 93021 AGENDA REPURT Tu The Honorable City Council FROM Dirk Lovett, AL3sisatant City Engineer- DATE. February 2, 199:3 (CC Meeting of 2/:3/93) (805) 529 -6864 "CORPARK, CALIFC" "", !CtYCoun fl Mee,;, -j of 1993 ACTION: SUBJECT: Consider Public Improvement Sureties for Tentative Tract Map 4757 (Ventura Pacific Capital) BACKGROUND INFORMATION Ur, :,anuary G, 1993, the City Council approved the final map for Mission Bell Plaza Tract Y757 -1. T},e City Clerk and Mayor were authorized to sigr, the title -sheet of the map and the applicant was required to record an agreement in conjunction with the map, relating to future merger of remainder parcel "B ". Prior to rtcordatiur,, however, the applicant has beer, conditioned to pay all City fees and provide all ,- .ureties. 'i'D date, the applicant hao paid all onsite and offsite improvement ices with the exception of the ir,tErsectior, improvement fees, street light maintenance fee, and the L. A. Avenue ACC. The applicant has submitted bonds f,--r onsite grading, storm drain, and £:ur vey monuments. Tentative Tract 4. /.`_r;' was a joint project between Ventura Pacific and MacLeod r._onstruction in which several public improvements were conditioned to both properties. It was assumed that all public improvement sureties would be the shared responsibility of both. because some of theme improvements will benefit other properties, an Assessment Uistr ict has been initiated, at their request. A unique situation has been created at this site due to the following issues: 1. Both developers have been conditioned to participate in the same public improvements (including sureties). 2. An Assessment District has been initiated to pay for these imps ovements. PAUL W. LAWRASON JR BERNARDO M PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR JOHN E. WOZNIAK Mayor Mayor Pro Tern Counc,Imember CounCilmember Co„ncilmember February 2, 199J Page 2 3. Ventura Pacific is requesting recordation of their final map prior to the final establishment of the Assessment District. Specific conditions per 'Tentative Map 4757 require that all public improvement sureties be provided prior to recordation of the final map. Due to difficulties in providing these sureties and meeting construction time constraints for K -Mart, Ventura Pacific has requested: A. that the deadline for submitting these sureties be changed to final occupancy rather than map recordation, 13. that they not be required to bear all obligation for the Assessment District Sureties. DISCUSSION A. Sureties are generally requested prior to map recordation to insure that the site is developed in conformance with the Final Map. Requiring sureties at occupancy rather than recordation is feasible assuming that the City is protected should the project fail and the improvements aren't needed until sometime after initial occupancy. Consideration should be given to the possibility that a failure of the Assessment District may render the tract unbuildable. Should this happen, the City needs to protect itself with a separate agreement which would require installation of all improvements prior to occupancy. All public improvement sureties submitted by Ventura Pacific can be exonerated should the Assessment District pass and upon receipt of both performance and payment bonds from the awardee of the Assessment District contract. It is also expected that should Macleod develop, they will submit their share of the public improvement sureties which would reduce Ventura Pacific's share. (Hot a likely scenario unless the Assessment District fails). February 2, 1993 Page 3 b. The estimated cost of the conditioned improvements requiring sureties is as follows: 1. Storm Drains S 542,743 2. Liberty bell North 68,-J26 :i. Liberty bell South 96,150 4. Parklane Signal 171,700 ti. Liberty Bell Signal 171,700 E,. L. A. Ave. S outhside 281,600 %. L. A. Ave. Northside 121,000 8. L. A. Ave. ( Gisler) 95,800 9. Parklane Ave. 173,840 10. Lassen Ave. 191,005 11. Water 55,890 12. Utilities 547,100 13. R -O -W & Easements Acq. 300,500 TOTAL $2,817,544 These improvements were deemed necessary and conditioned jointly to Ventura Pacific and MacLeod. It is the City's practice to require these improvements to be constructed by the first to develop. City policy for sureties generally requires that two separate bonds, one for performance (100% of construction cost) and one for labor and material (100% of construction cost), be :submitted prior to map recordation. It is assumed that the Assessment District will build all public improvements and supply its own bonding. With this scenario in mind, it might be appropriate that Ventura Pacific. Capital provide only the performance bond as a security against the construction of the proposed improvements. If the Assessment District does not materialize, the City could then still. build the improvements with the performance bond. February 2, 1'3'J:3 Page 4 Upon receiving the performance and payment bonds from the Assessment District contractor, Ventura Pacific could be released of any Eurety obligation for the improvements. A notable exception to this is Ventura Pacific's obligation, to provide surety for the Assessment District. This is necessary even if the Assessment District is formed to guarantee any shortfalls since the Assessment District amount cannot be exceeded after it is formed. All of the Assessment District improvements were either specifically conditioned with the Tentative Map or deemed necessary during design, to make all necessary transitions. The sureties for all improvements and all transitions would be provided when the Assessment District contractor's bonds are received. Improvements costs in the Assessment District that might not be specifically necessary for Ventura Pacific surety include the following: 1. Improvement costs on Liberty Bell south of L.A. Ave. 2. Water system costs. (Fond to Water District) Improvement costs on south side of L. A. Ave. (East of Liberty Bell Rd.) 4. L.A. Ave. (North side) improvements along Gisler frontage. S. Liberty F3e11 Signal costs. (It is considered that the Ventura Pacific site, alone, can operate without this signal. This assumes that Ventura Pacific accesses Liberty Bell, across the Macleod property, using driveway easements agreed to between Macleod and Ventura Pacific Capital. It also assumes that Ventura Pacific Capital agrees to prohibit left turns from Liberty Bell onto Los Angeles Ave. This should all be in the four, of an agreement. ) 6. That portion of the 'torm Drain costs to be financed by the AOC. 7. That portion of the Park Lane Signal costs to be financed by the AOC. 8. That portion of L.A. Avenue South ( west of Liberty Bell Rd.) to be financed by the AOC. February 2, 1993 Page 5 All remaining improvements and associated sureties of the Assessment District are deemed necessary per the approved conditions. Total Assessment District Improvements 52,817,544 (Less items as outlined above) Item 1 ( 9G,150) 1 tem 2 ! S5, 890 ) Item :s ( 12-0,656) 1 tern 4 ( 95,800) Item �j ( 171, %00) 1 tem G ( 1G7/,8G2) Item Y ( 6t,, 000) Item 8 ( 65,722) TOTAL S1,978,764 SUMMARY Consideration car, be given to Ventuia Pacific's request to reduce surety obligations by any or all of the following options: 1. Require only a Performance Bond for a.) all of the Assessment District improvements - 52, 817. 544, or b. ) to only those improvements specifically conditioned (omit offsite and transition improvement costs itemized in the discussion) - $1,978,764. Option 1. b. would require an agreement regarding access and turning restrictions at Liberty Bell. February 2, 1993 Page G Change the -urety Tract conditiono to :nap recurdatiun ". deadline in both the CPD and Tentative "prior tc, occupancy" rather tt.ar, "Prior to The reason to consider this is the pending Assessment District formation. If this option is followed, the action would be to A) require Ventura Pacific to provide both Performance and Labor & Material bonds Should the Assessment District fail, and B) defer completion of Assessment District improvements until "prior tc, occupancy ". An agreement would be necessary binding all successors, transferees and heirs of any portion of the tract to these two requirements. The risk for the City is that if the improvemtntz; aren't ir, talled for any rc_ason, there would to conEiderable pressure to open the =enter without the minimum necessary public improvements. if the (.:euncil decides to change the deadline for the submission of - ureties, a codification to both the Tentative Map and CPD Conditions will be necessary. RECOMMENDATION Direct Staff as deemed appropriate. DIL:cdc 012993. AR2