HomeMy WebLinkAboutAGENDA REPORT 2016 0120 CCSA REG ITEM 10I ITEM 10.1.
CITY OF MOORPARK,CALIFORNIA
City Councii Meeting
of /-070 -020
MOORPARK CITY COUNCIL ACTION. . W24_
AGENDA REPORT a o. yw. _ANNA .
BY:
TO: Honorable City Council
FROM: Ron Coons, Interim Public Works Director U
Al Gali, Assistant Engineer /(4-
D
DATE: January 11, 2016 (CC Meeting of 1/20/16)
SUBJECT: Consider the Release of Cash Bond for Shea Homes, LP for Tract 5425
and the Resolution Amending the Fiscal Year 2015/2016 Operating and
Capital Improvement Budget to Refund the Cash Bond
DISCUSSION
Tract 5425 is a 15-acre, 99-unit residential development project located south of Los
Angeles Avenue (SR-118) and east of Fremont Street. The developer of Tract 5425 is
Shea Homes, LP (Shea).
Shea was conditioned to obtain a Caltrans Encroachment Permit (Caltrans EP) and
construct improvements on Los Angeles Avenue (SR-118) fronting their residential
development. On May 7, 2010, Shea paid a cash bond of $273,130.78 for the required
street improvements.
In 2012, Shea requested and received an early grading agreement, which allowed at-risk
grading and construction of certain improvements within the boundaries of Tract 5425.
Surface and underground infrastructure and home construction proceeded as scheduled.
Shea was able to sell residential dwelling units, but was not able to transfer ownership of
any units without completing the following:
1) Recordation of the final map;
2) Formation of the landscape maintenance district; and
3) Obtain a Caltrans EP to construct improvements on Los Angeles Avenue (SR-
118).
In 2013, Shea and the City agreed to an amendment of Shea's Subdivision Improvement
Agreement (SIA) to modify the conditions. Per the amendment, the City would postpone
the deadline of a obtaining a Caltrans EP and would continue to issue building permits
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Honorable City Council
January 20, 2016
Page 2
until the 30th unit. It was also agreed that the City will hold the cash deposit of
$273, 130.78 until Shea received its Caltrans EP and submitted a bond for the related
improvements. Shea received its Caltrans EP in February 2014 and submitted Bond No.
K0885094A in July 2014. The submitted bond covers the Los Angeles Avenue
improvements and will be released at a later date at the completion of all required
improvements. Shea met its obligations and the City can release the $273, 130. 78 cash
bond. The release must be approved by City Council. A summary of the cash bond
release is summarized in the table below.
SURETY TYPE CHECK ORIGINAL PRIOR AUTHORIZED
NUMBER BOND AMT. AUTHORIZED ACTION OF
ACTION 1/20/2016
Cash Bond 72539941 $273, 130.78 None Release
FISCAL IMPACT
In 2010, the $273,130.78 cash bond was recorded as revenue into the Los Angeles
Avenue Area of Contribution -(Fund 2501). A resolution amending the budget is required
to appropriate $273, 130. 78 for the refund of the cash bond deposit.
Current FY
15/16 Budget
Fund 2501 -LA AOC ($)
Cash Bond Release 0.00
Total 0.00
STAFF RECOMMENDATION (ROLL CALL VOTE)
Proposed
Change
($)
273,130.78
273,130.78
Proposed FY
15/16 Budget
($)
273,130.78
273,130.78
1. Adopt Resolution No. 2016-amending the Fiscal Year 2015/16 Budget to
appropriate $273, 130.78 from LA AOC Fund (2501).
2. Authorize the City Manager or his designee to release the cash bond deposit in the
amount of $273, 130. 78 to Shea Homes, LP.
Attachment
S:\Public Works\Everyone\Reports\Staff Reportsl2016\1_January\1-20-16 (LA Ave Cash Bond Refund, TR 5425).doc
555
RESOLUTION NO. 2016----
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR
2015/16 BUDGET TO APPROPRIATE FUNDS FROM LOS
ANGELES AVENUE AREA OF CONTRIBUTION FUND (2501),
TO REFUND CASH BOND TO SHEA HOMES, LP FOR
CONSTRUCTION IMPROVMENTS ON LOS ANGELES
AVENUE
WHEREAS, in May 7, 2010, Shea Homes, LP paid a $273,310.78 cash deposit for
the improvements on Los Angeles Avenue fronting their residential project Tract 5425.
This was recorded as an Area of Contribution F~e in the Los Angeles Avenue Area of
Contribution Fund (2501); and
WHEREAS, on November 13, 2013, the First Amendment to the Subdivision
Improvement Agreement was signed, in which Shea agreed to build the said
improvements and the City will hold the $273,130.78 in cash deposit that Shea deposited
with· the City for their portion of the Los Angeles Avenue improvements. The City shall
refund the $273, 130. 78 after Shea provides the approved Caltrans Encroachment Permit
(Caltrans EP) and submits a surety for their portion of the improvements; and
WHEREAS, the Caltrans EP was received in February 2014, and the surety was
received on July 2014 and therefore both requirements have been met; and
WHEREAS, on June 17, 2015, the City Council adopted the Operating and
Capital Improvements Projects budget for Fiscal Year 2015/16; and
WHEREAS, a staff report has been presented to the City Council recommending
the release of the cash bond for Shea and requesting an appropriation of $273, 130. 78
from Los Angeles Avenue Area of Contribution Fund (2501 ); and
WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said
budget amendment and its resultant impact to the budget line item.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That a budget amendment in the aggregate increase of
$273, 130.78 as more particularly described in Exhibit "A", 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.
S:\Public Works\Everyone\Reports\Staff Reports\2016\ 1_January\1-20-16 (LA Ave Budget Amend Reso).doc 556
Resolution No. 2016 ---
Page 2
PASSED AND ADOPTED this 20th day of January, 2016.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
Attachment: Exhibit 'A': Appropriation and Budget Detail
557
Resolution No. 2016 ----
EXHIBIT "A"
BUDGET AMENDMENT FOR
LA AOC FUND (2501)
TO APPROPRIATE FUNDING FOR THE REFUND OF CASH BOND
TO SHEA HOMES, LP TRACT 5425
FY 2015-2016
FUND ALLOCATION FROM:
Fund Account Number
LA AOC 2501-5500 $
Total $
DISTRIBUTION OF APPROPRIATION TO EXPENSE ACCOUNTS:
Amount
273,130.78
273,130.78
Account Number Current Budget Revision Amended Budget
2501.8410.0000.9851 $ 273,130.78 $ 273,130.78
Total $ -$ 273,130.78 $ 273,130.78
Finance Approval: ~
S:\Public Works\Everyone\Reports\Staff Reports\2016\1_January\1-20-16 (LA Ave In-lieu Fee Budget Amend Reso Exhibit A) 5 5 8