HomeMy WebLinkAboutAGENDA REPORT 2010 0203 CC REG ITEM 09BITEM 9.13.
CITY OF MOORPARK. CALIFORNIA
City Council Meeting
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MOORPARK CITY COUNCIL ACTION:
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AGENDA REPORT
BY: �
TO: Honorable City Council
FROM: Yugal K. Lail, City Engineer /Public Works Director b)-,
DATE: January 25, 2010 (CC Meeting of 02 -03 -10)
SUBJECT: Consider Surety Bond Reduction (No. 104906729) for Tract Map No.
5147 — A -B Properties
BACKGROUND
A -B Properties Tract 5147 is a 34.71 -acre industrial subdivision development project
located approximately 1,300 feet west of Gabbert Road, and north of the Union Pacific
Railroad. Tract No. 5147 consists of 17 industrial lots, 1 lot for a conservation
easement, and 1 lot for landscaping purposes, (Attachment 1). The grading and
improvement plans have been approved by the City and construction has commenced.
Grading has been completed on 7 of the 17 lots with over - excavation and re-
compaction completed on the remaining 10 lots. The project has been delayed due to
litigation between A -B Properties and Southern California Edison (SCE) on access and
service related issues including an eminent domain action by the City. It appears that a
settlement agreement to resolve all related issues by the City, A -B Properties, SCE and
Hitch Ranch will be finalized within a few weeks.
DISCUSSION
As required by the Development Agreement (DA) between the developer and the City,
the developer has posted a bond per Section 6.22 of the DA for $4,936,000.00 for the
construction of the Union Pacific Railroad under - crossing. This under - crossing on North
Hills Parkway (NHP) is on the westerly boundary of Tract 5147 to a point 600 feet north
of the said railroad crossing. Financing of the NHP under- crossing will be in the form of
an Assessment District with participation by A -B Properties and other benefiting
properties, or other financing mechanism as approved by the City. The City recently
hired KOA Corporation to prepare plans, specifications and cost estimate for the
construction of NHP from 600 feet south of the railroad crossing to Gabbert Road,
including the railroad under - crossing.
S:\Public Works\Everyone\Reports\Staff Reports\2010 \February\Surety Bond Reduction TR 5147_Agenda_012010.doc
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Honorable City Council
February 3, 2010
Page 2
In the A -B Properties vs. SCE litigation, A -B Properties has agreed to enter into a
settlement agreement with the City for modifications to the approved DA. A -B Properties
has agreed in principle to pay for the design and construction of the NHP first phase,
the paving of a 2 -lane section of NHP between the Tract 5147 entrance at the northeast
corner east to Gabbert Road.
The amended Development Agreement is currently being drafted and staff is
recommending that the referenced bond be reduced at this time consistent with this
report.
The $4,936,000.00 Bond No.104906729 for the under - crossing as posted by A -B
Properties is up for renewal. A -B Properties is requesting the subject bond be reduced
to $1,000,000. If A -B Properties fails to execute an amended Development Agreement
by August 31, 2010, the City will require the reinstatement of the bond per the existing
Development Agreement.
Staff is recommending that Surety Bond No. 104906729 be reduced to $1,000,000. as
follows:
SURETY
TYPE
BOND
NUMBER
ORIGINAL
BOND AMT.
PRIOR
AUTHORIZED
AUTHORIZED
ACTION OF
02/03/2010
ACTION
Cost of
104906729
$4,936,000.00
None
Reduction to
Construction
$1,000,000
for SR118
By-Pass
STAFF RECOMMENDATION
Authorize the City Clerk to reduce the Surety Bond No. 104906729 to $1,000,000 for A-
B Properties, Tract 5147 contingent on receipt of letter from A -B Properties agreeing to
the points contained in this report.
ATTACHMENT
1 — Vicinity Map
S: \Public Works \Everyone \Reports \Staff Reports\2010 \February\Surety Bond Reduction TR 5147_Agenda_012010.doc
17
ATTACHMENT 1
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