HomeMy WebLinkAboutAGENDA REPORT 2016 0921 CCSA REG ITEM 09A ITEM 9.A.
CITY OF MOORPARK,CALIFORNIA
City Council Meeting
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MOORPARK CITY COUNCIL BY: 977_ AP S
AGENDA REPORT
TO: Honorable City Council
FROM: David A. Bobardt, Community Development Director
DATE: September 13, 2016 (CC Meeting of 9121/2016)
SUBJECT: Consider Approval of the Proposed Third Amendment to the
Implementation Plan for Improvements Associated with Tract Nos.
5187-1&2 and 5405, the Meridian Hills Residential Development
Project, on the Application of K. Hovnanian Companies of Southern
California, Located on Meridian Hills Drive, West of Walnut Canyon
Road
BACKGROUND/DISCUSSION
This item was considered at the July 6, July 20, 2016, and September 7, 2016 City
Council meetings. It was continued to the September 21, 2016 City Council meeting to
allow staff to prepare alternative wording of the Implementation Plan in conjunction with
the Subdivision Improvement Agreement for this project. The July 6, 2016 staff report is
attached. K. Hovnanian, Hearthstone and Resmark have requested that the second
sentence in the first full paragraph on Page 1 of this plan be amended to read as
follows:
"ORA Ashford 94, LLC, Hearthstone, and K. Hovnanian Homes shall be defined as
"Developer" at any time that particular entity, or entities as the case may be, has an
ownership interest in the Property. If Meridian Hills — Moorpark, L.P., a Delaware
limited partnership ("Hearthstone") with all subsequent references to Hearthstone, Inc.
being Hearthstone, never acquires an ownership interest in the Property, it shall not be
considered a "Developer." Similarly, at the point in time that any of these entities no
longer has an ownership interest in the Property, then that entity (or entities) that no
longer has an ownership interest in the Property shall no longer be considered a
Developer."
This proposed concept of having one "Developer" identified as part of the
implementation plan is one that the staff supports. The proposed language for the Third
Amendment to the Implementation Plan would require further review by the City
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Honorable City Council
September 21, 2016
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Manager and City Attorney for consistency with the Subdivision Improvement
Agreement, once the language in the Subdivision Improvement Agreement is finalized.
STAFF RECOMMENDATION
Approve the draft Third Amendment to the Implementation Plan for Improvements to
Tract Nos. 5187-1&2 and 5405 subject to:
1) Review and approval of final language of this Third Amendment by the City
Manager and City Attorney;
2) Completion of fully executed Subdivision Improvement Agreement(s) for Tract
Nos. 5187-1&2 and 5405;
3) Determination of satisfactory financial capacity of the developers by the City
Manager and City Attorney; and
4) Deposit of$5,000.00 to fund City's review of the referenced actions.
Attachment: Agenda Report from 7/20/2016 City Council Agenda
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ITEM 10.R.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Steven Kueny, City Manager
DATE: July 14, 2016 (CC Meeting of 7/20/2016)
SUBJECT: Consider Approval of the Proposed Third Amendment to the
Implementation Plan for Improvements Associated with Tract Nos. 5187-
1&2 and 5405, the Meridian Hills Residential Development Project, on
the Application of K. Hovnanian Companies of Southern California,
Located on Meridian Hills Drive, West of Walnut Canyon Road
BACKGROUND and DISCUSSION
This matter was taken off calendar from the July 6, 2016, Council agenda. A copy of that
staff report is attached. Since that time, it was confirmed that a Subdivision Improvement
Agreement (SIA) was not approved when the final maps for these tracts were approved by
the City Council. A separate agenda report on the July 20, 2016, Council agenda provides
for approval of one or more SIA's for these tracts. Staff will also verify all sureties are
correct.
As a result of the need for the SIA, the staff recommendation for this item is amended to
include that requirement.
STAFF RECOMMENDATION
Approve the draft Third Amendment to the Implementation Plan for improvements to Tract
Nos. 5187-1&2 and 5405 subject to:
1) Review and approval of final language of this Third Amendment by the City Manager
and City Attorney;
2) Completion of fully executed Subdivision Improvement Agreement(s) for Tract Nos.
5187-1&2 and 5405;
3) Determination of satisfactory financial capacity of the developers by the City
Manager and City Attorney; and
4) Deposit of$5,000.00 to fund City's review of the referenced actions.
Attachment 1: Agenda Report from 7/6/2016 Council Agenda _
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MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: David A. Bobardt, Community Development Director
DATE: June 23, 2016 (CC Meeting of 7/6/2016)
SUBJECT: Consider Approval of the Proposed Third Amendment to the
Implementation Plan for Improvements Associated with Tract Nos.
5187-1&2 and 5405, the Meridian Hills Residential Development
Project, on the Application of K. Hovnanian Companies of Southern
California, Located on Meridian Hills Drive, West of Walnut Canyon
Road
BACKGROUND
As a requirement of the Development Agreement for Tract No. 5187, the Meridian Hills
residential development project, the applicant is required to submit for approval to the
City Council an implementation plan for the construction of on-site and off-site
improvements, prior to the issuance of a grading permit. On July 7, 2004, William Lyon
Homes received the City Council's approval of an Implementation Plan for the project.
On January 10, 2008, William Lyon Homes verbally informed City staff that their
company's interests in the unbuilt portions of the Meridian Hills project (183 lots in Tract
5187 and 17 lots in Tract 5405) had been completely transferred to ORA Ashford 94,
LLC. Resmark Equity Partners, LLC (Resmark) is the sole managing entity of the
Meridian Hills project on behalf of ORA Ashford 94, LLC. This transaction took place in
violation of the terms of the Development Agreement for this project, which requires City
Council approval of an amendment to the Implementation Plan to address the
responsibilities of a new owner prior to the transfer of ownership. On March 25, 2008,
William Lyon Homes submitted a formal application to the City seeking approval of an
amendment to the Implementation Plan. A draft Implementation Plan was presented to
the City Council at its April 16, 2008 meeting, at which time the item was continued to
allow additional time for the residents to review the plan. On May 21, 2008, Resmark
received the City Council's approval of an Amended Implementation Plan for the
project.
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Honorable City Council
July 6, 2016
Page 2
On June 13, 2014, Resmark verbally informed City staff that K Hovnanian Homes had
entered into an exclusive negotiation escrow to acquire the unbuilt portions of the
Meridian Hills project (183 lots in Tract 5187 and 17 lots in Tract 5405). A second
amendment to the Implementation Plan was approved by the City Council on July 16,
2014 to recognize K. Hovnanian as developer along with ORA Ashford 94, LLC.
K. Hovnanian Homes is currently pursuing a financing arrangement with Hearthstone,
Inc, by which Hearthstone would purchase 61 lots in the next phases of development
from K Hovnanian and then sell those lots back to K. Hovnanian as they are ready to
be developed. Subsection 6.13 of the Development Agreement for Tract 5187 states:
Prior to approval of the first grading permit for the Property, or
approval of the first final map of Tract 5187, whichever occurs
first, Developer shall submit and gain approval from City Council
of an Implementation Plan. The Implementation Plan shall
address the requirements for phasing and construction
responsibilities of Developer and any successors including
sureties for performance for all grading, construction of storm
drains and utilities, private and public streets, and other private
and public improvements on or offsite required by Tract 5187,
RPD 99-2, and this Agreement The Implementation Plan shall
also address the entities responsible and method and timing of
guarantee for each component of Developer's obligations
pursuant to Tract 5187, RPD 99-2, and this Agreement and
Developer's obligation for a Trail Staging area as referenced in
Subsection 6.9 of this Agreement. The approval of the
Implementation Plan and any Amendments thereto shall be at
the City Council's sole discretion. Prior to sale or transfer of
ownership of any portion of Tract 5187 (except individual lots
after construction of houses), Developer shall seek City approval
of an amendment to the Implementation Plan to address the
responsibilities of each entity.
Since Hearthstone will take title to the lots, as opposed to just carrying a trust deed, the
Implementation Plan needs to be amended to recognize their role in the ownership of
this project and responsibility for constructing certain improvements and accompanying
sureties to guarantee such construction. The current construction and grading sureties
are shown in the following table. All have been provided by K. Hovnanian Homes,
except for two as noted, which have been provided by William Lyon Homes and
Resmark. The work under these two sureties is expected to be completed over the next
two months.
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Honorable City Council
July 6, 2016
Page 3
Surety Type Bond No. Bond Amount
Tract 5187-1 Performance and Payment SN04002559 $1,000,000
_Tract 5187 Grading_ SN04002556 $1,000,000
-Tract-5187-2 Performance and_Payment SN0400_2560 _ _ $1,000,000
Tract 5187 Performance and Payment - Multi SN04002557 $509,975.40
_use trail __
Tract 5187-2_Monu_ments --- - --- SN04002553 - $167,013.29
Tract 5187-1 Monuments SN04002554 $189,929.87
Tract 5405 Performanceand Payment SN04002558 _
Tract 5405 Monuments -� - �� SN04002_555 - $22,418.23
ADA_ Trail-Rework {Resmark) _ __ 06_03010401303 $61111348 _ $84,909.61
Peter's_Driveway William Lyon) _ _ _ PB ,096.93_--_
Water Tank Access Road and Storm Drain 1134432 $350,741.68
Perform ance and Payment __
- Access- - -- brain--- ---- - - -- - - -- - - ---- ----- -
Water Tank Access Road and Storm Drain 1134433 $13,663.98
Grading
DISCUSSION
The intent of an implementation plan is to identify responsibility for grading and
improvements associated with the development of Tract 5187 and Tract 5405. In
support of this, the plan establishes a method for ensuring that sureties remain in place
and improvements are provided in the event that the developer sells portions of the
project to other developers prior to the installation of these improvements_ The required
implementation plan will ensure a smooth transition of rights and responsibilities in the
event that an unforeseen change results in the sale of any or all of the project to another
entity.
The proposed Draft Third Amendment to the Implementation Plan for the Meridian Hills
Residential Development Project is provided in legislative format. The key components
are the same as approved with the second amendment on July 16, 2014. Other than
recognition of Hearthstone as developer, the only change to the responsibilities is the
date for completion of the multi-use trail along the Peters' driveway. A new deadline of
September 30, 2016 is proposed, as the work is almost completed at this time, with a
few corrections that have been requested of City staff to better accommodate drainage_
FISCAL IMPACT
All surety bonds originally posted for all of the improvements required as part of the
subdivision remain in place and are sufficient to ensure completion of the tract
improvements.
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Honorable City Council
July 6, 2016
Page 4
Several deposits have been submitted to City of Moorpark for condition compliance to
cover staff costs associated with monitoring progress related to administering the
Implementation Plan. Also, deposits have been submitted to City of Moorpark for the
Modification No. 1 to Residential Planned Development Permit No. 1999-02 to cover
staff costs associated review of the entitlement application. The fund is current but, as
the fund account becomes depleted, additional money will need to be deposited by the
Developer to cover staff costs, consistent with the Development Agreement and
conditions of approval.
STAFF RECOMMENDATION
Approve the draft Third Amendment to the Implementation Plan for improvements to
Tract Nos. 5187-1&2 and 5405, subject to review of final language and determination of
satisfactory financial capacity by the City Manager and City Attorney.
ATTACHMENT:
Draft Third Amendment to the Implementation Plan for the Meridian Hills
Residential Development Project Tract Nos. 5187-1&2, and 5405
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Page 3 of 4
Development Agreement, Conditions of Approval, and Affordable Housing
Agreement for Tract Nos. 5187-1&2 and 5405.
3. Completion of required improvements to Walnut Canyon Road including the
installation of the multi-use trail and complete corrections of sidewalk to
demonstrate full compliance of accessibility requirements.
4. Completion of required improvements associated with the construction of
Meridian Hills Drive.
5. Provision of required Open Space dedications per the Development Agreement.
6. Installation of required Common Landscaping throughout the Project.
7. Completion of grading within the Project area, to establish areas graded to an
average elevation, consistent with the approved plans, in preparation for fine
grading prior to construction of structures, and a spine network of streets to serve
those areas including improvements within Tract 5187.
8. Completion of required Multi-use Trail and Public Trailhead improvements.
9. Completion and maintenance of EIR mitigation measures for the Project.
10.Maintenance of common areas until such time as these areas are accepted by
the Homeowners Association or other applicable governing agencies.
11.Completion of construction and maintenance of the required flood control and
other drainage improvements.
12.Continuation of meeting and complying with requirements for the design,
installation, monitoring, and maintenance of facilities to meet NPDES
requirements.
13.Completion of all required public improvements in Tract 5405 including but not
limited to streets, soil nail wall, retaining walls, and sound walls; and maintain the
main lines for the wet and dry utilities which have been installed to ensure they
are in a good state of repair.
14.Construction of the improvements for the trail staging area per section 6.10c of
the Development Agreement to be completed prior to occupancy of the 165th
residential unit for Tract No. 5187.
15.Compliance with section 6.11. of the Development Agreement and its related
requirements set forth in the Affordable Housing Purchase and Sale Agreement
recorded on December 15, 2006.
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Page 4 of 4
16.Provision of a site security program which includes the 24-hour response and
dissemination of security telephone number to the existing residents and City
staff.
17.Any additional improvements associated with the development of the Project, as
deemed necessary by the City Engineer/Public Works Director or Community
Development Director to protect the public health, safety and welfare.
11
SECOND DRAFT THIRD AMENDMENT TO THE IMPLEMENTATION PLAN MERIDIAN HILLS
RESIDENTIAL DEVELOPMENT PROJECT TRACT 5187-1842 AND 5405 PART TWO-A
The following community enhancements and improvements within the Meridian Hills Community are in
progress and/or will be performed by the Developer within the timeframes below:
Required
Tract 518P(items originally presented to applicant in a City Engineering Memo dated March Completion
5, 2008) Date"
1 General Clean up of onsite and offsite trash and removal of all illegal dumping debris Site shall be ongoing
cleaned-up immediately
2 Clean up of debns within all V-ditches ongoing
3 Replace BMP%, remove all broken sand bags Remove all silt at chevrons,dean streets with street ongoing
sweeper
4 Gate to Ventura County Watershed Protection District basin shall be secured immediately and shall ongoing
remain locked at all times
5 All gates for access areas shall be secured each and every day Gate to HOA basin along Walnut ongoing
Canyon Road shall be secured immediately
6 My and all other conditions,bonds,and/or timing of improvements for the property per the ongoing
Development Agreement and Conditions of Approval
*All items are to be completed to the satisfaction of either the City Engineer and Community Development Director.
"All dates are subject to inspections and collaboration with the various governing agencies.
Page 1 of 1 12
SECOND DRAFT THIRD AMENDMENT TO THE IMPLEMENTATION PLAN MERIDIAN
HILLS RESIDENTIAL DEVELOPMENT PROJECT TRACT 5187-1842 AND 5405
PART TWO-B
Requited
Tract 51871 Items originally presented to applicant in a Letter from Planning Companion
Director and attached City Engineering Memo,both dated March 13,2008) fie"
1 Correct and complete the installation of the multi-ice trail along Peters'driveway and 3/30/204.5-
landscaping
)20/2015landscaping along the R.O W of Walnut Canyon Rd per City requirements 9/30/2016
a slope failure&erosion problem along Peters'driveway requires immediate attention
b. install safety guardrail fencing along additional portions of the driveway
c modify the exrstag concrete block entry monument to comply with aline of sight"
d install a neighborhood mailbox unit
2 Need to bond for construction of multi-use bail at 150%of estimated cost of ongoing
construction
3 The property must be in full compliance with the adopted Fuel Modification plan on file. ongoing
*All items are to be completed to the satisfaction of either the City Engineer and Community
Development Director.
"All dates are subject to inspections and collaboration with the various governing
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