COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: April 1, 2025
SUBJECT: Adoption of a Resolution Approving Betteravia Plaza Reimbursement Agreement; and Release of Landscaping Performance Bonds
Description:
The City Council will consider authorizing a Reimbursement Agreement with Betteravia Park, LLC for improvements constructed as part of the Betteravia Plaza development that qualifies for Growth Mitigation reimbursement and consider authorizing the release of Landscaping Performance Bonds that ensured the completion of the public landscaping installed as part of the Betteravia Plaza development.
Environmental Notice: The Project was adequately covered in a previously adopted FEIR prepared for GPZ -2014-0002, SCH#2015011029 document pursuant to California Environmental Quality Act State Guidelines Section 15162.
RECOMMENDATION:
1. Adopt a Resolution authorizing a Reimbursement Agreement with Betteravia Park, LLC; and
2. Authorize the release of Faithful Performance Bond for Landscaping & Irrigation [#30051906] in the full remaining amount of $598,120 (City Council previously approved the reduction by 50 percent on October 1, 2024) posted in the form of a Surety to guarante e the installation of the required landscaping and irrigation; and order that the Labor and Materials Bond [#30051906 -E] in the amount of $598,120 and the Guarantee and Defective Material Bond [#30051906 -F] in the amount of $119,624 be retained for six mon ths and one year respectively, from the date of the release of the Faithful Performance Bond for Landscaping & Irrigation. Full release was granted by each department.
BACKGROUND:
As a part of improvements constructed for Betteravia Plaza Tract 6008, Betteravia Road was widened to meet General Plan buildout width requirements, and the intersection of Betteravia Road and Western Avenue was signalized. These improvements are included in the City of Santa Maria’s Growth Mitigation Capital Improvement Prog ram list and exceed what was required to mitigate the impact of the Betteravia Plaza development. As a result, these construction costs are eligible for reimbursement under Santa Maria Municipal Code Section 8-15.08.
2 A separate Condition of Approval of th e Betteravia Plaza Tract 6008 development required the developer to install landscaping and irrigation as required by the Recreation and Parks Department. The developer has fulfilled this obligation to the satisfaction of the Recreation and Parks and Public Works Departments, and staff recommends acceptance of these improvements.
DISCUSSION:
The public improvements for Betteravia Plaza Tract 6008 have been completed, except for the signalization of Blosser Road and Sonya Lane and the construction of a bus turnout on Blosser Road. These remaining improvements are the responsibility of the Las Brisas Apartments and Townhomes, which are currently under construction in the Betteravia Plaza subdivision area. These improvements are covered under a separate surety.
Alternative(s)
The City Council may choose not to enter into a Reimbursement Agreement with Betteravia Park, LLC. This would be inconsistent with prior discussions regarding this project and the letter of agreement dated August 27, 2024, between the Ci ty and the Developer. If the Council chooses this option, staff will require direction on next steps with the Developer.
Regarding the Faithful Performance Bond, the City Council may opt not to release the bonds if it finds that the Developer has not comp leted the required public landscaping improvements under the Tract 6008 Conditions of Approval.
Fiscal Considerations
The Reimbursement Agreement would refund the developer $976,727.82 from the Traffic Fund of the Growth Mitigation Program. The developer has provided documentation of all associated project costs, which the Public Works Department has reviewed for accuracy and consistency with the identified improvements.
Releasing the Faithful Performance Bond would not incur additional costs to the City and would relieve the Developer of premium costs associated with maintaining the surety.
Impact to the Community
City residents benefit from the improved public facilities and the installed landscaping.
The Traffic fund for Growth Mitigation has sufficien t funds to cover the reimbursement amount without affecting the City’s ability to complete other projects in the Capital Improvement Program. Releasing the Faithful Performance Bond does not negatively impact the community, as the City is no longer at risk of having to complete the landscape improvements on behalf of the developer.
ATTACHMENT(S)
A. Resolution
B. Reimbursement Agreement
C. Bond Release Approvals