DEV2225.SR.JD
CITY OF SIMI VALLEY
MEMORANDUM
Janu
ary 23, 2023
TO: Cit
y Council
FR
OM: Department of Public Works
SUBJ
ECT: ADOPTION OF A RESOLU TION ACCEPTING THE REPLACEMENT
SUBDIVISION IMPROVEMENT AGREEMENT AND APPROVING
UPDATED SECURITIES FOR TRACT NO. 5364, LOCATED AT THE
SOUTH TERMINUS OF SEQUOIA AND TALBERT AVENUES, AND
WATSON AND COMET AVENUES IN RUNKLE CANYON
STAFF RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2023-04 (page 5) accepting the replacement Subdivision Improvem ent A greement (page 7) and approving securities for Tract No. 5364, located at the south terminus of Sequoia and Talbert Avenues, and Wats on and Comet Avenues in Runkle Canyon.
BACKGROUND AND OVERVIEW
The re quested action provides City Council approval for t he replacement Subdivision Improvement Agreement (SIA) to guarantee construction of public improvements. Tract No. 5364 (Attachment A – Vicinity Map, page 4 ) comprises the approved 1,595-acre Runkle Canyon/Woodlands Project, which contains open space, a public neighborhood park, a homeowner’s association common park, public trailhead and multipurpose trails, a public water storage tank, 25 custom home lots, 298 detached single -family production house s, 138 attached senior condominiums, a senior recreation facility, and related infrastructure improvements. The owner of Tract No. 5364 is Runkle Canyon, LLC.
The Final Map for Tract No. 5364 was approved by the City Council and recorded in the Office of the Ventura County Recorder in Miscellaneous Records (Maps) in four (4) separate phases as follows:
Phase Council Approval Reco rded
1 01/26/2015 162 MR 31, April 16, 2015
2 01/26/2015 162 MR 41, April 17, 2015
3 03/02/2015 162 MR 49, April 27, 2015
4 05/11/2015 163 MR 6, June 23, 2015
AGENDA ITEM NO.
Consent (8)
Runkle Canyon LLC entered into Subdivision Improvement Agreements (SIAs) as a condition precedent to recordation of the subdivision map for Tract 5364. Two separate SIAs were executed; one for Phases 1 & 2, and another for Phases 3 & 4. These two secured agreements obligated Runkle Canyon LLC to “install and complete, at its sole expense, all improvement work (“Improvements”) required of Runkle Canyon LLC for the subdivision by the City.” Only upon completion of the development may Runkle Canyon LLC request inspection and acceptance of all required improvements.
On January 26, 2015, the City Council approved the SIA for Tract 5364 Phases 1 & 2 with bonding totaling $2,054,466.00. On May 11, 2015, the City Council approved the second SIA combining Phases 3 & 4 with bonding totaling $14,960,110.00. These SIAs required completion of construction of all improvements within twenty -four (24) months from the date of approval. The SIA also grants the subdivider authorization to request an extension of time to comp lete improvements in writing and the City Engineer is given authority to extend the time to complete the Improvements up to an additional year.
The City Engineer has alr eady granted 2 time extensions for both SIAs. However, both SIAs have now expired: Phas es 1 & 2 on January 30, 2022, and Phase 3 & 4 on March 3, 2022.
FINDINGS AND ALTERNATIVES
On June 13, 2022, the City Council agreed to the extension of the Runkle Canyon/Woodlands Project Development Agreement (DA) to July 10, 2025. It is now prudent to combine both SIAs into a single replacement SIA with a term to coincide with the extended DA.
The current bonds for each SIA were based on engineer’s cost estimates in July 2013.
However, the cost of construction has increased significantly since then and the bonding no longer provides sufficient guarantee for faithful completion of construction of the improvements. Therefore, Public Works staff updated the original engineer’s cost estimate using the unit costs established on April 1, 2022.
The replacement SIA for construction of subdivision improvements was prepared and has been signed by the developer stating among other things, that construction of improvements will be completed on or before July 10, 2025, to coincide with the extended DA.
Public Works has recommended that the amount of $4,289,175 is necessary for the guarantee and warranty of the work for a period of one year following the completion and acceptance thereof against any defective work or labor done, or de fective materials furnished. The grading security is always held in full until the warranty period has elapsed and the City Council has accepted all improvements.
The developer has also maintained the Monument Surety to guarantee payment for the cost of setting property monuments upon completion of construction of all improvements.
DEV2225.SR.JD
2 DEV2225.SR.JD
T
he City Engineer finds that the replaceme nt agreement and current improvement securities are acceptable and conform to the Subdivision Map Act and local ordinances.
T
he following alternatives have been identified for City Council consideration:
1. Adopt Resolution No. 2023-04 accepting the replacement Subdivision Improvement Agreement and approving securities for Tract No. 5364, located at the south terminus of Sequoia and Talbert Avenues, and Watson and Comet Avenues in Runkle Canyon.
2. Do not approve attached resolution, and provide staff with other direction.
S
taff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I m ove that the City Council adopt Resolution No. 2023-04 accepting the replacement Subdivision Improvement A greement and approving sec urities for Tract No. 5364, located at the south terminus of Sequoia and Talbert Avenues, and Watson and Comet Avenues in Runk le Canyon.
SUMMARY
Staff finds that Tr act No. 5364 conforms to the Subdivision Map Act and loc al ordinances, and therefore recommends that the City Council adopt Resolution No. 2023-04 accepting the replacement Subdiv ision Improvement Agreement and approving securities for Tract No. 5364, located at the south terminus of Sequoia and Talbert Avenues, and Watson and Comet Avenues in Runkle Canyon. ___
_________________________________
Ronald K. Fuchiwaki
Public Works Director
P
repared by Brent Siemer, Deputy Public Works Director (Development Services) INDEX Page
A
ttachment A – Vicinity Map ....................................................... 4 Resolution No. 2023-04.............................................................. 5 E
xhibit 1 – Subdivision Improvement Agreement ....................... 7 3 RUNKLEHALL RD
CROSBY
AVE
APPLETON RD
MIRA ST
W
HITE
BARK
LN
LUCY CIR
PINE
VIEW DR
CARDEA DR
COMETAVE
PALM
ST
ALM
OND
LN
E GOULD
ST
W
ATSON
AVE
CINNABAR
PL
E DUSAN ST
FIR
AVE
CAMDENVISTA CT
ARNESS FIRE RD
BEAVER
AVE
ASPEN ST
GARDNER ST
RUNKLE
FIRE RD
SEQUOIA
AVE
FITZGERALD RD HAZELNUT
CT
RUDOLPH DR
MAPLE
LEAF CT
TALBERT
AVE
SANDY
AVE
W
HITE
BARK
LN
BRETONAVE
REDWOOD
GROVECT
FLETCHER ST
BRIAR
HILL
CIR
COLLEGE ST
TALBERT AVE
MOUNTAIN
VISTA LN
EASY
TAPO CANYON
GUARDIAN
ALAMO
ROYAL
LOST CANYONS
MADERA
COCHRAN
FIRST
ERBES
TAPO
LOS ANGELES
OLSEN
ROYAL
ERBES
MADERA
ALAMOALAMO
COCHRAN
ALAMO
TAPO
ROYAL
LOS ANGELES
ALAMO
±
TR 5364 RUNKLE CANYON
LOCATION MAP
VICINITY MAP
ATTACHMENT A
4 DEV2225.RES.JD
A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIMI
VALLEY ACCEPTING THE REPLACEMENT SUBDIVISION
IMPROVEMENT AGREEMENT AND APPROVING SECURITIES
FOR TRACT NO. 5364, LOCATED AT THE SOUTH TERMINUS
OF SEQUOIA AND TALBERT AVENUES, AND WATSON AND
COMET AVENUES IN RUNKLE CANYON
W
HEREAS, the developer prepared and filed a subdivision map known as Final Map 5364 was approved by the City Council and subsequently recorded by the office of the Ventura County Recorder in Miscellaneous Records (Maps) in four (4) phases as follows: Phase 1 as 162MR31, on April 16, 2015, and Phase 2 as 162MR41, on April 17, 2015, and Phase 3 as 162MR49, on April 27, 2015, and Phase 4 as 163MR6, on June 23, 2015; and
W
HEREAS, this approval by the City Council required the developer to make certain public works improvements; and
W
HEREAS, Subdivision Improvement Agreements (SIAs) were executed by the City Engineer for Phases 1 & 2 and SIA on January 30, 2015; and, for Phases 3 & 4 on March 3, 2015, to secure the developer’s obligation to complete all required improvements; and
W
HEREAS, written requests of the developer for time extensions to faithfully comply with the SIAs were approved twice by the City Engineer; and W
HEREAS, the SIA for Phases 1&2 expired on January 30, 2022; and, the SIA for Phases 3&4 expired on March 3, 2022; and
W
HEREAS, on June 13, 2022, the City Council agreed to the extension of the Runkle Canyon/Woodlands Project Development Agreement (DA) to July 10, 2025; and
W
HEREAS, it is now prudent to combine both SIAs into a single replacement SIA with a term to coincide with the extended DA; and W
HEREAS, the City Engineer's Office has required the developer to maintain all existing improvement securities for the faithful performance of said replacement agreement, to guarantee the co nstruction of the improvements, and to guarantee payment for provisions, materials, work and labor; and W
HEREAS, the City Engineer's Office has caused to be drawn up an agreement for construction of subdivision improvements (Subdivision Improvement Agreement), signed by the developer stating among other things, that construction of improvements will be completed on or before July 10, 2025, the form of which is attached as Exhibit 1 to the Staff Report accompanying this Resolution; and 5 RESOLUTION NO. 2023-04
RES. NO. 2023-04
W
HEREAS, the City Engineer's Office has recommended that all improvement securities offered as security for labor and materials and for the faithful performance of the agreement be in an amount equal to one hundred percent (100%) of the estimated remaining cost of the improvements or the act to be performed; and W
HEREAS, the City Engineer's Office has recommended that the amount of $4,289,175 for Tract No. 5364 is necessary for the guarantee and warranty of the work for a period of one year following the completion and acceptance thereof against any defective work or labor done, or defective materials furnished; and W
HEREAS, the City Engineer's Office has required the developer to maintain the original Monument Surety to guarantee payment for the cost of setting property monuments.
NO
W, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:
S
ECTION 1. The City Council approves the amounts recommended for all improvement securities offered as security for faithful performance and for labor and materials in the amount of 100% of the estimated remaining cost of the improvements or of the act to be performed.
SEC
TION 2. The City Council hereby approves the form of the replacement Subdivision Improvement Agreement for Tract No. 5364, and authorizes the execution thereof, as well as the associated securities agreements as approved by the City Manager and City Attorney or their designees.
S
ECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
PASSED
and ADOPTED this 23rd day of January 2023.
A
ttest:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
A
pproved as to Form: Approved as to Content:
David L. Caceres, City Attorney Brian Paul Gabler, City Manager R onald K. Fuchiwaki
Public Works Director
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