DEV2501-SR.MG
CITY OF SIMI VALLEY
MEMORANDUM
M
arch 10, 2025
TO: City Council
F
ROM: Department of Public Works
S
UBJECT: ADOPTION OF A RESOLU TION APPROVING A SUBDIVISION
IMPROVEMENT AGREEMENT AND SECURITIES FOR
LD-S-2021-0001, LOCATED AT 2196 TAPO STREET
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. Adop
t Resolution No. 2025-04 (page 4);
2. Aut
horizing execution of a Subdivision Improvement Agreement (page 6 ) and approving securities for LD-S-2021-0001, located at 2196 Tapo Street.
BACKGROUND AND OVERVIEW
T
he requested action provides City Council assur ance for the construction of public improvements. LD-S-2021-0001 (Attachment A - Location Map, page 3) is comprised of a four -story mixed -use building with 280 apartment units and 4,750 square feet of commercial space within an existing shopping center located at 2196 Tapo Street on the east side of Tapo Street between Cochran and Alpine Streets. The owner/subdivider of LD-S-2021-0001 is Santa Susana GRF2, LLC. The Tentative Parcel Map was previously approved by the City Council on February 28, 2022, by Resolution 2022-08.
T
hese subdivision improvements include typical public infrastructure required for all developments: water, sewer, etc. The City does not accept public improvements and release securities until the last production unit is completed. This ensures that any and all damage to public infrastructure by construction activities will be repaired by the developer prior to City acceptance for maintenance. However, City acceptance for subdivisions of this size can be several years after the first building permit is issued.
FINDINGS AND ALTERNATIVES
T
he City Engineer finds that the agreements and improvement securities are acceptable and conform to the Subdivision Map Act and local ordinances.
T
he following alternatives are available to the City Council:
1. A
dopt Resolution No. 202 5-04 approving a Subdivision Improvement Agreement and securities for LD-S-2021-0001, located at 2196 Tapo Street; AGENDA ITEM NO.
Consent (11)
DEV2501.SR.MG
2. Provide staff with other direction.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I move that the City Council adopt Resolution No. 2025- 04 approving the Subdivision Improvement Agreement and securities for LD -S-2021-0001, located at 2196 Tapo Street.
SUMMARY
Staff finds that LD -S-2021-0001 conforms to the Subdivision Map Act and local ordinances and therefore r ecommends that the City Council adopt Resolution No. 2025-04 accepting the Subdivision Improvement A greement and approving s ecurities for LD-S-2021-0001, located at 2196 Tapo Street. ______
______________________________
Ronald K. Fuchiwaki
Public Works Director
Pr
epared by Brent Siemer, Deputy Public Works Director
INDEX Page
Atta
chment A – Location Map…………………………………………………………...3
Resolution No. 2025-04 …………………………………………….............................4 Ex
hibit 1 – Subdivision Improvement Agreement ……………………………………. 6 2 �
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ATTACHMENT A
3 DEV2501.RES.MG
RESOLUTION NO. 2025-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIMI
VALLEY APPROVING THE SUBDIVISION IMPROVEMENT
AGREEMENT AND SECURITIES FOR
LD-S-2021-0001 LOCATED AT 2196 TAPO STREET
WHEREAS, the tentative parcel map for LD-S-2021-0001 was approved by the City Council on February 28, 2022 by Resolution No. 2022-08; and
WHEREAS, this approval was conditioned to require the developer to make certain public works improvements; and
WHEREAS, the City Engineer's Office has caused to be drawn up an agreement for construction of subdivision improvements, signed by the developer stating, among other things, that construction of improvements will be completed within thirty-six (36) months of City Council approval, the form of whi ch is attached as Exhibit 1 to the Staff Report accompanying this Resolution; and
WHEREAS, the City Engineer's Office has required the developer to post improvement securities for the faithful performance of said agreement, to guarantee the construction of the improvements, and to guarantee payment for provisions, materials, work and labor; and
WHEREAS, 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 cost of the improvements or the act to be performed; and
WHEREAS, the City Engineer's Office has determined that the estimated cost of the improvement work is $388,120.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 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 cost of the improvements or of the act to be performed.
SECTION 2. The City Council hereby approves the form of the Subdivision Improvement Agreement attached hereto as Exhibit 1, and authorizes the execution thereof, as well as the associated securities agreements as approved by the City Manager and City Attorney or their designees.
SECTION 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. 4 RES. NO. 2025-04
PASSED and ADOPTED this 10th day of March 2025.
Attest:
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: Approved as to Content:
Algeria R. Ford, City Attorney Samantha C. Argabrite, City Manager
Ronald K. Fuchiwaki
Public Works Director
5 105201\18280626
EXHIBIT 1
RECO
RDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City
Clerk
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
No fee per Government Code § 6103
SUB
DIVISION IMPROVEMENT AGREEMENT
NO. _____
_____
THI
S AGREEMENT (“Agreement”) is made and entered into this ___ day of ____ 2025, by and between the CITY OF SIMI VALLEY, a general law city and municipal corporation (“CITY”), and Santa Susana GRF2, LLC (“SUBDIVIDER”).
The P
arties agree as follows:
1. RECI
TALS. This Agreement is made with reference to the following facts and objectives:
A. SU
BDIVIDER presented CITY with a final map on land identified as Map No. TP-S-2021-0001.
B. SU
BDIVIDER requested that CITY approve the Final Parcel Map before construction and completion of improvements identified on Tentative Parcel Map TP-S-2021-0001, including, without limitation, streets, highways, public ways, grading, fences, and public utility facilities (“Improvements”) which are part of or appurtenant to the subdivision (“Subdivision”) identified on the Parcel Map. The Improvements must be constructed in accordance with plans and specifications on file with CITY.
C. Thi
s Agreement is entered into in accord with the Subdivision Map Act (“Act”) and applicable ordinances adopted by CITY including, without limitation, as codified in the Simi Valley Municipal Code (“SVMC”).
2. CONS
TRUCTION OF IMPROVEMENTS. At its sole cost and expense, SUBDIVIDER agrees to furnish the equipment, labor and materials necessary to complete the Improvements on the Tentative Parcel Map TP-S-2021-0001, set forth in attached Exhibit “A,” which is incorporated by reference, and such other improvements required by CITY regulations and/or the City Council when approving the Map. All of the 6 2
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above work, together with appurtenances, contingencies and engineering costs, are more particularly shown on the improvement plans for the Map. In addition, SUBDIVIDER agrees that because of Planning Commission Resolution No. 17-15, that it will construct and maintain the improvements identified in Exhibit “A,” in the manner set forth in Public Works Permit No. PW15-00306.
3. ESTIMATED COST OF IMPROVEMENTS. The parties agree that the estimated cost of the improvement work is $388,120.
4. COMPLETION. SUBDIVIDER must complete all Improvements within 36 months after recording the Map or within such further time as may be granted by the City Council.
5. COMPLETION BY CITY. Should SUBDIVIDER fail to complete the Improvements within the time for completion, CITY, at its option, following written notice and a 30-day cure period, may enter onto SUBDIVIDER’s property to complete the Improvements at SUBDIVIDER’s cost.
6. WARRANTY OF IMPROVEMENT PLANS. SUBDIVIDER warrants that the plans and specifications for the Improvements comply with the tentative map approval and the master plan for the Subdivision previously approved by CITY’s Planning Commission and the City Council, together with all conditions made a part of such approval(s).
SUBDIVIDER further warrants that the plans and specifications can be relied upon to accomplish the improvement work covered by this Agreement in a good, workmanlike manner and in accordance with accepted construction practices. Should the plans and specifications at any time before final acceptance of the Improvements prove to be inadequate pursuant to the City’s specification and standards, SUBDIVIDER agrees to make such changes deemed necessary by CITY to accomplish improvement work in a good, workmanlike manner and in accordance with accepted construction practices.
SUBDIVIDER further agrees to make or cause to be made such engineering, soils and other reports as may be required by CITY.
7. CITY NOT LIABLE FOR PLANS AND SPECIFICATIONS. CITY is not an insurer or surety for the design or construction of the Subdivision. And no CITY official, officer, or employee is liable or responsible for any claim arising during construction of the Subdivision or Improvements, unless it can be shown that such person specifically directed that the Subdivision or Improvement be accomplished in a manner contrary to the wishes and desires of SUBDIVIDER, and SUBDIVIDER filed a written objection with the City Engineer before commencing such work or Improvement.
8. WARRANTY OF WORK. SUBDIVIDER warrants that the Improvements will be constructed in a manner consistent with CITY’s specifications and the highest industry standards. Should any Improvement fail to comply with this warranty or any other provision of this Agreement within one year after CITY’s final acceptance, SUBDIVIDER must, without delay and without cost to CITY, repair, replace or reconstruct any defective or otherwise unsatisfactory part or parts of the Improvements to meet the 7 3
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City’s standards and specifications. Should SUBDIVIDER fail to act promptly or in accordance with this requirement or should the exigencies of the case require repairs or replacements to be made before SUBDIVIDER can be notified, CITY may, at its option, and after written notice and a 30-day cure period, make the necessary repairs or replacements or perform the necessary work and SUBDIVIDER must pay to CITY the actual cost of such repairs plus 15% for CITY’s administrative overhead costs. This Section is not a waiver of any other right CITY may have for correcting faulty workmanship or defective materials.
9. REPAIRS AND REPLACEMENTS. SUBDIVIDER must replace/repair, as appropriate, all pipes and monuments shown on the Map destroyed or damaged by SUBDIVIDER’s actions and to replace/repair, as appropriate, any property damaged or destroyed by SUBDIVIDER. Any such repair or replacement must be completed to the CITY’s standards and specifications.
10. CITY’S RIGHT OF ENTRY. SUBDIVIDER grants City a license to enter SUBDIVIDER’s property to inspect the improvements constructed by SUBDIVIDER and to ensure compliance with this Agreement.
11. CONTRACT SECURITY.
A. Concurrently with the execution of this Agreement, SUBDIVIDER must furnish:
i. A surety bond in an amount equal to at least 100% of the estimated cost of improvements as security for the faithful performance of this Agreement;
ii. A separate surety bond in an amount equal to at least 100% of the contract price for said improvements as security for the payment of all persons performing labor and furnishing materials in connection with this Agreement.
B. SUBDIVIDER agrees that the form of the bonds provided by CITY are substantially similar to Government Code §§ 66499.1 and 66499.2.
12. PERFORMANCE BY CITY OR SURETY.
A. Should SUBDIVIDER fail to construct the improvements in the manner and at such locations as specified within the time requirements of this Agreement, or if SUBDIVIDER is not carrying out the intent of this Agreement, CITY may serve written notice upon SUBDIVIDER and the surety on SUBDIVIDER’s faithful performance bond demanding satisfactory compliance with this Agreement.
B. Should CITY serve such written notice, CITY may do any one, or 8 4
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combination of, the following:
i. Serve written notice upon the surety on its faithful performance bond demanding satisfactory compliance with this Agreement. In such event the surety must, within five days, assume control and construct the Improvements as SUBDIVIDER’s successor;
ii. CITY may construct the improvements itself, or by contract, at SUBDIVIDER’s expense on a time a materials basis, following written notice and a 30-day cure period. In such event, CITY may take possession of and utilize in completing improvement construction, materials, appliances, and other property belonging to SUBDIVIDER as may be on the site of the work without liability to CITY. SUBDIVIDER’s surety will be liable to CITY for any excess cost of damages incurred by CITY.
C. Nothing in this Section waives, or serves as a limitation upon, any additional remedy CITY may have under this Agreement or applicable law.
13. SURETY BOND TO INCLUDE LETTER OF CREDIT. The term “surety bond” also includes such other acceptable security, such as letters of credit or cash deposit agreements issued by responsible financial institutions, which are approved by the City Attorney. The term “surety” includes the issuer of any letter of credit or cash deposit agreement, which is acceptable to CITY as security for the performance of this Agreement. Sureties must be admitted to do business in California.
14. BEST MANAGEMENT PRACTICES. SUBDIVIDER agrees to use best management practices (“BMPs”), as that term is defined under applicable law including, without limitation, the Simi Valley Municipal Code, in constructing the improvements anticipated by this Agreement. SUBDIVIDER’s failure to comply with the terms of this Section constitutes a material breach of this Agreement.
15. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by SUBDIVIDER under this Agreement are CITY’s property. SUBDIVIDER may retain copies of said documents and materials as desired, but must deliver all original materials to CITY upon CITY’s written notice.
16. INDEPENDENT CONTRACTOR. CITY and SUBDIVIDER agree that SUBDIVIDER will act as an independent contractor and will have control of all work and the manner in which is it performed. SUBDIVIDER will be free to contract for similar service to be performed for other employers while under contract with CITY. SUBDIVIDER is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct SUBDIVIDER as to the details of doing the work or to exercise a measure of control over the work means that SUBDIVIDER will follow the direction of CITY as to end results of the work only. 9 5
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17. CASH CHARGES. SUBDIVIDER must pay to CITY in cash such subdivision fees that are established by ordinance or by the City Council in conferring approval or extension of time to the Subdivision.
18. INDEMNIFICATION.
A. SUBDIVIDER indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney’s fees), injuries, or liability, arising out of this Agreement, or its performance. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, SUBDIVIDER must defend CITY (at CITY’s request and with counsel satisfactory to CITY) and indemnify C ITY for any judgment rendered against it or any sums paid out in settlement or otherwise.
B. For purposes of this section “ CITY” includes CITY’s officers, officials, employees, agents, representatives, and certified volunteers.
C. The Parties agree that this section will survive termination of this Agreement.
D. The requirements as to the types and limits of insurance coverage to be maintained by SUBDIVIDER, and any approval of such insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by SUBIDIVIDER pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification.
19. INSURANCE.
A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, SUBDIVIDER must procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below:
Type of Insurance
Limits (combined single)
Commercial general liability: $2,000,000
Professional Liability $2,000,000
Workers compensation statutory requirement
B. Commercial general liability insurance must meet or exceed the requirements of ISO-CGL Form No. CG 00 01 11 85 or 88. The amount of insurance set forth above will be a combined single limit per occurrence 10 6
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for bodily injury, personal injury, and property damage for the policy coverage. Liability policies must be endorsed to name CITY, its officials, and employees as “additional insureds” under said insurance coverage and to state that such insurance will be deemed “primary” such that any other insurance that may be carried by CITY will be excess thereto. Such endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88.
Such insurance will be on an “occurrence,” not a “claims made,” basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY.
C. Professional liability coverage will be on an “occurrence basis” if such coverage is available, or on a “claims made” basis if not available. When coverage is provided on a “claims made basis,” SUBDIVIDER will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover SUBDIVIDER for all claims made by CITY arising out of any errors or omissions of SUBDIVIDER, or its officers, employees or agents during the time this Agreement was in effect.
D. SUBDIVIDER must furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of “A:VII.” Certificate(s) must reflect that the insurer will provide thirty (30) day notice of any cancellation of coverage.
SUBDIVIDER will require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
20. NOTICES.
A. All notices given or required to be given pursuant to this Agreement will be in writing and may be given by personal delivery or by mail. Notice sent by mail will be addressed as follows:
If to City
If to Subdivider
City of Simi Valley Santa Susana GRF, LLC
2929 Tapo Canyon Road 973 Lomas Santa Fe Drive
Simi Valley, CA 93063 Solana Beach, CA 92075
11 7
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B. When addressed in accordance with this paragraph, notices will be deemed given upon deposit in the United States mail, postage prepaid. In all other instances, notices will be deemed given at the time of actual delivery.
C. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.
21. COMPLIANCE WITH LAW. SUBDIVIDER will comply with all laws applicable to this Agreement including, without limitation, federal, state, and local laws requiring permitting and licenses. All such compliance will be at SUBDIVIDER’s own cost.
22. CONSTRUCTION. The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party.
23. SEVERABLE. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect.
24. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement.
25. WAIVER. Waiver of any provision of this Agreement will not be deemed to constitute a waiver of any other provision, nor will such waiver constitute a continuing waiver.
26. GOVERNING LAW. This Agreement has been made in and will be construed in accordance with the laws of the State of California and exclusive venue for any action involving this Agreement will be in Ventura County.
27. AUTHORITY/MODIFICATION. This Agreement is subject to and conditioned upon approval and ratification by the Simi Valley City Council. This Agreement is not binding upon CITY until executed by the City Manager. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written agreement. CITY’s City Manager may execute any such amendment on behalf of CITY.
28. ASSIGNMENT; BINDING UPON SUCCESSORS. SUBDIVIDER may not assign or subcontract this Agreement without CITY’s written approval. Should CITY give consent, it does not relieve SUBDIVIDER from any obligations under this Agreement and any assignee or subcontractor will be considered SUBDIVIDER’s agent. The terms of this Agreement constitute a burden and benefit upon the Property. Accordingly, this 12 8
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Agreement will be recorded and the term will run with the Property and become binding upon SUBDIVIDER’s heirs, successors and assigns.
29. ENTIRE AGREEMENT. This Agreement constitutes the sole agreement between SUBDIVIDER and CITY respecting construction of the Improvements and correctly sets forth the obligations of SUBDIVIDER and CITY. There are no other understandings, terms or other agreements expressed or implied, oral or written.
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.
CITY OF SIMI VALLEY, SANTA SUSANA GRF2, LLC
a Municipal Corporation
_____________________________ By:
Samantha C. Argabrite, City Manager
Print Name:
Title:
City Council Approval:
ATTEST:
_____________________________
Lucy Blanco, City Clerk
APPROVED AS TO FORM:
Algeria R. Ford, City Attorney
13 105201\18280626
- i -
EXHIBIT A
Parcel Map TP-S-2021-0001
All improvements marked are included:
(X) Public street improvements including grading, paving, curbs, gutter, sidewalks, traffic control devices, street name signs, street lights, street landscaping, and appurtenances.
(_) Domestic water supply system, including mains, service laterals, fire hydrants, and appurtenances.
(_) Public storm drains including channels, pipes, inlets, culverts, and appurtenances.
(_) Lot grading including land clearing, earth moving compaction, import or export of soil, and appurtenances.
(_) Off-street landscaping including trees, bushes, shrubs, turf, irrigation system, and appurtenances.
14