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Home My WebLink About5/2/2018 - STAFF REPORTS - 4B 4��?A`M SA4 �Z c u v k f k ~ fI09FTtj9� k 4,F001 City Council Staff Report DATE: May 2, 2018 NEW BUSINESS SUBJECT: APPROVAL OF TIME EXTENSIONS OF SUBDIVISION IMPROVEMENT AGREEMENTS FOR TM 32233; TM 32233-2; TM 32233-5; TM 36548; TM 36738 FROM: David H. Ready, City Manager BY: Engineering Services Department SUMMARY This action will address the current status of subdivision that are active and making progress towards the completion of public improvements. To ensure these legal remedies remain available to the City, it is important that the City Council approve this action to preserve the City's rights to file claims against the Subdivider's bonds in the event the Subdivider is unwilling or unable to complete the public improvements. This action does not extend the subdivision entitlements, as all of these projects are vested, and building permits have been issued. RECOMMENDATION: Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING TIME EXTENSIONS OF SUBDIVISION IMPROVEMENT AGREEMENTS FOR TM 32233; TM 32233-2; TM 32233-5; TM 36548; TM 36738 ." BACKGROUND: Subdivision Improvement Agreements require the Subdivider to provide the City with securities for the cost of on-site and off-site Public Improvements and generally provides for a 2-year period to complete all works of improvement. The approval of SIAs are established concurrent with Council's approval of a subdivisions final Map. The purpose of SIA are to secure completion of works of improvement. If the Subdivider fails to construct all the necessary public improvements to within the 2-year period, the City retains the ability to call the securities necessary to complete the public improvements. City Council previously approved en masse a one-year time extension to various subdivision improvement agreements due to the effects the recession had on the real estate market and economy. Although development has resumed and new subdivisions are under construction a few previously stalled subdivisions have yet to complete the works of improvement. ITEM N0. City Council Staff Report May 2, 2018 -- Page 2 Time Extension of Subdivision Improvement Agreements TM 32233,TM 32233-2,TM 32233-5 TM 36548, TM 36738 STAFF ANALYSIS: The subdivision seeking time extensions have been identified in Table 1, which outline each subdivision and the corresponding approvals, such as: Map and SIA approval by Council, time extensions granted to date, the current expiration date, followed by the proposed time extension. Staff continue to monitor the current construction and remain in daily contact with the site manager during active construction. Extending these the SIA's secures funds to complete the public improvements if the subdivider failed to complete the public improvements. These Subdivisions requesting Time Extensions are currently under active construction, and have identified the current construction schedules for completion of improvements. 2018 SUBDIVSION IMPROVEMENT AGREEMENT TIME EXTENSIONS PROPOSED TRACT MAP SUBDIVIDER SUBDIVISION MAP TIME EXPIRES TIMEEXTENSION APPROVAL EXTENDED CDCG ESCENA LLC,A DELAWARE 32233 LIWED LIABILITY COMPANY AND BEAZER ESCENA 411812014 - 4/16/2016 4/162019 3-YEAR HOMES HOLDINGS CORP_,A DELAWARE CORPORATION 32233.2 ALTA VERDE HOME,LLC,A CALIFORMA ESCENA 5142005 11-YEARS 4122018 412WIg 1-YEAR LIMITED LIABILITY COMPANY 32233-5 TOLL,CA I.L.P.,A CAUFORNIA LIMITED ESCENA 12IM013 3-YEARS 8/102018 &102019 1-YEAR PARTNERSHIP 3654E DAKOTA PS,LLC,A CALIFORNIA LIMITED DAKOTA 11142014 - 11142016 11/42019 3-YEAR LIBABILITY CORPORATION 38738 PALM RIDGE HOUSING,LLC,A DELAWARE SKYE 922015 - 922017 90201E 2-YEAR LIMITED LIABILITY COMPANY Table 1 The City Council's formal approval of a time extension to the Subdivision Improvement Agreements establishes a public record of the action, and ensures that the surety companies continue to acknowledge the validity of the agreement and the City's ability to use the securities in the event of a Subdivider's default of the Agreement. Extending these SIA's will allow staff to contact the Subdivider, notifying them of the required remaining works of improvement, and furthermore failure to respond and complete these public improvements will result in the City filing a claim against the Subdivider's surety provided by their Agreement. 002 City Council Staff Report May 2, 2018-- Page 3 Time Extension of Subdivision Improvement Agreements TM 32233,TM 32233-2,TM 32233-•5 TM 36548, TM 36738 Tract Map 32233, "Escena", extend to April 16, 2019 Tract Map 32233 is one phase of residential development and includes 72 residential lots located within the Escena development shown here in Figure 1. w � bh 4 N i t t e yy �' 4 rM $ f Figure 1 On-Site Public Improvements are substantially complete. This development has ten home currently under construction and four remaining. Construction is anticipated to continue over the next year. The property owner has deferred final paving improvements until completion of housing construction. Council approved final Map and Subdivision Improvement Agreement on April 16, 2014, and subsequently the Subdivision Improvement Agreement's standard 2-year term has since expired. Therefore, a recommendation for a 3-year time extension to complete all construction and works of improvement. If on-site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Owner: Beazer Homes ,Q03 City Council Staff Report May 2, 2018-- Page 4 Time Extension of Subdivision Improvement Agreements TM 32233,TM 32233-2,TM 32233-•5 TM 36548, TM 36738 p r a .A �•, • m� These images depict the current activity and state of TM 32233 < y � + } 0 0 Y City Council Staff Report May 2, 2018 -- Page 5 Time Extension of Subdivision Improvement Agreements TM 32233,TM 32233-2,TM 32233-5 TM 36548, TM 36738 Tract Map 32233-Z "Escena", extend to April 2, 2019 Tract Map 32233-2 is the second phase of residential development and includes 145 residential lots located within the Escena development shown here in Figure 2. ' Fig re 2 On May 4, 2005, City Council approved a Final Map for Tract No. 32233-2, a 145 lot single family subdivision and a corresponding Subdivision Improvement Agreement (Agreement No. 5087) with the Subdivider, Palm Springs Classic, LLC, a Delaware Limited Liability Company. Public improvements are substantially complete with ongoing construction anticipated to continue for an additional year. The property owner had previously deferred final paving improvements, until the completion of housing construction. M 1 YSY ..A3t+ddP., 11A9A�.•YYrrrr .: , + 9 7 ell r. Rf "' 0 0 5 City Council Staff Report May 2, 2018-- Page 6 Time Extension of Subdivision Improvement Agreements TM 32233,TM 32233-2,TM 32233-5,TM 36548, TM 36738 Staff has confirmed that final pavement improvements have been completed; with 8 of the original 145 residential lots remain unconstructed. Recommendation for a 1-year time extension to complete all construction and works of improvement. If on-site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Owner: Alta Verde/Lennar Tract Map 32233-5, "Escena'; extend to December 18, 2019 Tract Map 32233-5 is the fifth phase of residential development and includes 128 residential lots located within the Escena development shown here in Figure 3. t fa x 3 2 d „ 4 C.aa k a Figure 3 Public improvements are substantially complete with ongoing construction anticipated to continue for an additional year. Final lifts on paving have been completed, manholes and water valves have been raised to grade, and remaining works of improvements include slurry of streets, final sewer video and acceptance of the subdivision. 0dc City Council Staff Report May 2, 2018-- Page 7 Time Extension of Subdivision Improvement Agreements TM 32233,TM 32233-2,TM 32233-5 TM 36548, TM 36738 The images below depict the current activity and conditions of TM 32233-5 it011 - j r'qq _ Recommendation for a 1-year time extension to complete all construction and works of improvement. If on-site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Owner: Toll Brothers 6 City Council Staff Report May 2, 2018-- Page 8 Time Extension of Subdivision Improvement Agreements TM 32233,TM 32233-2,TM 32233-5 TM 36548, TM 36738 Tract Map 36548, "Dakota'; extended to November 4, 2019 Tract Map 36548 is a subdivision of 39 new residential lots on private streets located at the south end of Belardo Road shown here in Figure 8. Eli &I LIM Ap IN }I� tA� M:��,tl R •�yyL 'S^ y' � a.Yi... ' Figure 8 This subdivision was approved by the City Council on November 4, 2014, and construction on a portion of the on-site public improvements has commenced. Completion of the underground utilities and onsite street improvements is continuing concurrent with subsequent building phases within this subdivision by the Subdivider. The initial 2-year time for completion identified in the subdivision improvement agreement identified an expiration date of November 4, 2016. The Subdivider has initiated a request for security bond release for the public improvements that are complete. Recommendation for a 3-year time extension to complete all construction and works of improvement. If on-site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Owner: PS Dakota 0 0 s; City Council Staff Report May 2, 2018-- Page 9 Time Extension of Subdivision Improvement Agreements TM 32233,TM 32233-2,TM 32233--5 TM 36548, TM 36738 Tract Map 36738, "Skye", extended to September 2, 2019 Tract Map 36738 is a subdivision of 40 new residential lots on private streets located at on the south side of Ramon Road between Fern Canyon and Belardo Road shown here in figure 9. LlI �■�I��®- - ■■ a y :R INtt1 i + FA At ■ �l Figure 9 Construction and on-site Public Improvements are substantially complete; staff is reviewing and will be generating a punch list of remaining items. Public Improvements are anticipated to be complete by the end of 2018. The images below depict the current activity and conditions of TM 36738 Hh h r 5 a 00 ' City Council Staff Report May 2, 2018-- Page 10 Time Extension of Subdivision Improvement Agreements (TM 32233;TM 32233-2;TM 32233-5 TM 36548; TM 36738) Although works of improvement are anticipated to complete by years end, the subdivision was approved on September 2, 2015 and expired on September 2, 2017. A recommendation for a 2-year time extension will bring is necessary for the City to retain the ability to call the securities necessary to complete the public improvements. Staff. If public improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Information: Owner: Palm Ridge / Woodbridge 010 City Council Staff Report May 2, 2018--Page 11 Time Extension of Subdivision Improvement Agreements (TM 32233;TM 32233-2;TM 32233-3 TM 36548; TM 36738) ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project' as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project' means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to adopt a Resolution authorizing extension of time for performance of obligations identified in various subdivision improvement agreements, and is exempt from CEQA pursuant to Section 15378(b), in that a "Project' does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: None. SUBMITTED: Prepared by: A ��L Thoma Garcia Marcus L. Fuller Directo�of Engineering Services Assistant City Manager Approved by: David H. Ready, Es City Manager 1. Resolution Oil ATTACHMENT 1 OIL2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING TIME EXTENSIONS OF FOR SUBDIVISION IMPROVEMENT AGREEMENTS TM 32233, TM 32233-2, TM 32233-5, TM 36548, AND TM 36738 WHEREAS, the City Council has approved various subdivisions for development projects throughout the City; and WHEREAS, included with the City Council's approval of each subdivision is approval of a Subdivision Improvement Agreement between the City and Subdivider identifying certain obligations of the Subdivider, including an obligation to complete subdivision improvements within two years of commencement of work; and WHEREAS, certain residential subdivisions throughout the City at in various stages of completion and require additional time for completion of subdivision improvements; and WHEREAS, it is in the public's best interest to secure the City's security associated with the subdivision improvement agreements by granting an extension of time for completion of subdivision improvements. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council does hereby approve an extension of time for completion of subdivision improvements for the following subdivision improvement agreements, as follows: Agreement No. 6517, Tract Map 32233, extend to April 16, 2018 Agreement No. 5087, Tract Map 32233-2, extend to April 2, 2019 Agreement No. 6476, Tract Map 32233-5, extend to December 18, 2019 Agreement No. 6626, Tract Map 36548, "Dakota", extended to November 4, 2018 Agreement No. 6743, Tract Map 36738, "Skye", extended to September 2, 2019 013 Resolution No. Page 2 ADOPTED this 2"d day of May, 2018. David H. Ready, City Manager ATTEST: Anthony J. Mejia, MMC, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs May 2, 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Anthony J. Mejia, MMC, City Clerk City of Palm Springs, California Oi -