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HomeMy WebLinkAboutItem 06 - Annual Report for the Avila Ranch MMRP, Development Agreement, and Community Facilities District Department Name: Finance Cost Center: 2001 For Agenda of: March 16, 2021 Placement: Consent Estimated Time: N/A FROM: Brigitte Elke, Finance Director Prepared By: Esteban Cano, Financial Analyst – Infrastructure Financing SUBJECT: ANNUAL REPORT FOR THE AVILA RANCH MITIGATION MONITORING AND REPORTING PROGRAM, DEVELOPMENT AGREEMENT AND COMMUNITY FACILITIES DISTRICT RECOMMENDATION Receive and file the annual report for the Avila Ranch Mitigation Monitoring and Reporting Program, Development Agreement and Community Facilities District. DISCUSSION Background On September 19, 2017, the City Council approved the Development Plan, Vesting Tentative Tract (VTTM) 3089, and Development Agreement (DA) between the City and Avila Ranch, LLC. On October 24, 2017, the City Council approved the Avila Ranch Community Facilities District (CFD) Resolution of Formation. Both the DA and Mitigation Monitoring and Reporting Program (MMRP) require annual monitoring and reporting of activities per Articles 10 & 11 of the DA in addition to the annual CFD report. The following development-related activities have occurred pursuant to the approvals described above: A. Phase 1 Final Map (R-2 zone). A final map was approved on December 4, 2018 for Phase 1 of development, covering a 26-acre area, and would accommodate up to 179 dwelling units in the R-2 zone. Before development could occur a future development application for Architectural Review and Planning Commission approval would be required. B. Lot Line Adjustment. A lot-line adjustment was proposed in April 2020 to facilitate future development in the Avila Ranch area, to be coterminous with future project phases as depicted in the approved Development Plan. The Lot Line Adjustment was subsequently approved by the City Council. C. Phase 1-3 ARC Review (R-2 zone). An application for ARC review of Phases 1 through 3 of development was submitted in December 2020. This area would include up to 297 dwelling units in the R-2 zone. This application is still undergoing staff review and has not yet been scheduled for ARC consideration. Item 6 Packet Page 23 D. Public Improvements. Public Improvement Plans (PIPs) were submitted in 2018 and were approved on September 10, 2019 for some on-site and off-site improvements associated with VTTM 3089. This includes mass grading and installation of some supporting infrastructure associated with future development in the area. Off-site PIPs approved do date include: • Higuera/South Street Northbound Right Turn Pocket Extension (construction completed in late 2020) • Higuera/Suburban Road Striping Modifications (construction completed in 2020) • Vachell Lane Sidewalks and Bike Lanes • South Higuera Sidewalk and Phase 1 Improvements to South Higuera/Vachell Intersection • South Higuera/Tank Farm Road Widening for Second Southbound Left-turn Lane and Intersection Bicycle Facility Improvements • South Higuera/Vachell Phase 2 Improvements Mitigation Monitoring and Reporting Program Attachment A is the updated MMRP, showing the current status of compliance with all mitigation measures. In summary, the project is in compliance with all applicable mitigation measures required to date. In some instances, compliance is ongoing (e.g., with respect to biological and cultural resource issues). In other cases, compliance cannot yet be determined because the project has not progressed sufficiently to trigger the required mitigation (e.g., items that relate to the design of commercial buildings). Attachment B is a summarized version of the MMRP for easy reference, with all mitigation measures put in sequential order of when compliance is required. Development Agreement Implementation of the Avila Ranch project requires substantial new infrastructure to support new development, most of which is the responsibility of the developer. The approved DA for the project describes the developer's responsibilities in that regard. Section 5.05.4 of the DA also requires that a financing mechanism be established to ensure that there is no shortfall to the City's General Fund as public improvements are made and need to be maintained by the City in the future. Section 5.05.4(c) of the DA establishes that the effect on the City's General Fund be monitored annually relative to possible City expenditures needed to make up any shortfalls in the construction of various public improvements that are the responsibility of the developer. Section 5.04.2(i) of the DA establishes that Avila Ranch will pay the City reasonable staff and consultant time associated with monitoring and compliance of the Mitigation Monitoring and Reporting Program, the DA, the financing mechanism (i.e., the CFD) and all other administrative tasks associated with the adoption and implementation of the DA and project. This provision provides the City with an ongoing funding source that will be used to ensure the project is developed, operated and maintained consistent with all applicable requirements. Item 6 Packet Page 24 Attachment C summarizes the project’s current compliance status with respect to relevant provisions of the DA. As of February 2021, the developer is in compliance with all applicable requirements of the DA with respect to project milestones. As is the case with the MMRP, compliance with many provisions that are keyed to later project activities or phases cannot be determined at this time. Community Facilities District A Mello-Roos CFD was established and approved on October 24, 2017 ("Avila Ranch Community Facilities District No. 2017-1"). The CFD is the mechanism that facilitates the collection of revenue as development occurs, and that revenue is used to reimburse the City for providing public services within the district, such as, public safety, parks and street maintenance, lighting, among others. Section 10(ii) of the CFD resolution also has an annual reporting requirement, similar to the one included in the DA. The City anticipates that the first levy will be made to the CFD in fiscal year 2021-22 with occupancy of the first dwelling unit in the project. Annual Revenues and Expenditures Since the approval of the CFD in October 2017, no revenue has been collected through the CFD because no development has occurred. Although some public improvements are in progress, no public funds have been expended in that regard. Therefore, there has been no fiscal impact on the City's General Fund for the period in question. Policy Context The Avila Ranch property was originally annexed as vacant commercial land. Therefore, the City's tax sharing agreement with the County does not provide for property tax increment to be collected on behalf of the City. As a result of this circumstance, the CFD is established to provide the City with sufficient revenues to maintain public facilities within the development area. As a housing project, the past approvals have been previously determined to be consistent with Major City Goals and General Plan policies that call for the City to produce more housing. Public Engagement The annual monitoring of the Avila Ranch Development Agreement and CFD have a "notify" level of public engagement, which has been accomplished through the agenda and associated staff report. CONCURRENCE The Finance Department concurs that there has been no revenue collected through the CFD and that no funds have been expended. ENVIRONMENTAL REVIEW Annual monitoring of the Avila Ranch DA and CFD are categorically exempt from California Environmental Quality Act (CEQA) according to CEQA Guidelines Section 15306 (Information Collection) and that the action otherwise qualifies for a "general rule" exemption according to Section 15061(b)(3), which covers activities "where it can be seen with certainty Item 6 Packet Page 25 that there is no possibility that the activity in question may have a significant effect on the environment." Annual monitoring does not change any aspect of the approved Avila Ranch project, nor does it introduce the potential for any new environmental impacts. Under Section 15306, the Secretary for the California Natural Resources Agency has concluded that "basic data collection, research and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource" are exempt from CEQA. Therefore, the proposed action is categorically exempt from further analysis under CEQA. FISCAL IMPACT Budgeted: N/A Budget Year: 2020-21 Funding Identified: N/A Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Total N/A N/A N/A No revenue has been collected through the CFD because no development has occurred. Although some offsite public improvements have been completed as described above, no funds have yet been expended related to their operation and maintenance. Therefore, there is no fiscal impact associated with this annual report. ALTERNATIVES 1. Provide direction to staff regarding the annual monitoring report for the Avila Ranch MMRP, DA and CFD and continue the item to a future meeting. 2. Reject the annual monitoring report for the Avila Ranch MMRP, DA and CFD. This is not recommended since annual monitoring is a requirement of the MMRP, DA and CFD. Attachments: a - COUNCIL READING FILE - Mitigation Monitoring & Reporting Program b - Avila Ranch MMRP Compliance - Feb 2021 c - Avila Ranch DA Compliance - Feb 2021 Item 6 Packet Page 26 Avila Ranch Compliance with Development Agreement, Map Conditions, and Mitigation Measures February 2021 Mitigation Measures Item MM ID Summary Description Timing Compliance Status 1 AG-2a Install fencing and signs along Buckley to minimize trespass prior to Final Map approval plans to indicate compliance; installation to be verified in the field 2 AG-2b Landscape plans to include trees and shrubs to minimize dust prior to Final Map approval plans to indicate compliance; installation to be verified in the field 3 AG-2c Add 20-foot hedgerow of trees along east side of Vachell prior to Final Map approval plans to indicate compliance; installation to be verified in the field 4 BIO-2b Prepare Biological Mitigation Plan - habitat restoration prior to Final Map approval BMMP completed Jan 2019; need to field verify action 5 BIO-2c Prepare Biological Mitigation Plan - wetland and riparian mitigation prior to Final Map approval BMMP completed Jan 2019; need to field verify action 6 BIO-2d Preserve southern 275 feet of N-S creek to protect riparian woodland prior to Final Map approval BMMP completed Jan 2019; need to field verify action 7 BIO-2e Stockpile emergent vegetation (cattails) to plant later in realigned creek prior to Final Map approval BMMP completed Jan 2019; need to field verify action 8 BIO-2j Tank Farm Creek Class I bike bridge to be placed outside mapped riparian Bio Mitigation Plan prior to Final Map approval BMMP completed Jan 2019; need to field verify action 9 BIO-3b Implement special status species protection measures Bio Mitigation Plan prior to Final Map approval BMMP completed Jan 2019; need to field verify action 10 BIO-4 Conduct bat surveys in building proposed for demolition Bio Mitigation Plan prior to Final Map approval Plan Completed; field monirting as needed 11 BIO-5a Shield all lights facing Tank Farm Creek Bio Mitigation Plan prior to Final Map approval BMMP completed Jan 2019; need to field verify action 12 BIO-5b Tank Farm Creek restoration to include native trees to minimize light spillover Bio Mitigation Plan prior to Final Map approval BMMP completed Jan 2019; need to field verify action 13 BIO-6 All work within 100 feet of Tank Farm Creek to occur April 15-October 15 Bio Mitigation Plan prior to Final Map approval BMMP completed Jan 2019; need to field verify action 14 HYD-2a Submit Master Drainage Plan Drainage Plan prior to Final Map approval City to verify status of Master Drainage Plan 15 HYD-3a Submit Cumulative Master Drainage Plan Drainage Plan prior to Final Map approval City to verify status of Master Drainage Plan 16 HYD-3b Design bridges, culverts and drainge per City specs Drainage Plan prior to Final Map approval City to verify status of Utilities Plan 17 HYD-4a Geotech study needed for HDD areas - part of Utilities Plan Utilities Plan prior to Final Map approval City to verify status of Utilities Plan 18 HYD-4b Frac-Out Contingency Plan needed for HDD areas - part of Utilities Plan Frac-Out Plan prior to Final Map approval City to verify status of Utilities Plan 19 UT-2 Utility infrastructure subject to city approval. Applicant to construct.Utilities Plan prior to Final Map approval City to verify status of Utilities Plan 20 AQ-1a Prepare Construction Activity Management Plan (CAMP)prior to recordation of Phase 1 Final Map Completed Feb 2019; field verify as needed 21 AQ-2a Implement APCD conservation requirements prior to recordation of Phase 1 Final Map Shown on plans; need to field verify 22 AQ-2b Implement APCD AQ Handbook strategies prior to recordation of Phase 1 Final Map Shown on plans; need to field verify 23 BIO-1a Prepare Biological Mitigation Plan - implement BMPs prior to recordation of Phase 1 Final Map BMMP completed Jan 2019; need to field verify BMPs 24 PS-1 Prepare and implement Security Plan with SLOPD prior or after recordation of Phase 1 Final Map City to verify status of Security Plan 25 PS-2 Fair Share Contribution to Fire Protection Service as part of CFD prior to recordation of Phase 1 Final Map Need to verify compliance with City 26 TRANS-3b Install traffic calming measures required by Policy 8.1.3 see Map Condition 118 (Phase 1 map recordation)Compliance to be verified by Public Works 27 TRANS-5 Pro Rata share for Buckley/227 roundabout see Map Condition 116 (Phase 1 map recordation)Compliance to be verified by Public Works 28 TRANS-8a Pay LOVR subarea fee see Map Condition 126, DA 5.04.2.b (Phase 1 map rec)Compliance to be verified by Public Works 29 TRANS-8b Re-time signal at LOVR/Higuera see Map Condition 100 (Phase 1 map recordation)Compliance to be verified by Public Works 30 TRANS-14 Pay citywide TIF for Class I bike path from Buckley/Higuera to LOVR/SB101 see Map Condition 116.c (Phase 1 map recordation)Compliance to be verified by Public Works 31 TRANS-15b Pay fair share to improve Tank Farm/Horizon see Map Condition 116.f (Phase 1 map recordation)Compliance to be verified by Public Works 32 TRANS-15c Pay fair share to improve Tank Farm/Horizon see Map Condition 116.f (Phase 1 map recordation)Compliance to be verified by Public Works 33 TRANS-15d Pay fair share to improve Buckley/Vachell see Map Condition 116.g (Phase 1 map recordation)Compliance to be verified by Public Works 34 TRANS-2a Prepare Transportation Improvement Phasing Plan prior to recordation of Final Map Compliance to be verified by Public Works 35 TRANS-3a City to review roadways and driveways for compliance with City standards prior to recordation of Final Map Compliance to be verified by Public Works 36 AG-1 Agricultural Conservation Easement prior to approval of grading permits for Phase 1 and 2 To be verified by City 37 AQ-1c Develop offsite mitigation strategy 3 months before grading permits prior to approval of grading permits for Phase 1 at least 3 months prior to grading permits, coordinate with APCD 38 BIO-1b Hire biological monitor to oversee construction activities prior to approval of grading permits for Phase 1 Monitor approved; field monitoring as needed 39 BIO-2h Tank Farm Creek project activities to be performed when creek is dry prior to approval of grading permits for Phase 1 Indicated on maps; need to field verify action 40 CR-3a Retain archaeologist and Native American monitor prior to Phase 1 grading prior to approval of grading permits for Phase 1 City to approve monitor 41 CR-3b Educational materials prior to grading and construction prior to approval of grading permits for Phase 1 TBD Item 6 Packet Page 27 42 GEO-3 Prepare geotech study prior to site development prior to approval of grading permits for Phase 1 City Engineering to verify if Jan 2019 Geotech Plan review is sufficient 43 GEO-4 Geotech investigation to examine soil settlement prior to approval of grading permits for Phase 1 City Engineering to verify if Jan 2019 Geotech Plan review is sufficient 44 GEO-5 Geotech investigation to examine soil expansion prior to approval of grading permits for Phase 1 City Engineering to verify if Jan 2019 Geotech Plan review is sufficient 45 GEO-6 Geotech investigation to examine subsidence prior to approval of grading permits for Phase 1 City Engineering to verify if Jan 2019 Geotech Plan review is sufficient 46 HAZ-1 Prepare Health and Safety Plan prior to approval of grading permits for Phase 1 TBD 47 HYD-1a Submit NOI for discharge to SWRCB stormwater unit prior to approval of grading permits for Phase 1 TBD 48 HYD-1b Submit SWPPP 45 days prior to start of work prior to approval of grading permits for Phase 1 Completed Jan 2018 49 HYD-1c Install 8 drainage outlets in Tank Farm Creek during dry season (May-Oct)show on approved approved grading permits Field verification required 50 NO-1a Limit grading/construction timing to daylight hours and not on Sunday show on approved approved grading permits Field verification required 51 NO-1b Implement Noise attenuation techniques - BMPs show on approved approved grading permits Field verification required 52 TRANS-1 Prepare Construction Transportation Management Plan prior to grading permits for each phase TBD 53 AQ-1b Use low or no emission paints prior to Phase 1 building permits Field verification required 54 GEO-1 Building and infrastructure design to meet CBC prior to Phase 1 building permits Field verification required 55 GEO-7 Limit GW pumping during drought in conjunction with subsidence findings prior to Phase 1 building permits Field verification required 56 NO-3a Include noise mitigation in residential design prior to Phase 1 and 5 building permits Field verification required 57 TRANS-4 Prepare improvement plan for Horizon, Earthwood, and Suburban see Map Conditions 101, 103, 110 (Phase 1 BP and occ)Earthwood by Phase 1 occupancy; CMF timing agrees 58 TRANS-6 NB RT lane at South/Higuera intersection see Map Condition 112 (Phase 1 building permits)Completed 2020 59 TRANS-7a Higuera/Prado improvements; Prado Road widening see Map Conditions 113, 116.d (Phase 1 building permits)Compliance to be verified by Public Works 60 TRANS-7b Tank Farm/Higuera second SB LT lane see Map Condition 114 (Phase 1 BP and occupancy)Compliance to be verified by Public Works 61 TRANS-10a Add ADA sidewalks on east side of Higuera from City limit to LOVR see Map Condition 111 (Phase 1 BP and occupancy)Compliance to be verified by Public Works 62 TRANS-10b Add ADA sidewalks on east side of Higuera from Vachell to LOVR see Map Condition 111 (Phase 1 BP and occupancy)Compliance to be verified by Public Works 63 TRANS-10c Add ADA sidewalks on south side of Suburban from Higuera to Earthwood see Map Condition 111 (Phase 1 BP and occupancy)Compliance to be verified by Public Works 64 TRANS-13 Pay citywide TIF for second SB RT lane at LOVR/Higuera see Map Condition 116.b (Phase 1 building permits)Compliance to be verified by Public Works 65 TRANS-15a Pay fair share to improve Prado/Higuera see Map Condition 116.d (Phase 1 building permits)Compliance to be verified by Public Works 66 HYD-5 Prepare Development Maintenance Manual prior to occupancy of any phase TBD 67 TRANS-12 Bus stop provisions see Map Condition 117 (by occupancy of 50th Ph 1 unit)Compiance to be verified by Public Works 68 TRANS-11 Construct 2 bike bridges on Buckley over Tank Farm Creek see Map Conditions 100 and 109 (with Buckley extension)Buckley ext must start by Ph 2 building permits; done by occupancy 69 CR-2a Data Recovery measures for CA-SLO-2798/H prior to approval of grading permits for Phase 5 Field verification required; coordinate with monitor 70 CR-2b Retain monitor following grading of CA-SLO-2798/H prior to approval of grading permits for Phase 5 City to approve monitor 71 GEO-2 Retail stores--goods stacked no higher than 8 feet prior to Phase 6 building permits Field verification required 72 BIO-2g Prepare post-construction landscape and restortion report for each phase Within 60 days of installing plants Field verification required; coordinate with monitor 73 BIO-2i Hydroseed bare soils when grading is completed for each phase No later than November 15 of any construction year Field verification required; coordinate with monitor 74 BIO-3a City-approved biologist to conduct onsite training to construction workers during construction within 50 feet of creek Field verification required; coordinate with monitor 75 BIO-3c Survey for CRLF in Tank Farm Creek 48 hours prior to construction 48 hours prior to construction Field verification required; coordinate with monitor 76 BIO-3d Survey for pond turtle in Tank Farm Creek 48 hours prior to construction 48 hours prior to construction Field verification required; coordinate with monitor 77 NO-1c Contractor to inform resiednts within 300 feet of noise 10 days prior to earth movement or construction Field verification required 78 NO-3b Buckley Road rubberized asphalt prior to construction of Buckley Road Compliance to be verified by Public Works Item 6 Packet Page 28 Avila Ranch Compliance with Development Agreement, Map Conditions, and Mitigation Measures February 2021 Development Agreement Item DA ID Summary Description Responsibility Timing and Compliance Status 1 1.03.a.1 Agreement terminates on 20th anniversary of effective date (9-19-37)All Parties ongoing 2 1.03.a.2 Agreement terminates on 7th anniv of effective date if Ph 1-2 backbone infrastructure not in place All Parties ongoing 3 1.03.a.3 Agreement terminates once development and conditions are satisfied All Parties ongoing 4 1.04 Agreement must be executed 5 days after Ordinance adoption; to County Recorder within 10 days All Parties ongoing 5 5.03 Form Community Facilities District (CFD) or other financing mechanisms City ongoing; done 6 5.04.2.f Payment of fees: processing of subsequent permits and planning applications Developer as applications are made 7 5.04.2.g Reimbursement for developer improvements beyond fair share cost City according to law 8 5.04.2.i Payment of fees: staff and consulting time to process permit applications and MMRP Developer as applications are made 9 5.04.2.j Payment of fees: CDFW fees Developer before finaling NOD on any CEQA document 10 5.05.4.c City to annually monitor whether there is a General Fund shortfall from fees collected City annually 11 6.02.2 City may require oversizing of backbone infrastucture, under certain conditions City as needed 12 6.04.1 Applicant to make all reasonable efforts to purchase off-site improvement properties Developer as needed 13 7.02.1.b Developer to complete first two phases and infrastructure within 7 years of effective date Developer ongoing 14 7.02.1.c Developer to conform with phasing shown in Table Developer ongoing 15 7.03 Developer to dedicate 18.25 acres of parkland to satisfaction of PRC Developer coordinate with PRC 16 7.04 Developer to dedicate at least 50 acres of ag/open space onsite and preserve 50 acres offsite Developer applicant coordinating with City staff 17 7.05 Provide affordable and workforce housing per Exhibit G Developer applicant coordinating with City staff 18 7.07 Developer to provide accelerated compliance with energy standards Developer applicant coordinating with City staff 19 7.08.a Developer to provide accelerated compliance with Climate Action Plan Developer applicant coordinating with City staff 20 7.08.c Install water infrastructure for offsite annexations near Broad and Buckley per Exhibit H Developer applicant coordinating with City staff 21 7.08.d Developer to dedicate 20x40 land for future water well site to City on Lots 594, 406, or 398 Developer applicant coordinating with City staff 22 7.11 Construct all needed traffic improvements shown on Exhibit C; plus fair share portions of others Developer applicant coordinating with City staff 23 7.12 construct and/or fund bike improvements per Exhibit J Developer applicant coordinating with City staff 24 7.13.6 Developer to provide all cable for internet connections Developer as utilities are constructed 25 10.01 Annual evaluation of the MMRP and DA to ensure compliance City ongoing; annually 26 11.01 Annual evaluation of the MMRP to ensure compliance City ongoing; annually 27 11.02 Annual evaluation of the DA to ensure compliance City ongoing; annually 28 11.02.02 CDD to issue "Finding of Development Agreement Compliance" based on review City ongoing; annually 29 12.01 Any DA provision out of compliance must be cured within 60 days both parties ongoing 30 7.09 Build all necessary storm drain facilities Developer prior to subdivision map approval* 31 5.04.2.b Payment of fees: Citywide, AASP, LOVR Interchange, development fees (except sewer/water)Developer prior to each Final Map recordation 32 5.04.2.c Payment of fees: Sewer and Water; plus adjustment for CPI until issuance of building permits Developer prior to each Final Map recordation 33 7.13.1 Include airport hazard related language in CC&Rs Developer with CC&Rs for each subdivision 34 7.10 Build interim fire station on Lot 302 at buildout of 361st unit Develoepr prior to construction of 361st unit Item 6 Packet Page 29 BLANK PAGE This page is intended to be blank so that you can print double-sided. 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