HomeMy WebLinkAboutItem 5d. Partial Acceptance of Public Improvements and Certification of Required Private Improvements, Avila Ranch Phase I Item 5d
Department: Community Development
Cost Center: 4003
For Agenda of: 2/21/2023
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Nate Stong, Senior Civil Engineer
SUBJECT: PARTIAL ACCEPTANCE OF PUBLIC IMPROVEMENTS AND
CERTIFICATION OF COMPLETION OF REQUIRED PRIVATE
IMPROVEMENTS FOR TRACT 3089 AVILA RANCH PHASE 1
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, accepting the completed Public Improvements for Tract 3089-1;
certifying the completed Private Subdivision Improvements for Tract 3089 -1; releasing the
Securities for the completed portions of Tract 3089 -1; and authorizing the Director of Public
Works to release the remaining Securities once all Phase 1 Improvements are deemed
complete” for the Avila Ranch Subdivision.
POLICY CONTEXT
The City Council accepts public improvements, certifies completion of private
improvements, and releases securities in accordance with the Subdivision Map Act Section
66499.7 and City Subdivision Regulations Section 16.20.210.
DISCUSSION
Tract 3089 Avila Ranch is located at 175 Venture Drive. Figure 1 presents a vicinity map
with the area of completed improvements highlighted in yellow. Note that a portion of Phase
3, including Earthwood Lane, was constructed concurrently with Phase 1.
Background
The Tract 3089 Phase 1 map created a total of 192 lots consisting of:
179 single-family residential units (Lots 1 to 28, Lots 31 to 86, Lots 88 to 182). These
are all the single-family residential units that were included in the Phase 1 tentative map.
Three out-of-phase lots for multi-family (Lots 185, 186, and 188), These lots were
originally planned to be created and developed in Phase 3.
Four public park lots (Lots 30, 87, 183, 189)
Two lots for public open space (Lot A and Lot 184)
Two lots for public facilities (Lot 29 for sewer lift station & Lot 187 for interim fire station)
Two lots for future phases of the subdivision (Lots 190 and 191)
Page 25 of 463
Item 5d
Figure 1: Phasing Map
Partial Acceptance of Public Improvements
Work has been completed for the majority of the required Phase 1 public in-tract and
offsite improvements. In general, the improvements consist of street construction, curb,
gutter, sidewalks, Class 1 multi-use paths, pedestrian paseos, streetlights, water main
and sewer main extensions, fire hydrants, reclaimed water main, storm drain and
stormwater quality improvements, parkways and landscaping. Earthwood Lane has been
constructed providing a connection between Suburban Drive and Vachell Lane. Venture
Drive has been extended to intersect Earthwood Lane at a new roundabout.
Off-Site Transportation Improvements
The public improvements include multiple off-site transportation improvements to mitigate
for the increase in traffic generated by the development as required by the project
conditions of approval, mitigation measures (MM), and the Development Agreement. The
off-site improvements completed with Phase 1 include:
1. Extension of Earthwood Lane to Suburban Road [Condition #101]
2. Suburban Road Improvements, S. Higuera to Earthwood [ Condition #102]
3. Sidewalk on portions of Vachell Lane [Condition #124]
4. Intersection improvements at South Street/Higuera Street [Conditions #112]
5. Intersection improvements at Tank Farm Road / S. Higuera Street [Condition
#114/MM TRANS-7b]
Page 26 of 463
Item 5d
Off-Site Improvements in the County
The following offsite improvements located outside the City Limits were constructed under
a County encroachment permit and will be maintained by the County:
1. Extension of Buckley Road from Vachell Lane to South Higuera Street and
installation of a traffic signal at the newly created intersection [Condition #100]
2. Installation of Class II bicycle lanes along Vachell Lane between Buckley Road
and South Higuera Street [Condition #105]
Private Subdivision Improvements
Tract 3089-1 includes certain improvements to be privately maintained, including the
private common driveways and the underlying utilities and storm drain improvements.
These private driveways are connected to the public street system and serve anywhere
from four to eight single family dwellings.
Authorizing the Director of Public Works to Accept Remaining Improvements and
Release Remaining Securities
The Draft Resolution (Attachment A) includes acceptance of the completed portions of
these improvements with a commensurate reduction of the securities for the work that is
completed, and authorizes the Public Works Director to accept the remaining public
improvements once they are deemed complete and release the remaining securities.
Previous Council or Advisory Body Action
A vesting tentative tract map for Tract 3089 was approved by the City Council on
September 19, 2017, by Resolution No. 10832 (2017 Series).
The Development Agreement was adopted by the City Council on October 3, 2017, by
Ordinance No. 1639 (2017 Series).
Avila Ranch Community Facilities District (CFD) No. 2017-1 was created by Ordinance
No. 1642 (2017 Series), which levies a special tax within the CFD providing a funding
source for maintenance and operation of facilities within the District.
The final map for Tract 3089 Phase 1 was approved by City Co uncil on December 4,
2018, by Resolution No. 10968 (2018 Series).
Public Engagement
Public Engagement was completed with the approval of the Tentative Map and the
development of the Avila Ranch Development Plan.
CONCURRENCE
The Public Works Director and the Utilities Director concur with the recommended action.
Page 27 of 463
Item 5d
ENVIRONMENTAL REVIEW
There is no environmental review associated with the acceptance of these improvements.
Prior Environmental review consisted of the review of the Avila Ranch Development Plan
and its Final Environmental Impact Report in September 2017.
FISCAL IMPACT
Budgeted: Yes Budget Year: Annually beginning 2022-23
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Current FY
Cost
Current Budget
Remaining
Balance
Future
Annual
Ongoing
Cost (Offset
by CFD
Revenue)
General Fund
State
Federal
Fees
Other: CFD $160,900 $160,900 $1.7 million
Total $160,900 $160,900 $0 $1.7 million
Community Facilities District (CFD)
The CFD for Avila Ranch was established to fund both services and infrastructure
maintenance. The CFD closes the gap between anticipated general fund revenue
generated by the development and projected costs . Avila Ranch was originally annexed
into the City as commercial land. The City’s Master Tax Exchange Agreement with the
County provides the City with 100% of the sales generated on commercial land, but none
off the property tax. With the 2014 General Plan Update, Avila Ranch was rezoned for
residential development, but without any property tax to cover the costs of services and
maintenance. As a result, a Community Facilities District was established to cover the
ongoing costs of the development, such as police and fire, and to maintain the public
infrastructure including parks, streets, sidewalks, parkways, open space, and storm
drainage systems. Maintenance of water and sewer infrastructure in Tract 3089 will be
funded the same as the rest of the citywide system via the enterprise program. The funds
for the CFD will be collected by the County with the regular property tax assessments and
then transferred to the City. Fiscal Year 2022-23 was the first fiscal year that the City
budgeted for and collected taxes under the CFD, totaling $160,900.
Page 28 of 463
Item 5d
The CFD structure is designed to be revenue neutral to the City to fund the cost of
services and infrastructure maintenance in the Avila Ranch neighborhood. The CFD is
analyzed each year and increased incrementally as more of the CFD-maintained services
and improvements come online. Each year, the City levies a tax to parcels in the CFD for
projected costs. An analysis of the annual costs to provide the services and infrastructure
maintenance to the Avila Ranch development, including administration, is estimated to
be $1.7 million at buildout. The CFD is estimated to generate $1.7 million in annual
revenue at buildout, therefore no fiscal impact is anticipated. This equates to about $200
per month per unit but alleviates the need for a homeowner’s association. This cost has
previously been determined to be within the City’s financial plan policy limits for total
property tax burden.
The CFD1 provides for the following authorized services:
1. Maintenance and lighting of parks, parkways, streets, roads and
open space.
2. Flood and storm protection services, including storm drainage
systems.
3. Police, fire protection and suppression services; ambulance and
paramedic services.
4. Maintenance and operation of any real property or other tangible
property with an estimated useful life of five or more years owned by
the local agency pursuant to an agreement entered into under
Section 53316.2.
5. Maintenance and operation of a new sewer lift station located on Lot
29.
County/City Maintenance of Streets
Tract 3089 was annexed into the City with the Airport Area Annexation in 2008 except for
the portions of Buckley Road and Vachell Lane fronting Tract 3089 remain in the County.
The recently constructed Buckley Road extension to South Higuera is also located in the
County. County Development Review personnel have indicated that the County will
continue to maintain the Vachell and Buckley Street frontages, including the widened
portions.
The City and County have continued in discussions regarding a proposed maintenance
agreement related to the interface between the subdivision improvements that are located
within the tract boundary and those that are located in the County. The agreement will
be developed in conjunction with the improvements required for future map/development
phases.
1 Ordinance No. 1642 (2017 Series) created the Avila Ranch Community Facilities District (CFD) No. 2017-
1 and levied a special tax against non-exempt real property within the CFD.
Page 29 of 463
Item 5d
ALTERNATIVES
Council could decide to continue consideration of the request. Ultimately, however,
acceptance of the public improvements is required in accordance with the Development
Agreement, Tentative and Final Map approvals, and Department of Real Estate process
assumptions. Limited alternatives exist and only regarding the timing of acceptance of
these improvements.
ATTACHMENTS
A - Draft Resolution accepting the completed public improvements, certifying the private
subdivision improvements, and releasing the securities for completed portions of Tract
3089-1
Page 30 of 463
R ______
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING THE COMPLETED PUBLIC
IMPROVEMENTS FOR TRACT 3089-1; CERTIFYING THE COMPLETED
PRIVATE SUBDIVISION IMPROVEMENTS FOR TRACT 3089-1;
RELEASING THE SECURITIES FOR THE COMPLETED PORTIONS OF
TRACT 3089-1; AND AUTHORIZING THE DIRECTOR OF PUBLIC
WORKS TO RELEASE THE REMAINING SECURITIES ONCE ALL
PHASE 1 IMPROVEMENTS ARE DEEMED COMPLETE
WHEREAS, the City Council made certain findings concerning Tract 3089, as
prescribed in Resolution 10832 (2017 Series); and
WHEREAS, the City Council created the Avila Ranch Community Facilities District
No. 2017-1 by Ordinance No. 1642 (2017 Series); and
WHEREAS, the City Council approved the final map for Tract 3089 Phase 1 (Tract
3089-1) per Resolution 10968 (2018 Series); and
WHEREAS, the subdivider has satisfactorily completed the majority of the required
public improvements in accordance with City standards, specifications, and the
subdivision agreement; and has requested the City accept these public improvements for
maintenance and operation by the City; and
WHEREAS, the subdivider has satisfactorily completed a portion of the private
improvements in accordance with City standards, specifications, and the approved plans;
and has requested the City certify completion of these private improvements; and
WHEREAS, the subdivider constructed off -site improvements, located outside the
City limits under a County encroachment permit, which will be maintained by the County
pursuant to a forthcoming agreement between the City and the County. These
improvements include the extension of Buckley Road from Vachell Lane to South Higuera
Street, installation of a traffic signal at the now-existing intersection at South Higuera and
Buckley Road, and frontage improvements to Buckley Road and Vachell Lane ; and
WHEREAS, the subdivider has on file the appropriate securities to guarantee the
completion of the remaining Phase 1 subdivision improvements as shown on the
approved plans.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
Page 31 of 463
Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 1. The City Council hereby accepts a portion of the public
improvements for Tract 3089-1, excluding improvements located in the County of San
Luis Obispo (the extension of Buckley Road from Vachell Lane to South Higuera Street ,
a new traffic signal at the new intersection of Buckley Road an d South Higuera Street,
and frontage improvements to Buckley Road and Vachell Lane), specifically as follows:
a) The public improvements for Earthwood Lane, Venture Drive, Tango Way,
Delta Drive, Bravo Street, Alpha Lane and Bravo Court; and
b) Off-site improvements including:
i. Extension of Earthwood Lane to Suburban Road
ii. Suburban Road Improvements, South Higuera to Earthwood Lane
iii. Sidewalk on portions of Vachell Lane [Condition #124]
iv. Intersection improvements at South Street / Higuera Street
v. Intersection improvements at Tank Farm Road / South Higuera Street
SECTION 2. The City Council hereby certifies completion of a portion of the
required private subdivision improvements within the Tract 3089-1 boundary.
SECTION 3. The Faithful Performance securities guaranteeing completion of the
on-site and off-site public improvements may be reduced with the approval of the Director
of Public Works upon submittal of the following items:
1. Progress record drawings for the completed improvements; and
2. Certification by the Engineer of Record for the completion of the public
improvements.
SECTION 4. The corresponding Labor & Materials security may be released after
90 days from the date of acceptance of the improvements, or after 60 days from the date
of recordation of a Notice of Completion, in accordance with Section 66499.7(h) of the
California Government Code.
SECTION 5. The Director of Public Works is hereby authorized to accept the
remaining improvements and to release the remaining securities on behalf of the City
Council once the work is completed to the City’s satisfaction.
Page 32 of 463
Resolution No. _____ (2023 Series) Page 3
R ______
SECTION 6. The security guaranteeing the workmanship and materials may be
released by the Director of Public Works upon the successful completion of the 12 -month
warranty time period from the date of acceptance of the improvements.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2023.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 33 of 463
Page 34 of 463