ITEM 4. 11 CYTY M IV lGER' S IZEPOFZT MAl( g1, 2020 CITY COIDNCIL REGULAR NIEETING ITEMI: APPROVl4l. OF P FtCEL M P 20- 02, DEDICATION OF PARCEL 5 TO TIiE CITI(, SUBDIVISI019 IMPRO dEMENT 4C9REEMENT, AIVD ) OI IT ESCROW IfVSTI lJCTIOIVS FOFZ IVOItTH CROSSROADS IISIIVESS CENTER FtECOMN1EfVD 1TIOIV: Adopt Itesolution Approving the iVorth Crossroads usiness Center Parcel Map 20- 02, Totaling Five ( 5) Lots, Accepting Dedication to the City of Parcel 5, and Approvir g Subdivision Irvoprovernent Agreement anci Related 7oint Escrowr Instructions SUMW1a4RY: The applicants, ASP/ RWM Properties, R& B Louise, LLC, and R& 6 Delta, LLC, collectively Reynolds & Brown, requests approval of Parcel Map 20- 02 ( Parcel Map) for the North Crossroads Business Center project, totaling five ( 5) lots. As required by the City' s subdivision ordinance, approval of the Parcel Map must also involve approval of a Subdivision Improvement Agreement ( SIA) to guarantee certain off- site and on- site improvements associated with the Parcel Map. The SIA requires Reynolds Brown to deposit cash to the City for the construction of some improvements with the City Capital Improvement Project ( CIP) for E. Louise Avenue CIP PS 18- 01. In addition, the SIA requires Reynolds & Brown to guarantee improvements with an Encroachment Permit ( EP) and two Deferred Frontage Improvement Agreements DFIAs), all to be approved in conjunction with the Parcel Map. BACICGROUND: On May 30, 2018, City of Lathrop Planning Commission adopted Resolution No. 18- 13 and Resolution IVo. 18- 14 adopting the Initial Study/ Mitigated Negative Declaration and approving Site Plan Review No. SPR- 18- 17 for the North Crossroads Business Center Project, respectively. On June 11, 2018, City of Lathrop City Council adopted Resolution No. 18- 4413 approving Tentative Parcel Map No. TPM- 18- 18 ( TPM) for the North Crossroads Business Center project. The plans and Consolidated Conditions of Approval associated with TPM- 18- 18 were approved on May 30, 2018. Reynolds & Brown requests approval of Parcel Map 20- 02 ( Parcel Map), included as Attachment B", for the North Crossroads Business Center project, totaling five ( 5) lots. As required by the City' s subdivision ordinance, approval of the Parcel Map must also involve approval of a Subdivision Improvement Agreement ( SI,4), included as Attachment C", to guarantee certain off- site and on- site improvements associated with the Parcel Map. The SIA requires Reynolds & Brown to deposit cash to the City for the construction of some improvements with the City Capital Improvement Project CIP) for E. Louise Avenue. CITY MANAGER' S REPORT PAGE 2 MAY 11, 2020 CITY COUNCIL REGULAR MEETING APPROVAL OF PARCEL MAP 20- 02, SIA, AND 70INT ESCROW INSTRUCTIONS FOR NORTH CROSSROADS BUSIfVESS CENTER AIVD ACCEPT PARCEL 5 In addition, the SIA requires Reynolds & Brown to guarantee improvements with an Encroachment Permit ( EP) and two Deferred Frontage Improvement Agreements DFIAs), all to be approved in conjunction with the Parcel Map. Reynolds & Brown Attachment " F". and the City have approved joint escrow instructions, included as Upon approval of the Parcel Map by Council, the Public Works Director will sign and record the DFIA' s. The City is completing the preparation of improvement plans for a capital improvement project to reconstruct the failing pavement on Louise Avenue between Harlan Road and Howland Road. Some of the required improvements by Reynolds and Brown would be in the same area as the pavement reconstruction project. Rather than have two construction projects occur at the same time, in the same place, City staff suggested the City install some of the improvements, at the cost of Reynolds and Brown. Pursuant to the SIA requirements, Reynolds & Brown will deposit cash to the City in the amount of $ 1, 403, 887. 80 in escrow to fund construction of a portion of the E. Louise improvements required by the Parcel Map to be built by the City CIP for Avenue. Some of the Reynolds & Brown improvements including construction of the medians, curb and gutter, pavement, deceleration lanes, traffic signal modifications, sidewalk, curb ramps, signing and striping were combined with the City CIP improvements to ensure a similar product for E. Louise Avenue as well as to align the timing of the construction between the City and Reynolds & Brown. Reynolds & Brown has obtained approved EP No. 2020- 008 from the City to guarantee certain improvements including fire hydrants and water service laterals and meters. An EP was required to ensure the construction of these improvements prior to the start of the City CIP as to not require Reynolds & Brown to cut into the newly paved roadway constructed by the City CIP. Reynolds & Brown has executed and will record two DFIAs with the City in escrow. The first DFIA guarantees landscape improvements for the medians and shoulder of E. Louise Avenue. These improvements will be deferred until the completion of the City CIP to ensure that the construction of the medians, sidewalk, and curb and gutter are completed prior to the installation of the landscaping. The second DFIA guarantees Reynolds & Brown' s contribution to 50% of the cost of undergrounding the overhead utilities on the north side of E. Louise Avenue at a later date. Parcel 5 of the Parcel Map has minimal benefit to Reynolds & Brown and will therefore be conveyed to the City with an Offer of Dedication in Fee, which is to be recorded in conjunction with the Parcel Map. Reynolds & Brown has offered dedication to the City Public Utility Easement ( PUE), Public Right of Way ( ROW) and Emergency Vehicle Access Easement ( EVAE) for the designated remainder of the Parcel Map. The PUE and ROW will accommodate the required right turn deceleration lane into the project for the eastbound E. Louise Avenue approach to Cambridge Drive. CITY MANAGER' S REPORT PAGE 3 MAY 11, 2020 CITY COUNCIL REGULAR MEETING APPROVAL OF PARCEL MAP 20- 02, SIA, AND 70INT ESCROW INSTRUCTIONS FOR NORTH CROSSROADS BUSINESS CENTER AND ACCEPT PARCEL 5 Reynolds & Brown has guaranteed completion of all public improvements on Parcel Map 20- 02 in accordance with the provisions of the SIA, as identified on the approved improvement plans, and has completed or guaranteed completion of all required documents and payment of all fees in accordance with the applicable Conditions of Approval. Upon City acceptance of the improvements to be constructed by Reynolds Brown as complete, a one- year warranty bond will be required to secure Reynolds Brown' s obligation to repair construction defects encountered during the one- year warranty bond period. The grading plans for the first building, to be occupied by Kraft- Heinz and to be located on Parcel 3, have been submitted and reviewed by Staff but the permits have yet to be issued. Staff has confirmed that all Conditions of Approval of the TPM required for approval of Parcel Map have been completed, including, without limitation, those Conditions of Approval that relate to the Subdivision Improvement Agreement. The City Engineer has confirmed that Parcel Map 20- 02 is substantially the same as it appeared on the TPM, is technically correct, and complies with the applicable requirements of the Subdivision Map Act and Lathrop Municipal Code, Chapter 16. Staff has determined that the funding of a Capital Facilities District ( CFD) by Reynolds Brown will not be required prior to the approval of the Parcel Map as most of the improvements are being reconstructed. Reynolds & Brown, in conjunction with City staff review, has provided the Parcel Map, the Subdivision Improvement Agreement, improvement plans, and all other required documents and fees necessary ( as discussed above and in the attached Resolution) prior to the City Council considering Parcel Map 20- 02 for approval and recordation. This includes the following documents and fees: Documents Status Council approval 1. Parcel Map 20- 02 with this item Council approval 2. Subdivision Improvement Agreement with this item Will receive in 3. Cash Deposit escrow 4. Encroachment Permit Approved 5. Geotechnical Report Completed Council approval 6. Joint Escrow Instructions for Recordation of Parcel Map 20- 02 with this item 7. Purchase and allocation of water and sewer to each To be completed Parcel in escrow 8. Submitted Certificate of Insurance Received CITY MANAGER' S REPORT PAGE 4 MAY 11, 2020 CITY COUNCIL REGULAR MEETING APPROVAL OF PARCEL MAP 20- 02, SIA, AND JOINT ESCROW INSTRUCTIONS FOR NORTH CROSSROADS BUSINESS CENTER AND ACCEPT PARCEL 5 9. Submitted Tax Letter Received 10. Submitted Guarantee of Title Received Plans Status 1. Traffic Signal ( Cambridge Drive & E. Louise Avenue) Approved 2. Offsite Improvement Approved 3. Offsite Landscape Approved 4. Street Light Approved Fees Status 1. Parcel Ma Plan Check Paid 2. Im rovement Plans- Plan Check and Ins ection Fees Paid REASON FOR RECOMMENDATION: Reynolds & Brown has furnished the City with the necessary documents to complete the processing of the Parcel Map and all required fees, as detailed more fully above and in the attached Resolution. North Crossroads Business Center Parcel Map 20- 02 conforms to the requirements of the Subdivision Map Act and Conditions of Approval. FISCAL IMPACT: There is no fiscal impact to the City by this action. City costs are covered by development fees. ATTACHMENTS: A. Resolution Approving the North Crossroads Business Center Parcel Map 20- 02, Totaling Five ( 5) Lots, Accepting Dedication to the City of Parcel 5, and Approving