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SARATOGA CITY COUNCIL
MEETING DATE: December 21, 2011 AGENDA ITEM:
DEPARTMENT: Public Works CITY MANAGER: Dave Anderson
PREPARED BY: Iveta Harvancik DIRECTOR: John Cherbone
Senior Engineer
SUBJECT: Subdivision Improvement Amendment and Drainage Maintenance Covenant for
Balakrishnan Trust Property
RECOMMENDED ACTION:
1. Approve Amendment to Subdivision Improvement Agreement between the Balu and Mohini
Balakrishnan Trust and the City of Saratoga.
2. Approve the Drainage Maintenance Covenant between the Balu and Mohini Balakrishnan Trust
and the City of Saratoga.
REPORT SUMMARY:
In approximately 2007, the Balu and Mohini Balakrishnan Trust dated June 9, 1993 (“Owner”) purchased
a 1996 subdivision which is comprised of three (3) parcels in the City: 503-78-036 (“Developed Parcel”),
a developed parcel on which the Balakrishnans live and have a single-family dwelling, and parcels 503-78-037 and 503-78-039, which remain undeveloped (the “Undeveloped Parcels”). The Owner executed and recorded a Subdivision Improvement Agreement (“SIA”) with the City, effective December 31, 2007 (recorded October 30, 2008), which required Works of Improvement to be
completed and Improvement Security to be furnished. The SIA and Improvement Security have been
extended the maximum number of times by the Public Works Director and once by the City Council.
The Owner’s current line of credit for improvement security is set to expire at year end.
The Owner has indicated that it does not have the intention of developing either of the Undeveloped
Parcels in the foreseeable future and would therefore like to defer the requirements under the SIA to
complete the Works of Improvement and provide the Improvement Security, until such time as it or
future owner(s) of any of the Undeveloped Parcels develop one or more of those parcels.
The attached Amendment to Subdivision Improvement Agreement, if approved, would allow deferral of
the Owner’s obligation to construct Works of Improvement and deferral of Owner’s obligation to provide
Improvement Security until such time as Owner (or future owner/s if the Owner sells one or more of the
parcels) develops either of the Undeveloped Parcels.
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As a condition of approval of the Amendment to the SIA and in order to ensure perpetual maintenance
and upkeep of the storm drainage system on the Undeveloped Parcels (which is the only utility on those
parcels, and which was installed by the original subdivider), the Owner also agrees to the terms of a
Drainage Maintenance Covenant. The Covenant, if approved, requires that the Owner maintain the storm
drainage system on the entire property to the satisfaction of the City’s Department of Public Works.
The construction of on-site or off-site improvements has not commenced; there are no public hazards or unfinished improvements. It is therefore recommended the City Council approve the Amendment, granting the deferral of the
requirement to complete Works of Improvement and deferral of the obligation to provide Improvement
Security. It is also recommended that the City Council approve the Drainage Maintenance Covenant,
requiring that the Owner maintain the storm drainage system on the property.
FISCAL IMPACTS:
None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION:
The Subdivision Improvement Amendment and Drainage Maintenance Covenant will not be executed.
ALTERNATIVE ACTION:
None in addition to the above.
FOLLOW UP ACTION: The Amendment to the Subdivision Improvement Agreement and the Drainage Maintenance Covenant will recorded by the City Clerk.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda
item and was included in the packet made available on the City’s website in advance of the
meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each
Monday in advance of the Council meeting.
ATTACHMENTS:
1. Amendment to Subdivision Improvement Agreement
2. Drainage Maintenance Covenant
3. Recorded Subdivision Improvement Agreement