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Santa Paula council approves partial assignment of subdivision-improvement obligations for Harvest Tract 6074
Summary
Council voted to assign water and sewer warranty obligations for Tract 6074 (Harvest) to Richmond American and Lennar, releasing parts of the original developer's performance bond while leaving street obligations with the original developer; Vice Mayor Chavez recused on the item.
The Santa Paula City Council on Aug. 21 adopted a resolution authorizing partial assignments of the subdivision improvement agreement for Tract 6074 (the Harvest development), reallocating warranty and bond responsibilities among private builders.
City Attorney Castillo summarized the transaction: the original subdivider posted performance bonds covering multiple improvements; developers Richmond American Homes and Lennar Homes negotiated to assume responsibility for the sewer and water warranties in their portions of the tract, while the original developer (Luz Lomenaro Community Builders LLC) will retain obligations for street improvements. "These are just two separate assignments to two different builders," Castillo said, explaining the legal mechanics and that the city will release portions of the original performance bond once replacement warranty bonds are filed.
Vice Mayor Chavez disclosed a conflict of interest and recused himself from the discussion and vote because he lives within the Harvest development; the council proceeded in his absence. A council member moved and the council approved the resolution.
The measure authorizes the public works director to reduce the performance bond posted by the original subdivider to cover only street improvements after the new warranty bonds for sewer and water are recorded, and authorizes the city manager to execute the recordable partial assignments.
The council also asked for confirmation that the funds and bonds would be exchanged and that the original developer would receive refunds for the released portions once replaced by the two homebuilders; staff confirmed the released portions are refunded after the replacements are recorded.
Outcome: Resolution adopted; staff to finalize recordation and bond adjustments.
