City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Kevin Jorgensen II, Director of Engineering/City Engineer |
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Prepared by: |
Toshiro Sessoms, Assistant Engineer |
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Date: |
June 3, 2025 |
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Subject: |
Kiper at Indelicato Unit No. 1, Tract 4065, Improvement Agreement Amendment No. 1 |
Recommendation:
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Adopt a resolution approving Amendment No. 1 to the Improvement Agreement for Kiper at Indelicato Unit No. 1, Tract 4065, modifying SCHEDULE B, Section II-1.A and Section II-2.A, “P.F.I.P. Credits and Reimbursements” to allow Public Facilities Infrastructure Plan reimbursable credits to be spread across both Kiper at Indelicato Unit No. 1 and Kiper at Indelicato Unit No. 2 rather than be limited to Kiper at Indelicato Unit No. 1 only; and authorizing the City Manager to sign and take all necessary steps to effectuate Amendment No. 1.
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Background:
On February 18, 2025, the City of Manteca and K. Hovnanian Homes Northern California, Inc. (KHOV), entered into an Improvement Agreement for Kiper at Indelicato Unit No. 1, Tract 4065 (Attachment 3) with an Estimated Total Cost of Improvements of $9,736,404.00 which included a Transportation System P.F.I.P. reimbursement amount of $271,890.08, and Sewer Collection System Financing Zone 22 P.F.I.P. amount of $462,888.00.
The Improvement Agreement for Kiper at Indelicato Unit No.1, Tract 4065, under Schedule B, “P.F.I.P. Credits and Reimbursements”, allows for credit reimbursement to be given when building permits are issued for construction of residences within the unit. However, the cost of the installing the Public Facilities Infrastructure Plan (P.F.I.P.) improvements significantly exceeded the available credit amounts for Unit No. 1, requiring the remainder of those costs to be placed on a reimbursement list in accordance with Section III, “Reimbursement Priority”.
KHOV requested to amend the language in Schedule B, “P.F.I.P. Credits and Reimbursements” to allow the excess allowable credit reimbursements from Kiper at Indelicato Unit No. 1 to be distributed over both Kiper at Indelicato Unit No. 1 and Kiper at Indelicato Unit No. 2. This request will allow KHOV to maximize their credit reimbursement across the project units, thereby minimizing the amount of P.F.I.P. reimbursements to be placed on the reimbursement list upon completion of the project.
Fiscal Impact:
There is no fiscal impact associated with this item.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Amendment No.1
3. Attachment 3 - Kiper at Indelicato Unit No. 1 Improvement Agreement (C2025-38)
4. Attachment 4 - Location Map