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<br />Considerable effort has been made to respond to the requests for additional information made <br />by Zone 7 as outlined in the chronology shown on Attachment 10. Acceptance of the <br />geotechnical work by Engeo has yet to be received in writing from Zone 7 to the applicant. <br /> <br />The site was initially designed and continues to reflect the recommendations of Engeo, Inc. <br />related to the setbacks noted above. The City would like to have Zone 7 own the Arroyo and <br />be the responsible agency for its maintenance. Representatives from the City have met with <br />Zone 7 to determine the conditions upon which Zone 7 would accept ownership. Zone 7 has <br />provided the willingness to accept an offer of dedication provided certain conditions can be <br />met: <br /> <br />1. Provide a 2Y:z:1Iine of projection from the toe of the creek bank to the top of the <br />bank for non-habitable improvements. <br /> <br />2. Ensure that the homeowners association (HOA) is the sole responsible entity via <br />CC&Rs which include covenants that: <br /> <br />a) maintain a minimum of$250, 000. 00 in a reserve fund; <br /> <br />OR <br /> <br />b) maintain an insurance policy of no less than $3,000,000.00 per claim. <br /> <br />In addition: <br /> <br />c) The HOA covenants and agrees to defend, indemnifY, and to hold harmless <br />ZONE 7. <br /> <br />d) The HOA shall reimburse Zone 7 for all costs associated with the repair of any <br />Zone 7 property. <br /> <br />3. The CC&Rs shall not be amended without the prior written consent of Zone 7. <br /> <br />To date, it remains unclear if the conditions can be met by a homeowners association. Staff has <br />been concerned with approving the project with conditions that mayor may not be able to be <br />attained and that have not been entirely confirmed as actually meeting the requirements of <br />Zone 7. Zone 7 has presented the idea that even if it were to accept an offer of dedication, it <br />will not maintain the embankment, therefore requiring certain conditions similar to those listed <br />above. <br /> <br />SR06:013 <br />Page 12 of 17 <br />