BACKGROUND:
Tentative Tract No. 37354 and Planned Unit Development PUD 17-001 were approved by the Planning Commission in February 2018, for a residential development of 45 lots on 7.5 acres of land between Jones Road and Carey Road, east of Cree Road. The subdivider-developer is Jones Cree Ventures East, LLC (Mario Gonzales).
The development included public street improvements along Jones Road and Carey Road, and the improvement of on-site private streets, related sewers, water mains, storm drains and common area improvements.
When the final map of Tract No. 37354 was approved by City Council in March 2019, the developer executed a Subdivision Improvement Agreement and posted improvement securities in the form of corporate surety bonds, as authorized by the State Subdivision Map Act. The agreements and securities were posted to guarantee the completion of the public and private improvements in and around the Tract Map, including the Desert Water Agency (DWA) sewer and water facilities serving the Tract.
All the required improvements in the Tract Map and PUD have been satisfactorily completed as required by the Subdivision Improvement Agreement. The water and sewer improvements have been approved and accepted by the DWA.
In March 2020, the recorded Tract Map was amended, in accordance with the State Subdivision Map Act, at the request of the Subdivider for sales reasons, to drop two lots and to enlarge several others. An amended Map was approved by the Planning Commission and was recorded in March 2020.
DISCUSSION:
A Notice of Completion (NOC) has been prepared and will be filed by the Director of Engineering/Public Works upon approval of the Resolution, noting that all the improvements have been completed. No claims have been filed with the City against any of the posted securities. The Resolution authorizes the release of the securities posted for faithful Performance upon its adoption, including those posted to guarantee completion of the DWA water and sewer facilities. Pursuant to State law, the surety bonds guaranteeing payment for labor and materials posted with the Subdivision Improvement Agreement will be released by the Director of Engineering/Public Works ninety (90) days after recordation of the Notices of Completion, provided no claims have been filed.
The developer has posted a one-year warranty bond to guarantee repair of any defects in materials or pro in the public and private improvements in the development and has posted one-year warranty bonds covering the DWA sewer and water facilities built to serve the tract. These warranty bonds will be released by the Director of Engineering one year after adoption of this Resolution provided no claims have been filed or issues arise due to problems with materials or workmanship.
Lastly, all the required survey monuments have been set in the development and the surveyor of record has submitted evidence that he has been compensated for those services.
The securities posted by the developer to be released in accordance with the terms of the Subdivision Improvement Agreement and as outlined in the Resolution are as follows, and are all from American Contractors Indemnity Company:
oFor Faithful Performance,
▪Public and private improvements:
•$301,900 - Bond #1001072297 (previously reduced from
original $1,701,200)
▪DWA sewer improvements:
•$171,000 - Bond #1001072270
▪DWA water improvements:
•$322,000 - Bond #1001072269
oFor Labor and Materials:
▪Public and private improvements:
•$850,600.00 - Bond #1001072297
▪DWA sewer improvements:
•$85,500 - Bond #1001072270
▪DWA water improvements:
•$161,000 - Bond # 1001072269
oFor Monumentation:
▪$32,775.00 - Cash deposit
In conclusion, Staff is requesting that the City Council adopt the Resolution accepting the public improvements and certifying completion of private improvements in Tract No. 37354 and PUD 17-001; authorizing the release of Improvement Agreement securities and deposits as described in the Resolution; and authorizing the Director of Engineering/Public Works to file a Notice of Completion for the Project.
FISCAL IMPACT:
There will be minimal fiscal impact upon the City due to the adoption of this Resolution.
The private improvements within the development will be maintained by the owners and/or by the Homeowner’s Association (HOA). The public improvements (e.g., roadways, sidewalks and storm drains) are upgrades to the prior public improvements adjacent the Project and will thus require minimal maintenance cost.