BACKGROUND:
Tentative Tract No. 37647, known as “Cassia,” was approved by the City in April of 2019, for eighty-six (86) residential units on 11.2 acres, in the Rio Vista-Verano area of Cathedral City. Tract No. 37647 was to be a re-subdivision of Lot 270 in Tract No. 28639-1, originally created in 2001.
The land was purchased by HPH Homebuilders 2000, L.P., (“HPH”) a subsidiary of D.R.
Horton Company. HPH elected to divide the Tentative map into three separate increments (Tract Nos. 37647-1, 37647-2 and 37647), and prepared separate final maps for each increment (see attached Exhibit).
HPH completed the three final maps and executed a Subdivision Improvement Agreement and posted bonds for each map, to ensure the public improvements would be completed in accordance with the California Subdivision Map Act. All three maps were recorded on September 30, 2020.
The tract improvements included the completion of public streets and alleys, sewer and water mains, water and sewer services, utilities, the improvement of open space lots, and two (2) park lots adjoining the land abutting Tract 28639-1. HPH secured its performance of the Agreements by the posting of faithful performance and labor and material bonds, and a cash bonds to guarantee completion of missing monuments and property corners in the three Tracts.
HPH has completed all the required public improvements covered in the three Subdivision Agreements for the Tracts, and these are ready to be certified and accepted and the securities released.
DISCUSSION:
A single Resolution has been prepared for the acceptance of the improvements in all three Tracts. A Notice of Completion (NOC) (attached) has been prepared and will be filed by the Director of Public Works upon approval of the Resolution (attached) noting that all the improvements in the three Tracts have been completed. No claims have been filed with the City against any of the posted securities. Upon adoption of the Resolution, the surety bonds guaranteeing faithful performance in each tract will be released. Pursuant to State law, the surety bonds guaranteeing payment for labor and materials posted with the Improvement Agreements will be released by the Director of Public Works ninety (90) days after recordation of the Notice of Completion.
The developer has posted a one-year warranty bond to guarantee repair of any defects in materials or workmanship in the public improvements in each of the three Tracts.
These warranty bonds will be released by the Director of Public Works one year after adoption of this Resolution provided no claims have been filed or problems arise due to problems with materials or workmanship.
Lastly, all the required monuments have been set in the three Tracts and the surveyor of record has submitted evidence that he has been compensated for those services.
Therefore, the cash securities for monuments can be released.
The securities posted by the developer with the original Improvement Agreement to be released in accordance with the terms of the Improvement Agreements and as outlined in the Resolution are as follows (all from Liberty Mutual Insurance Company):
For Tract No. 37647-1: (38 dwelling units)
For Faithful Performance: Bond # 016229770; $871,000
For Labor & Materials: Bond # 016229770; $435,500
For Monumentation (cash deposit): $5,000, paid September 8, 2020.
For Tract No. 37647-2: (24 dwelling units)
For Faithful Performance: Bond # 016229771; $239,000
For Labor & Materials: Bond # 016229771; $119,500
For Monumentation (cash deposit): $5,000, paid September 8, 2020.
For Tract No. 37647: (24 dwelling units)
For Faithful Performance: Bond # 016229772; $552,000
For Labor & Materials: Bond # 016229772; $276,500
For Monumentation (cash deposit): $5,000, paid September 8, 2020.
The Rio Vista master Covenants, Conditions and Restrictions (CC&Rs) provide that the local homeowner’s association (HOA) will perform the maintenance of the alleys and landscaped open space and park lots improved by HPH. Therefore, just the public streets listed in the Resolution (portions of Rio Rosalia, Rio Plata, Rio Oso, Rio Felicia, and Rio Guadalupe) are being accepted into the City maintained street system.
Staff is requesting the City Council to adopt a Resolution certifying the public improvements constructed within Tract No. 37647-1, Tract No. 37647-2, and Tract No. 37647 by HPH Homebuilders 2000, L.P., pursuant to these respective Subdivision Improvement Agreements with the City, were completed in accordance with City standards and specifications. Authorize the release of the Improvement Agreement securities and deposits for each Tract as described in the attached Resolution.
Authorize the City Manager to execute and the Director of Public Works to file a Notice of Completion for the projects, respectively; and accept the improvements into the City maintained street system.
FISCAL IMPACT:
With the adoption of this Resolution, there will be minimal fiscal impact upon the City.
The public alleys and park and open space lots listed in the Resolution will be maintained by the Homeowner’s Association, and the public street maintenance will be absorbed into the normal maintenance duties of the Public Works Department.
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and
maintained.
GOAL C: FISCAL STABILITY AND SUSTAINABILITY
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which
benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.