CITY OF MENIFEE
SUBJECT: Agreement and Bond Replacement for Palomar Road & Matthews Road Improvements fronting Rinker Materials by Contech Engineered Solutions, LLC
MEETING DATE: January 17, 2024
TO: Mayor and City Council
PREPARED BY: Chet Robinson, Acting Principal Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Rebekah Kramer, Acting City Manager
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RECOMMENDED ACTION
1. Approve and authorize the City Manager to execute a Public Improvement Agreement to guarantee the completion of required public improvements associated with the Palomar Road and Matthews Road Street Improvements for Rinker Materials by Contech Engineered Solutions, LLC, located east of Palomar Road and north of Matthews Road.
DISCUSSION
Rinker Materials, formerly known as Forterra Pipe and Concrete, is constructing improvements to their property frontage as required by Plot Plan 2018-199 (“Project”). The improvements were required as part of the conditions of approval for a new building at the Forterra site. The Project is located on the east side of Palomar Road and north of Matthews Road as shown on the attached Project Map. The improvement plan for the Project was initially reviewed by the City in 2020 and bonds were provided as required by the Project’s conditions of approval; however, a Public Improvement Agreement (“PIA”) was not executed, and the plans were not approved at that time.
Project ownership has since been transferred to Contech Engineered Solutions, LLC, an Ohio limited liability company (“Developer”). In 2022, the Developer resubmitted improvement plans for review that included additional street improvements, executed the attached PIA, and provided new bonds as required for the street and drainage improvements.
The Developer now requests that the City approve the proposed PIA and accept the replacement bonds provided. The PIA requires that improvement securities be posted to guarantee the completion of the required improvements within 10 months from the City Council approval date of the agreements. Based on the Project’s change of ownership, the increase in the magnitude of
City of Menifee Staff Report
Palomar Road and Matthews Road Improvements
January 17, 2024
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the street improvements, and the replacement bonds provided, the Developer is also requesting full release of the originally posted improvement securities.
Staff has reviewed the Developer’s request and determined that the PIA meets the requirements of the Project’s conditions, confirmed that the new improvement security is adequate for the Project, and verified that the original security held may be released in full. A summary of the replacement security is provided in Table1 below. A summary of the originally posted security eligible for full release is provided in Table No. 2 below.
Table 1- Replacement Public Improvement Security
Improvement Security Faithful Performance Material & Labor Streets and Drainage 30169104 $ 559,500 $ 279,750
Total $ 559,500 $ 279,750
Table 2- Original Public Improvement Security
Improvement Security Faithful Performance Material & Labor Streets and Drainage SU51462 $ 243,000 $ 121,500
Total $ 243,000 $ 121,500
STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Project Map
2. Agreement – Streets and Drainage
3. Replacement Bond
4. Original Bond