CITY OF MENIFEE
SUBJECT: Replacement Agreement and Bonds for Public
Improvements, Tract Map 36803, Quartz Trail, by Lennar Homes of California, LLC.
MEETING DATE: October 15, 2025
TO: Mayor and City Council
PREPARED BY: Crystal Nguyen, Senior Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Approve and authorize the City Manager to execute a Subdivision Improvement Agreement and securities with Lennar Homes of California, LLC , to replace existing agreements and securities, and guarantee the completion of required public and private improvements associated with Tract Map 36803, Quartz Trail , located south of Holland Road and east of Evans Road; and
2. Authorize the Public Works Director to fully release remaining improvement securities previously provided by FPG Sun Menifee, LLC for Tract Map No. 36803.
DISCUSSION
Tract Map 36803 (TM36803), Quartz Trail (Project), formerly known as Menifee 80 and/or Estrella, is a proposed subdivision of 30 gross acres of land into 80 residential lots. TM36803 was recorded on March 23, 2023, by FPG Sun Menifee, LLC ( Former Owner) and is located at the southeast corner of Holland Road and Evans Road.
On March 1, 2023, the City Council approved and entered into several Subdivision Improvement Agreements (Original Agreements) with the Former Owner to guarantee the construction of street, drainage, and utility improvements as required by the Project’s conditions of approval. The Former Owner had posted required improvement securities for off-site and on-site improvements (Original Securities) for the Project at the time of approval. A summary of the Original Securities is provided in Tables 1 and 2 on the following page.
City of Menifee Staff Report
Replacement Agreement and Bonds for Tract Map No. 36803 October 15, 2025
TABLE 1 – ORIGINAL OFFSITE SECURITIES (TO BE RELEASED)
Improvement Security Faithful
Performance
Material and
Labor
IP21-013S Street and Drainage
(Corson Avenue) 225122D $ 690,000 $ 345,000
IP21-013SSD Streets and Drainage
(Evans Road) 225122F $ 1,540,000 $ 770,000
IP21-013SSD Streets and Drainage
(Holland Road) 225122G $ 1,555,000 $ 777,500
IP21-013U Water/ Recycled
Water/Sewer
(Corson Avenue)
225122J $ 62,500 $ 31,250
IP21-013U Water/ Recycled
Water/Sewer (Evans Road) 225122K $ 169,000 $ 84,500 IP21-013U Water/ Recycled
Water/Sewer (Holland Road) 225122M $ 123,000 $ 61,500 Total $ 4,139,500 $ 2,069,750
TABLE 2 – ORIGINAL ONSITE SECURITIES (TO BE RELEASED)
Improvement Security Faithful
Performance
Material and
Labor
IP21-012SSD Streets and Drainage 225121N $ 4,333,000 $ 2,166,500 IP21-014U Sewer System 225121P $ 302,200 $ 151,000 IP21-014U Water System 278954Q $ 652,000 $ 326,000 Total $ 5,287,200 $ 2,643,600
Ownership of the Project has now been transferred to Lennar Homes of California, LLC , a California Limited Liability Company (Developer). While the Project has been renamed to Quartz Trail, the subdivision remains consistent with the recorded map of 80 residential lots, a water quality basin, a private park, and private streets within a gated community.
Given the change in ownership, an updated subdivision improvement agreement , as well as updated improvement securities with the Developer , are now required for the Project. The proposed Subdivision Improvement Agreement (Replacement Agreement) would replace the Original Agreements and new improvement securities (Replacement Securities) are required to be posted by the Developer to guarantee the completion of the Project improvements and replace the Original Securities. The Developer has also posted additional Project securities to guarantee the completion of landscape improvement s and the placement of survey monuments for the Project.
Staff have reviewed the Replacement Agreement and all security documents and determined that they meet the requirements of the Project’s conditions of approval. A summary of all securities being posted to guarantee the required improvements are shown in Tables 3 through 6 on the following page.
City of Menifee Staff Report
Replacement Agreement and Bonds for Tract Map No. 36803 October 15, 2025
TABLE 3 – REPLACEMENT OFFSITE SECURITIES
Improvement Security Faithful
Performance
Material and
Labor
IP21-013S Street and Drainage
(Corson Avenue) K42131325 $ 690,000 $ 345,000
IP21-013SSD Streets and Drainage
(Evans Road) K42131325 $ 1,540,000 $ 770,000
IP21-013SSD Streets and Drainage
(Holland Road) K42131325 $ 1,555,000 $ 777,500
IP21-013U Water/ Recycled
Water/Sewer
(Corson Avenue)
K42131325 $ 62,500 $ 31,250
IP21-013U Water/ Recycled
Water/Sewer (Evans Road) K42131325 $ 169,000 $ 84,500 IP21-013U Water/ Recycled
Water/Sewer (Holland Road) K42131325 $ 123,000 $ 61,500 Total $ 4,139,500 $ 2,069,750
TABLE 4 – REPLACEMENT ONSITE SECURITIES
Improvement Security Faithful
Performance
Material and
Labor
IP21-012SD Streets and Drainage K42131313 $ 4,333,000 $ 2,166,500 IP21-014U Sewer System K42131313 $ 302,200 $ 151,000 IP21-014U Water System K42131313 $ 652,000 $ 326,000 Total $ 5,287,200 $ 2,643,600
TABLE 5 – LANDSCAPE SECURITIES
Improvement Security Faithful
Performance
Material and
Labor
IP22-016 Landscape SPA150818_057 $ 493,500 $ 493,500
Total $ 493,500 $ 493,500
TABLE 6 – SECURITIES FOR SURVEY MONUMENT
Improvement Security Monument Bond
Survey Monument 024289251 $ 99,000
Total $ 99,000
Due to the volume of security documents referenced in this report, only the Replacement Agreement and Developer-provided securities have been included as attachments to this report.
The Original Agreements and Original Securities are available, and on file, in the Office of the City Clerk. Upon City Council approval and following the full execution of the Replacement Agreement, staff would process the release and return of all Original Securities to the Former Owner.
City of Menifee Staff Report
Replacement Agreement and Bonds for Tract Map No. 36803 October 15, 2025
STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community
FISCAL IMPACT
There is no fiscal impact associated with the recommended action. The Developer has paid all necessary fees associated with the replacement of agreements and securities. Upon completion of the improvements, and subsequent acceptance by the City, ongoing maintenance costs for the improvements would be supported through future fiscal year operati ng budgets in Community Facilities District 2017-1, Annexation No. 13.
ATTACHMENTS
1. Project Map
2. Replacement Agreement
3. Bond - Replacement Offsite
4. Bond - Replacement Onsite
5. Bond - Landscape
6. Bond - Monuments