CITY OF MENIFEE
SUBJECT: Agreement and Bonds for future Tract Map 31229-1 and 31229-2 Nautical Cove, by KB Home Cal Management
Services, LLC.
MEETING DATE: January 21, 2026
TO: Mayor and City Council
PREPARED BY: Amanda Backlund, Assistant 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 Public Improvement Agreement and accept securities to guarantee the completion of public improvements associated with Tract Map 31229-1 & 31229-2, Nautical Cove, by KB Home Cal Management Services, LLC., located west of Briggs Road, north of Holland Road, south of Tres Lagos Drive, and east of Southshore Drive.
DISCUSSION
Tract Map Nos. 31229-1 (TM31229-1) and 31229-2 (TM31229-2), together also known as Nautical Cove (Project), is a proposed residential development by KB Home Cal Management, LLC (Developer) of 48.97 and 16.69 gross acres, respectively, for residential purposes. TM31229- 1 proposes to construct 120 single-family lots, two private water quality basins, a private park, and a private lake. TM31229-2 proposes to construct 61 single-family lots, a private water quality basin, a private recreation center, and a landscaped lot. The Project is located west of Briggs Road, north of Holland Road, south of Tres Lagos Drive, and east of Southshore Drive. The Project’s final map is still under review as City staff and the Developer continue to coordinate with the utility companies to obtain Project-related utility clearances. Upon receipt of all utility clearances, a final map would be presented to the City Council for approval.
While the Project map is being finalized, the Developer is requesting the City’s approval to commence the construction of certain public and private improvements (Improvements) to maintain development schedules. The Improvements to be constructed are preliminarily established as required per conditions of approval for the Project. In exchange for being permitted
City of Menifee Staff Report
Public Improvement Agreement – Nautical Cove
January 21, 2026
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to commence work prior to final map approval of the Project, the Developer has voluntarily assumed the risk without liability to the City that the Project’s final map may not be approved or may be approved with different improvement plans or conditions of approval to those anticipated.
In order to describe and secure the Improvements, the Developer is requesting approval of the attached Public Improvement Agreement (Agreement) and securities. The Agreement requires that Improvement securities be posted to guarantee the completion of the required Improvements and that the Improvements be completed within 24 months from the date of City Council approval of the Agreement. Upon finalizing the Project map, the City and Developer would enter into a separate Subdivision Improvement Agreement (SIA) that would incorporate any modifications determined for the Improvements as per the finalized map. Both the final map and SIA would be presented to the City Council for review and approval at a future meeting.
Staff have reviewed the Developer’s request and determined that the Agreement adequately secures the Improvements and protects the City from liability if the Project’s final map is not approved for any reason or is approved under different conditions. A summary of the bonds being posted to guarantee the required improvements are shown in Table 1 below.
TABLE 1 – PUBLIC IMPROVEMENTS
Improvement Security Faithful Performance Material & Labor Signing & Striping
IP24-020SS 0268040 $ 40,000 $ 40,000 Water, Sewer, & Recycled
Water System
IP24-020U
024282709 $ 991,500 $ 991,500 Traffic Signal
IP23-020TS 30212966 $ 267,500 $ 267,500 Lake Improvements
IP23-019 7901194261 $ 2,440,000 $ 2,440,000 Streetlights (Offsite)
IP25-024SL 0842713 $ 285,000 $ 285,000 Street
IP24-020S 7901194257 $ 2,435,000 $ 2,435,000 Storm Drain
IP23-020SD 024282667 $ 1,203,000 $ 1,203,000 Street, Signing & Striping
(Briggs)
IP24-019S
9470449 $ 1,966,000 $ 1,966,000
Streetlights (Onsite)
IP24-020SL 30258795 $ 384,000 $ 384,000 Landscape POC1
IP25-009L 30258794 $ 697,500 $ 697,500 Landscape POC2 (Briggs)
IP25-010L 30258793 $ 392,000 $ 392,000 Storm Drain (Briggs)
IP25-007SD 30258792 $ 682,500 $ 682,500 Total $ 11,784,000 $ 11,784,000
City of Menifee Staff Report
Public Improvement Agreement – Nautical Cove
January 21, 2026
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The total securities required for all improvements have been provided by the Developer in the amount of $11,784,000.
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 review of the Agreement 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 budgets in maintenance Community Facilities District 2017-1 Annexation 34, Zone 34.
ATTACHMENTS
1. Project Map
2. Agreement
3. Bonds – IP24-020SS Improvements
4. Bonds – IP24-020U Improvements
5. Bonds – IP23-020TS Improvements
6. Bonds – IP23-019 Improvements
7. Bonds – IP25-024SL Improvements
8. Bonds – IP24-020S Improvements
9. Bonds – IP23-020SD Improvements
10. Bonds – IP24-019S Improvements
11. Bonds – IP24-020SL Improvements
12. Bonds – IP25-009L Improvements
13. Bonds – IP25-010L Improvements
14. Bonds – IP25-007SD Improvements