CITY OF MENIFEE
SUBJECT: Notice of Completion, Acceptance and 90% Release of Securities for Tract Map 29835-2, Underwood, by KB Home Coastal, Inc.
MEETING DATE: April 15, 2026
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. Accept the public improvements for landscape for Tract Map 29835-2, Underwood, by KB Home Coastal, Inc., located along Antelope Road between McLaughlin Road and McCall Boulevard in the northeast portion of the City; and
2. Authorize the City Clerk to file a Notice of Completion with the Riverside County Recorder’s Office; and
3. Authorize the City Engineer to release 90% of the posted securities per the City’s standard policies.
DISCUSSION
KB Home Coastal. Inc. (Developer) is the developer of Tract Map 29835 (TM29835), a development of 514 single- family residential lots on 235 acres, a nine -acre park, and 71.6 acres of open space through Tract Map phases TM29835-1, TM29835-2, TM29835-3, TM29835-4 and TM29835-F of Underwood (Project). The Project is located along Antelope Road between McLaughlin Road and McCall Boulevard in the northeast portion of the City.
The Developer has now completed the public landscape improvements for phase 2 of the Project along portions of the Project frontage (Antelope Road) and is requesting acceptance of the improvements into the City’s maintenance system. Staff has inspected the completed improvements, determined that the improvements have been constructed in accordance with City specifications and standards, and verified that all Project conditions of approval have been met to release the faithful performance securities and labor and materials securities in accordance with City policy.
City of Menifee Staff Report
Landscape Improvement Acceptance TM 29835-2
April 1, 2026
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A 10% security warranty would be held for a period of one year in accordance with the City’s Municipal Code. The original posted securities for the improvements are listed in Table 1 below.
TABLE 1 – ORIGINAL POSTED SECURITY IMPROVEMENTS (IP18-058L) Improvement
Security No.
Performance/
Material
Faithful
Performance
Material and
Labor
Landscape 024252536 $ 113,000 $ 56,500 Irrigation 024252536 $ 179,500 $ 89,750 Construction 024252536 $ 328,500 $ 164,250
Contingency 024252536 $ 124,000 $ 62,000 Total $ 745,000 $ 372,500
If approved, a Notice of Completion (NOC) would be filed, which protects the City from future claims against the Project by providing proper noticing to each contractor, subcontractor, and material supplier that the Project has been completed. The payment bond would be released upon Project acceptance by the City and the performance bond would be released one year after the date of recording of the NOC. The City has not received any stop notices that would prevent said releases.
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 and deposits to cover the costs of the required inspection of the completed improvements. Ongoing maintenance costs for the improvements would be supported through approved Fiscal Year 2025/2026 operating budgets in Community Facilities District (CFD) 2015-2, Zone 20.
ATTACHMENTS
1. Project Location Map
2. Agreement
3. Bonds
4. Notice of Completion