CITY OF MENIFEE
SUBJECT: Notice of Completion, Acceptance, and 90% Release of Security for Tract Map 37668, Sumac Ridge, by Meritage
Homes of California, Inc.
MEETING DATE: June 17, 2026
TO: Mayor and City Council
PREPARED BY: Katrina Kunkel, Associate 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 streets, drainage, water, and sewer for Tract Map 37668 Sumac Ridge, located on Scott Road east of Menifee Road; and
2. Authorize the City Clerk to file a Notice of Completion (NOC) with the Riverside County Recorder’s Office; and
3. Authorize the City Engineer to release posted securities pursuant to standard City policy.
DISCUSSION
Meritage Homes of California Inc. (Developer), a California Stock Corporation, is the developer of Tract Map 37668 (TM37668) Sumac Ridge (Project). The Project is a subdivision of 175 single- family residential homes on a 56.6-acre property. The Project is located on Scott Road east of Menifee Road.
The Developer has now completed the construction of streets, drainage, water, and sewer, and is requesting acceptance of the completed 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 security and labor and materials security in accordance with City policy.
Upon filing of an NOC, the performance bond would be reduced by 90%, and the remaining 10% would be held as a warranty security for a period of one year in accordance with the City Municipal Code. The original posted securities for the improvements are listed in Table 1 below.
City of Menifee Staff Report
Public Improvement Acceptance TM 37668
June 17, 2026
1 4
8 8
TABLE 1 - ORIGINAL POSTED SECURITY IMPROVEMENTS
Improvement Security No.
Performance /
Material
Faithful
Performance
Material and
Labor
Streets/Drainage 7901078260 $ 4,932,500 $ 2,446,250
Street/Drainage 7901078248 $ 51,500 $ 27,750 Sewer System 7901078248 $ 304,500 $ 152,250
Water 30152479 $ 589,000 $ 294,500
Sewer System 30152479 $ 811,000 $ 405,500
Total $ 6,688,500 $ 3,326,250
If approved, an 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 90 days after the date of recording of the NOC, unless the City receives written notice of a timely claim against the payment bond pursuant to section 9560 of the Civil Code or a similar provision.
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 2017-1 Annexation 6.
ATTACHMENTS
1. Project Location Map
2. Notice of Completion
3. Agreement – Road Improvements
4. Agreement – Water and Sewer
5. Bond – Streets and Drainage (Bond No. 7901078260)
6. Bond – Street, Drainage and Sewer (Bond No. 7901078248)
7. Bond – Water and Sewer (Bond No. 30152479)