Report to City Council
ID: 26-0236 Page 1
TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer
AGENDA DATE: June 16, 2026
TITLE: PEN22-0131 (TRACT 38442) ACCEPT DEVELOPMENT
IMPACT FEES IMPROVEMENT CREDIT AGREEMENT
(REPORT OF: PUBLIC WORKS) (DISTRICT 3)
TITLE SUMMARY: Development Impact Fees Improvement Credit Agreement D26-01 For Tract 38442 Residential Development Located
On The North Side Of Alessandro Boulevard And East Of
Nason Street. Developer: DR Horton Los Angeles Holding
Company, Inc.
DISTRICT: District 3
Recommendation(s)
That the City Council:
1. Accept and approve as to form the Development Impact Fees Improvement Credit Agreement D26-01 for PEN22-0131 (Tract 38442) improvements; and
2. Authorize the City Manager to execute the Development Impact Fees Improvement Credit Agreement D26-01.
SUMMARY
This report recommends the approval of a Development Impact Fees Improvement Credit Agreement for PEN22 -0131 (Tract 38442) with DR Horton Los Angeles Holding Company, Inc. The Developer is required to widen Alessandro Boulevard along its frontage, which is an arterial street designated in the City’s 2024 Development Impact Fee Study Update. The Developer’s maximum credit amount is based on the least amount of the 2024 Development Impact Fee Study Update cost, the Engineer’s Cost Estimate, and the Development Impact Fee obligation.
ID: 26-0236 Page 2
DISCUSSION
The Developer is approved to construct 108 single -family residential units on approximately 20 gross acres, located on the north side of Alessandro Boul evard and east of Nason Street. The City’s Municipal Code, Chapter 3.38, “Residential Development Impact Fees,” requires the Developer to pay Development Impact Fees (DIF). The DIF covers the Developer’s fair share of the costs of constructing improvement s that help mitigate the traffic impacts and burdens generated by the project on the City’s arterial street network and traffic signals.
As part of the project conditions of approval, the Developer will be widening the westbound lanes and constructing a ra ised median on Alessandro Boulevard. Section
3.38.150 of the City’s Municipal Code allows the Developer to receive a credit for qualifying public improvements made to the designated arterial street(s) and traffic signal(s). Alessandro Boulevard is a design ated street in the City’s 2024 DIF Study Update.
The Developer is eligible to receive DIF credit for Alessandro Boulevard improvements identified in the DIF Study Update. Qualifying DIF improvement costs include roadway excavation, imported borrow, clearin g and grubbing, subgrade preparation, asphalt concrete, aggregate base, median curb, curb and gutter, sidewalk, water quality and erosion control , environmental mitigation, streetlight, striping, pavement markings and markers, construction mobilization and traffic control, right of way, utility relocation, and traffic signal-related improvements.
Per the DIF Improvement Credit Agreement, the initial credit is the least of the DIF Study Update cost, the Engineer’s Cost Estimate, and the DIF fee obligation. Refer to Exhibit “C” – DIF Credit Calculation Table of the DIF Agreement. The maximum DIF credit for this project is $696,101 for the Arterial Street component of the DIF.
ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this staff report.
Staff recommend this alternative as the action is consistent with Chapter 3.38 Residential Development Impact Fees of the City’s Municipal Code.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff do not recommend this alternative as it would not allow the Developer to offset the cost of its reasonable share of the public improvements constructed to serve the development, nor ensure implementation of, and consistency with the City’s General Plan.
FISCAL IMPACT
There is no fiscal impact.
NOTIFICATION
Publication of Agenda.
ID: 26-0236 Page 3
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Larry Gonzales, P.E. Melissa Walker, P.E.
Principal Engineer, Land Development Public Works Director/City Engineer Concurred By:
Harold Zamora, P.E.
Engineering Division Manager/Assistant City Engineer
CITY COUNCIL GOALS
Public Fac ilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
Objective 4.2: Develop and maintain a comprehensive Infrastructure Plan to invest in and deliver City infrastructure.
ID: 26-0236 Page 4
Report Approval Details
Document Title: STAFFREPORT_PW_LD_DIF_PEN22-0131_TR 38442.docx Attachments: - DIF Credit Agreement_TR 38442.pdf
- Vicinity Map - PEN22-0131 (TR 38442).pdf
Final Approval Date: Jun 10, 2026
This report and all of its attachments were approved and signed as outlined below:
Melissa Walker
Sean Kelleher
Natalia Medina
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez