October 21, 2025
TO: City Council
REQUESTED BY: Stuart McKibbin, City Engineer
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Release of Security Deposit and Acceptance of Bond Warranty - Tract 31886
RECOMMENDATION:
Staff recommends approval of the partial release of the security deposit in the amount of $626,240.96 and acceptance of warranty bond F358990.
DISCUSSION:
Wanhoo, LLC entered into an Agreement for Completion of Public Improvements for Final Tract Map No. 31886, originally dated September 6, 2007. This agreement was subsequently amended by Amendment No. 4 (dated August 22, 2016, recorded September 14, 2016), Amendment No. 5 (dated December 20, 2017, recorded January 10, 2018), and supplemented by a Cash-in-Lieu of Bond Agreement executed on August 27, 2018.
Under these agreements, the developer provided a security deposit of $1,405,170 to guarantee completion of the required public improvements. Following a site inspection, Engineering staff verified that improvements have been completed in accordance with City standards for Tract 31886, specifically Lots 47–141 and 160–184.
The completed improvements include:
• Concrete sidewalks, curbs, and gutters
• Final cap pavement
• Street striping and signage
• Sewer and water service installations
• Storm drain repairs
The developer has submitted supporting documentation to the City Engineer, who has reviewed and approved the partial release of funds totaling $626,240.96. To satisfy the one-year warranty requirement, the developer has provided warranty bond F358990, which will serve as collateral for the completed improvements.
FISCAL IMPACT:
There is no direct fiscal impact to the City. The partial release of the security deposit and acceptance of the warranty bond maintain adequate financial assurance for the warrantied improvements.