Item Number: 10
City Council / Board of Directors
Consent Calendar
Meeting of: May 5, 2026
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Reduction of Securities for the Public Improvements of an Industrial Warehouse Located at 13533 Phantom West
Recommendation:
That the Honorable City Council:
(1) Approve the full release of the Faithful Performance Security for the Street Improvements of an Industrial Warehouse; and
(2) Release 80% of the Faithful Performance Security for the Utility Undergrounding Improvements of an Industrial Warehouse.
Fiscal Impact:
There is no fiscal impact as a result of this action.
Strategic Plan Goal:
This item aligns with “Goal E Invest in Infrastructure” in the City of Victorville Strategic Plan 2023-2026. Although this is not a Capital Improvement Project, we apply the same strategy to private development projects as they are essential in meeting the community’s needs.
Background:
Case Nos. BLDC21-00009/EROW21-00119 pertain to the construction of an 816,300 square foot Industrial Warehouse located at the southwest corner of Phantom West and Nevada Street within the Southern California Logistics Airport (SCLA). The developer, Prologis SCLC Investments/Lot 19 LLC (Prologis), was required to complete multiple public improvements as stipulated in the conditions of approval. As part of this public improvement, the developer provided bonds as security for the outstanding pavement widening, curb and gutter work, sidewalk installation, and drainage improvements on Phantom West and Nevada Street. The Developer has made significant progress and at the regular City Council meeting held on October 3, 2023, the City Council approved an 4 6
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80% reduction of the Street Faithful Performance Security and accepted the completed Street Improvements.
Prologis also executed an Improvement Agreement and provided a separate improvement bond for the required utility undergrounding of the Southern California Edison (SCE) power poles along the Nevada Street frontage. The recorded agreement allowed Prologis to receive final occupancy in July 2023, while they worked with SCE and other utilities on the undergrounding of the overhead power poles.
Discussion:
During the regular City Council meeting held on October 3, 2023, the City Council approved an 80% reduction in the Street Improvements Faithful Performance Security.
Additionally, they accepted the completed Street Improvements. Per Victorville Municipal Code Section 17.64.070(4), the remaining 20% of the Faithful Performance security was to be held for a one-year warranty period and the Labor & Materials security was held for a 6-month period.
Engineering Staff and Prologis deferred requesting release of the remaining security for the Street Improvements, recognizing that the SCE utility undergrounding was ultimately going to require the construction of vaults and conduit on Nevada Street, and the newly constructed pavement would be excavated.
Now that SCE has completed the utility undergrounding and Prologis has resurfaced Nevada Street, staff recommends the full release of the Faithful Performance Security for the Street Improvements due to the acceptance taking place at the October 3, 2023, regular City Council Meeting and no warranty items remain outstanding.
Furthermore, per Section 10.1 of the Improvement Agreement, the City Engineer recommends that the City Council release 80% of the Faithful Performance Security for the Utility Undergrounding. The remaining 20% of the Faithful Performance security will be held for a one-year warranty period and the Labor & Materials securities will be held for a 6-month period.
Therefore, staff recommend that the Honorable City Council approve the full release of the Faithful Performance Security for the Street Improvements and authorize the release of 80% of the Faithful Performance Security for the Utility Undergrounding Improvements.
Staff are available for any questions the Council may have.
Prepared By:
Nicoale Sylvestre, Management Specialist
Attachments: A. Vicinity Map
B. Securities Table
C. Existing Securities
D. Improvement Agreement