AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 08/05/2020
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
SUBJECT:
Title
City Council consideration of Reducing Public Improvements Securities associated with Tract Maps (TMs) 36541-1, 36541-2, and 36541 (Final) - Ryland Homes of California, Inc., a Delaware Corporation.
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RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Approve the reduction of the Public Improvements - Off-Site Improvements, T36541-1 Faithful Performance Security to $2,831,300.00 (50 percent), and the associated Labor and Material Security to $1,415,650.00 (024069386 FP and LM).
b. Approve the reduction of the Public Improvements - Off-Site Improvements, T36541-1 (CFD) Faithful Performance Security to $1,058,400.00 (50 percent), and the associated Labor and Material Security to $529,200.00 (024069387 FP and LM).
c. Approve the reduction of the Public Improvements - On-Site Improvements, T36541-2 Faithful Performance Security to $1,514,400.00 (50 percent), and the associated Labor and Material Security to $757,200.00 (0240675 FP and LM).
d. Approve the reduction of the Public Improvements - On-Site Improvements, T36541 Faithful Performance Security to $2,188,000.00 (50 percent), and the associated Labor and Material Security to $1,094,000.00 (0240674 FP and LM).
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ANALYSIS:
On April 18, 2018, the City Council approved TMs 36541-1, 36541-2, and 36541 (Final) for the subdivision of approximately 311 acres into 237 single-family residential lots in the Sierra Bella Specific Plan. The project is located south of Green River Road, beyond Calle Del Oro, and west of Paseo Grande, as shown on Exhibit “A.”
On October 4, 2016, Ryland Homes of California, Inc., a subsidiary to CalAtlantic Group, and original owner of the tract, entered into Improvement Agreements with the City in accordance with the California Subdivision Map Act and the Corona Municipal Code to secure the off-site public improvements required for TM 36541-1, the first phase of development. Further, on December 7, 2016, the developer entered into Improvement Agreements with the City to secure the construction of on-site public improvements required for the development of the Tract 36541-2 and 36541 (Final) phases.
A substantial amount of the on-site and off-site improvements have been completed for the project. Additionally, the City has issued occupancy to 41 of the 237 proposed units. The developer has requested a reduction of the public improvement securities at this time to alleviate overall bond liabilities. Based on the engineer’s estimate, over 90 percent of the work has been completed. City staff recommends reducing the Faithful Performance and Labor and Material Securities described above by fifty percent (50%), which will ensure sufficient securities are retained to guarantee completion of the work.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
The developer paid $1,523.00 for a bond reduction fee.
ENVIRONMENTAL ANALYSIS:
Per Sections 15162 and 15163 of the State Guidelines for Implementing California Environmental Quality Act (CEQA), no subsequent environmental evaluation is required when an Environmental Impact Report (EIR) has been certified for a project and no substantial changes have been made to the project. An addendum to the Sierra Bella Specific Plan EIR (SPA12-005) was prepared in accordance with CEQA and certified by the City Council on May 1, 2013.
Furthermore, this specific action before Council is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely reduces the current securities associated with the property. Since there is no possibility that adopting this action will have a significant effect on the environment, no environmental analysis is required.
PREPARED BY: MICHELE HINDERSINN, P.E., SENIOR CIVIL ENGINEER
REVIEWED BY: TOM KOPER, P.E., ACTING PUBLIC WORKS DIRECTOR
REVIEWED BY: ROGER BRADLEY, ASSISTANT CITY MANAGER
SUBMITTED BY: JACOB ELLIS, CITY MANAGER
Attachments:
1. Exhibit A - Location Map
Owner: Lennar Homes of California
980 Montecito Drive, #302
Corona, CA 92879
(951) 817-3542
Engineer: Proactive Engineering West
25109 Jefferson Avenue, Suite 200
Murrieta, CA 92562