TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Lennar Homes Settlement Agreement Second Addendum.
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RECOMMENDATION
Approve Addendum No. 2 to the Settlement Agreement with Lennar Homes for required improvements in the City of Chino per the Americans with Disabilities Act and California Law.
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FISCAL IMPACT
The DIF Fund 260 balance will increase by $553,500.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
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Revenue: 2607005-56520 |
Expenditure: |
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BACKGROUND
The City Attorney’s office and City staff engaged in settlement negotiations with Lennar Homes for several tracts in the City of Chino that have accessible elements under the Americans with Disabilities Act and California law. The disputes focus on prior City approvals for construction-some as early as the mid-2000’s through 2020. During this time, the City became more focused on ensuring street improvements met or exceeded accessibility requirements, which led the City to not accept improvements in tracts where improvements had been previously constructed. Following extensive negotiations, the City and the Developer reached a conceptual agreement on the terms of the settlement of those disputes per the terms of the attached Settlement Agreement (Exhibit A).
On January 17, 2023, the City Council approved Addendum No. 1 to the settlement agreement with Lennar Homes for required public improvements in the City of Chino per the Americans with Disabilities Act and California Law. The addendum includes additional requirements to be completed by Lennar Homes, specifically the public improvements at the northeast corner of Eucalyptus and Fern Avenues including curb ramp, sidewalk, multi-purpose trail, and parkway landscape; and the enhanced street crossings at the Eucalyptus and Fern Avenues intersection to be constructed in-lieu of a proposed traffic signal.
ISSUES/ANALYSIS
Based upon instructions from the City Council regarding the development of the intersection at Eucalyptus and Fern Avenues, and after further discussion between the City and Lennar Homes, the outstanding intersection improvements will be completed by the City and primarily funded by Lennar Homes, which necessitates another addendum to the Settlement Agreement to formalize this change. The parties have agreed that Lennar Homes will pay the sum $553,500 to the City towards the construction of the proposed traffic signal and street improvements at the subject intersection, which are estimated to cost $600,000. The funds will be deposited into the DIF Fund 260-Preserve Bridges-Signals -Thoroughfare. The City plans to put the project out to bid this month.
Addendum No. 2 also formalizes a revised quantity of sidewalk and curb ramps referenced in K-2 and M of the Settlement Agreement to reflect a reduction for sidewalks and ramps located in private property areas within the Tract Map No. 18972 residential community for which no additional work will be performed by the City. The payments due to the City per Exhibits K-2 and M of the Settlement Agreement are accordingly decreased from $228,788.56 to $31,647.28.
Attachment:
Exhibit A - Settlement Agreement Addendum No. 2