TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Final Acceptance of Public Improvements - Tract Map No. 18903 (Meritage Homes of California, Inc.).
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RECOMMENDATION
recommendation
1) Appropriate $1,178,914 to the Storm Drain Fund with a corresponding year-end transfer from the Citywide Storm Drain Development Impact Fee Fund (Fund 255), in the same amount; 2) accept public improvements as complete for Tract Map No. 18903; 3) authorize the release of the performance bond and initiate the warranty bond; 4) approve an immediate reimbursement to Meritage Homes of California, Inc. in the amount of $1,178,914 for the construction of Storm Drain Line 43-1, thus, fulfilling the terms of the Construction Credit/Reimbursement Agreement No. 2020-136; and 5) authorize the City Manager to execute the necessary documents on behalf of the City.
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FISCAL IMPACT
Requires an appropriation of $1,178,914 to the Strom Drain Fund with a corresponding year-end transfer from the Storm Drain Development Impact Fee Fund 255, in the same amount. There is sufficient fund balance in Fund 255 for this transaction. Additionally, there are sufficient funds included in the City’s Operating Budget to support the ongoing maintenance activities related to the public improvements being accepted.
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
• Responsible Long-Range Planning
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Revenue: |
Expenditure: 5407360-43640 |
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Transfer In: 5401000-50002 |
Transfer Out: 2551000-40002 |
BACKGROUND
Meritage Homes of California, Inc. ("Meritage") submitted its application to the City to subdivide 12.04 acres into 38 single-family lots within the Residential, 4.5 dwelling units/acre land-use designation. This development is generally located north of Chino Avenue between Pipeline and Norton Avenues "originally" within the City of Chino’s Sphere of Influence ("SOI"), as shown on Exhibit A. On April 18, 2017, the City Council approved an Annexation, Prezone, General Plan Amendment, and Tentative Tract Map for the future development of the project site. The Local Agency Formation Commission (LAFCO) also approved the project with the site officially being annexed into the City on November 29, 2017. Subsequently, the Planning Commission conditionally approved Site Approval PL17-0112 and Tentative Tract Map. No 18903 on August 20, 2018, for the development of 38 single-family homes.
The Conditions of Approval ("COA") required public improvements along the project’s frontage between Pipeline and Norton Avenues north of Chino Avenue as well as in-tract improvements as shown on Exhibit B. These public improvements include curb, gutter, sidewalk, curb ramps, signing & striping, drive approaches, street paving, sewer, and domestic water improvements. Additionally, Meritage was required to construct storm drain improvements to direct street drainage north of the project site to the proposed master-planned storm drain on Pipeline Avenue. Improvements include pipeline and box conveyance structures, catch basins, connector pipes, and appurtenant structures associated with the improvements required per the COA. These improvements lie within Pipeline Avenue, Denali Lane, Ryan Way, and Rushmore Court right of ways. This storm drain is included in the City’s Master Plan of Drainage specifically referenced as Line 43-1. These public improvements necessitated the execution of a Subdivision Improvement Agreement and the posting securities that were approved by the City Council on July 2, 2019 (Exhibit C).
Typically, facilities included in the Master Plan of Drainage are concurrently included in the City’s Development Impact Fee Nexus and Calculation Report and correlating Master Facilities Plan ("Nexus Report"), which are eligible for Development Impact Fee ("DIF") credit and reimbursement per the City’s Municipal Code Chapter 3.40. Since Line 43-1 was originally located in the City’s SOI, it was not included in the Nexus Report. Additionally, in the interests of both parties, the City issued a Letter of Commitment to the Developer on March 20, 2019, stating that the Nexus Report will be updated to include Line 43-1 and that the City agrees to enter into a credit/reimbursement agreement upfront to ensure the timely delivery of the project and to establish order of placement for reimbursement as fund balances become available. The construction credit/reimbursement agreement was approved by the City Council on October 1, 2019 (Exhibit D).
On September 7, 2021, residents in the tract raised concerns regarding the status of certain public improvements and requested that the Council add a discussion item regarding these concerns to a future agenda for Council action. Those concerns included standing water along the street gutters, excessive red curb markings, and the location of the community’s mailbox. The City Council discussed the status of the improvements at the September 21, 2021 meeting, and asked staff to bring an update to the Council. City staff addressed the concerns that were brought forth by the residents and provided the Council with a status update that was received and filed at the October 5, 2021 meeting.
In December 2021, City staff observed minor cracking in the asphalt pavement primarily along Rushmore Court and Ryan Way. This minor cracking was addressed by the developer in the Spring of 2022 at the request of City staff through the application of a slurry seal to the existing asphalt pavement. However, after the application of the slurry seal, City staff received complaints from residents regarding observed signs of raveling and disintegration of the pavement. Staff promptly responded to the issues raised by the residents and coordinated with the developer to investigate their concerns.
In January 2023, City staff observed cracking in the newly slurry-sealed pavement primarily along Rushmore Court and Ryan Way. These new cracks appeared to be more extensive than what was previously observed, which prompted City staff to investigate whether there might be any underlying issues with the integrity of the pavement. City staff investigated the matter with the assistance of its Geotechnical Engineering consultant and had several meetings with the developer’s consultant team. City staff also received the City Council Infrastructure Committee Member Lucio’s feedback on the proposed solution to address the pavement cracking concern at meetings held on July 6, 2023, and September 13, 2023.
ISSUES/ANALYSIS
The concerns raised by the residents regarding the public improvements for this tract have been addressed as summarized below:
• Standing Water
Staff initially recommended two approaches as a solution for the standing water along the Denali Lane and Ryan Way street gutters. The first approach was to remove and replace the existing curb & gutter using a tighter survey control, better formwork construction, and better concrete finishing techniques. The second approach was to replace portions of curb-drain pipe from residential lots with a perforated pipe system wrapped in fabric and clean gravel to allow the percolation of excess irrigation water into the ground in-lieu of discharging into street gutters. This perforated pipe system would be located within the public right of way outside of private property.
While these two approaches could help improve the standing water situation, staff concluded they would not entirely resolve the drainage issue. The existing curb & gutter was determined to be designed and constructed per approved plans and City standards. Therefore, its reconstruction wouldn’t significantly change the existing street gutter slopes. In addition, without regular maintenance being performed by the adjacent homeowners, the accumulation of sediment and debris in curb drains from residential lots would likely clog the perforated pipe system over time thus nullifying their intended purpose.
The resident at 4215 Denali Lane had previously raised concerns about standing water in front of their driveway. Staff investigated the concern and determined that the existing street gutter in front of the property had adequate slope to ensure positive drainage per the approved plans. However, staff also determined that the standing water was due to the slowing of nuisance water flow across the driveway resulting from the accumulation of sediment and debris combined with slight variations in the street gutter slope/depression at certain points in front of the property. Staff agreed to help address the concern by requiring the developer to reconstruct a portion of the street gutter along the property frontage to slightly increase the street gutter slope beyond what was specified on the approved plans. The gutter reconstruction work occurred during the week of February 12, 2024, and was completed to the satisfaction of the resident and staff.
• Red Curb Striping
City staff reviewed and approved a revised signing and striping plan provided by the developer that reduced the number of red curb markings in the tract. The Public Works Department then began removing areas of excess red curb on September 10, 2021, using high-pressure water. During the removal process, concrete patching that was previously applied to address damage from construction activities had begun to crumble and fail. Staff documented these failures and had the developer remove and replace the damaged areas. The Public Works Department then continued with the red curb modifications per the revised signing and striping plan.
• Community Mailbox
City staff received complaints from residents regarding the relocation of the community mailbox within the tract. The community mailbox was initially installed by the developer at an interim location on Rushmore Court, which is near model homes and the first phase of production units but was later relocated to its ultimate location on Denali Lane as part of the tract buildout. The current location of the community mailbox is centrally located within the tract and was approved by the U.S. Postmaster. City staff has received direction from the Council to investigate the possibility of splitting the existing community mailbox into two or more separate locations that are more conveniently accessed by residents. City staff has sent a request to split up the mailbox to the U.S. Postmaster and is currently waiting for a response.
City staff also received grievances regarding the lack of a curb ramp adjacent to the community mailbox. Public Works staff intends to proceed with the installation of the requested curb ramp upon the City Council’s acceptance of the public improvements.
• Asphalt Pavement
On October 20, 2022, at the recommendation of the City’s geotechnical consultant, City staff contacted the developer to request a response and proposed a solution to address the issues raised by the residents regarding the application of slurry seal. According to the developer, the reported issues are common occurrences when a slurry seal is applied to occupied residential areas. Furthermore, the developer indicated that homeowners were provided with prior notification about the possibility of these reported issues. The residents were also made aware, through the notification, that tire markings and raveling are inevitable in the slurry application process but following recommendations provided by the contractor would help significantly decrease the number of blemishes in the asphalt.
City staff was satisfied with the developer’s response to concerns but will continue to monitor the pavement condition throughout the 1-year warranty period. In addition, staff intends to withhold the release of the warranty bond and require the developer to remove and replace the existing pavement should it degrade to an unacceptable level during the warranty period.
Various historical inspection and testing documents were reviewed by City staff in coordination with the developer’s consultant team to determine what was the cause of the pavement cracking. The past data didn’t suggest there were any underlying issues with the pavement. The developer’s consultant team concluded that it was normal thermal cracking primarily caused by temperature changes in the environment while the pavement was still warm. The City’s Geotechnical consultant agreed that most of the cracks appeared to be normal thermal cracks, but some appeared to be more extensive despite not having any data that would suggest otherwise.
To address the pavement cracking concern, the developer agreed to pay the City $136,180, which is the estimated cost to rehabilitate the impacted streets within the community. This amount has been paid by the developer and will be utilized by the City’s CIP program to conduct future pavement rehabilitation in the community when it’s determined to be necessary.
Staff worked with the developer and have deemed the public improvements to be substantially complete and have been constructed to the satisfaction of the City Engineer. The public improvements that are being accepted by the City include crosswalks, curb ramps, sidewalks, streetlights, curb and gutter, paving, water, sewer, and storm drain. These improvements will contribute to a positive city image by providing safe pedestrian access through the installation of sidewalks, curb ramps, and crosswalks along various streets. The improvements that are being accepted have been satisfactorily constructed to meet the City and all applicable accessibility requirements.
Additionally, City staff and its consultant reviewed the final accepted/approved "as-built" plans, specifications, and supporting documentation for Storm Drain Line 43-1 and determined that $1,234,520 is eligible for DIF credit/reimbursement. Additionally, storm drain DIF credits were issued to Meritage for its phased residential development project for Tract Map No.18903 for $55,606. These credits were deducted from the actual validated costs of $1,234,520, bringing a balance forward in the amount of $1,178,914 that is owed to the developer. Staff analyzed the Citywide DIF Storm Drain fund balance and it was determined that there is sufficient fund balance available to reimburse the developer in full; thus, fulfilling the terms of the agreement.
All required development-related fees have been paid and security for a one-year warranty period has been submitted. Under the warranty bond obligation, the developer will correct any defects found within one-year of City Council’s acceptance of the project.
Additionally, on November 5, 2019, the City Council approved the annexation of the property to Landscaping and Lighting District No. 2002-1 (Annexation/Zone No. 81) to offset the costs of public streetlights.
With approval by the City Council, the following maintenance obligations will commence:
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Public Street Sweeping: |
By the City |
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Public Sidewalks: |
By the City |
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Public Streetlights: |
By the City |
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Public Storm Drain: |
By the City |
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Public Sewer: |
By the City |
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Domestic Water: |
By the City |
Attachments:
Exhibit A - Location Map
Exhibit B - Public Improvements Index Map
Exhibit C - Fully Executed Subdivision Improvement Agreement & Bonds
Exhibit D - Fully Executed Construction Credit & Reimbursement Agreement