TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Accept public improvements as complete for Tract Map Nos. 16837, 16997, and 16998.
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RECOMMENDATION
Final Acceptance of Public Improvements for Tract Map Nos. 16837, 16997, and 16998, generally located between the Cypress Channel and Euclid Avenue in the College Park Specific Plan area.
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FISCAL IMPACT
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
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BACKGROUND
On September 7, 2004, the City of Chino entered into the College Park Development Agreement (“DA”) with SCC/College Park, LLC (“SunCal”), the City of Chino Redevelopment Agency, and the State of California. The DA was entered into to help guide the orderly development of College Park, which was envisioned as a master-planned residential community. Additionally, the DA set the terms and conditions of development on property owned by SunCal and established the rights and obligations of the developer and the City during development. The DA also outlines the various terms and conditions associated with constructing public improvements within and surrounding the College Park Specific Plan area.
The DA, in conjunction with the conditions of approval for Tract Map No. 16837 and nine “B” level residential tracts, required SunCal and its guest builders to design and construct various public improvements as a condition to the development of College Park. Tract Map No. 16837 is the underlying “A” level subdivision that provides for the design and construction of various backbone facilities for College Park Phase 1, as shown on Exhibit A. Tract Maps Nos. 16997 and 16998 are the remaining two tracts out of the nine “B” level residential tracts located within Tract Map No. 16837 that still require final acceptance by the City Council for the remaining public improvements.
The public improvements conditioned under each tract necessitated the execution of a Subdivision Improvement Agreement (“SIA”) and posting of the necessary securities to ensure the timely delivery of the required public improvements. The SIAs are summarized below:
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Developer / Guest Builder |
Tract |
City Council Approval |
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SunCal |
Tract Map No. 16998 |
January 17, 2006 |
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LB/L-Pacer College Park PA2, LLC |
Tract Map No. 16997 |
July 18, 2006 |
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SunCal |
Tract Map No. 16837 |
August 19, 2008 |
Under normal circumstances, the final acceptance of public improvements would occur only when all required improvements are completed. However, on August 19, 2008, at SunCal’s request, the City Council approved a partial acceptance / bond reduction for Tract Map No. 16837 for the completed water, sewer, storm drain, and partial street improvements.
Subsequently, on October 20, 2009, the City Council approved a Development Impact Fee (“DIF”) reimbursement agreement for this tract for the widening on Fern and San Antonio Avenues located west of Euclid Avenue. The remaining unaccepted street improvements for this tract are highlighted in the attached Exhibit A, which includes but is not limited to, major roadways such as Eucalyptus Avenue and San Antonio Avenue.
Upon the partial acceptance of the public improvements by the City Council, SunCal provided to the City a bond rider for the amended amount, which decreased the bond premium significantly to help reduce costs incurred by the developer. Subsequently, in 2010, SunCal filed for bankruptcy and the rights and interests to the DA were transferred with the sale of the property to LS College Park, LLC (“Lennar”).
Additionally on August 21, 2012, the City Council approved a partial acceptance / bond reduction for most of the public improvements constructed with Tract Map No. 16997. The remaining improvements consist of street capping, driveways, sidewalks, and parkway landscape, which were ultimately constructed by DR Horton as part of the purchase of undeveloped lots from Pacer within the tract.
ISSUES/ANALYSIS
On November 15, 2022, the City Council approved five separate settlement agreements with developers including Lennar. The agreement with Lennar addressed disputes related to public street improvements constructed in the College Park Specific Plan area that didn’t meet the City’s accessibility requirements. All tracts within College Park were part of the settlement agreement; however, Tract Map Nos. 16837, 16997, and 16998 were not made a part of the settlement agreement since the securities were not obtained through Lennar.
According to the settlement agreement with Lennar, all parcels on which plans and specifications for development or encroachment permits that were approved by the City prior to December 31, 2016, are considered a “Category A” parcel. For “Category A” parcels, the settlement agreement specifies that the City would accept the public improvements as-is provided the developer submits all required documentation to close out a project including, but not limited to, the submittal of “as-built” drawings. Therefore, had TMs 16837, 16997, and 16998 been included in the settlement agreement, they would have been considered “Category A” parcels.
City staff has been coordinating with Lennar Homes to continue the process of closing out the various residential tracts in accordance with the settlement agreement. As part of this effort, staff also recommends proceeding with the acceptance of public improvements within Tract Maps Nos. 16837, 16997, and 16998 to allow for the long overdue commencement of operation and maintenance activities in these residential communities. This recommended approach to the acceptance of public improvements was reviewed and approved by the Infrastructure Committee on March 27, 2024.
The public improvements that are being accepted by the City of Chino include street and utility improvements. All public improvements that were part of the conditions of these projects were fully funded by the developers.
Upon final acceptance, the public improvements shall become the sole exclusive property of the City to operate and maintain. The following maintenance obligations will commence following acceptance of the public improvements:
Public Street Sweeping: By the City
Public Domestic Water: By the City
Public Recycled Water: By the City
Public Sewer: By the City
Public Storm Drain: By the City
Public Streetlights: By the HOA
Parkway Landscaping: By the HOA
Attachment: Exhibit A College Park Phase 1 Location Map