AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO C. LUNA
PUBLIC WORKS DIRECTOR
SUBJECT:
title
APPROVAL OF FINAL TRACT MAP 74232
summary
Summary:
The developer for the Courtyard Homes Residential Project, Signal Ventures, LLC, is requesting approval of Final Tract Map No. 74232. Staff has determined that the Final Map conforms to the approved tentative map and that the necessary subdivision conditions for approval have been met. Staff is recommending approval of the final map and authorization for the City Manager to execute a Subdivision Improvement Agreement to guarantee the construction of all required offsite public improvements conditioned of the project.
Strategic Plan Goal(s):
Goal No. 1: Financial Stability: Ensure the City’s long-term financial stability and
resilience.
Goal No. 4: Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
recommendation
Recommendation:
Approve Final Map No. 74232 and authorize City Manager to execute Subdivision Improvement Agreement to guarantee the construction of offsite improvements required by Final Tract Map and Public Works Conditions of Approval.
body
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Background:
On November 12, 2024, the Planning Commission held a public hearing and passed Resolution No. 2024-11-6844 conditionally approving Tentative Tract Map No. 74232. This map provided for the tentative subdivision of an approximate 0.56-acre in-fill site at 1933 Temple Avenue into 8 single-family lots for the construction of 8 two-story, single-family dwellings and 1 common lot for the main access driveway. The subdivision, known as the Courtyard Residential Development, is located on the west side of Temple Avenue between East 19th Street and East 20th Street.
Signal Ventures LLC (Developer) is now requesting approval of Final Tract Map No. 74232 (Attachment A). The City Engineer and the Community Development Department reviewed the requirements under SHMC Chapter 18.16 for approval of the final map and determined the final map conforms to the approved tentative map and that the conditions required to proceed with the Final Map approval have been met. The Developer has agreed to enter into a Subdivision Agreement (Attachment B) as required by Chapter 18 of the Municipal Code and Subdivision Map Act Section 66462.
Analysis
Pursuant to Section 66462 of the Subdivision Map Act (SMA), a local agency must require a subdivider to enter into an agreement if the required public improvements have not been completed and accepted prior to the approval of a final map. The attached Subdivision Improvement Agreement (SIA) fulfills this statutory requirement by establishing a binding commitment from the Developer to the City for the timely construction and completion of all outstanding public improvements. Because the Developer has not yet completed the offsite infrastructure improvements required by the City and the project's conditions of approval, the execution of the proposed SIA and the provision of associated securities are necessary for the City's approval of Final Tract Map No. 74232.
The function of a SIA is to mitigate the City's risk by guaranteeing that the necessary infrastructure will be built to Signal Hill Public Works standards without utilizing public funds; the core mechanisms of the agreement include:
• Scope of Work & Financial Responsibility: The Developer is obligated to construct all required public improvements required along the project frontage that include sidewalk paving, new concrete driveway approaches, street trees, parkway landscaping, curbs, gutters, drainage culverts, utility connections, and street resurfacing as identified in the project plans at its own sole cost, expense, and liability.
• Improvement Security: To guarantee performance, the Developer must furnish financial security acceptable to the City Engineer and City Attorney. The required security is based on the Engineer's estimate of actual construction costs ($112,075.70) and includes a Performance Bond (100% of estimated costs), a Labor and Material Bond (50% of estimated costs), a Warranty Bond (10% of estimated costs), and a $5,000 cash deposit for monumentation.
• Construction Schedule: The Developer is required to fully complete the public improvements within twelve (12) months following the approval of the Final Map, unless the City grants a formal extension.
• Risk Allocation & Insurance: The agreement protects the City from construction-related liabilities by requiring the Developer to defend and indemnify the City against any claims arising from construction of the project. Furthermore, the Developer is mandated to maintain comprehensive Commercial General Liability, Automobile, and Workers' Compensation insurance policies throughout the term of the agreement.
• Maintenance & Warranty: The Developer retains all maintenance responsibilities for the improvements, including weekly street sweeping and landscaping care, until such time the public infrastructure is formally accepted by the City Council, at which point Public Works resumes routine street maintenance responsibilities. Following acceptance, the Developer must guarantee the work against defective materials or labor for a period of one year.
Based on the foregoing, staff is recommending approval of Final Tract Map No. 74232. Following City Council approval, the developer would execute the Subdivision Improvement Agreement and furnish insurance and bonds as required by City’s municipal code; the final map would then be routed for the signatures as specified on the first sheet of the final map. Subsequently, the Developer would submit the final map to the Los Angeles County Recorder’s Office (Recorder’s office) for recordation and to receive tax clearance from the Los Angeles County Tax Assessor’s office. Upon completion of all tax clearances with the Tax Assessor’s office, the developer would receive a fully executed and recorded final map from the Recorder’s office and provide the signed maps to the City of Signal Hill. Staff would continue to work with the Developer for the construction of the public improvements and hold all provided bond securities until the work is completed in a manner satisfactory to the Public Works Director.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachment(s):
A. Final Tract Map No. 74232
B. Subdivision Agreement