20-1207_TNHC SAN JUAN LLC_Agenda Report_F11City of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Benjamin Siegel, City Manager
SUBMITTED BY: Thomas Toman, Public Works Director
PREPARED BY: Joe Parco, City Engineer
Jeremy Hohnbaum, Senior Civil Engineer
DATE: December 7, 2020
SUBJECT: Resolution for Notice of Completion, Acceptance of Certain Work of
Improvements, and Release of Corresponding Sureties Pertaining to the
Subdivision Improvement Agreement for Tract Map’s 16146, 17655 and
17713 (Oliva)
RECOMMENDATION:
1.Adopt a resolution accepting the work of improvements pertaining to Tract Nos. 16146,
17655 and 17713 (The New Home Company San Juan LLC, a Delaware LLC); and,
2.Direct the City Clerk to process the recording of the Notice of Completion with the
Orange County Clerk/Recorder; and,
3.Authorize the City Clerk to release the corresponding bonds 35 days after the recordation
of the Notice of Completion.
EXECUTIVE SUMMARY:
The New Home Company San Juan LLC, a Delaware LLC, developer of Tract Numbers
16146, 17655 and 17713, has requested that the City release the onsite and offsite
improvement bonds held by the City. A location map is included as Attachment 1. The final
improvements have been inspected and satisfactorily completed. Staff recommends
adoption of a resolution (Attachment 2) accepting the work as complete, the filing of a Notice
of Completion (Attachment 3) and the release of the corresponding bonds in the amount of
$7,810,396.05
12/7/2020
F11
City Council Agenda Report
December 7, 2020
Page 2 of 4
DISCUSSION/ANALYSIS:
On December 20, 2005, the City Council adopted Resolution No. 05-12-20-02 conditionally
approving Vesting Tentative Tract Map 16146 for a 31-lot residential subdivision on 16.14
acres of land owned by Martin E. and Marion E. Scalzo Family 1987 Trust (“Owner”). In
2013, The New Home Company (“Applicant”/”Subdivider”) purchased a portion of the
Tentative Tract Map (TTM) 16146 known as the Oliva Subdivision (formerly known as
Belladonna Estates) from the Owner. After the transfer, TTM 16146 was subdivided into three
Final Tract Maps 16146, 17655, and 17713, and recorded with associated Subdivision
Improvement Agreements.
The Developer has completed the improvement work as required by the Conditions of
Approval and the Grading Surety Agreements. The improvements have been inspected and
have been found to be completed per City standards and to the satisfaction of the City
Engineer, Assistant Utilities Director, Building Official, and the Director of Development
Services. Additionally, the Homeowner’s Association has provided a letter of acceptance for
the common area improvements. Consequently, staff recommends adoption of a resolution
accepting the work as complete and the recordation of a Notice of Completion for the project.
With the completion of the improvements as noted in the summary above, the outstanding
bonds by Philadelphia Indemnity Insurance Company are as follows:
Bond Number Type of Improvement Bond Amount
PB02497500070 Rough Grading $ 1,438,800.00
PB02497500123 Landscape and Irrigation $ 1,744,000.00
PB02497500125 Monumentation $ 24,000.00
PB02497500168 Precise Grading $ 130,576.05
PB02497500201 Street Improvements $ 204,000.00
PB02497500204 Drainage Improvements $ 247,000.00
PB02497500205 Landscape and Irrigation $ 918,000.00
PB02497500206 Monumentation $ 13,000.00
PB02497500230 Rough Grading $ 378,020.00
PB02497500121 Street/Water/Sewer/Drainage (Tract17713) $ 2,428,000.00
PB02497500202 Water (Tract 17655) $ 142,000.00
PB02497500203 Sewer (Tract 17655) $ 143,000.00
Total Bond Amount $7,810,396.05
FISCAL IMPACT:
There would be no fiscal impact associated with the recommended actions.
City Council Agenda Report
December 7, 2020
Page 3 of 4
ENVIRONMENTAL IMPACT:
The recommended action of adopting a resolution accepting the work of improvements
pertaining to Tract Map 16146, 17655 and 17713 is not subject to CEQA pursuant to Section
15060(c)(3) of CEQA Guidelines because the action is not a project as defined in Section
15378 of the CEQA Guidelines, and the action has no potential for resulting in physical
change to the environment, directly or indirectly.
PRIOR CITY COUNCIL REVIEW:
• On August 19, 2014, the City Council adopted Resolution No. 14-08-19-03, which
deleted several conditions of approval for TTM 16146. In addition, City Council
adopted Resolution 14-08-19-02, adopting a Mitigated Negative Declaration and
conditionally approving TTM 17655.
• On March 17, 2009, the City Council adopted Resolution No. 09-03-17-07, which
clarified Condition 77 of the TTM 16146.
• On September 16, 2008, the City Council adopted Resolution No. 08-09-16-05, which
modified several conditions of approval for TTM 16146.
• On April 17, 2007, the City Council adopted Resolution No. 07-04-17-03, which
modified some of the conditions of approval of TTM 16146, approved a memorandum
of understanding between the City and the Scalzo Family Trust, and provided a one-
year extension to the TTM 16146.
• On November 21, 2006, the City Council adopted Resolution No. 06-11-21-03, which
closed the meet and confer condition and deleted this from the TTM 16146 conditions
of approval.
• On July 3, 2006, the City Council adopted Resolution No. 06-07-03-07, which was
related to extending time to meet and confer on the conditions of approval for the
southwesterly access road responsibilities between the developer, City and adjacent
landowners.
• On December 20, 2005, the City Council adopted Resolution No. 05-12-20-02
conditionally approving Vesting Tentative Tract Map (TTM) 16146, consisting of the
subdivision of 31 residential lots on 16.14 acres of land previously referred to as the
Belladonna Estates.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
On July 8, 2014, the Planning Commission adopted a Resolution recommending the City
Council adoption of a Mitigated Negative Declaration Addendum, approval of a modification
City Council Agenda Report
December 7, 2020
Page 4 of 4
to Tentative Tract Map (TTM) 16146, and approval of a modification to Architectural Control
(AC) 13-028.
NOTIFICATION:
The New Home Company San Juan LLC, a Delaware LLC
Donna M. Ostermiller and Frederick Scalzo
Pam Patterson
Tracy Weintraub
ATTACHMENTS:
Attachment 1: Location Map
Attachment 2: Resolution
Attachment 3: Notice of Completion
ATTACHMENT 1, Page of 1
LOCATION MAP
ATTACHMENT 2, Page 1 of 2
RESOLUTION NO. 20-12-07-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, DETERMINING COMPLETION OF WORK
IN ACCORDANCE WITH APPROVED PLANS AND SPECIFICATIONS
FOR THE CONSTRUCTION OF ON-SITE AND OFF-SITE
IMPROVEMENTS ASSOCIATED WITH TRACT 16146, 17655 and 17713
OLIVA RESIDENTIAL DEVELOPMENT (APPLICANT: THE NEW HOME
COMPANY SAN JUAN LLC, A DELAWARE LLC)
WHEREAS, on December 20, 2005, the City Council adopted Resolution No. 05-
12-20-02 conditionally approving Vesting Tentative Tract Map 16146 for a 31-lot
residential subdivision on 16.14 acres of land owned by Martin E. and Marion E. Scalzo
Family 1987 Trust (“Owner”). In 2013, The New Home Company
(“Applicant”/”Subdivider”) purchased a portion of the Tentative Tract Map (TTM) 16146
known as the Oliva Subdivision (formerly known as Belladonna Estates) from the Owner.
After the transfer TTM 16146 was subdivided into three Final Tract Maps 16146, 17655,
and 17713, and recorded with associated Subdivision Improvement Agreements which
included conditions for on-site and off-site improvements; and,
WHEREAS, The New Home Company San Juan LLC, a Delaware LLC, the
current developer of Tract 16146, 17655 and 17713 has requested that the City determine
that such on-site and off-site improvements are completed and the corresponding
remaining surety bonds be released accordingly. The surety release is as follows:
SURETY COVERAGE
(Philadelphia Indemnity Insurance Company)
Bond Number Type of Improvement Bond Amount
PB02497500070 Rough Grading $ 1,438,800.00
PB02497500123 Landscape and Irrigation $ 1,744,000.00
PB02497500125 Monumentation $ 24,000.00
PB02497500168 Precise Grading $ 130,576.05
PB02497500201 Street Improvements $ 204,000.00
PB02497500204 Drainage Improvements $ 247,000.00
PB02497500205 Landscape and Irrigation $ 918,000.00
PB02497500206 Monumentation $ 13,000.00
PB02497500230 Rough Grading $ 378,020.00
PB02497500121 Street/Water/Sewer/Drainage (Tr. 17713) $ 2,428,000.00
PB02497500202 Water (Tr. 17655) $ 142,000.00
PB02497500203 Sewer (Tr. 17655) $ 143,000.00
Total Bond Amount $ 7,810,396.05
ATTACHMENT 2, Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San
Juan Capistrano as follows:
SECTION 1. That the improvement work required to be performed by said developer
has been completed and approved.
SECTION 2. That the completed work with a value of $7,810,396.05 is accepted.
SECTION 3. That the sureties described in the chart above may be released
accordingly.
PASSED, APPROVED, AND ADOPTED this 7th day of December 2020.
Troy A. Bourne, Mayor
ATTEST:
_____________________________
Maria Morris, City Clerk
APPROVED AS TO FORM:
_____________________________
Jeffrey C. Ballinger, City Attorney
BEST BEST & KRIEGER LLP
ATTACHMENT 3, Page 1 of 1
RECORDED AT REQUEST OF AND
RETURN TO:
City of San Juan Capistrano
City Clerk's Office
32400 Paseo Adelanto
San Juan Capistrano, CA 92657
RECORDING FEES EXEMPT DUE TO
GOVERNMENT CODE SECTION 27383
_____________________________________
Maria Morris, City Clerk
San Juan Capistrano, CA
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on March 3, 2015, Subdivision Improvement Agreements
were entered into by the City of San Juan Capistrano and The New Home Company San Juan
LLC, a Delaware LLC, for the construction of on-site and off-site improvements relating to the
development of Tract 16146, 17655 and 17713 (Oliva Subdivision) in San Juan Capistrano.
That said work was completed on November 14, 2018, by said company according to plans
and specifications and to the satisfaction of the City Engineer of the City of San Juan
Capistrano, and that said work was accepted by the City Council of the City of San Juan
Capistrano, as the owner, 32400 Paseo Adelanto, San Juan Capistrano, California 92675, at a
regular meeting thereof held on the 7th day of December 2020 by Resolution No. 20-12-07-XX.
That upon said contract, Philadelphia Indemnity Insurance Company was surety for the bonds
given by the said company as required by law.
Dated at San Juan Capistrano, California, this 7th day of December 2020.
__________________________________________
Maria Morris, City Clerk
City of San Juan Capistrano
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARIA MORRIS, the duly appointed and qualified City Clerk of the City Council of the
City of San Juan Capistrano, California, DO HEREBY CERTIFY, under penalty of perjury that
1) I have read the foregoing document and know the contents thereof, and the facts therein
state are true of my own knowledge; 2) I declare the forgoing is true and correct; and 3) the
foregoing Notice of Completion was duly and regularly ordered to be recorded in the Office of
the Orange County Recorder by said City Clerk.
Dated at San Juan Capistrano, California, this 7th day of December 2020.
__________________________________________
Maria Morris, City Clerk,
City of San Juan Capistrano