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BACKGROUND Background for Tract 8259 On April 12, 2017, the Planning Commission recommended the approval of PUD-113, a Planned Unit Development (PUD) application by Ponderosa, to demolish a religious building and related improvements and construct 36 single-family homes, a private clubhouse with a parking lot, a public restroom, and related site improvements on an approximately nine-acre site located at 6900 Valley Trails Drive. On May 2, 2017, the City Council approved PUD-113 and the Vesting Tentative Map 8259 by adopting Ordinance No. 2162 and Resolution 17-932, respectively. On June 6, 2017, the City Council approved the Development Agreement (DA) by adopting Ordinance No. 2163. This DA, among other things, contained the details involving the construction and maintenance of a public restroom to serve Valley Trails Park. Working with staff, the developer has prepared the Final Map, Improvement Plans, Subdivision Agreement and other legal documents for Tract 8259. Engineering, Planning, and the City Attorney's Office staff have reviewed these documents and have found them to be in substantial compliance with the approved PUD-113, Vesting Tentative Map, and Development Agreement. Ponderosa has paid all development fees and submitted performance and labor and material bonds as provided for in the Subdivision Agreement. Background for the Subdivision Agreement The existing public water main on Valley Trails Drive adjacent to the development is in poor condition and has required seven repairs since 2011. In consideration of the condition of the water main and repair history, and since the development would need to connect to this main at 12 separate locations, staff has determined that this is an opportune time to replace the water main. See Attachment 2 for the limits of the replacement of the existing public water main. Ponderosa has provided a cost proposal for $234,643 from J&M, Inc., a general contractor, based upon the plans reviewed and approved by the City to comply with City Standards (see Attachment 3). Staff has reviewed the cost estimate and believes it to be reasonable. Since this is an existing public water main, requiring no upsizing to serve the development, City staff is proposing to split the cost of construction with Ponderosa 75/25 percent, respectively. The City's share would be a not-to-exceed amount of $175,982.25 (75 percent of$234,643). DISCUSSION Proposed Improvements and Maintenance Responsibility As shown on Attachment 4, the development proposes to construct new public streets (Arches Way, Chesapeake Bay Court, and Salt River Bay Court), install public street lights and fire hydrants, replace the existing public water main on Valley Trails Drive adjacent to the development, and construct public storm drain lines and water and sanitary sewer mains within the public streets to serve the 36 single-family home lots, the clubhouse, and the public restroom. The street lights, fire hydrants, storm drain Page 2 of 4