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BACKGROUND On August 10, 2016, the Planning Commission recommended City Council approve PUD -110, a Planned Unit Development (PUD) application by Irby Ranch, LLC, to construct the subdivision improvements associated with Tract 8245. On February 21, 2017, City Council adopted Ordinance No. 2157, approving PUD -110, and Ordinance No. 2158, authorizing a development agreement with Irby Ranch, LLC. On June 19, 2018, City Council approved the final map for Tract 8245, the subdivision improvement agreement, and the improvement plans for the subdivision. City Council also accepted public right-of-way and easement dedications, as offered by Meritage Homes of California, Inc., successor to Irby Ranch, LLC. On June 16, 2020, City Council approved an amendment to the subdivision improvement agreement. This amendment directed Meritage to construct a needed segment of 16 -inch -diameter water main in Nevada Street, between California Street and Bernal Avenue, in exchange for reimbursement of costs up to a not -to -exceed amount of $840,930. DISCUSSION Improvements and Maintenance Responsibility Meritage constructed homes on Lots 1 through 87 within Tract 8245. They also relocated and renovated the historical Zia House on Parcel K as an amenity for the homeowners association. The internal street network with a storm drainage system and streetlights is privately owned and maintained by the association. The street network includes Parcels L, M, N, O, P and Q. The sanitary sewer and potable water networks within the internal streets are located within public easements and are to be operated and maintained by the City. The association also owns and maintains landscaping and amenities throughout the subdivision located on Parcels A, D, E, F, G, I and J. Parcel H consists of the association -maintained open space that includes the Arroyo del Valle, although a public trail easement across the northern boundary that abuts Nevada Street was dedicated to the City for operation and maintenance of a public trail. In addition, the association maintains the bioretention facilities for stormwater treatment for the entire development both on association -owned parcels and within the public right-of-way on Nevada Street. Parcel C (a portion of Stanley Boulevard) was dedicated to the City along with the extension of Nevada Street between Stanley Boulevard and the eastern subdivision boundary that abuts the Public Storage property. While the City will own and maintain the street, the landscaping for this segment of Nevada Street will be maintained by the association. The City will maintain the landscaping for the continuing segment of Nevada Street to California Street. Aside from the landscaping as described above, all other improvements on both Stanley Boulevard and Nevada Street, including utilities and streetlights, are public. Page 2 of 3