REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Steve Bogart, Acting Principal Civil Engineer
Subject:
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Approve and Accept the Public Improvements, Release the Sureties for, and Accept a Guarantee and Warranty Bond for the Delaware Paxton Residential Project (Parcel Map 2022-106)
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Statement of Issue:
Nash-Holland 18750 Delaware Investors, LLC, the Developer of the Delaware Paxton Residential Project has completed construction of all required public improvements and is now eligible to receive a release of sureties and bonds, pursuant to the provisions of the Subdivision Map Act.
Financial Impact:
No funding is required for this action.
Recommended Action:
recommendation
A) Accept the improvements constructed and dedicated for public use with Parcel Map 2022-106, and instruct the City Clerk to record the Notice of Acceptance of Public Improvements with the Orange County Recorder; and,
B) Accept Guarantee and Warranty Bond No. DVHNSU0832094-W; the surety furnished for guarantee and warranty of public improvements; and instruct the City Clerk to file the bond with the City Treasurer; and,
C) Instruct the City Treasurer to release the Faithful Performance Bond No. DVHNSU0832094, Labor and Material Bond No. DVHNSU0832094 and Monument Bond No. DVHNSU0832094; and,
D) Instruct the City Clerk to notify the developer, Nash-Holland 18750 Delaware Investors, of this action, and the City Treasurer to notify the Surety Company, Harco National Insurance Company, of this action.
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Alternative Action(s):
Deny the recommended actions and direct staff accordingly. Denying the recommended actions may violate the Subdivision Map Act whereby:
Section 66499.9 of the State of California Government Code, requires the guarantee and warranty of the work for a period of one year following completion and acceptance of the improvement(s), against any defective work, labor and materials furnished. Denying the acceptance of the Guarantee and Warranty Bond may place undue burden and costs upon the City for correcting any defective work, labor and materials furnished by the subdivider.
Analysis:
On May 6, 2022, the Director of Community Development conditionally approved Tentative Parcel Map No. 2022-106, authorizing a four-parcel consolidation for the construction of a 346-unit residential apartment complex, located south of Main Street, between Delaware Street and Florida Street, and north of the Pacifica medical office building at 18800 Delaware Street. On September 5, 2023, City Council subsequently approved execution of the Subdivision Agreement between the City of Huntington Beach and Nash-Holland 18750 Delaware Investors, LLC, and accepted the project’s required Faithful Performance Bond, Labor and Material Bond and Monument Bond.
The developer has completed all required public improvements and is now requesting release of the sureties, pursuant to California Government Code Section 66499.7(a). The constructed public improvements include curb, gutter, and sidewalk along the project’s Delaware Street and Florida Street frontages, a new section of public storm drain pipeline, and public water and sewer connections to the existing public mains within Delaware Street. The City Engineer has determined that the public improvements have been constructed in substantial compliance with the approved project plans and specifications and recommends the City’s acceptance of these improvements.
Pursuant to the project’s conditions of approval, Nash-Holland 18750 Delaware Investors has provided Guarantee and Warranty Bond No. DVHNSU0832094-W as a surety for the one-year warranty period (of the public improvements) and is now requesting acceptance of this bond.
Project data
Developer: Nash-Holland 18750 Delaware Investors, LLC
Attention: George Klett
5000 E. Spring Street, Suite 500, Long Beach, CA 90815
Surveyor: David Evans and Associates, Inc. 25152 Springfield Court, Suite 350,
Santa Clarita, CA 91355
Surety: HARCO NATIONAL INSURANCE COMPANY, 330 N Brand Boulevard, Suite 700, Glendale, CA 91203 (Amanda Garcia 213-337-4615)
Location: 18750 Delaware Street (east side, south of Main Street, between Delaware Street and Florida Street)
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Location Map
2. Acceptance of Public Improvements
3. Guarantee and Warranty Bond
4. PowerPoint Presentation