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:
title
Approve and Accept the Public Improvements, Release Sureties, and Accept Guarantee and Warranty Bond for the Holly Triangle Residential Project (Tract 19118)
body
Statement of Issue:
Bonanni Development Company IV, LLC, the Developer of Tract 19118, has completed construction of all required public improvements and is now eligible for the release of sureties and bonds in accordance with 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 Tract 19118, and instruct the City Clerk to record the Notice of Acceptance of Public Improvements (Attachment 2) with the Orange County Recorder; and,
B) Accept Guarantee and Warranty Bond No. 4470394W (Attachment 3), 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) Release Faithful Performance Bond No. 4470394, Labor and Material Bond No. 4470394, and Monument Bond No. 4470395; and,
D) Instruct the City Clerk to notify the developer, Bonanni Development Company IV, of this action, and the City Treasurer to notify the surety, SureTec Insurance Company, of this action.
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Alternative Action(s):
Deny the recommended actions. Denying the recommended actions may result in non-compliance with the Subdivision Map Act. Specifically, Section 66499.9 of the California Government Code requires a guarantee and warranty of the public improvements for a period of one year following completion and acceptance, covering any defective work, labor or materials furnished. Denying acceptance of the Guarantee and Warranty Bond could place an undue burden and additional costs on the City to correct any defective work, labor, or materials provided by the subdivider.
Analysis:
On May 24, 2022, the Planning Commission approved Tentative Tract Map No. 19118 to consolidate 12 lots into a 1.80 net-acre lot for condominium purposes. The Planning Commission also approved General Plan Amendment No. 20-003, Zoning Text Amendment No. 20-003, and Conditional Use Permit No. 20-025 for the construction of 35 three-story attached townhomes as part of the proposed project.
Subsequently, on February 20, 2024, the City Council approved Final Tract Map No. 19118, authorized execution of the Subdivision Agreement between the City of Huntington Beach and Bonanni Development Company IV, LLC, and accepted the required Faithful Performance Bond, Labor and Material Bond, and Monument Bond for the project.
The developer has now completed all required public improvements and is requesting release of the aforementioned sureties pursuant to California Government Code Section 66499.7(a). The constructed public improvements include curb, gutter, and sidewalk along the project’s perimeter public streets (Holly Lane, Garfield Avenue and Main Street), as well as public water and sewer connections to the existing mains within Holly Lane.
The City Engineer has determined that the public improvements have been constructed in substantial compliance with the approved plans and specifications and recommends acceptance of these improvements.
Pursuant to the project’s conditions of approval, Bonanni Development Company IV, LLC has provided Guarantee and Warranty Bond No. 4470394W as a surety for the one-year warranty period for the public improvements and is now requesting acceptance of this bond.
Project Data
Developer: Bonanni Development Company IV, LLC
Attention: Ed Bonanni
15132 Bolsa Chica Street, Huntington Beach, CA 92649
Surveyor: Jeffrey A. Walden, Walden & Associates, 2252 White Road, Suite B, Irvine, CA 92614
Surety: SureTec Insurance Company, 2103 City West Blvd., Suite 1300, Houston, TX 77042
Attn: Melissa DeKoven c/o Corporation Service Company, 2710 Gateway Oaks Drive, Suite 150N, Sacramento, CA 95833-3505 (888) 690-2882
Location: 19070 Holly Lane (east side of Holly Lane, between Garfield Avenue and Main 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