REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Jacob Aube, Senior Civil Engineer
Subject:
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Approve and Accept the Public Improvements, Release the Securities, and Accept a Guarantee and Warranty Bond for Gisler Park
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Statement of Issue:
Lennar Homes of California, the developer of Tract 19136, has completed their required public improvements of adjacent Gisler Park which were a condition of approval for Tract 19136. Lennar Homes of California is now eligible to receive a release of securities 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 public improvements constructed in Gisler Park, and instruct the City Clerk to record the Notice of Acceptance of Public Improvements (Attachment 2) with the Orange County Recorder; and
B) Release the securities for Gisler Park - Faithful Performance Bond No. US00121914SU22A and Labor and Materials Bond No. US00121914SU22A; and
C) Accept Guarantee and Warranty Bond No. US00121914SU22A-M (Attachment 3), the security furnished for guarantee and warranty of public improvements in Gisler Park, and instruct the City Clerk to file the bond with the City Treasurer; and
D) Instruct the City Clerk to notify the developer, Lennar Homes of California, and the City Treasurer to notify the Surety, XL Specialty Insurance Company, of these actions; and
E) Instruct the City Treasurer to notify the City Clerk when the securities mentioned above have been released and the guarantee and warranty bond mentioned above has been accepted.
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Alternative Action(s):
Deny the recommended actions. 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 material provided by Lennar Homes of California.
Analysis:
On September 28, 2021, the Huntington Beach Planning Commission conditionally approved Conditional Use Permit No. 20-024 and Tentative Tract Map No. 19136, authorizing the construction of Tract 19136. One of the conditions of approval was improvements to adjacent Gisler Park, including a new walkway, playground, landscaping, and irrigation.
On December 20, 2022, City Council approved execution of the Subdivision Agreement between the City and Lennar Homes of California (developer) and also accepted the project’s required surety bonds for Gisler Park improvements as follows: Faithful Performance Bond No. US00121914SU22A and Labor and Materials Bond No. US00121914SU22A.
Public improvements for Tract 19136 and Gisler Park are bonded separately. This request is only for release of the Gisler Park bonds. Bonds for Tract 19136 will remain in place.
The City Engineer has determined that the public improvements for Gisler Park have been constructed in substantial compliance with the approved plans and specifications and recommends acceptance of these improvements.
Project Data:
Developer: Lennar Homes of California, LLC
2000 Fivepoint, 3rd Floor, Irvine, CA 92618
Engineer: Fuscoe Engineering, Inc.
15535 Sand Canyon Avenue, Suite 100, Irvine, CA 92618
Surveyor: Fuscoe Engineering, Inc.
15535 Sand Canyon Avenue, Suite 100, Irvine, CA 92618
Surety: XL Specialty Insurance Company
1209 North Orange Street, Wilmington, Delaware 19801
Location: 21215 Strathmoor Lane, Huntington Beach, CA 92646
Environmental Status:
This action is covered by the General Rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment (Section 15061.b.3 of the State CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment. Therefore, this activity is not subject to CEQA.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Location Map
2. Notice of Acceptance of Public Improvements
3. Guarantee and Warranty Bond No. US00121914SU22A-M
4. PowerPoint Presentation