REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, Acting City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Steve Bogart, Senior Civil Engineer
Subject:
title
Approve and Accept the Public Improvements, Release the Sureties for, and Accept a Guarantee and Warranty Bond for the LeBard Residential Project (Tract 17801)
body
Statement of Issue:
HB Homes Management, LLC, the Developer of Tract 17801 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 Tract 17801, 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. 36K003143 (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) Instruct the City Treasurer to release the Faithful Performance Bond No. 379919S, Labor and Material Bond No. 379919S, and Monument Bond No. 379922S, pursuant to California Government Code Section No. 6649.7(a); and,
D) Instruct the City Clerk to notify the developer, HB Homes Management, LLC, of this action, and the City Treasurer to notify the surety company, Indemnity Company of California, of this action.
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Alternative Action(s):
Do not approve the recommended actions, and direct staff accordingly.
Not approving 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 June 10, 2015, the Planning Commission approved Tentative Tract Map No. 17801 to subdivide the former LeBard School site into an approximately 6.6-acre parcel for public park purposes, a 3.5-acre parcel into 15 numbered lots for single-family residential purposes, and three additional lettered lots for drainage and landscaping purposes. The Planning Commission also approved Mitigated Negative Declaration No. 12-008, General Plan Amendment No. 12-002, Zoning Map Amendment No. 12-001, Variance No. 15-001, and Conditional Use Permit No. 12-039 (for construction of the 15-lot subdivision on the former public school site) as part of the proposed project. Subsequently, on June 3, 2019, the City Council approved Final Tract Map No. 17801, approved execution of the Subdivision Agreement between the City of Huntington Beach and HB Homes Management, LLC, and also 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 aforementioned sureties, pursuant to California Government Code Section 66499.7(a). The constructed public improvements include curb, gutter, sidewalk, pavement of the new public street, Lightbreeze Circle, and public water and sewer mains within the new public 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 acceptance of these improvements.
Pursuant to the project’s conditions of approval, HB Homes Management, LLC has provided Guarantee and Warranty Bond No. 36K003143 as a surety for the one-year warranty period and is now requesting acceptance of this bond.
Project Data
Developer: HB Homes Management, LLC
Attention: David Nguyen
9140 Trask Avenue, #202, Garden Grove, CA 92844
Engineer: ND Engineering, Inc., 9392 Meridian Lane, Garden Grove, CA 92841
Surety: Indemnity Company of California, PO Box 19725, Irvine, CA 92623
Phone: 800-888-2738
Location: 20461 Craimer Lane (west side of Craimer Lane, between Crailet Drive and Warwick Drive)
Public Works Commission Action: Not required.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Location Map
2. Notice of Acceptance of Public Improvements (Tract No. 17801)
3. Guarantee and Warranty Bond No. 36K003143
4. PowerPoint Presentation