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: Steve Bogart, Senior Civil Engineer
Subject:
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Approve and accept the public improvements, release the securities for, and accept a Guarantee and Warranty Bond for the Huntington Gateway Phase II Industrial Project
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Statement of Issue:
Huntington Gateway Industrial II, LLC, the owner/developer of the Huntington Gateway Phase II Industrial Project, has completed construction of all required public improvements and 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 improvements constructed and dedicated for public use with the Huntington Gateway Phase II Industrial Project, 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. 800043002 (Attachment 3); the security 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 Clerk to notify the developer, Huntington Gateway Industrial II, LLC, of this action, and the City Treasurer to notify the Surety, Atlantic Specialty Insurance Company, of this action.
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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 materials furnished by the subdivider.
Analysis:
On May 5, 2021, the Director of Community Development conditionally approved Site Plan Review No. 20-001 and Tentative Parcel Map No. 19-153, authorizing the construction of the Huntington Gateway Business Park Phase II project (see Attachment 1 for Location Map), which includes redevelopment of a 49.5 acre portion of former Boeing property to subdivide into five separate parcels and build 1,020,000 square feet of new commercial/industrial warehouse space, outdoor parking, onsite/offsite utility upgrades and construction of a new public street.
On December 21, 2021, the City Council approved execution of the Subdivision Agreement between the City and Huntington Gateway Industrial II, LLC (owner/developer) and also accepted the project’s required bonds as follows: Faithful Performance Bond No. 800043002, Labor and Materials Bond No. 800043002, and Monument Bond No. 800043002-M.
The developer has completed all required public improvements and is now requesting release of the aforementioned securities, pursuant to California Government Code Section 66499.7(a). The constructed public improvements include: the public water and storm drain systems within new public street, curb, gutter, sidewalk, and a new public street, Delta Lane (between Bolsa Avenue and Skylab Road).
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.
Project data
Developer: Sares Regis Group, Attn: Asset Manager
3501 Jamboree Road, Suite 3000, Newport Beach, CA 92660
Engineer: Michael Baker International, 5 Hutton Centre Drive, Suite 500, Santa Ana, CA 92707
Surety: Atlantic Specialty Insurance Company, 605 Highway, 169 North, Suite 800,
Plymouth, MN 55441
Location: 5301 Bolsa Avenue (north side between Bolsa Chica Street and Graham Street, south of Skylab Road)
Public Works Commission Action: Not required.
Environmental Status:
The recommended actions are ministerial acts and are exempt from the requirements of the California Environmental Quality Act, pursuant to State CEQA Guidelines, California Administrative Code, Title 14, Chapter 3, Section 15268(b).
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Location Map
2. Notice of Acceptance of Public Improvements (Huntington Gateway Phase II Industrial Project)
3. Guarantee and Warranty Bond No. 800043002
4. Final Parcel Map No. 2019-153
5. PowerPoint Presentation