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: Bob Milani, 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 HB Walk Project (Tract 19157)
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Statement of Issue:
Olson Urban-Huntington Beach 4, LLC, the Developer of Tract 19157 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 19157, 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. PB30310409024-M (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. PB03010409024, Labor and Material Bond No. PB03010409024, and Monument Bond No. PB03010409039; and,
D) Instruct the City Clerk to notify the developer, Olson Urban-Huntington Beach 4, LLC, of this action, and the City Treasurer to notify the surety company, Philadelphia Indemnity 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 an undue burden and costs upon the City for correcting any defective work, labor and materials furnished by the subdivider.
Analysis:
On May 10, 2022, the Planning Commission approved Tentative Tract Map No. 19157 to subdivide the subject property into an approximately 2.07-acre parcel into a one lot condominium for 34 attached townhomes. Subsequently, on November 23, 2022, the City Council approved Final Tract Map No. 19157, approved execution of the Subdivision Agreement between the City of Huntington Beach and Olson Urban-Huntington Beach 4, LLC, and also accepted the project’s required Faithful Performance Bond, Labor and Material Bond and Monument Bond.
The developer has now completed all required public improvements and is requesting the release of the aforementioned sureties, pursuant to California Government Code Section 66499.7(a). 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 acceptance of these improvements. The improvements along Talbert Avenue and Newland Street frontages include: curb, gutter, sidewalk, pavement as well as public water, sewer, and storm drain facilities.
Pursuant to the project’s conditions of approval, Olson Urban-Huntington Beach 4, LLC has provided Guarantee and Warranty Bond No. PB03010409024-M as a surety for the one-year warranty period and is now requesting acceptance of this bond.
Project data
Developer: The Olson Company
Attention: John Reekstin
3010 Old Ranch Parkway, Suite 100, Seal Beach, CA 90704
Surveyor: Advanced Civil Group, 30251 Golden Lantern, Suite E, PMB 251,
Laguna Niguel, CA 92677
Surety: Philadelphia Indemnity Insurance Company
Location: 8371-8461 Talbert Avenue (northwest corner of Talbert Avenue and Newland Street)
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 (Tract No. 19157)
3. Guarantee and Warranty Bond No. PB03010409024-M
4. PowerPoint Presentation