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:
title
Approve and Accept the Public Improvements, Release the Securities for, and Accept a Guarantee and Warranty Bond for the Public Improvements in Tract 19136 and Release Guarantee and Warranty Bond for Gisler Park Improvements
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Statement of Issue:
Lennar Homes of California, LLC, the owner/developer of Tract 19136, 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. The developer has also satisfied the required twelve (12) month warranty period for the Gisler Park Improvements and is eligible for the release of the Guarantee and Warranty Bond.
Financial Impact:
No funding is required for this action.
Recommended Action:
recommendation
A) Accept the public improvements constructed and dedicated for public use with Tract 19136, 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 the Public Improvements - Faithful Performance Bond No. US00121915SU22A and Labor and Materials Bond No. US00121915SU22A and Monumentation Bond No. US00121913SU22A; and,
C) Accept Guarantee and Warranty Bond No. US00121915SU22A-M (Attachment 3); the security furnished for guarantee and warranty for public improvements, and instruct the City Clerk to file the bond with the City Treasurer; and,
D) Release Guarantee and Warranty Bond No. US00121914SU22A-M for Gisler Park Improvements; and,
E) Instruct the City Clerk to notify the developer, Lennar Homes of California, LLC, of this action, and the City Treasurer to notify the Surety, XL 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:
1. 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 the subdivider.
Analysis:
On September 28, 2021, the Huntington Beach Planning Commission 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, the City Council approved the execution of the Subdivision Agreement between the City and Lennar Homes of California, LLC (developer) and accepted the project’s surety bonds for the required public improvements as follows: Faithful Performance Bond No. US00121915SU22A and Labor and Materials Bond No. US00121915SU22A and Monumentation Bond No. US00121913SU22A and for the Gisler Park improvements as follows: Faithful Performance Bond No. US00121914SU22A and Labor and Materials Bond No. US00121914SU22A.
The developer first completed the Gisler Park Improvements and requested that the city release the bonds for the Gisler Park Improvements. On May 21, 2024, the City Council formally accepted the Gisler Park Improvements and took in Guarantee and Warranty Bond No. US00121914SU22A-M.
The developer has now completed all the required public improvements and is now requesting release of the securities related to those public improvements. The constructed improvements include curb, gutter, sidewalk and pavement improvements along Strathmoor Lane and Bluefield Drive.
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.
Also, the required twelve (12) month warranty period has concluded for the Gisler Park improvements making their Guarantee and Warranty Bonds eligible for release.
Project Data:
Developer: Lennar Homes of California
2000 Fivepoint, Suite 365, Irvine, CA 92618
Engineer: Fuscoe Engineering
16795 Von Karmen, Suite 100, Irvine, CA 92606
Surety: XL Specialty Insurance Company
505 Eagleview Blvd., Exton, PA 19341
Location: 21141 Strathmoor Lane
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. US00121915SU22A-M
4. Final Tract Map 19136
5. PowerPoint Presentation