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 and Release the Securities for Tract 15377 (Parkside Estates Subdivision) and Accept the Offers of Dedication
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Statement of Issue:
Shea Homes Limited Partnership, A California Limited Partnership, the subdivider of Tract 15377, has completed all required public improvements and is now eligible to receive a release of securities pursuant to the provisions of the Subdivision Map Act.
Financial Impact:
Not Applicable.
Recommended Action:
recommendation
A) Accept the improvements constructed and dedicated for public use with Tract 15377 and instruct the City Clerk to record the “Notice of Acceptance of Public Improvements” with the Orange County Recorder.
B) Release the Faithful Performance and Labor and Material Bond Nos. 0195156, 0195157, 0195158, 0195159, 0195160, 0195162, 0195163 and Monument Bond No. 0195155 pursuant to the California Government Code Section No. 66499.7(a); and,
C) Accept Guarantee and Warranty Bond Nos. 0195156M, 0195157M, 0195158M, 0195159M, 0195160M, 0195162M, 0195163M; the security furnished for guarantee and warranty of the public improvements, and instruct the City Clerk to file the bond with the City Treasurer; and,
D) Release Guarantee and Warranty Bond No. 0195161M.
E) Instruct the City Clerk to notify Shea Homes, the subdivider of Tract 15377, and the City Treasurer to notify Berkley Insurance Company, of these actions related to the bonds.
F) Accept Offer of Dedication in Fee Title of Lots “A”, “S”, “B” and “X” of Tract 15377 and Instruct the City Clerk to record the Certificate of Acceptance.
G) Accept Offer of Dedication the Easements over Lots “C”, “N”, “O” and “T” of Tract 15377 and Instruct the City Clerk to record the Certificate of Acceptance.
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Alternative Action(s):
Provide staff alternate direction, noting that the City will need to comply with the project Conditions of Approval and the Subdivision Map Act, whereby:
A. Section 66499.7 of the Government Code requires that the securities given for the faithful performance of constructing the public improvements shall be released upon acceptance of the work.
B. Section 66499.9 of the Government Code, requires the Guarantee and Warranty of the work for a period of one year following completion and acceptance of the improvement, against any defective work, labor and materials furnished. Denying the acceptance of the Guarantee and Warranty bond may place undue burden and cost upon the city for correcting any defective work, labor and material provided by the subdivider.
Analysis:
On June 1, 2009, the City Council of the City of Huntington Beach took action and approved Tentative Tract Map No. 15377 and Entitlement Plan Amendment No. 08-08 with Findings and Conditions of Approval to subdivide approximately 45 acres into 111 single-family residential lots and 21 lettered lots consisting of restored and preserved wetlands and buffer area, protected Eucalyptus grove, a Natural Treatment System Water Quality Basin (NTS), a Vegetated Flood Protection Feature (VFPF), a trail system, and dedication and improvements of an approximately 1.0 acre public active park and 0.57 acre passive park.
On December 7, 2015, the City Council approved Final Tract Map No. 15377 and the Subdivision Agreement between the City of Huntington Beach and Shea Homes and accepted the required bonds for the project’s public improvements as follows:
Monument Bond No. 0195155 (Survey Monumentation)
Faithful Performance and Labor/Materials Bond No. 0195156 (Sewer & Water Improvements)
Faithful Performance and Labor/Materials Bond No. 0195157 (Sewer Lift Station)
Faithful Performance and Labor/Materials Bond No. 0195158 (Storm Drain Improvements)
Faithful Performance and Labor/Materials Bond No. 0195159 (Street/Traffic Signal Improvements)
Faithful Performance and Labor/Materials Bond No. 0195160 (C05 Channel Improvements)
Faithful Performance and Labor/Materials Bond No. 0195161 (Slater Pump Station Improvements)
Faithful Performance and Labor/Materials Bond No. 0195162 (Natural Treatment System)
Faithful Performance and Labor/Materials Bond No. 0195163 (Grading and Graham Street Repair)
The Slater Stormwater Pump Station was one of the first public improvements to be completed by Shea Homes and was accepted by the City Council on May 3, 2022, at which time the Faithful Performance and Labor/Materials Bond No. 0195161 was released and Guarantee and Warranty Bond No. 0195161M accepted as security for the one-year warranty period. The subdivider is now requesting release of the above-mentioned Guarantee and Warranty Bond as the warranty period has expired.
Furthermore, the subdivider has completed the remaining public improvements and is requesting release of those securities. The improvements include Sewer and Water Systems, Sewer Lift Station, Storm Drain Improvements, Streets, Lighting and Traffic Signal Improvements, C05 Channel Improvements, Natural Treatment System, and all Grading and Graham Street Repairs. The City Engineer has determined that the public improvements have been constructed in substantial compliance with the approved plans and specifications and now recommends their acceptance. Shea Homes has provided Guarantee and Warranty Bond No. 0195156M, 0195157M, 0195158M, 0195159M, 0195160M, 0195162M, 0195163M as security for the one-year warranty period for these public improvements.
Additionally, as a condition of the Coastal Development Permit (CDP) issued by the California Coastal Commission, Shea Homes irrevocably offered to dedicate the following lots to the City, with the understanding that the offers would be accepted by the City once the improvements are completed:
Lots to be accepted in Fee Title: Lot “A” (Active Park), Lot “B” (Sewer Lift Station), Lot “S” (Passive Park) and Lot “X” (Natural Treatment System).
Lots to be accepted in easement for public access and recreation: Lot “C” (Public Trail/Access Path), Lot “N” (Pedestrian Access/Levee Trail Connector), Lot “O” (Paseo Park/Public Access) and Lot “T” (Open Space/Public Access).
All the improvements related to the above-specified lots have been completed and are ready for acceptance of the Offers of Dedication.
Furthermore, the CDP stipulated that Lot “Y”, the Vegetated Flood Protection Feature (VFPF), be transferred to the County of Orange and be maintained by the Orange County Flood Control District, with the exception that the vegetation covering the VFPF be maintained by the HOA. However, the County later asserted that the vegetation be maintained by the City before agreeing to accept ownership and maintenance of the VFPF. To facilitate this requirement, Shea Homes is working with the City on a pass-through agreement, whereby the City will accept the landscape maintenance responsibility and then delegate it to the Parkside Estates HOA via a separate agreement. The terms of these agreements are currently being negotiated, and they will be presented to City Council at a later date.
PROJECT PROPOSAL
SUBDIVIDER: Shea Homes Limited Partnership, 2 Ada, Suite 200, Irvine, CA, CA 92618
ENGINEER: Hunsaker and Associates, 3 Hughes, Irvine, CA 92618
LOCATION: 17301 Graham Street (west side of Graham Street, south of Warner Avenue, adjacent to the Wintersburg Flood Control Channel)
NO. OF ACRES: 45 acres
NO. OF NUMBERED LOTS: 111
NO. OF LETTERED LOTS: 21
NO. OF UNITS: 111 detached single family residential units
Environmental Status:
This recommended action is a ministerial act and is 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
3. Guarantee and Warranty Bonds
4. Final Tract Map 15377
5. Parkside Estate City and California Coastal Commission Conditions of Approval
6. Certificate of Acceptance in Fee Lots A, S, B, and X
7. Certificate of Acceptance of Easement over Lots C, N, O, and T
8. PowerPoint Presentation