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 Cameron Townhomes Project (Tract 19154)
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Statement of Issue:
Shea Homes Limited Partnership, the Developer of Tract 19154, 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 Tract 19154, 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. CMS0349976M (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 Treasurer to release the Faithful Performance Bond No. CMS0349976, Labor and Materials Bond No. CMS0349976 and Monument Bond No. CMA0349977, pursuant to the California Government Code Section No. 6649.7(a); and,
D) Instruct the City Clerk to notify the developer, Shea Homes Limited Partnership, of this action, and the City Treasurer to notify the Surety, RIL Insurance Company, of this action.
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Alternative Action(s):
Do not approve the recommended actions and direct staff accordingly.
To note, 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 October 12, 2021, the Planning Commission approved Tentative Tract Map No. 19154 to subdivide approximately 0.91 acres into 1 numbered lot for condominium purposes. The Planning Commission also approved Conditional Use Permit No. 21-006, for construction of 18 residential townhomes, as part of the proposed project. Subsequently, on June 7, 2022, the City Council approved Final Tract Map No. 19154, approved execution of the Subdivision Agreement between the City of Huntington Beach and S.G.V. Property Fund, LLC, and also accepted the project’s required Faithful Performance Bond, Labor and Material Bond, and Monument Bond.
In conformance with the project’s Conditions of Approval and Code Requirements, the original project developer, S.G.V. Property Fund, LLC, had submitted project plans to the City and obtained grading and building plan approvals. However, during the latter part of this process, the project was sold to a new developer, Shea Homes Limited Partnership. Prior to issuance of the project’s grading and building permits, the City required a replacement Subdivision Agreement to be executed with Shea Homes and new bonds to be submitted to ensure satisfactory completion of the project’s required public improvements. Accordingly, Shea Homes Limited Partnership submitted a replacement Subdivision Agreement and bonds (Faithful Performance Bond/Labor and Material Bond No. CMS0349976, and Monument Bond No. CMS0349977), which were executed and accepted by City Council on September 6, 2022.
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 curb, gutter, sidewalk and pavement along the project’s Cameron Lane frontage and connections to the public water and sewer main within the public street frontage. 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, Shea Homes Limited Partnership has provided Guarantee and Warranty Bond No. CMS0349976M as security for the one-year warranty period and is now requesting acceptance of this bond.
Project data
Developer: Shea Homes Limited Partnership, a California limited partnership
Attention: Cory Yoder, Community Development Manager
2 Ada, Irvine, CA 92618
Engineer: Land Development Consultants, 1520 Brookhollow Dr., Suite 33, Santa Ana, CA 92705
Surety: RLI Insurance Company, 9025 N. Lindberg Drive, Peoria, IL 61615
Phone: 800-645-2402
Location: 17532 Cameron Lane (east side between Slater Avenue and Newman Avenue)
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. 19154)
3. Guarantee and Warranty Bond No. CMS0349976M
4. Final Tract Map No. 19154
5. PowerPoint Presentation