HomeMy WebLinkAbout10 - CC-10 - Release of Bonds in Connection with Encr - 9/5/2017CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 5, 2017
ITEM NUMBER: CC -1 O
SUBJECT: RELEASE OF BONDS IN CONNECTION WITH ENCROACHMENT PERMIT NO.
PS15-00518 FOR STREET IMPROVEMENTS AND CORNER MONUMENTATION
FOR TRACT 17848 LOCATED AT 650 HAMILTON STREET, COSTA MESA,
CALIFORNIA.
DATE: AUGUST 24, 2017
FROM: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION
PRESENTATION BY: RAJA SETHURAMAN , PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION CONTACT: BALTAZAR MEJIA, CITY ENGINEER
(714)754-5335
RECOMMENDED ACTION
Release the Performance and Labor and Material Bonds (Certificate No. 0193322) in the amounts
of $178,080.00 each for street improvements and (Certificate No. 0193323) for setting corner
monuments in the amount of $2,500.00 to Shea Homes, LP (Developer), 1250 Corona Pointe
Court Suite 600, Corona, CA 92879.
BACKGROUND
On April 27, 2015, the City Planning Commission approved Planning Application PA -15-04 and
Vesting Tentative Tract Map 17848 to construct a 24 -unit, two-story, residential common interest
development on a 2 -acre property at 650 Hamilton Street. The Final Tract Map 17848 was
approved by the City Council to authorize the City Engineer and City Clerk to sign the map.
The Engineering Division required the setting of durable monuments at corners of lot. The
Performance Bond in the amount of $2,500.00 was received and accepted by the Public Services
Department as a guarantee for the setting of the monuments. Also, the Engineering Division
issued Encroachment Permit No. PS15-00518 for the construction of street improvements within
Hamilton Street. The Encroachment Permit allowed for the construction of curb and gutter,
sidewalk, drive approach, 36 -inch city storm drain line along Hamilton Street, private storm drain
connection, utility connections and street resurfacing. The Performance and Labor and Materials
Bonds in the amounts of $178,080 each were received and accepted by the Public Services
Department as a guarantee for the construction of the improvements.
ANALYSIS
Section 15-32(c) of the City of Costa Mesa Municipal Code requires any applicant performing any
work of repairs within any street to deposit with the City Engineer an amount estimated to be
equal to twice the actual costs of all necessary engineering and inspection costs. The payment
of said deposit was secured through a surety bond posted by the Developer. All conditions of the
Encroachment Permit have been met and the work has been completed and accepted by the
Public Services Department.
ALTERNATIVES CONSIDERED
The alternative to this Council action would be to retain the Performance and Labor and Material
Bonds. Costa Mesa Municipal Code Section 15-32 states, "The condition of said bond shall be
that the applicant will perform the work authorized by any permit issued pursuant to this chapter
in a good and workmanlike manner and to the satisfaction of the City Engineer." These conditions
have been met; therefore, retention of the bonds would be in violation of the Municipal Code.
FISCAL REVIEW
There is no fiscal impact to the City relative to this item.
LEGAL REVIEW
There is no legal review required relative to this item.
CONCLUSION
All of the required conditions of the Encroachment Permit have been completed by the contractor,
and all of the monuments have been set by the Engineer. Therefore, staff recommends that the
Performance and Labor and Material Bonds in the amounts of $178,080.00 each, and the bond
for setting corner monuments in the amount of $2,500.00 be released to Shea Homes, LP.
RAJA SETHURAMAN
Public Services Director
DISTRIBUTION
City Manager
Assistant City Manager
City Attorney
Staff
BALTAZAR M EJ IA
City Engineer
VA