HomeMy WebLinkAbout11 - CC-11 - Release of Bonds in Connection with Encr - 9/5/2017CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 5, 2017
ITEM NUMBER: CC -1 1
SUBJECT: RELEASE OF BONDS IN CONNECTION WITH ENCROACHMENT PERMIT NO.
PS15-00056 FOR STREET IMPROVEMENTS AND CORNER MONUMENTATION
FOR TRACT 17771 LOCATED AT 789 AND 795 PAULARINO AVENUE, 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. CMS280455) in the
amounts of $107,956.00 each for street improvements and (Certificate No. CMS280456) for
setting corner monuments in the amount of $7,500.00 to Shea Homes, LP (Developer), 2 Ada
Suite 200, Irvine, CA 92618.
BACKGROUND
On September 8, 2014, the City Planning Commission approved Planning Application PA -14-10
and Vesting Tentative Tract Map 17771 to construct 19 two-story single family residential units
on a 1.72 -acre property at 789 and 795 Paularino Avenue. The Engineering Division required the
setting of durable monuments at corners of lot. The Performance Bond in the amount of
$17,500.00 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-
00056 for the construction of street improvements within Paularino Avenue and Randolph
Avenue. The Encroachment Permit allowed for the construction of curb and gutter, sidewalk,
drive approaches, storm drain connection, utility connections and street resurfacing. The permit
also included the widening and resurfacing of Randolph Avenue to ultimate width per City
Standards. The Performance and Labor and Materials Bonds in the amounts of $107,956.00
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 or repairs within any street to deposit with the City Engineer an amount estimated to
be equal to twice the actual cost 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 $107,956.00 each, and the bond
for setting corner monuments in the amount of $7,500.00 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