HomeMy WebLinkAbout09 - CC-9 - Release of Bonds in Connection with Encr - 9/5/2017CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 5, 2017
ITEM NUMBER: CC -9
SUBJECT: RELEASE OF BONDS IN CONNECTION WITH ENCROACHMENT PERMIT NO.
PS14-00453 AND PS15-00967 FOR STREET IMPROVEMENTS AND CORNER
MONUMENTATION FOR TRACT 17658 LOCATED AT 2023, 2025 AND 2027
PLACENTIA 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. 0671230) in the amounts
of $61,850.00 each for street improvements and (Certificate No. 0671229) for setting corner
monuments in the amount of $1,600.00 to City Ventures Homebuilding, LLC (Developer), 3121
Michelson Drive, Suite 150, Irvine, CA 92612.
BACKGROUND
On February 10, 2014, the City Planning Commission approved Planning Application PA -13-21
and Tentative Tract Map 17658 to construct 30 three-story live/work units and six two-story
residential units on a 1.88 -acre property at 2023, 2025 and 2027 Placentia Avenue. On March 4,
2014, the City Council upheld and approved the Planning Commission's decision to approve the
proposed project. The Engineering Division required the setting of durable monuments at corners
of lot. The Performance Bond in the amount of $1,600.00 was received and accepted by the
Public Services Department as a guarantee for the setting of the monuments. Also, the
Engineering Division issued Encroachment Permits No. PS14-00453 and PS15-00967 for the
construction of street improvements within Placentia Avenue. The Encroachment Permit allowed
for the construction of curb and gutter, sidewalk, drive approaches, storm drain connection, utility
connections and street resurfacing. The Performance and Labor and Materials Bonds in the
amounts of $61,850.00 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 $61,850.00 each, and the bond for
setting corner monuments in the amount of $1,600.00 be released to City Ventures Homebuilding,
LLC.
RAJA SETHURAMAN
Public Services Director
DISTRIBUTION
City Manager
Assistant City Manager
City Attorney
Staff
BALTAZAR M EJ IA
City Engineer
VA