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HomeMy WebLinkAboutCC AG PKT 2006-10-23 #J AGENDA REPORT e DATE: October 23, 2006 TO: Honorable Mayor and City Council 1HRU: John B. Bahorski, City Manager FROM: Mark K. Vukojevic, Director of Public Works/City Engineer SUBJECT: REDUCING SECURITY BONDS FOR WL HOMES, LLC, HELLMAN RANCH TRACT NO. 15402 SUMMARY OF REQUEST: The proposed City Council Action will adopt the attached Resolution reducing the security bonds posted by WL Homes, u.c to guarantee the installation of public improvements and other improvements for the Hellman Ranch Tract No. 15402, which is located on the westerly side of Seal Beach Boulevard at Heron Pointe (Forrestal Lane). e A portion of the public improvements and other improvements required to be installed have been completed in a satisfactory manner, and therefore it is appropriate that the Performance Bond and the Labor and Materials Bond be reduced an equivalent amount. BACKGROUND: A subdivision agreement for Tract 15402 was entered into between the City of Seal Beach and WL Homes, u.c dated February 11, 2002 which required that certain improvemeRts be installed. The subdivider posted a Faithful Performance Bond, Labor and Materials Bond, Monument Bond, and Warranty Bond with the City to guarantee the installation of required improvements, a one year warrantee of those improvements and the setting of survey monuments. The .City Engineer has provided the attached "City of Seal Beach Certification and Recommendation for Reduction of Security Bonds Which Guarantee the Installation of Subdivision Public Improvements and Other Improvements for WL Homes, u.c, Hellman Ranch Tract No. 15402" certifying that fifty percent (50%) of the public improvements and other improvements related to WL Homes u.c, Hellman Ranch Tract No. 15402, have been completed in a satisfactory manner and recommends that the following bonds posted by WL Homes, u.c to guarantee the installation of public improvements and other improVements for the Hellman Tract No. 15402, City of Seal Beach, California be reduced as follows: e 1. Faithful Performance Bond No. 22012 in the amount of $3,995,000.00 provided by Rohm Insurance Agency be reduced to $1,997,500.00. Page 1 of 2 AGENDA ITEM ::r e e e 2. Labor and Materials Bond No. 22012 in the amount of $3,995,000.00 provided by Rohm Insurance Agency be reduced to $1,997,500.00. The City Engineer additionally recommends that the following bonds posted by WL Homes, LLC provide fot repair of defective work and the installation of survey monuments for the Hellman Tract No. 15402, City of Seal Beach, California, shall remain in full effect as follows: 1. Warranty Bond No. 22013 in the full original amount of$998,750.00 provided by Rohm Insurance Agency to remain in full effect. 2. Monument Bond No. 22012 in the full original amount of$27,OOO.00 provided by Rohm ~urance Agency to remain in full effect. FISCAL IMPACT: No impact. RECOMMENDATION: Upon motion of the consent calendar, it is recommended that the City Council adopt the attached resolution reducing security bonds as recommended by the City Engineer. Prepared By: Sean P. Crumby, P.E. Deputy City Engineer Concur: ?l/JtJ.4 Mark K. Vukojevic, P.E. Director of Public Works/City Engineer -... Agenda Item Page 2 of2 e RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING THE REDUCTION OF SECURITY BONDS FOR WL HOMES, LLC, HELLMAN RANCH TRACl' NO. 15402. WHEREAS, the City Engineer has provided certification to the City Council of the City of Seal Beach thet a portion of the puhlic improvements and other improvements for the WL Hom.., LLC, HeUman Ranch Tract No. 15402, City ofScal Beach, State of Califomia have been completed and recommcrnls the reduction in the security bonds posted by WL Homes, LLC thot guarantees the installation of those public improvements and other improvements. e NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Seal Beach that the security bonds posted by WL Homes, ILC to guarantee tbc installation of public improvements and other improvements for the Hellman Ranch Tract No. 15402, in the City of Seal Beach, State ofColifornia, be reduced as follows: 1. .Faithful Pcrfonnance Bond No. 422012 in the amount of 53,995,000.00 provided by Romn Insunmce Agency be reduced to 51,997,500.00. 2. Labor and Materials Bond No. 422012 in the amount of 53,995,000.00 provided by Rolun Insurance Agency be reduced to 51,997,500.00. BE IT FURTHER RESOLVED by the City Council of the City of Seal Beach that the following bonds posted by WL Hom.., LLC to provide for repair of defective work and the installation of survey monuments for the Hellman Ranch Tract No. 15402, in the City of Scol Beach, Slate of California, shall remain in full effect as follows: I. Warranty Bond No. 422013 in the full original amount of$998,750.00 provided by Rolun Insurance Agency to remain in full effect. 2. Monument Bond No. 422012 in the full originol amount of 527,000.00 provided by Rolun Insurance Agency to remain in full effect. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach ot a meeting thereof hcJd on the dey of 2006. AYES: Councilmembenl NOES: Councilmembel1 ABSENT: Councilmembcrs ABSTAIN: Councilmcmbers John Larson, Mayor AlTEST: Linda Devine, City Clerk STATE OF CAUFORNIA ) COUNTY OF ORANGE ) SS CITY OF SEAL BEACH ) I, Linde Devine, City Clerk of the City of Seol Beacb, Colifomia, do hereby certify that the foregoing resolution is an original copy of Resolution Number on file in the Officc of the City Clerk, passed, approved and cdopted by the City Council of the City of Seal Beach at a meeting thcreofhcJd on the deyof .2006. e Unda Devin.. City Clerk e e e CITY OF SEAL BEACH CITY ENGINEER CERTIFICATION AND RECOMMENDATION FOR REDUCTION OF SECURITY BONDS WHICH GUARANTEE INSTALLATION OF SUBDIVISION PUBLIC IMPROVEMENTS AND OTHER IMPROVEMENTS FOR WL HOMES, LLC, HELLMAN RANCH TRACT NO. 15402 I, Mark K. Vukojevic, City Engineer for the City of Seal Beach, do herby certify that fifty percent (50%) of the subdivision public improvements and other improvements related to WL Homes, LLC, Hellman Ranch Tract No. 15402, City of Seal Beach, State of California, which tract is located on the westerly side of Seal Beach Boulevard at Heron Pointe (Forresta1 Lane), have been completed in a satisfactory manor. I therefore recommend that the security bonds posted by WL Homes, LLC to guarantee insta1lation of public improvements and other improvements for the HeUman Ranch Tract No. 15402 in the City of Seal Beach, State of California, be reduced as follows: 1. Faithful Performance Bond No. 422012 in the amount of $3,995,000.00 provided by Rohm Insurance Agency be reduced to $1,997,500.00. 2. Labor and Materials Bond No. 422012 in the amount of $3,995,000.00 provided by Rohm Insurance Agency be reduced to $1,997,500.00. I additionally recommend that the following bonds posted by WL Homes, LLC to provide for repair of defective work and the installation of survey monuments for the Hellman Ranch Tract No. 15402 in the City of Seal Beach, State of California, shall remain in full effect as follows: 1. Warranty Bond No. 22013 in the full original amount of $998,750.00 provided by Rohm Insurance Agency to remain in full effect. 2. Monument Bond No. 22012 in the full original amount of$27,000.00 provided by Rohm Insurance Agency to remain in full effect. CERTIFIED this day of ,2006 Signed: Mark K. Vukojevic, City Engineer City of Seal Beach