HomeMy WebLinkAboutCC AG PKT 2006-10-23 #J
AGENDA REPORT
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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).
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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:
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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
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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
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Agenda Item
Page 2 of2
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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.
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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.
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Unda Devin.. City Clerk
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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