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HomeMy WebLinkAboutCC AG PKT 2007-08-13 #G AGENDA REPORT e DATE: August 13, 2007 TO: Honorable Mayor and City Council TIIRU: DavidN. Carmany, City Manager FROM: Mark K.. Vukojevic, Director of Public Works/City Engineer SUBJECT: REDUCTIONIRELEASE OF SECURITY BONDS FOR PACIFIC GATEWAY BUSINESS CENTER, TRACT NO. 16375 SUMMARY OF REQUEST: e The proposed City Council action will adopt the attached Resolution reducing the security bonds posted by the Boeing Reality Corporation to guarantee the installation of public improvements and other improvements for the Pacific Gateway Business Center, Tract No. 16375, which is located on the westerly side of Seal Beach Boulevard south of Westminster Avenue. The majority of the public improvements and other improvements required to be installed have been completed in a satisfactory manner and were 95% accepted at the May 14, 2007 City Council Meeting. It is appropriate that the Performance Bond and the Labor and Materials Bond be reduced at this time. BACKGROUND: A subdivision agreement for Tract 16375 was entered into between the City of Seal Beach and Boeing Reality Corporation dated November 14, 2005 which required that certain improvements be installed. The subdivider posted a Faithful Performance Bond and Labor and Materials Bond with the City to guarantee the installation of required improvements, a one year warranty of those improvements and the setting of survey monuments. e On May 14, 2007 the City Engineer provided a "City of Seal Beach City Engineer Certification of Completion of Subdivision Public Improvements related to Boeing Realty Corporation, Pacific Gateway Business Center Tract No. 16375" certifying public improvements related to Boeing Realty Corporation, Pacific Gateway Business Center Tract No. 16375, have been fully completed or are 95% completed in a satisfactory maimer. The developer has now requested the release of remaining securities as outlined in the attached Schedule A of Improvements since he has fulfilled terms of the agreement for installation of required improvements. AGENDA ITEM a. e The City Engineer recommends that the following bonds posted by Boeing Reality Corporation to guarantee the installation of public improvements and other improvements for the Pacific Gateway Business Center, Tract No. 16375, City of Seal Beach, California be released/reduced as follows: 1. Faithful Perfonnance Bond No. 6380019 in the amount of$12,170,595.00 provided by Safeco Insurance Company of America to remain in the amount of $150,000.00 for remaining Storm Drain Drainage Improvements. 2. The I'f'TT1Ain;ng $12,020,595.00 of Faithful Perfonnance Bond No. 6380019 provided by Safeco Insurance Company of America not retained for Storm Drain Drainage Improvements be reduced by 90% to an amount of $1,202,059.50 as a warranty bond to provide for repair of defective work for the period of one (I) year from the date of this council action. 3. Labor and Materials Bond No. 6380019 in the amount of $12,170,595.00 provided by Safeco Insurance Company of America be released. FISCAL IMPACT: No impact. e RECOMMENDATION: It is recommended that the City Council adopt Resolution No. _ reducinjifreleasing security bonds as recommended by the City Engineer. Prepared By: _" )&.~> .? Associate Civil Engineer Reviewed By: - Sean P. Crumby Deputy City Engineer Concur: NOTED AND APPROVED: ~~c Director of Public Works/City Engineer - e.p - David N. carman! City Manager A'tta\:hments: Resolution No. authorizing ReleaselReduction of Securities Schedule A of Improvements for Bond ReleaselReduction e Agenda Item e RESOLUTION NUMBER A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING THE RELEASElREDUcnON OF SECURITY BONDS FOR BOEING REALITY CORPORATION, PACIFIC GATEWAY BUSINESS CENTER, TRACT NO. 1637S WHEREAS, Public improvements and other improvements for the Boeing Reality C"'l'O'"Iion, Pacific Gateway Business Center Tract No. 16375, City of Seal Beach, Stale of California ~ave been completed and n:commenda the reduction in the .ecurity bonda po.ted by Boeing Reality CO'1'ol1ltion that gulll1lJltees the installation of t~o.e public improvements and other improvements. NOW, THEREFORE, BE IT RESOLVED by t~e City Council of the City of Seal Beach thal the .ecurity bonda po.ted by Boeing RealIty Corporalion to guarantee the installalion of public improvements and other improvements for t~e Pacific Oateway Bu.ine.. Center Tract No. 16375, in the City of Se.1 Beach, State of California, be "'I....d/reduced a5 follows: 1. Faithful Performance Bond No. 6380019 in the amount of $12,170,595.00 provided by Sofeco In.unmce Company of America to remain in the amount of $150,000.00 for ",maining Storm Drain Drainage Improvements. 2. The remaining $12,020,595.00 of Faithful Performance Bond No. 6380019 provided by Safeco In.unmce Company of America not ",tained for Stonn Drain Drainage Improvements be reduced by 9O'll> to an amount of $1,202,059.50 as a walT&llty bond to provide for n:pair of defective work for the period of one (I) year from the date of this council action. . e 3. Labor and Material. Bond No. 6380019 in the amount of $12,170,595.00 provided by Safeco Insunmce Company of America be ",leased. PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, st a meeung hereof held on the 13th day of Au....t .2007 by the following vote: AYES: COUNClLMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNClLMEMBERS Mayor A TrEST: City Clerk STATEOFCALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH I I, Linda Devine, City Clerk for the City of Seal Beac~, California, do hereby certify that the foregoing ",solution. i. t~e original copy of Reoolution Number_ on file in the office of the City Clerk, passed, approved and adopted by the City Council of the City of Seal Beac~ al a "'gular meeting ~ereof ~eld on the 13th day of Au....t .2007. e City Clerk e [X] FINAL TRACT MAP NO. 16375 SCHEDULE A PLAN TITLE SHmITll Storm Drain 1-11 Streets 1-30 Sanitary Sewer 1-8 Water Plan 1-9 Signing & S1riping 1-6 Traffic Signals 7-11 Landscape & Irrigation Ll - L63 Mise: Grading Plans Rough & Precise Seal Beach Blvd. Flood Mitigation Plans (Conceptual) AMOUNT OF AMOUNT OF AMOUNT OF CATEGORIES OF ESTIMATED PERFORMANCE PAYMENT IMPROVEMENTS TOTAL COST SIlCURlTY SECURITY [ X] STREET IMPROVEMENTS' S 2,500,000 $ 2,500,000 S 2,500,000 [X]~~OFSTIUrnTDAMAGE S 200,000 S 200,000 S 200,000 [X] SEWER IMPROVEMENTS $ 1,200,000 $ 1,200,000 $ 1,200,000 e [Xl STORM DRAIN DRAINAGE $ 1,500,000 $ 1,500,000 S 1,500,000 IMPROVEMENTS [X] WATER SYSTEM $ 1,150,000 $ 1,150,000 S 1,150,000 [X] SEAL BEACH BLVD. DRAINAGE $ 1,000,000 $ 1,000,000 S 1,000,000 IMPROVEMENTS [X] LAND.SCAPING, PLANTING & $ 1,945,258 $ 1,945,258 $ 1,945,258 IRRIGATION [X ] TRAFFIC ENGINEERING $ 700,000 $ 700,000 $ 700,000 (SIGNALS) SUBTOTAL FOR THIS CATEGORY S 10,195,258 $ 10,195,258 $ 10,195,258 [X] GRADING $ 1,345,785 $ 1,345,785 $ 1,345,785 [ Xl MONUMBNTATION $ 50,000 50,000 S 50,000 TOTAL CONSTRUCTION 11,591,043 INSPECTIONS AT 5% 579,552 TOTAL 11,170,595 TOTAL PERFOR.,,\1ANCE SECURITY: $ 12,170,595 TOTAL PAYMENT SECURITY: $ 12,170,595 e 832017.13