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HomeMy WebLinkAboutCC AG PKT 2008-12-08 #UAGENDA STAFF REPORT DATE: December 8, 2008 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Vince Mastrosimone, Director of Public Works SUBJECT: BOND RELEASE -PACIFIC GATEWAY BUSINESS CENTER, TRACT No. 16375 SUMMARY OF REQUEST: The City Council is asked to adopt Resolution No. 5791 releasing the bond provided by Safeco Insurance Company of America for Faithful Performance Bond No. 6380019 in the amount of $1,202,059.50. BACKGROUND: A subdivision agreement for Tract 16375 was entered into between the City of Seal Beach and Boeing Realty Corporation dated November 14, 2005 which required that certain improvements be installed. The sub-divider 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. 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 manner. At the August 13, 2007 City Council Meeting, Council reduced the $12,020,595.00 Faithful Performance Bond No. 6380019 provided by Safeco Insurance Company of America by 90% to an amount of $1,202,059.50. This guarantees any repair of defective work for the period of one (1) year. The developer submitted a letter dated September 8, 2008 requesting to release the remaining 10% Faithful Performance Bond No. 6380019 in the amount of $1,202,059.50. Agenda Item U Page 2 It has now been over a year and Tract No. 16375 needs no repair of defective work. The City Engineer recommends the Faithful Performance Bond No. 6380019 in the amount of $1,202,059.50 as a warranty bond to provide for repair of defective work for the period of one (1) year from the date of August 13, 2007 for the Pacific Gateway Business Center, Tract No. 16375, City of Seal Beach, California be released. FINANCIAL IMPACT: There is no financial impact. RECOMMENDATION: It is recommended City Council adopt Resolution No. 5791 releasing the bond provided by Safeco insurance Company of America for Faithful Performance Bond No. 6380019 in the amount of $1,202,059.50. SUBMI . Vince astrosimone Director of Public Works Attachments: NOTED AND APPROVED: `~-~~~ David Carmany, City Manager A. Letter of request from Boeing dated September 8, 2008 B. Resolution No. 5791 The Boeing Company 4501 E. Conant Street Long Beach, CA 90808 (562) 497-6154 B®E//VG~ September 8, 2008 Vincent Mastrosimone Public Works Director City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 RE: The Boeing Company Release of Bond Securities Pacific Gateway Business Center Tract No. 16375 Dear Vincent: Pursuant to Resolution Number 5587 which was passed, approved and adopted by the City Council of the City of Seal Beach at a regular meeting held on August 13, 2007, Boeing requests the release of the remaining Faithful Performance Bond No. 6380019 in the amount of $1,202,059.50. This amount was retained by the City as a warranty bond to provide for repair of defective work for the period of one (1) year from the date of Council action, which expired August 13, 2008. If you should have any questions, please feel free to contact me at (562) 497-6150. Sincerely, BOEING REALTY CORPO ION Stephane M. Wandel Enterprise Leader Real Property Dispositions Cc: Walter E. Warden, Boeing Realty Corporation Lance Laven, Boeing Realty Corporation Lee Whittenberg, City of Seal Beach AGENDA REPORT DATE: August 13, 2007 TO: Honorable Mayor and City Council THRU: David N. Carmany, City Manager FROM: Mark K. Vukoj evic, Director of Public Works/City Engineer SUBJECT: REDUCTION/RELEASE OF SECURITY BONDS FOR PACIFIC GATEWAY BUSINESS CENTER, TRACT NO. 16375 SUMMARY OF REQUEST: 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 Boulevazd 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. 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 aze 95% completed in a satisfactory manner. 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 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. Faithfizl Performance 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 rte, ~ning Storm Drain Drainage Improvements. 2. The remaining $12,020,595.00 of Faithful Performance 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 (1) 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 IlVIPACT: No impact. RECONIlV~NDATION: It is recommended that the City Council adopt Resolution No. reducing/releasing security bonds as recommended by the City Engineer. Prepared By: ti David L Spitz Associate Civil Engineer Reviewed By: Sean P. Cmvmby Deputy City Engineer Concur: NOTED AND APPROVED: ~~~ Mark . Vukojevic David N. Carman Director of Public Works/City Engineer City Manager Attachments: Resolution No. authorizing Release/Reduction of Securities ' Schedule A of Improvements for Bond Release/Reduction Agenda Item RESOLUTION NUMBER 5791 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH AUTHORIZING THE RELEASE OF SECURITY BONDS FOR BOEING REALTY CORPORATION, PACIFIC GATEWAY BUSINESS CENTER, TRACT NO. 16375 WHEREAS, Public improvements and other improvements for the Boeing Realty Corporation, Pacific Gateway Business Center Tract No. 16375, City of Seal Beach, State of California have been completed and recommends the reduction in the security bonds posted by Boeing Realty Corporation that guarantees the installation of those public improvements and other improvements. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Seal Beach that the security bonds posted by Boeing Realty Corporation to guarantee the installation of public improvements and other improvements for the Pacific Gateway Business Center Tract No. 16375, in the City of Seal Beach, State of California, be released as follows: SECTION 1. Faithful Performance Bond No. 6380019 in the amount of $1,202,059.50 provided by Safeco Insurance Company of America. PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a meeting hereof held on the 8th day of December , 2008 by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS ATTEST: Mayor City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number 5791 on file in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach, at a regular meeting thereof held on the 8th day of December , 2008. City Clerk