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