17-1107_COVE ESTATES, LLC_Agenda Report E11TO:
FROM:
City of San Juan Capistrano
Agenda Report
Honorable Mayor and Members of the City Council
%njamin Siegel, City Manager
SUBMITTED BY : Steve May, Public Works and Utilities Director ,LfUL_
PREPARED BY: Joe Parco, City Engineer
Joe Mankawich, Associate Engineer
DATE: November 7, 2017
11/7/2017
E11
SUBJECT: Consideration of a Resolution for a Notice of Completion,
Acceptance of Certain Work of Improvements, and Release of
Corresponding Sureties Pertaining to the Subdivision Improvement
Agreement Tract No. 16168 (Cove Estates LLC)
RECOMMENDATION :
1. Adopt a resolution accepting the work of improvements pertaining to Tract No.
16168 (Cove Estates LLC); and,
2. Direct the City Clerk to process the recording of the Notice of Completion with the
Orange County Clerk/Recorder; and,
3. Authorize the City Clerk to release the corresponding bonds 35 days after the
recordation of the Notice of Completion .
EXECUTIVE SUMMARY:
Cove Estates LLC, developer of Tract No . 16168, has requested that the City release
the onsite improvement bonds held by the City. The project area is located south of Via
Positiva and east of Alipaz Street, and is shown on Attachment 1. The improvements
have been inspected and have been found to be completed per City standards and to
the satisfaction of the Public Works & Utilities Director. Therefore, staff is
recommending adoption of a Resolution (Attachment 2) accepting the work as
complete, the filing of a Notice of Completion (Attachment 3) and the release of the
corresponding bonds in the amount of $144,523.50.
City Council Agenda Report
November 7, 2017
Page 2 of 3
DISCUSSION/ANALYSIS:
In October 2013, Cove Estates LLC ("Owner"), through sale of the property, became the
successor to the former owner, First American Title Company, for the 4-lot, 1-acre
Village Alipaz Project. The water, sewer, street, storm drain, monumentation, and
landscape improvements associated with Tract No. 16168 were completed in March
2016.
The Developer has completed the improvement work as required by the Conditions of
Approval and the Grading Surety Agreements. The improvements have been inspected
and have been found to be completed per City standards and to the satisfaction of the
Public Works & Utilities Director. Staff recommends adoption of a Resolution accepting
the work as complete and the recordation of a Notice of Completion for the project.
With the completion of the improvements as noted in the summary above, the bonds by
International Fidelity Insurance Company are as follows:
Bond Number Type of Improvement Bond Amount
0611240 On-site Street, Water, Sewer,
Storm Drain, and Monumentation $113,188.00
0611239
FISCAL IMPACT :
Landscape and Irrigation
Total Bond Amount
$ 33,335.50
$144,523.50
There would be no fiscal impact associated with the recommended actions .
ENVIRONMENTAL IMPACT:
The recommended action of adopting a resolution accepting the work of improvements
pertaining to Tract No. 16168 is not subject to CEQA pursuant to Section 15060(c)(3) of
CEQA Guidelines because the action is not a project as defined in Section 15378 of the
CEQA Guidelines, and the action has no potential for resulting in physical change to the
environment, directly or indirectly.
PRIOR CITY COUNCIL REVIEW:
• On October 1, 2013, the City Council approved a termination and exoneration of the
original Subdivision Improvement Agreement and approved a new Subdivision
Improvement Agreement with Cove Estates LLC, associated with a change of
property ownership.
City Council Agenda Report
November 7, 2017
Page 3 of 3
• On February 15, 2011, the City Council approved the Final Map and the Subdivision
Improvement Agreement for Tract No. 16168 that was submitted by First American
Title Company, which took title of the property from Village Ali paz LLC.
• On November 1, 2005, the City Council adopted Resolution No. 05-11-01-04
conditionally approving Vesting Tentative Tract Map 16168 for Village Alipaz LLC
consisting of four residential lots on one acre of land.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDAT IONS :
This item does not require commission, committee, or board review .
NOTIFICATION:
Cove Estates LLC
ATTACHMENTS:
Attachment 1 : Location Map
Attachment 2: Proposed Resolution
Attachment 3: Notice of Completion
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Attachment 1. Paae 1 of 1
RESOLUTION NO. 17-11-07 -XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, DETERMINING COMPLETION OF WORK
IN ACCORDANCE WITH APPROVED PLANS AND SPECIFICATIONS
FOR THE CONSTRUCTION OF ON-SITE AND OFF-SITE
IMPROVEMENTS ASSOCIATED WITH TRACT NO. 16168, COVE
ESTATES (COVE ESTATES LLC)
WHEREAS, on October 1, 2013, the City of San Juan Capistrano entered into a
Subdivision Improvement Agreement with the developer of the Cove Estates
Residential Development (Tract No. 16168) providing for the construction of certain
onsite improvements; and,
WHEREAS, Cove Estates LLC, the current developer of Tract 16168 has
requested that the City determine that such certain on-site improvements are completed
and the corresponding remaining surety bonds be released accordingly. The surety
release is as follows:
SURETY COVERAGE
(International Fidelity Insurance Company)
Bond Number Type of Improvement Bond Amount
0611240 On-site Street, Water, Sewer,
Storm Drain, and Monumentation $113,188.00
0611239 Landscape and Irrigation $ 33 ,335.50
Total Bond Amount $144,523.50
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San
Juan Capistrano as follows:
SECTION 1. That the improvement work required to be performed by said developer
has been completed and approved.
SECTION 2. That the completed work with a value of $144,523.50 is accepted.
SECTION 3. That the sureties described in the chart above may be released
accordingly.
PASSED, APPROVED, AND ADOPTED this 7th day of November, 2017.
Kerry K. Ferguson, Mayor
ATTEST:
Maria Morris, City Clerk
Attachment 2, Page 1 of 1
RECORDED AT REQUEST OF AND
RETURN TO:
City of San Juan Capistrano
City Clerk's Office
32400 Paseo Adelanto
San Juan Capistrano, CA 92657
RECORDING FEES EXEMPT DUE TO
GOVERNMENT CODE SECTION 6103
Maria Morris, City Clerk
San Juan Capistrano, CA
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on October 1, 2013, Subdivision Improvement Agreement was
entered in to by the City of San Juan Capistrano and Cove Estates, LLC for the construction of
on-site improvements relating to the development of Tract No. 16168, Cove Estates, in San
Juan Capistrano.
That said work was completed on March 2, 2016, by said company according to plans and
specifications and to the satisfaction of the City Engineer of the City of San Juan Capistrano,
and that said work was accepted by the City Council of the City of San Juan Capistrano, as the
owner, 32400 Paseo Adelanto, San Juan Capistrano, California 92675, at a regular meeting
thereof held on the 7th day of November, 2017 by Resolution No. 17-11-07-xx.
That upon said contract, International Fidelity Insurance Company was surety for the bonds
given by the said company as required by law.
Dated at San Juan Capistrano, California, this 7th day of November 2017.
Maria Morris, City Clerk
City of San Juan Capistrano
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARIA MORRIS, the duly appointed and qualified City Clerk of the City Council of the
City of San Juan Capistrano, California, DO HEREBY CERTIFY, under penalty of perjury that
1) I have read the foregoing document and know the contents thereof, and the facts therein
state are true of my own knowledge; 2) I declare the forgoing is true and correct; and 3) the
foregoing Notice of Completion was duly and regularly ordered to be recorded in the Office of
the Orange County Recorder by said City Clerk.
Dated at San Juan Capistrano, California, this 7th day of November 2017 .
Maria Morris, City Clerk
City of San Juan Capistrano
Attachment 3, Page 1 of 1