17-0710_TAYLOR MORRISON_Staff Memo Warranty Bonds ReleaseMEMORANDUM
DATE: July 10, 2017
TO: Ben Siegel, City Manager
Steve May, Public Works and Utilities Director
FROM: George Alvarez, City Engineer 27 r,
SUBJECT: Warranty Bond Release—Campanilla, Tract 13436
The developer has completed all 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 Department. On
November 3, 2015 City Council approved and adopted Resolution 15-11-03-01, accepting the work as
complete and approval of release of sureties on the project. The City requires that the owner/developer
provide a one-year warranty of this work. The developer had supplied warranty bonds totaling
$317,583.10 (10% of the original improvement costs) to cover the costs of any warranty issues over the
next year.
Over a year has passed since the Notice of Completion for the project was recorded. No warranty issues
have required the use of the warranty bonds. While normally these bonds automatically terminate after a
year's time the surety and developer are requesting that the City provide a release letter. The warranty
bond release is recommended as follows:
SURETY COVERAGE
(Lexon Insurance Company)
Bond Number
Type of Improvement Bond Amount
1134557
Campanilla - Common Area Offsite Landscaping
$6,500.00
1134558
Campanilla- Grading Improvements
$24,000.00
1134559
Campanilla - In -Tract Landscaping Improvements
$65,000.00
1134560
Campanilla- Monumentation
$1,650.00
1134561
Campanilla - Storm Drain
$58,675.00
1134562
Campanilla, Tract 13436 - Water and related appurtenances
$38,452.00
1134563
Campanilla, Tract 13436 - Sanitary Sewer Area
$31,082.00
1134564
Campanilla, Tract 13436- Public Streets
$1,960.00
1134565
Campanilla, Tract 13436 - Private Streets
$79,464.00
Attachments: November, 2015 City Council Item
Cc: Tom Toman, Assistant Public Works Director
Hossein Ajideh, Senior Civil Engineer
City of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Thom Coughran, P.E., Interim Public Works and Utilities Director
Prepared by: Joe Mankawich, Associate Engineer
DATE: November 3, 2015
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 for the Campanilla
Subdivision (Tract 13436) (Taylor Morrison of California, LLC)
RECOMMENDATION:
By motion,
1. Adopt a Resolution accepting the public street, sewer, water, landscaping, traffic
signal, and storm drain improvements and the work of improvements for the onsite
and offsite grading pertaining to Campanilla (Tract 13436); and,
2. Direct the City Clerk to process the recording of the Notice of Completion with the
Orange County Recorder; and,
3. Authorize the City Clerk to release the corresponding bonds 35 days after the
recordation of the Notice of Completion.
EXECUTIVE SUMMARY:
Taylor Morrison of California LLC (Developer) of Campanilla (Tract 13436) has requested
that the City release the street, water, traffic signal, sewer, storm drain, and onsite and
offsite improvement bonds held by the City. These improvements have been inspected
and satisfactorily completed. Staff recommends adoption of a resolution accepting the
work as complete, the filing of a Notice of Completion and the release of the corresponding
bonds.
City Council Agenda Report
November 3, 2015
Page 2 of 3
DISCUSSION/ANALYSIS:
Tract Map 13436 consists of six (6) numbered lots and one (1) lettered Lot on a 28.35 acre
property. In 2009, Pacific Communities Builder submitted an Architectural Control (AC 09-
004) application to the Planning Commission and obtained, by Planning Commission
Resolution No. 09-06-09-01, a conditional approval to construct a 132 -lot single family
residential development, consisting of various sized single family detached homes and
condominiums on the six (6) numbered lots within the boundaries of Tract Map 13436.
Plans for the improvements were approved by the City Engineer in 2011 and 2012. On
May 15, 2012, the City Council approved the Subdivision Improvement Agreement with
Taylor Morrison of California.
One of the Conditions of Approval for Tract 13436 requires developer participation, in the
amount of $108,000 for traffic improvements. In lieu of a traffic signal, a roundabout will be
constructed. The $108,000 fee will used to reimburse the Pacifica San Juan Developer
who is constructing the roundabout. The developer has submitted a cash deposit to the
City in the amount of $108,000 to meet this participation requirement. The developer has
completed all other 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 Department. 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 and cash deposit as noted in the summary
above, the bond release is recommended as follows:
SURETY COVERAGE
(Developers Surety and Indemnity Company)
Bond Number
Type of Improvement
Bond Amount
Bond #1071734
Grading Performance
$
240,000.00
Bond #1071741
Monumentation
$
16,500.00
Bond #1071742
Offsite Landscaping
$
65,000.00
Bond #1071743
In -Tract Landscaping
$
650,000.00
Bond #1071744
Traffic Signal Improvements
$
108,000.00
Bond #1071745
Sanitary Sewer
$
310,818.00
Bond #1071746
Storm Drain
$
586,751.00
Bond #1071747
Private Street
$
794,642.00
Bond #1071748
Public Street
$
19,600.00
Bond #1071749
Water & Appurtenances
$ 384.520.00
Total Bond Amount
$3,175,831.00
The City requires that the ownerldeveloper provide a one-year warranty of this work. The
developer has supplied warranty bonds totaling $317,583.10 (10% of the original
improvement costs) to cover the costs of any warranty issues over the next year.
City Council Agenda Report
November 3, 2015
Page 3 of 3
FISCAL IMPACT:
Not applicable.
ENVIRONMENTAL IMPACT:
Not applicable.
PRIOR CITY COUNCIL REVIEW:
• On May 15, 2012, the City Council approved the Subdivision Improvement
Agreement for Tract 13436, Taylor Morrison of California, LLC. (Campanilla
Homeowners Association).
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
• On June 9, 2009, the Planning Commission approved Architectural Control 09-004
for Tract 13436 (Taylor Morrison of California, LLC).
NOTIFICATION:
Taylor Morrison of California, LLC
ATTACHMENT(S):
Attachment 1 - Resolution
Attachment 2 - Notice of Completion
Attachment 3 - Location Map