HomeMy WebLinkAbout08 - Cannery Lofts Release of SuretyCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 8
October 26, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Fong Tse, P.E.
949 - 644 -3324
ftse@city.newport-beach.ca.us
SUBJECT: RELEASE OF SURETY FOR IMPROVEMENTS CONSTRUCTED FOR
TRACT NO. 16292 (CANNERY LOFTS) — USE PERMIT NO. 2001 -022
DEVELOPER: CANNERY LOFTS, LP
RECOMMENDATIONS:
1. Accept the improvements constructed under Use Permit No. 2001 -022.
2. Authorize the City Clerk to release the $600,000.00 faithful performance bond
retained by the City as a guarantee for completing the public improvements along
the Villa Way, LaFayette Ave, and 30" Street frontages and the Rhine Channel.
DISCUSSION:
On October 8, 2002, the City Council approved the Agreement for Construction of
Improvements required by Use Permit No. 2001 -022 (Permit). The Agreement required
the construction of street, sewer, storm drain, water, lighting, and landscaping public
improvements throughout the development site. Accordingly, Cannery Lofts, LP
submitted a faithful performance bond in the amount of $600,000.00, to guarantee the
completion of said work.
The completed public improvements have been inspected and are satisfactory for
acceptance. Cannery Lofts, LP has requested in writing that the $600,000.00 bond
retained by the City be released (see attached letter). Staff has reviewed and concurs
with said release request.
Environmental Review:
Provisions of CEQA are not applicable.
A b : Submitted by:
, P.E. Ste hen�Badum
Civil gineer Public Works Director
Attachments: Exhibit and Letter from Cannery Lofts, LP
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cannery lofts
October 11, 2004
VIA FACSIMILE (949) 644 -3318
Mr. Fong Tse, P.E.
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92658
Re: Street Improvement Bond #190603380
Dear Fong
This letter is in regards to releasing the street improvement bond for Cannery Lofts,
L.P. On July 5, 2004, we turned the portion of 30th Street our development occupies back
over to the City of Newport Beach.
General Services has taken over the maintenance on the street end (Mini Park), along
with the street trees and storm drain clarifier. We delivered two street drain grates and four
extra bollards to Frank Martin, our public works Inspector, to be turned over to General
Services. We would like July 5, 2004 to begin the three year period to ascertain the cost of
maintenance of improvements annually placed on the public right of way. The maintenance
period will be twenty years total.
We anticipate maintenance for the twenty year period to total $21,000.00 to
$24,000.00 and estimate that approximately $75,000.00 of our $100,000.00 cash payment
delivered to the City in early October 2003 will be returned to us.
Please send a letter acknowledging the release of the bond so that we may forward
that to our bonding company, as our bond expired in August.
ph: 949- 673 -LOFT (5638) fx, 949 -673�i2OE *ww.oaenorylotTa.com 1429 west 30th St: Newport Beach, CA 9Z663
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