07-07-2020 - AGENDA ITEM 04 CONSIDERATION OF RELEASE OF FAITHFUL PERFORMANCE AND LABOR AND MATERIAL BONDS FOR PARCEL MAP NO. 74787 LOCATED AT 845 S. SUNKIST AVENUE - SILVERADO PROPERTY GROUP, LLCAGENDA ITEM NO. 4
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: July 7, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF RELEASE OF FAITHFUL PERFORMANCE AND LABOR AND
MATERIAL BONDS FOR PARCEL MAP NO.74787 LOCATED AT 845 S. SUNKIST
AVENUE - SILVERADO PROPERTY GROUP, LLC
RECOMMENDATION:
It is recommended that the City Council accept all on -site and off -site improvements for Parcel Map No.
74787 located at 845 S. Sunkist Avenue and authorize the release of Faithful Performance and Labor and
Material Bonds in the amount of $29,250 and $29,250, respectively.
BACKGROUND:
A Subdivision Improvement Agreement represents a promise by a developer to install and complete, at the
developer's own expense, specified public improvements required by the City in connection with a proposed
development. The Agreement is secured by performance security, which guarantees satisfactory completion of
the work, and a labor and materials bond, which guarantees that subcontractors and suppliers are paid for the
work and materials they supply in connection with the improvements.
DISCUSSION:
Silverado Property Group, LLC applied to subdivide a 26,650-square foot vacant residential parcel into three
parcels to construct three single-family residences. In accordance with the conditions of approval for the
development, Silverado Property Group, LLC entered into a Subdivision Improvement Agreement with the
City for the required on -site and off -site improvements on March 13, 2019. The
Agreement required performance security in an amount equal to 100% of the estimated cost of the
improvements and a labor and materials bonds in an amount equal to 100% of the estimated cost of the
improvements. Silverado Property Group, LLC posted a Faithful Performance bond in the amount of $29,250
and a Labor and Materials in the amount of $29,250.
All improvements have been completed in accordance with the Subdivision Improvement Agreement and to
the satisfaction of the City Engineer or designee. Therefore, Silverado Property Group, LLC is requesting the
release of the bonds. Staff recommends that the City Council accept the improvements and authorize the
release of the Faithful Performance and Labor and Materials Bonds.
OPTIONS:
The City Council has the following options:
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11/24/2020 Print Staff Report
1. Approve Staff's recommendation; or
2. Provide alternative direction.
Prepared by: Michael Ackerman, City Engineer
Fiscal Impact
FISCAL IMPACT:
The bonds are held to guarantee performance and released upon successful completion of the work. There is
no impact to the City's general fund.
CITY Enhance the City Image and Effectiveness
COUNCIL Engage in Proactive Economic Development
GOALS &
OBJECTIVES:
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