12-01-2020 - AGENDA ITEM 05 CONSIDERATION OF RELEASE OF FAITHFUL PERFORMANCE GUARANTEE AND LABOR AND MATERIAL BONDS FOR TRACT MAP NO. 77133 - MERITAGE HOMES OF CALIFORNIA, INC.AGENDA ITEM NO. 5
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: December 1, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF RELEASE OF FAITHFUL PERFORMANCE GUARANTEE AND
LABOR AND MATERIAL BONDS FOR TRACT MAP NO. 77133 - MERITAGE HOMES
OF CALIFORNIA, INC.
RECOMMENDATION:
It is recommended that the City Council accept all on -site and off -site improvements for Tract Map No. 77133
located at 1530 W. Cameron Avenue and authorize the release of Faithful Performance and Labor and Material
Bonds in the amount of $461,506 and $36,391 respectively.
DISCUSSION:
Meritage Homes of California, Inc. (Meritage Homes) submitted an application to subdivide three 2.82-acre
parcels located at 1530 W. Cameron Avenue to construct 56 condominium units (townhomes). On or about
March 6, 2019, Meritage Homes and the City executed a Subdivision Improvement Agreement for the required
on -site and off -site improvements in accordance with the conditions of approval for the development. A form
of security was required to be posted to guarantee construction of the required improvements to the satisfaction
of the City Engineer. Meritage Homes posted a Faithful Performance Bond in the amount of $461,506 and a
Labor and Material Bond in the amount of $36,391 to guarantee completion of the required improvements.
All improvements have been completed in accordance with the Subdivision Improvement Agreement and to
the satisfaction of the City Engineer. Therefore, Meritage Homes 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 Material Bonds.
OPTIONS:
The City Council has the following options:
1. Approve Staff's recommendation; or
2. Provide alternative direction.
Prepared by: Michael Ackerman, PE, City Engineer
Fiscal Impact
FISCAL IMPACT:
None.
CITY COUNCIL GOALS & OBJECTIVES: Engage in Proactive Economic Development