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HomeMy WebLinkAbout25-Public Works - ~ CITY OF SAN BERNGDINO File No. 10.05-"E" St. & 9th St. . - REQUEST FOi COUNCIL ACTION From: ROGER G. HARDGRAVE Subject: Request for Release of Cash Bond from Gene Pensiero Widening the Street at the Southwest,Corner of wEw Street and Niniih "'Street '.. Dept: Public Works/Engineering Date: 1-24-91 , Synopsis of Previous Council action: 05-06-74 -- Request by Mr. Gene Pensiero to post a bond, in lien!. of. the required widening, continued to Council meeting of' ".,1 5-20-74. , 05-20-74 -- City Engineer directed to formalize a cash deposit by Mr. Gene pensiero, in lieu of posting a bond for the required street widening in connection with a new development of 898 North "E" Street. 11-18-74 -- Ordinance No. 3460 adopted allowing a developer of a corner lot to apply for a contribution for relocation of utilities required by a street widening. (continued on second page) Recommended motion: 1. That the request by Mr. Gene pensiero, for release of the cash bond, in the amount of $7,000, filed to insure street widening at the southwest corner of "E" Street and Ninth Street, be approved. OR 2. That the cash or bond,in the amount of $7,500, filed by Mr. Gene Pensiero to insure street widening of the southwest corner of "E" Street and Ninth Street, be deemed as fulfi' the developer's obligation and authori . n granted t Ie e surety bond. cc: Shauna Edwins Andy Green Contact person: Roqer G. Hardarave Phone: "n,,, Supporting data attached: Staff Rpt. and Letter Ward: 1 FUNDING REQUIREMENTS: Amount: $7,000 (Motion No.1), Source: (Acct. No.) 7:l gO! 000 172 - 30t - 2'13>-05' Acct. Descri tion II Ell and 9th Street Finance: Council Notes: 75-0262 Agenda Item No .:l.S - J.- - Release of Cash Bone pensiero 0 SYNOPSIS OF PREVIOUS COUNCIL ACTION (Continued) 03-10-75 Ordinance No. 3483 adopted to Engineer to determine the time that can be deferred, up to two years. authorize the City street improvements July '76 -- Request for a one-year continuance granted, subject to renewal of the surety bond. 01-17-77 -- Letter from improvements Director of mendation. Mr. Gene Pensiero regarding street referred to the First Ward Councilman and Public Works/City Engineer for a recom- 03-14-77 -- Approval granted for the City to participate to the extent of 100% of the cost for relocation of the fire hydrant, traffic signals. 04-04-77 -- Minutes of meeting of 3-14-77 amended to read: the City participate to the extent of 100% of account labor." "That force 1-24-91 J. ..! CITY OF SAN BERNADINO - REQUEST pQt COUNCIL ACTION STAFF REPORT Page 1 of 2 A letter, dated 1-14-91, has been submitted by Mr. Gene pensiero, of North American Auto Industries, Inc., requesting an appearance before the Mayor and Council to ask for release of a cash bond. This bond is in the total amount of $7,500, and was posted to guarantee widening of the southwest corner of "E" Street and Ninth Street. A copy of this letter is attached for reference. Mr. Pensiero submitted an application in 1974 for a development on the southwest corner of "E" Street and Ninth Street. Both streets needed to be widened to their planned ultimate width of 32 feet from centerline. A condition of approval was, therefore, placed on the development that both streets be widened. At the Council meeting of 5-6-74, the letter dated 5-1- 7 4 from Mr. Pensiero, requesting authority to post a bond in lieu of the required widening, was considered. This item was continued to 5-20-74. This matter was discussed at the Council meeting of 5- 20-74, and action taken to direct the City Engineer to formalize a cash deposit in lieu of posting a bond. A cash deposit, in the amount of $500.00 was filed with the Finance Department, Account No. 72-801-000, for curb, gutter, paving and staking permit. Addi tional cash deposits were filed with the Street Department in the amounts of $2,000 and $5,000, for street improvements. A Certificate of Occupancy was issued, upon posting of a cash bond in the amount of $7,500, since the Mayor and Council were in the process of adopting an amendment to Ordinance No. 1991, Section 20.2, Sub-Section E. This amendment allowed street improvements, required in connection with development on a corner lot, to be deferred for a period of one year. Surety Bond No. NB 621929 was issued by the Horne Indemnity Company on 11-14-74, in the amount of $7,500. A request was submitted by Mr. Pensiero for the cash bond to be returned, since a surety bond had been filed. Our memo of 11- 18-74 to Mr. Elton Tavernetti, Director of Finance, recommended that the $500 bond not be returned, since it was for preparation of street improvement plans by the Engineering Department. We have no record in our files of the $7,000 cash bonds being re- turned. Ordinance No. 3483, adopted on 3-10-75, authorized the City Engineer to determine the time that street improvements can 1-24-91 75-0264 4. CITY OF SAN BERNADINO - REQUEST ~ COUNCIL ACTION STAFF REPORT Page 2 of 2 be deferred, up to two years. An extension of time was granted to Mr. pensiero from 11-1-75 to 11-1-76, by letter from Mr. Tom Barnett, Assistant City Engineer, dated 10-20-75. In pensiero's renewal of July, 1976, request for the bond. the Mayor and Council granted Mr. another one-year extension, subject to A memo, dated 8-23-76, from Mr. Ralph Prince, City Attorney, stated. "the imposition of relocation costs of utilities, fire hydrants, traffic signals, drainage culverts, etc., does not seem to have any direct relationship between the new business and the increased amount of traffic caused by the new development. In other words, perhaps these unusual costs should be borne by the City or pro rata by all the developers in the block." Mr. pensiero submitted a letter to the Mayor and Council requesting funding of the street improvements, due to the heavy financial burden on the developer. At the Council meeting of 1- 17-77, this letter was referred to the Councilman of the First Ward and Director of Public Works/City Engineer for a recom- mendation. A motion was adopted at the Council meeting of 3-14-77 authorizing the City to participate to the extent of 100% of the cost of relocating the fire hydrant, traffic signals and the drainage culvert. The minutes of this meeting were amended at the Council meeting of 4-4-77 to read: "that the City partici- pate to the extent of 100% of force account labor." Several letters were sent by our office to Mr. Pensiero inquiring when work would be commenced. However, no work has been done, due to problems Mr. Pensiero experienced in reloca- tion efforts by the utility companies, etc. There seem to be two possible courses of action. One is to approve Mr. pensiero's request to return the $7,000, due to the amount of time that has elapsed, since the condition to widen was first imposed. This, of course, assumes that these funds were not reimbursed when the surety bond was filed in November, 1974. 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