Fremont City Council Meeting: 01/11/22 07:00 PM
3300 Capitol Avenue Div/Dept: Engineering
Fremont, CA 94538 Category: Private Development Projects
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4513) DOC ID: 4513
Updated: 1/4/2022 9:40 AM by Susan Gauthier Page 1
TRACT 8399 BOND RELEASE - Approval of the Partial Release of Faithful Performance Bonds in the Amount of $6,956,426 Posted by BMCH California, LLC with the Approved Public and Private Agreements for Tract 8399 Contact Persons:
Name: Kelly Reynolds Hans Larsen
Title: Senior Civil Engineer Public Works Director
Div/Dept: Engineering Public Works
Phone: 510-494-4737 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to facilitate partial release of the Faithful Performance Bonds in the total aggregate amount of $6,956,426 reflecting the 96 percent completion of subdivision improvements associated with Tract 8399 located in the Warm Springs Community Plan area.
BACKGROUND: On April 3, 2018, the City Council approved Vesting Tentative Tract Map 8399 for the 17-acre property at 47320 Mission Falls Court in the Warm Springs Community Plan Area. Final Tract Map 8399 was approved by City Council on September 4, 2018, which required the developer to enter into Public and Private Improvement Agreements for construction of the improvements. In addition, the developer posted Faithful Performance Bonds in the amount shown below to guarantee the construction of public and private improvements that included but is not limited to construction of curb, gutter, sidewalk, and asphalt concrete pavement for public and private streets and other common area improvements.
DISCUSSION/ANALYSIS: The improvements required to be constructed by the developer have been substantially completed. As such, the developer has requested partial release of the Faithful Performance Bonds posted with the Improvement Agreements for Tract 8399.
The developer has submitted cost estimates for the remaining work, and staff has reviewe d and has determined that the work remaining is 4 percent or less of the original construction costs for which the Faithful Performance Bond amounts were based on. Section
17.20.290(e) 1 of the Fremont Municipal Code, under Financial Guarantees, provides, in relevant part, that the “City Council may permit the partial release of the security upon the partial performance of the act or the acceptance of the work as it progresses”. Section 66499.7 of the Subdivision Map Act, under Release of Security, allows for a partial release of the Faithful Performance Bonds provided that the remaining work does not exceed 20 percent of the original bond amount and that performance security is retained or substitute security is provided in an amount not less than 200 percent of the engineer’s cost estimate of the remaining work. As shown on the table below, the City will partially release the performance bond and retain performance security in an amount of twice the cost estimate of the remaining work.
The posted bonds and status of subdivision improvements is shown in the Table below:
Staff Report (ID # 4513) Meeting of January 11, 2022
Updated: 1/4/2022 9:40 AM by Susan Gauthier Page 2
Agreement
Performance
bond
(100%)
% Work
complet
ed
Description of work
completed
%
Work
remaini
ng
Description
of work
remaining
Cost of
work
remaining
Amount
of bond to
be
retained
Amount of
bond
reduction
Improvement
Agreement,
Tract 8399,
Public
Improvements
$270,210 92%
Utility connections,
curb, gutter &
sidewalk, driveways,
curb ramps, street
lights, signing and
striping
8%
Curb, gutter
& sidewalk,
driveway,
street
lighting, and
landscaping
$22,632 $45,264 $224,946
Improvement
Agreement,
Tract 8399,
Private
Improvements
$7,306,880 96%
Street work, sanitary
sewer, storm drain,
stormwater quality,
water, dry utilities,
perimeter walls
4%
Pad fine
grading,
common area
landscaping
$287,684 $575,400 $6,731,480
Total: $7,577,090 96% 4% $310,316 $620,664 $6,956,426
FISCAL IMPACT: None.
ENVIRONMENTAL REVIEW: On March 1, 2016 the City Council adopted a Mitigated Negative Declaration for the project and found that there was no substantial evidence that the project would have a significant effect on the environment. The Final Map and Improvement Plans are consistent with the original project description, scope of work, and identified mitigations of the adopted Mitigated Negative Declaration. No further environmental review is required.
ATTACHMENTS:
• Site Plan (1 sheet) – Tract 8399
RECOMMENDATION: Approve the partial release of the Faithful Performance Bonds in the amount of $6,956,426 until the improvements are accepted by the City Engineer.