Fremont City Council Meeting: 10/04/22 07:00 PM
3300 Capitol Avenue Div/Dept: Engineering
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4720) DOC ID: 4720
Updated: 9/29/2022 10:33 AM by Alberto Quintanilla Page 1 TRACT 8398 BOND RELEASE - Approval of Partial Release of Performance Bonds in the Amount of $6,889,999 Posted by Toll West Coast, LLC with Public and Private Improvement Agreements Required for Metro West Development Project Contact Persons:
Name: Anne Quasarano Hans Larsen
Title: Senior Civil Engineer Public Works Director
Div/Dept: Engineering Public Works
Phone: 510-494-4767 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 $6,889,999 reflecting the 94% percent completion of subdivision improvements associated with Tract 8398, commonly known as Metro West Phase 1 (formerly known as VOP Warm Springs Phase 1), and located in City Council District 5.
BACKGROUND: On October 26, 2017, the City Council approved Vesting Tentative Tract Map 8398 for Metro West Phase 1. Final Tract Map 8398 was approved by City Council on July 16, 2019, 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 of $7,783,999 to guarantee the construction of public and private improvements that included but is not limited to construction of curb, gutter, sidewalk, streetlights, landscaping, accessible ramps, utility connections, striping, signage, and asphalt concrete pavement for public and private streets.
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 8398.
The developer has submitted cost estimates for the remaining work, and staff has reviewed and has determined that the work remaining is twenty 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:
Agreement Performance % Work Description of % Work Description Cost of Amount Amount of Staff Report (ID # 4720) Meeting of October 4, 2022
Updated: 9/29/2022 10:33 AM by Alberto Quintanilla Page 2 bond (100%) completed work
completed
remaining of work
remaining
work
remaining
of bond
to be
retained
bond
reduction
Improvement
Agreement, Tract
8398, Public
Improvements
$4,538,999 96%
Paving, Curb,
Gutter,
Sidewalk,
Curb Ramp,
Driveway,
4%
Striping,
Signage,
Utilities,
Storm Drain,
Landscaping
$183,000 $366,000 $4,172,999
Improvement
Agreement, Tract
8398, Private
Improvements
$3,245,000 92%
Paving, Curb,
Gutter,
Sanitary
Sewer, Storm
Drain,
Electrical
8%
Landscaping
,
Bioretention,
Water
utilities,
Striping, and
Signage
$264,000 $528,000 $2,717,000
Total: $7,783,999 94% 6% $447,000 $894,000 $6,889,999
FISCAL IMPACT: None.
ENVIRONMENTAL REVIEW: In July 2014, the City Council certified the Final Environmental Impact Report (SCH# 2013032062) for the Warm Springs/South Fremont Community Plan. Pursuant to CEQA Guidelines Section 15183, an Environmental Compliance Checklist was prepared for the project that found that the development density and intensity to be consistent with the Community Plan and there were no significant effects related to the project or site. The Final Map and Improvement Plans are consistent with the original project description and scope of work and there are no substantial changes to the project requiring further environmental review under CEQA Guidelines Section 15162. No further environmental review is required. Furthermore, and as a separate and independent basis for CEQA compliance, the action is not project as defined by CEQA and is exempt from CEQA review under Section 15378(b)(2) and (b)(5).
ATTACHMENTS:
• Site Plan (1 sheet) – Tract 8398
RECOMMENDATION: Approve the partial release of the Faithful Performance Bonds in the amount of $6,889,999 posted by Toll West Coast, LLC with the approved Public and Private Improvement Agreements for Tract 8398.