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 # 4721) DOC ID: 4721
Updated: 9/29/2022 10:35 AM by Alberto Quintanilla Page 1 TRACT 8403 BOND RELEASE - Approval of Partial Release of Performance Bond in the Amount of $2,288,000 Posted by Toll CA XX, L.P. with Private Improvements Agreement Required for Project Metro Crossing Phase 3 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 Bond in the total amount of $2,288,000 reflecting the 97% percent completion of subdivision improvements associated with Tract 8403, commonly known as Metro Crossing Phase 3, and located in City Council District 5.
BACKGROUND: On April 14, 2016, the Planning Commission approved Vesting Tentative Tract Map 8265 which allowed for multiple filings of final maps. Final Tract Map 8403 was the third map filed and was approved by City Council on January 15, 2019, which required the developer to enter into a Private Improvement Agreement for construction of the improvements. In addition, the developer posted a Faithful Performance Bond in the amount of $2,416,000 to guarantee the construction of 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 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 Bond posted with the Improvement Agreement for Tract 8403.
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 bond and status of subdivision improvements is shown in the Table below:
Agreement Performance % Work Description % Work Description of Cost of Amount Amount of Staff Report (ID # 4721) Meeting of October 4, 2022
Updated: 9/29/2022 10:35 AM by Alberto Quintanilla Page 2 bond (100%) completed of work
completed
remaining work
remaining
work
remaining
of bond
to be
retained
bond
reduction
Improvement
Agreement, Tract 8403,
Private Improvements
$2,416,000 97%
Paving,
Curb, Gutter,
Sanitary
Sewer,
Storm Drain,
Electrical
3%
Landscaping,
Bioretention,
Water
utilities,
Striping, and
Signage
$64,000 $128,000 $2,288,000
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.
Furthermore, and as a separate and independent basis for CEQA compliance, the action is not a project as defined by CEQA and is exempt from CEQA review under Section 15378(b) (2) and (5). No further environmental review is required.
ATTACHMENTS:
• Site Plan (1 sheet) – Tract 8403
RECOMMENDATION: Approve the partial release of the Faithful Performance Bond in the amount of $2,288,000 posted by Toll CA XX, L.P. with the approved Private Improvement Agreement for Tract 8403.