Fremont City Council Meeting: 11/01/22 07:00 PM
3300 Capitol Avenue Div/Dept: Engineering
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4735) DOC ID: 4735
Updated: 10/27/2022 8:15 AM by Alberto Quintanilla Page 1 TRACT 8465 BOND RELEASE - Approval of the Partial Release of Performance Bond in the Amount of $3,000,000 Posted by Toll West Coast, LLC with the Private Improvement Agreement Required for Metro West Phase 2 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 Bond in the total aggregate amount of $3,000,000 reflecting the 84% percent completion of subdivision improvements associated with Tract 8465, commonly known as Metro West Phase 2.
BACKGROUND: On October 26, 2017, the City Council approved Vesting Tentative Tract Map 8398 for Metro West which allowed for multiple filings of final maps. Final Tract Map 8465 was the second map filed and was approved by City Council on December 8, 2020, 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 $4,430,000 to guarantee the construction of private improvements that includes 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 8465.
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 Bond 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 twice the cost estimate of the remaining work.
The posted bond and status of subdivision improvements is shown in the Table below:
Staff Report (ID # 4735) Meeting of November 1, 2022
Updated: 10/27/2022 8:15 AM by Alberto Quintanilla Page 2 Agreement Performance
bond (100%)
% Work
completed
Description of
work completed
% Work
remaining
Description of
work
remaining
Cost of
work
remaining
Amount of
bond to be
retained
Amount of
bond
reduction
Improvement Agreement,
Tract 8465, Public
Improvements
$4,430,000 84%
Paving, Curb,
Gutter,
Sidewalk, Curb
Ramp,
Driveway,
16%
Striping,
Signage,
Utilities,
Landscaping
$ 715,000 $ 1,430,000 $3,000,000
FISCAL IMPACT: None.
ENVIRONMENTAL REVIEW: The recommended action is a financial transaction and is “not a project” as defined by CEQA and is exempt from CEQA review under Section 15378(b)(2) and (b)(5). It is noted that construction of Tract 8465 has environmental clearance from the Final Environmental Impact Report (SCH# 2013032062) for the Warm Springs/South Fremont Community Plan.
ATTACHMENTS:
• Site Plan (1 sheet) – Tract 8465
RECOMMENDATION: Approve the partial release of the Faithful Performance Bond in the amount of $3,000,000 posted by Toll West Coast, LLC with the approved Private Improvement Agreement for Tract 8465.