Fremont City Council Meeting: 11/15/22 07:00 PM
3300 Capitol Avenue Div/Dept: Engineering
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4739) DOC ID: 4739
Updated: 11/8/2022 11:09 AM by Alberto Quintanilla Page 1 PARCEL MAP 9281 BOND RELEASE - Approval of Partial Release of Performance Bonds in the Amount of $2,810,000 Posted by APIC THE GLOBE, LLC with the Public and Private Agreements Required for Parcel Map 9281; and Make Findings of CEQA Exemptions
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 $2,810,000 reflecting the 89 percent completion of subdivision improvements associated with Parcel Map 9281, commonly known as The Globe, and located in City Council District 5.
BACKGROUND: On February 27, 2007, the City Council approved Planned District P-2006- 0010 for The Globe. On June 25, 2007, the Community Development Department approved Tentative Parcel Map 9281 for The Globe. Final Parcel Map 9281 was approved by the City Engineer on March 13, 2019, and was recorded on June 25, 2019. The developer was required 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 $3,610,000 shown below to guarantee the construction of public and private improvements that included, among other things, the construction of curb, gutter, sidewalk, streetlights, signal modification, landscaping, accessible ramps, utility connections, striping, signage and asphalt concrete pavement for public and private streets.
DISCUSSION/ANALYSIS: The private improvements required to be constructed by the developer have been completed, and some of the public improvements have either been partially completed or reduced in scope because of subsequent City Council approval on March 15, 2022, of the Rezoning and Vesting Tentative Parcel Map 11171 for another developer (Scannell) for a portion of the original Globe development. Accordingly, the City will release the private improvements bond, and staff is recommending that the council approve a partial release of the public improvements bond for Parcel Map 9281. City staff has calculated the cost for the remaining work and has determined that it is now 20 percent or less of the original construction costs which were secured under the performance bond.
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 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, it is proposed to partially Staff Report (ID # 4739) Meeting of November 15, 2022
Updated: 11/8/2022 11:09 AM by Alberto Quintanilla Page 2 release the performance bonds and retain performance security in an amount twice the cost estimate of the remaining work.
The posted bonds and status of subdivision improvements is shown in the Table below:
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,
Parcel Map 9281,
Public
Improvements
$2,025,000 80% Curb, gutter,
sidewalk 20%
Signal
modification,
curb ramps,
median
reconstruction,
slurry seal and
signing and
striping.
$ 400,000 $800,000 $ 1, 225,000
Improvement
Agreement,
Parcel Map 9281,
Private
Improvements
$1,585,000 100%
AC
pavement,
curb, gutter,
utilities,
landscape
0% N/A $ 0 $ 0 $ 1,585,000
Total: $ 3,610,000 89% 11% $400,000 $800,000 $ 2, 810,000
FISCAL IMPACT: None.
ENVIRONMENTAL REVIEW: The action is not a project as defined by CEQA and is exempt from CEQA review under Section 15378(b)(2) and (b)(5).
ATTACHMENTS:
• Site Plan (1 sheet) – The Globe
RECOMMENDATIONS: Find that the action is exempt from CEQA review under Section 15378(b)(2) and (b)(5) and approve the partial release of the Faithful Performance Bonds in the amount of $2,810,000 posted by APIC THE GLOBE, LLC with the approved Public and Private Improvement Agreements for Parcel Map 9281.