ITEM 4. 10
CITY MANAGER' S REPORT
AUGUST 12, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE REPLACEMENT OF THE SOUTH LATHROP
COMMERCE CENTER BONDS ASSOCIATED WITH THE
SUBDIVISION IMPROVEMENT AGREEMENT FOR
PARCEL MAP 17- 01
RECOMMENDATION: Adopt Resolution Approving Replacement of the South Lathrop Commerce Center Bonds Associated
with the Subdivision Improvement Agreement for
Parcel Map 17- 01
SUMMARY:
South Lathrop Land, LLC ( SLL), the developer for the South Lathrop Commerce Center ( SLCC) Project, has substantially completed the public improvements associated with their Subdivision Improvement Agreement ( SIA) for Parcel Map ( PM) 17- 01, dated September 10, 2018. An exhibit of the remaining areas to improve is included as Attachment " B" and an engineer' s
estimate of the remaining
improvements is included as Attachment " C".
SLL has requested that the performance bond and the labor & material bond be replaced by bonds that reflect the cost of the remaining public improvements.
Staff requests City Council approve the release of the original bonds provided with the SIA for PM 17- 01 and replace them with new bonds provided by SLL.
BACKGROUND:
On July 20, 2015, the South Lathrop Specific Plan ( SLSP) was adopted by City Council and annexed into the City of Lathrop on June 14, 2016. The SLSP annexation includes a 99 -acre portion of the Lathrop Gateway Business Park Specific Plan and encompasses a 315 -acre area that includes commercial office uses, limited industrial uses, and open space.
On April 18, 2016, City Council approved SLCC Vesting Tentative Parcel Map ( VTM) No. 15- 94 with Conditions of Approval ( COAs) for development consistent with SLSP.
The SLCC Project is generally located at the southeast portion of the City limits bounded by State Route 120 to the north, San Joaquin River to the west, and the Union Pacific Railroad to the south.
On January 13, 2020, City Council accepted various offsite improvements from SLL that were constructed in accordance with their SIA and Development Agreement DA), including backbone infrastructure improvements, a regional outfall structure, a storm drain pump station, a sanitary sewer pump station, a traffic signal, and highway interchange improvements. On September 12, 2022, Council accepted the CITY MANAGER' S REPORT PAGE 2
AUGUST 12, 2024 CITY COUNCIL REGULAR MEETING
APPROVE REPLACEMENT OF THE SOUTH LATHROP COMMERCE CENTER
BONDS ASSOCIATED WITH THE SUBDIVISION IMPROVEMENT AGREEMENT FOR PARCEL MAP 17- 01
landscape improvements from SLL associated with their SIA. On June 10, 2024, City council accepted additional landscape improvements from SLL associated with Encroachment Permit ( EP) 23- 156 that were constructed in accordance with their SIA.
The majority of the public improvements associated with the SIA for PM 17- 01 are complete. SLL has requested for the performance and labor & material securities that were provided with the SIA for PM 17- 01 be released and replaced as detailed in Table 1. The accepted improvements were removed from the bond amount estimate and Staff confirms that the proposed new bonds are sufficient to guarantee the remaining incomplete improvements.
The replacement performance bond ( CIC1945299) and the replacement labor and material bond ( CIC1945303) in the amounts shown in Table 1 below guarantee the remaining improvements. The replacement bonds will remain in place until all remaining improvements, as detailed in the SIA, are accepted by Council.
Table 1
SIA
Performance
Bond
SIA Labor and
Material Bond
Replacement
Performance
Bond
Replacement
Labor and
Material Bond
K13490624
27, 338, 889
K13490624
13, 669, 445
CIC1945299
1, 454, 383
CIC1945303
727, 191. 50
REASON FOR RECOMMENDATION:
Staff request Council approve the release of the original bonds provided with the SIA for PM 17- 01 and replace them with new bonds provided by SLL.
FISCAL IMPACT:
None.
ATTACHMENTS:
A. Resolution Approving Replacement of the South Lathrop Commerce Center Bonds Associated with the Subdivision Improvement Agreement for Parcel Map 17- 01
B. Exhibit of the remaining areas to improve in SLCC
C. Engineers Estimate of Remaining Improvements for SLCC CITY MANAGER' S REPORT PAGE 3
AUGUST 12, 2024 CITY COUNCIL REGULAR MEETING
APPROVE REPLACEMENT OF THE SOUTH LATHROP COMMERCE CENTER
BONDS ASSOCIATED WITH THE SUBDIVISION IMPROVEMENT AGREEMENT FOR PARCEL MAP 17- 01
APPROVALS:
Bellal Nabizadah Date
Assistant Engineer
Brad tYaylor
City Engineer
Cari Ja
Finance Dir'- tor
S/ 2/ ZoZy
Date
3/ sAb24
Date
8 •s• 2ozy
Michael King Date
Assistant City Manager
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
APPROVING REPLACEMENT OF THE SOUTH LATHROP COMMERCE CENTER
BOND ASSOCIATED WITH THE SUBDIVISION IMPROVEMENT AGREEMENT FOR PARCEL MAP 17- 01
WHEREAS, on July 20, 2015, the South Lathrop Specific Plan ( SLSP) was adopted by City Council and annexed into the City of Lathrop on June 14, 2016. The SLSP annexation includes a 99 -acre portion of the Lathrop Gateway Business Park Specific Plan and encompasses a 315 -acre area that includes commercial office uses, limited industrial uses, and open space; and
WHEREAS, on April 18, 2016, City Council approved South Lathrop Commerce Center ( SLCC) Vesting Tentative Parcel Map ( VTM) No. 15- 94 with Conditions of Approval ( COAs) for development consistent with SLSP. The SLCC Project is generally located at the southeast portion of the City limits bounded by State Route 120 to the north, San Joaquin River to the west, and the Union Pacific Railroad to the south; and WHEREAS, on January 13, 2020, City Council accepted various offsite improvements from South Lathrop Land, LLC ( SLL) that were constructed in accordance with their Development Agreement ( DA) and Subdivision Improvement Agreement ( SIA) for Parcel Map ( PM) 17- 01, including backbone infrastructure improvements, a regional outfall structure, a storm drain pump station, a sanitary sewer pump station, a traffic signal, and highway interchange improvements; and WHEREAS, on September 12, 2022, Council accepted the landscape improvements from SLL associated with their SIA. On June 10, 2024, City council accepted additional landscape improvements from SLL associated with Encroachment Permit ( EP) 23- 156 that were constructed in accordance with their SIA; and WHEREAS, the majority of the public improvements associated with the SIA for PM 17- 01 are complete. SLL has requested for the performance and labor & material securities that were provided with the SIA for PM 17- 01 be released and replaced as detailed in Table 1. The accepted improvements were removed from the bond amount estimate and Staff confirms that the proposed new bonds are sufficient to guarantee the remaining incomplete improvements; and WHEREAS, the replacement performance bond ( CIC1945299) and the replacement labor and material bond ( CIC1945303) in the amounts shown in Table 1 below guarantee the remaining improvements. The replacement bonds will remain in place until all remaining improvements, as detailed in the SIA, are accepted by Council
Table 1
SIA
Performance
Bond
SIA Labor and
Material Bond
Replacement
Performance
Bond
Replacement
Labor and
Material Bond
K13490624
27, 338, 889
K13490624
13, 669, 445
CIC1945299
1, 454, 383
CIC1945303
727, 191. 50
and
WHEREAS, staff request Council approve the release of the original bonds provided with the SIA for PM 17- 01 and replace them with new bonds provided by SLL.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve replacing the original bonds associated with the SIA for PM 17- 01 as reflected in Table 1.
PASSED AND ADOPTED by the City Council of the City of Lathrop this 12th day of August 2024 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST:
Teresa Vargas, City Clerk
APPROVED AS TO FORM:
Salvador Navarrete, City Attorney
PHASE
IIICONSTRUCTION FUTURE
PH
ASE 5`
rat
0\)" 0.
REG IONAL,/OUTFALL STRUCTURE
IER . pG
2 1,232
072
SF
BLDG
4 313.
496
SF
wayfair BLDG 135 1,
653
SF
10 29, 938
SF
41,0
RD CLEAN ENERGY REFUELING STATION8
276, 5585
SF
OPO
OCILP '\\
R
N
0 100
200 BLDG 9
144, 92
SF
ST
ORM
PUMP
TRIPOINT
400
SCKEY&: i'.200 'mACKASOmPS
Oct
ATTACHMENT
M
25223 010
5/ 23/024
JBM
REMAINING BACKBONE INFRASTRUCTURE ENGINEER' SESTIMATE
SOUTH LATHROP COMMERCE CENTER
City of Lathrop, California
PM 17- 01
Based on approved Improvement Plans and landscape plans prepared by MacKay & Somps and Ridge Landscape Architects
PHASE 3
ITEM QUANTITY UNIT DESCRIPTION UNIT PRICE AMOUNT
A. CONCRETE WORK
1. 23, 432 SF Concrete Sidewalk ( 6" Concrete) including ramps 7. 50 $ 175, 740 ESTIMATED TOTAL CONCRETE WORK: $ 175, 740
B. MISCELLANEOUS CONSTRUCTION
1. 47,39 SF Street Landscape ( Building 2 and Building 4 9. 70 $ 460, 158 frontage)
ESTIMATED TOTAL MISC. CONSTRUCTION: $ 460, 158
SUMMARY
B CONCRETE WORK $ 175, 740
F MISCELLANEOUS CONSTRUCTION $ 460, 158
ESTIMATED TOTAL CONSTRUCTION COST: $ 635, 898
CONTINGENCIES @10% $ 63, 590
Total Phase 3 cost $ 699, 488
25223. 010
5/ 23/024
JBM
FUTURE PHASE
ITEM QUANTITY UNIT DESCRIPTION UNIT PRICE AMOUNT
A. CONCRETE WORK
1 26, 009 SF Concrete Sidewalk ( 6" Concrete) 7. 50 $ 195, 070 ESTIMATED TOTAL CONCRETE WORK: $ 195, 070
B. MISCELLANEOUS CONSTRUCTION
1 50, 639 SF Street Landscape 9. 70 $ 491, 198
ESTIMATED TOTAL MISC. CONSTRUCTION: $ 491, 198
SUMMARY
B CONCRETE WORK $ 195, 070
F MISCELLANEOUS CONSTRUCTION $ 491, 198
ESTIMATED TOTAL CONSTRUCTION COST: $ 686, 28
CONTINGENCIES @10% $ 68,27
Total Future Phase cost $ 754, 895
25223. 010
5/ 23/024
JBM
NOTES
1. This estimate is prepared as a guide only and is subject to possible change. It has been prepared to a standard of accuracy which, to the best of our knowledge and judgment, is sufficient to satisfy our understanding of the purposes of this estimate. MacKay & Somps makes no warranty, either expressed or implied, as to the accuracy of this estimate.
It is assumed that all improvements will be installed with one phase of construction. Building in two or
2. several phases will increase this cost slightly.
Costs presented herein are based on bids received from Teichert ( sidewalk, dated 10/ 6/ 2021) and Grover
3. Landscape Services, Inc. dated 11// 2019. No provision has been made for inflation Prepared by the firm of
MACKAY & SOMPS