HomeMy WebLinkAbout4.13 Schaefer Rch Pk
STAFF REPORT CITY CLERK
File #600-60
CITY COUNCIL
DATE:July 16, 2013
TO:
Honorable Mayor and City Councilmembers
FROM:
Joni Pattillo, City Manager
SUBJECT:
Approval of Partial Release of Security Associated with Tract 6765, Schaefer
Ranch Park Improvements (Schaefer Ranch Holdings, LLC, a California Limited
Liability Company)
Prepared by Paul McCreary, Parks and Community Services Director
EXECUTIVE SUMMARY:
The City Council will consider reducing the performance bond associated with the improvements
at Schaefer Ranch Park.
FINANCIAL IMPACT:
The original Bond issued by Travelers Casualty and Surety Company of America, in the amount
of $4,371,055.00 (Bond No. 104757051) for the Schaefer Ranch Park, Tract 6765 Park
Improvements, was one bond covering both Payment and Performance. The developer will
replace the existing bond with two separate bonds; a new Payment Bond will be for $4,371,055
to secure the payment of potential claims as provided by law, and the new Performance Bond
will be reduced to $180,500. After the Partial Release of Security, the remaining bonds will be
sufficient to complete the Schaefer Ranch Tract 6765 Park Improvements. The developer will
provide a one-year Maintenance Bond when the City accepts the improvements.
RECOMMENDATION:
Staff recommends that the City Council adopt the Resolution authorizing the City Manager to
accept replacement bonds and approve a Partial Release of the Performance Bond associated
with Schaefer Ranch Park, Tract 6765 Park Improvements (Schaefer Ranch Holdings, LLC, A
California Limited Liability Company) once the necessary requirements have been met.
Submitted By Reviewed By
Director of Parks and Assistant City Manager
Community Services
ITEM NO. 4.13
Page 1 of 2
DESCRIPTION:
Schaefer Ranch Holdings, LLC, is seeking City Council approval of the Partial Release of
Security associated with Schaefer Ranch Tract 6765 Park Improvements. Tract 6765 is a
residential development approved by the Planning Commission in August 1998. The Stage 2
Planned Development and Site Development Review were approved by the Planning
Commission in June 2006 and by the City Council in August 2006 respectively.
Tract 6765 includes Schaefer Ranch Park, which is situated on approximately 10.6 gross acres
of land, with 6.3 acres of flat usable park land. The site is located near the northwesterly
boundary of the City limits north of Interstate 580, south of the unincorporated area of Alameda
County, at the intersection of Dublin Boulevard and Schaefer Heights Road.
On January 16, 2007, via City Council Resolution No. 03-07, the City of Dublin and Schaefer
Ranch Holdings, LLC, entered into an improvement developer agreement that governed the
Park Improvements. The Agreement was amended on September 6, 2011, via City Council
Resolution No. 158-11. The developer is nearing substantial completion of the park construction
and the start of the 90-day maintenance period and is requesting a bond reduction.
The developer, Schaefer Ranch Holdings, LLC, provided a single bond covering both faithful
performance and payment of labor and materials. The bond is in the amount of $4,371,055
(Bond No. 104757051) for the Park improvements. The total construction improvements for
Phase 2 are more than 90% complete and, in accordance with the authority contained in
§66499.7 of the Government Code the bond may be reduced to an amount of $180,500.00
(200% of remaining costs of construction and fees). The developer will replace the existing bond
with two separate bonds; a new Payment Bond will be for $4,371,055 to secure the payment of
potential claims as provided by law, and the new Performance Bond will be reduced to
$180,500. After the Partial Release of Security, the remaining bonds will be sufficient to
complete the Schaefer Ranch Tract 6765 Park Improvements.
The City is only authorizing a bond reduction and is not approving or accepting these
improvements at this time. The risk of loss or damage to the improvements and the obligation to
maintain the improvements remain the sole responsibility of Schaefer Ranch Holdings, LLC until
all required improvements under the Agreement have been fully completed and accepted by the
City in accordance with the Agreement. Once the City formally accepts the Schaefer Ranch
Tract 6765 Park Improvements, Schaefer Ranch Holdings, LLC, will provide a Maintenance
Bond to replace the Performance Bond.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A copy of the Staff Report was sent to Schaefer Ranch Holdings, LLC.
ATTACHMENTS:
1. Resolution authorizing the City Manager to accept replacement bonds and approve a Partial
Release of the Performance Bond associated with Schaefer Ranch Park, Tract 6765 Park
Improvements
Page 2 of 2
RESOLUTION NO. XX - 13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
APPROVING PARTIAL RELEASE OF SECURITY ASSOCIATED WITH
TRACT 6765, SCHAEFER RANCH -PHASE 2 IMPROVEMENTS
(SCHAEFER RANCH HOLDINGS, LLC,
A CALIFORNIA LIMITED LIABILITY COMPANY)
WHEREAS
, Schaefer Ranch Holdings, LLC, a California Limited Liability Company, is
the subdivider of Tract 6765, filed on March 8, 2007, in Book 297 of Maps at Pages 1 -51; and
WHEREAS
, the City of Dublin and Schaefer Ranch Holdings, LLC, previously entered
into an Improvement Agreement that governed the Phase 2 Improvements on February 20,
2007, to improve said Tract in accordance with plans and specifications on file with the City
Engineer (Resolution 17-07); and
WHEREAS
, said Improvement Agreement is secured by one bond for faithful
performance and payment in the amount of $4,371,055.00 (Bond No. 104757051) for the park
improvements, issued by Travelers Casualty and Surety Company of America; and
WHEREAS,
the improvements for the park, are more than 90% complete in accordance
with said plans, and any approved modifications thereto, to the satisfaction of the City Engineer;
and
WHEREAS
, the work governed by this Improvement Agreement is currently under
construction and is not considered approved or accepted; and
WHEREAS
, the improvements are secured by one bond covering both faithful
performance and payment and Schaefer Ranch Holdings, LLC, has agreed to replace the
existing bond with separate bonds for Performance and Payment; and
WHEREAS
, the Performance Bond for Schaefer Ranch Park Improvements can be
partially released, in accordance with the authority contained in §66499.7 of the Government
Code of the State of California;
NOW, THEREFORE, BE IT RESOLVED
that the City Council authorizes the City
Manager to approve a reduction in the performance bond once conditions have been met by
accepting two replacement bonds for the original Performance and Payment Bond issued by
Travelers Casualty and Surety Company of America in the amount of $4,371,055.00 (Bond No.
104757051) for the Park Improvements.
BE IT FURTHER RESOLVED
that the replacement bonds shall include a new Payment
Bond in the amount of $4,371,055.00 and a new Performance Bond in the reduced amount of
$180,500.00.
.
ATTACHMENT 1
PASSED, APPROVED AND ADOPTED
this 16th day of July, 2013, by the following
vote:
AYES
:
NOES
:
ABSENT
:
ABSTAIN
:
______________________________
Mayor
ATTEST
:
_________________________________
City Clerk
ATTACHMENT 1