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HomeMy WebLinkAbout4.3 Schafer Rch Phase 2or 19 82 /ii � 111 DATE: TO: FROM: STAFF REPORT CITY COUNCIL October 1, 2013 Honorable Mayor and City Councilmembers Joni Pattillo City Manager""' CITY CLERK File #600 -60 SUBJECT: Partial Acceptance of Improvements for Tract 6765, Schaefer Ranch Unit 1 Phase 2 (Schaefer Ranch Holdings LLC) Prepared by Jayson Imai, Senior Civil Engineer EXECUTIVE SUMMARY: Discovery Builders, dba Schaefer Ranch Holdings LLC, has completed improvements within the future Schaefer Ranch Geologic Hazard Abatement District (CHAD) parcels for Tract 6765, Schaefer Ranch Unit 1 Phase 2 in accordance with their Tract Improvement Agreement. It is now appropriate for the City to accept these improvements. FINANCIAL IMPACT: Discovery Builders has provided a warranty bond (Bond No. 104757058 -W, in the amount of $3,293,775.00), issued by Travelers Casualty and Surety Company of America, to guarantee the improvements within the GHAD parcels for Tract 6765, Schaefer Ranch Unit 1, Phase 2 for one year. Prior to transferring the GHAD parcels to the Schaefer Ranch CHAD, Discovery Builders will be responsible for maintenance of the improvements. Once the GHAD parcels have been transferred from Discovery Builders to the Schaefer Ranch CHAD, all improvements within the GHAD parcels will be maintained by the Schaefer Ranch CHAD. There will be no future maintenance costs to the City. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution Partially Accepting the Improvements for Tract 6765 — Schaefer Ranch, Unit 1 Phase 2. Submitted By Director of Public Works Reviewed By Assistant City Manager Page 1 of 3 ITEM NO. 4.3 DESCRIPTION: Discovery Builders, dba Schaefer Ranch Holdings, LLC, entered into an Improvement Agreement with the City of Dublin on February 20, 2007, for the construction of street and site improvements associated with Tract 6765, Schaefer Ranch Unit 1 Phase 2. The improvements covered by this Improvement Agreement included those within the parcels designated for future transfer to the Schaefer Ranch Geologic Hazard Abatement District (CHAD). Originally, Discovery Builders provided Faithful Performance and Labor & Materials Bonds, each in the amount of $13,175,100.00 (Bond No. 104757058), issued by Travelers Casualty and Surety Company of America to guarantee construction of the improvements. On March 17, 2009, because Discovery Builders had completed over 75% of the required improvements, City Council approved the reduction of these bonds to an amount equal to twenty five percent (25 %) of the original bond amounts (City Council Resolution 27 -09). The developer provided a Decreased Rider for their Faithful Performance and Labor & Materials Bonds, each in the amount of $3,293,775.00 (Bond No. 104757058) to guarantee the construction of the remaining improvements for Schaefer Ranch Unit 1 Phase 2. Per the Plan of Control for the Schaefer Ranch GHAD and before Discovery Builders may transfer the GHAD parcels and the management and maintenance requirements of those parcels to the Schaefer Ranch CHAD, the improvements must be first be accepted by the City. Discovery Builders has recently completed the required improvements within the future Schaefer Ranch GHAD parcels associated with Tract 6765, Schaefer Ranch Unit 1 Phase 2 and has requested that the improvements be formally accepted. The developer is working with GHAD staff regarding transferring the parcels from Discovery Builders to the CHAD. Discovery Builders has submitted a Warranty Bond in the amount of $3,293,775.00, issued by Travelers Casualty and Surety Company of America (Bond No. 104757058 -W) to guarantee against construction defects within the future GHAD parcels for a one -year period. The Decreased Rider for the Faithful Performance and Labor & Materials Bonds currently on file with the City, each in the amount of $3,293,775.00, will remain in place to guarantee construction of the remaining improvements for Schaefer Ranch Unit 1 Phase 2. IMPROVEMENTS ORIGINAL AMOUNTS REDUCED AMOUNTS STATUS Performance Labor & Materials Performance Labor & Materials Bond Bond (Bond No.) (Bond No.) (Bond No.) (Bond No.) Schaefer Ranch $13,175,100 $13,175,100 $3,293,775 $3,293,775 To Unit 1 Phase 2 (104757058) (104757058) (104757058) (104757058) Remain In Place Prior to transfer of the GHAD parcels to the Schaefer Ranch CHAD, Discovery Builders will be responsible for maintenance of the improvements within the future GHAD parcels since Discovery Builders will still be the property owner. Once the GHAD parcels have been transferred from Discovery Builders to the Schaefer Ranch CHAD, all improvements within the Page 2 of 3 GHAD parcels will be maintained by the Schaefer Ranch CHAD. There will be no future maintenance costs to the City. NOTICING REQUIREMENTS /PUBLIC OUTREACH: A copy of this staff report has been sent to Schaefer Ranch Holdings, LLC. ATTACHMENTS: 1. Location Map 2. Resolution Partially Accepting the Improvements for Tract 6765 — Schaefer Ranch, Unit 1 Phase 2 Page 3 of 3 0j c5 LLI LU � v i� x z Q � V � � a rr rr �,(� /G��V JI t/ � r �O a i Q ¢ uj a Cl ore z_ c W d ¢ J W = C� 4 4 W O C1 / Z � / / W� U ¢ uj a ao r rr RESOLUTION NO. - 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN PARTIALLY ACCEPTING THE IMPROVEMENTS FOR TRACT 6765 — SCHAEFER RANCH, UNIT 1 PHASE 2 WHEREAS, Discovery Builders, dba Schaefer Ranch Holdings LLC, the developer of Tract 6765, previously entered into an Improvement Agreement dated February 20, 2007, Resolution No. 17 -07, with the City of Dublin, to complete street and site improvements associated with Tract 6765, including improvements within the future Schaefer Ranch Geologic Hazard Abatement District parcels, in accordance with plans on file with the City Engineer; and WHEREAS, said Improvement Agreement was secured by Faithful Performance and Labor & Materials bonds, each in the amount of $13,175,100.00 (Bond No. 104757058); and WHEREAS, the improvements within the future Schaefer Ranch Geologic Hazard Abatement District parcels are complete in accordance with said plans, and any approved modifications thereto, to the satisfaction of the City Engineer, and WHEREAS, Schaefer Ranch Holdings, LLC, has provided a warranty bond in the amount of $3,293,775.00, issued by Travelers Casualty and Surety Company of America (Bond No. 104757058 -W) to guarantee the improvements within the future Schaefer Ranch Geologic Hazard Abatement District parcels for a one -year period; and WHEREAS, Schaefer Ranch Holdings, LLC, has provided Decreased Riders for the Faithful Performance and Labor & Materials Bonds each in the amount of $3,293,775.00, issued by Travelers Casualty and Surety Company of America (Bond No. 104757058) to guarantee construction of the remaining improvements for Schaefer Ranch Unit 1 Phase 2; NOW, THEREFORE, BE IT RESOLVED that: 1. The Improvements within the future Schaefer Ranch Geologic Hazard Abatement District parcels for Tract 6765 are hereby approved and accepted subject to a one -year guarantee period; and 2. The submitted Bond Riders for Faithful Performance and Labor & Materials issued by Travelers Casualty and Surety Company of America, in the reduced amount of $3,293,775.00 (Bond No. 104757058), be accepted as security to guarantee construction of the remaining improvements within Tract 6765, Schaefer Ranch Unit 1 Phase 2. 1 vote PASSED, APPROVED AND ADOPTED this 1St day of October, 2013, by the following AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2 Mayor