HomeMy WebLinkAboutItem 4.3 Schafer Rch Phase 2or
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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
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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