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HomeMy WebLinkAboutItem 7.2 Schaefer Rch Pk Tr 6765 STAFF REPORT CITY CLERK File #600-60 CITY COUNCIL DATE:October 1, 2013 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJECT: Schaefer Ranch Park – Acceptance of Park Improvements and Parcels T-1, T-2 and W of Tract 6765 within Schaefer Ranch Prepared by Paul McCreary, Parks and Community Services Director and Doug Rooney, Parks and Facilities Development Coordinator EXECUTIVE SUMMARY: The City has an Agreement with Schaefer Ranch Holdings, LLC that obligates the developer to construct and dedicate the improvements and land for Schaefer Ranch Park. The park was substantially completed in June 2013 and the 90-day maintenance period commenced. The maintenance period was extended due to some problems with plant and turf establishment. The conditions are improving and the maintenance period is nearing completion. Staff is seeking authorization for the City Manager to accept the improvements and open the park to the public pending completion of the remaining remediation work and submission of the necessary project closeout documents. Additionally, a date will need to be chosen for the park dedication event. FINANCIAL IMPACT: Schaefer Ranch Holdings, LLC will provide a Warranty Bond in the amount of $1,092,764 to guarantee the park improvements for one year following final acceptance of the park. Sufficient funding was allocated in the Fiscal Year (FY) 2013-14 budget to assume maintenance and operations of the park, and conduct the dedication event. RECOMMENDATION: Staff recommends the City Council take the following actions: 1. Authorize the City Manager to negotiate and execute an agreement with Schaefer Ranch Holdings, LLC prior to acceptance of the project for hydro-seeding and maintaining the slopes and any other work being deferred to the warranty period; and 2. Adopt the Resolution authorizing the City Manager to accept the final park improvements and to accept the dedication of Parcels T-1, T-2 and W of Tract 6765, pending completion of the remaining minor remediation work and submission of the necessary project closeout documents by Schaefer Ranch Holdings, LLC; and 3. Select the preferred date for the park dedication event. ITEM NO. 7.2 Page 1 of 3 Submitted By Reviewed By Director of Parks and Assistant City Manager Community Services DESCRIPTION: The City has an Agreement with Schaefer Ranch Holdings, LLC (SRHLLC) that was adopted on January 18, 2007, and subsequently amended on September 6, 2011, that obligates SRHLLC to construct Schaefer Ranch Park and dedicate it to the City. On February 20, 2007, the City Council adopted Resolution 17-07 approving the Final Map for Tract 6765, which dedicated three parcels (T1, T2 and W) to the City exclusively for public park purposes. The City deferred acceptance of the three parcels until the requirements in the Park Improvement Agreement have been fulfilled. The park construction began in the fall of 2012, was substantially completed in June 2013, and the 90-day maintenance period commenced at that time. The maintenance period has been extended due to some problems with plant and turf establishment. Project Status and Acceptance On September 23, 2013, City Staff conducted a walkthrough of the park with SRHLLC and subsequently provided an updated status to SRHLLC of the remaining work to be completed and the documentation items necessary for the City to accept the park. The conditions are improving, and the maintenance period is nearing completion with the exception of some minor remediation work and the submission of the necessary project close out documents by SRHLLC. Staff is seeking authorization for the City Manager to accept the improvements and land once the City Manager concludes the work is complete and all project approvals and documentation have been received, and SRHLLC’s execution of an agreement to complete certain deferred improvements for hydro-seeding (as detailed below). Considering the minor nature of the remediation work, authorizing the City Manager to accept the park will allow the City to open the park in a timelier manner once the work is completed and documentation submitted, rather than having to wait for a future City Council meeting. There is one remaining item of work that cannot be completed properly prior to acceptance; however it can be corrected without impacting the park opening. The slopes adjacent to the developed park area were hydro-seeded during construction with native grasses that did not establish properly and have been rejected by the City. Therefore Staff recommends authorizing the City Manager to negotiate and execute an agreement between the City and SRHLLC to have SRHLLC hydro-seed the slopes prior to October 31, 2013 and maintain the slopes until the grasses have established per the construction specifications. The agreement will SRHLLC to provide a performance bond to cover the value of the remaining work. Work Guarantee Agreement and Bond Reduction Per the Park Improvement Agreement, SRHLLC must guarantee all work done on the park to be free of defects of workmanship and materials for a period of one year after final acceptance of the entire work by the City. For any items that have been corrected, the guarantee period will Page 2 of 3 automatically be extended for an additional year to insure that the defects have actually been corrected. The Park Improvement Agreement required SRHLLC to have a Faithful Performance Bond and a Labor and Materials Bond each in the amount of $4,371,055. On July 16, 2013 the City Council authorized the City Manager to approve a partial reduction of the Performance Bond to the amount of $180,500 which the City presently holds. The City also holds the $4,371,055 Labor/Materials Bond. Upon City Manager acceptance of the project, Staff will file a notice of completion with Alameda County Clerk and the City will release the remaining bonds in accordance with the authority contained in Section 66499.7 of the Government Code of the State of California. The Park Improvement Agreement requires the developer provide surety during the maintenance period. As is standard with other developer built public improvements, SRHLLC will need to provide a Warranty Bond in the amount of $1,092,764.00 which is 25% of the value of the improvements, to guarantee the work during the one-year warranty period. Park Dedication Event Date The City Council is being asked to set a date for the park dedication event. Staff is proposing Saturday, November 2, from 10:00 a.m. to 12:00 noon. Although the City is already hosting the Hometown Heroes event that day at 2:00 p.m. at the Senior Center, the Parks and Community Services Department has sufficient staffing to coordinate the two events in one day. This is similar to the Positano Hills Park dedication, when the City’s Car Show was scheduled in the afternoon following the dedication. Actually having two events on the same day led to cross promotion of the two and enhanced attendance at the afternoon event. The event could also be held on Saturday, October 26 if necessary. However Staff recommends November 2 as it will allow more contingency time to ensure the necessary remediation and submission of paperwork has been completed. Additionally the annual Harvest Faire is scheduled at the Heritage Park that day, which is a larger event with numerous activities, and therefore would be more challenging for Staff to coordinate two events in one day. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of the Staff Report was sent to SRHLLC. A notice of completion will be filed with Alameda County following acceptance of the park by the City Manager. ATTACHMENTS: 1. Resolution authorizing City Manager to accept the park improvements and accept the dedication of Parcels T-1, T-2 and W of Tract 6765, pending completion of the remaining minor remediation work and submission of the necessary project closeout documents Page 3 of 3 RESOLUTION NO. XX - 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * * * AUTHORIZING THE CITY MANAGER TO ACCEPT THE SCHAEFER RANCH PARK IMPROVEMENTS AND TO ACCEPT THE DEDICATION OF PARCELS ‘T-1’, ‘T-2’ AND ‘W’ OF TRACT 6765, PENDING COMPLETION OF THE REMAINING MINOR REMEDIATION WORK AND SUBMISSION OF THE NECESSARY PROJECT CLOSEOUT DOCUMENTS BY SCHAEFER RANCH HOLDINGS, LLC WHEREAS, Schaefer Ranch Holdings, LLC previously entered into an Agreement with the City of Dublin to dedicate the land and develop the improvements for Schaefer Ranch Park; and WHEREAS, said improvements have been substantially completed in accordance with the approved plans and specifications, and any approved modifications thereof, to the satisfaction of the Parks and Community Services Director; and WHEREAS, there is minor remediation work and the submission of the proper project closeout documents that must be completed by Schaefer Ranch Holdings, LLC, prior to acceptance of the park by the City; and WHEREAS, there is minor remediation work to the native grass plantings on the slopes adjacent to the developed park land that can be completed following the park acceptance without impacting park operations and will require a separate agreement (“the Deferred Improvement Agreement”) to complete the work following project acceptance; and WHEREAS, Schaefer Ranch Holdings, LLC originally provided Faithful Performance and Labor and Materials Bonds issued by Travelers Casualty and Surety Company of America, each in the amount of $4,371,055.00 (Bond No. 104757051), to guarantee said Schaefer Ranch Park Improvements; and WHEREAS, on July 16, 2013 the City Council adopted Resolution 125-13 authorizing the City Manager to approve a reduction in the Faithful Performance Bond (Bond No. 104757051) once conditions have been met for which the City has received the Decrease Rider for the Faithful Performance Bond; and WHEREAS, the remaining Faithful Performance and the Labor and Materials bonds that guaranteed the improvements can be released, in accordance with the authority contained in Section 66499.7 of the Government Code of the State of California, and replaced with a Warranty Bond in the amount of $1,092,764 to guarantee the completed work for a one year period following acceptance; and WHEREAS, the Final Map for Tract No. 6765, in the incorporated territory of the City of Dublin, County of Alameda, State of California, was accepted by the City Council on February 20, 2007, all in accordance with the provisions of the Subdivision Map Act of the State of California and the City of Dublin Municipal Code; and WHEREAS, as part of the Final Map, Schaefer Ranch Holdings, LLC made an offer of dedication to the City following improvement of Parcels T-1, T-2 and W of Tract 6765, which encompasses the park area; and WHEREAS, it is in the interest of the public to accept the park and open it for use in a timely manner. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin authorizes the City Manager to accept the park improvements, subject to the aforesaid one-year guarantee, after the work has ATTACHMENT 1 been completed to the City Manager’s satisfaction, excepting the work subject to the Deferred Improvement Agreement, the Developer has executed the Deferred Improvement Agreement, and all project closeout documentation has been received to the satisfaction of the City. BE IT FURTHER RESOLVED following acceptance of the completed park improvements by the City Manager that: 1. Staff will file a notice of completion with Alameda County Clerk. 2. The Labor and Materials Bond issued by Travelers Casualty and Surety Company of America in the amount of $4,371,055.00 for the Schaefer Ranch Park Improvements (Bond No. 104757051) be released in accordance with the Civil Code commencing with Section 8410; and 3. The remaining Performance Bond issued by Travelers Casualty and Surety Company of America in the amount of $180,500 for the Schaefer Ranch Park Improvements (Bond No. 104757051) be released; and 4. The said Parcels ‘T-1’, ‘T-2’ and ‘W’ of Tract 6765 as offered for dedication to the public upon completion of the park improvements will be hereby accepted; and that the Clerk of this City Council is hereby directed to transmit a certified copy of this Resolution to the County Recorder for filing . st PASSED, APPROVED AND ADOPTED this 1 day of October, 2013, by the following vote: AYES : NOES : ABSENT : ABSTAIN : ______________________________ Mayor ATTEST : _________________________________ City Clerk ATTACHMENT 1