HomeMy WebLinkAbout4.03 Jordan Rch Tr 8074 Partial Rel of Secor
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DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
February 18, 2014
Honorable Mayor and City Councilmembers
CITY CLERK
File #600 -60
Christopher L. Foss, Acting City Manager "
Approving Partial Release of Securities for On -Site Improvements with Tract
8074, Jordan Ranch
Prepared by Jayson Imai, Senior Civil Engineer
EXECUTIVE SUMMARY:
Mission Valley Properties, dba BJP -ROF Jordan Ranch LLC, recently constructed more than 80
percent of the required on -site improvements for Tract 8074 in accordance with the Tract
Improvement Agreement for Tract 8074. In accordance with the Subdivision Map Act, Mission
Valley Properties has requested a reduction of the securities provided for these improvements.
FINANCIAL IMPACT:
Mission Valley Properties, dba BJP -ROF Jordan Ranch LLC, has provided a Bond Rider to
attach to the original Faithful Performance Bond in the reduced amount to guarantee
construction of the remaining improvements.
Purpose 'Of Bond
Bond Number
Boni Rider
Amount of Reduced Bond,
Faithfull Performance
0582780
$ 982,352.50
Tract 8074 On -Site Improvements
Once the remaining improvements are completed and accepted by the City, the City will incur
maintenance costs for City- maintained improvements within Tract 8074. Maintenance cost
information will be provided at the time of improvement acceptance. The Homeowners'
Association will be responsible for maintaining the project - related landscape features within the
public right -of -way.
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution Approving Partial Release of
Securities for On -Site Improvements with Tract 8074, Jordan Ranch.
"ubmitted By
Public Works Director
Reviewed By
Acting Assistant City Manager
Page 1 of 2 ITEM NO. 4.3
DESCRIPTION:
Mission Valley Properties, dba BJP -ROF Jordan Ranch LLC, is required to construct certain
improvements with Tract 8074 in accordance with the Tract Improvement Agreement for Tract
8074, executed on June 5, 2012 with City Council Resolution No. 71 -12. At the time the City
and BJP -ROF Jordan Ranch LLC executed the Tract Improvement Agreement for Tract 8074,
the developer provided the following securities for the required improvements:
• Faithful Performance and Labor & Materials Bonds, each in the amount of $3,929,410.00,
issued by International Fidelity Insurance Company (Bond No. 0582780) for On -Site
Improvements with Tract 8074.
The required improvements are now more than 80 percent complete. Therefore, per the
Subdivision Map Act requirements outlined in §66499.7 of the Government Code of the State of
California, it is now appropriate for the securities provided for those improvements to be
reduced. The Performance Bond will be reduced to 25 percent of the full original bond amount,
which is equivalent to the amount of the Maintenance Bond that will be required after the City
accepts the completed improvements.
Per §66499.7(h) of the Government Code of the State of California, the Labor & Materials Bond
cannot be reduced or released until the required improvements have been accepted by the City.
Therefore, the Labor & Materials Bond amount will not be reduced at this time.
The developer has provided a Bond Rider to attach to the Faithful Performance Bond in the
amount of $982,352.50, issued by International Fidelity Insurance Company (Bond No.
0582780) to guarantee the construction of the remainder of these improvements.
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
Copies of this staff report have been provided to BJP -ROF Jordan Ranch LLC.
ATTACHMENTS: 1. Location Map
2. Resolution Approving Partial Release of Securities for On -Site
Improvements with Tract 8074, Jordan Ranch
Page 2 of 2
TRACT 8074 - JORDAN RANCH (PHASE 3)
VICINITY MAP
1 -31 -2014
RESOLUTION NO. -14
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING PARTIAL RELEASE OF SECURITIES FOR
ON -SITE IMPROVEMENTS WITH
TRACT 8074, JORDAN RANCH
(BJP -ROF JORDAN RANCH LLC)
WHEREAS, BJP -ROF Jordan Ranch LLC, the Developer of Tract 8074, previously
entered into a Tract Improvement Agreement, dated June 5, 2012, Resolution No. 71 -12, with
the City of Dublin to complete improvements for Tract 8074, in accordance with plans and
specifications on file with the City Engineer; and
WHEREAS, RJP -ROF Jordan Ranch LLC originally provided a Faithful Performance
Bond issued by International Fidelity Insurance Company in the amount of $3,929,410.00
(Bond No. 0582780), to guarantee said improvements; and
WHEREAS, the improvements for Tract 8074 are more than 80% complete; and
WHEREAS, the Faithful Performance Bond for the improvements at Tract 8074 can be
partially released, in accordance with the authority contained in §66499.7 of the Government
Code of the State of California, to an amount equal to 25% of the original bond; and
WHEREAS, BJP -ROF Jordan Ranch LLC, has provided a Bond Rider to be attached to
the Faithful Performance Bond, issued by International Fidelity Insurance Company, in the
amount of $982,352.50 (Bond No. 0582780), which is equal to 25% of the original bond
amount, to guarantee the construction of the remainder of the improvements.
vote:
NOW, THEREFORE, BE IT RESOLVED that:
1. The said improvements for Tract 8074 are hereby more than 80% complete; and
2. The original Faithful Performance Bond issued by International Fidelity Insurance
Company in the amount of $3,929,410.00 (Bond No. 0582780) for Improvements
with Tract 8074, be reduced to 25% the original amount; and
3. The submitted Bond Rider to the Faithful Performance Bond issued by
International Fidelity Insurance Company, in the reduced amount of $982,352.50
(Bond No. 0582780), be accepted as security to guarantee faithful performance
for construction of the remaining improvements with Tract 8074.
PASSED, APPROVED AND ADOPTED this 18th day of February, 2014, by the following
1
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor