HomeMy WebLinkAbout05/04/1993, C-8 - REDUCTION OF SUBDIVISION GUARANTEE DUE TO COMPLETED WORK UNDER TRACT NO. 2066 AT 843 MUTSUHITO AVEN MEETING DATE:
city of san .jiS OBispO ITEMay4HE 1993
COUNCIL AGENDA REPORTN .
FROM:-
Michael
ROM:-Michael McCluskey, Public Works Director
Prepared by: Gerald W. Kenny, Supervising Civil ngineer ,
SUBJECT:
Reduction of Subdivision Guarantee Due To Completed Work under Tract No. 2066 at 843
Mutsuhito Avenue (Villa Rosa Co., Subdivider)
RECOAIM ENDATION:
Adopt a resolution reducing the Faithful Performance Surety to $65,000 and the Labor &
Materials surety to $32,500 (after 35 days from filing a "Notice of Completion", to the
satisfaction of the City Attomey) for Tract No. 2066.
BACKGROUND:
This subdivision consists of 85 residential planned unit lots and 2 large vacant commercial lots.
The installation of public improvements are conditions of the subdivision agreement approved by the
City Council per Resolution No. 8009 (1992 Series) on May 5, 1992. The agreement is valid until
November 5, 1993. The subdivider has installed most of the public improvements and has requested
a proportional reduction of the existing Faithful Performance surety ($290,000 Letter of Credit) and
Labor & Materials surety ($145,000 Letter of Credit).
The remaining improvements consist of adjustment of manholes, utility vaults and valve wells,
portions of detached sidewalks, privately maintained landscaping and irrigation, street trees, a final
blanket of pavement on Lawrence Drive and seal coating all public streets. The estimated cost to
complete these items is $36,000, plus inflation and contingencies, or $40,000.00.
The agreement requires a warranty of 10 percent of the improvements to be retained for one (1) year.
Until all work is complete and the City has "accepted" the subdivision, the subdivider is responsible
for full maintenance of the public water, sewer and street systems that were installed. A warranty of
10% of all completed work is required to assure said full maintenance. Therefore, the total surety
required to be retained is:
1. Faithful Performance
Unfinished work $ 40,000
Retention for completed work (0.1 x $250,000) 25.000
Total $ 65,000
2. Labor & Materials
- (50% of$65,000) $ 32,500
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jlll city of san tuis oBispo
COUNCIL AGENDA REPORT
Tract No. 2066
Meeting of May 4, 1993
Page Two
The new Labor & Materials surety is subject to submittal of a recorded "Notice of Completion"
for the completed work, dated at least 35 days prior to release/reduction of this LAM surety, to
the satisfaction of the City Attorney. Otherwise, the existing $145,000 Labor & Materials surety
must be maintained until the project is completed.
The development of the units is being phased. All of the public improvements are complete and
functional, except as noted above. The subdivider opted to install the pavement in 2 phases to
accommodate interim construction traffic, and to provide for a "new looking" street when
complete. Detached sidewalks have also been deferred, in areas where buildings have not been
started, to avoid the possibility of replacing damaged sidewalks after completion of all of the
units.
The Subdivision Map Act provides for release of sureties for completed improvements, subject to
approval by the legislative body, or its designated officials.
ALTERNATIVES:
Option 1: Deny reduction of the sureties, if the Council finds that any
improvements have not been satisfactorily completed.
CONSEQUENCES OF NOT TAKING THE RECOMMENDED ACTION:
The subdivider would need to pay a larger premium to maintain a larger guarantee.
CONCURRENCES:
The Community Development Director, Acting Utilities Director and City Attorney concur with
the recommended action.
Attachments:
1 - Draft resolution
2 Map
3 - Resolution No. 8009(1992 Series)
4 Subdivision Agreement (including Fee & Bond Lists)
RESOLUTION NO. (1993 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
REDUCING THE SURETIES FOR TRACT NO. 2066
(VILLA ROSA COMPANY, SUBD.)
WHEREAS, the City Council approved a subdivision agreement on May 5, 1992 per
Resolution No. 8009 (1992 Series) for Tract 2066, and
WBEREAS, the subdivider.has completed most of the subdivision improvements and
has requested a release of the portion of the surety (Letters of Credit) on file which
guarantees.those improvements, and
WHEREAS, the subdivision agreement requires a 10 percent retention for one (1)
year after formal acceptance of the public improvements as a warranty for the
improvements.
NOW THEREFORE BE IT RESOLVED that the Faithful Performance and Labor
& Materials sureties are hereby reduced to:
1. Faithful Performance (FP)
Unfinished work $ 40,000
10 % retention (0.1 x $ 250,000) 25000
Total $ 65,000
2. Labor & Materials (L&NO
50% of 1., above $ 32,500 •
NOTE: THIS IS SUBJECT TO SUBMITTAL OF A RECORDED "NOTICE OF
COMPLETION° FOR THE COMPLETED WORK, DATED AT LEAST 35 DAYS
PRIOR TO REDUCTION OF THIS SURETY, TO THE SATISFACTION OF
THE CITY ATTORNEY.
- On motion of seconded by
and on the following roll call vote:
C-73
Resolution No. (1993 Series) -�
Page Two.
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of 1993.
MAYOR PEG PINARD
ATTEST:
CITY CLERK DIANE GLADWELL
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RESOLUTION NO. 8009- (1992 SERIES)
A RESOLUTION OF THE COUNCIL OF THHORTRACT Nam:2 OBI O
APPROVING THE FINAL MAP OR TRACT N0. 2066'
(VILLA ROSA COMPANY,
WHEREAS, the City Council made certain findings concerning Tract
2066 as contained in Resolution No. 7031 (1991 Series) ,, and
WHEREAS, an offsite public drainage easement and Common Driveway
Agreement have been submitted, and
WHEREAS, all other conditions required per Resolution No. 7031
(1991 Series) for Tract No. 2066 have been met and/or are guaranteed
under a Subdivision Agreement and Letters of Credit to guarantee
Faithful Performance and Labor & Materials, or are conditions of
building permits:
NOW THEREFORE BE IT RESOLVED that final map approval is hereby
granted for Tract No. 2066 and the Mayor is hereby authorized to '
approve the Subdivision Agreement and to accept the drainage easement
on behalf of the City.
On motion of Councilwoman Rasura seconded by Councilman Roalm3n
and on the following roll call vote:
AYES: Gmncilm®bers Kappa, Roalman, Pinard, Reiss, and Mayor Duoin
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 5th day of
May , 1992.
ATT MAYOR WN =M+1-
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C11 =Mq—
C11 CLERK, P VOLES .
R-8009
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A-45-92-CC
STANDARD SUBDIVISION AGREEMENT
THIS AGREEMENT is dated this 5th day of May by and between
Villa Rosa Co. , A California Partnership, S. E. Bell, Inc. , A California
Corporation as general partner, herein referred to as "Subdivider, " and
the CITY OF SAN LUIS OBISPO, herein referred to as the "City. "
RECITALS
REFERENCE IS HEREBY MADE to that certain proposed subdivision of real-
property in the City of San Luis Obispo, County of San Luis Obispo,
State of California, a description of which is shown on final map of
Tract No. 2066, City of San Luis Obispo, California, as approved by the
City Council on the 5th - day of Ua, , 1992 .
The Subdivider desires that said Tract No. 2066 be accepted and
approved as a final map pursuant' to the Subdivision Regulations of the
City of San huts Obispo (Title 17 of the San Luis Obispo Municipal
-. Code) , and
It is a condition of said regulations that the Subdivider agree to
install the improvements as set forth- on the plans therefore.
TERMS AND CONDITIONS:
In consideration of the foregoing, the Subdivider does hereby agree
to construct and install the following subdivision improvements in
accordance with said subdivision regulations, and. in accordance with
approved plans and specifications on file in the office of the City
Engineer, City of San Luis Obispo, to wit:
1. CURB, GUTTERS AND SIDEWALKS
2. STREET BASE AND SURFACING
3. WATER MAINS and SEWER MAINS, including sewer laterals to the property
line and- water services to the curb stop.
1 C—go,
4. DRAINAGE STRUCTURES -
5. ORNAMENTAL METAL ELECTROLIERS
6. ELECTRIC, GAS, TELEPHONE AND CABLE TELEVISION: In addition to the
inspection and approval of such facilities by the City, each public
utility shall be required to file a letter stating that the developer
has properly installed all facilities to be provided by him, and that
the said utility is prepared to provide service to residents upon
request.
7. ANY & ALL OTHER IMPROVEMENTS shown on plans or required by City
regulations.
All of the above facilities shall be installed in the locations
designated and to the plans and specifications on file and approved by
said City Engineer.
The lines and grades for all of said improvements shall be established
by the Subdivider in accordance with said approved plans and
specifications.
The Subdivider agrees that the work of installing the above
improvements shall begin within thirty (30) days from the date of
recording of the final map, and that the work shall be completed within
eighteen (18) months of said recording date, unless an extension has
been granted by the City, provided that.. if completion of said work is
delayed by acts of God or labor disputes resulting in strike action, the
Subdivider shall have an additional period of time equivalent to such
period of delay in which to complete such work. Any extension of time
hereunder shall not operate to release the surety on the Improvement
Security filed pursuant to this agreement. In this connection, the
surety waives the provisions of Section 2819 of the Civil Code of the
State of California.
2 c_g�,
No building permits will be issued nor occupancy granted after the
expiration date of the agreement until completion and acceptance of all
public improvements unless specifically approved by the City.
The Subdivider does also agree to comply with the conditions
established by the Planning Commission and/or the City Council and has
paid, or agrees to pay, the necessary fees as indicated on the attached
Exhibits 1 and 2.
The restoration of lost section corners and retracement of section
lines within the Subdivision shall be in accordance with Division 4,
Chapter 15 of the Land Surveyors Act of the Professions and Vocations
Code of the State of California, paragraph 8771 et seq.
The Subdivider attaches hereto, as an integral part hereof, and as
security for the performance of this agreement, an instrument of credit
or bond approved by and in favor of the City of San Luis Obispo, and
conditional upon the faithful performance of this agreement. Said
instrument of credit or bond is in the amount of $290.000.00, which is
the amount of the estimated cost of said public improvements. (See fee
and bond list, Exhibit 20, attached, for tabulation of all fees and
"bonds". ). Subdivider agrees- to remedy any defects in the improvements
arising from faulty workmanship or materials or defective construction
of said improvements occurring 'within twelve (12) months after
acceptance thereof. In accordance with Sections 66499.7 and 66499.9 of
the Government Code of the State of California, upon final completion
and acceptance of the work,' City. will release all but 10% of the
improvement security, that amount being deemed sufficient to guarantee
faithful performance by the Subdivider of his obligation to remedy any
3
defects in the improvements arising within a period of 'one year
following the completion and acceptance thereof.
Completion of the work shall be deemed to have occurred on the date
which the City Council shall, by resolution duly passed and adopted,
accept said improvements according to said plans and specifications, and
any approved modifications thereto. Neither periodic nor progress
inspections or approvals shall bind the City to accept said improvements
or waive any defects in the same or any breach of this agreement.
If the Subdivider fails to complete the work within the prescribed
time, --the Subdivider agrees that City may, at. its option, declare the
instrument of credit or bond which has been posted by Subdivider to
guarantee faithful performance, forfeited and utilize the proceeds to
complete said improvements, or city may complete said improvements and
_^
recover.. the full cost and expense thereof from the Subdivider or his
surety.
The Subdivider agrees to deposit with the City. a labor and materials
bond in the amount of 50% of the above described subdivision
improvements- in accordance with State law.
Said Subdivider has paid the sum of $3,750.00 from which fee the City
. will pay the salary and expenses of an inspector or inspectors to
inspect installation of said subdivision improvements, and for labor and
material costs by City to install signs and striping within the public
right-of-way as appropriate and certify that they have been completed
in accordance with the plans and specifications.
Title 16 of. the San Luis Obispo Municipal Code, entitled
"Subdivision, " all plans and specifications on file with said City
Engineer as a part of said Subdivision Map, and all other documents
4
1
filed with the City by the Subdivider and approved by the City Engineer
and Community Development Director, are hereby referred to for further
particulars in interpreting and defining the obligations of the
Subdivider under this agreement.
It is understood and agreed by and between the Subdivider and the
City hereto that this agreement shall bind the heirs, executors,
administrators, successors and assigns of the respective Parties to this
agreement.
It is agreed that the Subdivider will furnish copies of the successful
bidder's contract unit prices and total bid prices for all of the
improvements herein referred to.
IN WITNESS WHEREOF, this agreement has been executed by:
CITY OF SAN LUIS OBISPO SUBDIVIDER
Villa: Rosa Co. , .A California
Part a :. hip _
YOR S.E ell, Inc., A California
Co oration, as General Partner
ATTEST:
CIT CLERK
APPROVED AS TO FORM:
t 't rn
City gineer
hbZjsub-eWft20M
5
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EXHIBIT 1
TRACT 2066
SUBDIVISION AGREEMENT
1. The Subdivider shall pay water acreage fees of $23,200 (11. 6
Ac x $2000/Ac) at time of final occupancy of first unit per
Condition 10 of Resolution #7031 (1991 series) . (Lots 1-89)
2. The Subdivider shall pay a park-in-lieu fee of $151.991.00 at
time of final occupancy of first unit per cond 10 of
Resolution #7031 (1991 series) ) .
3. The Subdivider shall pay sewer lift station fee for the
Rockview/Johnson system of $153.55 (0. 37 acres x $415/Ac) ,
payable as noted in 2 above.
4. The Subdivider shall install all on-site driveways,
nonstructural parking improvements and utilities shall be
installed as subdivision improvements.
5. The Subdivider shall install street trees along Broad St. ,
Lawrence, Victoria and Mutsuhito per condition 17 of
Resolution #7031 (1991 series) to the approval of the
Community Development Department and Public Works Department.
6.
The.- subdivider- has paid or posted surety to cover traffic
-r, -impact fees as prescribed in Resolution #7031 (1991 series)
as follows:
A. : Traffic & Circulation Fees - Paid as indicated
1. Traffic Signal - Lawrence Drive/Broad Street r
0.25 x $ - 125, 000 = $31,250.00
2. Second Eastbound Left Turn Lane - Broad/Orcutt
174/13200 x $ 35,000 = $ 460. 00
3. Orcutt Road Widening
174/13200 x $ 400,000 = $ 5,273. 00
4. Orcutt RR Grade Separation
174/13200 x $4, 000,000 = $52,727.00
B. Air Quality
1. Transit Facility
0.25 x $ 10,000 = $ 21500.00
$1,000 to be deposited in cash. The remainder in the form of
an Irrevocable Commitment of Funds, Assigned Account or Bond.
The $1,000 will be used in conjunction with a special traffic
signal study.to be administered by City.
1 71
EXHIBIT 2 i
TRACT 2066
FEE AND BOND LIST
"Bonds" - Improvements:_ Form/Surety Received /
Amount �-�
1. Faithful Performance $290,000.00 Letter of Credit 4/22/92 JK
100$ Public Improve & 158 Infl. & Contingency (MSS 7-184)
Rough Grading/Erosion Control000.00 Letter of Credit 4/8/92
3/2, pO6 (MSB 7-185)
2. Labor & Materials $145,000.00 Letter of Credit 4/22/92 JR
508 of Faithful Perf (above)
3. Monumentation Trust Deposit $ 1,200.00 otter 186}of edit 4/22/92 JK
Fees-(to be deposited prior to final map)
A. Traffic Impact Fees
1. Traffic Signal - Lawrence Drive/Broad Street
0.25 x $ 125,000 S 31,250.00 oe/ oNT
$ 11000.00 - Cash Com# f4'YC 4/22/92
$�3 0,250.00 Letter of Credit 4/22/92 JK
(MSB 7-187)
2. Second Eastbound Left Turn Lane 7 Bro 6/0.00 tt
174/13200 x $ 35,000 $
_ 3... Orcutt Road Widening 5,273.00
r 174/13200 x $
400,000 = $ ^\
4. Orcutt RR Grade Separation
174,13200 x $4,000,000 = $ 52,727.00
S. Transit Facility
0.25 x $ 10,000 = { S 21500.00
B. Plan Checking and Inspection Fees 2,643.00 Paid 12/91
1. Plan Checking Fee . , $
2. Construction Inspection Fee
a. Rough Grading & Erosion S 4,108.00 Paid 4/8/92
b. Public Improvements �$� 31750.00 - Cash CA-#1T16 4/22/92
1 0,, 47-0/.
Future Fees-.
Fees to be paid with building occupancy release per Condition 30 of Resolution #7031 (1991
series). Note: Wastewater (Sewer) and Water impact fees are not applicable due two ' _- _
vesting map status prior to enaction of Ordinance #1200 (1991 series)
4. Water acreage fee $ 23,200.00 050-0017-071-020
11.6Ac x $2000/Ac
S. Sewer Lift Station Fee $ 153.55 052-0017-074-030
0.37 Ac x $415/Ac
6. Park-in-lieu fee $151,991.00
ne�ossaa
IMS
B 43691000 $ 4750 . 00