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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 n Q I 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 r r s s r s s s J i APPROVED AS TO FOPJt Alto ey o:or\eelsc\rtoes C G -T p \ \� �• T g � r g� ,, r ••- `d•QG 1p P•G•`rcG*`�` F{ " `• ��S 0.+OOH as - rr ••+S. G` �� '`mac\`wiao. O•f, " dautp Edi iatt - �;Q� .� 5�1+ S g{�' �'\aid'S` •�. 5`',. l - .- � Geo (,• .�i C _- 90 ¢�•0� �" `i7�. � C� O c�\Ser�l�AF aNOa�a� \ sJM.T.tae fcc Hie �. As v 10 Ra � . m W = c G`ad •`C :a Y v .•\p -CG. 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I,rw w• •AI )ll.w• w.1 IMww• Cry 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- 7 C11 =Mq— C11 CLERK, P VOLES . R-8009 Aw 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 -Fea . �4. 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