HomeMy WebLinkAbout4.2 Schaefer Rch Unit Partial Releaseor
19 82
/ii � 111
DATE:
TO:
FROM:
STAFF REPORT
CITY COUNCIL
November 5, 2013
Honorable Mayor and City Councilmembers
Joni Pattillo City Manager""'
CITY CLERK
File #600 -60
SUBJECT: Approval of Partial Release of Security for Tract 8000, Schaefer Ranch Unit 2
(Schaefer Ranch Holdings, LLC)
Prepared by Jayson Imai, Senior Civil Engineer
EXECUTIVE SUMMARY:
Discovery Builders, dba Schaefer Ranch Holdings LLC, previously posted bonds to guarantee
the construction of improvements associated with Tract 8000, Schaefer Ranch Unit 2. As these
improvements are now more than 80% complete, the City may accept replacement bonds in the
amount of 200% of the estimated cost of the remaining items of work and release the original
bonds.
FINANCIAL IMPACT:
The replacement bonds will be adequate to guarantee the construction of remaining
improvements. Ownership of the improvements will remain with Schaefer Ranch Holdings LLC
until acceptance of the improvements by the City, which will likely occur in 2014.
RECOMMENDATION:
Staff recommends that the City Council adopt the resolution approving the Partial Release of
Security for Tract 8000, Schaefer Ranch Unit 2.
Submitted By
Director of Public Works
DESCRIPTION:
Reviewed By
Assistant City Manager
On October 2, 2012, Discovery Builders, dba Schaefer Ranch Holdings LLC, entered into an
Improvement Agreement with the City of Dublin to construct improvements associated with
Tract 8000, Schaefer Ranch Unit 2. Schaefer Ranch Holdings provided a Performance Bond
and a Labor & Materials Bond issued by Lexon Insurance Company, each in the amount of
$2,120,994 for in -tract street improvements. The street improvements are more than 80%
complete and, in accordance with authority contained in §66499.7 of the Government Code,
Page 1 of 2 ITEM NO. 4.2
these bonds may be reduced to an amount up to two hundred percent (200 %) of the estimated
cost to complete the remaining improvements. The City has accepted the Engineer's Estimate
of $64,650 for the remaining items of work Schaefer Ranch Holdings has provided bond riders
issued by Lexon Insurance Company in the amount of $129,300 to guarantee the construction
of remaining improvements. The amount of the bond riders is equal to two hundred percent
(200 %) of the estimated cost to complete the remaining items of work.
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
A copy of this staff report has been sent to Schaefer Ranch Holdings, LLC.
ATTACHMENTS: 1. Copy of Final Tract Map 8000
2. Resolution approving the Partial Release of Security for Tract 8000,
Schaefer Ranch Unit 2
Page 2 of 2
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RESOLUTION NO. — 13
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
PARTIAL RELEASE OF SECURITY FOR TRACT 8000,
SCHAEFER RANCH UNIT 2
WHEREAS, Discovery Builders, dba Schaefer Ranch Holdings LLC, the developer of
Tract 8000, previously entered into an Improvement Agreement with the City of Dublin dated
October 2, 2012 (Resolution No. 173 -12) to improve said Tract in accordance with plans on file
with the City Engineer; and
WHEREAS, the improvements for Tract 800 are more than 80% complete in accordance
with said plans, and any approved modifications thereto, to the satisfaction of the City Engineer;
and
WHEREAS, the Performance Bond and the Labor & Materials Bond can be partially
released, in accordance with the authority contained in §66499.7 of the Government Code of the
State of California;
NOW, THEREFORE, BE IT RESOLVED that:
1. The original Labor & Materials Bond issued by Lexon Insurance Company, in the
amount of $2,120,994 for in -tract improvements (Bond No. 1026493) be released
and replaced by a bond rider issued by Lexon Insurance Company in the amount
of $129,300 (Bond No. 1026493); and
2. The original Performance Bond issued by Lexon Insurance Company, in the
amount of $2,120,994 for in -tract improvements (Bond No. 1026493) be released
and replaced by a bond rider issued by Lexon Insurance Company in the amount
of $129,300 (Bond No. 1026493).
PASSED, APPROVED AND ADOPTED this 5th day of November 2013, by the following
vote:
YES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Mayor
City Clerk
GADEVELOPMENT, PRIVATE \Fallon Village (EDPO) \Tract 7855 - Neighborhood C3 \Reso tract bond reductions 4- 05- 11.doc