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HomeMy WebLinkAboutAGENDA REPORT 2018 0620 CCSA REG ITEM 10L CITY OF MOORPARK, CALIFORNIA Item: 10.L. City Council Meeting of June 20, 2018 ACTION Approved staff recommendation. Adopted Reso No. 2018-3726 _ BY M. Benson L. Consider Acceptance of Public Street and Drainage Improvements and Surety Bond Exoneration (Bond Nos. 104324725, K0885094A, and SU1100421) for Shea Homes LP, Tract 5133 and Tract 5425. Staff Recommendation: 1) Approve Resolution No. 2018-3726 accepting completion of public street and drainage improvement work for Tract 5133 and Tract 5425; 2) Authorize the City Clerk to exonerate or reduce the performance and payment surety bonds as shown in the agenda report; 3) Require the City Engineer to file a copy of the City Engineer written acceptance of the private street improvements for Tracts 5133 and 5425 with the City Clerk for the applicable Subdivision Improvement Agreement files; and 4) Authorize the City Clerk to fully exonerate the referenced surety bonds for Tract 5425 one year after City Council approval of the resolution accepting completion of the public improvements, upon written confirmation from the City Engineer that no warranty work is required. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Sean Corrigan, City Engineer/Public Works Director DATE: 6/20/18 Regular Meeting SUBJECT: Consider Acceptance of Public Street and Drainage Improvements and Surety Bond Exoneration (Bond Nos. 104324725, K0885094A, and SU1100421) for Shea Homes LP, Tract 5133 and Tract 5425 BACKGROUND Storm street and drainage improvements related to Tracts 5133 and 5425, south of Los Angeles Avenue, have been completed by Shea Homes LP. DISCUSSION Shea Homes LP has requested the exoneration of certain surety bonds for Tracts 5133 and 5425. The surety bonds were required by the City’s Municipal Code and the subdivision improvement agreements to guarantee the construction of the required improvements. All public and private improvements that were guaranteed by the surety bonds listed below are now complete. Tract 5133 improvements were completed in 2013, Tract 5425 in November 2017, and Haul Route resurfacing for both tracts in February 2018. There are no open Mechanic Lien Claims against Shea Homes LP for the completed improvements. City Council reduced the Tract 5133 bond amount to 25% on April 21, 2010 because the improvements were largely complete at that time but for final cap paving. Staff recommends that these surety bonds be exonerated or reduced to 10% as noted below for the one-year warranty period. Full exoneration will occur one year after City Council approval of the reduction upon written confirmation from the City Engineer that no warranty work is required, per Section 16.36.010.C of the Moorpark Municipal Code. SURETY TYPE BOND NUMBER ORIGINAL BOND AMT. PRIOR AUTHORIZED REDUCTION AUTHORIZED ACTION OF 6/20/2018 Tract 5133 Performance & Payment (Labor & Materials) Grading, Storm Drain & Streets 104324725 $2,508,630.12 Reduce to 25% Exonerate Tract 5425 Performance & Payment (Labor & Materials) Grading, Storm Drain & Streets K0885094A $1,734,948.93 None Reduce to 10% Tract 5425 Performance & Payment (Labor & Materials) Haul Route Asphalt Overlay SU1100421 $100,249.19 None Reduce to 10% Item: 10.L. 915 Honorable City Council 6/20/2018 Regular Meeting Page 2 Consistent with the Subdivision Improvement Agreements for the two tracts, the City Engineer was authorized to accept as complete the private improvements that are to be owned by individual property owners or a private community association and not dedicated or owned by the City or other public entity. Consistent with the Subdivision Improvement Agreement for Tract 5425 and Section 16.36.010.C of the Moorpark Municipal Code, the 10% remaining surety amount for the performance and payment sureties will be retained for the warranty period and will not be fully exonerated until one year after City Council approval of completion of public improvements. Additionally, as a requirement of the Subdivision Improvement Agreement for Tract 5425, the subdivider is required to maintain the construction insurance policies during the warranty period, and the Subdivision Improvement Agreements for both Tracts include indemnification language. FISCAL IMPACT None. STAFF RECOMMENDATION 1. Approve resolution accepting completion of public street and drainage improvement work for Tract 5133 and Tract 5425. 2. Authorize the City Clerk to exonerate or reduce the performance and payment surety bonds as shown in the agenda report; 3. Require the City Engineer to file a copy of the City Engineer written acceptance of the private street improvements for Tracts 5133 and 5425 with the City Clerk for the applicable Subdivision Improvement Agreement files; and 4. Authorize the City Clerk to fully exonerate the referenced surety bonds for Tract 5425 one year after City Council approval of the resolution accepting completion of the public improvements, upon written confirmation from the City Engineer that no warranty work is required. Attachment: Resolution 2018-____ 916 Attachment 1 RESOLUTION NO. 2018- ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, ACCEPTING PUBLIC STREET AND DRAINAGE IMPROVEMENTS MADE BY SHEA HOMES LIMITED PARTNERSHIP (LP) FOR TRACTS 5133 AND 5425 AS COMPLETE WHEREAS, the City Council approved Tract 5133 and Tract 5425, which allowed Shea Homes LP to construct housing and related improvements within the City of Moorpark; and WHEREAS, the Tract 5133 and Tract 5425 approved entitlements, including but not limited to conditions of approval for the tentative tract maps and the subdivision improvement agreements, required construction of certain private and public street and drainage improvements within the tracts; and WHEREAS, Section 16.36.010 of the Municipal Code provides that when the City Engineer determines that the required improvements have been fully completed, the City Engineer will recommend to City Council that the public improvements be accepted by the City and that the surety be reduced to ten percent for a one-year warranty period; and WHEREAS, the City Engineer/Public Works Director has determined that Shea Homes LP has completed the required private and public street and drainage improvements and has recommended that the City Council accept the public improvements, fully exonerate the performance and payment surety for Tract 5133 and reduce the performance and payment sureties for Tract 5425 to ten percent for the warranty period. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Moorpark hereby accepts the public improvements, including street and drainage improvements required for Tracts 5133 and 5425 as complete. SECTION 2. The City’s acceptance of the public improvements as complete does not limit the City’s remedies under general construction defect law, and the subdivider shall be responsible for the care, repair, and maintenance of the subdivision improvements until the expiration of the required one-year guarantee and warranty period for both Tracts 5133 and 5425. 917 Resolution No. 2018-___ Page 2 SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 20th day of June, 2018. __________________________________ Janice S. Parvin, Mayor ATTEST: ___________________________________ Maureen Benson, City Clerk 918