AgdaPkt 2016-07-25 Closed and Joint SA PFA

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REPORT To the Honorable Mayor and City Council From the City Manager July 25, 2016 SUBJECT Final Acceptance – Construction Improvements for Crossing 900 |Block 2| RECOMMENDATION By Motion, accept the construction improvements for Crossing 900 |Block 2|, and authorize the release of the bonds in accordance with the Subdivision Improvement Agreement BACKGROUND On July 22, 2013 the City Council approved the Disposition and Development Agreement for the Block 2 development which consisted of approximately 300,000 square feet of office space, 5,075 square feet of retail space (planned as a restaurant space), and 904 parking spaces. The Construction Permit, approved and issued by the City, required the developer to make on-site and off-site improvements. Improvements include but are not limited to, grading and drainage, paving, water, fire, sanitary sewer, storm drainage, and joint trench utility services. The total amount of improvements completed is estimated at $510,400. ANALYSIS The developer, Redwood City Partners, LLC, has completed the construction of improvements in accordance with the Agreement, the plans and specifications, and to the satisfaction of the City’s Engineering & Transportation Division. The developer provided a faithful performance bond and a labor and material bond, each in the amount of $510,400 that can be released at this time. These bonds will be replaced by a maintenance bond in the amount of $51,040 (10%), which will be held for a period of one year. The maintenance bond is a warranty in the event any of the improvements fail within a one-year period. ALTERNATIVES Council may choose not to accept the construction improvements and release bonds which would not be in accordance with the provisions in the signed Agreement. FISCAL IMPACT There is no fiscal impact to the City as a result of this action. 6.2.A. - Page 1