AgdaPkt 2017-03-27 Closed and Joint SA PFA

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REPORT To the Honorable Mayor and City Council From the City Manager March 27, 2017 SUBJECT Final Acceptance of Construction Improvements for the La Palma Subdivision RECOMMENDATION By motion, accept the construction improvements for the La Palma Subdivision and authorize the release of the funds in accordance with the Subdivision Improvement Agreement BACKGROUND On August 24, 2015 the City Council approved the Improvement Agreement for the La Palma Subdivision. The approved project consisted of the creation of a 12-lot subdivision with 12 single-family homes. 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, water, fire, sanitary sewer, storm drainage, sidewalk improvements, joint trench utility services, and a publicly accessible park and private road. The total value of improvements completed is estimated at $901,000.00. ANALYSIS The developer, La Palma Development, LLC, has completed the construction of improvements in accordance with the Agreement, the plans and specifications, the conditions of approval, and to the satisfaction of the City’s Engineering and Transportation Division. The developer provided a cash deposit in lieu of a faithful performance bond and a labor and material bond, in the amount of $901,000.00, a portion of which can be released after the six months in accordance with the agreement. In lieu of a maintenance bond the City will retain $90,357.70 (10%) of the original deposit for a period of one year. The cash retention 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 the deposit, although this would not be in accordance with the provisions in the signed Agreement. 6.2.A. - Page 1