AgdaPkt 2018-07-23 Joint SA PFA - Laserfiche WebLink

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6.2.A. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 23, 2018 SUBJECT Final Acceptance — 601 Marshall Street RECOMMENDATION By motion, accept the construction improvements for 601 Marshall Street, and authorize the release of the bonds in accordance with the Subdivision Improvement Agreement BACKGROUND On June 27, 2016 the City Council approved the Improvement Agreement for the 601 Marshall Street Development. This development is an 8 -story, 124,220 square foot office building. 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, intersection improvements, and joint trench utility services. The total amount of improvements completed is estimated at $606,506.00. ANALYSIS The developer, 601 Marshall Street Owner, LLC, has completed the construction of improvements in accordance with the Agreement, the plans and specifications, the conditions of approval and tentative map, 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 $606,506.00 that can be released at this time. These bonds will be replaced by a maintenance bond in the amount of $60,650.60 (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 The City Council may choose not to accept the construction improvements and release bonds. However, staff does not recommend this, as it would not be in accordance with the provisions in the signed Agreement.