Title
Department of Transportation recommending the Board approve and authorize the Clerk of the Board to reduce Performance Bond SU1197230 pertaining to Malcolm Dixon Road Estates - Phase 2, TM 05 1401, from $666,352.83 to $86,963.28, representing 100% of the total remaining improvements. This amount guarantees against any defective work, labor done, or defective materials furnished.
(District 4)
FUNDING: Developer Funded.
Body
DISCUSSION / BACKGROUND
On October 22, 2024 (Legistar file 24-1721), the Board approved the Agreement to Make Subdivision Improvements for Class 1 Subdivision Malcolm Dixon Road Estates - Phase 2, TM 05 1401 (SIA) between the County and Diamante Development, LLC (Owner).
Department of Transportation's (Transportation) construction inspection staff has inspected the work and confirms the subdivision improvements are substantially complete according to the plans and specifications for this development and per the conditions of the SIA. The Owner has requested the Performance Bond for the project be reduced commensurate with the work completed, and Transportation agrees the reduction is appropriate. While most work on the project has been completed, the installation of stormwater detention basins was deferred to the building permit stage for each lot in the subdivision. Until all basins have been installed per the subdivision improvement plans, the project must remain active and cannot be accepted as complete.
The current bond amount of $666,352.83 does not represent the total cost of the project's improvements, as some work was completed under a previous Subdivision Grading Agreement. Developers are required to bond only for improvements that have not yet been completed. The total amount for all improvements is $869,632.83. Exhibit B to the SIA, “Certificate of Partial Completion of Subdivision Improvements,” reflects the total project cost estimate, as well as notations of work already completed at the time the agreement was executed and thus a reduction in the bonded amount. Because the Performance Bond is held at 10% of the total cost of improvements for the warranty period, no additional reductions will be allowed upon acceptance of the project as complete.
ALTERNATIVES
None; pursuant to the terms of the SIA between the County and Owner, upon receipt of a Certificate stating a portion of the public improvements agreed to be performed has been completed, and County inspection and approval of those improvements, the County is obligated to approve reduction of the bonds.
PRIOR BOARD ACTION
See Discussion / Background section above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no fiscal impact or change to Net County Cost associated with the requested Board action.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board will reduce Performance Bond SU1197230 to $86,963.28 and advise Transportation, attn.: Lindsay Tallman, and the Owner, Diamante Development, LLC, 1465 Malcolm Dixon Road, El Dorado Hills, CA 95762, that it has been reduced.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation