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Agenda Report - October 7, 2020 C-13
AGENDA ITEM e-ß Cttv op Lopr Coulcru CouMUNrcATroN IM AGENDA TITLE: MEETING DATE: PREPARED BY: Adopt Resolution Authorizing City Manager to Execute Addendum No. 2 to lmprovement Agreement for Rose Gate ll, Unit No. 1, Tract No. 3896 October 7,2020 Public Works Director RECOMMENDED ACTION Adopt resolution authorizing City Manager to execute Addendum No. 2 to lmprovement Agreement for Rose Gate ll, Unit No. 1, Tract No. 3896. BACKGROUND INFORMATION: Rose Gate ll, Unit No. 1, is located west of Lower Sacramento Road and south of Lodi Avenue, as shown on Exhibit A. Unit No. 1 consists of 99 single-family, residential lots. The developer, Rose Gate 2 - Lodi, LLC (Developer), executed an lmprovement Agreement and Addendum No. 1 on October 22,2019, to cover the responsibility of constructing the required public improvements to serve the subdivision. The public improvements include streets, underground utilities, storm water basin, and other temporary storm drain and wastewater facilities as shown on the improvement plan set D189, which is on file with Public Works Department. Since then, Developer has successfully acquired the necessary easements to construct the master planned storm drain and wastewater facilities that connect the Rose Gate subdivision to Westgate Drive and Taylor Road. Developer is requesting to construct the master planned utilities in lieu of the temporary facilities as originally proposed prior to acquiring the necessary easements. Staff agreed that is a reasonable request and recommended to execute an addendum to the improvement agreement to coverthe construction of the master planned utilities. Developer has furnished the City with improvement plans, necessary agreements, guarantees, insurance certificates, and the required fees for the addendum. Portions of the cost to install certain offsite public improvements that benefit other properties may be eligible for reimbursement from others. lt is Developer's responsibility to request reimbursement and submit the appropriate information, per Lodi MunicipalCode Chapter S17.62. Staff recommends authorizing City Manager to execute Addendum No. 2 to lmprovement Agreement for Rose Gate ll, Unit No. 1, Tract No. 3896. FISCAL IMPACT There will be an increase in long-term maintenance APPROVED Manager K:\WP\DEV_SER\ADevelopments\Lod¡ Westside\Rose Gate ll Subdivision\lmprovement 'l\Addendum 02\CC_lmpAgmt_Addendum02_Unit l.doc 912212020 Adopt Resolution Authorizing City Manager to Execute Addendum No. 2 to lmprovement Agreement for Rose Gate ll, Unit No. 1, Tract No. 3896 October 7, 2020 Page 2 FUNDING AVAILABLE:Not applicable. Charles E. Swimley, Jr Public Works Director Prepared by Lyman Chang, City Engineer/Deputy Public Works Director CES/KTVlftc Attachments cc: City Attorney Magdich City Engineer / Deputy Public Works Director Chang Senior Civil Eng¡neer Nathan Assistant Civil Engineer Kiriu Senior Engineering Technician Wiman Rose Gate 2 - Lodi, LLC MCR Engineering K:\WP\DEV-SER\ Developments\Lodi Westside\Rose Gate ll Subdivision\lmprovement Agreement\Unit 1\Addendum 02\CC_lmpAgmt_AddendumO2_Unit 1.doc gtz2t2o2o Westgate Dr.Rose Gate IIUnit 1 © OpenStreetMap (and) contributors, CC-BY-SA Exhibit ARose Gate II - Unit No. 1Vicinity Map 0 0.1 0.20.05 Miles µ K:\WP\DEV_SERV\Developments\Lodi Westside\Rose Gate II Subdivision\Improvement Agreement\Unit 1\Addendum 02\C_Addend_ExhibitA.mxd Legend Proposed SD/WW Master Lines Proposed SD/WW Master Lines Rose Gate 2 - Unit 1 City Limits K:\WP\DEV_SERV\Developments\Lodi Westside\Rose Gate II Subdivision\Improvement Agreement\Unit 1\Addendum 02\ImpAgmt RoseGate _Addendum 02 1 9/18/2020 WHEN RECORDED, RETURN TO: City Clerk City of Lodi 221 West Pine Street Lodi, CA 95240 ADDENDUM NO. 2 TO THE IMPROVEMENT AGREEMENT for the PUBLIC IMPROVEMENTS of ROSE GATE II UNIT NO. 1 SUBDIVISION TRACT NO. 3896 THIS ADDENDUM is made and entered into by and between the CITY OF LODI, a California municipal corporation, hereinafter referred to as "City", ROSE GATE 2 - LODI, LLC, a California limited liability company, hereinafter referred to as "Developer" and DSS COMPANY, a California corporation, dba KNIFE RIVER CONSTRUCTION, hereinafter referred to as “Developer’s Contractor.” RECITALS: Developer and City entered into the Improvement Agreement of Rose Gate II Unit No. 1 Subdivision Tract No. 3896 (”Agreement”) dated October 22, 2019 and Addendum No. 1 to the Agreement dated October 22, 2019 (collectively attached hereto as Exhibit A and incorporated by this reference). Developer is responsible for construction and completion of public improvements, including all streets, highways or public ways, public utilities and facilities, and temporary storm drain and wastewater facilities which are a part of, or appurtenant to, the Rose Gate II Unit No. 1 Subdivision, hereinafter called "Project", all in accordance with, and as required by, the plans and specifications for all or any of said improvements in, appurtenant to, or outside the limits of Project, which plans and specifications are now on file in the office of and endorsed with the approval of the Public Works Director or his designee (“Public Improvements”). Developer is requesting to construct master plan storm water and wastewater facilities for the Project in lieu of construction the temporary facilities as indicated on the public improvement plan set D189. NOW THEREFORE, for and in consideration of the future acceptance of the dedications offered, and in order to insure satisfactory performance by Developer of Developer's obligations under State law and City Code, the parties agree as follows: 1. This document is an addendum to and made a part of the Agreement and Addendum No. 1. 2. The terms of the Agreement and Addendum No. 1 remain unchanged except as modified by this Addendum. 3. Developer agrees to constructed the public improvements, in addition to the public improvements shown on plan set D189, the master plans storm drain and waster facilities as shown on the public improvement plan set 020D011 which is on file with the Public Works Department. 4. Developer agrees to acquire all necessary easements for construction of the said master plan storm drain and wastewater facilities. 5. Developer agrees to increase contract securities in the amount of $620,300.00 to cover K:\WP\DEV_SERV\Developments\Lodi Westside\Rose Gate II Subdivision\Improvement Agreement\Unit 1\Addendum 02\ImpAgmt RoseGate _Addendum 02 2 9/18/2020 the additional work. The total securities amounts for the Project and the additional off-site improvements referenced herein to be as follows: Faithful Performance: $ 5,118,400 Labor Materials: $ 5,118,400 6. Developer agrees to pay the City the incurred cost related to this addendum as shown on the attached Billing Schedule (Exhibit B). 7. Developer agrees to complete all the required public improvements by June 30, 2021. 8. This Addendum shall run with the land and be binding on the Owner, its heirs, successors and assigns. 9. A copy of this Addendum shall be recorded in the office of the San Joaquin County Records, P. O. Box 1968, Stockton, California 95201-1968. 10. All notices herein required shall be in writing, signed by the authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties. Notices required to be given to City shall be addressed as follows: Charles E. Swimley, Jr. Public Works Director City of Lodi 221 West Pine Street P. O. Box 3006 Lodi, CA 95241-1910 Notices required to be given to Developer shall be addressed as follows: Thomas P. Doucette Managing Member Rose Gate 2 - Lodi, LLC 10100 Trinity Parkway Suite 402 Stockton, CA 95219 Notices required to be given to Developer’s Contractor shall be addressed as follows: DSS Company dba Knife River Construction 655 West Clay Street Stockton, CA 95206-1722 11. Authority The undersigned hereby represent and warrant that they are authorized by the parties they purport to represent to execute this Addendum. K:\WP\DEV_SERV\Developments\Lodi Westside\Rose Gate II Subdivision\Improvement Agreement\Unit 1\Addendum 02\ImpAgmt RoseGate _Addendum 02 3 9/18/2020 12. Execution In Witness Whereof, Developer, Developer’s Contractor, City have caused their names and corporate seals to be hereunto affixed. ROSE GATE 2 – LODI, LLC, a California limited liability company Dated: ________________________ By: ___________________________ THOMAS P. DOUCETTE Managing Member (CORPORATE SEAL) DSS COMPANY, a California corporation, dba KNIFE RIVER CONSTRUCTION Dated: ________________________ By: ___________________________ Name: Title: (CORPORATE SEAL) CITY OF LODI, a California municipal corporation Dated: ________________________ By: ___________________________ STEPHEN SCHWABAUER City Manager ATTEST: ______________________________ JENNIFER CUSMIR City Clerk (CORPORATE SEAL) APPROVED AS TO FORM: ______________________________ JANICE D. MAGDICH City Attorney jdm 1 BILLING SCHEDULE EXHIBIT B Development:Rose Gate II Unit No. 1 Addendum 02 - Off-site Sewer & Storm Gross Acreage:N/A Developer:Rose Gate 2 - Lodi, LLC No. of Units:N/A Engineer:MCR Engineering Date:9/4/20 Construction cost $620,300.00 DEVELOPER COST CREDITS ENGINEERING Plan Check Fee (5.0% of $100,000)ENGFEE $5,000.00 (3.5% of $200,000)ENGFEE 7,000.00 (2.5% of $320,300)ENGFEE 8,007.50 Inspection Fee (4.0% of $250,000)ENGINS 10,000.00 (3.5% of $370,300)ENGINS 12,960.50 Plan Check Fee Paid ENGFEE $16,873.00 Improvement Agreement Addenda ENGFEE $856.00 $856.00 ENGINEERING SUBTOTAL $43,824.00 $17,729.00 STREET SYSTEM Fees: Storm Water Inspection Fees PW03 1 LS @ $2,145.00 $2,145.00 (Charge for 1 year inspection) Charges for work by City Forces: Seal Coat NC07 400 SF @ $0.12 $48.00 STREET SYSTEM SUBTOTAL $2,193.00 $0.00 SEWER SYSTEM Fees: Charges for Work by City Forces:PW03 TV Inspection for Pipe Installation 1,673 LF @ $1.50 2,509.50 TV Inspection for Project Acceptance 1,673 LF @ $1.50 2,509.50 SEWER SYSTEM SUBTOTAL $5,019.00 $0.00 WATER SYSTEM Fees: Charges for work by City Forces:PW02 WATER SYSTEM SUBTOTAL $0.00 $0.00 STORM DRAIN SYSTEM Fees: Charges for Work by City Forces: TV Inspection for Pipe Installation PW03 1,962 LF @ $1.50 2,943.00 TV Inspection for Project Acceptance PW03 1,962 LF @ $1.50 2,943.00 STORM DRAIN SYSTEM SUBTOTAL $5,886.00 $0.00 ELECTRICAL SYSTEM To be billed separately by Electric Utility Department TOTAL AMOUNT OF BILLING SCHEDULE $56,922.00 $17,729.00 TOTAL DUE PRIOR TO IMPROVEMENT PLAN APPROVAL $39,193.00