Staff Report.Accept Public Improvements for North 40 Phase 1_R2
PREPARED BY: James Watson
Senior Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney Finance Director, and Parks and
Public Works Director,
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/20/2023 ITEM NO: 10
DATE: June 9, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Notice of Completion and
Certificate of Acceptance for Specified Improvements Completed by
SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue
and Los Gatos Boulevard and Authorize the Town Clerk to Submit for
Recordation
RECOMMENDATION:
Authorize the Town Manager to execute a Notice of Completion and Certificate of Acceptance
(Attachment 1) for specified improvements completed by SummerHill N40 LLC (“SummerHill”)
for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and authorize
the Town Clerk to submit for recordation.
BACKGROUND:
On August 1, 2017, the Town Council adopted Resolution 2017-045 approving the construction
of a mixed use development consisting of 320 residential units, approximately 66,800 square
feet of commercial space, associated off-site improvements, and a vesting tentative map on
property zoned as part of North 40 Specific Plan.
On September 7, 2018, the Town Council approved the final map for Tract 10441 – North 40
Phase 1, accepting the dedications, and authorizing the Town Manager to execute a Subdivision
Improvement Agreement (“Agreement”) (Attachment 2), Landscape Maintenance Agreement,
Public Storm Drainage Conveyance Agreement, and Agreement for Private Improvements in the
Public Right of Way.
PAGE 2 OF 4 SUBJECT: Authorize the Town Manager to Execute a Notice of Completion and Certificate of Acceptance for Specified Improvements Completed by SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and Authorize the Town Clerk to Submit for Recordation DATE: June 9, 2023
BACKGROUND (continued):
On October 4, 2018, the Town executed the Agreement with SummerHill for the construction of
certain improvements required by various Conditions of Approval (“Required Improvements”)
stipulated in the Architectural and Site Plan Review process. The Agreement stipulated 18
“Plans”, identified as “a” through “r”, to be prepared by SummerHill to complete the Required
Improvements, and they complete repaving of certain sections of Lark Avenue and Los Gatos
Boulevard.
The Agreement required SummerHill to furnish to the Town security bonds to guarantee their
performance in executing the required work. Table 1 defines the plans that have been
completed at this time.
Table 1. Bonded Improvements Completed by Summerhill as of May 1, 2023 in Association
with the Phase 1 North 40 Project
Plan ID1 Description of Improvement Bond Value
d Los Gatos North 40 Tract 10441 In tract Rough Grading Plans
dated August 14, 2018 by Mackay & Somps $6,430,000
e Los Gatos North 40 Phase 1 Offsite Los Gatos Blvd Phase A
Improvement Plans dated July 27, 2018 by Mackay & Somps
$710,000 f Los Gatos Blvd & Walker Street Traffic Signal Plan dated
August 2018 by Fehr & Peers
g Walker Street & Los Gatos Blvd Phase A Signing and Striping
Plan dated August 2018 by Fehr & Peers
m
Los Gatos North 40 Offsite Lark Avenue Caltrans Right of Way
Improvement Plans dated March 12, 2018 including plans by
Mackay & Somps, Finn Design Group, Van Dorn Abed, Fehr &
Peers, and Giacalone
$799,000
r Los Gatos North 40 Phase 1 Off Site Storm and Sanitary Sewer
Improvement Plans dated September 13, 2017 $401,000
No ID North 40 Phase 1 Offsite Lark and Los Gatos Blvd - Pavement
Replacement $3,262,000
Note: As defined in the Subdivision Improvement Agreement between Town of Los Gatos and Summerhill. Plans a
through c, h though l, and n through q are not complete at this time and are not presented in this table.
PAGE 3 OF 4 SUBJECT: Authorize the Town Manager to Execute a Notice of Completion and Certificate of Acceptance for Specified Improvements Completed by SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and Authorize the Town Clerk to Submit for Recordation DATE: June 9, 2023
DISCUSSION:
Staff has observed the work associated with the items referenced in Table 1 and has deemed it
complete.
At the May 11, 2023 Town Council meeting, there were questions as to why the Town would
accept certain improvements, such as the paving of Lark Avenue and Los Gatos Boulevard when
construction of site improvements is still ongoing and could damage the new paving.
Following the May Council meeting, SummerHill provided staff two letters supporting their
request to release bonds associated with the paving on Lark Avenue and Los Gatos Boulevard.
In a letter dated June 30, 2022 (Attachment 3), SummerHill wrote to the Town affirming an
agreement between the staff and the developer to complete the final paving in summer 2022
instead of waiting for the completion of the project. Project Condition No. 82 (as documented
in December 2, 2020 Modified Conditions of Approval) requires the developer to construct the
final roadway paving improvements, “When the Parks and Public Works Director determines
that such work is to be complete at their sole discretion.”
On July 6, 2022 (Attachment 4), the Interim Parks and Public Work Director confirmed that the
paving improvements be completed prior to other Phase 1 work. The letter from the Town
stated, “The Town understands that this is not the typical timing for this final pavement overlay
work and agrees that the Town will not look to SummerHill to repair any damage done to this
section of roadway that is done by anyone other than SummerHill.”
Because of these letters, the staff is recommending the acceptance of the work associated with
the paving of Los Gatos Boulevard and Lark Avenue, and the release of the associated security
bonds.
The requested Council action would initiate a two-year warranty period for the accepted work.
SummerHill would provide the Town a two-year Guarantee and Warranty Security Bond in the
amount of 10 percent of the original value of the bonds. The Guarantee and Warranty Security
Bond will provide for the repair and/or replacement of defective materials and workmanship in
the completed improvements. This two-year Guarantee and Warranty Security Bond is
required to be submitted prior to the Town’s release of the Faithful Performance and Labor and
Materials bonds.
PAGE 4 OF 4 SUBJECT: Authorize the Town Manager to Execute a Notice of Completion and Certificate of Acceptance for Specified Improvements Completed by SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and Authorize the Town Clerk to Submit for Recordation DATE: June 9, 2023
CONCLUSION:
Staff is recommending that the Town Manager be authorized to execute a Notice of Completion
and Certificate of Acceptance for specified improvements completed for the Phase 1 North 40
Project.
FISCAL IMPACT:
The improvements within the public right-of-way are dedicated to and accepted by the Town
through the subdivision process and the approval of the final map. These improvements
become part of the Town’s infrastructure to be maintained after the expiration of the two-year
warranty period.
ENVIRONMENTAL ASSESSMENT:
An Environmental Impact Report (EIR) for the project was certified by Town Council on January
20, 2015.
Attachments:
1. Certificate of Acceptance and Notice of Completion
2. Subdivision Improvement Agreement
3. SummerHill Letter dated June 30, 2022
4. Town of Los Gatos Letter dated July 6, 2022