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HomeMy WebLinkAbout05-22-1981 CITY COUNCIL AGENDACtrl 1 OF Sl1R 111JGA Initial: AGENDA BILL NO. Dept. Hd. DATE: May 20, 1981 C. Atty. I'AR'n V : Public Works C. Mgr. SUBJECT: FINAL ACCEPTANCE SDR 1295 - Glenmont Drive (Fardal, Grutchfield & Politi, Inc.) --------------------------------------------------------------------------------------- Issue Summary All improvements required of the subject Building Site Approval have been satisfactorily completed. Reconmendation Authorize release of the attached described bond. • Fiscal Impacts None Exhibits /Attachm-nts 1. Memo describing bond Council Action 9 lt� 1, ���`• iryJ 13777 FF2UI'I'VALE AVENUE SAI2A7'0GA, CALII'OIt.NIA 95070 :' ?'U - •. (406) 867 -3438 MEMORANDUM TO: City Manager DATE: May 7, 1981 FROM: Director of Public Works SUBJECT: Tract SDR 1295 (Final Acceptance) Location: Glenmont Dr. All improvements required of SDR 1295 and agreed to in the Building Site Approval' Agreement dated ept.,27, 1978 have been satisfactorily completed. — Therefore, I recommend the improvement security posted to guarantee that agreement be released. The following information is included for your use: 1. Developer: Fardal, Grutchfield & Politi, Inc. • Address: 1340 Saratoga /Sunnyvale Rd., #105 San Jose, Ca. 2. Improvement Security: Type: Labor & Materials - Amount: $33,338.40 Issuing Co.: The Ohio Casualty Ins. Co. Address: 100 S. Ellsworth Ave., San Mateo, Ca. 94401 Receipt, Bond or. Certificate No.: 2- 063 -495 3. Special Remarks: Ro rt S. Shook • RSS /dsm Q -- w i M50 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 ® (408) 867 -3438 June 10, 1981 Fardal, Grutchfield & Politi, Inc. 1340 Saratoga /Sunnyvale Road, #105 Sar ,loge, California 95129 Re: SDR 1295 Gentlemen: The Director of Public Works reported to the City Council at its May 20, 1981, meeting that all imppoeements required for SDR 1295, have been satisfatboa=ity completed. The City Council, therefore, approved the release of your bond. The bonding company is being notified by copy of this letter. /da cc: The Ohio Casualty Ins. Co. Very truly yours, 9 Grace E. Cory L' Deputy City Clerk ; CITY OF SARRIOGA Initial AGENDA BILL NO. �(� Dept. I DATE: May 20, 1981 C. Attu &PATIITZQVT: Public Works C. Mgr. --------------------------------------------------------------------------- - - - - -- SUB,J'ECT. FINAL ACCEPTANCE FOR SDR 1307 - Park Place, Saratoga Federated Church Issue Suninary The one year maintenance period for the subject building site has expired and all deficiencies have been corrected. At this time, the City must take action to accept the streets and ease- ments offered for dedication and release the Improvement Bond. Recommendation 1. Adopt Minute Resolution Accepting Improvements. 2. Authorize release of the attached described Improvement Bond. Fiscal Impacts The City assumes future maintenance responsibility of the street and storm drains. Exhibits /Attachments 1. Memo describing tract and bond. Council Action ja,41 a �_O , • ,.. 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 (408) 867 -3438 ✓e!:1i�4a .... 1E OO RANDt1ti`1 TO: City Manager DATE: April 29, 1981 FROM: Director of Public Works SUBJECT: Final Acceptance for SDR 1307 Location: Park Place The one (1) year maintenance period-for SDR 1307 has expired and all deficiencies of the improvements have been corrected. Therefore, I recommend the streets and other public facilities be accepted into the City system. Attached for City Council consideration is Resolu- tion N/A I which accepts the public improvements, easements and rights -of -way. Since the developer has fulfilled his obligation described in the improve- ment contract, I also recommend the improvement securities listed below be released. The-following information is included for your information and use: 1. Developer: Saratoga Federated Church.' Address: 20390 Park Place, Saratoga, Ca. 95070 2. Date of Construction Acceptance: July 18, 1979 3. Improvement Security: Type: Investment Certificate Amount: $2,000.00 Issuing Co: Imperial Savings & Loan Assoc. Address: 14417 Big Basin Way Saratoga�,.Ca. 95070 Receipt, Bond or Certificate No.: 85- 1016006 4. Miles of Public Street: -0- 5. Special Remarks: Robes S. Shook CITY OL' & !Z dOGA Initial: AGENDA BILL NO. Dept. Hd. x� DATE: May 20, 1981 C. Atty. wpmmu Public Works C. Mgr. ------------------------------------------------------------------------------- - - - - -- �/• SUaT =— FINAL ACCEPTANCE SDR 1479 - Farwell Ave. (Gibson Anderson) -------- - - - - -- --------------------------------------r------------------"---------------- Issue Summary All improvements required of the subject Building Site Approval have been satisfactorily completed. Reco -ndation Authorize release of the attached described bond. Fiscal Impacts None Exhibits /Attachments 1. Memo describing bond Council Action r. ,.4T r r I MEMOR `A' NDUM V. - . 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 • (408) 807 -3438 TO: City Manager DATE: April 29, 1981 FROM: Director of 'Public Works SUBJECT: Tract SDR 1479 (Final Acceptance) Location: Farwell Ave. All improvements required of SDR 1479 and agreed to in the _ Building Site Approval Agreement dated Nov.' 4, 1980 have been satisfactorily completed. Therefore, I recommend the improvement security posted to guarantee that agreement be released. The following information is included for your use: 1. Developer: Gibson Anderson Address; 19571 Farwell Ave., Saratoga, Ca. 2. 3. Improvement Security: Type: Cash Amount: $600.00 Issuing Co.: Address: Receipt, Bond or - Certificate No.: Receipt No. 52296 Special Remarks: RSS /dsm Ro ?rtS. hoo k iiQq 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 . (408) 867 -3438 June 15, 1981 Mr. Gibson Anderson 19571 Farwell Avenue Saratoga, California 95070 Re: SDR 1479 Bear Mr. Anderson: The Director of Public Works reported to the City Council at its May 20, 1981, meeting that all improvements required for SDR 1479 have been satisfactorily completed. The City Council, therefore, approved the release of your bond in the amount of $600. This item will be included on the July 1, 1981, List of Disburse- ments, and we will issue your warrant for this amount shortly thereafter. /da cc: Claudia Gemanis Account Clerk Very truly yours, A / Grace E. Cosy Deputy City Clerk CITY OF SARA OGA AGENDA BILL NO. � � ept ep Dt. . DATE: May 20, 1981 C. Att �� :. Public Works C. Mgr ------------------------------------------------------------------------ SUBJECT: FINAL ACCEPTANCE FOR TRACT 5164 (Sobey Meadows Ct.) 1: Hd. Issue Summary The one year maintenance period for the subject tract has expired and all deficiencies have been corrected. At this time, the City must take action to accept the streets and easements offered on the Tract Map and release the Improvement Bond. Recommendation 1. Adopt Resolution 36 -B- 195 2. Authorize release of the attached described Improvement Bond. Fiscal Impacts The City assumes future maintenance responsibility of the street and storm drains. Exhibits /Attachments 1. Memo describing tract and bond 2. Res. 36 -B -'195 Council Action �� M�� ��VIEMOO RANDU�V11 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 (408) 867 -3938 TO: City Manager FROM: SUBJECT: Director of Public Works Final Acceptance for Tract 5164 Location: Sobev Meadows Court DATE: May 7, 1981 The one (1) year maintenance period for Tract 5164 has expired and all deficiencies of the improvements have been corrected. Therefore, I recommend the streets and other public facilities be accepted into the City system. Attached for City Council consideration is Resolu- tion 36 -B -195 , which accepts the public improvements, easements and rights -of -way. Since the developer has fulfilled his obligation described in the improve- ment contract, I also recommend the improvement securities listed below be released. The following information is included for your information and use: 1. Developer: Kunkel, Thomas Co. Address: 2992 S. Bascom Ave., San Jose, Ca. 95124 2. 3. Date of Construction Acceptance: Aug. 21, 1974 Improvement Security: Type: Faithful Performance Amount: $1,000.00 Issuing Co: Fidelity & Deposit Co. of Maryland Address: 255 Calif. St.. San Francisco, Ca. 94111 Receipt, Bond or Certificate No.: 8575880 4. Miles of Public Street: 0.15 5. Special Remarks: ArtS. Robook r 1 M . . rtr"- 'r�,+r` iJ:+:r -�•r. T(0I(:,?.M' 1010 inl a it le'sr r. RESOLUTION NO. 36 -B- 195 - a RESOLUTION ACCEPTING DEDICATION OF STREETS { TRACT NO. 5164 'a It appearing that on or about Aug. 21, 1974 , the street, storm drain and other improvements as shown on the hereinafter referred to subdivision map and on approved improvement plans therefor were completed and thereafter were maintained by the subdivider for a period of not less than an additional year from date of satisfactory completion. NOW, THEREFORE, the City Council of the City of Saratoga hereby resolves as follows: That portion of the City's previous resolution rejecting the dedication of certain streets, storm drains and other easements as shown on the following described subdivision map: Map of Tract No. 5164 recorded in Book 302 of Maps, at Page 7 & 8, in the office of the County Recorder of the County of Santa Clara, State of California on Mav 25 . 19 72 . and as set forth in the Clerk's certificate on said map, is hereby re- scinded and the previously rejected offers of dedication on said map are hereby accepted, except the following: NONE and all of the above streets which are accepted under this resolution are hereby declared to be public streets of the City of Saratoga,_ County of Santa Clara, State of California. BE IT FURTHER RESOLVED: That the following described improvement bond or bonds are hereby order- ed released: Tha.t certain Improvement Bond No. 8575880 dated , and issued by Fidelity & Deposit Co. of Maryland The above and foregoing resolution wa.s passed and adopted on the day of 19 at a regular meeting of the City Council of Saratoga by the following vote: AYES: NOES: ABSENT: ATTEST: CITY CLERK MAYOR s MD90 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 ®. (408) 887 -3438 June 10, 1981 Kunkel, Thomas C'mipany 2992 S. Bascan Avenue San Jose, California 95124 Re: Tract 5164 Gentlement The Director of Public Works reported to the City Council at its May 20, 1981, meeting that all improvements required for Tract 5164, have been satisfactorily oapleted. The City Council, therefore, approved the release of your bend. The bonding catpany is beAng notified by copy of this letter. very truly yours, Grace E. Cory U Deputy City Clerk /da cc: - Co. of Maryland CITY OF SAIv=,A Initial: AGENDA BILL NO. I Dept. Hd. DA'L'E: May 20, 1981 C. Atty. � WARTMENT:. Public Works C. Mgr. ARA/ SUBJEcr: FINAL ACCEPTANCE FOR TRACT 6199 (Regan Lane) ----------------------------------------------------=--------------------------- - - - - -- -- Issue Summary The one year maintenance period for the subject tract has expired and all deficiencies have been corrected. At this time, the City must take action to accept the streets and easements offered on the Tract Map and release the Improvement Bond. Recomn-andation 1. Adopt Resolution 36 -B- 194 2. Authorize release of the attached described Improvement Bond. Fiscal Impacts The City assumes future maintenance responsibility of the street and storm drains. Exhibits /Attachments 1. Memo describing tract and bond 2. Res. 36 -B -'194 Council Action O 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 .•- -- -. 408 867 -3438 MEMORANDUM TO: City Manager FROM: SUBJECT: Director of Public Works Final Acceptance for Tract 6199 Location: Reaan Lane DATE: May 7, 1981 The one (1) year maintenance period for Tract 6199 has expired and all deficiencies of the improvements have been corrected. Therefore, I recommend the streets and other public facilities be accepted into the City system. Attached for City Council consideration is Resolu- tion 36 -B -194 which accepts the public improvements, easements and rights -of -way. Since the developer has fulfilled his obligation described in the improve- ment contract, I also recommend the improvement securities listed below be released. The following information is included for your information and use: 1. Developer: Hagan Const. & Development Co. Address: 2270 Bay Road, Redwood City, Ca. 94063 2. Date of Construction Acceptance: May 21, 1980 3. Improvement Security: Type: Labor & Materials Amount: $138,000.00 Issuing Co: The Hartford Co. Address: None Available Receipt, Bond or Certificate No.: 5021910 4. Miles of public Street: 0.20 5. Special Remarks: 3'9. Robert S. Shook •% C r _iis- sst�.� .......w,..... _..._ ....�,...._ , ;.o;. !! Z �1 'at.:G�cr O _ mr >•i`0 .fit t i,�y'��,,�ex.t w r"rjt' r ;:_�,:.ii� ��ti„� �`_ia`�;"�? ";::5; rw?•f.:�:�,C ),:iRti !7 RESOLUTION NO. 36 -B- 194 RESOLUTION ACCEPTING.DEDICATION OF.STREETS TRACT NO. 6199 It appearing that on or about May 21, 1980 the street, storm drain and other improvements as shown on the hereinafter referred to subdivision map and on approved improvement plans therefor were completed and thereafter were maintained by the subdivider for a period of not less than an additional year from date of satisfactory completion. NOW, THEREFORE, the City Council of'the City of Saratoga hereby resolves as follows: That portion of the City's previous resolution rejecting the dedication of certain streets, storm drains and other easements as shown on the following described subdivision map: 55 & Map of Tract No. 6199 recorded in Book 413 of Maps, at Page 56 , in the office of the County Recorder of the County of Santa Clara, State of California on March 1 , 19 78 and as set forth in the Clerk's certificate on said map, is hereby re- scinded and the previously rejected offers of dedication on said map are hereby accepted, except the following: NONE and all of the above streets which are accepted under this resolution are hereby declared to be public streets of the City of Saratoga, County of Santa Clara, State of California. BE IT FURTHER RESOLVED: That the following described improvement bond or bonds are hereby order- ed released: That certain Improvement Bond No. 5021910 dated Jan. 19, 1978 , and issued by The Hartford Co. The above and foregoing resolution was passed and adopted on the day of 19 , at a regular meeting of the City Council of Saratoga by the following vote: AYES: NOES: ABSENT: ATTEST: CITY CLERK MAYOR • 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 ®. (408) 867 -3438 June 10, 1981 Hagan Construction & Development Co. 2270 Bay Road Redwood City, California 94063 Gentlement The Director of Public Works reported to the City Council at its May 20, 1981 meeting that all improvements required for Tract 6199 have been satisfactorily cotpleted. The City Council, before, approved the release of your bond. Since we do not have the address of the bonding company, please notify them of the above. /da verjt truly yours, r r Grace E. Cory Deputy City Clerk CITY OF SA -CQQN AGENDA BITS, NO. ��� Initial: ix Dept. lid. May 20, 1981 C. Atty. DEPAi7IT=:. Public Works C. Mgr. SUHJECI': CONSTRUCTION ACCEPTANCE FOR SDR 1430 - Chester Ave. - H. Bellicitti --------------------------------------------------------------------------------------- Issue Sunnary The public improvements required for the subject Tract or Building Site have been satisfactorily completed. This "Construction Acceptance" will begin the one (1) year maintenance period. Recommendation Grant "Construction Acceptance" to the subject Tract or Building Site. • Fiscal Impacts None Exhibits /Attachments 1. Memo describing development and bond. Council Action �Q aav� �• �� °' 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 (408) 867 -3438 MEMORANDUM RANDUM TO: City Manager FROM: Director of Public Works SUBJECT: Construction Acceptance for SDR 1430 Name & Location: Chester Ave. DATE: April 29, 1981 Public Improvements required for SDR 1430 have been satisfactorily completed. I, therefore, recommend the City Council accept the improvements for construction only. This "construction acceptance" will begin the one (1) year maintenance period. During that year, the improvement contract, insurance and improvement security will remain in full force. The following information is included for your use: 1. Developer: H. Bellicitti Address: 14401 Chester Ave. Saratoga, Ca. 95070 2. Improvement Security: Type: Faithful Performance Amount: $9,440.00 Issuing Company: United Pacific Insurance Co. Address: 14001 Chester Ave. Saratoga, Ca. 95070 Receipt, Bond or Certificate No.: No Number 3. Special Remarks: RSS /dsm Rob rt -S. Shook W. 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 ®. (408) 887 -3438 June 10, 1981 H. Bellicitti 14401 Chester Avenue Saratoga, California 95070 Dear Mr. Bellicitti: The Director of Public Works reported to the City Council at its meeting of May 20,11981, that the improvements for 3DR 1430 have been satisfactorily canpleted and the Council accepted the improvements for construction only. When all deficiencies have beae corrected at the end of the one -year mintenance period, we will be An a position to recaYmeld acceptance of the streets and release the bond. /da cc: +surance company Very truly yours, Grace E. Cory Deputy City Clerk CITY OF SAI:MOQN AGENDA Initial: � AGENDA BITS, NO. Dept. Fid. l/ " ATE: May 20, 1981 C. Atty. DEPAR'IVfl:=:. Public Works C. Mgr. c� ---------------------------------------------------------------------------/---------- SUBJECT: CONSTRUCTION ACCEPTANCE FOR TRACT 5954 - Allendale Ave., Kosich Constr. Co. Issue Summary The public improvements required for the subject Tract or Building Site have been satisfactorily completed. This "Construction Acceptance" will begin the one (1) year maintenance period. Reco, - dation Grant "Construction Acceptance" to the subject Tract or Building Site. O Fiscal Impacts None Exhibits /Attachments 1. Memo describing development and bond. Council Action iV1EMORAN � �1M TO: FROM: SUBJECT: 09TE @0 O&M&UeO& 13777 FRUITVALE AVENUE • SARATOGA. CALIFORNIA 95070 (408) 867 -3438 City Manager Director of Public Works DATE: May 7, 1981 Construction Acceptance for Tract 5954 Name & Location: Allendale Ave. r AV Public Improvements required for Tract 5954 have been satisfactorily completed._ I, therefore, recommend the City Council accept the improvements for construction only. This "construction acceptance" will begin the one (1) year maintenance period. During that year, the improvement contract, insurance and improvement security will remain in full force. The following information is included for your use: 1. Developer: Kosich Const: Co. Address: 18867 Kosich Dr. 'Saratoga, Ca. 95070 2. Improvement Security: Type: Performance Bond Amount: $46,920.00 Issuing Company: Fidelity & Deposit Co. of Maryland Address: 253 California St.. San Francisco, Ca. 94111 Receipt, Bond or Certificate No.: 5989203 3. Special Remarks: RSS /dsm Rb ert - :—Shook • U .• , . I, • n ®�c� 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 ®. (408) 867 -3438 June 10, 1981 Kosich Construction Company 18867 Kosich Drive Saratoga, California 95070 Gentle m: The Director of Public Works reported to the City Council at its meeting of May 20, 1981, that the improvements for Tract 5954, have been satisfactorily completed and the Council accepted the improvements for construction only. When all deficiencies have been corrected at the end of the one -year main- tenance period, we will be in a position to recammend acceptance of the streets and release the bond. Very truly yours, Grace E. Cory J Deputy City Clerk � M.- cc: it Co. of Maryland AGEi P; BILL NO. 3,L DATE: May 20, 1981 MRTMQNT: Public Works -Eng. SUBJECT: CITY OF SARATOGA STREET IMPROVEMENTS - LOMITA AVE. Issue Summary Initial: Dept. Hd. C. Atty. C _,N • C. Mgr. As conditions of Building Site Approval (SDR 1029) in 1973, Kathryn Pronger was requested to improve the frontage of Lomita Ave. P.G.& E. common stock was posted to guarantee the com- pletion of the improvements. Those improvements were never made and we have, to date, failed to obtain compliance. The recommended action is our next step toward that compliance. Recommendation Authorize the City Attorney to proceed to collect the bond. • Fiscal Impacts None - All costs, including litigation, engineering, construction, will be limited to the amount.of bond collected. Exhibits /Attachments 1. Memo to City Manager from Asst. Director of Public Works 2. Letter to N. W. Pronger, April 5, 1981. Council Action • - ;� ,a A' 0 tilE�1ORANDt1'�TI 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 (408) 867 -3438 TO: City Manager DATE: 4/20/81 FROM: Asst. Director of Public Works SUBJECT: Street Improvements - Lomita Ave. As you are aware, Lomita Ave. is -a private street which runs between Oak St. and Aloha Ave. Both Oak and Aloha are public and are in some need of minor repair. I don't feel, however, that the repair is such that it needs to be done immediately nor that it should be part of a joint project. SDR 1029 (Kathryn Pronger) was conditioned to improve its frontage of Lomita Ave. to City Street Standards, including concrete curb and gutter. Upon completion, this portion of Lomita was to become public. The con - struction was estimated to cost $6,451 including the construction of an access road to the rear of the property.(Construction of the access road was completed several years ago). To guarantee completion of the re- quired improvements, Mr. Norman W. Pronger posted 255 shares of P.G.& E. common stock which has a May, 1973 value of $7,267.50. (I have no idea of its .current value). Since the bond was to cover the cost of the access road, along with the Lomita improvements, I believe that it is large enough to make whatever improvements we do to Lomita. I suspect that with the current feelings on Heritage Lanes, we do not want concrete curb and gutters,.nor do I think we want it to become a public street. There are two problems with the bond Mr. Pronger posted. First, is that the stock is in his mother's (Kate C. Pronger) name; second,.is that when the stock certificates were assigned to the City, Bob Beyer signed the line designated for Kate C. Pronger,and Norman W. Pronger signed on the line which was designated for the City to sign when releasing the stock. The previous City Attorney has advised us that because of these. problems, we may have to go to court to establish our right to.dispose of the stock. After several attempts, we had the attached letter served to N..W. Pronger on April 5, 1981. • SDR 1346 (Anthony Lawrence) was-also required to improve its frontage of Lomita Ave. to City Street Standards and to improve Lomita Ave. to: -`Mini mum Access Road Standards" between Aloha Ave. and the site. Mr. Lawrence appealed this requirement. City Council allowed the City Street improve- ments to be somewhat reduced and deferred, but held firm on.the "Minimum Pdge 2. Memorandum to City Manager 4/20/81 Street Improvements - Lomita Ave. • Access Road Standards" and, further., required "that the Minimum Access Road extend across the frontage. The cost of this construction was es- timated to be $2,610. It is my recollection that since Site Approval was required because of a more than 50% expansion, Mr. Lawrence chose to leave a hole in his second floor addition, thus reducing the addition to below 500. This, for all intent and purpose, eliminated all requirements. When Mr. Lawrence and I discussed the condition of Lomita Ave. two or three weeks ago, I stated that if the City could get either Mr. Pronger's approval or bond money, we would be in a position to have Pronger's front- age improved to whatever extent the money would cover. I suggested that since Lomita was a private street., the City might rather give Pronger's money to someone else to make the improvement and not get involved in the improvement project itself. I told him I would discuss this possibility with you and the City Attorney as.soon as I had determined what Pronger was going to do. If you wish, I'm ready to do that no t appears that the first step is to see if we can sell the stock.. Dan Trinidad, Jr. • DT /dsc Attachment, March 25, 1981 N. W. Pronger 20600 Lomita Avenue Saratoga, Ca. 95070 Re: SDR #1029, Improvement Agreement- Lomita Avenue 255 Shares P.G.& E. Common Stock Dear Mr. Pronger: Our offices have written you,on March 6, 1978, November 14, 1978 and January 11, 1979 concerning your obligation to widen and improve Lomita Avenue in front of your property in accordance with your Site Improvement Agreement entered into some years ago. • You have not caused the work to be done and you have not shown us the courtesy of responding to our letters. You will recall that 255 shares of P.G.& E. stock were assigned to the City back in March of 1973 as your guarantee to perform this work. Therefore, please be advised that we are transferring the stock certificates to our City Attorney with instructions to sell them on the open market at whatever the going rate is, and once we have the funds, the City will expend them in putting in as much of the improvements as the stock proceeds will allow. On checking the certificates, we find them to be in the name of Kate C. Pronger and you may well want to advise her that her stock'is being forfeited. We will detain action on this matter until April 10th, if you wish to respond. Very truly yours, Robert S. Shook Director of Public Works RSS /dsc cc: City Attorney CITY OF SARATOGA Initial: AGENDA BILL NO. Dept. Head: DATE OF MEETING: May 20, 1981 City Atty: DEPARTMENT: Community Services City Mgr: SUBJECT: Agreement Between The City of Saratoga and The Saratoga Area Senior Citizens Coordinating Council Issue Summary The Saratoga Area Senior Citizens Coordinating Council has agreed to assist the City by raising funds to provide furnishings and equipment for the Senior Citizen Addition to the Saratoga Community Center. Staff and the Seniors felt it was important to define the areas of responsibilities for both the City and the Coordinating Council and attached is an Agreement to accomplish that goal. Recommendation Adopt the Agreement between the City of Saratoga and the Saratoga Area Senior Citizens Coordinating Council for furnishing and operating of the Senior Citizen Addition to the Saratoga Community Center. Fiscal Impact This action of the Coordinating Council to raise funds to purchase necessary furnishings and equipment for the Center will save the City $20,000 to $30,000. Exhibits /Attachments Background Report. Agreement between the City and the Coordinating Council. Council Action Passed 5 -0. REPORT TO MAYOR AND CITY COUNCIL DATE: May 7, 1981 COUNCIL MEETING: May 20, 1981 SUBJECT: Agreement Between City and Saratoga Area Senior Coordinating Council Background The Saratoga Area Senior Coordinating Council has provided considerable input to the design of the addition to the Community Center. They also realize that HUD funds cannot be used to furnish the building with.tables, chairs, kitchen equipment or other items necessary to make it useable and enjoyable. As a result The Coordinating Council has initiated a special fund raising committee to work toward raising $20,000 to $30,000 to provide the appropriate furnishings. The Coordinating Council, City Manager and Director of Community Services felt it important to outline the responsibilities of the City and the Coordinating Council in this effort, and the Agreement has been written to fuifiil this need. The Coordinating Council will be responsible for raising funds, will make selection of type of items to be purchased and will do the actual purchasing. The City must approve all item selected.prior to their acquisition. The City will assume responsibility for the items as soon as purchased. ^e Becuase the Coordinating Council is anticipating holding fundraising functions such as bus trips, dinners, dances, etc., the City has required that they obtain liability insurance which provides the City as additionally insured. The Agreement also infers that the Coordinating Council may continue to raise funds to assist with the activities to be held in the Center after construction is complete and they will assist the Community Center staff in developing programming for Senior Citizen activities. The Community Center Director shall be designated as the City staff member to serve as a liason to the Coordinating Council concerning selection of furnishings as well as operation and programming for the Center. Barbara Sampson, Director Community Services Department • R � IWJk t �t+�M�A.•' S.,Aa itw� t1 ti 5/8/81 AGREEMENT BETWEEN THE CITY OF SARATOGA AND THE SARATOGA AREA SENIOR CITIZENS COORDINATING COUNCIL FOR FURNISHING AND OPERATING OF THE SENIOR CITIZENS.ADDITION TO THE SARATOGA COMMUNITY CENTER THIS AGREEMENT made and entered into this day of 1981, by and 'between the CITY OF SARATOGA, a Municipal corporation, hereinafter referred to as "CITY ", and the SARATOGA AREA SENIOR CITIZENS COORDINATING COUNCIL, a non - profit corporation, hereinafter referred to as "COORDINATING COUNCIL ", for furnishing and.operation of the SENIOR CITIZENS ADDITION TO THE SARATOGA COMMUNITY CENTER, hereinafter referred to as "CENTER ". WHEREAS, the CITY OF SARATOGA will cause to have constructed an addition to the SARATOGA COMMUNITY CENTER located at 19655 Allendale Avenue, Saratoga, California and said addition will be for the primary use of Senior Citizens, and WHEREAS, it is necessary for the CITY to obtain assistance in the furnishing and operation of the CENTER and the COORDINATING COUNCIL is desirous of assisting with this function, NOW, THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: A. CITY OF SARATOGA shall; 1. Own and control use of the CENTER, including all furnishings and equipment. 2. Simultaneous with purchase CITY shall accept donations from the COORDINATING COUNCIL of furniture and equipment for the CENTER. j. Provide maintenance and security of the CENTER. 4. Provide staff assistance for programming of activities for Seniors and to schedule of the CENTER. go r.. AR It 5. Provide assistance in selecting all items or furnishings placed in the CENTER. No items or furnishings shall be placed in the CENTER without prior approval of the CITY. 6. Designate a staff member to serve as a liason between the CITY and the COORDINATING COUNCIL concerning operation of the CENTER. B. SENIOR CITIZEN COORDINATING COUNCIL shall: 1. Designate an individual or individuals to serve in the capacity of liason to the CITY. 2. Select, with CITY concurrence, and purchase furnishings and equipment for the CENTER. 3. Promote and raise funds to purchase furnishings for the CENTER and promote fund-raising to help operate programs at the CENTER. 4. Provide input and guidance to CITY regarding programs and activities offered by the CENTER as well as the operation and use of the CENTER. 1.H fit. t. l" Y 5. Obtain liability insurance in the amount of $1,000,000 and • designate SENIOR CITIZEN COORDINATING COUNCIL as the insured party and designate the CITY as an additionally insured. 6. The COORDINATING COUNCIL may use existing city recreation facilities, normally available for reservation and use by residents, if available, for fund raising activities related to SENIOR CENTER or the CITY at no charge. C. GENERAL CONDITIONS: 1. It is understood the COORDINATING COUNCIL is a non - profit organization and has not been given and is not given a lease of said premises or any part thereof and acquires no easement, license or other interest in said real property owned or constructed by CITY. 2. Anything to the contrary hereinabove not withstanding, both CITY and COORDINATING COUNCIL each reserve the right to terminate this Agreement on sixty (60) days prior written notice to the other. 3. Neither the CENTER nor any other CITY property shall be used for any unlawful purpose or for purpose'of promoting private gain. • I e a 4. Although COORDINATING COUNCIL may have sub- committies to assist with functions outlined in this Agreement, this Agreement and any and all rights contained herein is non - assignable by COORDINATING COUNCIL without the written consent of CITY first had and obtained. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first written above. ATIEST: City Clerk APPROVED: ty Attorney CITY OF SARATOGA, A Municipal Corporation By Mayor SARATOGA AREA SENIOR CITIZENS COORDINATING COUNCIL By President -3- CITY OF SARATOGA AGENDA BILL N0: DATE: May 20, 1981 DEPARTMENT: Community Services N1 WIN Initial: Dept. Head: City Atty . City Mgr ./i SUBJ'.C'T: Award of Contract for Construction of Community Center Addition Issue Summary April 1st the City Council authorized a call for bids for the construction of the Senior Citizen Addition to the Lommunity Center. The bid process was initiated, 18 companies checked out bid documents, 13 companies completed the required Affirmative Action Program and the City received 8 bids on May 11, 1981. Recommendation Award contract for the construction of the Community Center Addition to the low bidder, R. Christensen Construction in the amount of $195,478 for the base bid and alternates 1, 2 and 3. Fiscal Impact $241,000 in housing and community development funds is available to complete the project. $30,300 has been committed for architect's fees for the design, construction drawings and construction inspection as well as the necessary reproduction of blueprints. Awarding contract for the low bid of $195,478 will leave a balance of $15,222 to be used for any additional work deemed necessary during construction or for other items related to construction. These funds may not be used for furnishing the building. Exhibits /Attachments Bid Sirmanary. Metro explaining bid sutmiary, time discrepancy, award of contract and background information. Architect's letters dated May 14, 1981 and May 15, 1981. Council Action Awarded contract to R. Christensen Const. in amount of $195,478 for base bid and alt. 1 -3. Passed 5 -0. Bid Opening: 5/11/81 BID SUMMARY Senior Citizen Addition to The Community Center BASE BID I ALTERNATE #1 ALTERNATE #2 ALTERNATE #3 r TOTAL BID aRCH1TECT FINAL ESTIMATE $197,095 $ 2,350 $27,800 $ 2,875 .$2(30 120 �RMAND CONSTRUCTION $2511,000 $ 1,500 $21,000 4,200 28800 ')TROUSS BROTHERS CONST. No Bid 10E CONSTRUCTION $235,970 $ 2,800 $18,400 4,8o0 $261,970 tALPH RAMONA & ASSOC. No Bid t. CHRISTENSEN CONST. $173,078 $ 2,200 $15,900 $ 4,300 $195,478 ).E. ANDERSON & SON $226,600 $ .1 P894 $18,626 $- 4,;013 $251,133 3ARNHART CONSTRUCTION $259,856 $ 2,100 $17,000 $ 6,000 $284,956 IACK A. NELSON $213,000 $ 2,860 $18,044 $ 4,365 $238,269 0 IEW WEST CONSTRUCTION $194,000. (2� $ 5,827 $28,340 $ 5,406 $233,573 G ,ET IT UP CONSTRUCTION No Bid tOBERTS CONSTRUCTION No Bid 6HLOCK & PARADIES (late) $211,766. © $ 2,230 $17,950 $ 6,630 $238.576 .EARHART & SPIVEY No Bid eN fig$ o Pig R 5L R REPORT TO MAYOR AND CITY COUNCIL DATE: May 15, 1981 COUNCIL MEETING: May 20, 1981 SUBJECT Awarding Contract for the Construction of Community Center Addition ---------------------------------------------------------------------- - - - - -- Bid Summary The eight bids received from the construction companies for construction of the Community Center Addition ranged from a low of $195,478 to a high of $284,956. The low bid of Christensen Construction included $173,078 for a base bid, $22,400 for alternates for a total of $195,478. The next iow bid of New West Construction showed $194,000.base bid, alternates $39,573 for a total of $233,573. There is a difference of $38,095 between the low and next low bid. A complete bid summary is attachled for your review. Discrepancy in Time of Receipt of Bids The bids were called for 11:00 am on Monday, May H, 1981. The Director of Community Services was at City Hall's front counter receiving the bids and noting the time of receipt according to the clock on the wall in the Administration Department. According to that clock, six bids were received by 11:00 am, the - bid of Christensen Construction was received at 11:01 and the bid of Ashlock & Paradies was received at 11:02. The City Clerk and Director of Community Services then proceeded to the Crisp Conference Room to open the bid. The architect stated he felt the clock was wrong and that we had closed the bids too soon. Bids were opened and it was noted the low bid was from R. Christensen Construction. Because of the architect's comment, the Director of Community Services then went back to the Administration Office to check the accuracy of the clock against the time recording of the telephone company. As a result of that check of time, it was determined the City Hall clock was approximately 1 minute and 30 seconds fast. May 15, 1981 Awarding Contract for the Construction of Community Center Addition Page Two This was announced to all present at the bid opening that the bid received at 11:01 would be accepted because of the inaccurate clock but the bid received at il:02 would be considered late. The Director of Community Services did not record the receipt of bids by minutes and seconds, only by minutes. The representative of New West Construction complained to The Director of Community Services that the Christensen bid was late and should not be considered. An attorney representing New West Construction has contacted the Director of Community Services and been told that the bid was considered because of the discrepancy in the clock in the Administration Department of City Hall. Award of Contract Specifications The bid specifications which were distributed to all bidders on the Project in Book 2, General Conditions, Section 2, Award and Execution of Contract states "Section 2 -01 Award of Contract The Contract, if awarded, will be awarded to the lowest responsible Bidder subject to Owner's right to reject any or all bids and to waive any informality or irregularity in the bids or in the bidding procedures." The City Attorney, in discussion on May 12th, stated that the action taken by the Director of Community Services to correct the discrepancy created by the incorrect clock was appropriate, and the announcement of the discepancy made to the company representative attending the bid opening was appropriate. The City Attorney directed The Community Services Director to make note on all bids of the time received adjusted by one minute, and this has been.done. The Attorney requested architect Warren Heid to review all bids for any omissions, that review has been made and is presented to you in the architect's letter of May.15th. It should be noted that low bidder R. Christensen Construction Company, in completing the Statement of Financial Responsibility, Technical Ability and Experience, submitted only a statement of work of a similar character that was located in Saratoga. He did not submit a separate statement of Financial Responsibility but as per the technical specifications outlining Award and Execution of Contract the Council does have the right to waive this irregularity. The: architect has stated in his letter of May 14th that previous work done by R. Christensen in connection with architect Warren Heid has been completed on schedule with the work completed in above average manner. May 15, 1981 Awarding Contract for the Construction of Community Center Addition Page Two Background The City has been working for several years to provide additional facilities for Senior Citizens. In January of 1980 City Council.authorized design of an addition to the Saratoga Community Center, architect Warren Heid was.hired and the design process initiated. In October 1980 the Council adopted the final design of the Community Center Addition and authorized the construction drawing phase to begin. Construction drawings were completed and authorization to put the project to bid was received. Throughout the design process, staff and the architect have worked diligently with the members of the community, predominantly the Saratoga Area Senior Citizens Coordinating Council, to review and provide input to the design of the facility. The facility includes a lobby entrance area, restrooms, a large multi - purpose meeting room, a samll kitchen, lounge area, and two small meeting or conference rooms. The facility will be immediately adjacent to the present Community Center, programming for Senior Citizens activities will be coordinated by the current staff and the facility will be maintained by the-current Government Buildings Division. If the contract is awarded and construction can begin by June 15th, it would be anticipated that the facility would be complete and ready for use by January 1982. J Vo _" Barbara Sampson, Director Community Services Department ms WARREN B. HEIR • AIA A N D A S S O C I A T E S A R C H I T E C T S . P L A N N E R S 1 4630 BIG BASIN WAY • P.O. BOX 14 • SARATOGA • CALIFORNIA 95070 • 867 -9365 May 14, 1981 City Council City of Saratoga 13777 Fruitvale Avenue Saratoga, California Re: Addition to Community Center City of Saratoga Honorable Mayor and Members of the City Council: In reply to the request of Mr. Wayne Dernetz, City Manager, this office reviewed all of the proposals received on May 11, 1981 for the subject project. The proposal submitted by R. Christensen Construction Co., the apparent low bidder, appears to be complete in accordance with the bidding procedure. Mr. Christensen listed as buildings of similar character two buildings that were designed by this office. Those buildings are the Office Building for the Los Gatos - Saratoga Board of Realtors and the Office Building for Galeb Properties. These projects were completed on schedule with the work, in the opin- ion of this office, above average for the construction industry for this area. S' rely, Warren B. Heid WBH:hw V . ✓ `1 WARREN B. A N D A S S A R C H I T E C T S 11=1) • AIA O C I A T E S • P L A N N E R S 1 4630 BIG BASIN WAY • P.O. BOX 14 • SARATOGA • CALIFORNIA 95070 • 867 -9365 May 15, 1981 City Council City of Saratoga 13777 Fruitvale Avenue Saratoga, California Re: Addition to Community Center City of Saratoga Honorable Mayor and Members of the City Council, This letter is submitted as a follow -up on my letter this date with regards to the bids received on May 11, 1981 for the subject project. This office was asked to review all bids for any omissions and we present the following infor- mation to you. New West Construction Co. - Subcontractors List does not list Excavation and Paving, Plumbing, Mechanical and Sheet Metal Work, Roofing, Acoustical, Building Specialties, or Plastering. Armand Construction Co., Inc. - List of Phases of Work and cost breakdown not completeed; Bidder's Statement of Financial Responsibility, Technical Ability, and Experience has statement typed "See Attached" with an 11 page Financial and Experience document attached; Page 18 with Bidder's Statement of Subcontractors was not included, however a partial list of "Subs" was written on Page 17; and Page 19 was omitted. Barnhart Construction Co. - Page 16, Affidavit, was omitted; Page 17 with the List of Financial responsibility, Technical Ability and Experience was omitted; Page 18 with List of Subcontractors was omitted, however an attempt was made to list the subcontractors on Pages 12 and 13 with List of Phases of Work; and Page 19 was omitted. Moe Construction Inc. - Bidder's Statement of Subcontractors on Page 18 does not include Flooring, Building Specialties, Acoustical Work or Painting. O.E. Anderson and Son Inc - List of Phases of Work on Pages 12 and 13 is not completed. Jack A. Nelson, General Contractor Inc. - List of Phases of Work on Pages 12 and 13 is not completed; Page 16, Affidavit, was omitted; Page 17, Bidder's City Council City of Saratoga May 15, 1981 - Page 2 Statement of Financial Responsibility, Technical Ability, and Experience was omitted; Page 18 with Bidders Statement of Subcontractors was omitted; and Page 19 was omitted. Ashlock and Paradies, Inc. - List of':Subcontractors on Page 18 gives tele- phone numbers in lieu of address. R. Christensen Construction Co. Inc. - Even though my previous letter states that this company's bid appears to be complete, it must be noted that the financial responsibility statement was presented only as the types of similar projects in Saratoga. If I can be of further assistance with the bidding process for this project please feel free to call on me. Sincerely, Warren B. Heid WBH:hw R. CHRISTENSEN zt CONSTRUCTION CO., INC. 359 SO. BAYWOOD AVE., SAN JOSE, CA 95128 TELEPHONE (408) 246 -1864 ROGER CHRISTENSEN May 11, 1981 City of Saratoga 13777 Fruitvale Avenue Saratoga, CA 95070 Gentlemen: Regarding the bid on the Saratoga Community Center on May 11, 1981 at 11:00 a.m., I was low bidder on the project, but there was a question of my being late for the bidding. According to the clock in the room, I was one minute late, however when Ms. Sampson and Warren Heid checked TIME by telephone, the clock was 12 minutes fast, which would have given me 30 seconds to spare when I entered the bid room. In view of the fact that the exact time given by the telephone company TIME recording was not checked prior to bid opening and the fact that the clock in the bid room appears to be in error, I hereby request that my bid be accepted as low bid. Sincerely, R. CHRISTENSEN CONST. CO., INC. f� der S. Christensen President RSC:csc CITY OF SARATOGA Ir Initial: AGENDA BILL NO. oZ .�.. Dept. Hd . , ! DATE: May 20, 1981 C. Atty. 4VRT�; Public Works C. Mgr. --------------------------------------------------------------------- - - - - -- -------- SUBJECT: BID OPENING ON MAY 4, 1981 FOR ONE TON DUMP TRUCK -------------------------------------------------------------------------- - - - - -- - - -� Issue Summa Bids were received on the subject dump truck and were opened on May 4, 1981 at 2:00 p.m. We received two bids; one from South Bay Ford and one from Ron Baker Chevrolet, Inc. for the following prices: `South Bay Ford Truck Sales - $12,583.51, no bid on trade -in. Ron Baker Chevrolet, Inc. - $12,256.14, including $500.00 trade -in. Recommendation Award the bid to Ron Baker Chevrolet, Inc. in the amount of $12,256.14. r1 Fiscal Impacts $6,400 - Replacement Fund 6,600_- Acquisition Budget $13,000 - Funds Available Exhibits /Attachments Council Action • CITY OF &AI TOGA AGENDA BITS, NO. Initial: Dept. Hd. DATE: May 20, 1981 C. Atty. DEPARTMENT:. Public Works C. Mgr. SUBJECT: CONSTRUCTION ACCEPTANCE FOR Tract 6785, Saratoga Foothills, Saratoga Ave. Issue Summary The public improvements required for the subject Tract or Building Site have been satisfactorily completed. This "Construction Acceptance" will begin the one (1) year maintenance period. Recommendation Grant "Construction Acceptance" to the subject Tract or Building Site. Fiscal Impacts None Exhibits /Attachments 1. Memo describing development and bond. Council Action 8/19: Approved c� 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 ' —•�! (408) 867 -3438 MEMORANDUM TO: City Manager DATE: 8/7/81 FROM: Director of Public Works SUBJECT: Construction Acceptance for Tract 6785 Name & Location: Saratoga Foothills, Saratoga Ave. Public Improvements required for Tract 6785 have been satisfactorily completed. I, therefore, recommend the City Council accept the improvements for construction only. This "construction acceptance" will begin the one (1) year maintenance period. During that year, the improvement contract,,insurance and improvement security will remain in full force. The following information is included for your use: 1. Developer: Saratoga Foothills Development Corp. Address: 1745 Saratoga Ave., Suite "C" San Jose, Ca. 95129 2. Improvement Security: Type: Labor & Materials Amount: $145,000 Issuing Company: United Pacific Ins. Co'. Address: 100 Bush St., San Francisco, Ca. 94104 Receipt, Bond or Certificate No.: U30 39 82 3. Special Remarks: RSS /dsm Robert S. Shook 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 ®. (408) 867 -3438 August 20, 1981 Saratoga Foothills Development Corp. 1745 Saratoga,Avenue, Suite C San Jose, California 95129 Gentlemen: The Director of Public Works reported to the City Council at its meeting of Augu August 19, 1981, that the improvements for SMt 6785, have been satisfactorily cmPletea and the Council accepted the improvements for constructicn only. Very truly yours, Grace E. Cory Deputy City Clerk GEC /dra cc: United Pacific Ins. Co. 100 &L94 Street San Francisco, CA 94104 CITY OF SARAl ^OGA .'3AGENDA BILL N0. DATE: May 20, 1981 DEPARTMENT: Public Works Initial: Dept. Hd. C. Atty. C. Mgr. SUBJECr: FINAL ACCEPTANCE FOR TRACT 5575 - Carnelian Glen Ct. , Dividend Industries Issue Sunanary The one year maintenance period for the subject tract has expired and all deficiencies have been corrected. At this time, the City must take action to accept the streets and easements offered on the Tract Map and release the Improvement Bond. Recomnendation 1. Adopt Resolution 36 -B- 2. Authorize release of the attached described Improvement Bond. Fiscal Impacts The City assumes future maintenance responsibility'of the street and storm drains. Exhibits /Attachments 1. Memo describing tract and bond 2. Res. 36 -B- Council Action 8/19: Approved Resolution 36 -B-198 �ti1EMOO'AND�1M uguw o2 0&M&'zQ)0Z 13777 FRUITVP.LE AVENUE • SARATOGA, CALIFORNIA 95070 (408) 867 -3138 TO: City Manager FROM SUBJECT Director of Public Works Final Acceptance for Tract 5575 Location: Carnelian Glen Court DATE: 8/7/81 The one (1) year maintenance period for Tract 5575 has expired and all deficiencies of the improvements have been corrected. Therefore, I recommend the streets and other public facilities be accepted into the City system. Attached for City Council consideration is Resolu- tion 36 -B- which accepts the public improvements, easements and rights -of -way. Since the developer has fulfilled his obligation described in the improve- ment contract, I also recommend the improvement securities listed below be released. The following information is included for your information and use: 1. Developer: Dividend Industries Address: 3600 Pruneridge Ave., #340, Santa Clara, 95051 2. Date of Construction Acceptance: Sept. 7, 1977 3. Improvement Security: Type: Labor & Materials Amount: $51,717.00 Issuing Co: Industrial Indemnity Co. c/o Alexander & Alexander Address: P.O. Box 5700, San Jose 95150 Attn: D. Svec Receipt, Bond or ` Certificate No.: YS 747 -0784 4. Miles of Public Street: 0.23 miles 5. Special Remarks: Robert S. Shook RSS /dsm e RESOLUTION NO. 36 -B- RESOLUTION ACCEPTING DEDICATION OF STREETS TRACT NO. 5575 It appearing that on or about Sept. 7, 1977 , the street, storm drain and other improvements as shown on the hereinafter referred to subdivision map and on approved improvement plans therefor were completed and thereafter were maintained by the subdivider for a period of not less than an additional year from date of satisfactory completion. NOW, THEREFORE, the City Council of the City of Saratoga hereby resolves as follows: That portion of the City's previous resolution rejecting the dedication of certain streets, storm drains and other easements as shown on the following described subdivision map: 17 F Map of Tract No. 5575 recorded in Book 357 of Maps, at Pages 18 in the office of the County Recorder of the County of Santa Clara, State of California on June 12, , 19 75 and as set forth in the Clerk's certificate on said map, is hereby re- _...... -.... scinded and the previously rejected offers of dedication on said map are hereby accepted, except the following: e . NONE and all of the above streets which are accepted under this resolution are hereby declared to be public streets of the City of Saratoga, County of Santa Clara, State of California. BE IT FURTHER RESOLVED: That the following described improvement bond or bonds are hereby order- ed released: That certain Improvement Bond No. YS 747 -0784 dated May 21, 1975 , and issued by Industrial Indemnity Co. The above and foregoing resolution was passed and adopted on the day of 19 at.a regular meeting of the City Council of Saratoga by the following vote: AYES: NOES: ABSENT: MAYOR ATTEST: • CITY CT.T'RK X31: �L No. a,. 05' 22 -81 x�AI�I':IQTr: Administration •--------------- - - - - -- LIIIL-L(Al: " ,% Dept. Iid. / X/ C. Atty. J l C. Mgr. SUB.7RCr: Social Security Replacement Benefits /Deferred Compensation Issue Sunnary In 1976 the City of Saratoga withdrew froi,i pa�•t•i ci pa-ci upon a vote of all empl.oyees,.and approval of the City instituted to replace social security. Questions have benefits Deferred Compensation in particular, were to )jl in 'the'Social Security System .based Council Five new benefits were been raised as to how the replacement be administered. The resolution atta-ched, 85 -9.52 , is to clarify the intent of the social security replacement benefit package and avoid future problems as to how those benefits are to be administered. Costs of the Deferred Compensation benefit have been included each year as part of the entire employee benefit package. However, due to the lack of adjustments in the contribution rate since the program began in 1978 back adjustments need to be made for the periods April 1979 - March 1980 and April 1980 - March 1981. Recommendation Adopt Resolution 85 -9.52 Fiscal Imtpacts Adjustment of the benefit contribution for Deferred Compensation for April, May and June of 1980 -81 will cost approximately $4500. Budget savings will be sufficient to cover these costs without any additional appropriations. Approximately $30,000 will need to be included'in the 1981 -82 budget to cover adjustments for Deferred Compensation not made in 1979 and 1980. This will be addressed during Council budget deliberations in the coming months. Exhibits /Attachm -nts eso u ion 8b-9. 5 Background Memorandum - #1 Resolution 85 -9.34 #2 Council Memorandum 4 -5 -78 #3 Resolution 873 #4 Social Security Committee Report Council Action Adopted 4 -0'. L RESOLUTION NO. 85 -9.52 A RESOLUTION AMENDING RESOLUTION NO. 85 -9.34, TO CLARIFY FRINGE BENEFITS FOR EMPLOYEES OF THE CITY OF SARATOGA The City Council of the City of Saratoga hereby resolves as follows: Section 1: Section 1.8 of Resolution 85 -9.34 is amended to read as follows: Section 1.8: Fringe Benefits (a) Purpose The City Council of this City has agreed to contract for certain replacement benefits in tandem with the decision to terminate social security coverage for City employees, effective March 31, 1978. The City's contribution to the costs of these replacement benefits is established at the estimated annual cost of social security coverage to the City,to remain fixed at the rate of 6.05% of salary, up to the social security maximum wage limit contribution. The wage limit contri- butions are established by the Social Security Administration. Beginning 1/1./78 Maximum $17,700 1/1./79 22,900 1/1/80 25,900 1/1/81 29,700 1/1/82 31,800 In no case shall the City's contribution to the approved replacement benefits exceed the amount the City would be required to contribute on behalf of its employees to the social security system. The social security replacement benefits include the following: PERS 1959 Survivor Benefit, PERS Survivor Continuance, Retiree's Health Plan, Long Term Disability Coverage and a Deferred Compensation Program. The first four benefits listed above shall be paid first and any remaining funds from the 6.05% shall be paid into the Deferred Compensation Program. (b) Description of Benefits PERS 1959 SURVIVOR BENEFIT - (Death prior to Retirement) Paid to an eligible beneficiary upon death of the member, whether or not the member .is eligible for retirement at the age of death'. PERS SURVIVOR CONTINUANCE - One half of the member's unmodified allowance based on full formula service under PERS, and one - quarter of the unmodified allowance based on modified formula service (the period during which the employee was covered jointly by social security and PERS) is paid to: (a) a surviving spouse; (b) dependent children (if no spouse); or (c) dependent parents. In addition the member may choose one of four retirement options at the time of retirement to increase the allowance for his beneficiary. RETIREE'S HEALTH PLAN - The City will provide for the extension of the current group medical and hospitalization plan to all retirees who wish to continue their coverage. The City will contribute an amount equal to the agency contribution to the Myers- Geddes Health Plan for an employee who qualifies for full retirement benefits under PERS. until the time he qualifies and is eligible for medicare benefits and until he dies. A disabled worker qualifies as a retired member. The balance of the monthly premium, if any, shall be born by the employee. LONG TERM DISABILITY COVERAGE - The City shall pay the monthly premium to.provide each employee a long -term disability insurance program which affords a monthly stipend to a disabled member after 30 continuous days of disability. The amount of monthly income shall be 66 2/30 of the first $1500 of the employees monthly salary, to a maximum benefit Of $1000 per month. DEFERRED COMPENSATION - D f \ e erred Compensation allows an employee to take income out of his peak earning years and set it aside to provide additional retirement income. No federal income taxes are paid on the deferred income until the value of the deferred earnings is returned either at retirement or when a member withdraws from the plan. An employee is eligible to receive his contributions upon termination of employment, retirement; upon becoming disabled or at the time of death. The above and foregoing resolution was passed and adopted at a regular meeting of the City Council of the City of Saratoga held on the day of June, 1981 by the following vote: AYES: NOES: ABSENT: ATTEST: CITY CLERK MAYOR �c f. REPORT TO MAYOR, AND CITY COUNCIL 0 I nA, EMU I - DATE: 5 -22 -81 COUNCIL MEETING: 6 -3 -81 SUBJECT Social Security Replacement Benefits/ Deferred Compensation -------------------------------------------------- RAr vnPni f mn In 1978, the City of Saratoga, based upon a vote of all employees,.withdrew from participation in the Social Security System. Attachment #4 is a copy of the report presented to all employees and the City Council by the Social Security Committee in 1978. The report gives detailed information on how the Social Security Replacement Benefits were chosen. Social Security Replacement Benefits were to include the following five benefits: 1. Public Employees Retirement System (PERS) Survivor Benefit 2. PERS Survivor Continuance 3. Retiree's Health Plan 4. Long Term Disability Coverage 5. Deferred Compensation Program The above five replacement benefits were instituted (see Attachments 1, 2 and 3) and the changes were effective March 31, 1978. During employee negotiations in 1980 the issue of the social security replacement benefits was raised and the amount of money being allocated for the Deferred Compensation Program was questioned. The questions raised at that time have been under discussion and study and are now to the point of being resolved. DISCUSSION OF THE PROBLEM Resolution 85 -9.34 relating to replacement benefits for social security was adopted by the City Council in May 1978. The purpose of Resolution 85 -9.52 is to clarify the entire replacement benefit package and how it is to be administered. Resolution 85 -9.34 is vague and as a result is subject to different interpretations. In order to avoid future confusion as to these benefits and how they are administered, and to clarify distribution and costs during employee negotiations, Resolution 85 -9.52 has been developed. Report to Mayor and City Council Social Security Replacement Benefits /Deferred Compensation Council Meeting: 6 -3 -81 Page 2 In researching all the documents, reports and resolutions it is clear that the intent of the Social Security replacement benefits was to pay for benefits, equal to but not to exceed the amount the City would be required to pay to the..Socia °1 Security System. (For documentation see attachment 1, Resolution 85 -9.34, Pur ose;',Attachment #2, and Attachment #4). This would indicate the City would be paying 6.05% of salary, the percentage rate going into Social Security at the time of our withdrawal, up to the Social Security salary maximum "cap ", for the replacement benefits. The Social Security maximum "cap" is the amount up to which Social Security benefits must be paid. This amount was $17,700 in 1978, is currently $29,700 and will be $31,800 as of 1 -1 -82. The advantage to the City was that the percentage, 6.05, was to stay fixed, whereas with Social Security it was to increase to 6.70% by 1982. The distribution of the 6.05% of salary for the replacement benefits was to have the PERS Survivor Benefit, the PERS Survivor Continuance, the Retiree's Health Plan, and the Long Term Disability Insurance paid first, and the remainder of the 6.05% was to be applied to the Deferred Compensation Program. The cost of these benefits can change yearly and computation of amounts and appropriate adjustments should have been made yearly. Adjustments were made yearly in all benefit costs, except for the contribution to Deferred Compensation. The monthly contribution has remained the same since the Plan's inception in 1978. The amount set aside each year for replacement benefits is to be equivalent to 6.05% of salary up to the Social Security salarymaximum "cap ". Each year as salaries have increased, adjustments have not been made in the Deferred Compensation Contributions. Adjustments have been made, as necessary, in the other replacement benefits. Based upon the above, it appears that adjustments in the Deferred Compensation benefit should have been made in April of 1979 and again in April of 1980. The total amount due for those periods is approximately $30,000 and will be included in the 1981 -82 budget as a special appropriation. We are in the process of making the necessary adjustments for April 1981 and have sufficient money in the 1980 -81 budget to cover those adjustments. In order to further clarify the intent of the Social Security replacement benefits the Assistant City Manager contacted the previous City Manager to discuss the issue. His interpretation of the intent is in agreement with the information contained in this memorandum. r. nNr.l IISTnN In order to clarify the intent of the Social Security replacement benefits it is recommended that Resolution 85 -9.52 be adopted. Patricia M. —Mu-1-1—ens Assistant City Manager PMM /lj ..F,...- :;.: -�.:.. •� -_ -,; �....�_ �- _ _,:: i�: �:; �. i•'rs�..r...w.s..w.....,.,.�... - .fpa6n —s ..•mot- t- •,»S•rw-- Nrtv.....,V -�+ � C RESOLUTION 85 -9.34 A RESOLUTION AMENDING RESOLUTION NO. 85 -9 ADDING TO FRINGE BENEFITS FOR EMPLOYEES OF THE CITY OF SARATOGA • The City Council of the City of Saratoga hereby resolves as follows: SECTION 1: Section 1.8 of Resolution 85.9 is amended to read as follows: Section 1.8: Fringe Benefits r (a) Purpose The Ci "ty Council of this city has agreed to contract for certain replacement benefits in tandem with the decision to terminate social security coverage for city employees, effective March 31, 1978. The City's contribution to the costs of these replacement benefits is established at the estimated annual cost of social security coverage to the City as of March 31, 1978. In no case shall the City's contribution to the approved replacement benefits exceed the amount the City would be required to contribute on behalf of its employees to the social security system. The social security replacement benefits include the following: PERS 1959 Survivor Benefits, PERS Post - =~s`"° " " "�"""'M� """` Retirement Survivor Benefits, Long -Term Disability Insurance, Retirees' Health d by the City Council. Plan, such "other benefits as may be enacte (b) Insurance Policies The City shall pay the monthly premium to provide each employee a long -term disability insurance program which affords a monthly stipend to a disabled employee after 30 continuous days of disability. The program will afford a monthly income benefit of 66 2/3% of the first $1,500 basic monthly earnings, to a maximum benefit of $1,000 per month. Retirees' Health Plan The City will provide for the extension of the current group medical and hospitalization plan to all retirees who wish to continue their coverage. The City will contribute an amount equal to the agency contribution to the Payers- Geddes Health Plan (currently $16.00 per month) for an employee who �.. qualifies for full retirement benefits under PERS (currently age 60) until the time he qualifies and is eligible for medicare benefits (currently age 65) and until he dies. A disabled worker qualifies as a retired member. The balance of the monthly premium, if any, shall be borne by the employee. The City will extend the current group medical and hospitalization plan to all retirees between age 50 and 60 as long as they are not eligible for another group plan at a subsequent place of employment. However, the full monthly premium shall be borne by the employee. SECTION 2: Unless otherwise indicated, the modifications contained in this resolution shall be effective as of the first day of April 1978. r The above and foregoing resolution was passed and adopted at a regular meeting of the �.._ City Council of the City of Saratoga held on the 17 day of May, 1978, by the following vote: i "r AYES: Councilmen Kraus, Corr, Kalb, Matteoni, 6 Callon / \` NOES: None None ABSENT 1t ( <,i /fir. /' y ;r._. MAYOR. ATTEST: C \ ` ✓` �, 7' F� /t 1 Fh L H I'l L- A. i 1 - v REPORT TO MAYOR CITY COUNCIL AND DATE: COUNCIL MEETING: SUBJECT: Social Security Replacement Benefits C17,71IN-T it 3/20/78 4/5/78 This report is in follow -up to the action by the City Council at its meeting on March 15, 1978, to proceed with the withdrawal from the Social Security program effective March 31, 1978. The approved replacement benefits package included the following items. 1. Retirees' Health Plan 2. Long -Term Disability Insurance Program 3. PERS 1959 Survivors Benefit 4. PERS Survivor Continuance .z 5. Deferred Compensation Program Each of these benefits is reviewed in this report. RECOMMENDATION It is recommended that the City Council proceed with the following: 1. Adoption of Resolution 85 -9.34 (A Resolution Amending Resolution No. 85 -9 Adding to Fringe Benefits for Employees of the City of Saratoga). This provides for a retirees' health plan and long term disability insurance for all city employees effective April 1, 1978. In addition, it is recommended that the Council t authorize the City Manager to contract with Standard Insurance Company for the long -term disability insurance program. \ 2. Adopt Resolution No. 350 (A Resolution of Intention to Amend the Contract between the City of Saratoga and Public Employees' Retirement System for 1959 Survivors and Post - Retirement Survivors' Allowance). At the end of April, the Council will be asked to adopt an ordinance which formally amends the contract. The two survivors benefits will go into effect May 1, 1978. 3. Temporarily hold in abeyance any action on a deferred compensation program. Tah`e funds-that were:-intended to be applied to this program should be held in reserve.until a determination is made on how to proceed. This will be enacted by resolution of the City Council. BACKGROUND This report is in follow -up to the action taken by this City Ccuncil at its meeting of March 15, 1978, to proceed with the withdrawal from the Social Security Program effective March 31, 1978. At that meeting, the Council concurred in the package of replacement benefits recommended by the Social Security Committee and approved by the City employees. It further authorized staff to proceed to contract for and implement the replacement benefits as soon after March 31st as possible. Each of these items is detailed in the memorandum below. They are implemented through the adoption of Resolution No. 85 -9.34 and the Resolution of Intention to Amend the Contract with the Public Employees' Retirement System. Retirees' Health and Long -Term Disability Insurance Resolution 85 -9.34 (A Resolution Amending Resolution 85 -9 Adding to Fringe Benefits for Employees of the City of Saratoga) enacts a retirees' health plan and long -term disability insurance effective -2- 0 April 1, 1978. The wording for the retirees' health plan is the same as contained in the Social Security .Committee report. It authorizes a current maximum City contribution of $16.00 per month toward a group medical and 'hospitalization plan .for all employees who retire after age 60. This terminates at age 65 if the retiree is eligible for medicare benefits. The second part of the resolution establishes a long -term disability insurance program. The purpose of LTDI is to provide the employee income to partially replace lost income in the event he becomes totally disabled. It is a supplement to sick - leave, which is usually insufficient to cover an employee for extended illness or periods of disability. The insurance provides 24 -hour coverage (on or off the job). Quotes were solicitated from insurance companies under the following guidelines: O Payment of 2/3 of the first $1500 of monthly salary (maximum $1,000 per month benefit to a disabled employee) • 30 -Day Elimination Period (prior to eligibility) Benefits payable to age 65 (or 12- months if this is longer) Four insurance companies were contacted and two responded. Both Aetna Insurance Company and Union Mutual declined to offer a quote. Standard Insurance Company and Mutual Benefit (MBL Group) did respond and proposed the following: Standard Insurance Company - 1.66% on the first $1500 of each employees' monthly earnings. Mutual Benefit - 1.910 on the first $1500 of each employees' monthly earnings. -3- I The Standard policy also provides that if the death of an insured occurs during a period for which monthly income is f-q payable, payments in the same amount will be continued to the surviving spouse or children for three months. Standard also has the City's group policy for life insurance and accidental death. It is the premier company in the field of long term disabilit y insurance plans for public entities. The six cities in the immediate vacinity that offer a disability insurance plan are all covered by Standard Insurance. It is recommended that the City Council authorize the City l,lanager to enter into a contract with Standard Insurance Company for the provision of long -term disability insurance. Resolution of Intention to Amend Contract with PERS The adopted replacement benefits package calls for the City to contract with.the Public Employees.' Retirement System the addition of a 1959 Survivor Benefit and a Survivor Continuance Plan (post - retirement survivors allowance). this, it is necessary for PERS to complete a Prior to instituting valuation study. PERS has just finished this study, and is sending us the ' results along with the Resolution of Intention to amend the contract for 1959 Survivors and Post - Retirement Survivors' Allowance. resolution will be included in our supplemental T kis y pp packet on Wednesday evening. After the Resolution of Intention is adopted, it must be followed by the adoption of an ordinance. This will appear on the Council agenda at the end of April. The Effective date for the implementation of these two benefits will be May 1, 1978. Deferred Compensation i The final element in the package of replacement benefits was intended to be a deferred compensation program. Once the costs , of the other replacement benefits were finalized, the remaining dollars g were to be distributed to each employee as a contr?.bution to a -4- i deferred compensation program. Based on.the actual results of the PERS valuation study for the Survivor Benefits, $162 per employee per year is available. This ambunts to.$6.75 per employee for each of 24 pay periods. However, the whole deferred compensation issue is in a state of uncertainty. The State of California, and a great many local agencies, with the approval of the Internal Revenue Service, have established deferred compensation programs permitting employees to defer a portion of their pay until retirement or termination. Deferred income is then treated for tax purposes as having been earned in the year received. These programs would be rendered ineffective under a proposed Internal Revenue Service rule published in the Federal Register of February 2,1978. The proposed regulations would tax currently, compensation which is deferred. Under the proposed rule, existing plarr can continue to operate only until 30 days after final regulations are published. If these regulations go into effect, they will dismantle deferred compensation programs. Until the matter is resolved, it is not wise for us to proceed with the establishment of a deferred compensation program. It is recommended that we hold this portion of the replacement benefits package in abeyance until the Social Security Committee is reconvened and has an opportunity to explore other options. It would be clarintention to come back to the City Council within the next month or so with a recommendation on how to proceed. Until an acceptable plan is developed, it is.recommended that the City set aside the funds that are due each employee from April 1st forward. These would be paid to each employee from April 1st forward once the issue is resolved. This will be effectuated by resolution of the City CL.uncZi l . —'-\ � I n Robdrt F: City Manager Time spent in preparation of report: 4 Jim Fiend kson Assistant ity Manager 10 hrs . @ $ 129.38 • u C ley UOUWL L t, �kk \kq its �Ar2,1L 5� l41$ 5. Acceptance of Gifts for New Library 6. Final Acceptances a. Tract 5256 - Sevilla Lane /Saratoga Foothills Development Corp. (Resolution 36 -B -176, Accepting Dedication of Streets) b. Tract 5319 - Shadowoaks /Saratoga Foothills Develop- ment Corp. (Resolution 36 -B -177, Accepting Dedication of Streets) c. Tract 5462 - Dagmar- Bonnet /Dividend Industries (Resolution 36 -B -178, Accepting Dedication'of Streets) d. Tract 5676 - Marion Road /Saratoga Foothills Develop- ment (Resolution 36 -B -179, Accepting Dedication of Streets) 7. Authorization to Call for Bids for Vehicle Inspection Services 8. Amendment to Joint Powers Agreement Re: Youth Service Bureau - Revise Number of Members and Requirement for a Quorum 9. Payment of Claims It was moved by Councilwoman Corr and seconded by Councilwoman Callon approval of the Items for Consent Calendar, with the exception of items 2 and 3. The motion was carried unanimously. C. ITEMS CONSIDERED SEPARATELY FROM CONSENT CALENDAR 2. Resolution 849, A Resolution of the City of Saratoga Upho ing the Appeal of David De Carion for a Use Permit (UP -361) to Allow a Tennis'Court at 19199 Monte Vista Drive Mayor Kraus indicated he is voting against this action in • keeping with his continents at the public hearing on March 15. It was moved by Councilwoman Corr and seconded by Councilman Kalb Resolution 849 be adopted. The motion was carried, 3 to 1, Councilman Kraus in opposition,.Councilwoman Callon abstaining. 3. Social Security Replacement Benefits a Resolution 85 -9.34, A Resolution Amending Resolution Z37-7 t� ing to fringe Benefits for Employees of the City of Saratoga b. Resolution 850, A Resolution of Intention to Amend tleract between the City of Saratoga and Public Employee's Retirement System The Council discussed a proposed amendment stipulating that the City's contribution to the approved replacement-benefits not exceed ttie amount the City would be required to contribute on behalf of its employees to the Social Security system. 1 It was moved by Councilman Kalb and seconded by Councilwoman Corr to adopt Resolution 85 -9.34, including the proposed aMen(iment, and direct the staff to insert the amendment into �,,.the resolution. The motion was carried unanimously. Jim Hendrickson, AssisCant City Manager, read into the record the following figures, which would be incorporated into proposed RCSOluCion 85U: 1) Increase in employer contribution rate: from 7.213: to 10.125 " /.. This represents a 2.9157 increase, 2) Annual dollar costs for first 12 months: estimated $91,150. This is based on an estimated payroll of It was moved by Councilman. Kalb and seconded by Councilwoman Corr the adoption of Resolution 850. Carried unanimously.