17-1212_SOUTH COAST INVESTORS II, LLC_Staff MemoMEMORANDUM
DATE: December 12, 2017
TO: Ben Siegel, City Manager
FROM: Steve May, Public Works ' 'ties Director a �I
Joe Parco, City Engine `.�, d
Hossein Ajideh, Senior Civi Enginee 9�-
Prepared: Joe Mankawich, Associate Engineer Y�V u t 1�' ,�% t�
SUBJECT: Rough Grading Cash Deposit Reduction — Plaza Banderas
The purpose of this memo is to inform you that the developer, South Coast Investors H LLC, has substantially
completed the rough grading improvements for the Plaza Banderas Hotel Site and are requesting reduction of the
cash deposit for such improvements. The Grading Surety Agreement for the project provides for the City
Engineer's determination of such requests. Review of the request by the Public Works & Utilities Department
has resulted in the following approved reduction:
Cashier's
Check
Obligee
Description
Original
Princliple
Percent
New
Number
Amount
Name
Complete
Amount
00099003007
City of San
Juan
Rough Grading for the Plaza Banderas
ISouth
Coast
Hotel Site
$420,450.00
Investors II
Capistrano
LLC
86%
$57,552.00
The remaining cash deposit will provide warranty for the grading performed, and insure there are adequate funds
available for repairs to water quality BMP's should they be required. The holding of this security is particularly
important to insure that the site is properly maintained during the upcoming winter storm season. Stam
recommends holding off full release of the rough grading surety until work on the hotel structure commences.
The Public Works Department will forward this request to the City Clerk for processing of a letter to the
developer's surety delineating the reduction of the security. Should you have any questions please contact me.
Attachments: 1. Grading Surety Agreement
2. Request for Reduction Letter
3. Rough Grading Certification
4. Rough Grading Permit Sign -off
Cc: Joel Rojas, Development Services Manager
Tom Toman, Assistant Public Works Director
George Alvarez, Project Manager
'GRADING SURETY AGREEMENT
THIS AGREEMENT Is made by and between the CITY OF JUAN CAPISTRANO, a
municipal corporation, hereinafter referred to as the "City, and South Coast Investors II,
L.L.C.. hereinafter referred to as "Developer."
WITNESSETH
WHEREAS, City will issue Rough Grading Permit No 815-0572 to Developer to
construct certain designated Improvements upon a portion of that real property located at
31692 EI Camino Real, San Juan Capistrano, CA, such work being commonly referred to
as Mission Inn Hotel ("Project").
WHEREAS, San Juan Capistrano Municipal Code Section 8-2.08 requires the
posting of finenclal security to secure the faithful performance for the grading and
Installation of related Improvements connected with issuance of grading permits including
the construction of drainage and protection devices and any other corrective work to
remove and eliminate engineering and geological hazards.
WHEREAS, San Juan Capistrano Municipal Code Section 8-2.09 authorizes the
Building Official to require additional bonding as security to ensure against adverse
aesthetic impacts arising from incomplete grading and/or Improvements from development
projects which have not been completed.
WHEREAS, the Building Official finds that the proposed Project site is highly
prominent and visible to the community, has unique topographic features or Involves
substantial grading of slope areas.
NOW. THEREFORE, in consideration of the premises and promises hereinafter
contained, City and Developer agree as follows:
1. Dovelocer's Imorovements Ob1lg8tions. Developer shall, at its sole cost and
expense, provide and furnish all labor, materials and equipment for the Project depicted on
the plans entitled 'ROUGH GRADING AND EROSION CONTROL PLANS" as approved by
the City Engineer, on `J ZL , 2016 (Date approved by On City
Engineer). The grading permit and plans, which describe all the work to be constructed
pursuant to this Agreement, are on file M the office of the City's Building Official.
Graft SuretyAweem@K Permit#B15-m Pape 1 of 7
61147.02100124835731.2 -
ATTACHMENT 1
2. 'Developer's Security. Developer shall provide a cash deposit, irrevocable
letter of credit, cert to ofdeposk orobond bya duly authorized corporate suretysubject
to the approval of the City Attorney, or as approved by the City Engineer, to secure
Developer's improvement obligations required under this Agreement ("8ecurity").
The amount of ths Secoft shall be $420,450 for all onsite grading improvements
as approved by the City Engineer. This Security shall also serve as security for restoration
of the Project site. A copy of the performance bond form, as approved by the City
Attorney, Is attached hereto as Exhibit "C" and Incorporated herein by this reference.
Copies of approved Irrevocable letter of credit forms and certificate of deposit form are
available upon request.
3. Completion of Improvements. To ensure the protection of the public safety,
health and welfare, Developershaii construct the Project in accordance with the schedule
as set forth in Exhibit "A", and the conditions as set forth in Exhibit "B". Exhibits "A" and 08"
are attached hereto and incorporated herein by this reference.
4. Developer Defautt. In the event Developer does not complete the required
improvements, Including erosion and slit control measures within the time required, using
Best Managemmrt Practices (BMP) In implementing a Water Quality Management Plan in
full compliance with Orange County National Pollutant Discharge Elimination System
(NPDES) Stone Water Implementation Agreement and San Juan Capistrano Municipal
Code Section 8-14, or abandons the Project site, or suspends work for more then twenty
(20) working days without written approval of the City, City shall have the right to
Immediately declare a default and to make demand on Developees surety for perfonnance
of all obligations under this Agreement.
5. 8e8taration of Site. San Juan Capistrano Municipal Code Section 8-2.09
allows the City to require bonding as security to ensure against adverse aesthetic impacts
arising from incomplete grading, drainage and/or Improvements which includes illicit non -
storm drain water discharge. The purpose of this securHy shall be to restore the property to
a safe and acceptable condition in the went the Developerdefouits. This restoration shall
include but not be limited to the following:
A. Dismantle and/or demolish improvements;
B. Grade property to its original contours as shown on the approved
grading plans.
C. Remove all debris and construction materials from the ale; and
Oradtng 8ureyr Aigroenv4 Permit X15.0872 Page 2 of 7
61147-021=41357412
D. Install erosion and silt control devices, including hydroseeding, to
Insure a uniform vegetative cover, or equivalent stabilization
measures which include the use of such Best Management Practices
as blankets, fiber matrices, catch basin filters, or other erosion
resistant soil coverings ortreatrnents to sadafecdon of the Director of
Engineering and Building.
6. Mgmays Fees. Developer agrees to pay City such sum as the court may
judge as reasonable for the legal services of an attorney representing the City in an action
brought to enforce or Interpret the obligations of this agreement, and such sum shall be
made a part of any judgment in such action against Developer Usuch action Is determined
In favor of the City.
7. Developers Work 113 Safe Condition. Developer shall perform all work In a
safe workmanike manner and shall take such precautions as may be necessary to wam
and protect the public from any dangerous condition caused by the Project.
S. Iia, biNv. City, its officials, of scars, employees, agents, and volunteers shall
not be liable for any Injury to persons or properly occasioned by reason of the ads or
ornissions of Developer, Its agents or employees In the performance of this Agreement.
Developerfurther agrees to protect, Indemnify, and hold harmless Chy, its officials, officers,
employees, agents, and volunteers from any and all claims, demands, causes of action,
liability or loss of any sort, because of, or arising out of, the alleged ads or omisslons of
Developer, its agents or employees In the performance of this Agreement, including all
claims, demands, causes of action, liability, or kiss because of, or arising out of, in whole or
In part, the design or construction of the Project. This indemniRcmtion and agreement to
hold harmless shall extend to Injuries to persons and damages or taking of property
resulting from the design or construction of sold Project and in addition, to adjacent
property owners as a consequence of the diversion of waters from the design or
construction of drainage systems, streets and other Improvements.
SIGNATURES ON FOLLOWING PAGE
GrsdkV Surety Agreement, PeM* #816.0872 Pape 3 of 7
61147MIOMM37412
SIGNATURE PAGE TO GRADING SURETY AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO AND
SOUTH COAST INVESTORS Il, LLC.
IN WITNESS WHEREOF, the parties have executed this Agreement as of
MUM 13 , 20 Ib
.10
CITY SAN JU APISTRANO SO �TINVE S II. L.L.C.
By:
Sp Paul Iby, Bulldinq OfFcial
Printed Name_l�iili�n
Dated: �-is-�� --
Appn�ved as to Foran:..
By: _
Jeff BA
Attorney
Grading Sureh► Agreement, Pwmft 981548n
61147MI00048357412
i . :_ , L:':.
Mow
By:
Printed Nam
rifle
Page 4 of 7
EXHIBIT"A"
SCHEDULE FOR COMPLETION OF IMPROVEMENTS
iuk Comaledon Date
1. CompleDs Installation of site perimeter
2. Complete Clearing and Grubbing
3. Start wick drain system
4. Complete site consolidation
5. Complete Rough Pad
6. Final Rough Grade Certification
Grading SUMV AgreemeK PeMN 06154872
br I4n 0210OU4 §337+12
Completed
Completed
June 15
July 30
August 25
September 15
Page 5 of 7
EXHIBIT"B"
CONDITIONS FOR COMPLETION OF IMPROVEMENTS
The grading for this project shall be in strict conformance with the grading plans as
well as the San Juan Capistrano Municipal Code.
2. Grading operatkms shall commence within fourteen (14) calendar days after
Issuance of Grading Permit.
Winter grading will be conducted in strict accordance with the dynamic erosion and
9111 control plan submitted by the Developer, and approved by the City. This erosion
and elk control plan reflects erosion and elk mitigation measures for expected
grading conditions as the work progresses through the winter season and shall not
be amended except with the permission of the City.
In the event Developer does not wish to Implement wintergrading, or permission for
winter grading Is rescinded, static erosion and elk control pians reflecting current
conditions of grading shah be submitted within ten (10) days of cessation of work.
These plans shall:
1. Identify all pollutant sources Including sources of sediment that mayaffeot
the quality of storm water discharges associated with the construction
ac"Wty.
2. Include the erosion and sediment control planting and hydroseeding to
Insure a unUbnn vegetative cover or equivalent stabM atlon measures which
Include the use of such Best Management Practices as blankets, fiber
matrices, catch basin filters or other erosion resistant soil covering or
treatments to the satisfaction of the City Engineer.
3. Suspension in excess of twenty (20) working days of work authorized by approved
grading plats; and grading permit for subject property, including erosion and
sediment control measures and landscaping and irrigation, shall constitute defaultof
this agreement.
4. The supervising civil engineer and soils engineershall file biweekly progress reports
of ap grading operations with the Building Offidal. An interim compaction report, for
that work completed at the tithe work Is suspended for the rainy season, shall be
filed with the Building Official. This interim report shall conform to the grading code
requirements for final compaction reports.
Gmdkv Sur* Agraemwt, Pam* OB164872 Pegs a 0f 7
61147 0210MM357412
5. Contractorshall control dust to the satisfaction of the Building Official or his deputy.
During grading, Contractor shall keep water truck on site and dampen work area,
grounds, and loaded trucks.
S. Grading operations suspended during the rainy season shall be resumed no later
than 15 days from date of suspension termination.
7. Installation of Interim erosion and sediment control devices and systems shall
commence within seven (7) days after rough grade certification has been approved
by the Building Official and must be completed within fifteen (15) days of rough grad
certification. Final erosion and sediment controls devices, planting, landscaping and
Irrigation systems shall be Installed prior to final Inspection of the grading peril.
8.
All work shall be performed in strict observation of the Hours of Operation In
accordance with San Juan Capistrano Municipal Code Section 8-1.03.
9. Contractor shall adhere to conditions of haul route permit and en a+oachmentpermk
Issued by the City Engineer.
10. Parking for construction crew Is to be on-site.
11. Exoneration of Security: Developer's security shall be reduced to 90% upon signoif
of precise grading permit. No security given by Developer shall be released until the
expiration of the warranty period and until any claims filed during the warranty
period have been settled. Nothing herein shall limit the CIVe rights or the
Developer or surety's obligations under this Agreement.
12. Warranty Period: 'I year from permit signoff by City
Gmdhg Sw* !int Pemdt 0016-M72 -M72 Pape 7 of 7
61/1702100 M33741.2
CITY OF SAN JUAN CAPISTRANO
�i i
"' g Address Paseo a nto n Juan no, Calffaw =75
www senjuencapotrano.am
INVOICE
FRIESS PROPERTY INVESTMEW Pell, Bomber: B1"an
32332 CAMINO CAPISTRANO Addma: 31892 EL CAMINO REAL.
SAN JUAN CAPISTRANO, CA 928 InWce Date: &2312016
Fee Description Acct Code & Coat Ctr Unite Amount
GRADING REFUNDABLE DEPOSLT 9044 000-23302.00000.238 I_ $4200.450.Qp
TOTAL. AMOUNT DUE: $420,450.00
RECEIPT NUMBER
COLLECTED BY
PAYMENT METHOD CHECK NUMBER
CITY OF SAN JUAN CAPISTRANO
32400 Paseo Adelanto
SAN JUAN CAPISTRANO, CA 92675
(949) 493.1171
Paid By SOUTH COAST INVESTOR! Contractor FRIM PROPERTY INVES'
32332 CAMINO CAPISTRANO
SAN JUAN CAPISTRANO CA 02615
Permit Number 615-0872 Site Address
Receipt Number GM
Paid Date 5JZ3me
Check No 98003007
Payment Method CHECK
Fees
GRADING REFUNDABLE DEPOS
31602 EL CAMINO REAL
Description
Plaza Banderas Hateh (Inn at the Mlaslon) - Rough Oredin
FEE TOTAL $420,45000
$420.458.00'
•004900300711- I: L 2 L000 2484486 L 505303ir
CASHISIrS CHECK
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aevm.THEOF ROOF ""CITY OF SAN JUAN CAPISTRANO"
' Four hundred twenty thousand /our hundred fifty dottare and no cents•»
"'5420,430.00"
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INTRO I
•004900300711- I: L 2 L000 2484486 L 505303ir
South Coast Investors 11, LLC
31866 Camino Capistrano
San Juan Capistrano, CA 92675
(949) 496-1316
October 12, 2017
Hossein Ajideh
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Re: Request for 90% Release of Rough Grading Security Deposit
Dear Hossein,
On behalf of South Coast Investors II, LLC, I am writing to request the 90% release of our
rough grading security deposit. We have received approval on our as -built rough grading plans
and delta rough grading plans, submitted our geotechnical report and rough grading
certification from our civil engineer, and performed a final inspection.
The rough grading security deposit was in the amount of $420,450.00. The City is to
keep 10% of the deposit, which amounts to $42,045.00, in addition to the following:
• Stabilized construction entrance $8,000.00
• Inlet protection $4,000.00
• Gravel bags $2,560.50
• Gravel bags velocity reducer $946.50
• Total: $15,507.00
Thus, the City would retain $57,552.00 and return $362,898.00 to South Coast Investors II,
I.I.C. We would like to have the security deposit released as soon as possible. Please let me
know if there is anything we can do to expedite the process. I can be reached by phone at (949)
606-4260 and by email at ieriffith@missioncommercial.com.
Sincerely,
V4�*
Jake Griffith
ATTACHMENT 2
HUNSAKER
&ASSOCIATES
I R V I N E, I N C.
PLANNING
Date: May26,2017
ENGINEERING
SURVEYING
GOVERNMENT RELATIONS
City of San Juan Capistrano
IRVINE
Building & Safety Division
LOS ANGELES
32400 Paseo Adelanto
PALM DESERT
San Juan Capistrano, CA 92675
RIVERSIDE
SAN DIEGO
Attention: City Grading Inspector
Subject: Civil Engineer's Verification of Rough Grading
14
Project: Plaza Banderas
26851, 26871 & 26891 Ortega Highway
PRINCIPALS,
31692 EI Camino Real
DAVID FRATTONE
Permit No: B15-0872
FRED GRAYLEE
BRADLEY HAT
PAUL HUDOLESTON
I certify to the satisfactory completion of rough grading, including grading to
KAMAL KARAM
approximate final elevations; property lines located and staked; cut and fill
DODCLAS STALEY
slopes correctly graded and located in accordance with the as -built plan;
KRI$WEOER
swales and terraces graded, ready for paving; berms installed, and required
JOSEPH L WMHTMAN
drainage slopes provided. I further certify that where report or reports of an
Engineering Geologist and/or Soils Engineer have been prepared relative to
this site, the recommendations contained in such reports have been
incorporated in the design.
Sincerely,
FOUNDING PARTNERS
RICHARD HUNSAKER
TOM R. M, (ANNON
JOHN A. MILHLER
DOUGLAS 4 SNYDER
Tlh eHuRlm.
Irvine,( liLnni,
42p1R-ItILI
N.1VI Sfl 1-111111 PH
(4440 18 "7So F%
—hun,sk—, nm
HUNSAKER & ASSOCIATES IRVINE, INC.
l t��
Jonathan Petke
P.E.: 67585
W.O. 406.2
Prolan Mission IN,,
Is.
ATTACHMENT
n;1r_ ISSUED Inspection Job Card PERMIT H BER~
Aay26,2016 Stu,ouanecAdreno, I g15-0872
sao a (949)"3-611'
9 Cepbtraeo, CA a2G%a
OB DESCRIPTION Peons (sa§)ata-eBs+
Mara eanderas Howl- (Inn at the Mission) - Rough Grading 31692 EL CAMINO REAL
SOUTH COAST INVESTORS I. LLC -Owner
TR 103 LOT 12 FOR OF LOT
INSPECTION REQUEST LINE 19491493-3172
ONLINE INSPECTIONS or RESULTS at www.sanjuancapistrano.org
You must furnish PERMIT NUMBER. JOB ADDRESS and the TYPE OF IIISPECTION at the time of inspection request
Inspection requests received before4 W pm will be scheduled on the next business day
JOB CARD AND APPROVED PLANS MUST BE MADE.AVAILABLE TO INSPECTOR UNTIL FINAL APPROVAL
This permit will expire Eno approved inspecton is performed within a period of 180 days
GENERAL I MISCELLANEOUS DATE / SIGNATURE
NOT COV OR CONCEAL E WORK BELOW UNTIL THE
FOLLOWING APPLICABLE ITEMS HAVE BEEN SIGNED
UNDERGROUND /FOUNDATIONS DATE / SIGNATURE
Tem ora
Power released
le-e—r'C
elease
Pregrada Meeting
ewer orvice on `
oR u -T- ra a
afar Service
nderg.oun Plumbing
as es Ina
Underground 'ater Supply
�oo(LTiaTns / uars
R
n ergroun ectn- a
o l e home a up I I les
de y
UnT—round as Line
—
Urease Interceptor +
Liter Groun
Zr`rease l3,ecep[ace
re- ab
Footings /For�tee
POOL & SPA DATE / SIGNNTURE
Equipment & Locabon —_
DO NOT COVER OR POUR CONCRETE UNTIL ABOVE S GNFD OFFPool
rG a Gunde -$tee
ROUGH DATE / SIGNATURE
oc eature - oobngs
Floor Sheathing
-gT'iTumbin-- g�_ress�ure Test
Pre -Insulation
e- e
re Lam
I DO NOT POUR DECKS THAT WILL COVER THE FOLLOWING'
UN71L THEY HAVE BEEN SIGNED
Bar a s / ard'ware
Roof Sheathing iap ragm
Elect. Conduit - Underground
Fine Sprinkler Rouoh Hy
a - n ergroun - est
Backwash - Lines- P - Trap
DO NOTNIS APPLYPVE LASTERCOATUNTIL THE POLLOWING hPPLICABLE
RoughMechanical eating Brits
oug ectncal 4'l
Pool Equip /Elec /Plumbing - Final
ou h PIS umbing /Top -out i/
-Penang 7g Foot. larms / Preplaster
muugh ridninig y
IT IS IMPERATIVE THAT A FINAL APPROVAL BE OBTAINED PRIOR TO
USING THE SWIMMING POOL COVERS MUST BE ON POOI S AT THE
TIME OF FINAL INSPECTION
DO NOT COVER OR CONCEAL THE WORK ABOVE UNTILTHE
FOLLOWING APPLICABLE ITEMS HAVE BEEN SIGNED
INTERIOR / EXTERIOR DATE r SIGNATURE
Foci / Spa - Systems Final
Exterior Lath(
BUSINEss LICENSE SUB -UST VERIFICATION FORM MUST BE
SUBMITTED AND APPROVED PRIOR TO FINAL INSPECTION
Insulation
Brown Coat
FINAL INSPECTIONS FATE / SIGNATGR
Drywall
Interior Lan
,CARBON MONOXIDE/SMOKE DETECTORS
ower an
7T4,s
4
DO NOT COVER OR CONCEAL THE WORK ABOVE UNTIL THE
FOLLOWING APPLICABLE ITEMS HAVE BEEN SIGNER
MASONRY DATE/SIGNATURE
i
MECHANIIII;FCFINAL (9491493-317
ELECITHA-NAL 49 493-317 --
q 493-3172
Foundation I
FN.. 194 4 - _
1st Grout LiR
I A
2nd Grout Lift All applicable finals above must be signed`of#be`lr1`_�'/
Wali Drainage building final.
rem- acbacb !�51
ATTACHMENT