18-0302_RD OLSON CONSTRUCTION, INC._Grading Surety AgreementIJ ORIGINAL
GRADING SURETY AGREEMENT
THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a
municipal corporation, hereinafter referred to as the "City," and RD Olson Construction Inc.
c/o South Coast Investors II, LLC, hereinafter referred to as "Developer."
WITNESSETH
WHEREAS, City will issue Precise Grading Permit No B17-1134 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 Plaza Banderas Hotel ("Project").
WHEREAS, San Juan Capistrano Municipal Code Section 8-2.08 requires the
posting of financial 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. Developer's Improvements Obligations. Developer shall, at its sole cost and
expense, provide and furnish all labor, materials and equipment for the Project depicted on
the plans entitled "PRECISE GRADING PLAN Plaza BANDERAS" as approved by the City
Engineer, on February 18, 2018. The grading permit and plans, which describe all the
work to be constructed pursuant to this Agreement, are on file in the office of the City's
Building Official.
Grading Surety Agreement, Permit # B17-1134 Page 1 of 10
61147,02100,24835741
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2. Developer's Security. Developer shall provide a cash deposit, irrevocable
letter of credit, certificate of deposit or a bond by a duly authorized corporate surety subject
to the approval of the City Attorney, or as approved by the City Engineer, to secure
Developer's improvement obligations required under this Agreement ("Security").
The amount of the Security shall be $1,101,246 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, Developer shall 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 "B"
are attached hereto and incorporated herein by this reference.
4. Developer Default. In the event Developer does not complete the required
improvements, including erosion and silt control measures within the time required, using
Best Management Practices (BMP) in implementing a Water Quality Management Plan in
full compliance with Orange County National Pollutant Discharge Elimination System
(NPDES) Storm Water Implementation Agreement and San Juan Capistrano Municipal
Code Section 8-14, or abandons the Project site, or suspends work for more than 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 Developer's surety for performance
of all obligations under this Agreement.
5. Restoration 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 security shall be to restore the property to
a safe and acceptable condition in the event the Developer defaults. 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 site; and
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61 147.0210W24A3 5741 2
D. Install erosion and silt control devices, including hydroseedig, /V
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 or treatments to satisfaction of the Director of
Engineering and Building.
6. Attorney's 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 if such action is determined
in favor of the City.
7. Developer's Work in Safe Condition. Developer shall perform all work in a
safe workmanlike manner and shall take such precautions as may be necessary to warn
and protect the public from any dangerous condition caused by the Project.
8. Liability. City, its officials, officers, employees, agents, and volunteers shall
not be liable for any injury to persons or property occasioned by reason of the acts or
omissions of Developer, its agents or employees in the performance of this Agreement.
Developer further agrees to protect, indemnify, and hold harmless City, 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 acts or omissions of
Developer, its agents or employees in the performance of this Agreement, including all
claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or
in part, the design or construction of the Project. This indemnification and agreement to
hold harmless shall extend to injuries to persons and damages or taking of property
resulting from the design or construction of said 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
Grading Surety Agreement, Permit # B17-1134 Page 3 of 10
61 147.02100-'4835741.2
�pRIG1N�C
SIONATM PAGE TO ORNOW SURETY AGREEMENT
BETWEEN
THE CRY OF SAN JUAN CAPOTRANO AND
RD Olson Construction Inc, c/o South Coast hrwstori IL LLC
IN WITNESS WHEREOF, the parties have swcuted "" Agmwr#G t as of
March 2nd ,2018
CITY J TRANO RD Olson Inc. cfo South
By. Coast Invssto ' LLC
ad , ed
BuNding OA1cIN gy; (�ti
6-
Printed Name_
Tide d.P
A Vwved as In Fomr.
By: --_ -
o� allinger, City Attorney
Printed Name �juia • .4 s-, �T , GV t j, A4,6, `a- -
Title P�st,u-z-
GnfnO Su" AW@ems . ParMR * 817-1134
61147A21OWNW7411 Pop 4 of 10
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SIGNATURE PAGE TO GRADING SURETY AGREEMENT 0111^/pp'�
BETWEEN V �114L
THE CITY OF SAN JUAN CAPISTRANO AND
RD Olson Construction Inc. c/o South Coast Investors 11, LLC
IN WITNESS WHEREOF, the parties have executed this Agreement as of
March 2nd
OF !AN ,,YUAN CAPISTRANO
Frio o, Building Official
2�1�
Approved as to Form:
By:
Jeff Ballinger, City Attorney
2018
RD Olson Co struction Inc. c/o South
Coast Inver
sto��
By:
Printed Name_
Title
M
Printed Name
Title
Grading Surety Agreement, Permit # B17-1134 Page 4 of 10
61 147.02100,24 8 3 5 741.2
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EXHIBIT"A" IV
SCHEDULE FOR COMPLETION OF IMPROVEMENTS
Task Completion Date
1. Pad grades 6/1/18
2. Storm drain 8/1/18
3. Curb & gutter 4/1/19
4. Parking lot 6/1/19
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61147,02100 2483 5 741,2
EXHIBIT"B" ORIGIN
AL
CONDITIONS FOR COMPLETION OF IMPROVEMENTS
1. 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 operations 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
silt control plan submitted by the Developer, and approved by the City. This erosion
and silt control plan reflects erosion and silt 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 winter grading, or permission for
winter grading is rescinded, static erosion and silt control plans reflecting current
conditions of grading shall be submitted within ten (10) days of cessation of work.
These plans shall:
1. Identify all pollutant sources including sources of sediment that may affect
the quality of storm water discharges associated with the construction
activity.
2. Include the erosion and sediment control planting and 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 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 plans and grading permit for subject property, including erosion and
sediment control measures and landscaping and irrigation, shall constitute default of
this agreement.
4. The supervising civil engineer and soils engineer shall file biweekly progress reports
of all grading operations with the Building Official. An interim compaction report, for
that work completed at the time 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.
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61147.02 100,248 i 5 741.2
ORIGINAL
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5. Contractor shall 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.
6. 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 permit.
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 shalt adhere to conditions of haul route permit and encroachment permit
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 signoff
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 City's rights or the
Developer or surety's obligations under this Agreement.
12. Warranty Period: 1 year from permit signoff by City.
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