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18-0329_LAMMING, SCOTT_Memorandum to Release SuretyMEMORANDUM March 29, 2018 TO: Maria Morris, Acting City Clerk FROM: Steve May Public Works & Utilities Director SUBJECT: Grading Surety Release — B15-1473, 3 Strawberry Lane Residence This memorandum is authorization to release the grading Certificate of Deposit numbered 16502701 posted as surety for grading for B15-1473, 3 Strawberry Lane, San Juan Capistrano. Said Certificate of Deposit has been issued by Farmers & Merchants Bank in the amount of $25,858.00. The grading and on-site improvements that were secured by this surety have been sufficiently completed to warrant a release of the Certificate of Deposit. A copy of the Grading Surety Agreement and Certificate of Deposit is attached for your information. Please advise International Farmers & Merchants Bank of the surety release. 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CDC) () CD ° 00x W ° E� w C' s' ° a d CD O co o y = IN C � co fo 7• �' M Q1 N — 00 F �. co � � O � O R° 0O b C a 0 o• o azo y y O 7 N n B ° 8 0 A S a C A CL v m A GRADING SURETY AGREEM THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as the "City," and NAME of DEVELOPER, hereinafter referred to as "Developer. WITNESSETH WHEREAS, City will issue Precise Grading Permit No 1315-1473 to Developer to construct certain designated improvements upon a portion of that real property located at 3 Strawberry Lane, San Juan Capistrano, CA, such work being commonly referred to as "GRADING PLAN FOR 3 STRAWBERRY LANE" ("Project"). WHEREAS, San Juan Capistrano Municipal Code Section 8-2.08 requires the posting of a bond 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 "GRADING PLAN FOR 3 STRAWBERRY LANE" as approved by the City Engineer, on i'22- ( 2016. 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 #B15-1473 Page 1 of 7 61147.02100\24835741.1 2. _Developer's Security. Developer shall provide a bond by a duly authorized corporate surety subject to the approval of the City Attorney, or as approved by the City Engineer, on City approved forms to secure Developer's improvement obligations required under this Agreement_ Copies of approved irrevocable letter of credit forms and certificate of deposit form are available upon request. The amount of the bond shall be $25,858 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. 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 asset forth in Exhibit "A", and the conditions asset 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 Grading Surety Agreement, Permit #B15-1473 Page 2 of 7 61147 02100124835741.1 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 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 anyjudgment 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. L.iabilit . 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 #B15-1473 Page 3 of 7 61 14 7.02100 ,24 S 3 <.74 I I SIGNATURE PAGE TO GRADING SURETY AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SC -01 L_AMM 1NC-1 NAME OF DEVELOPER IN WITNESS WHEREOF, the parties have executed this Agreement as of CITY OF SAN JUAN CAPISTRANO By: Aa," 94'�— Paul Melby, Building Official Dated: 6 -10 —l6 2016 rycory" LA.MV\r %V NAME OF DEVELOPER l% Printed Name srrnryar�tn Ih,�� Title n w NF2 / LSl�tl.t?F_Q Approve ���'� _ __. By: Ballinger,ity Atto By: Printed Name Title Grading Surety Agreement, Permit #B15-1473 Page 4 of 7 6114 7.02 10 0124 8 7 5 74 1.1 SIGNATURE PAGE TO GRADING SURETY AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND -SC-)1T LAKtA tcyC, NAME OF DEVELOPER IN WITNESS WHEREOF, the parties have executed this Agreement as of CITY OF SAN JUAN CAPISTRANO By: �� Paul Melby, Building Official Dated: 6 ---5a -Ib Approved as to Form: By: , 2016 NAME OF DEVELOPER r U Printed Name r L1LXMt_ irjG Title (') w 4,jF-,a- 1 C?o � LOFQ Jeff Ballinger, City Attorney By: Printed Name Title Grading Surety Agreement, Permit #B15-1473 Page 4 of 7 6 1 147.02100\2483574 1.1 EXHIBIT"A" SCHEDULE FOR COMPLETION OF IMPROVEMENTS Task Completion Date 1. Complete Erosion Control Installation! 2. Start & Finish Soil Stabilization work /� 1 3. Complete Rough Grade Pads p g 4. Complete Onsite Driveways & Sidewalks 5. Curb & Gutter work 6. Complete Onsite Drainage 7. Complete Finish Pads 8. Complete Onsite Drainage ' 2 /1 9. A/C Paving Grading Surety Agreement, Permit #615-1473 Page 5 of 7 61147.02100\248-',5741 1 EXHIBIT"B" 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. Grading Surety Agreement, Permit #B15-1473 Page 6 of 7 61147.02100\24835741 1 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 shall 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. Grading Surety Agreement, Permit #B15-1473 Page 7 of 7 61 1470210012-83574 I. l TOAL ENGINEERING, INC. CIVIL ENGINEERS. LAND PLANNERS AND LAND SURVEYORS 139 AVENIDA NAVARAO SAN CLLMENTE, CA 92672 (949) 492-8586 FAX(949)49"625 MAILING ADDRESS RAYMOND R. TOAL, RCE 16889 P.0 BOX 3878 OLAV S. MEUM. LS 4384 SAN CLEMENTL, CA 92674 MICHAEL A. ROTH, LS 6211 Preliminary Construction Cost Estimate 3i4/2016 Job Description - Precise Grading Plan Scott Lamming Residence Job Address - No.3 Strawberry Ln., San Juan Capistrano, California Job Number - 15522 Estimated Unit Item Description Quantity Unit Price Amount Grading I Excavation & Embankment 170 cy $12.00 $2,040.00 Subtotal $2,040.00 Site Improvements I Construct concrete hardscape 86 sf $4.90 `f $421.40 2 4" pipe drain system 255 if $12.00 `'r 53,060.00 3 force main pipe 27 if t 0` �� S3.2�-00 � 4 12" atrium drain 5 ea S100,00 5500.00 ✓'_ 5 Construct concrete pipe slope anchors 4 ea $1 -[O -i" 1 &4(10-01 6 Construct retaining wall 5 ,I.F-Sr- sd5W,$bo -4606:00 6 a3a 7 Install 4" subdrain 90 if 516.00 51,440.00 8 install sump pump I ca s- ;' 4e-68 3fo., S24JO ` 9 Construct 18" wide concrete v -ditch 90 if !'7id 50-(Vd 10 Stabilized constrcution entrance/exit 1 ea $1,000.00 51,000.00 I I Material Storage Area 1 ea $300.00 5300.00 12 Concrete washout area I ea -15,04-84 /Sod -S5 0-m I fo 13 Silt fence 250 if $1.60 5400.00 14 Gravelbags 160 ea $1.10 S176.00 Subtotal Estimated Construction Cost _ S14,511.40 ii 10 10% Contingency $1,451.14 Total Estimated Construction Cost $15,962.54 CITY OF SAN JUAN CAPISTRANO IRREVOCABLE ASSIGNMENT OF POWER TO WITHDRAW TIME CERTIFICATE OF DEPOSIT GRADING SURETY AGREEMENT SECURITY DEPOSIT WHEREAS, SCOTT LAMMING, hereinafter referred to as the "Developer," has entered into that certain "GRADING SURETY AGREEMENT" dated t3t )nt 29 , 2016, and identified as project 3 Strawberry Lane (City Job No:B15-1473), located at 3 Strawberry Lane ("Agreement") with the City of San Juan Capistrano, hereinafter referred to as the "City'; and WHEREAS, the Developer is required by the Agreement to provide the City with a security deposit to guarantee (1) the Developer's full and faithful performance of all terms, conditions and covenants of the Agreement; (2) the payment of all contractors, subcontractors, laborers and materialmen who have furnished labor or materials to Developer for those improvements that are the subject of the Agreement; and (3) the performance of all warranty and guarantee obligations under the Agreement, collectively referred to as the "Obligations"; and WHEREAS, to provide for performance of the Agreement and the Obligations further described therein, the Developer has deposited a "Time Certificate of Deposit" numbered - i w S o 2. -yo j drawn by . FAFrny,es a M :R6 -ON J'T5 C ANk- (BANK/FINANCIAL INSTITUTION), a financial institution subject to regulation by the State of California and/or the Federal Government of the United States of America (`Bank"), in the amount of Twenty Five Thousand eight Hundred Fifty Eight Dollars ($25,858) with the City to be used by the City Engineer or his or her designee, to perform the Obligations under the Agreement which, in the opinion of the City Engineer or his or her designee, the Developer fails to adequately perform. NOW THEREFORE, the Developer hereby irrevocably assigns to the City Engineer or his or her designee and without any additional authority from the Developer, the sole power to withdraw any or all of the said funds which are needed to perform any of the Obligations contemplated by the Agreement, which have not been performed to the satisfaction of the City Engineer or his or her designee, or within the time specified in said Agreement, if any. The Developer irrevocably relinquishes any and all power to withdraw from the "Time Certificate of Deposit." This authorization and said "Time Certificate of Deposit" shall in no event be construed as a limitation upon the liability of the Developer in securing performance of the Agreement and the Obligations thereunder. Bank agrees that the Bank will transfer funds from the "Time Certificate of Deposit" to the City in accordance with instructions provided to the Bank by the City at the time of the draw upon receipt of one or more notices signed by the City Engineer or his or her designee that funds are required to satisfy the Obligations. The "Time Certificate of Deposit" shall be held by Bank until the City releases the "Time Certificate of Deposit" by letter to the Developer and Bank upon determination by the City Engineer or his or her designee that the Developer has fully and satisfactorily completed the Agreement and Obligations thereunder. Developer and Bank agree that: (1) until such time as the Obligations are fully performed, the "Time Certificate of Deposit" shall be the property of and shall be held in trust by Bank for the benefit of City and any statements issued by Bank for the same shall be 61147.02100\24821706.i B15-1473 CITY OF SAN JUAN CAPISTRANO delivered to City; (2) Developer shall not encumber or pledge the funds held in the "Time Certificate of Deposit" for any purpose; (3) Bank will not permit Developer or any other person or entity to withdraw funds from the "Time Certificate of Deposit," unless and until the Bank receives the signed original of the letter to Developer from the City Engineer or his or designee certifying that the Developer has fully and satisfactorily completed the Agreement and Obligations thereunder. IT IS FURTHER AGREED, in the event that the funds in the "Time Certificate of Deposit" should for any reason become unavailable for distribution to City prior to the completion of the Obligations, then within five (5) business days' notice from City, Developer shall provide a substitute security in a form and amount that is reasonably acceptable to City. IT IS FURTHER AGREED, Bank shall subordinate any present or future security interest it may have in the "Time Certificate of Deposit" to the security interest of City therein and shall not exercise any right of set-off, recoupment, counterclaim or any similar right in connection with any funds in the "Time Certificate of Deposit" until such time as the "Time Certificate of Deposit" has been released by City. As of the date hereof, Developer and Bank represent that there are no control agreements outstanding in respect of the "Time Certificate of Deposit" and neither is aware of any lien or encumbrance that may or will affect the "Time Certificate of Deposit." Date: —���— ltU FI:Czt�c.t� s d Mr �ur3 CSF�t�1k_ NA/FINANCIAL INSTITU' ION By: Its: A�NZ� - - Mailing Address: Date:2q NAME OF DEVEL PER By: 15 Its: -- Mailing Address: Signatures of those signing for the Developer and Financial Institution must be notarized and evidence of corporate authority attached. A copy of the Power -of -Attorney to local representatives of the Financial Institution must be attached hereto. 61147.02100124821706.i B15-1473 CITY OF SAN JUAN CAPISTRANO ACCEPTED: CITY OF SAN JUAN CAPISTRANO By:-- Its: City Engineer Mailing Address: 32400 Paseo Adelanto San Juan Capistrano, CA 92675 61147.02100\,24821706.1 1315-1473, ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ORANGE Onrtif . 2 2, 201 (P before me, ��jy L( K t4G � Notary Public, personally appeared :I Pc G�j�1i , who proved to me on the basis of satisfactory evidence to be the person(pr whose namex islWe subscribed to the within instrument and acknowledged to me that [)/she/tyey executed the same in l/s/her/tVeir authorized capacity(ios), and that by tis/her/tleir signature(,) on the instrument the person(,s'f, or the entity upon behalf of which the person) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ),�OY/1^/X eBLANCA E. RODRIGUEZ Commission # 2061935 Notary Public - CaliforniazOrange County Comm. Expires Apr 18. 2016 (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of (Cckrc\e On q , 201 (D before me, �ndt �oft t(insert name�offi er) personally appeared L'J UT -C ! n M ryY l rl(-A who proved to me on the basis of satisfactory evidence to)be the persono whose name(ps is/a�d subscribed to the within instrument and acknowledged to me that he/sp/tlfy executed the same in his/hXr/toir authorized capacity(igs), and that by his/her/th6ir signature on the instrument the person( f, or the entity upon behalf of which the person, acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. r.d♦Or� BLANCA E. RODRIGUEZ WITNESS my hand and official seat. j Commission # 2061935 Z a -r Notary Public • California z z Orange County r f Comm. Expires Apr 18, 2018 Signature (Seal) cL b i -S 12 1 9GL [ zse-,\oo i zocc i i9 (vdnd jxau uo pdnurtuoo s'arninuffzs) ONVHISIdVD Ndllf NVS 30 AAID CERTIFICATE OF DEPOSIT Not Subject to Check 0 kzzj, \ / � @ m * 2);, m, } 0�- } � / \ } ca >0 M _}2 ƒ §§)� o /§5$( ~ n G ! ]mtd 0 9<; m 7 \ g I «�:( o \ }\j / > (D# rz- \ \ / j; ) />0 \ ƒ 2 § 00 \ + go i - '( \\\ ; } §\ C)® / Q o i� j // \ . ^ (` 0 \\� , � { / $ 0 2 Ul z z 2 9 r . )> R \ Cl) \ CrI ■�