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1998-0629_PLAZZO DEVELOPMENT_Surety AgreementSURETY AGREEMENT THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as the "City" and Palazzo Development, a Limited Partnership, referred to as "Developer". WITNESSETH WHEREAS, City will issue Grading Permit No. 38292 to Developer to construct certain designated improvements, more particularly described in Exhibit "A" attached and incorporated herein by reference, which said improvements constitute a portion of that real property at the location of 31521 Via Estelita, commonly referred to as Palazzo Development. WHEREAS, San Juan Capistrano Municipal Code Section 8-3.05 requires the posting of financial security to secure the faithful performance and labor and materials for the grading and installation of improvements connected with issuance of grading permits. WHEREAS, San Juan Capistrano Municipal Code Section 8-3.06 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. Developees Improvements Obligations. Developer shall, at its sole cost and expense, provide and furnish all labor, materials and equipment for the installation of improvements set forth in Exhibit "A". The grading permit and plans, which further defines the improvements in Exhibit "A", are on file in the office of the City's Building Official, and all documents referenced in Exhibit "A" are incorporated herein by reference. 2. Developer's Security. Developer shall provide a Certificate of Deposit, subject to the approval of the City's City Attorney, to secure Developer's improvement obligations required under this agreement. The amount of the bond shall be $56,300 for that work described in Exhibit "A". This security of $56,300 shall also serve as security for restoration of the site. A copy of the surety instrument, as approved by the City Attorney, is attached as Exhibit "D". Surety Agreement Palazzo Development 31521 Via Estelita Page 2 3. Completion of Improvements. To ensure the protection of the public safety, health and welfare, Developer shall construct the improvements described in Exhibit "A" in accordance with the schedule as set forth in Exhibit "B", and the conditions as set forth in Exhibit "C". 4. Developer Default. In the event Developer does not complete the required improvements, including erosion -control measures within the time required, or abandons the project site, or suspends work for more than twenty working days other than previously prescribed, City shall have the right to immediately declare a default and to make demand on the surety for performance. 5. Restoration of Site. San Juan Capistrano Municipal Code Section 8-3.06 allows the City to require bonding as security to ensure against adverse aesthetic impacts arising from uncompleted grading and/or improvements. The purpose of this bonding shall be to restore the property to its original condition if the Developer defaults. This restoration shall include: A. Dismantle and/or demolish improvements; B. Grade property to its original contours as shown on the grading plan referred to in Exhibit "A'; C. Remove all debris and construction materials from the site; and D. Install erosion control, including hydroseeding, to the satisfaction of the Building Official. 6. Attorney's Fees. Developer agrees to pay City such sum as the court may adjudge 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 said 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 construction of said improvements. 8. i iamb litv_. Developer shall hold City, its officers, and employees harmless from any and all claims, demands, causes of action, liability or loss of any sort because of, or arising out of, the acts or omissions of Developer, his contractor, subcontractors, agents or employees in the performance of this agreement. Surety Agreement Page 3 Palazzo Development 3 15 21 Via Estelita In witness whereof, the parties have executed this agreement as ofd, 1998 at San Juan Capistrano, California. Developer 1 44 y: Steven J. Baileys President Approved as to Form: By: John R.S aw City Att ey City ZNAW By: Daniel W. McFarland Building Official Surety Agreement Page 4 Palazzo Development 31521 Via Estelita EXHIBIT "A" Item 1: Construction of all on-site grading (cut, fill and slope stabilization) operations in accordance with Grading Permit No.38292 and the Developer's plans and supporting documents as listed below: (A) Grading Plan for Palazzo Development, dated 6/2/98, prepared by Toal Engineering, Raymond R. Toal, RCE No. 16889. (B) Geotechnical Report for Palazzo Development, dated 4/29/98, prepared by So.Cal. Geotechnical, John Seminara (G. E., RG), GE No. 2294. Item 2: Construction of all on-site improvements in accordance with Grading Permit No. 38292 and Developer's grading plans referenced in Item 1 above, including, but not limited to: driveways, parking areas, retaining walls, terrace drains, down drains, subdrains, area drainage systems, and private storm drain systems not a part of Developer's Improvement Plans filed with the City Engineer. Surety Agreement Page 5 Palazzo Development 31521 Via Estelita EXHIBIT "B" SCHEDULE FOR COMPLETION OF IMPROVEMENTS Completion Date Tim 60 days after permit issuance Rough Grade Certification N/A (per City) Landscape Irrigation (Per grading plans for erosion and silt control) 10/15/98 Landscape Planting (Per grading plans for erosion and silt control) Surety Agreement Palazzo Development 31521 Via Estelita EXHIBIT "C" CONDITIONS FOR COMPLETION OF IMPROVEMENTS Page 6 A. The grading for this project shall be in strict conformance with the grading plans and related documents as described in Exhibit "A" and Grading Permit No. 38292. B. Grading operations shall commence within fourteen (14) calendar days after issuance of Grading Permit No. 38292. Winter grading will be conducted in strict accordance with the dynamic erosion -control plan submitted by the Developer, and approved by the City. This erosion -control plan reflects erosion 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 -control plans reflecting current conditions of grading shall be submitted within ten (10) days of cessation of work. These plans shall include erosion - control planting as required by the City. C. Except as specified in item "F" below, suspension in excess of twenty (20) working days of work authorized by Grading Permit No. 38292, including erosion -control measures and landscaping and irrigation, shall constitute default of this agreement. D. 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 (see item "F" below), shall be filed with the Building Official. This interim report shall conform to the grading code requirements for final compaction reports. E. 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. F. Grading operations suspended during the rainy season shall be resumed no later than 15 days from date of suspension. G. Installation of interim erosion -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 grade certification. Final erosion -control Surety Agreement Palazzo Development 31521 Via Estelita Page 7 landscaping and irrigation systems shall be installed prior to final inspection of the grading permit. H. All work shall be performed in strict observation of the Hours of Operation in accordance with San Juan Capistrano Municipal Code Section 8-107. I. Contractor shall adhere to conditions of haul route permit and encroachment permit issued by the City Engineer. Parking for construction crew is to be on-site.