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.