1991-0603_HARIN, D_Surety AgreementSURETY AGREEMENT FOR GRADING
AND PROPERTY RESTORATION
THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO,
a municipal corporation, hereinafter referred to as the "City" and David Harbin, referred
to as "Developer".
WITNESSETH
WHEREAS, City will issue Grading Permit No.21657-B and Building Permit No.
21659-B 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 commonly referred to as
31641 Avenida Evita.
WHEREAS, San Juan Capistrano Municipal Code 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 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. Developer's 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 letter of credit 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 $36,000.00 for that work described in Exhibit
"A". This security of $36,000.00 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
I'D"
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".
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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 a security to ensure against adverse aesthetic impacts arising
from incompleted 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:
Dismantle and/or demolish improvements;
2. Grade property to its original contours as shown on the grading plan
referred to in Exhibit "A";
3. Remove all debris and construction materials from the site; and
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 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. Liability. 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.
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In Witness Whereof, the parties have executed this agreement as
of _/dN� �� , 19_ZLat San Juan Capistrano, California.
Approved s to
By: JoMVbtw
City oKttorney
City of San Juan Capistrano
f
By: ante V. McFirland
Building Official
Principal(s)
i
By:
David Harbin
Title:
Developer
By:
Title:
By:
Title:
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0
EXHIBIT "A"
Harbin Residence
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ITEM 1: Construction of all on-site grading (cut, fill and slope stabilization) operations
in accordance with Grading Permit No. 21657-B and the Developer's plans and
supporting documents as listed below:
(A) Grading Plan for 31641 Avenida Avita prepared by Valley Consultants,
Eugene Bourbornais, RCE No. 31163 dated May 29, 1991.
(B) Geotechnical Report for 31641 Avenida Evita prepared by Geo Firm,
Inc., Hannes H. Richter, RCE No. 717 dated November 28, 1990.
ITEM 2: Construction of all on-site improvements in accordance with Grading Permit
No. 21657-B 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
City Engineer.
GM
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EXHIBIT 'B"
SCHEDULE FOR COMPLETION OF IMPROVEMENTS
Completion Date Task
6/15/91 Rough Grade Certification
7/l/91 Foundation
9/1/91
Rough Plumbing
9/1/91
Rough Electric
8/15/91
Structural Framing
11/15/91
Structural Final
11/15/91
Mechanical Final
12/15/91 Plumbing Final
12/15/91 Electrical Final
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EXHIBIT "C"
CONDITIONS FOR COMPLETION OF IMPROVEMENTS
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. 21657-B.
B. Grading operations shall commence within fourteen (14) calendar days after issuance
of Grading Permit No. 21657-B .
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 "E" below, suspension in excess of twenty (20) working days of
work authorized by Grading Permit No. 21657-B and Building Permit No. 21659-B ,
including erosion -control measures and landscaping and irrigation, shall constitute
default of this agreement.
D. Contractor shall control dust to satisfaction of Building Official or his deputy.
During grading, Contractor shall keep water truck on site and dampen work area,
grounds, and loaded trucks.
E. Grading operations suspended during the rainy season shall be resumed no later than
15 days from date of suspension.
F. 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 landscaping and irrigation systems shall be
installed prior to final inspection of the grading permit.
G. All work shall be performed in strict observation of the Hours of Operation in
accordance with San Juan Capistrano Municipal Code Section 8-107.
H. Parking for construction crew is to be on site.
onuo us¢
Is
April 24, 1992
Mr. David Harbin
P.O. Box 26229
Santa Ana, CA 92799
Re:
Dear Mr. Harbin:
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�siwu i.m 1961
1776
t No. 1027 - Security for
MEMBERS OF THE CITY COUNCIL
JERRY HARRIS
KENNETH E FRIESS
GARY HAUSGORFER
GIL JONES
JEFF VASQUEZ
CITY MANAGER
STEPHEN B JULIAN
Attached is your Irrevocable Letter of Credit No. 1027 issued by Farmers and Merchants
Bank, in the amount of $36,000.00. Said Irrevocable Letter of Credit was given to the
City as security for grading and property restoration on property located at 31641
Avenida Evita, San Juan Capistrano. Work has been completed to the satisfaction of the
City of San Juan Capistrano and Irrevocable Letter of Credit No. 1027 is hereby
released.
If you have any questions, please do not hesitate to call.
'Verryy_� t'rujlly� yours,,
Dawn M. Schanderl
Deputy City Clerk
Attachment
cc: Daniel W. McFarland, Building & Safety Manager
Farmers and Merchants Bank
This is to acknowledge that I have received Irrevocable Letter of Credit No. 1027 issued
by Farmers and Merchants Bank in the amount of $36,00 0.
DZrvid Harb n
Dated this day of April, 1992.
32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-1171
F IMI REQ}f
FARMERS & MERCHANTS BANK
302 Pine Ave.. Long Beach. CA . 90802
213. 437. 0011
May 31, lssl
STRONG • (O\SERIAT/1'E • FRlli\'OLS'
IRREVOCABLE LETTER OF CREDIT N0. 1027 RELEASED
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Dan McFarland
Gentlemen:
DATE 4 / j to ) qz
INmw w ►T>�_
This Letter of Credit is given to fulfill the requirements of that certain letter
agreement entered into between the City of San Juan Capistrano, a political subdivision
of the State of California, hereinafter referred to as "City", and DAVID F. HARBIN,
hereinafter referred to as "Principal" covering grading at 31641 Avenida Evita, grading
permit No. 21657B, by Principal and in accordance with said letter agreement.
At the request of the Principal, we hereby establish in favor of City and for the
account of Principal our Irrevocable Letter of Credit No. 1027, in the amount of
$36,000.00 (THIRTY SIX THOUSAND AND N01100 U.S. DOLLARS), to be paid by draft(s) at
sight on us if accompanied by the following documents:
1) City's written statement (signed by the City's Building Official or City
Attorney) certifying that there has been a failure of the Principal to perform
the above agreement. Said statement shall declare the amount of the sight draft
on us and that the amount of this draft is, therefore, now due and payable, and
2) This original Letter of Credit
Each draft must bear on its face the clause "Drawn under Farmers and Merchants Bank of
Ling Beach Letter of Credit No. 1027 dated May 31, 1992."
Partial draws are permitted hereunder.
We expressly agree with you that all drafts drawn under and in compliance with the terms
of this Letter of Credit shall meet with due honor upon presentation in accordance with
California Uniform Commerical Code 5112; that is, by not later than the close of the
third banking day following receipt of the documents.
This Irrevocable Standby Letter of Credit expires at our Main Office counters, 302 Pine
Avenue, Long Beach, California 90802 on May 31, 1992; however, it is a condition of this
Letter of Credit that it shall be deemed automatically extended without amendment for
successive one year periods from the present and all future expiration dates hereof
unless 60 days prior to any such date Farmers and Merchants Bank of Long Beach elects
not to consider this Letter of Credit renewed for any such additional period. Upon
receipt of you of such notice, you may draw on us hereunder by means of your draft on us
at sight for the full amount of this Letter of Credit, accompanied by your above noted
signed certification and this original Letter of Credit.
0 0
Farmers and Merchants Bank of Long Beach
Irrevocable Letter of Credit No. 1027
David F. Harbin
May 31, 1991
Page 2 of 2
This Letter of Credit is subject of the Uniform Customs and Practice for Documentary
Credits (1983 Revision) International Chamber of Commerce, Publication No. 400 ("UCPA")
and to the Uniform Commercial Code of the State of California ("UCC"). In the event of
any conflict betwen the UCPA and UCC, the UCC shall prevail and control.
Sincerely,
i
BY":uvu2�FlJ��J' c�
0 0
MEMORANDUM April 16, 1992
TO: Dawn Schanderl, Records Coordinator,
City Clerk
FROM: Daniel W. McFarland, Building & Safety Manager
Department of Engineering and Building
SUBJECT: Surety Bond Release
Please release performance bond for grading and property restoration as authorized by
grading permit No. 21657-B and building permit No. 21659-B at 31641 Avenida Evita,
San Juan Capistrano. This bond was secured by irrevocable letter of credit No. 1027
issued by Farmers and Merchants Bank (copy attached). All required work has been
completed to the satisfaction of the Building and Safety Division.
D WM/st
Attachment
STATUTORY PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS, that David Harbin
, as Principal, hereinafter called
CONTRACTOR, and Farmer's Merchant Bank ,
as Surety, hereinafter called SURETY, are held and firmly bound unto
the City of San Juan Capistrano, is Obligee, hereinafter called CITY,
in the amount of thirty-six thousand & 00/100 Dollars
($ 36,000.00 ) for payment whereof Contractor and Surety bind them-
selves, their heirs, executors, administrators, successors, and
assigns, jointly and severally, fairly by these presents.
WHEREAS, Contractor is required to provide a faithful per-
formance bond pursuant to the statutory requirements of the San Juan
Capistrano Municipal Code to guarantee certain work, more particularly
described as follows: Grading and property restoration as authorized
by grading permit No. 21657-B and building permit No. 21659-B at 31641
Avenida Evita, San Juan Capistrano, California.
NOW, THEREFORE, the condition of this obligation is such that,
if Principal shall promptly and faithfully perform said statutory
obligation, then this obligation shall be null and void; otherwise
it shall remain in full force and effect. Surety waives whatever
legal right it may have to require that a demand be made first against
the Principal in the event of default.
BE IT FURTHER RESOLVED, that:
1. As a part of the obligation secured hereby, and in addition
to the face amount specified, there shall be included costs and
reasonable expenses and fees, including reasonable attorney's fees,
0
0
incurred by City in successfully enforcing such obligation, all to
be taxed as costs and included in any judgment rendered.
2. Said Surety, for value received, hereby stipulates and
agrees that no change, extension of time, alteration, or modification
of statutory obligation, or of the work to be performed thereunder,
shall in any way affect its cbligations or this bond, and it does
hereby waive notice of any such change, extension of time, alterations,
or modifications, or of the work to be performed thereunder.
Executed this day of �Ge� R_ 19 at
at
�GrLL�r�s� , California.
APPROVED
(�)L�%AS(�TO, 'FORM.
1�-'S �A �
Jolin R. Shaw
ty Attorney
UliJV I ._ ,Irl ll d.A l� ... Ji.RIL
S GS J. ----------------
NOTARY PUBLIC.CALIFORNIA
7
Off
OFFICIAL SEAL
SANDRA L. THOMAS
NotaryPublic -California
PRINCIPAL OFFICE IN
ORANGE COUNTY
MY COMMISSION EXPIRES MAY 23, 1994
PRINCIPAL
Bavid Hai
Title Conti
(NOTARIZATION AND SEAL)
Page 2.- STATUTORY PERFORMANCE BOND
EMI • RUN[*\
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FARMERS & MERCHANTS BANK 7
302 Pine Ave.. Long Beaeh. CA. 90802
213. 437. 0011
May 31, 1991 STROA6 • (0\NER14T1If • IRIVADL)"
IRREVOCABLE LETTER OF CREDIT NO. 1027
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Dan McFarland
Gentlemen:
This Letter of Credit is given to fulfill the requirements of that certain letter
agreement entered into between the City of San Juan Capistrano, a political subdivision
of the State of California, hereinafter referred to as "City", and DAVID F. HARBIN,
hereinafter referred to as "Principal" covering grading at 31641 Avenida Evita, grading
permit No. 216578, by Principal and in accordance with said letter agreement.
At the request of the Principal, we hereby establish in favor of City and for the
account of Principal our Irrevocable Letter of Credit No. 1027, in the amount of
$36,000.00 (THIRTY SIX THOUSAND AND Ab/100 U.S. DOLLARS), to be paid by draft(s) at
sight on us if accompanied by the following documents:
1) City's written statement (signed by the City's Building Official or City
Attorney) certifying that there has been a failure of the Principal to perform
the above agreement. Said statement shall declare the amount of the sight draft
on us and that the amount of this draft is, therefore, now due and payable, and
2) This original Letter of Credit
Each draft must bear on its face the clause "Drain under Farmers and Merchants Bank of
Lnna Beach Letter of Credit No. 1027 dated May 31, 1992."
Partial draws are permitted hereunder.
Vve expressly agree with you that all drafts drawn under and in compliance with the terms
of this Letter of Credit shall meet with due honor upon presentation in accordance with
California Uniform Commerical Code 5112; that is, by not later than the close of the
third banking day following receipt of the documents.
This Irrevocable Standby Letter of Credit expires at our Main Office counters, 302 Pine
Avenue, Long Beach, California 90802 on May 31, 1992; however, it is a condition of this
Letter of Credit that it shall be deemed automatically extended without amendment for
successive one year periods from the present and all future expiration dates hereof
unless 60 days prior to any such date Farmers and Merchants Bank of Long Beach elects
not to consider this Letter of Credit renewed for any such additional period. Upon
receipt of you of such notice, you may draw on us hereunder by means of your draft on us
at sight for the full amount of this Letter of Credit, accompanied by your above noted
signed certification and this original Letter of Credit.
0 0
Fanners and Merchants Bank of Long Beach
Irrevocable Letter of Credit No. 1027
David F. Harbin
May 31, 1991
Page 2 of 2
This Letter of Credit is subject of the Uniform Customs and Practice, for Documentary
Credits (1983 Revision) International Chamber of Commerce, Publication No. 400 ("UCPA")
and to the Uniform Commercial Code of the State of California ("UCC"). In the event of
any conflict between the UCPA and UCC, the UCC shall prevail and control.
Sincerely,
FARUMS AM MFRCHAMS BANE OF LCM BEACH
r