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22-1129_SJC GROVES LP_Staff Memo - Security Deposit ReductionMEMORANDUM November 29, 2022 TO: Ken AI -Imam, Finance FROM: Thomas Toman, Public Works Director � C- SUBJECT: Grading Surety Agreement for Precise Grading Permit B19-1530 This memorandum serves as authorization to reduce the security deposit amount by 90% for Precise Grading Permit B19-1530, for the Groves Project located at 30333 Camino Capistrano, San Juan Capistrano CA. The cash deposit is in the amount of $876,611.43. A check request in the amount of $788,950.29 written to the applicant is being requested. The reduction of the cash deposit has been approved by the City Engineer and Building Official. Attachments — Deposit Reduction Request Letter Copy of Surety Agreement cc: City Clerk Building; file SJC Groves, LP C&C Development Co., LLC C&C Construction Services, Inc. October 19, 2022 Joe Parco, City Engineer City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: Security Release for The Groves Senior Apartments Grading and On -Site Improvements (1319-1530) - 30333 Camino Capistrano Dear Mr. Parco: Please accept this letter as our request to exonerate our security the above referenced improvements. Pursuant Exhibit B Conditions, Number 11 of the Grading Surety Agreement for On -Site Improvements (attached hereto for ease of reference) we are requesting release of $788.950.29 or 90% of cash deposit. The project is now finished, as -built record drawings for Grading and On-site Improvements (1319-1530) have been provided in PDF and CAD file formats to the Public Works Department. All final inspections have been completed and the final Certificate of Occupancy has been issued. Please provide me notification when the matter will be Agendized for City Council action to my email address at: toddCir c-cdev.cam. Thank you in advance for your assistance and consideration. Cordially, SJC Groves, LP C&C Development Co. LLC C&C Construction Services, Inc. Todd Cottle Att. 14211 YORBA STREET, SUITE 200 TUSTIN, CA 92780 (714) 714-0600 GRADING SURETY AGREEMENT Onsite Improvements THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as the "City," and SJC Groves LP, hereinafter referred to as "Developer." WITNESSETH WHEREAS, City will issue Precise Grading and On -Site Improvements Permit No. 1319-1530 to Developer to construct certain designated improvements upon a portion of that real property located at 30333 Camino Capistrano, San Juan Capistrano, CA, such work being commonly referred to as The Groves Onsite Grading ("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 FOR THE GROVES SENIOR LIVING" as approved by the City Engineer, on 9/14/20. 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 — Onsite Improvements, Permit #1319-1530 Page 7 of 8 61147.02100\24835741.2 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 $876,611.43 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 Grading Surety Agreement — Onsite Improvements, Permit #619-1530 Page 2 of 8 61147.02100\24835741.2 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. E. Protection and repair of existing public street, water, sewer and storm drain system(s). 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. Developers 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 — Onsite Improvements, Permit #1319-1530 Page 3 of 8 61147.02100\24835741.2 SIGNATURE PAGE TO GRADING SURETY AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SJC GROVES LP IN WITNESS WHEREOF, the parties have executed this Agreement as of CIT OF4AAN By: Carlos Yadi ,20_ J AN CAPISTRANO SJC GRO P By: Building dfficial Printed Name Taj j eaJ0 e Title OlvJAAv JTP] 9 y ti Approved as to Form: By: City Attorney Printed Name Title Grading Surety Agreement — Onsite Improvements, Permit #1319-1530 Page 4 of 6 61147.021 00\24835741.2 EXHIBIT"A" SCHEDULE FOR COMPLETION OF ON-SITE IMPROVEMENTS Task Completion Date 1. Clear and Grub October 2020 2. Erosion Control & BMP's 3. Export of Fill Material 4. Rough Grade & Chemical Grouting 5. Retaining Walls 6. Precise Grading 7. Utilities and Drainage 8. Flatwork November 2020 Nov -Dec 2020 Jan -Feb 2021 Feb -Mar 2021 Apr -May 2021 Apr -May 2021 June 2021 Grading Surety Agreement — Onsite Improvements, Permit #1319-1530 Page 5 of 8 61147.02100\24835741.2 EXHIBIT"B" CONDITIONS FOR COMPLETION OF IMPROVEMENTS 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 sixty (60) 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. 1 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 unless Developer has received approval from the City authorizing a suspension in excess of twenty (20) days. 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 Grading Surety Agreement — Onsite Improvements, Permit #619-1530 Page 6 of 8 61147.02100\24835741.2 filed with the Building Official. This interim report shall conform to the grading code requirements for final compaction reports. 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 unless the Developer has received approval from the City authorizing a suspension in excess of fifteen (15) days. 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 grade 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. The remaining 10% of the security given by Developer shall not 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 — Onsite Improvements, Permit #1319-1530 Page 7 of 8 61147.02100\24835741.2 EXHIBIT "C" Security provided in the form of a cash deposit for onsite improvements in the total amount as shown below: THE GROVES - PRIVATE ONSITE IMPROVEMENTS SOND AMOUNT GRADING AND EROSION CONTROL COST ESTIMATE MOBILIZATION 1 L5 $20,000.001 $20,000.00 OVERWXCAVATiON 2000 CY $5,001 $10,000.00 STREET SWEEPING, CON WASH, POTA 7 LS $20,000-001 $20,000,00 SAND BAGS {2 BAGS HIGH AND SILT 1500 LF $2.60 $3,900.00 TEMPORARY CONTRUCTION ENTRANCE 1 EA $1,500.00 $1,500.00 GRADING CUT 3270 CY $15.00 $49,050.00 GRADING FILL 3085 GY $15.00 $46,275.00 TOTAL GRADING EXPORT I 3718 CY $8.03$29,839.48 SUB TOTAL $180564-48 ONSITE IMPROVEMENT COST ESTIMATE CURS OPENING CATCH BASIN 2 EA $5,200.00 $10,400.00 ADA RAMP 61 EA $1,700.00 $10,200.00 WATER QUALITY DESILTING BASIN 3090 SF $10.00 $30.900.00 RETAINING WALLS 7600 SF $50.00 $380.000.00 BACK OF WALL "V" GUTTER 350 LF $8.50 $2,975.00 SIORETENTTON BASIN 1 LS $7,000.00 $7,000.00 STRIPING 1 LS $8,500.00 $8,560.00 SUB TOTAL 1 $ 449 975.00 PRIVATE SEWER COST ESTIMATE SEWER MANHOLE 2 EA $3,810,00 $7.620.00 LIFT STATION 1 EA $90,000.00 $90,000.00 SEWER STORAGE HOLDING TANK 1 EA $15,000.00 $15,000.00 4" SO 35 PVC PRIVATE SEWER LATERAL 110 LF 576.00 $8,360.00 6" SDR 35 PVC PRIVATE SEWER LATERAL 90 LF $80,00 $7.200.00 6" SCH 40 PVC PRIVATE SEWER FORCE 68 LF 595.00 $6,460.00 SEWER CLEANOUT 1 EA $710.00 $710.00 B" SDR 35 PVC PRIVATE SEWER LINE 3021 EA $80.00 $24.160.00 SUB TOTAL 1 $169.510.00 PRIVATE WATER COST ESTIMATE 4" SCH 80 PVC WATER LINE 1 601 LF $52.001 $3,120.00 B" DOUBLE DETECTOR CHECKASSEMBLY 1 EA $3.750.00 $3,750.00 SUB TOTAL $6,870.00 ..�� vnnuuw a %,011 r- imrKUvmen i a $796,919.48 10% Contingency $79,691.95 GRAND TOTAL—$876.611.43 om._