Loading...
15-0116_COVE ESTATES_Bond Reduction Staff Memo MEMORANDUM December 21, 2015 TO: Maria Morris, Acting City Clerk FROM: Thom Coughran, Interim Public Works& Utilities Direct SUBJECT: Grading Bond Reduction —The Cove Estates -Tract 16168 This memorandum is authorization to reduce the grading bond posted for Tract 16168 -The Cove Estates from $79,317.00 to $7,931.70. The grading and on-site improvements that were secured by this bond have been sufficiently completed to warrant a 90% reduction of the bond. A Performance Bond was posted with International Fidelity Insurance Company, Bond Number#0611349. A copy of the Surety Agreement and Performance Bond is attached for your information. Please advise International Fidelity Insurance Company of the reduction. Attachment cc: file GRADING SURETY AC GOPT THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as the "City" and THE COVE ESTATES, LLC, a California Limited Liability Company, a Contractor referred to as "Developer". WITNESSETH Lc>,C) M WHEREAS, City will issue Precise Grading Permit No. B14-0748 to Developer to construct certain designated improvements which constitute a portion of that real property at the location of 26411, 26391, 26371, 26351, Via Flor inclusive of Tract 16168, San Juan Capistrano, CA, commonly referred to as VILLAGE ALIPAZ PHASE 3 (AKA THE COVE ESTATES) PTert�e Grading. �6, ,w � WHEREAS, San Juan Capistrano Municipal Codes Section 8-2.08 requires the posting of financial security to secure the faithful performance for the grading and installation of 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. Develo er's Improvements Obligations. Developer shall, at its sole cost and expense, provide and furnish all labor, materials and equipment for the construction of grading improvements depicted on the plans entitled "ROUGH GRADING PLAN FOR VILLAGE ALIPAZ PHASE 3"as approved by the City Engineer, on JANUARY 20T", 2015. 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#Bxx-xxxx Page 1 of 7 J Ir )k 2. Develo er's Securit . Developer shall provide a cash deposit, Certific e 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. The amount of the bond shall be$ 79,317.00 for all onsite grading improvements as approved by the City Engineer. This security shall also serve as security for restoration of the site. A copy of the surety instrument (performance bond), as approved by the City Attorney, is attached herein. 3. Completion of Improvements. To ensure the protection of the public safety, health and welfare, Developer shall construct all said improvements in accordance with the schedule as set forth in Exhibit "A", and the conditions as set forth in Exhibit "B". 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 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 8-2.09 allows the City to require bonding as security to ensure against adverse aesthetic impacts arising from uncompleted grading, drainage and/or improvements which includes illicit non- storm drain water discharge. The purpose of this bonding shall be to restore the property to a safe and acceptable condition if 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 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 Grading Surety Agreement, Permit#B14-0748 Page 2 of 7 as blankets, fiber matrices, catch basin filters, or e ''-os resistant soil coverings or treatments to satisfaction of the Ditector 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 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 olut of, the acts or omissions of Developer, his contractor, subcontractors, agents or employees in the performance of this agreement. In witness whereof, the parties have executed in Newport Beach this agreement as of January 16, 2015. Developer: THE COVE ESTATES, LLC A California Limited Liability Company By: Three G Development, LLC Managing Member } —- By: David J. Gianulias Managing Member City: Approved as t Fo Accepted; Vq By: City Attar By: Building Official Hans Van LigIbten Bret Caulder Grading Surety Agreement, Permit#B14-0748 Page 3 of 7 EXHIBIT "A" SCHEDULE FOR COMPLETION OF IMPROVEMENTS Task Completion Cate Precise Grading Permit (no retaining walls included): 1. Complete rough grading @ Upper Lot March 20, 2015 2. Start installation of onsite Storm drain work April 6, 2015 3. Start & Finish Soil Stabilization work Jan. 26 — March 20, 2015 4. Curb & Gutter work May 1 — 15, 2015 5. Walks, Railings & Fences August 5, 2015 6. A/C Paving June 1 2015 Grading Surety Agreement, Permit#B14-0748 Page 4 of 7 EXHIBIT "B" V - 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 Grading Surety Agreement, Permit#B14-0748 Page 5 of 7 filed with the Building Official. This interim report shall conform A'the gra.'ding 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. & 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 Bond: Bond shall be reduced to 90% upon signoff of precise grading permit and released upon completion of the 1 year warranty period 12. Warranty Period: 1 year from permit signoff. Grading Surety Agreement, Permit#B14-0748 Page 6 of 7 DEVELOPER ACKNOWLEDGMENT State of California County of Orange On l ! Zoi5 before me, i ''t,F C �rx( Ftt_Wc (here insert name and title of the officer) personally appeared :aV 17 - t who proved to me on the basis of satisfactory evidence to be the person whose nameW 61wsubscribed to the within instrument and acknowledged to me that&esgeA-hey executed the same in6RWAhetrauthorized capacity), and that by(ii ft�eMhe r signatureX on the instrument the personal, or the entity upon behalf of which the person s) 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. 1 111111111111111111 11111116 A.A. WITNESS my hand and official seal- YUN MAGEE Commission#2009675 Notary Public-California z t — orange County a Signature _ .� -- My comm.Expires Mar 3, 2017 (Seal) Grading Surety Agreement, Permit#614-0748 Page 7 of 7 ` 8 jfd` 611349 M 1,586.00 PERFORMANCE BOND ;�N KNOW ALL MEN BY THESE PRESENTS, that The Cove Estates, LLC a Limited Lia ility Compayn — as principal (hereinafter called "contractor", and —lltat.Lonal Fidelity insurance Company -- _.- __ as Surety (hereinafter called "Surety"), are held and firmly bound unto the City of San Juan Capistrano, as oblige (hereinafter called "city"), in the amount of Seventy Nine Thousand Three Hundred Seventeen and NO/100ths Dollars ($ 7g 317.p0 e� } for payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, fairly by these presents_ WHEREAS, contractor has, by written agreement dated ----__--_ , entered into a (describe agreement): - # ough Grading — - which contract is, by reference, made a part hereof. NOW, THEREFORE, the condition of this obligation is such that, if contractor shall promptly and faithfully perform said agreement 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 Contractor 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, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and includedin any judgment rendered. 2. Said Surety, for value received, hereby stipulates and agrees that no change, or extension of time, alteration, or modification of the contract documents, or of the work to be performed thereunder, shall in any way affect its obligation or this bond, and it does hereby waive the notice of any such change, extension of time, alteration or modification of the contract documents or of work the be performed thereunder. Executed this 17th day of_-September 2006, 2014 At California. PRINCIPAL The Cove Estates, LLC a Limited Liability Company (96TAR12ATION AND SEAL) cJeD C-,1At3�Auf-S, Me&kKg-rT SURETY International Fidelity Insurance Company r (NOTARIAZATION AN SEAL) Victoria M. Campbell, Attorney-in-Fact CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT I;iivj00P=§ 1189 State of California County of {�NOW On t'T - `before me, _ > �7 iJU�l�c7 !C E''t'� Here Insert Nary a and Title of the Officer personally appeared )AVLD Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(K whose name Fs are- subscribed to the within instrument and acknowledged eme that �k�qr executed the same iny h' authorized capacit }, and that gby hihgnatureA on the instrument the person(45), or the entity upon behalf of which the persons acted, executed the instrument. 80 y11MtMAOGE Conardsa�a�2009675 I certify under PENALTY OF PERJURY under the `" Notary Public-California laws of the State of California that the foregoing Orange county ' paragraph is true and correct. ) 'M Comm Exptrea Mar 3,2017 WITNESS my d official seal. � •� -_.. ti Place Notary Seal Above Signature: Sfgnaaute of Notary Pu it, OPTIONAL — Though the r`nformation below is not required by law, it may prove valuable to persons relying on the nruaalent .. and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: ( Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) 4 Signer's Name: _ .._ Signer's Name: ) ❑ Corporate Officer — Title(s): ❑Corporate Officer — Title(s): _. ❑ Individual ❑Individual ❑ Partner—❑Limited ❑General Top of thumb here ❑Partner — ❑Limited ❑GeneralTop of thumb here ElAttorney in Fact F-1Attorneyin Fact ❑ Trustee ❑Trustee ❑ Guardian or Conservator ❑Guardian or Conservator ❑ Other: _ _ ❑Other: Signer Is Representing: Signer Is Representing: ©2010 National Notary Association•NalionalNotary..org•1-800-US NOTARY(1-800-876-6827) Ilem#5907 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL,POIDE 1i6A 1< its.car'r7.F.'E`.,(�d',c:C'S2 X*-c .G`:c^,c:f'.,C^'.cY'>c'7f•:C:Y'4:C^c x";r.'3l7(7i f`+;C,tR(bt�CYci`'C•`C7CLC-?C1f7Y'A:r'.FY'.d7Y-'1('Y',.[1417!,.i-:G'.t^`.i„C".4 C'.C:l$t:4`l:f:L) .a C'x t,�-•C'n ". "'y State of California 'F County of ._ Orange On 9-17-14 before me, Mar Lee $a orito, Notary Public Dale Here Insert Name and Title of the Officer personally appeared Vic oria .M. cam bell Name(s)of Signer(s) v who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that fie/she/they executed the same in his/her/Rieif-authorized capacity(ies), and that by +tis/her/theif signature(s) on the instrument the P-0MARY LEE SAPORITO person(s), or the entity upon behalf of which the 1 Commission# 1964688 jr person(s) acted, executed the instrument. Z •`+" Notary Public-California z Los Angeles County ' I certify under PENALTY OF PERJURY under the My Comm.Expires Dec 24,2015 laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: 1 1.1 %, ZA-7 17 V-101_ Place Notary Seal Above na ur8 Oi' fart'Pr, ) OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: _ Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: . Signer's Name: ❑ Corporate Officer — Title(s): _ ❑Corporate Officer — Title(s): ❑ Individual ❑ Individual ❑ Partner — ❑Limited ❑General Top of thumb here ❑Partner — ❑Limited ❑General Top of thumb here I./Attorney in Fact ❑Attorney in Fact ❑ Trustee ❑Trustee ❑ Guardian or Conservator ❑Guardian or Conservator ❑ Other: --- ❑Other: ._ ) Signer Is Representing: Signer Is Representing: _ International Fidelity Insuranc y Company ©2010 National Notary Association•NationalNotary.org•1-800-US NOTARY(1 800-876-6827) Item#5907 Tel (973) 624-7200 POWER OF ATTORNL. Y INTERNATIONAL FIDELITY INSURANCE COMPANY ALLEGHENY CASUALTY COMPANY ° ONE NEWARK CENTER, 20TH FLOOR NEWARK, NEW JERSEY 07102-5207 {� t KNOW ALL MEN BYTHESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY,a corporation organized and, 94st�ing under the laws of the State of New Jersey, and ALLEGHENY CASUALTY COMPANY a corporation organized and existing under the laws of. a State of Pennsylvania,having their principal office in the City of Newark,New Jersey,do hereby constitute and appoint JACQUELINE KIRK, MELISSA NICOLE TETZLAFF, CHRISTINA JOHNSON, LINDE L. HOTCHKISS, ERIK JOHANSSON, LISA CLARK, VICTORIA M. CAMPBELL i Los Angeles, CA. their true and lawful attorney(s)-in-fact to execute,seat and deliver for and on its behalf as surety,any and all bonds and undertakings,contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed,required or perrrutted by law,statute rule,reggulation,contract or otherwise, and the execNon of such instrument(s) in pursuance of these presents,shall be as binding upon the said INtERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALY COMPANY, as fully and amply, to all intents and purposes,as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices. This Power of Attorney is executed,and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY and is granted under and by authors of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 20th day of July,2010 and by the Board of Directors of ALLEGHENY CASUALTY COMPANY at a meeting duly held on the 15th day of August,2400: "RESOLVED,that (11 the President,Vice President Executive Vice President or Secretary of the Corporation shall have the power to appoint,and to revoke the appointments of,Attorneys-in-Fact or agents with power and authority as defined or tirnited in their respective powers of a orney,and, to execute on behalf of the Corporation and affix the Corporation's seal thereto,bonds,undertakings, recognisances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and(2)any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians,agents for acceptance of process,and Attomeys-in-fact with authority to execute waivers and consents on behalf of the Corporation;and {3)the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond,undertaking,recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto,such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation,to be valid and binding upon the Corporation with the same force and effect as though manually affixed" IN WITNESS WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY have each executed and attested these presents on this 22nd day of July,2014, Y J STATE OF NEW JERSEYtiSVAr},c County of EssexSEAL l r � I 9G4 -. 1936 1E ROBERT W.MINSTER Executive Vice President/Chief Operating Officer NSSYLWAN� (International Fidelity Insurance Company) and President(Allegheny Casualty Company). On this 22nd day of July 2014, before me came the individual who executed the preceding instrument,to me personally known,and, being by me duly sworn, said he is the therein described and authorized.officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies;that the said Corporate'Seals and his signature were duly affixed by order of the Boards of Directors of said Companies, IN TESTIMONY WHEREOF, I have hereunto set m hand affixed my Official Seal, }`illi+Kl rAl r�t�!'r at the City of Newark,New Jersey the day and year first above written. '�'i VA w t+3 .,UBl-,.r• g A NOTARY PUBLIC OF NEW JERSEY y ` My Commission Expires April 16,2019 '-4,C0+�Alenri �* CERTIFICATION I,the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit,and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof,and of the whole of the said originals,and that the said Power of Attorney has not been revoked and is now in full force and effect. �y IN TESTIMONY WHEREOF, I have hereunto set my hand this day of SEP 17 2014 r { s 4 + MARIA RA3VGOB ,Assistant Secretary t