Item 12 - Release of Improvement Bonds for Diroma Estates_ AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members~e City Council
FROM: James L. Bowersox, City Mana~
INITIATED BY: Niall Fritz, Director of Development Services,/~b~
DATE: April 15, 2003
SUBJECT: Release of Improvement Bonds for Diroma Estates, TTM 99-01R; Robert
Lamagno, Applicant; APNs 314-860-01 through 16.
ABSTRACT
Diroma Estates is a 16-1ot subdivision located on Holly Oak Way and Twin Gables Court (Attachment
1). The project consists of 14 residential lots and 2 open-space lots. The public improvements for
Diroma Estates have been completed, and the applicant has requested the City accept them and
release the securities. The items covered under the securities include street improvements, sewer,
water, and storm drain facilities.
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMPACT
None.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Robert Lamagno.
RECOMMENDATION
It is recommended that the City Council approve the release of the following securities:
Letter of Credit for Faithful Performance No. 008 $225,374
Letter of Credit for Payment No. 009 $112,687
ACTION
M:\engserv\O3Reports\TTM 99-01R Diroma Estates~sumrnary, doc
1 of 8 April 15, 2003 Item
CITY OF POWAY
AGENDA REPORT
This report is included on the Consent Calendar, There will be no separate discussion of the report prior to approval by the City Council unless
members of the Council, staff or public request it to be removed from the Consent Calendar and discussed separately, if you wish to have this
report pulled for discussion, please fill out a slip indicating the report number and give it to the City Clerk prior to the beginning of the City Council
meeting.
TO: Honorable Mayor and Members. ,~he City Council
FROM: James L. Bowersox, City Manag~
INITIATED BY: Niall Fritz, Director of Development Services
Javid Siminou, City Engineer
Kenneth Quon, Senior Civil Eng-~neer
DATE: April 15, 2003
SUBJECT: Release of Improvement Bonds for Diroma Estates, TTM 99-01 R;
Robert Lamagno, Applicant; APNs 314-860-01 through 16.
BACKGROUND
Diroma Estates is a 16-1ot subdivision located on Holly Oak Way and Twin Gables Court
(Attachment 1). The project consists of 14 residential lots and 2 open space lots.
The public improvements for Diroma Estates have been completed, and the applicant has
requested the City accept them and release the securities. The items covered under the
securities include street improvements, sewer, water, and storm drain facilities. The
following securities were posted by the applicant for these improvements:
Letter of Credit for Faithful Per[ormance No. 008 $225,374 (Attachment 2)
Letter of Credit for Payment No. 009 $112,687 (Attachment 3)
FINDINGS
Staff concurs that the improvements have been constructed to City standards and are
ready to be accepted bythe City. The applicant has posted a one-yearWarranty Bond and
the subject improvement securities may be released.
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
2 of 8 April 15, 2003 Item#
Agenda Report
April 15, 2003
Page 2
FISCAL IMPACT
None.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Robert Lamagno.
RECOMMENDATION
It is recommended that the City Council approve the release of the following securities:
Letter of Credit for Faithful Performance No. 008 $225,374
Letter of Credit for Payment No. 009 $112,687
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ATTACHMENTS:
1. Vicinity Map
- 2. Letter of Credit for Faithful Performance No. 008
3. Letter of Credit for Payment No. 009
M:\engserv\03Reports\TTM 99-01R Diroma Estates~Agenda report.doc
3 of 8 April 15, 2003 Item #'~/
VICINITY MAP
4 of 8 ATTACHMENT 1 April 15, 2003 Item#
LETTER OF CREDIT
Faithful Performance
August 2, 2001
Director of Engineering Services
City of Poway
P.O. Box 789
Poway, CA 92074-0789
RE: IRREVOCABLE LETTER OF CREDIT g008
Robert J. Lam~guo
Agreement TrM 99-01R - 801-04-273
Gentlemen:
This Letter of Credit is given to fulfill the requirements of that certain agreement
entered into between the City of Poway, a political subdivision of the State of California,
h~reinafter referred to as "City" and Robert Lamagno, hereinafter referred to as "Principal",
covering certain improvements to be installed in that certain subdivision known and designated as
Dkoma Estates TIM 99-01R by principal in accordance with the agreement for construction of
public improvements.
As required by said agreement, and for that purpose only, we hereby establish in favor of City
and for the account of Principal our Irrevocable Letter of Credit No. 008 in the mount of Two
Hundred Twenty Five Thousand Three Hundred Seventy Four andNo/100 ($225,374.00), tobe
paid by drafts at sight on us if accompanied by the following documents:
City's written statement (signed by the Director of Engineering services, City
Manager, or City Attorney) certifies that there has been failure of the Principal to
perform the above agreement. Said statement shall declare the mount o the
sight draft on us and that the amount of this draft is, therefore, now due and
payable.
1T IS AGREED that the above funds are guaranteed for payment and said fund shall become trust
funds for the purposes set forth herein as required by Section 66499.6 of the Government Code of
the State of California.
16495 Bernardo Center Drive
Post Office Box 289022
San Diego, California 92198-9022
Tel (858) 451-9100 Fax (858) 487-0605
5 of 8 AITACHMEiqT 2 ~pi. lo, ~.'..,'~-., ,,.o,,,',-r tV'
Letter of Credit #008
August 2, 2001
Robert Lamaguo
Page Two
It is a condition of this Letter of Credit No. 008 that fi-om time to time the amount thereof may be
reduced as the required work progresses and is performed in accordance with the Improvement
Standards of the City of Poway, as authorized by Section 66499.7 of the Government Code. All
drafts under this letter of credit shall be marked:
Rancho Bemardo Community Bank
16495 Bernardo Center Drive
San Diego, CA 92128
Irrevocable Letter of Credit No. 008
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. Further, that all drafts shall be
delivered to City in accordance with Cal. Comm. Code §5112.
This Letter of Credit No. 008 shall be deemed automatically extended without amendmentl8
months from the present and annually thereafter unless sixty (60) days prior to any such date bank
shall notify City Clerk, by registered letter, that bank elects not to renew for such additional one
year. In any event, this guarantee Letter of Credit shall expire forty-five (45) days after City's
approval of the foregoing improvements and the recordation of the Notice of Acceptance.
RANCHO BERNARDO COMMUNITY BANK
[~/m D. G0~ Vice President
r --
APPRJDV. E,~AS TO FORM:
Cil~Attomey
6 of 8 April 15, 2003 Item
LETTER OF CREDIT
Payment (Labor and Materials)
August 2, 2001
Director of Engineering Services
City of Poway
P.O. Box 789
Poway, CA 92074-0789
RE: IRREVOCABLE LETTER OF CREDIT ~009
Robert J. Lamagno
Standard Agreement 1TM 99-01R - 801-04-273
Gentlemen:
This Letter of Credit is given to fulfill the requirements of that certain agreement
entered into between the City of Poway, a political subdivision of the State of California,
hereinat~er referred to as "City" and Robert Lamagno, hereinafter referred to as "Principal",
covering certain improvements to be installed in that certain subdivision known and designated as
Dh'oma Estates 'l'tM 99-01R by principal in accordance with the agreement for construction of
public improvements.
As required by said agreement, and for that purpose only, we hereby establish in favor of City
and for the account of Principal our Irrevocable Letter of Credit No. 009 in the mount of One
Hundred Twelve Thousand Six Hundred Eighty Seven and No/100 ($112,687.00), to be paid by
drafts at sight on us if accompanied by the following documents:
City's written statement (signed by the Director of Engineering Services, City
Manager, or City Attorney) certifies that there has been failure of the Principal to
perform the above agreement. Said statement shall declare the mount o the
sight draft on us and that the amount of this draft is, therefore, now due and
payable,
IT IS AGREED that the above funds are guaranteed for payment and said fond shall become trust
funds for the purposes set forth herein as required by Section 66499.6 of the Government Code of
the State of California.
16495 Bernardo Center Drive
Post Office Box 289022
San Diego, California 921§~9022
Tel (858) 451-9100 Fax (85~5) 4874)605
7 of IB ATTACHMENT 3 April 15, 2003 Item #
Letter of Credit #009
August 2, 2001
Robert Lamaguo
Page Two
It is a condition of this Letter of Credit No. 009 that from time to time the mount thereof may be
reduced as the required work progresses and is performed in accordance with the Improvement
Standards of the City of Poway, as authorized by Section 66499.7 of the Government Code. All
drafts under this letter of credit shall be marked:
Rancho Bernardo Community Bank
16495 Bernardo Center Drive
San Diego, CA 92128
Irrevocable Letter of Credit No. 009
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. Further, that all drafts shall be
delivered to City in accordance with Cal: Comm. Code §5112.
This Letter of Credit No. 009 shall be deemed automatically extended without amendmentl8
months from the present and annually thereafter unless sixty (60) days prior to any such date bank
shall notify City Clerk, by registered letter, that bank elects not to renew for such additional one
year. In any event, this guarantee Letter of Credit shall expire forty-five (45) days atter City's
approval of the foregoing improvements and the recordation of the Notice of Acceptance.
RANCHO BERNARDO COMMUNITY BANK
m D. G~ent
By! ~ L.~ugla~, ~esid~ ~
~PROYED~S TO F~:
Ci~ ~mey '
8 of 8 April 15, 2003 Item