Item 13 - Release of Improvement Bonds for Cypress Pt._ AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana.~
INITIATED BY: Niall Fritz, Director of Development Services~/t~
DATE: April 15, 2003
SUBJECT: Release of Improvement Bonds for Cypress Point, TTM 89-13R, Phase 1, Unit 3;
Old Coach Realty, Inc., Applicant; APNs 277-210-01 through 09.
ABSTRACT
Cypress Point is a 9-lot residential subdivision located on Cypress Court in the Heritage Development
(Attachment 1 ). The public improvements for Cypress Point 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, storm drain facilities, and a 500,O00-gallon
reservoir and water pump station to serve both this project and the Heritage Ranch Estates
development.
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMPACT
None.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
David Davis, Old Coach Realty, Inc.
RECOMMENDATION
It is recommended that the City Council approve the release of the following securities:
Performance Bond No. BE2653558 $2,063,439.00
Payment Bond No. BE2653558 $1,031,719.50
Monument Bond No. BE2653559 $ 4,000.00
ACTION
~:\~)~.gs~\03Reports\TTM98-02Her[tageRanchEstates~summary.doc April 15, 2003 Item
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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 er 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 Jt to the City Clerk prior to the beginning of the City Council
meeting.
TO: Honorable Mayor and Members..o~J.~e City Council
FROM: James L. Bowersox, City Managj~il~
INITIATED BY: Niall Fritz, Director of Develop~nt Services ~
Javid Siminou, City Engineer ~-'
Kenneth Quon, Senior Civil Engineer y.o~.
DATE: April 15, 2003
SUBJECT: Release of Improvement Bonds for Cypress Point, TTM 89-13R,
Phase 1, Unit 3; Old Coach Realty, Inc., Applicant; APNs 277-210-01
through 09.
BACKGROUND
Cypress Point is a 9-lot residential subdivision located on Cypress Court in the Heritage
Development (Attachment 1).
The public improvements for Cypress Point 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, storm drain facilities, and a 500,000-
gallon reservoir and water pump station to serve both this project and the Heritage Ranch
Estates development. The following securities were posted by the applicant for these
improvements:
Performance Bond No. BE2653558 $2,063,439.00 (Attachment 2)
Payment Bond No. BE2653558 $1,031,719.50 (Attachment 3)
Monument Bond No. BE2653559 $ 4,000.00 (Attachment 4)
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-year Warranty Bond and
the subject improvement securities may be released.
2of 13 April15,2003 Item#
Agenda Report
April 15, 2003
Page 2
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMPACT
None.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
David Davis, Old Coach Realty, Inc.
RECOMMENDATION
It is recommended that the City Council approve the release of the following securities:
Performance Bond No. BE2653558 $2,063,439.00
Payment Bond No. BE2653558 $1,031,7'19.50
Monument Bond No. BE2653559 $ 4,000.00
- JLB:NF:JS:KQ:pjp
ATTACHMENTS:
1. Vicinity Map
2. Performance Bond No. BE2653558
3. Payment Bond No. BE2653558
4. Monument Bond No. BE2653559
M:~engserv~O3Reports\'l~-M 89-13R Cypress Point, Agenda report.doc
3of 13 April 15,2003 Item#
~ COACH ROAD
I~RESS POINT
OLD COACH
WA Y DRIVE
COACH
ROAD
ESPOLA ROAD
//
NOT TO SCALE
4 of 13 ATTACHMENT 1 April 15, 2003 Item
£ 4D NO. BE2653558
Premium: $18,571.00
B~d re~s annually ~ excnerated
- PERFORMANCE BOND
( TM 89-13R, The Heritage, Phase 1, Unit 3, Cypress Point )
We, Old Coach Realty, Inc., as Principal, and Gulf Insurance Company ,
as Surety, jointly and severally, firmly bind ourselves, our heirs, representatives,
successors and assigns, as set forth herein, to the City of Poway ("City") for payment of the
penal sum of Two Million Sixty Three Thousand Four Hundred and Thirty Nine U.S. Dollars
($2,063.439.00). City and Principal have entered into an agreement or are about to enter
into the agreement attached hereto and incorporated by reference, for the construction of
public improvements for the above referenced property. Surety herein approves of the
terms and conditions of said agreement and binds itself to faithfully perform the ob gations
of Principal therein if Principal fails to So perform. Surety acknowledges that the
agreement herein referenced shall be that document as executed by City and Principal.
THE CONDITION OF THIS OBLIGATION IS SUCH that if the Pd'ncipal shall in all things
stand to and abide by, and well and truly keep and perform all of the covenant, conditions,
and provisions in said agreement, and any alteration thereof made as therein provided, on
Principal's part to be kept and performed at the time and in the manner therein specified",
and shall indemnify and save harmless the City, City's Engineer, and their consultants, and
each of their officials, directors, officers, employees, and agents, as therein stipulated, then
this obligation shall become null and void; otherwise, it shall be and remain in full force and
effect.
Surety agrees that should it fail to take over and diligently perform the agreement upon
Principal's default after notice and within the time specified in the agreement, Surety will
promptly on demand deposit with City such amount as City may reasonably estimate as
the cost of completing all of Principal's obligations. Surety's obligation for payment herein
shall extend notwithstanding any controversy between Principal and City regarding
Principal's failure under the agreement. Principal and Surety agree that any payment by
Surety pursuant to this paragraph should be conclusively presumed between the parties
herein to relieve, as demanded, Surety's obligations herein and shall be deemed proper
payment as between Principal and Surety.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the
agreement, or the work to be performed thereunder or the plans and specifications, or any
matters unknown to Surety which might affect Surety's risk shall in any wise affect its
obligation on this bond, and it does thereby waive notice thereof.
_ Principal and Surety agree that if the City is required to engage the services of an attorney
in connection with the enforcement of this bond, each shall pay City's reasonable attorney's
(City of Poway) Performance Bond - Page 1 of 3
(4/96)
5 of 13 ATTACHMENT 2 April 15, 2003 Item # (~.~
fees incurred, with or wit, Jt suit, in addition to the above sur.
Executed this 1st dayof December , 20 co
(Seal of Corporation) PRINCIPAL Old Coach Realty, Inc.
402 W. Broadway, Suite 2175
~ ~~t San D e.qo, CA 92101
By:
Bruce E. Ta , resi
(Attach Acknowledgment of Principal)
Any claims under this bond may be addressed to: (check one)
Surety's agent for service of
process in California (x). Gulf Insurance Company
Surety Company
Cavignac & Associates 101 W. Broadway, Suite 700
Name ' Street Number
1230 Columbia Street, Suite 850 San Diego, CA 92101
Street Number City and State
San Diego, CA 92101-3571 800_238k100
City and State Tel e
Telephone Number ~Att~er~y~in I~(~or~[her
~,e p re s'~ati~bJ
J~mes~.~chabarum, II, Attorney-in-Fact
(Att~ch'Acknowledg ment)
( ) ~/A
Company Agent
APPROVED:
Street Number
Cit{/Attorney City and State
Telephone Number
Furnish the name, address, and phone number of the Company Agent as well as the
Surety Company.
(City of Poway) Performance Bond - Page 2 of 3
6of 1~4/96) April15,2003 Item#
Sureties must be authorized to do business in and have an agent for service of process
in California and be on the accredited list of the United States TreasurY Department,
- (their bonds will be limited to such amounts as would be acceptable to the Treasury
Department) and otherwise meet the requirements of paragraph 5 of the agreement,
(NOTICE: No substitution or revision to this bond form will be accepted)
(City of P0way) Performance Bond - Page 3 of 3
7 of 1~4/96) April 15, 2003 Item # ;l~
BOND NO. BE2653558
Premium included in
Performance Bond
PAYMENT BOND
( TM 89-13R, The Heritage, Phase 1, Unit 3, Cypress Point )
We, Old Coach Realty, Inc., as Principal, and Gulf Insurance Company , as
Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors
and assigns, as set forth herein, to the City of Poway ("City") for payment of the penal sum
of One Million Thirty One Thousand Seven Hundred Nineteen and 50/100 U.S. Dollars
($1,031,719.50). City and Principal have entered into an agreement or are about to enter
into the agreement attached hereto and incorporated by reference, for the construction of
public improvements for the above referenced property. Surety herein approves of the
terms and conditions of said agreement and binds itself to faithfully perform the obligations
of Principal therein if Principal fails to so perform. Surety acknowledges that the
agreement herein referenced shall be that document as executed by City and Principal. If
Principal or any of Principal's contractors or subcontractors, fails to pay any of the persons
named in Title 15 of the California Civil Code employed in the performance of the
agreement for materials fumished or for labor thereon of any kind, or for amounts due
under the Unemployment Insurance Code with respect to such work or labor, then Surety
will pay the same in an amount not exceeding the sum specified above, and also will pay,
in case suit is brought upon this bond, such reasonable attorney's fees as shall be fixed by
the court.
Surety agrees that it will pay the amounts due the persons above named and diligently
perform the agreement upon Principal's default after notice and within the time specified in
the agreement. If Surety fails to perform within the times specified in the agreement,
Surety will promptly on demand deposit with City such amount as City may reasonably
estimate as the cost of completing all of Principal's obligations. Surety's obligation for
payment herein shall extend notwithstanding any controversy between Principal and City
regarding Principal's failure under the agreement. Principal and Surety agree that any
payment by Surety pursuant to this paragraph should be conclusively presumed between
the parties herein to relieve, as demanded, Surety's obligations herein and shall be
deemed proper payment as between Principal and Surety.
This bond shall insure to the benefit of any and all of the persons named in Title 15 of the
(City of Poway) Payment Bond - Page 1 of 3
(4/96) (Labor & Materials)
8 of 13 ATTACHMENT 3 April 15, 2003 Item #
California Civil Code, so as to give a right of action to them or their assigns in any suit
brought upon this bond.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the
agreement, or the work to be performed thereunder or the plans and specifications, or any
matters unknown to Surety which might affect Surety's risk shall in any wise affect its
obligation on this bond, and it does thereby waive notice thereof. Principal and Surety
agree that if the City become a party to any action on this bond that each will also pay
City's reasonable attorney's fees incurred therein in addition to the above sum.
Executed this 1st dayof December ,20oo
(Seal of Corporation) PRINCIPAL Old Coach Realty, Inc.
~,~~ 402 W. BroadwaY1 Suite 2175
Eh': San Die,qo, CA 92101
Bruce E. Tabb, President
(Attach Acknowledgment of Principal)
Any claims under this bond may be addressed to:(check one)
- Surety's agent for service of
process in California (x) Gulf Insurance Company
Surety Company
Cavignac & Associates 101 W. Broadway, Suite 700
Name Street Number
1230 Columbia Street~ Suite 850 San Die~o, CA 92101
Street Number City and State
San Dieqo~ CA 92101-2371 800-2¢3~ k~
City and State ~ ~~/
610-234-6848 By:
Telephone Number tta~ ~ot~r
J fona~um, II, Attorney-in-Fact
(Attach Acknowledgmeht
(City of Poway) Payment Bond - Page 2 of 3
(4/96) (Labor & Materials)
9 of 13 April 15, 2003 Item # (~
Company Agent
: ,~:,:.,/ APPROVED:
!1; ~2~" ./'~..¢/ . Street Number
City Attor~y/// ~ City and State
Telephone Number
Furnish the name, address, and phone number of the Company Agent as well as the
Surety Company.
Sureties must be authorized to do business in and have an agent for service of process in
California and be on the accredited list of the United States Treasury Department, (their
bonds will be limited to such amounts as WOuld be acceptable to the Treasury Department)
and otherwise meet the requirements of paragraph 5 of the agreement.
NOTICE: No substitution or revision to this bond form will be accepted)
(City of Poway) Payment Bond - Page 3 of 3
(4/96) (Labor & Materials)
10 of 13 April 15, 2003 Item # I~
- MONUMENT --Bond #BE2653559
Premium: $100.00
PERFORMANCE BOND Bond RenewsAnnually
Until Exonerated
_ ( TM 89-13R, The Herita.qe, Phase 1, Unit 3, Cypress Point )
We, Old Coach Realty, Inc. , as Principal, and Gulf Insurance Company , as
Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors
and assigns, as set forth herein, to the City of Poway ("City") for payment of the penal sum
of Four Thousand Dollars U.S. Dollars ($4,000.00). City and Principal have entered
into an agreement or are about to enter into the agreement attached hereto and
incorporated by reference, for the construction of public improvements for the above
referenced property. Surety herein approves of the terms and conditions of said
agreement and binds itself to faithfully perform the obligati.ons of Principal therein if
Principal fails to so perform. Surety acknowledges that the agreement herein referenced
shall be that document as executed by City and Principal.
THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal shall in all things
stand to and abide by and well and truly keep and perform all of the covenant, conditions,
and provisions in said agreement, and any alteration thereof made as therein provided, on
Principal's part to be kept and performed at the time and in the manner therein specified,
and shall indemnity and save harmless the City, City's Engineer, and their consultants, and
each of their officials, directors, officers, employees, and agents, as therein stipulated, then
this obligation shall become null and void; otherwise, it shall be and remain in full force and
effect.
Surety agrees that should it fail to take over and diligently perform the agreement upon
Principal's default after notice and within the time specified in the agreement, Surety will
promptly on demand deposit with City such amount as City may reasonably estimate as
the cost of completing all of Principal's obligations. Surety's obligation for payment herein
shall extend notwithstanding any controversy between Principal and City regarding
Principal's failure under the agreement. Principal and Surety agree that any payment by
Surety pursuant to this paragraph should be conclusively presumed between the parties
herein to relieve, as demanded, Surety's obligations herein and shall be deemed proper
payment as between Principal and Surety.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the
agreement, or the work to be performed thereunder or the plans and specifications, or any
matters unknown to Surety which might affect Surety's dsk shall in any wise affect its
obligation on this bond, and it does thereby waive notice thereof.
Principal and Surety agree that if the City is required to engage the services of an attorney
in connection with the enforcement of this bond, each shall pay City's reasonable attorney's
fees incurred, with or without suit, in addition to the above sum.
(MONUMENT)
_ Executed this imf day of December ,20 o0
(4/96) Page 1 of 3
11 of 13 ATTACHMENT 4 April 15, 2003 Item #_.~
(Seal of Corporation) PRINCIPAL Old Coach Re[ . Inc.
402 W. Broadway, Suite 2175
~ San Diego, CA 92101
Bruce E. Tabb, President
(Attach Acknowledgment of Principal)
Any claims under this bond may be addressed to: (check one)
Surety's agent for service of
process in California (~) Gulf Insurance Company
Surety Company
Cavignac & Associates 101 W. Broadway, Suite 700
Name Street Number
1230 Columbia Street, Suite 850 San Diego, CA 92101
Street Number City and State
San Diego, CA 92101-3571 800-238-210~
City and State Tele~rr ~.,~,~ /
Telephone Number ~' \JAtt~r~ i~ in'ii, act o~ ~er
~ Rei~ %~tive F
Jam~ P. habm~L~um, II, Attorne~,-in--Fact
(AR ~knowledgment)
). N/A
Company Agent
APPROVED:
Street Number
~Cit~, Attorney City and State
Telephone Number
Furnish the name, address, and phone number of the Company Agent as well as the
Surety Comparty.
(4/96) Page 2 ol= 3
12 of 13 April 15, 2003 Item
Sureties must be authoriz., to do business in and have an age,._ ,or service of process in
California and be on the accredited list of the United States Treasury Department, (their
bonds will be limited to such amounts as would be acceptable to the Treasury Department)
- and otherwise meet the requirements of paragraph 5 of the agreement.
(NOTICE: No substitution or revision to this bond form will be accepted)
(4/96) Page 3 ol= 3
13 of 13 April 15, 2003 Item #~/~-~