Item 14 - Reduction of Improvement Bonds for Heritage Rance Estates AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members .of~e City Council ,
FROM: James L. Bowersox, City Manag~ '~
INITIATED BY: Niall Fritz, Director of Development Services,~
DATE: April 15, 2003
SUBJECT: Reduction of Improvement Bonds for Heritage Ranch Estates, TTM 98-02; Old
Coach Realty, Inc., Applicant; APNs 277-220-01 through 55.
ABSTRACT
Heritage Ranch Estates is a subdivision with 39 residential lots, located on various portions of Old
Coach Drive, Stage Coach Road, Olympic Point, and Troy Terrace in the Heritage Development
(Attachment 1 ). The improvements for Heritage Ranch Estates have been partially completed, and
the applicant has requested the City reduce the securities. The items covered under the securities
include street improvements, sewer, water, and storm drain facilities to serve the project.
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 release of the following securities once the applicant
submits a Performance Bond in the amount of $200,000 and a Payment Bond in the amount of
$100,000: Performance Bond No. BE2616604 in the amount of $1,780,800 and Payment Bond No.
BE2616604 in the amount of $890,400.
ACTION
M:\engserv\03Reports\Tl'M1 of-lO 98-02 Heritage Ranch Estates~summary. doc April 15, 2003 Item
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
repor~ 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 Membe~(~he City Council
FROM: James L. Bowersox, City Mana~)
INITIATED BY: Niall Fritz, Director of Development Services
Javid Siminou, City Engineer
Kenneth Quon, Senior Civil Engineer
DATE: April 15, 2003
SUBJECT: Reduction of Improvement Bonds for Heritage Ranch Estates, TTM
98-02; Old Coach Realty, Inc., Applicant; APNs 277-220-01 through
55.
BACKGROUND
Heritage Ranch Estates is a subdivision with 39 residential lots, located on various portions
of Old Coach Drive, Stage Coach Road, Olympic Point, and Troy Terrace in the Heritage
Development (Attachment 1).
The improvements for Heritage Ranch Estates have been partially completed, and the
applicant has requested the City reduce the securities. The items covered under the
securities include street improvements, sewer, water, and storm drain facilities to serve the
project. The following securities were posted by the applicant for these improvements:
Performance Bond No. BE2616604 $1,780,800 (Attachment 2)
Payment Bond No. BE2616604 $ 890,400 (Attachment 3)
The applicant has proposed reducing the Performance Bond amount to $200,000 and the
Payment Bond amount to $100,000.
FINDINGS
Staff concurs that the improvements have been partially completed and the proposed
reduced amounts are adequate to secure the remaining work. The original Performance
Bond and Payment Bond may be released following the applicant's submittal of securities
in the reduced amounts of $200,000 and $100,000, respectively.
2 of 10 April 1,5, 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 release of the following securities once the
applicant submits a Performance Bond in the amount of $200,000 and a Payment Bond in
the amount of $100,000:
Performance Bond No. BE2616604 $1,780,800
Payment Bond No. BE2616604 $ 890,400
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ATTACHMENTS:
1. Vicinity Map
2. Performance Bond No. BE2616604
3. Payment Bond No. BE2616604
M:\engserv\03Reports\TTM 98-02 Hedtage Ranch Estates~Agenda report.doc
OLD
;OACH
ROAD
£$POLA I~OAD
/ VICINITY MAP
NOT TO SCALE
4 of 10 ATTACHMENT 1 April 15, 2003 Item ~_~'
BOND NO. BE2816604-
-- [~"eal.'[~l .' $24,041.00
Two Year Term
Bond Renews Annually Thereafter PERFORMANCE BOND
( TM 98-02, Herita.qe Ranch Estates )
We, NorthPolnt Development, 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 Seven Hundred and Eighty Thousand, EiRht Hundred U.S. Dollars
($1,780,800.00). 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 heroin 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.
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 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 depose with City such amount as City may reasonably estimate as
the cost of completing ell 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 spec'~ications, 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.
(city. e{ Poway) Pe_r[em3ance Bend- Pag~ I of 3
(4/96)
of,0 ^ ACHMENt2 Apri,, ,2003 ,tern# "IV
Principal and Surety agree that if the City is required to engage the services of an attorney
In connection with the enfomement of this bond, each shall pay City's reasonable attorney's
fees incurred, with or without suit, in addition to the above sum.
Executed this 25th day of April , 20 01
(Seal of Corporation) PRINCIPAL NorthPoint Development, Inc.
110 West "A" Street, ,Suite 1805
San Diego, CA 92101
By:
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~ Gu,t~ Insm:ance
Surety Company
Cavignac & Associates 110 ~st "A" S~.
Name Street Number
1230 Columbia $~'eett Su.t~e 850 Sa~ Diegor CA 92101
Street Number City and State
Snn l')'l~c~n. ~A q91131-~R?l 619--~33-91~9
City an(~ ~tate Telel~K~e~mber
619-234-6848
By:
~t{orl~i¥..F~"ct or ~her
Telephone Number
R~_)~seht/afive
J~mes P. Schabaru~, II~ Attorney-in-Fact
(A~¢h Acknowled~.~nt)
( )
APPROVED:
~l~~~ ' m~ ~ Street Number
~/A
City and State
lelephona Number
(City of Poway) Performance Bond - Page 2
6 Of 10 (4/96) April 15, 2003 Item#/
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) Performance Bond - Page 3 of 3
(4/96)
7of10 April15,2003 Item# /_~'
BOND NO. BE2616604
Premiu~m include~lCin
Performance Bond
PAYMENT BOND
( TM 98-02, Heritage Ranch Estates )
We, NorthPoint Development, Inc. , as Principal, and G-~Q.f Z~s~az~e Cc~[:~y ,
as Surety, jointly and severally, firmly bind ourselves, our heirs, representatives,
successors and assigns, as set forth heroin, to the City of Poway ("City") for payment of
the penal sum of Eight Hundred Ninety Thousand and Four Hundred U.S. Dollars
($890,400.00). 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
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 furnished 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
Califomia Civil Code, so as to give a right of action to them or their assigns in any suit
brought upon this bond.
Surety agrees ti;at i,u change, extension u[ tin;e, alteration, oraddition to the to,,,,~ ui' ~;,,~
(City of Poway) Payment Bond - Page 1 of 3
(4/96) (Labor & Matgri..31s)
8 of 10 ATTACHMENT 3 April 15, 2003 Item
agreement, or the work to '- performed thereunder or the plans -~d 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 25th day of A~'±i ,20 01
(Seal of Corporation) PRINCIPAL NorthPoint Development, Inc.
402 W. Broadway, Suite 2175
San Diego, CA 921 01
(Attach Acknowledgment of Principal) Bruce E. Tabb, President
Any claims under this bond may be addressed to:(check one)
Surety's agent for service of
process in California ~ ~ulf Insurance C~,~an¥
Surety Company
Cavignac & Associates 110 West "A" Street~ Suite 1805
Name Street Number
1230 Columbia Street, Suite 850 Sam D~e~. CA 92101
Street Number City and State
City and State
619-234-6848 By:
Telephone Number ~,~ ~,~uv~~ff~:nres~Y~r'rJ~'F"a'~ orot~
Jaa~ P. Schabarum, II, Attorney-in-Fact
(Attach Acknowledgment)
(City of Poway) Payment Bond - Page 2 of 3
(4/96) (Labor & Materials)
9of 10 April 15, 2003 Item
7
( ) N/A
Company Agent
APPROVED:
Street Number
City "" 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)
'10of 10 April 15,2003 Itemfl_/L~