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CC - Item 4H - Release of Bonds• ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: OLIVER CHI, CITY MANAGER DATE: FEBRUARY 12, 2008 SUBJECT: RELEASE OF BONDS - TRACT MAP 53650 4619 MUSCATEL AVENUE SUMMARY A Faithful Performance Bond of $200,000 and a Labor and Material Bond of $100,000 were required to guarantee construction of new curb and gutter, sidewalk, roadway, driveways, mainline sewer and laterals, water main and services, street lights and centerline monuments for Tract Map 53650. Staff Recommendation Staff recommends that the City Council accept the public improvements and release the bonds. ANALYSIS In accordance with the Conditions of Approval for Tentative Tract Map No. 53650 approved by the Rosemead Planning Commission on March 3, 2003, the subdivider is required to construct new curb and gutter, sidewalk, roadway, driveways, mainline sewer and laterals, water main and services, street lights and centerline monuments subsequent to recordation of the tract map. On April 13, 2006, the subdivider executed an Undertaking Agreement (Attachment A) to guarantee completion of the public improvements within two years. The subdivider also provided a Faithful Performance Bond of $200,000 and a Labor and Material Bond of $100,000 to the City. The City Engineer has inspected the improvements and found that 95% of the work is satisfactory. The subdivider has provided a cash deposit in an amount of $ 16,000 to guarantee the remaining work. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: oe Wang, P City Engineer APPROVED FOR CITY COUNCIL AGENDA: J ~'~yW' 0 W- • • City Council Meeting February 12, 2008 Page 2 of 2 Submitted by: Brian Saeki Assistant City Manager Attachment A: Undertaking Agreement & Bonds, Cash Deposit receipt • CITY OF ROSEMEAD UNDERTAKING AGREEMENT • THIS AGREEMENT made and entered this 13 day of April, 2006 , M66, by and between the CITY OF ROSEMEAD, State of California, acting by and through its City Council, hereinafter referred to as "CITY" and UNION PACIFIC FUMING, INC. (NAME) 9573-E. Garvey Avenue,#14, South E1 Monte, CA 91733 (ADDRESS) hereinafter called the "CONTRACTOR." WITNESSETH: FIRST: The CONTRACTOR, for and in consideration of the approval of the final map of that certain land division known as Tract Map 53650 hereby agrees, at the CONTRACTOR'S own cost and expense to furnish all labor, materials, and equipment necessary to perform and complete, and within twenty-four (24) months from the date.of filing of said map, to perform and complete in a good and timely manner, the following work, to wit: Curb, gutter, roadway, and sidewalk; mainline sewer and laterals; water main and services; street lights; centerline monuments. Said work shall be done to the satisfaction of the City Engineer and shall not be deemed complete until approved and accepted as completed by the City Council of the Aft ,ChI'I'Ient CITY. The estimated cost to do all work and furnish all materials necessary to complete the work is $200,000. SECOND: The CITY shall not nor shall any officer or employee thereof, be liable or responsible for any accident, loss, or damage happening or occurring to the work specified in this agreement prior to the completion and approval of same; nor shall the CITY, nor any officer or employee thereof, be liable for any persons or property injured by reason of the nature of said work, or by reason of the acts or omissions of the CONTRACTOR, his agents, or employees, in performances of said work. All of said liabilities shall be assumed by the CONTRACTOR. The CONTRACTOR further agrees to protect and hold harmless the CITY, its officers, and employees, in performance of said work. All of said liabilities shall be assumed by the CONTRACTOR. The CONTRACTOR further agrees to protect and hold harmless the CITY, its officers, and employees, from any and all claims, demands, causes of action, liability, or loss of any sort because of, or arising out of, the acts or omissions of the CONTRACTOR, his agents, and employees, in the performance of this agreement, or arising out of the use of any patent or patented article, in the performance of said agreement. THIRD: The CONTRACTOR hereby grants to the CITY, the Surety upon any Bond, and to the agents, employees, and CONTRACTOR or either of them, the irrevocable permission to enter upon the lands of the subject land division for the purpose of completing the work. This permission shall terminate in the event that the CONTRACTOR or the Surety has completed the work within the time specified or any extension thereof granted by the City Council. FOURTH: It is further agreed that the CONTRACTOR shall have the control of the ground reserved for the installation of said work, and the streets in which they are to be placed, as is necessary to allow him to carry out this agreement. FIFTH: It is further agreed that the CONTRACTOR has filed with the CITY a Surety Bond in an amount equal to at least one hundred percent of the estimated cost of this work for the Faithful Performance of this agreement; and a separate Surety Bond in an amount equal to at least fifty percent of the estimated cost of this work for the payment of all persons performing labor and furnishing materials in connection with this agreement. If the Sureties on said Bonds, in the opinion of the CITY, become insufficient, CONTRACTOR agrees to renew said bonds with good and sufficient Sureties within ten (10) days of the receiving notice that said Sureties, are insufficient. SIXTH: If the CONTRACTOR neglects, refuses, or fails to prosecute the work with such diligence as to ensure its completion within the time specified, or within such extensions of said time as have been granted by the City Council, or if the CONTRACTOR violates or neglects, refuses, or fails to perform satisfactorily any of the provisions of the plans and specifications, he shall be in default of this agreement and notice in writing of such default shall be served upon him and upon any Surety in connection with this contract. The City Council shall have the power, on recommendation of the City Engineer, to terminate all rights of the CONTRACTOR or his Surety then existing or which thereafter occur because of such default. The determination by the City Engineer of the question as to whether any of the terms of the contract or specifications have been violated, or have not been performed satisfactorily, shall be conclusive upon the CONTRACTOR, his Surety, and any and all other parties who may have any interest in the contract or any portion thereof. The foregoing provisions of this section shall be in addition to all other rights and remedies available to the CITY under law. SEVENTH: In case suit is brought upon this contract, the CONTRACTOR hereby agrees to pay to the CITY a reasonable attorney's fee to be fixed by the Court. EIGHTH: It is further agreed by and between the parties hereto, including the Surety or Sureties on any Bond attached to this contract, that in the event it is deemed necessary to extend the time of completion of the work contemplated to be done under this contract, said extension may be granted by the City. Council, either at its own option, or upon request of the CONTRACTOR, and shall in no way affect the validity of this contract or release the Surety of Sureties on any Bond attached hereto. IN WITNESS THEREOF, the parties hereto for themselves, their heirs, executors, administrators, successors, and assigns do hereby agree to the full performance of this agreement and affix their names, titles, and seals this day as above indicated. /-0 ; rru ~Lc,'s ,Le h,7 l3 e ~~f D~ By ~ 4y PHI DUONG Commission : 1421855 (Seal) QMY Notary Public-Calitomia Los Angeles Conty Note: Comm. Expires Jun 3, 2007- SIGNATURES MUST BE ACKNOWLEDGED BEFORE A NOTARY PUBLIC. (ATTACH APPROPRIATE ACKNOWLEDGEMENTS) By Mayor of the City of Rosemead Attested City Clerk of the City of Rosemed DUPLICATE ORIGINAL • Bond~. 661116034 P=emlL!:$6,000.00 CITY OF ROSEIvIEAD BOND FOR FAITHFUL PERFORMANCE (Subdivisions) WHEREAS, the City Council of the City of Rosemead, State of California, and Union Pacific Funding, Inc. (hereinafter designated as "PRINCIPAL") have entered into an undertaking agreement whereby PRINCIPAL agrees to install and complete certain designated improvements, 2005, and identified as Tract which said agreement, dated 09/22/05 Map 53650, is hereby referred to and made a part hereof; and WHEREAS, said PRINCIPAL is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. NOW, THEREFORE, we, the PRINCIPAL and the undersigned as surety, are held and firmly bound unto the City of Rosemead, hereinafter called ("CITY'), in the penal sum of Two Hundred Thousand Dollars ($200,000.00) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors, and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bonded PRINCIPAL his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and provisions in the said agreement and any alteration thereof made as there provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless CITY, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable attorney's fees, incurred by CITY in DUPLICATE ORIGINAL • G successfully enforcing such obligation, all to be tared as costs and included in anyjudoment rendered. The surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in anyway auect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the agreement or to the work or to the specifications. The surety hereby waives the requirements of Section 2845 of the Civil Code as a condition precedent to any of the remedies the City of Rosemead may have. IN WITNESS WHEREOF, this instrument has been duly executed by the PRINCIPAL &=rd 2k~sy above-named, on Q -,2- 2 - ~ s 2005. Signed and Sealed by Surety on,tanuary 12th, 2006. 1~~11_II (0 r i I t 0 Qyor1'1 c Principal' PHI DUONG _ Commission # 1421.. QMy Notary Pubtlo - California i Los Angeles County Comm. Expires Jun 3, 2007 ALL SIGNATURES MUST BE WITNESSED BY NOTARY Principal • 661 6034 DUPLICATE ORIGINAL LINCOLN GENERAL INSURANCE COMPANY POWER OF ATTORNEY KNOW ALL N rN BY 7'r1=SE PRESEM'S: That Lincoln Geacal lnsasinee Cmrpxmy, organized and existing by vin:e of the Laws of the Commonwealth of Pennsylvania, does hereby nominate, constitute and atsooint George Jimenez its true and lawful atterney(s)-in-fact to sign, seal and exearte far and on its behalf, as surety , bonds, undc.talcmA and other obligatory inrur..erus of smilar nature in an amount not to exceed Three M➢11on Dollan (S3,000,000).and to bind it thereby as fully and to the some extent as if such instruments were signed by a duly authorizd officer of the corporation, and all the ac's of said Arzraey, li suaat to the authority hereby given are hereby ratified and confirmed. RESOLVED that this Power of Attorney is granted and is signed, sealed and notarized with facsimmle sigaatms and seas under authority of the following resolutions adopted by the Board of Directors of Lincoln General Inssance Company on the 4' by of September, 2002. RESOLVED that the President, an Executive or Senior Vice President, or any Vice President of the Company, together with the Sec-r Lary or any Assistant Secretary are hereby authorized to execute Powers of Attorney appointing the person(s) nand as Attorey(s)-in-Far, to. date, execute, sign, seal and deliver on behalf of the Company, fidelity and surety bends, tmdertikings, and other similar chatacts of suretyship, and any related docaents RESOLVED FURL ER that the signatures of the officers making the-appointment, and the siguattae of any efnccr certifying the validity and current status of the appointment, may be faeshniie reprweafatims of those signatures; and the Signature and seal of any notary, and the seal of the Company, may be facsimmle representations of those signatures and seals, and such facsimile representations of those signatures aid seals, and such facsimile representations shall have the same fora and effect as if manually affixed. The facsimile mpresmtatioas referred to herein maybe affixed by stamping, printing, typing, or photocopying. LN WiTlv7SS Cv'I3ERE0F, Lincoln General Insurance Compamybas eaased be signed by is duly antherized ofc_-:s this 4th day" ,tspmn Jr2002. Attest Gary J. do S Lary ~="GOFQORATES_'• z 1977 The Cominottwealth of Pcnsy'ivania O.•..,o~ a York County A,.. 'hySYP1A ` x' On ,,~~It'~,~ this 4th derY of S~to...bc, 2002, before C. Bhojw•ani, to tae known, who being duly sworn, did depose and say. that he is the President of the urrWr°awaFl in and which executed the above' a^^^^^* that he knows the seal affixed to the aforesaid instrument is such chrporaie seal and was affixed thereto by,order and authority of the Bed of Directors of said Company, and that he executed the said instrument by like order and authority and the same was his free act and deed. / n . Notarial Seal The Commonwealth of Pennsylvania Catherine mare Loom. Newry Sprtngettstury Two., York C York County My CDnlmissicn Ex6ires June 1 NotaN I, Gary Crnderff, Secretary of Lincoln General Inssance Company, a corpcraden of the Cararnonwealth of Periasyivania do hereby certify that the above and foregoing is a full, true and correct copy of Power of Attorney issued by said Company, and of the whole of the original and that the said Power of Attorney is still in full force and effect and has not been rreckd, and furthermore that the Resolution of the Beard of Directors, set forth in the said Power of Attorney is now in force. IN W? rNESS WHEREOF. I have hereunto set ray hand and affixed the seal of said Company, at York tits 12th dayof. Januarv 2006+rotmomryi „pOWEsSF. Z. 977 ~ ~ F~'SYt`1Aap: D ?LICATE ORIGINAL B o* o. 661116034 Premium included on performance bond. CITY OF ROSEMEAD BOND FOR LABOR AND MATERIALS (Subdivisions) WHEREAS, the City Council of the City of Rosemead. State of California, and ih t~ ;I( ~tNi fA) (hereinafter designated as "PRINCIPAL") have entered into an undertaking agreement whereby PRINCIPAL agrees to install and complete certain designated improvements, which said agreement, dated C) - CO) 'S 2005, and identified as Tract Map 53650, is hereby referred to and made a part hereof; and WHEREAS, under the terms of said agreement, PRINCIPAL is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Rosemead to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California. NOW, THEREFORE, said PRINCIPAL and the undersigned as surety, are held firmly bound unto the City of Rosemead and all contractors, subcontractors, laborers, materialmen and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Civil Code in the sum of One Hundred Thousand Dollars ($100,000.00), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgement therein rendered. 0 0 FORMA ALL-PURPOSE ACKNOWL.tUUNItIN I State of CALIFORNIA } as County of LOS ANGELES } ss On 1/12/06 before me, Anthony xhotsikian- NOTARY PUBLIC Data Name and Tille of Officer (e.g.. 'Jane Doe, NOTARY PUBLIC' personally appeared George Jimenez - ATTORNEY-IN-FACT ANTHONY KHOTSIKIAN ._r.~_ Commission m 1472651 z` 1-m Notary Public - California Los Angeles County My Comm. Expires Feb 26, 2008 Place Notary Seal Above ® personally known tome ❑ 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 he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS had d ofic ll I.^ Signatu of Notary Public 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: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer - Title(s): ❑ Partner- ❑ Limited ❑ General IR Attorney in fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: Top of Thumb here Number of Pages: 0 1999 NmiomlNotaryMl-.'tian - Ybe - Saiu Ave., Y.V. .ax [.v-, DU^LIcATE ORIGINAL It is hereby expressly stipulated and agreed that this bond shall insure to the benefii 1 -1 of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, it does hereby waive notice of any such change, extension, alteration or addition, ar d hereby waives the requirements of Section 2845 of the Civil Code as a condition precedent to any remedies the City of Rosemead may have. strument has been duly executed by the IN WITNESS WHEREOF, this in PRINCIPAL ao_ _t ~JtY above-named, on 12th, 2006. Signed and Sealed by Surety on anuar 2005. v I i U J~a Principal V -V- PHI DuoNG Principal commission # 1427855 z < _ Notary Public • Calitomia z Los Angeles County MY Comm. Expires Jun 3, 2007 ALL SIGNATUR17S MUST BE WITNESSED BY NOTARY rnpany • 66116034 DUPLICATE ORIGINAL L114CO LN GENERAL INSURANCE (COMPANY POWER OF ATTORNEY KNOW ALL NMq BY THESE PRESENTS: That Lincoln General lnSUrZaCC Com:oany, organized and existing by virtue of the Laws of the Commonwealth ofPeansylvania, does hereby nominate, eoasi tote and anooint George Jimenez its true and lawfirl attnrney(s)-in-fact to sign, seal and eamrte for and on its behalf, as surety, bonds, undert:31tings, and obligatory in t:urnents of sinslar nature in an amount not to exceed Three MMon Dollar S3,000 nd to bind it thereby as fully and to the same extent as if such instruments were signed by a duly authorized cfn= of the corporation, and all the arz of said Attorney, puruant to the authority hereby given are hereby ratined and eonflrmd. RESOLVED that this Power of Attorney is granted and is signed, sealed and netarizd with facsirnle signatures and seals harder authority of the following resolutions adopted by the Board of D rcc ms of Lincoln General Imsnance Company on the 4° day of Septcatber, 2002. RESOLVED that tit` a President, an Executive or Senior Vice President, or any Vice President of the Company, tcgeA-er with the Secretary or any Assistant Secretary are hceby authorized to execute Powers of Ata3ey appcinting the person(s) nand as Attorney(s)-in-Fact to.dat; execute, sign, seal and deliver on behalf of the Company, fidelity and stuetyboads, tmdcaking4 and ether similar coatn= of svaetvship, and any related documents. RESOLVED FARTHER that the signatures of the ofEi= making the-aPp°intir>cat, and the signature of any ofee certifying and the sgnafse and seal the validity and current status of the anpointnent, may be Ews~mile reprrettaticas of those signatures; of any notary, and the seal of the Company, may be facsitntle rep=catations of those signatures and seals, and such facsrmle rpresehtzticas of those signatures and seals, and such facsimile reprsettaoons small have the same force and effect as if manually afnxd. The fzcsiorile rcprsentaticas referred to betein may be alffixd by smtpmg, printing, typing, or phctecopyiag. LN WITNESS WHEREOF, Lincoln General Insurance Company has00eansed be signed by its duly authcrzd officers this 4th day !'4 r a* 211 Attest cry J. d any = c' 0 1977 Ezi The Commonwealth of Pennsylvania - JO: ,oF - ~~p Ycrk County tJ:•. '~NSYLVA On this 4th day of September, 2002, before s^.E~- ~o,o~all came G Bhcjwaai, to me known, who being duly sworn, did ~ be is Cze President of the Wrrd in and which oxcart--d the above instrument than he knows depose and say. t} the seal affxd to the aforesaid instrument is such corporate seal and was affizd thereto by order and authority of the Beard of Directors of said Company, and that he e,-autd the said ibsomneat by like order and authority and the same was his free aC and de-d. /t zl-\.. Nctanal Seal The Commonwealth of Pennsylvania Catherine Mane Lccm, Nota Spttngeaitury Twp„ Ycrk I York County My Commission Exbiras June 1, Gary Omderf, Sretary of Lincoln General li s rrmce Company, a corporation of the Commonwealth of Pennsylvania do hereby certify that the above and foregoing is a full, true and correct copy of Powe' of Attorney issued by said Company, and Of the whole of the original and that the said Powe•, of Attorney is still in full force and effect and has not been revoked, and furthermore that the Resolution of the Board of DireC,nrs, set forth in the said Power of Attorney is now in force. IN V l"NESS WHEREOF. I have hereunto set mY hand and affixed the seal of said Company, at Yore `t s 12th ayof. Januarv 2006 tnnmw"h2, _ / J~ ~4PORATESE G Y 1977 0 IFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of CALIFORNIA } ss. County of LOS ANGELES } ss. On 1/12/Q6 before me, Anthony Knotsikian- NOTARY PUBLIC '.lane Doe, NOTARY PU6LIO' g f Officer (e l Dale . e o Name and Tit personally appeared Geor e Jimenez - ATTORNEY-IN-FACT ® personally known tome ❑ proved to me on the basis of satisfactory 1 ANTHONY KHOTSIKIAN Com i 65 evidence m s 0 zNotary Public-California WhOSe t0 be the person(s) name(s) IS/are Los Angeles County subscribed to the within instrument and yComm. Expires Feb26,2006 M acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS an a Place Notary Seal Above ° Signature f4dola ry Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudufent 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 Signer's Name: ❑ Individual ❑ Corporate Officer - Title(s): ❑ Partner- ❑ Limited ❑ General ® Attorney in fact ❑ Trustee ❑ Guardian or Conservator ❑ Other. Signer is Representi O CLa¢wartA, ❑3-2-02. Prod. NO59e] Rcardcr. Colt Tall-Frce l-800-Vii-6211 .naviowlnou or 1,99 N]IIOIal N r, ASSOClouon 9330 UP Sam Aw. Pe. Box NO? CA 9 ry, 8 RECEIFSOR PAYMENT CITY OF ROSEMEAD 8838 EAST VALLEY BOULEVARD ROSEMEAD, CA 91770 626.569.2100 (M - TH 7:00 - 6:00 PM) Name: Address: DeptlBy: Cn / JC C, Date: 2/6 For: ~'a Sl1 ~eAoS; r I~ [JrovPl~tChtS C o / O v Check ' 'Zl ' C k Alo, 7--7 TO g C~,0-t7-0 f/e l t~~ rv S 7Y P r re~ hi a- C n n i-0 alo 2/,~ /D~ ` TRAN TRAN CODE DESCRIPTION CODE DESCRIPTION 710 Building Permit Fees 100 Refundable Deposits 713 Strong Motion Fees 820 Building/Field Rental/Supv 720 Public Works Permits 843 Class Registration 712 Occupancy Permits (Bldg) 844 Excursions 702 Site/Sign Plan Review Fees 821 Sr Lunch Frog (RCRC) 700 Occupancy Permits (Plan) 822 Sr Lunch Frog (GCC) 701 Wildlife Exemption Fee 123 Miscellaneous Revenues Traz,f Ala,/5",36,57-0