CC - Item 3D - Release of Bond - Parcel Map 26748
E M F
9 ° ROSEMEAD CITY COUNCIL
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.4. STAFF REPORT
I ° 9
ORPORATED 14
TO: THE HONORABLE MAYOR AND CITY COUNCI
FROM: ANDREW C. LAZZARETTO, CITY MANAGE
DATE: FEBRUARY 13, 2007
SUBJECT: RELEASE OF BOND - PARCEL MAP 26748 (3044 ISABEL AVENUE)
SUMMARY
A Faithful Performance Bond and a Labor and Material Bond were required to
guarantee construction of curb and gutter, sidewalk, driveways, parkway drains, sewer
lateral and survey monuments for Parcel Map 26748. In lieu of bonds, a Certificate of
Deposit was issued to the City in the amount of $12,150.
Staff Recommendation
Staff recommends that the City Council accept the public improvements and release the
Certificate of Deposit.
ANALYSIS
In accordance with the Conditions of Approval for Tentative Parcel Map No. 26748
approved by the Rosemead Planning Commission on March 21, 2005, the subdivider is
required to construct curb and gutter, sidewalk, driveways, parkway drains, sewer
lateral and survey monuments subsequent to recordation of the parcel map. On August
3, 2005, the subdivider executed an Undertaking Agreement (Attachment A) to
guarantee completion of the public improvements within two years. In lieu of providing
a Faithful Performance Bond and Labor and Material Bond, the subdivider provided a
Certificate of Deposit in the amount of $12,150. The City Engineer has inspected the
improvements and found them to be satisfactory.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Ken Rukavina, P.E.
City Engineer
Attachment A: Undertaking Agreement, Certificate of Deposit & Location Map
APPROVED FOR CITY COUNCIL AGENDA:
Attachment "A"
CITY OF ROSEMEAD
UNDERTAKING AGREEMENT
THIS AGREEMENT made and entered this f day of j 2005, by and
between the CITY OF ROSEMEAD, State of California, acting by and through its City
Council, hereinafter referred to as "CITY" and
:TO J f I\ /4-u A
(NAME)
3-1)1¢ FI;I-yy tc r t l o o p ' 3447uo ,u F) P= rzC:~k 4 ~ 165_
(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 Parcel Map 26748 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:
Construction of curb and gutter, sidewalk, driveways, parkway drains, sewer
lateral and survey 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
CITY. The estimated cost to do all work and furnish all materials necessary to complete the
work is $8,100.
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: Contemporaneously with the execution of this Agreement, CONTRACTOR
shall file with the CITY a Time Certificate of Deposit in an amount of Twelve Thousand One
Hundred Fifty Dollars ($12,150) to guarantee faithful performance of all the provisions of this
agreement and for the payment of all persons performing labor and furnishings materials in
connection with this agreement. If the Time Certificate of Deposit, in the opinion of the
CITY, becomes insufficient, CONTRACTOR agrees to renew said Time Certificate of
Deposit within ten days of receiving notice that Time Certificate of Deposit is 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.
LIEU TRAM NGUYEN
'Commission # 1339560 39560 Z B /
i - Notary Public - California By
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My Comm. Fyn, it, Jan 13, 2CC6;
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Note:
SIGNATURES MUST BE ACKNOWLEDGED J
BEFORE A NOTARY PUBLIC.
(ATTACH APPROPRIATE ACKNOWLEDGEMENTS)
By toe
yor the City of Roseme
Attested
City Ctoe ity of R ed
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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State of California
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Name(s) Of Signer($)
❑ ersonally known to me
proved to me on the basis of satisfactory
evidence
LIEU TRI NG:!"EN r~
Commission w 1339530 a to be the person(s) whose name(s)' is/are r1~
IFS i 1:S Notary Public- California subscribed to the within instrument and
orange County ~ acknowledged to me that he/sre06y executed S
' ~3>•?>r MYCornm.ExpiresJan13,20M;; the same in his/k6r/tl>Kr authorized Ij~ .
capacity(ies), and that by his/d6r/theiT ~:.ry signature{%) on the instrument the person(a), or
the entity upon behalf of which the person(,
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- WITNESS my hand a d o laal seal.
- Sgnatme of Noury Pudic p:
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0 1999 National N91d,v Assoetauon • 9250 De Sofa Ave.. PO, ed, 2402 • ChatSwonh. DA 91313-2402 • ~nafianaivnarrd,g Prod. No. 5907 Reinder: Call TOR Free 1-800 876-es27
CONFIRMATION OF CERTIFICATE OF DEPOSIT.
NON-NEGOTIABLE AND NON TRANSFERABLE Account No.: 464660000270
ISSUED TO: DEPOSITOR NAMES AND ACCOUNT ADDRESS
JOHN HUA FBO CITY OF ROSEMEAD First Bank dba First Bank & Trust
3514 HAWKWOOD RD, DIAMOND BAR, CA 91765-3787 8251 Westminster Blvd
Westminster, CA 92683-
(714) 934-5700
Member FDIC
ISSUE DATE MATURITY DATE TERM S.S. I T.I.N. # AUTOMATICALLY cc DEPOSIT AMOUNT
07/14/200$ 07/14/2007 24 Month(s) 048-70-7439 RENEWABLE y 12,150.00
❑ SINGLE MATURITY
Interest will be paid at the rate of 3.400 percent with an annual percentage yield of 144 percent.
Interest payment frequency: everv 3 Month s) ® compounded/added to account
❑ payable to account number -
❑ pay by check
The minimum deposit and minimum balance required to earn the stated annual percentage yield is $2,500.00 for certificate terms of 7-89 Days, 5 Months and 7
Months, and $1,000.00 for all other terms.
TERMS AND CONDITIONS
1. Words or phrases preceded by a O are applicable only if the ❑ is marked. Phrases containing a blank space which is not filled in or Completed with an NIA
are not applicable.
2. The certificate is payable to the Depositor, or, if more than one, to either or any of them, or the survivors or survivor, on a maturity date. The Depository
Institution is under no obligation to permit withdrawals by anyone other than the persons described above.
3. The interest rate for your certificate will be paid until the maturity dale.
4. The certificate bears simple interest at the rate and basis set forth above. Interest is accrued daily and will be compounded and credited to your account
according to the terms set forth above.
5. Interest begins to accrue on the business day you deposit non-cash items, such as checks.
6. After the certificate is opened, you may not make deposits into or withdrawals until the maturity date.
7. If the deposit is withdrawn before the maturity date, a penalty may be imposed. Refer to the penalty disclosure below for early withdrawal assessment.
e. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.
9. The annual percentage yield assumes pnncipal and interest will remain on deposit until maturity. A withdrawal will reduce earnings.
10. No right in, or Title to the deposit on this Confirmation of Certificate of Deposit is transferable, except on the books of the Depository Institution.
11. All terms of this certificate are subject to the applicable present and future laws and regulations of the state in which the office of the Bank which maintains
your account is located and by federal law and any U.S. agency or instrumentality thereof, and all rules, regulations and practices now or hereafter adopted
by the Depositary Institution with respect hereto.
12. Depositor has Contracted to keep the funds evidenced by this Confirmation of Certificate of Deposit on deposit from the Issue Date until the Maturity Date of
the certificate. Acceptance of a request by Depositor for a withdrawal of the funds prior to the Maturity Date is at the discretion of the Depository Institution.
13. Automatically Renewable Certificates renew automatically on the Maturity Dale. If the term of the account is greater than 29 days, you have a grace period
of ten (10) calendar days after the maturity date to withdraw the funds without being charged a penalty. If the term of the account is 29 days or less, you
have a grace period of one (1) calendar day to withdrew the funds without being charged a penalty. If you withdraw the funds during the grace period, you
will forfeit any interest accrued after the automatic renewal. For automatic. renewals of the certificate, interest will be paid at the rate then in effect at the
Depository Institution for similar deposits and any such renewals will be for a time period equal to the original term and subject to these terms and conditions.
14. Single Maturity Certificates are non-renewable at maturity and the funds on deposit in your certificate will be placed in a non-interest bearing account. No
interest will be paid on the deposit after maturity.
i
EARLY WITHDRAWAL PENALTY:
An early withdrawal penalty may be assessed to depositors who withdraw their certificate prior to its scheduled maturity. In no event shall such penalty be less
than seven (7) days simple interest on the certificate amount. '
The following is an explanation of our penalty.
1) Certificates of 29 days or less: If a certificate is withdrawn prior to its original, renewed or extended maturity, the depositor shall forfeit an amount equal to
the amount of interest on the amount withdrawn that would have been earned for the full term of the certificate at the interest rate being paid on the certificate
at the time of withdrawal, regardless of the length of time the funds withdrawn have remained in the certificate.
2) Certificates of 30 to 89 days: If a certificate is withdrawn prior to its original, renewed or extended maturity, the depositor shall forfeit an amount equal to
one months interest on the amount withdrawn at the interest rate being paid on the certificate at the time of withdrawal, regardless of the length of time the
funds withdrawn have remained in the certificate.
3) Certificates of 3 months or more but less than 1 year: If a certificate is withdrawn prior to its original, renewed or extended maturity, the depositor shall
forfeit an amount equal to three months interest on the amount withdrawn at the interest rate being paid on the certificate at the time of withdrawal, regardless
of the length of time the funds withdrawn have remained in the certificate.
4) Certificates of 1 year or more: If a certificate is withdrawn prior to its original, renewed or extended maturity, the depositor shall forfeit an amount equal to
the greater of (1) six months interest on the amount withdrawn at the interest rate being paid on the certificate at the time of withdrawal, regardless of the
length of time the funds withdrawn have remained in the certificate, or (2) the Market Yield Adjustment.
The Market Yield Adjustment is calculated as follows:
(1) Determine the remaining tens of the certificate in whole months and divide by 12. This is the "Time Factor".
(2) Determine the average Treasury Constant Maturity Index (TCMI) rate for the previous week as provided by the Federal Reserve Bank's H-15 statistical
release (or its equivalent if the H-15 release is discontinued). Use the rate for the TCMI term equal to the remaining term of the certificate, or the next
longer TCMI term if the remaining term of the certificate is not equal to a term published by the Federal Reserve Bank.
(3) Subtract the current interest rate being paid on the certificate from the TCMI rate determined in step 2. This is the Rate Factor.
(4) Multiply the Rate Factor determined in step 3 by the amount of principal being withdrawn and by the Time Factor determined in step 1. Ty e-s-u is the
'Market Yield Adjustment'. C
The TCMI rates are available from any Federal Reserve Bank or from any First Bank offica~_
By~1:;
Authorized Bank Signature
Customer Receipt - PLF 12t503`.
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Parcel Map No. 26748
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