CC - Item 3E - Release of Bond Parcel Map 270120 0
ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, INTERIM CITY MANAGER G_
DATE: AUGUST 28, 2007
SUBJECT: RELEASE OF BOND - PARCEL MAP 27012
9512 VALLEY BOULEVARD
SUMMARY
A Faithful Performance Bond and a Labor and Material Bond were required to
guarantee construction of new curb and gutter, sidewalk, driveways, and parkway
drains for Parcel Map 27012. In lieu of bonds, a Certificate of Deposit was issued to the
City in the amount of $32,700.
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. 27012
approved by the Rosemead Planning Commission on January 6, 2003, the subdivider is
required to construct new curb and gutter, sidewalk, driveways, and parkway drains
subsequent to recordation of the parcel map. On September 28, 2004, 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 $32,700. 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.
Prepared by:
4
Ken Rukavina, P.E.
City Engineer
APPROVED FOR CITY COUNCIL AGENDA: 0 '
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City Council Meeting
August 28, 2007
Page 2 of 2
Submitted by:
A, *Z '
,)A r. Y,%
~-e-r
Brian Saeki
Interim Community Development Director
Attachment A: Undertaking Agreement & Certificate of Deposit
• •
CITY OF ROSEMEAD
UNDERTAKING AGREEMENT
THIS AGREEMENT made and entered this t' day of , 2004, by and
between the CITY OF ROSEMEAD, State of California, acting by and through its City
Council, hereinafter referred to as "CITY" and
? 57_~- W, /V,s,gjvc
(ADDRESS)
hereinafter called the "CONTRACTOR."
WITNESSETH:
C2 ~/0 U 7
FIRST: The CONTRACTOR, for and in consideration of the approval of the final
map of that certain land division known as Parcel Map 27012 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:
Miscellaneous public right-of-way improvements 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 $21,800.00
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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 orthe 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
Certificate of Deposit in an amount equal to $32,700.00 to guarantee faithful performance of
all the provisions of this Agreement and for the payment of all persons performing labor and
• •
furnishing material in connection with this agreement. If the Certificate of Deposit, in the
opinion of the CITY, become insufficient, CONTRACTOR agrees to replenish said
Certificate of Deposit 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.
By► C-►
VV U
Tz-T6
By
(Seal)
Note:
SIGNATURES MUST BE ACKNOWLEDGED
BEFORE A NOTARY PUBLIC.
(ATTACH APPROPRIATE ACKNOWLEDGEMENTS)
By 2&,,,r
Mayor of tf(e City of Rosemead
Attested
City Clerk o the City of Rosemed
1 irmation of L1.ime PI pasi
crow 1
l l ,lt, t :
NON-NEGOTIABLE
NON
T
AN
FERABLE
FAR EAST NATIONAL DANK
-
R
S
Account Number
6428006591
FDIC
*
AMemeerol SihOPaC Holdings
ID Number
1
-
Date
8/2312004
Initial Term
24 Months
This EvidencesA
(Initial) Maturity Date
8/23/2006
Deposit Tn The Name(s) of
(Initial) Interest Rate
2.250
City of Rosemead, State of California,
APY
2.?i0 %
F.B.O.Hotels Southern California, LLC
Accounttype:
Variable Rate
Automatic Renewal
Additions not permitted
Deposit " THIRTY TWO
THOUSAND SEVEN HUNDRED DOLLARS AND ZERO CENTS"
Dogs s 32
,700.00
N/A
TA>TAYER'S IDENTIFICATION NUMBER
Rate information - This is a variable rate TD. The interest rate is determined by
the FENB Prime Rate with a fixed margin according to the term. Different terms
will have different margins. The interest rate will be changed on the following day
after the FENB Prime rate changes. FENB Prime rate is the same as the Prime
rate published in the Wall Street Journal. Currently, the interest rate on your
account is 2.250% with an annual percentage yield of 2.250%.
Term - The to to of this account is from one year to three years, based on a 365-
day calendar.
For the 12 month-term, the interest rate is FENB
Prime rate minus 2.50%
Fur the 24 month-terns. the interest rate is FL•NB
Prime rate minus 2.25%
For the 36 month-term, the interest rate is
Prime rate minus 2.15%
Margins are subject to change without notice
Compounding frequency - Interest is compounded monthly.
Crediting fie-quency - Interest will be credited monthly.
Minimum balance to open the account - you must deposit 55,000 to open this
Minimum balance to obtain the annual percentage yield disclosed - you must
maintain a minimum balance of $5,000 in the account each day to obtain the
disclosed annual percentage yield.
Daily balance computation method - 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.
Accrual of interest on non-cash deposits - Interest begins to accrue no later
than the business day we receive credit for the non-cash items (for example,
checks) that you deposit.
Transaction limitations - You cannot make any deposits into your account
before maturity. You may make withdrawals of principal from your account
before maturity. Principal withdrawn before maturity is included in the
amount subiect to an
Time requirements - your account will mature August 23. 2006
Early withdrawal penalties (a penalty may be imposed for withdrawals before
maturity):
• If your account has an original maturity of 32 days to one year, the penalty we may
impose will equal one month interest on the amount withdrawn Penalty calculation
will be based upon the prevailing rate at the time of withdrawal.
• if your account has an original maturity of more than one year, the penalty we may
impose will equal three months interest on the amount withdrawn Penaltv calculation
will he bused upon the prn'athng rate at the time nI 1"1hdn11c1!
in some cases, the penalty charged may result in a reduction of the original
principal balance.
There are certain circumstances, such as the death or incompetence of an owner,
where we may waive or reduce this penalty. See your separate plan disclosure if
this account is part of an IRA or other tax qualified plan.
Withdrawal of interest prior to maturity - the annual percentage yield assumes
interest will remain on deposit until maturity. A withdrawal will reduce eamings.
Automatically renewable time account - this account is automatically
renewable at maturity. The renewal terms and interest rate will be based on the
product availability at the maturing date. If the product is available. each renewal
term will be the same as the original term, beginning on the maturity date. The
interest rate will be the same we offer on new time deposits on the maturity date,
which have the same terra, minimum balance, and other features as the original
time deposit. If the product has been suspended or terminated by the bank, the TD
will be renewed for 12 months. The interest rate will be the same as the interest
rate offered for time deposits available on the maturing date for the same term.
You will have ten calendar days after maturity to withdraw the funds from an
automatically renewable time account without a penalty.
You may prevent renewal by withdrawing the funds in the account at maturity, by
withdrawing the funds within the grace period or by providing written notice of
non-renewal within the grace period mentioned above. If you prevent renewal.
interest will not accrue after final maturity.
Product Availability -The bank may suspend or terminate the oftcr of the
Prime Rate TD at any time without prior notice.
Prime TD 1103 Member FDIC