CC - Item 4D - Release of Bonds Tract Map 61208•
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: ANDY LAZZARETTO, CITY MANAG 9&
DATE: APRIL 4, 2006
RE: RELEASE OF BONDS - TRACT MAP 61208
VACANT LOT ON RIO HONDO AVENUE NORTH OF VALLEY BLVD.
A Faithful Performance Bond and a Labor Bond and Material Bond were required to
guarantee construction of sewer mainline and laterals. In lieu of bonds, Letters of Credit
were issued to the City in the amounts of $26,250 and $52,500 for Labor & Materials and
Faithful Performance Bonds, respectively. The improvements have been installed
satisfactorily. Attached are the undertaking agreement and required surety for your
information.
RECOMMENDATION
It is recommended that the City Council accept the public improvements and authorize
release of bonds.
Attachment
CITY OF RCSEMEAD
UNDERTAKING AGREEMENT
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THIS AGREEMENT made and entered this 15th day of November 2005, by and
between the C1 7Y OF ROSEMEAD, State of California, acting by and through its City
Council, hereinafter referred to as "CITY" and
OWEN DEVELOPMENT
(NAME)
4275 N. Baldwin Ave, E1 Monte, CA 91731
(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 61208 hereby agrees, at the
CONTRACTOR'S own cost and expense to famish 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 mainline sewer and house laterals per sewer plans PC No. 05-10
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 co all work and fumish all materials necessary to complete the
work is $
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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 io 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 CI T Y a Letter of Credit in an amount of Seventy Eipht Thousand Seven
Hundred Fifty Dollars ($78,750.00) to guarantee faithful performance of all the provisions of
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this agreement and for the payment of all persons performing labor and furnishings
materials in connection with this agreement. If the Letter of Credit, in the opinion of the
CITY, becomes insufficient, CONTRACTOR agrees to renew said Letter of Credit within ten
days of receiving notice that said Letter of Credit 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
Suretv of Sureties on any Bond attached hereto.
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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.
t
By
(Seal)
Note:
SIGNATURES MUST BE ACKNOWLEDGED
BEFORE A NOTARY PUBLIC.
(ATTACH APPROPRIATE ACKNOWLEDGEMENTS)
By ho he of emeac
Attested
~J
ALL PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF
On
before me, L -J
a Notary Public in and for said date, personally appeared
personally known to me (qf-pfeve
subscribed to the withi instrun
authorized capacit i , and that
which the persorti(-s acted, execut
WITNESS my hand and official seal.
Signature
n the basis o
nd acknowledged to me 0
;her/their signaturE WfOn the
instrument.
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to be the persoc(g) whose
hey executed the same
the personW, or the entity
KAY GAS
GOAD[ #1382247
NOTARY PuBUC • CAMRNU
LOS ANGELES MAP
Of CMVM Eq. Od 29, 2006
area
behalf of
ATTENTION NOTARY: Although the information requested below is OPTIONAL, it could prevent fraudulent attachment of
this certificate to another document.
THIS CERTIFICATE MUST BE ATTACHED TO
THE DOCUMENT DESCRIBED AT RIGHT.
Title of Document Type Undertaking Agreement
Number of Pages 5
Date of Document November 15, 2005
Signer(s) Other Than Named Above
C~
CITIZENS
BUSINESS BANK
TRe Bonk Blaine, Banks U.
i
International Services
701 North Haven Avenue, Suite 210
Ontario. California 91764
Phone (909) 950-4030
Fax (909) 451-21M
Swift: CBBKUS61,
November 15, 2005
City of Rosemead
Ken Rukavina, City Engineer
8838 E. Valley Boulevard
Rosemead, CA 91770
0
Re: Irrevocable Letter of Credit Number 09-SB-4656
For account of Rio Hondo, LLC
Labor and Materials-Improvements-Tract No. 61208
Gentlemen:
At the request of Rio Hondo, LLC we hereby issue our Irrevocable Standby Letter of
Credit Number 09-SB-4656 in your favor up to an aggregate amount of Twenty Six
Thousand Two Hundred Fifty and No/100ths U.S. Dollars ($26,250.00) available by your
drafts at sight drawn on "Citizens Business Bank", Expiring November 15, 2006, unless
automatically renewed as herein provided, accompanied by the following:
1) This original Letter of Credit and all subsequent amendments.
2) A dated document purportedly signed by an authorized official of the City
of Rosemead stating that:
a) Rio Hondo, LLC have failed to meet the performance of that
certain Subdivision Improvement Agreement relating to Tract No.
61208 between the City of Rosemead, State of California and Rio
Hondo, LLC or
b) Funds are to be made immediately available to the City of
Rosemead, as Rio Hondo, LLC has failed to complete and/or pay
for Improvements-Labor and Materials.
This Letter of Credit shall be automatically extended for additional periods of one year
each from the present or future expiration date, unless we notify you and (the
"Customer") via courier or certified mail at least 60 (sixty) calendar days prior to the then
expiration date that we have elected not to renew this Letter of Credit.
0
0
Page 1 or 2
November 15, 2005
City of Rosemead
Re: Irrevocable Letter of Credit Number 09-SB-4656
For account of Rio Hondo, LLC
Labor and Materials-Improvements-Tract No. 61208
Page 2
We hereby agree with you that drawings drawn under and in compliance with the terms of
this Credit shall be duly honored if presented to Citizens Business Bank, 701 North
Haven Avenue, Suite 210, Ontario, California 91764 on or before expiry date.
Except so far as otherwise expressly stated herein, this Letter of Credit is Subject to the
"Uniform Customs Practice for Documentary Credits (1993 Revision), International
Chamber of Commerce Publication Number 500."
Sincerely,
J. aslowski
Vice President/Manager
International Banking Department
CITIZENS
BUSINESS BANK
7h. Bonk a-- B-f. On
0
International Sen•iees
701 ;Forth Haven Avenue. Suite 210
Ontario, California 91764
Phone (909) 980-4030
Fax (909) 451-21111
Swift: CHIKUS6L
November 15, 2005
City of Rosemead
Ken Rukavina, City Engineer
8838 E. Valley Boulevard
Rosemead, CA 91770
Re: Irrevocable Letter of Credit Number 09-SB-4658
For account of Rio Hondo, LLC
Faithful Performance-Improvements-Tract No. 61208
Gentlemen:
At the request of Rio Hondo, LLC we hereby issue our Irrevocable Standby Letter of
Credit Number 09-SB-4658 in your favor up to an aggregate amount of Fifty Two
Thousand Five Hundred and No/100ths U.S. Dollars ($52,500.00) available by your
drafts at sight drawn on "Citizens Business Bank", Expiring November 15, 2006, unless
automatically renewed as herein provided, accompanied by the following:
1) This original Letter of Credit and all subsequent amendments.
2) A dated document purportedly signed by an authorized official of the City
of Rosemead stating that:
a) Rio Hondo, LLC have failed to meet the performance of that
certain Subdivision Improvement Agreement relating to Tract No.
61208 between the City of Rosemead, State of California and Rio
Hondo, LLC or
b) Funds are to be made immediately available to the City of
Rosemead, as Rio Hondo, LLC has failed to complete and/or pay
for Improvements-Faithful Performance.
This Letter of Credit shall be automatically extended for additional periods of one year
each from the present or future expiration date, unless we notify you and (the
"Customer") via courier or certified mail at least 60 (sixty) calendar days prior to the then
expiration date that we have elected not to renew this Letter of Credit.
Page 1 or 2
0 0
November 15, 2005
City of Rosemead
Re: Irrevocable Letter of Credit Number 09-SB-4658
For account of Rio Hondo, LLC
Faithful Performance-Improvements-Tract No. 61208
Page 2
We hereby agree with you that drawings drawn under and in compliance with the terms of
this Credit shall be duly honored if presented to Citizens Business Bank, 701 North
Haven Avenue, Suite 210, Ontario, California 91764 on or before expiry date.
Except so far as otherwise expressly stated herein, this Letter of Credit is Subject to the
"Uniform Customs Practice for Documentary Credits (1993 Revision), International
Chamber of Commerce Publication Number 500."
Sincerely,
rank J. Maslowski
Vice President/Manager
International Banking Department