CC - Item 4D - Relesase of Letter of Credit• 0
x 4 ° ROSEMEAD CITY COUNCIL
r,..; STAFF REPORT
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TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, CITY MANAGER l'F
DATE: JANUARY 8, 2008
SUBJECT: RELEASE OF LETTER OF CREDIT -TRACT MAP 63143
4433 WALNUT GROVE AVENUE
SUMMARY
A Faithful Performance Bond. and a Labor and Material Bond were required to
guarantee construction of curb and gutter, sidewalk, a new driveway, parkway drains,
planting two parkway trees, relocation of a storm drain catch basin, and installation of
survey monuments for Tract Map 63143. In lieu of bonds, a Letter of Credit was issued
to the City in the amount of $ 64,650.
Staff Recommendation
Staff recommends that the City Council accept the public improvements and release the
Letter of Credit.
ANALYSIS
In accordance with the Conditions of Approval for Tentative Tract Map No. 63143
approved by the Rosemead Planning Commission on October 3, 2005, the subdivider is
required to construct curb and gutter, sidewalk, a new driveway, parkway drains, plant
two parkway trees, relocate a storm drain catch basin, and install survey monuments
subsequent to recordation of the parcel map. On October 24, 2006, 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 Letter of Credit in the amount of
$64,650. 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:
oe Wan P.
City Engineer
APPROVED FOR CITY COUNCIL AGENDA: O
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City Council Meeting
January 8,2008
Page 2 of 2
Submitted
Brian Sae i
Assistan ity Manager
Attachment A: Undertaking Agreement and Letter of Credit
Attachment A
CITY OF ROSEMEAD
UNDERTAKING AGREEMENT
THIS AGREEMENT made and entered this 9th day of August , 2006, by
and between the CITY OF ROSEMEAD, State of California, acting by and through its City
Council, hereinafter referred to as "CITY" and
524 W Garvey Avenue Monterey Park CA 91754
(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 63143 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:
Construct curb and gutter, sidewalk, driveway, parkway drains; relocation of
storm drain catch basin; and installation of 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 $43,100.
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 Letter of Credit in an amount of Sixty-Four Thousand Six Hundred
Fifty Dollars ($64,650) to guarantee faithful performance of all the provisions of this
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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 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 The 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.
SANDY YANG
Commission # 1438160
s Notary Public - California
(Seal) Los Angeles County
My Comm. Expires Sep 7, 20071
Note
By
By
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
• . 9
ceL Lrnlamia ALL=PURPOSE ACKNOWLEDGMENT
State of California
ss.
County of A
On • >'0-0 6 before me,
N
le of Dlfut fe.g.. -3ane Doe, personally <-ns~-~~ m
~appeared
❑ pprsonally known to me _
improved to me on the basis of'satisfactory
evidence
QSANDYYANG
- CalHomla
=P=.
Las Angeles Courtly
My y Comm. Fxplies Sep 7, 2007
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 my hand and official seal.
igmWm 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: p
Document Date: Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name: UNLIalaUxaw,
WEEEM
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ndividual
O Corporate Officer-Title(s):
❑ Partner - ❑Limited ❑ General
Attorney-in-Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
0 1999 National Notary A odMlon • 9350 D. Sat. Ave., P.C. B.. 2.02 • Chatsmnh, CA 91313.2402 • ww.neuo,aino,ary..r9 11-
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;;;'l American
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Continental Bank
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IRREVOCABLE STANDBY LETTER OF CREDIT
Letter of credit No. LC-2006-03
Issue Date August 9, 2006 Expiry Date : August 9, 2008
Applicant Walnut Rosin, LLC
524 W. Garvey Avenue
Monterey Park, CA 91754
Beneficiary: City of Rosemead
Rosemead, CA 91770
Document
Presentation: American Continental Bank
17700 Castleton Street, #100
City of Industry, CA 91748
1. We hereby establish our Irrevocable Standby Letter of Credit in your favor and
authorize you to drawn on us to an aggregate amount of U.S. Dollars Sixty Four
Thousand Six Hundred Fifty only (USS64,650.00)
2. We shall honor all drafts at sight drawn in compliance with the terms of this credit
if presented at this office on or before August 9, 2008 accompanied by a
statement executed by City of Rosemead stating as follows:
This drawing represents amount due and owing, including amounts due and
owing prior to the date of this credit, by the agent to City of Rosemead under
the construction project located at 4433 Walnut Grove, Rosemead, CA
3. We shall automatically extend this credit for an additional period of one year from
the present of each before expiration date, unless you receive notice in writing not
less than 60 days before such expiration date, that we elect not to renew this
credit. We shall send our notice by certified mail to the above address to the
attention of the Sales Manager.
4. Partial Drawings under this Letter of Credit are allowed.
THIS CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE
FOR DOCUMENTARY CREDITS (1993 REVISION) INTERNATIONAL
CHAMBER OF COMMERCE, PUBLICATION NO. 500.
Terry Lou, Chairman/CEO .
17700 Castleton Street, Suite 100, City of Industry, CA 91748
Tel: 626-363-8988 Fax: 626-363-8980