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HomeMy WebLinkAboutRelease of Bonds - Spanish Walk - D.R. Hortonx� STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: April 30, 2020 PREPARED BY: Christina Canales, Engineering Assistant REQUEST: Authorize the release of the faithful performance traffic signal bond in the amount of $400,000 and the labor and materials traffic signal bond in the amount of $200,000 for the Spanish Walk project and accept a cash deposit in the amount of $21,520. Recommendation Authorize the release of the faithful performance traffic signal bond in the amount of $400,000 and the labor and materials traffic signal bond in the amount of $200,000 for the Spanish Walk project and accept a cash deposit in the amount of $21,520. Strategic Plan This motion does not impact the strategic plan. Background Analysis In 2005 the Planning Commission approved conditions of approval for the Spanish Walk project. The conditions required the applicant to submit bonds for half the amount of costs for the construction of a traffic signal at the intersection of Gerald Ford Drive and the proposed access to the apartment site, and another bond for half the amount of construction costs for a traffic signal at Frank Sinatra Drive and Eldorado Drive. At the time the conditions of approval were approved, this project had three separate developers interested in constructing residential units throughout the project. The only developer that was issued grading permits to begin construction was D.R. Horton, who submitted a faithful performance bond for traffic signal construction in the amount of $400,000.. $200,000 for each traffic signal and $200,000 for a labor and materials bond. The bonds were submitted with the expectation that other developers would eventually begin the process of obtaining grading permits for construction and substitute new bonds in place of the bonds D.R. Horton submitted. Construction for the D.R. Horton phase of the project is complete. They have submitted a traffic signal warrant analysis to analyze the need for the construction of the two remaining traffic signals conditioned for this project. The conclusion of the analysis is that a traffic signal is not needed at the entrance of the proposed apartment site off of Gerald Ford Drive. There is a need for a traffic signal at the intersection of Frank Sinatra Drive April 30, 2020 - Staff Report Authorize the Release of the Faithful Performance and Labor and Materials Traffic Signal Bonds for the Spanish Walk Project Page 2 of 2 and Eldorado Drive once that site is developed. D.R. Horton's fair share for the traffic signal is 10.76% of the faithful performance bond, which calculates to be $21,520. Therefore, staff requests the authorization to release the faithful performance traffic signal bond in the amount of $400,000 and the labor and materials traffic signal bond in the amount of $200,000 for the Spanish Walk project and accept a cash deposit of $21,520 for the fair share of the cost of a traffic signal. Fiscal Analvsis There is no fiscal impact associated with this action. LEGAL REVIEW R.&-Pa W. d/angk ....c.L Robert W. Hargreaves City Attorney DEPT. REVIEW 9,OWL 47a+zcZ¢ FINANCIAL REVIEW ga-i'Le-t lit. 1ft.em Tom Garcia. P.E. Janet M. Moore Director of Public Works Director of Finance _City Manager, Lauri Aylaian: 2au44- &L44,n APPLICANT: D.R. Horton Mario Ornelas 2280 Wardlow Circle, Ste. 100 Corona, CA 92880 ATTACHMENTS: Traffic Signal Bonds Conditions of Approval Exhibit ASSISTANT j CITY MANAGER I VgmdV TLi` Andy Firestine Assistant City Manager EXTENSION RIDER To be attached to and form part of Bond No. 800002363 Issued to (Principal): D. R. Horton Los Angeles Holding Company, Inc. Type of Bond: Subdivision Faithful Performance Development Name: Spanish Walk, Two Future Traffic Signals dated the 22"d day of August, 2013, and issued by Atlantic Specialty Insurance Company in the penal sum of. Four Hundred Thousand and 00/100 Dollars ($400,000.00) and in favor of City, of Palm Desert. In consideration of the agreed prernium charged for this bond, it is understood and agreed that Atlantic Specialty Insurance Company consents that effective the 3"' day of' August, 2015 said bond shall be amended as follows: Extend the bond term to September 11, 2017 Provided, however that the attached bond shall be subject to all its agreements, limitations and conditions except herein expressly modified, and further that the liability of the Surety under the attached bond and the bond as amended by this rider shall not be cumulative. Signed, scaled and dated this 14'4 day of October, 201.5. I).R. 1-1orton L ngeles Holding Company, Inc. By: T&mkjm,- Atlantic Specialty Insurance Company By: 4. Marga et A. Cinem, Attorney -in -Fact c/o Willis of Florida, Inc. 4211 W. Boy Scout Blvd., Ste. 1000 Tampa, Fl, 33607 Inquiries: (813) 281-2095 Senate Bill 1050, amends Sections 1189 and 1195 of the Civil Code and Section 8202 of the Government Code, relating to notaries public. The below physical format of the new disclosure notice is an example, for purposes of illustration. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of Cal' rnia County of On N or _e r s before mc,Awjl �a L[`I�! �� ' "'�i t (here insert name and title of officer), personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose naii'le(s) is subscribed to the within instrument and acknowledged to me that "he/shay executed the same in MOier'hheir authorized capacity(iZs), and that by hid/herk4ir signatureN on the instrument the persoftK or the entity upon behalf of which the personN acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the Stale of California that the foregoing paragraph is true and correct WITNESS o icial seal. I' I Signature -- _ - -- (Seal) vN GUTiERRE•Z # 20604047 z . `_ Notary F,:bhc • Ca.,lorn,a } Riverside County My Comm. Expires Mar 8, 2018� ANGELYN GUTIERREZ Commission 0 2060404 z -. Notary Public - California Riverside County Mr Comm. Expires Mar 8.2018 ACKNOWLEDGEMENT BY SURETY STATE OF FLORIDA COUNTY OF HILLSBOROUGH I SS. On this 14'h day of October, 2015 before me, personally came Margaret A. Ginem, who is personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the within Instrument as Attorney -In -Fact on behalf of Atlantic Specialty Insurance Company, and acknowledged to me that he/she executed the within instrument on behalf of said surety company and was duly authorized to do. In witness whereof, I have signed and affixed my official seal on the date in this certificate first above written. Signature 4ta�cca, `-P-aw Gloria Robb ;✓%:%i�kt GLORIA ROBB .: CmuNssion # FF 194D62 Expires January 28, 2019 •'! Q,••; \°+•� bowl Thu lmy Fri Mwro ll M&St 01q This area jar Official Nolarial Seal One Beacon INSURANCE GROU ' Power of Attorney KNOW ALL MEN BY THESE PRESENTS, that ATLANTIC SPECIALTY INSURANCE COMPANY, a New York corTxxation with its principal office in Minnetonka. stionesota, does herchy constitute and appoint: Aneit Cardinale, David H. Carr, Margaret A. Ginnn, Eileen C. Hcard, Brandy L. Bnich, Robert H. [kind, each individually if there be more than one named, its true and lawful Attomey-in-Fact. to make, execute, sea) and dcliscr, for and on its (-half as Surety, any and dfl bonds. recognizances, contracts of indemnity, and all other writings obligatory in die nature thereof; provided that no bond or undertaking executed under tins authority shall exceed in amount the sum of: sixty million dollars (%0,000,00% and cite execution of such bonds, recognizance-s, contracts of indemnity. and all other writings obligatory in the nature thereof in pursuance of these presents, shall be as binding upon said Company as if they had been fully signed by an authorized officer of the Company and waled w ith the Company seal. This Power -of Attorney is made and executed by authority of tic following resolutions adopted by die Board of Directors of ATLANTIC SPECIALTY INSURANCE COMPANY on the hwcnty -fifth day of September, 2012: Resolved: That die PresiJcrl any Senior Vice President or Vice President (each an -Authorized Officer' ) may execute for and in behalf of the Comp my any and all bonds. recognizances, contractS of indemnity. and all other writ:ngS ohlicarory in the nature thereof. and affix the seal of the Company thereto, and that the Authorized Officer may appoint and aulhorizc an Attorney -in Fact ru cxccutc on behalf of tic Company any and all such insiruincnt_s and to affix the Company seal thereto; and that the Authorized Officer may at any time remove any w.h A1lorncy in 1-3ct and res okc all power and authority Siren to auy Such Attorney ill Fact. Resolved: That the Attorney -in -Fact may be gi%cn full power and authority to execute for and in the name and on hchalf of the Company any and all hoods, :ecoenizances, contracts of indemnity, and all other writings obligatory in the nature thereof, and any such instrument executed by any such Attorney -in Fact ShcII be as binding upon the Company as if signed and Scaled by an Authorized Officer and, further, the Attnmey-in-Fact is hereby authorized to verify any affid.ica required to he attached to bonds. Tliis poxvcr of attorney is signed and ,cited by facsimile under die authority of the following Resolution adopted by die Board of Directors of A'1 L4NTIC SPECIALTY INSLRANCE COMPANY on the twenty-fifth clay of Scptenitilr, 2012 Resolved: That the signature of an Authorized Officer, the signature of the Secretary or the Assistom Secretary, and the Company cal obey he affixed by facsinule to any power of aunniey or to any certificate relating dxiein appointing an Atone) in Fact fir purposes only of executurg and Scaling any bond. undertaking, recogr iris c or other w riiien obligation in the nature bercof, and any stir h signature and seal whcrc Su used, twin hereby adopted by the Company as the original signature of wch officer and the onginal seal of the Company, io be valid and hindrne upon the Comp -my with the same force avid effect as diurr_^i manually affixed IN Wll NE -SS WHEREOF. ATLANTIC SPECIALTY INSURANCE COMPANY has calved these present:, to be signed by an .Au`wtized Officer anal the seal of the Cornpmny Ili he affixed this cigluh day of Dec:ember.'_014. �40 �pRPoggrF C. rv, SEAL i Y 1996 O i By N TATC OF MINNESOTA A. '4SW rocb Paul J. Brehm, Senior Vice President IIENNIPL•N COUNTY s1 {r „*;:'" On thus eighth d,ty of Decemhcr, 201.1, before the personally came l/aul J. Brehm, Senior Vice President of ATl-ANTiC SPECIALTY INSURANC17 COMPANY. ill nhc personally known to be the individual and officerdex:rbed in and who executed the preceding insir-unient, and he acknowledged the execution of the S.i ne, and heing by Ole duly swom, that %he is the said officer of the Company afore•+aid, and that the seal affixed to the preceding .n,rrurucnt is the Seal of said Company and 111.it the Said sill .11111 the SI^nature a1 SLih Officer was duly affixed and SA Notary Pubill:S slate of Minnesota My Commission Expires January 31 , 2020 Notary Public V S. 1, the u dcrsn�n;d, *% aq ,ta. t Se. re' ry of A I'L.AN TIC SPECIALTY INSUR ANCI: COMP,\\Y, a NcwYork C'otpnrat,on, do hereby ccnnfy that tine forceoin: potter of .weirs) is in full force and has nor been rc • hkecl, and the resolutions set forth ,:box c are now in force. Sinned and scaled. Dated day of �. �1S .................. E V IN g. 4 �oRPoa�rF'� SEAL me =r= 1986 0 >r2 tiF lk a w Yo ao,. This Pow cr of Attorric) expires 0,tober 1.2017 ��. James G. Jordan, Assiswm Sarcuuy EXTENSION RIDER To be attached to and form part of Bond No. 800002363 Issued to (Principal): D. R. Horton Los Angeles Holding Company, Inc. Type of Bond: Subdivision Payment Bond (Labor & Materials) Development Name: Spanish Walk, Two Future Traffic Signals dated the 22nd day of August, 2013, and issued by Atlantic Specialty Insurance Company in the penal sum of: Two Hundred Thousand and 00/100 Dollars (5200,000.00) and in favor of City of Palm Desert. In consideration of the agreed premium charged for this bond, it is understood and agreed that Atlantic Specialty Insurance Company consents that effective the 3`d day of August, 2015 said bond shall be amended as follows: Extend the bond term to September 11, 2017 Provided, however that the attached bond shall be subject to all its agreements, limitations and conditions except herein expressly modified, and further that the liability of the Surety under the attached bond and the bond as amended by this rider shall not be cumulative. Signed, sealed and dated this 14`h day of October, 2015. D.R. Morton Los Angeles Holding Company, Inc. By: JJA _6cPv- Atlantic Specialty Insurance Company By: -177� - Margar t A. Ginem, Attorney -in -tact c/o Willis of Florida, Inc. 4211 W. Boy Scout Blvd., Ste. 1000 "Tampa, FL 33607 Inquiries: (813) 281-2095 Senate Bill 1050, amends Sections 1189 and 1195 of the Civil Code and Section 8202 of the Government Code, relating to notaries public. The below physical format of the new disclosure notice is an example, for purposes of illustration. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of CaUfornia County of K I , / On 4l * s before rne, J 1�P� t% C (here insert name and title of officer), personally appeared a lixt i who proved to me on the basis of satisfactory evidence to be the person whose names) i&,�re subscribed to the within instrument and acknowled red to me that l\/she/tlt�t executed the same in It's/her/tXr authorized capacity(tvc ), and that by hZie-r' fleir signature(,$) on the instrument the person(-4, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS m i official seal. Signature (Seal) ANGEIYN GUTIERREZ Commission # 2060404 i Notary Public • California Z Riversi4e County My Comm. Expires Mar 8. 2018� ACKNOWLEDGEMENT BY SURETY STATE OF FLORIDA COUNTY OF HILLSBOROUGH I SS. On this 14'h day of October, 2015 before me, personally came Margaret A. Ginem, who is personally known to me (or proved to me on the basis of satisfactory evidence) to be the person who executed the within Instrument as Attorney -In -Fact on behalf of Atlantic Specialty Insurance Company, and acknowledged to me that he/she executed the within instrument on behalf of said surety company and was duly authorized to do. In witness whereof, I have signed and affixed my official seal on the date in this certificate first above written. Signature �V� rJ Gloria Robb GLORIA ROBB Comm.Ssion # FF 194062 a Expires January 26.2019 �' qt. ea a.a m Ar F.n.c. eoa usro,o This area for Official Notarial Seal One Beacon Power of Attorney I MSURANCE GROUP KNOW ALL MEN BY THESE PRESLNTS, that ATLANTIC SPECIALTY INSURANCE COMPANY. a New York corporation with its principal office in Minnetonka. Dlinnesota, does hereby constitute and appoint Anett Cardinale, David If. Carr, t\largaret A. Ginenr, Elleen C. Heard, Brandy L. Balch, Robert H. Bond, each individually if there be more than one named, its we and lawful Attorncy-in Fact, to make, execute, seal and deliver, for and on its Ilcluilf;Li surety• any and all bonds, rccognizances, contracts of indemnity, and all other writings obligatory in the nature thereof. provided that no Nind or undertaking executed under this .authority shall exceed in amount the sum of: sixty million dollars (S60,o00,000) and die execution of such bonds, recogni-zances, contract.%(if indemnity, and all other writings obligatory in the nature thereof in pursuance of these presents, shall be as binding upon said Company as if they had been fully signed by an authorized officer of the Company and scaled w it: the Company seal. This Power of Attorncy is made and executed by authority of the following resolutions adopted by the Board of Directors of ATLANTIC SPECIALTY INSURANCE: COMPANY on the twenty-fifth day of September, 2012: Resolved That the President, any Senior Vice President or Vice -President (each an "Authorized Officer") may execute for and in behalf of the Company any Lind all bonds, recognizance-,, contracts of indemnity, and all other writings obligatory in the nature thereof, and affix the seal of the Conipany thereto; and that the Authorized Officer may appoint and authorize an Attorncy-in-Fact to execute on behalf of die Company any and all such instruments and to affix die Company seal thereio, and that the Authorized Officer may at any time rcnx)vc any such Ationhcy-in-Fact and revoke all power and authority given to any such Attorney =n Fact. Rcsol•cd: That the Attorney -in -Fact may be given full power and auihority to execuic for and in the narrie and on behalf of the Company any and all bond,. recognizances. contacts of indemnity, and all other writings obligatory in the nature thereof, and any such instrument executed by any such Attorney in Fact shall be as binding upon the Company as if signed and scaled by an Authorized Officer and, further, the Attorney -in -Fact is hereby authorized to verify any affidavit required to be attached to bonds. This power of attorney i% signed and sealed by facsimile under the authority of the following Rc-oluuon adopted by tic Board of Directors of ATLANTIC SPECIALTY INSURANCE COMPANY on the twenty-fifth day of September. 2012: Resoled That the signature of an Authorized Officer, the signature of the Secretary or the Assistant Secretary, and the Company seal may be affixed by fa, sinhile to any pnwer of monhcy or to any ceriificate relating thereto appointing an Attome) -in Fact for purposes only of executing and .ating any hand, undermkin,t, recngnizmce or other written obligation in the n.Iture tlhcicof, and any such signmure and seal where so used, being hereby adopted by the Company as the original signature of such officer and the original seal of the Company, to be valid and binduig upon the Company with the sortie fnrce and effect as hlhouirh manually affixed. iN WI I NLSS WHLREOF, ATI. VNTIC SPECIALTY 1NSUR \NCL- COMPANY ha, caused these pYcsent, to be signed by all Authorized Offcer and the seal of the Conipany to hi• aiftxed this ciulvh day of Decembcr, 1014 LpPPOHgrF90`-, rN SEAL m} 1986 0j By STA rF: OF IMnNNESOTA °yL ��'K VOP�JD ' Pawl J. Brehm, Senior Vice iresident III-NNIPEN COUNI'Y On tlus eighth day of December, 2014. before me personally time Paul J. Brehm, Senior Viet: President of ATLANTIC SPECIALTY INSURANCE COMPANY. to me personally known to be the individual and officer described in and who executed tie preceding instrument. and he ackiwwledged the execution of the same, and being by Pile duly swont, that he is the said officer of [tic Company aforesaid, and that the seal affixed to the preceding instrument is the seal of said Conipany and that the said seal and the signature as such officer was duty affixed and tub SA LESHA V. S. SEEKS 4 Notary Public � V S. 3/ ,,k, _ state of Minnesota My Commission Expires •' Jonuary 31. 2020 Nutary Public I, the undersigned. Assi'•iant Secretary of ATLANTIC SPECIALTY iNSUR \NCE COMPANY. a New Yotk Corporation. do hereby certify tlst dic fnre;oiv, pm%<i f an-,ir,y in fu'I force and ha, not been tr�cyy�ppkcd, and the solutu%����s ,ct forth abotc urc now in forte Signed and scaled. Dated —A _—_-- day of I+�' . p2ols tN SG�,,'. �Ac' 4pPPDR./lF�n y SEA!_ �u oe 'T1nsPoivcrofAttonicycvpires ;r 1986 0: October 1. 2017 '26 -V xpP. JDYr'� . zl b * 1•�.• N1i111 Jinic5 G Jordan, As,utain SeiITI.Ir. SUBDIVISION IMPROVEMENT AGREEMENT DATE OF AGREEMENT: WCL-Br i ' , 20 I NAME OF SUBDIVIDER: D, R. f{prfoh L)s -AIT IrS hlAnm OftomV fin(, (referred J to as "SUBDIVIDER"). NAME OF SUBDIVISION: �qmmwvK "SUBDIVISION") No. of Lots: 0-0— (referred to as TENTATIVE MAP RESOLUTION OF APPROVAL NO.: Oc"10CS" (referred to as "Resolution of Approval") IMPROVEMENT PLANS APPROVED ON: A117+-FAAr, 61'� (referred to as "Improvement Plans"). ESTIMATED TOTAL COST OF IMPROVEMENTS:$ Icai ono 00 ESTIMATED TOTAL COST OF MONUMENTATION: N SURETY: BOND NOS: Ca SURETY: fIG I(I (nSr`,I�t�LP ^n�an�! -OR- � IRREVOCABLE STAND-BY LETTER OF CREDIT NO. FINANCIAL INSTITUTION: -OR- CASH/CERTIFICATE OF DEPOSIT, AGREEMENT DATED: FINANCIAL INSTITUTION: (TM No: Pei P, This Agreement is made and entered into by and between the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as "CITY", and the SUBDIVIDER. 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