HomeMy WebLinkAbout1981-08-04; City Council; N/A; Grading & Erosion Control Bondo i~ £ ri & f:- .(ACITY OF CARLSBAD ^" ' "
AGENDA BILL NO. J111?1?^•— Dept.Hd
DATE: August 4f 1981 C. Atty.
DEPARTMENT: Finance C. Mgr.
Subject: Grading and Erosion Control Bond - Sudan Interior Mission
Statement of the Matter
The Carlsbad Municipal Code Section 11.06.080 requires a developer to post a bond with
the city prior to the issuance of a grading permit. This bond may be in any form and
approved by the City Attorney. Usually these bonds will be in the form of insurance
policies, letters of credit, negotiable securities or cash.
The developers of the Sudan Interior Mission have elected to post a cash bond with the
city in the amount of $53,000 as security for the issuance of a drading permit. The
amount of this bond has been computed by the Engineering Department.
Due to the size of the proposed cash deposit, the Sudan Interior Mission has asked
that they be allowed to earn interest on this deposit. This practice, although rare,
has been adopted by the city in two instances in the past where the deposit of
substantial amounts of cash were required.
The attached resolution authorizes the City Treasurer to receive a cash deposit from
the Sudan Interior Mission and to pay the developer interest on the deposited funds. The
city will deduct an administrative fee of three interest points for investing and
accounting for these funds.
Fiscal Impact - -
Some additional accounting costs will be incurred; however, these costs will be offset
by the administrative fee collected from interest earned on funds invested.
Exhibits
Resolution No. (0(0*/ 3
Recommendation
Adopt Resolution No.
APPROVED
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
£2
23
24
25
26
27
28
RESOLUTION NO. 6643
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD
ACCEPTING THE DEPOSIT OF A CASH BOND FOR GRADING FROM THE
SUDAN INTERIOR MISSION AND APPROVING THE GRADING AND
EROSION CONTROL AGREEMENT.
WHEREAS, the Carlsbad Municipal Code Section 11.06.080 requires developers
to post a bond in a form prescribed by the City Attorney prior to the issuance
of a grading permit, and " •
WHEREAS, the City Attorney has agreed that the Sudan Interior Mission may
post a cash bond in the amount prescribed by the City Engineer, and
WHEREAS, said bond shall be posted under the conditions stated on the
attached grading and erosion control agreement (Exhibit A),
NOW, THEREFORE, BE IT RESOLVED that:
1. The City shall hereby accept the deposit of cash as a bond satisfying
Section 11.06.080 of the Carlsbad Municipal Code.
2. The attached grading and erosion control agreement is hereby approved.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on
August 4. 1981 by the following vote, TO WIT:
AYES: Council Members Casler, Anear, Lewis and Kulchin
NOES: None
ABSENT: Council Member Packard
RONALD C..PACKARD, MAYOR
MARY H. CASLER, Vice-Mayor
ATTEST:
L. RAUTENKRANZ, CITY CLERK
(SEAL) .
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
28
EXHIBIT A
GRADING AND EROSION CONTROL AGREEMENT
NAME OF DEVELOPER:
NAME OF DEVELOPMENT:
LOCATION OF GRADING:
AMOUNT OF SECURITY:
WHEREAS, the Developer named on Line 1 of Page 1 hereof, hereinafter
referred to as DEVELOPER, has applied, pursuant to Chapter 11.06 of the
Carlsbad Municipal Code, for a grading permit to perform excavation or fill wor.
or both, viithin the City of'Carlsbad, State of California, more specifically
described in the application for grading permit for the Development named on
Line 2 of .Page 1 hereof, located as stated cm Line 3 of Page 1 hereof, is here-
by referred to and made a part hereof; and .
WHEREAS, the City Engineer has determined to approve said application and
issue said permit subject to certain conditions as set out in said permit; anc
WHEREAS, DEVELOPER is required under the terms of said permit and said
Chapter 11.06 to furnish a security for the faithful performance of his/her
obligations thereunder; . . .
NOW, THEREFORE, DEVELOPER agrees to perform all work as specified in the
grading permit and to furnish to City good and sufficient security on forms
approved by City, in the amount of 100% of the estimated cost of said improv
nents as stated on Line 5 of Page 1 hereof, to assure faithful performance c
this agreement in regards to said grading improvements. The securities reqi
by this agreement shall be filed with the City Clerk or City Treasurer as m
"""-•-,
required by the City, and when so filed, shall be incorporated by reference
herein. .
When said security is provided by the DEVELOPER in the form of a cash
deposit with the City Treasurer, the City agrees to hold these funds in tr
until the terms of this agreement have been met and said deposit has been
w
released by the City. The City may deposit or invest the cash funds in
interest-bearing obligations or accounts." Any interest earnings shall be
credited to the DEVELOPER'S trust account at a rate of three hundred basis
4 points below the actual investment yield rate earned by the investment of all
funds held in trust for said DEVELOPER. The three hundred basis point re-
duction in interest yield shall be retained by the City to cover the costs of
administration of said trust account. • . • *
g The condition of this obligation.is such that if the aforementioned bonded
DEVELOPER, his/her or its heirs, executors, administrators, successors or
10 assigns, shall in all things stand to and abide by, and well and truly keep anc
11 perform the work and fulfill the conditions of said permit and said Chapter 17,
12 and any alternation thereof made as therein provided, on his/her or their part,
13 to be kept and performed at the time and in the manner therein specified, and
14 in all respects according to their true intent and taeaning, and shall indemnif
15 and save harmless the CITY, its officers,, agents and employees, as therein
16 stipulated, then this obligation shall become null and void; otherwise, it sh?
17 be and remain in full force and effect. . •
lg As part of the obligation secured hereby and in addition to the face
19 amount specified therefor, there shall be included costs and reasonable ex~
go penses and fees, including reasonable attorney's fees, incurred by the CITY i
21 successfully enforcing such obligations, all to be taxed as costs and include
22 i° any judgment rendered.
23 XXXXX . .. '—\
24 XXXXX
25 XXXXX
26 XXXXX
27 XXXXX
28 XXXXX
1
2
3
4
5 DEVELOPER
6
7
8
9
10
IN WITNESS WHEREOF, this instrument has been duly executed by the
DEVELOPER above mentioned, on • __, 19 .
DEVELOPER
-APPROVED AS TO FORM:/
VINCENT F. BIONDO, JR., City Attorney
12
(Notarial acknowledgement of execution by DEVELOPER and Surety must be
attached.) •
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
-3-