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04-06-2021 - AGENDA ITEM 05 CONSIDERATION OF RELEASE OF FAITHFUL PERFORMANCE, LABOR AND MATERIAL AND WARRANTY BONDS FOR TRACT MAP NO. 52590 - TAYLOR MORRISON OF CALIFORNIA, LLCAGENDA ITEM NO. 5 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: April 6, 2021 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF RELEASE OF FAITHFUL PERFORMANCE, LABOR AND MATERIAL AND WARRANTY BONDS FOR TRACT MAP NO.52590 - TAYLOR MORRISON OF CALIFORNIA, LLC RECOMMENDATION: It is recommended that the City Council accept all on -site and off -site improvements for Tract No. 52590, completed by Taylor Morrison of California, LLC (Administrative Use Permit 14-55 through 14-38 and 15-03 through 15-07) and authorize the release of Faithful Performance, Labor and Material and Warranty Bonds in the amounts of $61,488, $61,488 and $85,629 respectively. DISCUSSION: Taylor Morrison of California, LLC (Taylor Morrison) purchased 51 vacant residential parcels from South Hills Home Partnership and, in August 2014, entered into an Improvement Agreement with the City of West Covina (Attachment No. 1). At that time, Taylor Morrison posted a Faithful Performance Bond in the amount of $636,530, Labor and Material Bond in the amount of $221,250, and Warranty Bond in the amount of $85,629 as a form of security and to guarantee the construction of the required on -site and off -site improvements. The improvements secured by the bonds were as follows: • Landscaping and irrigation of open space Lot 218 • Installation of sidewalk along north side of Hillside Drive east of Rolling Hills Road (Lot 29) • Application of slurry seal on Countrywood Lane, Skyview Lane, Majestic Street, Rolling Hills Road, and Inspiration Point • Installation of curb ramps at Rolling Hills Road and Hillside Drive and Inspiration Point • Installation of 51 driveway approaches • Providing erosion control on private slopes with hydro -seed • Transfer of maintenance of storm drains to the County of Los Angeles On March 7, 2017, the City Council accepted a portion of the on -site and off -site improvements and approved Taylor Morrison's request to reduce the bond amounts for Faithful Performance and Labor and Material Bond to $61,488 each. THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND. This Power dfAttorney limits the acts of those named herein, and they have no authorityto bind the Company except in the manner and to the extent herein stated. Certificate No. sseoaar American Fire and Casualty Company Liberty Mutual Insurance Company The Ohio Casualty Insurance Company West American Insurance Company POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS: That American Fire & Casualty Company and The Ohio Casualty Insurance Company are corporations duly organized underthe laws of the State of New Hampshire, that Liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts, and West American Insurance Company is a corporation duly organized under the laws of the State of Indiana (herein collectively calked the 'Companies), pursuant to and by authority herein set forth, does hereby name, constitute and appoint, Betty L. Tolentino Brian F. Cooper Janet C. Roio; K. Zerounian• Kevin Re; M Moody; Maureen O'Connell; Robert Wrixon- Susan Hecker Virginia L. Black all of the city of San Francisco , stale of CA each individually if there be more than one named, its true and lawful attomey-in-fact to make, execute, seal, acknowledge and deliver, for and on its behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents and shall be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons. IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies have been affixed thereto this end day of May 2014 American Fire and Casualty Company The Ohio Casualty Insurance Company Liberty Mutual Insurance Company WestAmerican/ Insurance Company STATE OF PENNSYLVANIA ss David M. CareAssistant Secretary COUNTY OF MONTGOMERY On this end day of May , 2014 , before me personally appeared David M. Carey, who acknowledged himself to be the Assistant Secretary of American Fire and Casualty Company, Liberty Mutual Insurance Company, The Ohio Casualty Insurance Company, and WestAmerican Insurance Company, and that he, as such, being authorized so to do, execute the foregoing instrument for the purposes therein contained by signing on behalfof the corporations by himself as a duly authodzed officer. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notanal seal at Plymouth Meeting, Pennsylvania, on the day and year first above written. By: r OF 1 Teresa Pastels ,Notary Public This PowerofAttomey is made and executed pursuantto and by authority of the following By-laws and Authorizations ofAmerican Fire and Casualty Company, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company which resolutions are now in full force and effect reading as follows: ARTICLE IV -OFFICERS - Section 12. Power of Attomey. Any officeror other official of the Corporation authorized forthat purpose in witting by the Chairman or the President, and subject to such limitation as the Chairman or the President may prescribe, shall appoint such attomeys-in-fad, as may be necessary to act in behalf of the Corporation to make, execute, seal, acknowledge and deliver as surety any and all undertakings,bonds, recognizances and other surety obligations. Such affomeys-in-fad, subject to the limitations set forth in their respective powers of attorney, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation. When so executed, such instruments shall be as binding as if signed by the President and attested to bythe Secretary. Any power or authority granted to any representative or attomey-in-fad under the provisions of this article may be revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such power or authority. ARTICLE All - Execution of Contracts - SECTION 5. Surety Bonds and Undertakings. Any officer of the Company authorized for that purpose in writing by the. chairman orthe president, and subject to such limitations as the chairman orthe president may prescribe, shall appoint such attomeys-in-fact. as may be necessary to ad in behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attomeys-in-fact subject to the limitations set forth in their respective powers of attorney, shall have full powerto bind the Company by their signature and execution of any such instruments and to attach thereto the seal ofthe Company. When so executed such instruments shall be as binding as if signed by the president and attested by the secretary. Certificate of Designation -The President of the Company, acting pursuant to the Bylaws of the Company, authorizes David M. Carey, Assistant Secretary to appoint such attomeys-in- fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Authorization - By unanimous consent of the Company's Board of Directors, the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the Company, wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds, shall be valid and binding upon the Company with the same force and effect as though manually affixed. 1, Gregory W. Davenport, the undersigned, Assistant Secretary, of American Fire and Casualty Company, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company do hereby certify that the original power of attorney of which the foregoing is a full, true and cored copy of the Power of Attomey executed by said Companies, is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this 19 thday of LMS_12873 122013 AUGUST , 20 14 Gregory W Davenport, Assistant Secretary 453 of 800 BOND NO, 024056249 PREMIUM INCLUDED IN LABOR AND MATERIAL PAYMENT BOND PERFORMANCE BOND WHEREAS, the City Council ofthe City of West Covina, State of California, and Taylor Morrison of California, LLC (hereinafter designated as "Principal") have entered into a Subdivision Improvement Agreement dated a( 2S1 20l4 whereby Principal agrees to install and complete certain work, including designated public improvements (the "Improvements"); and WHEREAS, under the terms of said Subdivision Improvement Agreement and pursuant to California Government Code Sections 66462, 66499 and Civil Code Section 3247, Principal is required before entering upon the performance of the work, to file a good and sufficient Labor and Materials Bond with the City of West Covina to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of part 4 of the Civil Code of the State of California. Now, therefore, said Principal and the undersigned as corporate surety, are held firmly bound unto the City of West Covina and all contractors, subcontractors, laborers, material men and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Civil Code in the sum of Two Hundred Twenty -One Thousand, Two hundred Fifty and No/100 Dollars ($221,250.00), which is 100% of the estimated cost of the public improvements, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act, with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil code, so as to give a right of action to them or their assigns in any suit brought upon this Bond. CONDITIONS OF THIS OBLIGATION ARE SUCH THAT, if the said Principal, his or its heirs, executors, administrators, successors or assigns, or any of his or its subcontractors, shall fail to pay for any materials, provisions, provender or other supplies or teams, implements or machinery used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, fails to pay to any of the persons named in Section 3181 of the Civil Code or fails to pay for amounts due under the Unemployment Insurance Act with respect to such work or labor performed under the contract for any amount required to be deducted, withheld and paid over to the Employment Development Department for the wages of employees of the Contractor and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor the Surety hereon shall pay for the same in any amount not exceeding the sums specified in this Bond, otherwise the above obligation shall be void. In case suit is brought upon this Bond, the surety shall pay a reasonable attorney's fee to be fixed by the court, in addition to the face amount of this Bond. Should the condition of this Bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The surety hereby stipulated and agrees that no change, extension of time, alteration or addition to the terms of said Subdivision Improvement Agreement or the specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration or addition. This document is signed by the respective parties on the dates next to their names. Principal: Taylor Morrison of California, LLC: (� By: \/jsO�� Date: V '� Title: v T SURETY: Li5gry Mutual insurance Company By: ,(/�/ Title: Betty L. Tol nti , Attorney -in -Fact Date: August 19, 2014 I declare under penalty of perjury under the laws of the State of California that the contents of the above Labor and Materials Payment Bond are true and correct, and that I have been duly authorized to sign this Labor and Materials Payment Bond on behalf of Surety. This Declaration is signed on in the City of , State of California. --OR-- State of California County of San Francisco August 19, 2014 Janet C. Rojo, Notary Public On before me, (here insert name and title of the officer), personally appeared Betty L. Tolentino , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/VA subscribed to the within instrument and acknowledged to me that hie/she/tfty executed the same in his/her/their authorized capacity(ies), and that by his/her/*W* signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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 my hand and official seal. Si nature �d� �, (Seal) -- AND —; (Proof of signature authorization or power of attorney must be attached) APPROVED AS TO FORM: /s/ Arnold M. Alvarez-Glasman City Attorney (Civil Code No. 3247 & 3248) ACKNOWLEDGMENT State of California County of Ora On August 20, 2014 before me, Grace S Anderson, a notary public (insert name and title of the officer) personally appeared James A Isolda who proved to me on the basis of satisfactory evidence to be the person(* -whose nameW is/are subscribed to the within instrument and acknowledged to me that he/sP/y executed the same in his/her7fl)oir authorized capacity(iea, and that by his/Wheif signature(s)-on the instrument the person(s)%r the entity upon behalf of which the person(s�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 my hand and official seal. GRACE s. ANDERSON Commission S 1991524 i Notary Public -California s Orange County Signature / /1) /�._/ (Sear My Comm. Expires Sep 17,201 THIS�POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND. This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated. Certificate No, 55e0aao American Fire and Casualty Company Liberty Mutual Insurance Company The Ohio Casualty Insurance Company West American Insurance Company POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS: That Amedcan Fire& Casualty Company and The Ohio Casualty Insurance Company are corporations duly organized under the laws of the State of New Hampshire, that Liberty Mutual Insurance Company is a corporation duly organized under the laws of the Stale of Massachusetts, and West Amedcan Insurance Company is a corporation duly organized under the [an ofthe State of Indiana (herein collectively called the "Companies"), pursuant to and by authority herein set forth, does hereby name, constitute and appoint, Betty L. Tolentino: Brian F. Cooper; Janet C. Roio; K. Zerounian; Kevin Re' M Moody' Maureen O'Connell Robert Wrixom Susan Hecker Virginia L. Black all ofthe city of San Francisco state of CA each individually if there be more than one named, its true and lawful attomey-in-fact to make, execute, seal, acknowledge and deliver, for and on its behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents and shall be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons. IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies have been affixed thereto this 2nd dayof May 2014 — American Fire and Casualty Company The Ohio Casualty Insurance Company Liberty Mutual Insurance Company WestAmerican Insurance Company 0) c STATE OF PENNSYLVANIA as David M. Care , Assistant Secretary +% COUNTY OF MONTGOMERY cc ma On this 2nd day of May 2014 , before me personally appeared David M. Carey, who acknowledged himself to be the Assistant Secretary of American Fire and c7 N Casualty Company, Liberty Mutual Insurance Company, The Ohio Casualty Insurance Company, and West American Insurance Company, and that he, as such, being authorized so to do, p W execute the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer. y> IN WITNESS WHEREOF, I have hereunto(subd affixed my notanal seal at Plymouth Meeting, Pennsylvania, on the day and year first above written. yBy: OSoTeresa Pastella Notary Public - c ` This PowerofAttomey is made and executed pum"tto and by authority ofthe following By-laws and Authorizations ofAmerican Fire and Casualty Company, The Ohio Casualty Insurance y „ Company, Liberty Mutual Insurance Company. and WestAmencen Insurance Company which resolutions are now in full force and effect reading as follows: a; ARTICLE IV -OFFICERS -Section 12. Power of Attorney. Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President, and subject t to such limitation as the Chairman or the President may prescribe, shall appoint such atiomeys-in-fact, as may be necessary to act in behalf of the Corporation to make, execute, seal, O = acknowledge and deliver as surety any and all undertakings,bonds, recognizances and other surety obligations. Such attomeys-in-fact, subject to the limitations set forth in their respective E y- powers of attorney, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation. When so w` executed, such instruments shall be as binding as if signed by the President and attested to by the Secretary. Any power or authority granted to any representative or altomey-in-fad under the provisions of this article may be revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such power or authority. ARTICLE )(Ill - Execution of Contracts - SECTION 5. Surety Bonds and Undertakings. Any officer ofthe Company authorized for that purpose in writing by the chairman or the president, and subject to such limitations as the chairman or the president may prescribe, shall appoint such attorneys -Wad, as may be necessary to ad in behalf of the Company to make, execute, Zseal, acknowledge and deliver as surety any and all undertakings, bonds, mcognizance, and other surety obligaton,. Such afflnus -in-fact subject to the limitations set forth in their respective powersof attorney, shall have full power to bind the Company by their signature and execution of any such instruments and to attach thereto the seal of the Company. When so executed such instruments shall be as binding as if signed by the president and attested by the secretary. Certificate of Designation - The President of the Company, acting pursuant to the Bylaws of the Company, authorizes David M. Carey, Assistant Secretary to appoint such adomeys-in- fad as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Authorization - By unanimous consent of the Companys Board of Directors, the Company consents that facsimile or mechanically reproduced signature of any assistant secretary ofthe Company, wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds, shall be valid and binding upon the Company with the same force and effect as though manually affixed. I, Gregory W. Davenport, the undersigned, Assistant Secretary, ofAmedcan Fire and Casually Company, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company do hereby certify that the original power of attorney of which the foregoing is a full, true and coned copy of the Power of Attomey executed by said Companies, is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this 19th dayof AUGUST , 20 14 _ - By: Gregory W. Davenport, Assistant Secretary N O to �6i WS_12873 122013 452 of 800 BOND NO, 024056249 PREMIUM INCLUDED IN WARRANTY BOND PERFORMANCE BOND WHEREAS, the City Council of the City of West Covina, State of California, and Taylor Morrison of California, LLC, (hereinafter designated as "Principal") have entered into a Subdivision Improvement Agreement dated D(V (w14 whereby Principal agrees to install and complete certain work, including designated public improvements, which Subdivision Improvement Agreement is hereby referred to and made a part hereof; and WHEREAS, said Principal is required under the terms of said Subdivision Improvement Agreement to furnish a bond for the guarantee and warranty of the public improvements for a period of one (1) year following the completion and acceptance thereof against any defective work or labor done or defective materials furnished. NOW, THEREFORE, we, the Principal and Liberty Mutual Insurance Company , as Surety, are held and firmly bound unto the City of West Covina, (hereinafter called "City"), in the penal sum of Eight Five Thousand Six Hundred Twenty Nine and No/10-0 Dollars, ($85,629) lawful money of the United States, which is 50% of the value of the public improvements, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said Subdivision Improvement Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney=s fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications. This document is signed by the respective parties on the dates next to their names. Principal: Taylor Morrison of California, LLC: lk By: Date: Yl Title: SURETY: Liberty Mutual Insurance Company By: Title: Betty L. Tol ti , Attorney-in-Factr Date: August 19, 2014 I declare under penalty of perjury under the laws of the State of California that the contents of the above Warranty Bond are true and correct, and that I have been duly authorized to sign this Warranty Bond on behalf of Surety. This Declaration is signed on _, in the City of , State of California. --OR— State of California County of San Francisco Janet C. Rojo, Notary Public On August 19, 201a before me, (here insert name and title of the officer), personally appeared Betty L. Tolentino , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/amsubscribed to the within instrument and acknowledged to me that the/she/lbsy executed the same in his/her/their authorized capacity(ies), and that by kWher/IN W+signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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. AA RCi 10 WITNESS my h nd and official seal. COk l 1 #204 1020 Signa/tytre' -- AND-- .....>>. (Proof of signature authorization or power of attorney must be attached) APPROVED AS TO FORM: /s/ Arnold M. Alvarez-Glasman, City Attorney ACKNOWLEDGMENT State of California County of Orange On August 20, 2014 before me, Grace S Anderson, a notary public (insert name and title of the officer) personally appeared James A Isolda who proved tome on the basis of satisfactory evidence to be the personK whose name,(a)"is/are subscribed the within instrument and acknowledged to me that he/Sgelfbeq executed the same in his/ /thtsir authorized capacityW ,and that by his/bef/tJaeit signatures j on the instrument the person(Wor the entity upon behalf of which the person(Wacted, 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 my hand and official seal. GRACE S. peo6RsoN Commission M 1991524 z .p �_ Notary Public - California z = k� Orange County s My Comm. Expires Sep 17, 2016+ Signature __G� ti� , (Seal) THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND. This Powerof Attorney limits the acts of those named herein, and they have no authorilyto bind the Company except in the manner and to the extent herein staled. Certificate No, 659043e American Fire and Casualty Company Liberty Mutual Insurance Company The Ohio Casualty Insurance Company WestAmerican Insurance Company POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS: That American Fire & Casualty Company and The Ohio Casualty Insurance Company are corporations duly organized underthe laws of the State of New Hampshire, that Liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts, and West American Insurance Company is a corporation duly organized under the laws of the State of Indiana (herein collectively called the "Companies"), pursuant to and by authority herein set forth, does hereby name, constitute and appoint, Betty L. Tolentino; Brian F. Cooper; Janet C. Roio: K. Zerouniam Kevin Re: M. Moody: Maureen O'Connell; Robert Wrixon, Susan Hecker Virginia L. Black all of the city of San Francisco , state of CA each individually if there be more than one named, its true and lawful aftomey-in-fad to make, execute, seal, acknowledge and deliver, for and on its behalf as surety and as its ad and deed, any and all undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents and shall be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary ofthe Companies in their own proper persons. IN WITNESS WHEREOF, this Pourer of Attorney has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies have been affixed thereto this end dayof May 2014 - -�. American Fire and Casualty Company The Ohio Casualty Insurance Company Liberty Mutual Insurance Company West merican Insurance Company ey: ."� - c STATE OF PENNSYLVANIA ss "�"'"'""'p1Qr""1111 JtlGCtl'y ` t6 5 as OF MOMGOMERY 0 On this end day of May 2014 before me personally appeared David M. Carey, who acknowledged himself to be the Assistant Secretary of American Fire and I- 0 y Casualty Company, Liberty Mutual Insurance Company, The Ohio Casualty Insurance Company, and West American Insurance Company, and that he, as such, being authorized so to do, p �.,V) execute the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer. 0 W c 4) > IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at Plymouth Meeting, Pennsylvania, on the day and year first above written. }`0 CL c N w o� � By: OTeresa Pastella , Notary Public y g:. iL68 0 E c 19 This PowerofAttomeyis madeand executed pursuant to and by authority ofthe following By-laws and Authorizations ofAmedcan Fire and Casualty Company, The Ohio Casualty Insurance Opp rn H Company, Liberty Mutual Insurance Company, and West American Insurance Company which resolutions are now in full force and effect reading as folbws: r to d ARTICLE IV -OFFICERS -Section 12. PowerofAttomey. Any officer or other official ofthe Corporation authorized forthatpurpose in writing bythe Chairman orthe President, and subject O C r a) C to such limitation as the Chairman or the President may prescribe, shall appoint such attomeys-in-fad, as may be necessary to act in behalf of the Corporation to make, execute, seal, iID O acknowledge and deliver as surety any and all undertakings,bonds, recognizances and other surety obligations: Such attomeys-in-fact, subject to the limitations set forth in their respective ;a E ai powers of attorney, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation. When so '� ro wR executed, such instruments shall be as binding as if signed by the President and attested to by the Secretary. Any power or authority granted to any representative or attomey-in-fad under >Q -O the provisions of this article maybe revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such powerm authority. 04 -� 0C ARTICLE Ail - Execution of Contracts -SECTION 5. SuretyBonds and Undertakings. Any officer of the Company authorized for that purpose in writing by the chairman or the president, Es? > i and subject to such limitations as the chairman or the president may prescribe, shall appoint such atiomeys-in-fad, as may be necessary to act in behalf of the Company to make, execute, 1- M O j seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attomeys-in-fad subject to the limitations set forth in their C m Z 0 respective powersof attorney, shall have full powerto bind the Company by their signature and execution ofanysuch instruments and to attach thereto the seal ofthe Company. When so 00 executed such instruments shall be as binding as if signed by the president and attested by the secretary. ~ O xo Certificate of Designation - The President of the Company, acting pursuant to the Bylaws of the Company, authorizes David M. Carey, Assistant Secretary to appoint such atlomeys-in- `- fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Authorization - By unanimous consent of the Companys Board of Directors, the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the Company, wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds, shall be valid and binding upon the Company with the same force and effect as though manually affixed. I, Gregory W. Davenport, the undersigned, Assistant Secretary, of American Fire and Casualty Company, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company do hereby certify that the original power of attorney of which the foregoing is a full, true and correct copy of the Power of Aftomey executed by said Companies, is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this 19th dayof August .20 14 By: Gregory W.Davenport, Assistant Secretary WS_12873 122013 451 of 800 At this time, all improvements have been completed in accordance with the Improvement Agreement and to the satisfaction of the City Engineer. Therefore, Taylor Morrison of California, LLC is requesting the release of the bonds. Staff recommends that the City Council accept the improvements and authorize the release of the Faithful Performance, Labor and Material and Warranty Bonds in the amounts of $61,488, $61,488 and $85,629 respectively. OPTIONS: The City Council has the following options: 1. Approve Staffs recommendation; or 2. Provide alternative direction. Prepared by: Michael Ackerman, PE, City Engineer Attachments Attachment No. 1 - Improvement Agreement CITY Engage in Proactive Economic Development COUNCIL GOALS & OBJECTIVES: IMPROVEMENTAGREEMENT THIS IMPROVEMENT AGREEMENT (the "Agreement"), executed this 25 day of & aot,T 2014, by and between the CITY OF WEST COVINA, a Municipal Corporation, hereinafter called the "City", and TAYLOR MORRISON OF CALIFORNIA, LLC, a California limited liability company, hereinafter called the 'Principal". WITNESSETH That the Principal for and in consideration of the approval of the City of LOTS 28, 29, 76 THROUGH 112,193 THROUGH 201 OF TRACT NO. 32324, LOT 39 OF TRACT NO. 42169 AND LOTS 30, 31 OF TRACT NO. 47809 and/or the acceptance by the City Council of the streets and of any easements or other property offered for dedication in that certain property known as LOTS 28, 29, 76 THROUGH 112, 193 THROUGH 201 OF TRACT NO. 32324, LOT 39 OF TRACT NO. 42169 AND LOTS 30, 31 OF TRACT NO. 47809hereby agrees: FIRST: Performance of Improvements. The Principal at its own cost and expense, shall furnish all equipment and material necessary to perform and complete, in a good and workmanlike manner, within 24 months of the date of execution of this Agreement by the City, the following public work, on -site improvements and grading work: Finish grading, drainage system, sewer system, curb and gutter, cross gutters, curb ramps, P.C.C. pavement, repair of existing street lights, AC pavement, Type II Emulsion Aggregate Slurry Seal of Countrywood Lane, Majestic Street, Rolling Hills Road, and Inspiration Point, and on and off -site irrigation and landscaping including portion of lot 218 adjacent to lots 96 through 101 at Inspiration Point and portions of slopes at lots 195 - 201 of Majestic Street per the approved plans 836-G, and all appurtenant work to the satisfaction of the City Engineer located at Lots 28, 29, 76 through 112, 193 through 201 of Tract No. 32324, Lot 39 of Tract No. 42169 and Lots 30, 31 Of Tract No. 47809. The Improvements and all work incidental thereto shall be performed according to approved plans, profiles, specifications and standard drawings filed in the office of Public Works Director/City Engineer. That said work shall be done under permit issued by, and to the satisfaction of, the Public Works Director/City Engineer and shall not be deemed complete until approved and accepted as completed by the City Council of said City. The estimated cost of said public work, excluding plan check and inspection fees, is the sum of Two Hundred Twenty - One Thousand, Two hundred Fifty and No/100 Dollars ($221,250.00) which includes the cost for transferring the storm drain. The estimated cost of said on -site improvements, excluding plan check and inspection fees, is the sum of Seven Hundred Ninety Nine Thousand Seven Hundred Sixty -Nine and No/100 Dollars ($799,769). Without limiting the foregoing, Principal warrants and guarantees materials used and workmanship performed on the Bonded Improvements portion of the work for a period of one year after completion and acceptance thereof by the Public Works Director/City Engineer. 1 Y Aplan check\Taylor Kforrison West Covina Agreement 080814.docx SECOND: Indemnity. That said 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 contract prior to the completion and acceptance of the same. Neither shall said City nor any officer or employee thereof, be liable for any persons or property injured by reason of said work or the performance of said work or the condition of said streets or property prior to completion and acceptance of said work, but all of said liabilities shall be assumed by said Principal. Said Principal further agrees to defend, indemnify and hold harmless said City and the officers and employees thereof from any and all injuries to and deaths of persons and injuries to property, and all claims, demands, costs, loss, damage and liability, howsoever the same may be caused and wheresoever the same may appear, resulting directly or indirectly from the performance or non-performance of any work to be done in or upon the street rights -of -way and upon the premises adjacent thereto pursuant to this Agreement or from, or arising out of, the use of any patent or patented article in the construction of said work. The Principal's defense and indemnity obligations herein shall not extend or be applicable to any injuries, harm, damages, claims and/or disputes that are or were caused, directly or indirectly, by the negligence or willful misconduct of the City, or any of its officer, employees and/or representatives. THIRD: Safety. Said Principal shall at all times from the acceptance by the City Council of the streets and easements offered for dedication in said Tracts 32324 and 47809 (tract, parcel map, precise plan) up to the completion and acceptance of said work or improvement by said City Council, give good and adequate warning to the traveling public of each and every dangerous condition existent in said highways or easements, or any of them, and will protect the traveling public from such defective or dangerous conditions. Until the completion of all the improvements herein agreed to be performed each of said streets not accepted as improved shall be under the charge of said Principal for the purposes of this contract, and said Principal may close all or a portion of any street subject to the conditions of approval contained in the excavation permit for the work issued by the Public Works Director/City Engineer whenever it is necessary to protect the traveling public during the making of the improvements herein agreed to be made. The Principal hereby agrees to pay all fees for plan checking and inspection of said improvements as may be required by the Public Works Director/City Engineer of the said City. FOURTH: Performance Security. Prior to commencement of any work pursuant to this Agreement Principal shall file with the said City a cash deposit, letter of credit, assignment of account or surety Bond (the "Performance Security") in the sum of Six Hundred Thirty Six Thousand Five Hundred Thirty and No/100 Dollars ($636,530), being 100% of the estimated cost of said listed public work, and 50% of the estimated cost of said listed on -site improvements (the 'Bonded Improvements Amount") as a guarantee for the faithful performance of this Agreement. If the Principal shall well and truly do and perform all of the covenants and obligations of this Agreement on its part to be done and performed, at the times and in the manner specified herein, then, the said Performance Security shall be returned to the Principal, otherwise the same shall be forfeited to the City of West Covina and shall become and remain the property of the said City, or in the case of a surety Bond, the Principal and surety shall pay to the City all costs including those costs necessary to provide properly engineered plans and specifications, sufficient to complete the Bonded Improvements to the satisfaction of the Public Works Director/City Engineer up to and including the full amount of the Bond. In the event the sureties on said Bond, or any of them, become insufficient, said Principal shall renew said Bond with good and sufficient sureties within ten days after receiving demand therefor. 2 Y:\plan check\Taylor Morrison West Covina Agreement 080814.docx Upon the recordation of a Notice of Completion by the City of West Covina for the Improvements, the performance security may be reduced in amount by 50% and serve as the Warranty Security. FIFTH: Labor and Materials Bond. Prior to the commencement of any portion of the work pursuant to this Improvement Agreement which constitutes a public work Principal shall file with the City a statutory labor and materials bond ("Labor and Materials Bond") pursuant to California Civil Code Sections 9100, 9550 and 9554 inuring to the benefit of the City and all contractors, subcontractors, laborers, materialmen and other persons employed in the performance of this Agreement and referred to in the aforesaid Civil Code in the sum of Two Hundred Twenty -One Thousand, Two hundred Fifty and No/100 Dollars ($221,250.00), (being 100% of the estimated cost of the public work to be performed) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor. The Payment Bond shall be on the form provided by the City. SIXTH: Warranty Security. Prior to the recordation of a Notice of Completion for the work pursuant to this Improvement Agreement Principal shall file with the City a Warranty Security in the amount of 50% of the estimated cost of public improvements, guaranteeing for a period of one year after completion and acceptance thereof by the Public Works Director/City Engineer that the work, including all materials and equipment, has been performed in a good and workmanlike manner and is free of any defects. SEVENTH: Extension. In the event it is deemed necessary to extend the time of completion under this Agreement, said extension may be granted by the City for such period of time as the City may deem reasonable and shall in no way affect the validity of this contract or release the surety or sureties on the bonds attached hereto. In this connection the surety shall waive the provisions of Section 2819 of the Civil Code of the State of California. EIGHTH: Phases. The work or improvement covered by this contract may be accepted by the City in logical phases as it progresses upon request of the Principal for such acceptance, and upon acceptance of portions or phases of the work and request therefor by the Principal a corresponding withdrawal of cash deposit or substitute surety Bond may be approved by the City upon certification of the Public Works Director/City Engineer to the effect that the remaining deposits or amount or amount of Bond is sufficient to secure the remainder of the work under this contract. NINTH: Completion. If within the time covered by this Agreement all of the improvements hereinbefore mentioned have not been installed to the satisfaction of the Public Works Director/City Engineer and accepted by the City Council of said City, through no fault of the Principal, the Principal shall deposit sufficient monies with the Public Works Director/City Engineer as determined by the Public Works Director/City Engineer, either cash or certified check, to successfully complete all hereinbefore mentioned improvements. At its sole discretion the City Council may accept said deposit as a release the Principal from his obligation to complete said improvements. 3 Y:\plan check\Taylor Morrison West Covina Agreement 080814.doex TENTH: Attorney's fees. Should any litigation be commenced between the parties hereto to enforce or interpret the provisions of this Agreement, the prevailing party in such litigation shall be entitled to recover a reasonable sum as attorney's fees, in addition to any other relief to which the party may be entitled in law or equity. IN WITNESS WHEREOF, said Principal has affixed its name and seal. TAYLOR Nam( ON OF CALIFORNIA, LLC Pri ci al P{�*,nred Name 0 /QS I rl� rac C�1Cv ia-. �/�"77 Addr Uq Telephone Number CITY OF WEST COVINA Steve er t, Mayor Date: �U` Y:\plan check\Taylor Morrison West Covina Agreement 080814.docx APPROVED AS TO FORM: /s/ Arnold M. Alvarez-Glasman City Attorney BOND NO. 024056249 BOND FOR FAITHFUL PERFORMANCE PREMIUM: $5,092.00 KNOW ALL MEN BY THESE PRESENTS WHEREAS, the Principal and the Obligee have entered into a written Subdivision Improvement Agreement, a copy of which is or may be attached hereto, dated F J ec ( 2014 referred to and made a part hereof for Finish grading, drainage system, sewer system, curb and gutter, cross gutters, curb ramps, P.C.C. pavement, repair of existing street lights, AC pavement, Type II Emulsion Aggregate Slurry Seal of Countrywood Lane, Majestic Street, Rolling Hills Road, and Inspiration Point, and on and off -site irrigation and landscaping including portion of lot 218 adjacent to lots 96 through 101 at Inspiration Point and portions of slopes at lots 195 - 201 of Majestic Street per the approved plans 836-G, and all appurtenant work to the satisfaction of the City Engineer located at Lots 28, 29, 76 through 112, 193 through 201 of Tract No. 32324, Lot 39 of Tract No. 42169 and Lots 30, 31 Of Tract No. 47809. The Principal is required by the Improvement Agreement to provide this Faithful Performance Bond to secure the performance of the Improvements. NOW THEREFORE, we, Taylor Morrison of California, LLC., as Principal, and Liberty Mutual Insurance Company , a corporation organized under the laws of Massachusetts and duly authorized to transact business in the State of California, as Surety, are held firmly bound unto the City of West Covina, as Obligee, in the sum of Six Hundred Thirty Six Thousand Five Hundred Thirty and No/100 Dollars ($636,530), lawful money of the United States of America, (being 100% of the estimated cost for the public work improvements and 50% of the estimated cost for the private work) for the payment whereof well and truly to be made the Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns,jointly and severally, firmly by these presents. The Condition of the foregoing obligation is such that if said Principal shall fail to improve and complete in a timely, good and workmanlike manner, the construction of public and/or private improvements, including grading, streets, sidewalks, curbs and gutters, storm drains, street lighting, traffic control facilities, sewer and water lines and other related works required as part of the Subdivision Improvement Agreement as required under the provisions of law of the City of West Covina and the State of California, then the Surety shall pay the City of West Covina for the same in an amount not exceeding the amount set forth above and shall also pay, in addition to the face amount of this bond in case suit is brought upon this Bond, such reasonable costs, expenses and attorney's fees as shall be fixed by the Court. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said Subdivision Improvement Agreement or the specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration or addition. 1 Y:\plan check\Taylor Morrison West Covina Bonds080814.docx This document is signed by the respective parties on the dates next to their names. Principal: Taylor Morrison of California, LLLC. By:c�ts��i� 'i Date: Title: V �y-2' SURETY: Liberty Mutual rance Company By: Title: Sett L. of tino, Attorne -in-Fact Date: August 19, 2014 I declare under penalty of perjury under the laws of the State of California that the contents of the above Faithful Performance Bond are true and correct, and that I have been duly authorized to sign this Faithful Performance Bond on behalf of Surety. This Declaration is signed on in the City of State of California. --OR-- State of California County of San Francisco On August 19, 2014 before me, Janet C. Rojo, Notary Public (here insert name and title of the officer), personally appeared Betty L. Tolentino , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/ate subscribed to the within instrument and acknowledged to me that ke/she/*esy executed the same in his/her/their authorized capacity(ies), and that by W/her/thaix signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNES$.my hand land official seal. Signature { C� (Seal) APPROVED AS TO FORM: /s/ Arnold M. Alvarez-Glasman City Attorney Y:\plan check\Taylor Morrison West Covina Bonds 080814 docx 0 0 ACKNOWLEDGMENT State of California County of Orange On August 20, 2014 before me, Grace S Anderson, a notary public (insert name and title of the officer) personally appeared James A Isolda who proved tome on the basis of satisfactory evidence to be the person(9whose name(sJis/arer subscribed to the within instrument and acknowledged to me that he/spe/tbe}rexecuted the same in his/WttefP authorized capacityW, and that by his/her/tWr signature(Won the instrument the person�Wor the entity upon behalf of which the person(s)'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 my hand and official seal. GRACE S. ANDERSON _ Commission M 1991524 Notary Public •California Z 111 Z Orange County Signature (Seal) s �_ J ) My Comm. Expires Sep 17, 2016!