01-052 Tract Agreement, No. 9335ol.~~~
TRACT AGREEMENT
TRACT :vo. 9335
Address: 7825 & 7851 Orion Lane
This AGREEMENT, made and entered into this Zc~ day of Jww-C,~ , 2001 , by
and between the CITY OF CUPERTINO, a municipal corporation of the State of California,
hereinafter designated as CITY, and B. K. Development Corporation, a California
Corporation hereinafter designated as DEVELOPER.
WITNESSETH
WHEREAS, said DEVELOPER desire to subdivide certain land within the City of
Cupertino in accordance with the map heretofore filed with the City Council of the City of
Cupertino, marked and designated as TRACT No. 9335 Cupertino, California, hereinafter
designated as the "Tract"; and
WHEREAS, said map shows certain courts, drives and roads which are offered for
dedication for public use; and
WHEREAS, CITY hereby approves the improvement plans and specifications prepared
for the Tract by Kirkeby En~ineerin~, a true copy of said improvement plans and specifications
are on file in the Office of the City Engineer of Cupertino; and
WHEREAS, the same are incorporated herein by reference, the same as though set out in
full;
NOW, THEREFORE, said improvement plans and specifications shall be hereinafter
called the "Plans," and the work to be done under the Plans shall be called the "Work."
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WHEREAS, pursuant to the provisions of this AGREEMENT, the CITY hereby
established the amounts of Bonds, Fees, and Deposits as set forth in the
following schedule:
SCHEDULE OF BONDS, FEES AND DEPOSITS
STREET IMPROVEMENT CATEGORY:
PART A. Faithful Performance Bond: Off-Site: $ 145,624
On-Site: $ 27,115
PART B. Labor and material Bond: Off-Site: $ 145,624
On-Site: $ 27,115
PART C. Checking and Inspection Fee: $8636.95
110-4538
PART D. Indirect City Expenses: N/A
PART E. Development Maintenance Deposit: $3,000
110-2211
PART F. Storm Drainage Fee: Basin #3 $3,882.90
215-4072
PART G. One Year Power Cost:. $150
110-4537
PART H. Street Trees: N/A
PART I. Map Checking Fee: $ 553
110-4539
PART J. Park Fee: Zone II $94,500
280-4082
PART K. Water Main Reimbursement: N/A
PART L. Maps and/or Improvement Plans:
AS SPECIFIED IN ITEM #23
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NOW, THEREFORE, IT IS HEREBY N[UTUALLY AGREED by and between the
parties hereto as follows, TO WIT:
1. INSTALLATION OF WORK
It is further agreed that:
A. The DEVELOPER shall install and a~mplete the Work within one (1) year from the
date of execution of this AGREEMENT, or such longer period as may be specifically authorized
in writing by the City Engineer. In the event the DEVELOPER fail or refuse to complete the
Work within the specified period of time, the CITY at its sole option, shall be authorized to
complete the Work in whatever manner the CIT'E' shall decide. In the event the CITY completes
the Work, the CITY may recover any and all costs incurred thereby from the DEVELOPER or
the DEVELOPER' surety or both.
B. The DEVELOPER shall install and a~mplete the Work in a good and workmanlike
manner in accordance with the Plans as approved by the City Engineer of Cupertino. The Work
shall be performed under the inspection and with the approval of the City Engineer. The Work
shall be done in accordance with the existing ordinances and resolutions of the City of Cupertino,
and in accordance with all plans, specifications, ;standards, sizes, lines and grades approved by
the City Engineer. The Work shall be done in accordance with all State and County Statutes
applicable thereto. The decision of the City Engineer shall be final as to whether any material or
workmanship meets the standards, specifications,, plans, sizes, lines and grades as set forth.
C. It is further agreed that the Work shall be done in accordance with the most current
Standard Specifications of the Department of Public Works, California Department of
Transportation, State of California, and in accordance with the specifications of the Cupertino
Sanitary District where applicable. Wherever the words "State" or "California Division of
Highways" are mentioned in the State Specifications, it shall be considered as referring to the
CITY of Cupertino; also wherever the "Director" or "Director of Public Works" is mentioned, it
shall be considered as referring to the City Engineer.
In case of conflict between the State Spe~;ifications and the specifications of the CITY
and/or the Cupertino Sanitary District, the specifications of the CITY and/or the Cupertino
Sanitary District shall take precedence over and be used in lieu of such conflicting portions.
2. EXCAVATION PERMIT
It is further agreed that the DEVELOPEIZ shall comply with Section Three of Ordinance
No. 130 of the CITY by obtaining an excavation. permit from the City Engineer before the
commencement of any excavation in, on, or under the surface of any existing public street, lane,
alley, sidewalk, or other public place. It is further agreed that the DEVELOPER shall notify the
City Engineer of the exact date and time when the proposed excavation is to commence.
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3. QUITCLAIM DEED
It is further agreed that the DEVELOPEF:, when requested by the CITY, shall quitclaim
all his rights and interests in, and shall grant to CITY authorization to extract water from the
underground strata lying beneath said project an~i DEVELOPER agrees to execute a "Quitclaim
Deed and Authorization" in favor of CITY, whe~i presented to him for signature.
4. BONDS AND OTHER SECURITY
A. Upon the execution of the AGREEMENT, the DEVELOPER shall file with the CITY
a faithful performance bond to assure his full an<i faithful performance of this AGREEMENT.
The penal sum of said faithful performance bonds shall be the full cost of any payment to be made
under this AGREEMENT, the value of any land agreed to be dedicated, and any improvements
to be made under this AGREEMENT. In the ev~;nt that improvements are to be made under this
AGREEMENT, the DEVELOPER shall, in addition to said faithful performance, file with the
CITY a labor and materials bond in a penal sum adequate to assure full payment of all labor and
materials required to construct said improvements. The amount of said bonds shall be as
designated by the City Engineer. Said bonds shill be executed by a surety company authorized
to transact a surety business in the State of Califi~rnia and must be approved by the City Attorney
as to form and by the City Engineer as to sufficiE;ncy. In the event that the DEVELOPER shall
fail faithfully to perform the covenants and conditions of this AGREEMENT, or to make any
payment, or any dedication of land, or any improvements herein required, the CITY shall call on
the surety to perform this AGREEMENT or otherwise indemnify the CITY for the
DEVELOPER' failure to so do.
B. In lieu of a surety bond, the DEVELOPER may elect to secure this AGREEMENT by
depositing with the CITY:
1. Cash; or,
2. A cashier's check, or a certified check payable to the order of the City of
Cupertino or,
3. A certificate of deposit, or instrument of credit meeting the requirements of
Government Code Section 66499 (b) or (c).
C. The amount of said cash, checks, certificate of deposit, or instrument of credit shall be
as designated by the City Engineer, and shall be the equivalent to that which would have been
required had the DEVELOPER furnished- the CITY with a surety bond. In the event that the
DEVELOPER shall fail faithfully to perform the: covenants and conditions of this
AGREEMENT, or to make any payment, or any dedication of land, or any improvements herein
required, the CITY may apply the proceeds of said security thereto.
D. No release of surety bond, cash depo:;it, check, or certificate of deposit, shall be made
except upon approval of the City Council. '
E. No interest shall be paid on any security deposited with the CITY.
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5. CHECKING AND INSPECTION FEE
It is further agreed that DEVELOPER sh;~ll pay any and all necessary direct expenses for
inspection, checking, etc., incurred by CITY in connection with said Project, and that
DEVELOPER shall have deposited with CITY, prior to execution of this AGREEMENT, the
amount as set forth herein at Page 2 (Part C). Should construction cost vary materially from the
estimate from which said sum is calculated, the (:ity Engineer shall notify DEVELOPER of any
additional sum due and owing as a result thereof,
6. INDIRECT EXPENSES
It is further agreed that DEVELOPER sh;~ll pay to CITY, prior to execution of this
AGREEMENT, indirect expense allocable to processing these improvements, the amount as set
forth herein at Page 2 (Part D).
7. MAP CHECKING FEE
It is further agreed that the DEVELOPEF: shall deposit with City, prior to execution of
this AGREEMENT, for office checking of final reap and field checking of street monuments, in
compliance with Section 4:1 of Ordinance No. 4'7 (Revised 12/04/61) of CITY, the amount as set
forth herein at Page 2 (Part I).
8. DEVELOPMENT MAINTENANCE 1~EPOSIT
It is further agreed that the DEVELOPEF: shall pay to the CITY, prior to execution of this
AGREEMENT, the amount set forth herein at Paige 2 (Part E) as a development maintenance
deposit to insure proper dust control and cleaning; during the construction period. The
development maintenance deposit may be utilized for repairs of defects and imperfections arising
out of or due to faulty workmanship and/or materials appearing in said work during the period
until release of the improvement bonds by the C1:TY. Should the DEVELOPER complete the
required repairs to the entire satisfaction of the CITY, the unused balance will be returned after
the release of the improvement bonds.
9. STORM DRAINAGE FEE
It is further agreed that the DEVELOPEF: shall deposit with the CITY, prior to execution
of the AGREEMENT, a storm drainage charge i~1 connection with said Project in accordance
with the requirements established in Resolution 1422, March 21, 1977, in the amount as set forth
herein at Page 2 (Part F).
10. ONE YEAR POWER COST
It is further agreed that the DEVELOPEF: shall pay to CITY prior to execution of the
AGREEMENT, the amount as set forth herein at. Page 2 (Part G), which amount represents the
power cost for street lights for one year.
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11. THE INSTALLATION OF STREET' TREES
It is further agreed that the DEVELOPEF: shall, at such time as deemed appropriate by
the City Engineer, plant street trees in conformance with the standards of the City of Cupertino.
Variety of tree shall be selected from the City approved list.
12. PARK FEES
It is further agreed that the DEVELOPER sl;~all pay such fees and/or dedicate such land to
the CITY, prior to execution, as is required within "Park Dedication Ordinance" Number 602,
1972, and which is further stipulated under Part .f, Page 2 herein. Fees are also in accordance
with action adopted by the City Council on March 19, 1991, and Section 18-1.602 of the
Cupertino Municipal Code.
13. MAINTENANCE OF WORK
It is further agreed that the DEVELOPER: shall maintain the Work: A. For a period of
one (1) year after acceptance of the Work by the City Council of the City of Cupertino, or B.
Until all deficiencies in the Work are corrected to conform to the Plans and the CITY standards
and specifications for the Work, whichever is the; later to occur. The DEVELOPER shall, upon
written notice thereof, immediately repair or replace, without cost or obligation to the City of
Cupertino, and to the entire satisfaction of said CITY, all defects and imperfections arising out of
or due to faulty workmanship and/or materials appearing in said Work.
14. SANITARY DISTRICT
It is further agreed that the DEVELOPER; shall file with CITY, upon execution of this
AGREEMENT, a letter from the Cupertino Sanii:ary District stating that the DEVELOPER has
entered into a separate AGREEMENT with the said District to install sanitary sewers to serve all
lots within said Project and stating that a bond to insure full and faithful performance of the
construction of the said sanitary sewers and to insure maintenance of said sanitary sewer in
conformance with the provisions as set forth in Paragraph 13 above has been filed.
15. BUSINESS AND PROFESSIONS CODE
It is further agreed that DEVELOPER sh:~ll file with CITY, upon execution of this
AGREEMENT, substantial evidence that all pro~risions of Section 11603, Article 8, Chapter 4 of
the Business and Professions Code, pertaining to special assessments or bonds, have been
complied with.
16. CENTRAL FIRE DISTRICT
It is further agreed that the DEVELOPER; shall file with the CITY, upon execution of the
AGREEMENT, a letter from the Central Fire Protection District of Santa Clara County, stating
that the DEVELOPER have entered into an AGREEMENT with said District to install fire
File No.: 52,280
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hydrants to serve said Project and stating that all necessary fees have been deposited with said
District to insure installation and five (5) year rental fee of said hydrants.
17. STREET LIGHTING - P.G.and E. RATE SCHEDULE SHALL APPLY
It is further agreed that the DEVELOPER: shall apply for the installation of electric power
for street lighting at the earliest date possible.
18. PACIFIC GAS AND ELECTRIC/PE~CIFIC BELL
It is further agreed that the DEVELOPER: shall pay to Pacific Gas and Electric Company
and/or to PACIFIC BELL any and all fees. required for installation of overhead and/or
underground wiring circuits to all electroliers wi~:hin said property and any and all fees required
for undergrounding as provided in Ordinance No. 331 of CITY when DEVELOPER are notified
by either the City Engineer or the Pacific Gas an~i Electric Company and/or PACIFIC BELL that
said fees are due and payable.
19. EASEMENTS AND RIGHT RIGHT'-OF-WAY
It is further agreed that any easement and right-of--way necessary for completion of the
Project shall be acquired by the DEVELOPER ar. their own cost and expense. It is provided,
however, that in the event eminent domain proceedings are required by the CITY for the purpose
of securing said easement and right-of--way, that the DEVELOPER shall deposit with CITY a
sum covering the reasonable market value of the land proposed to be taken and to be included in
said sum shall be a reasonable allowance for severance damages, if any. It is further provided
that in addition thereto, such sums as may be required for legal fees and costs, engineering, and
other incidental costs in such reasonable amounts as the CITY may require shall be deposited
with the City of Cupertino.
20. HOLD HARMLESS
It is further agreed that, commencing with the performance of the Work by the
DEVELOPER or their contractor and continuing; until the completion of the maintenance of the
Work as provided in Paragraph 13 above, the DEVELOPER shall indemnify, hold harmless and
defend the City from and against any or all loss, cost, expense, damage or liability, or claim
thereof, occasioned by or in any way whatsoever arising out of the performance or
nonperformance of the Work or the negligence or willful misconduct of the DEVELOPER or the
DEVELOPER' agents, employees and independf;nt contractors.
21. INSURANCE
It is further agreed that: The DEVELOPER shall take out, or shall require any contractor
engaged to perform the Work to take out, and m:~intain at all times during the performance and
maintenance of the Work called for or required to be done hereunder, a policy of insurance
naming the CITY and members of the City Council of the City of Cupertino, individually and
collectively, and the officers, agents and employees of the City individually and collectively, as
File No.: 52,280
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insured. Said separate policy shall provide bodily injury and property damage coverage to the
foregoing named CITY and individuals covering all the Work performed by, for, or on behalf of
said DEVELOPER. Both bodily injury and prof~erty damage insurance must be on an
occurrence basis; and said policy or policies shall provide that the coverage afforded thereby
shall be primary coverage to the full limit of liability stated in the declarations, and if the City, its
members of the City Council individually and collectively, and the officers, agents, and
employees of the CITY, individually and collectively, have other insurance against the loss
covered by said policy or policies, that other insl~rance shall not be called upon to cover a loss
under said additional policy..
A. Each of said policies of insurance shall provide coverage in the following
minimum amounts: For bodily injury, $100,000 each person; $300,000 each occurrence,
property damage, $50,000 on account of any one occurrence with an aggregate limit of not less
than $200,000.
B. The DEVELOPER shall file with the City Engineer at or prior to the time of
execution of this AGREEMENT by the DEVELOPER such evidence of said foregoing policy or
policies of insurance as shall be satisfactory to said City Engineer. Each such policy or policies
shall bear an endorsement precluding the cancellation or reduction in coverage without giving
the City Engineer at least ten (10) days advance ~iotice thereof.
C. In the event that the project covered herein should be mutually situated in or affect
the area of jurisdiction of a separate municipalit•,~ or political subdivision of the State of
California, the policies of insurance required her~;in and above shall co-name such municipality
or political subdivision and the provision set equally apply to municipality and political
subdivision.
22. WATER MAIN EXTENSION DEPOSIT
The DEVELOPER further agrees to deposit with the CITY those monies required to
comply with "Policy on Water Main Extensions Work and Deposits: dated September 9, 1977.
The deposit shall be held by the CITY until said monies are needed to implement improvements
outlined by the Director of Public Works or improvements outlined within an adopted Water
Master Plan. The amount shown herein at PART K, Page 2 shall be the full amount due.
23. MAP AND/OR IMPROVEMENT PLANS
It is further agreed that the CITY shall obtain the following map and/or plans at the
DEVELOPER' expense:
A. A photo mylar and twelve (12) p~7nts of fully executed tract map.
B. A photo mylar and twelve (12) prints of fully executed improvement plans.
C. A scan in CAD format of all executed improvement plans and map.
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The DEVELOPER agree to pay the CIT`~ from the development maintenance deposit the
cost for all prints of plans and map required under Item 23.
24. TERMS AND CONDITIONS
It is further agreed that the above named terms and conditions for the said Tract shall bind
the heirs, successors, administrators or assigns o:Fthe DEVELOPER. The assignment of this
AGREEMENT shall not be made without appro~ral by the City Council of said CITY.
IN WITNESS WHEREOF, CITY has caused its name to be hereunto affixed by its
Mayor and City Clerk, thereunto duly authorized. by resolution of the City Council and said
DEVELOPER has hereunto caused his name to lie affixed the day and year first above written.
Approved as to form:
CITY OF CUPERTINO:
Mayor
~~Z~2~'~t ~GTf'/~c
C' y Clerk
Notary Acknowledgment Required
Exhibit A Attached
DEVELOPER:
B. K. D elopmen poration
File No.: 52,280
Page 9 of 9
State of California
County of Santa Clara
~ June 20, 2001 before me, the urraersigned, a Notary Public in and
for said State, personally appeared Brian J. Kelly, Jr.
personally (mown to me (or proved to tre on the: basis of satisfactory evidence)
to be the person(s) whose mire(s) is/are subscribed to the within instrument
and aclmowledged 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 tehalf of which the person(s)
acted, executed the instrture_nt .
WITNESS my hand and official seal.
Signature
Name: J. E. Johnson
~. c. JG'c
s-' ~'`~"'i,ti,'. C.ON!M. u,,?g5',67
~ '-~=-i"`-~,}~ _.. NOTARY PU9LIC-L-P.LIFORNIA
c ~f~~: SANTA CLARA COUNTV ,y
~) ~ 4 1~' My Ccmm. Expires March 12, 2Q05
(Seal)
e.