CC Resolution No. 1591
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RES~LUi~~N h'0. 1~91
A htESOL'UTION OF TF~}3 G:~`L`Y C~UNCIT~ UF THE (G~i'i n1~ G`UPERTJNO
FOR!•iGZATINQ P~LZ~Y F~t~ FIANDLIN(~ FA:CTf~TF`UL i'EF~NaRI~t~iCL~ F~i~TL
L~ AND MATERZALS BO1dllS
WFiEREAS, the nusiness and Pro.fessicn's Code of the Sta~e of
California established limits under wtlich rierf
arman~e and labor and
materia~.s bon~s Riu~~ be required by ~he Ci~y of Cupertino, and
WHEREAS, ~he Ci~y Cat~nci? of ~1~~ CS ty af Cuperti~la wi.~hee. L•o
es~ablish a conc.ise and un~.~'arm procedure by which such boncis v~i1''
be requtred and processed by the City of Cu~.~erLino; notr theref.ore,
BE IT RES(JLVEU tlZa ~~he pr:,cedure outlined the fallowing be
es :~biiahed aa that unci~r srh~ch tti~ City ?..111 1['P.q~.ii!^e and process
fa~thful performance bonds and labor and matcri~ls br~nds for all con~
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~~raction and i:npravemer.t pro~Acts for whicti ouch bora~s are required
w~ ~'r?in th~ ~turiad;~tic~n a:' the City r~' Cupr:rtino.
POLICY
I. The Cit~ Engi:~epr wt i~ acec:pt improvement ag: ee~renta and
b~n3~ (perfct•r~ar,ce ~nd i~~~;~r ar.a r~a+~ei~i~l~) by direct tranemiL-t~l to
tt.e {~ity Ct~~it:~i~..
A. S:lrety Bonds ~ Wt-~en ~urety ui• ~~paner" b~nd~ are ueed
:o s~tis~'y tr+p br.ndin~ r~e~uirementr~, thc: bondt~ ah~11
U~ prov icie~9 ~n the fol low ing ~amounL~ :
1, ~'aSthful pez`f'+'.~rmar~oc buntl, 1009~ at" ~he ~~timt~Led
ca~t oi' '_::prov~ment~.
2. Labor and r<ia~~~ri~1t~ bondt~, ~OQ;K ni' ~he eetimaCr~d
cnat uT ~cpravem~ntt~.
f~. Wt~en ca~h is ~epcsited wi~h tt~e City to ful~'ill t;he
bon3ing re~ui.r~m~nta, the borida ehall be provided Sn
tl;~ fo~],owin~, arr.oun~:s:
1, fi~ithf~;. p~rformance bond, 50~ n:C Gt-.e ps~imated
cotst of" a.~p~~ovemen~n.
2. L~bur er~d cnater~.t~ls b~na, 50~ of the ~~tim~ted
coat of irr~~~r~v~mhnba.
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Resa~~~ fan No. 1;~= Page 2
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~d~: The setiedule cf bond amou~.cs is based ugon a F
cons~c~ration of ihe actua~ cash expended hy the
, c~ev~lope~.~, ~he in.terest w~iich i:~ ac~rued by monies
uapd i:.;a~h ban~s, ar~d the aaditional overhead
requ'_._-~nts neaessa~y to the administratiur. and
call'_:~, ef ~urety b*~r~ds.
'rhe t~i nngi.neer Nill caake determir.ation a~ t.o whether one
yeas ~in~enanc~ =r~ould be req~.~ired. Thir~ determj.nt~tion xi11. be mnde
bas~ ~:zpo~ tihe c:'_:~ria diacus~~d above.
UpQn :;:~ai in~pection, the Cii:~? En~ineer sha7.~ request
perm;_~ion from City Council in the form of a,Kinut~ Qrt~ler to
eaecL.:,p ~he doc~.
~.Ts neceasar;~ to consCruction ~cceptanee o£ t~ie
impr~rrm~nts ir.~•~i•red. After having received ~uch ~ermissic~n, the
Citg :.::~ir,eer ~.f? ~ ~end copie~ Jf the ex~wcute~ document~ to ~he bor~d
prir_:~~~t~Gl and s:._ _ , .
A. Fe_• ...:.~e p.~o,~ec f'.~r ~rhich h0 one year m~:nt~nance
pe:'_:~ requirG~, ~ne ~~nndai~,i form o!' construc:tion
ac: :~;~ce daeur~~r.:s sha11 Ue ~ise.i wfiickl, ~rher, executed
b~• ~~~ty Engir.¢er, acL-in~ on p~rmic~~i~r~ granted by
tt:~ Gouncf.l, :c~~.:ld provi~e s~or the follc~xing:
1. _-:~:ci~.~ate re:.~ ~~y c~f the tc~*ai f'~S.L-hful Ferfarmanee
:_..i.
2. ~r,,~tic r~:.~~~~ of Lh~: l~t~or and ina~er.:.~i:~ bond
~.:~x montr~w Lhe datc> ri' aonati.ruct"~n accept-
iri the ~~~er.~F_ oI' ~c~1• ,~iaim~ agaic:s: a~ach bond.
...,.;~,~t~tic re:.~~:.4 v£ th~ li,~L~ility irisul^~n~e
:.~,~i~ed b;~ 3~t:eloper t:~ld Lhe C.it;; klarmle~a
:-i~e ever.: :.iabi~ir5~ a:•isin~ ft~am :hey sub~eQL
,.~.;e+:t at ~:ecr and o::e a~~• frotn the aa4e of
..,.;:t•~actian ~:~~pt~nce ir: ;;:ty ~bsenc~ any clt~irn
3i;isL uu~:h ~nce.
4. ..-!ie even c~i a im~ a~~~ i;i, t tl~e ~bovc: ~~7nda or
~ ;:.:.,.~ance, :~r.structic;; ~.cepta~ce ~i*~r°arr~e~n~~
~::±~:h ~ravi~3~ : ;r ~h~ t~t~tar;~~ic release i~rioec
. : ~nd :.ns~.;r~r~~e ~t ttt~ x'1 n~l ae~~;lec.erct af ~la.
. :~a~m~, but: n~ ~~~ri~r La thL tim~~ inter~r~1. sp~~:cii'led
~nd (3j aC~ve.
H. Fc:~ s~.~ proJc~~t~ f^r which a oc~e ye~r mainten~nce peri~ad
i~ ;..:c•ed, tl~i~ ~:~ndard i'ot~m cf cur.~truct' ~r; aceept~nce
c't•~.,..::::;~ st~a?? W~- .:~nd which, ~.titn exeauted tj t,he Ci~y
E~:~:::~er,~ actin~ ~r. ~ermir~slan branted by the rity Council,
wc::~~ t~i~ovidc f~r :he fo~.lowi~~:
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Resolut~c~n tlo. 15g1 ~ PaB~ 3
1. Immedl~te 90~ r~dur.~~.on ef
the performance bond
vp~an congtruction ~.cceptance.
2. Automa~ic releaae of the r.mainin~ (1(~6) performanc e
bond at one year fr~m the d~t;e of eonstruction
acceptance in the al~:~ence aC any clsim agains~ auch
bond.
3. Automatic release of the l~bor and material~ bond
a~ aix months from the dat~+ of construction
acceptance in th~ abt~enc~ of any c1a3m agajn~t
such k~ond.
4. Autorr?t~tic release o~ the liability in~urance pro-
vided by the develcape;~ ta ha3d th~ City harm~e~a
in ~h~ even~ vf 1i~ab.iY.3ty ariaing ~'rom thc ~ub~ec~
pro~ect at one year ~tnd on~; day from ~t,~ date of
con~truction SrCep~t~ilcc: in the absence o!' any c1A~.ms
agnin~t ~uch i.r,surance.
In the e~~nt cl~:tma ~gain~t the atove ~ond~ +ar
insuranec, th~ conni:ructior~ acc~ptance dacument:~
~hic}i pi~ovidp ~"~r tt?e ~utotn~Cic i•elease ~f' t~i~se
bon~is and insui,ancc rzt t:}1~ 1'inal 3~ttlerr~ent c~f aII
ciaim:~, bt:.t r~~t pri~r tc ttae t1r~:~.> inte~rval a~~eci.fYt.d
itt nt2d 3b~ve.
nlm a~:~~~~r:n rni 3 t s t ~i~.y ~~r Apr i 1
3aFp, t,: :,~e roll~~.yir~~g u~r,e:
A'~"~S: Counc:ilr,~.~~~; - D~:,mpster, Johnsc?n, ~~oel~ StokeS~ Fi~tzgerald
;,~?~S: C~~uncilt~•,e:~ None
AB~E2lT: Councllr.:~r: - None
A'I'TF.ST : A I'f'~tqV~.h:
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