HomeMy WebLinkAboutTetherow Performance Bond DocsDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of August 25, 2008
Please see directions for completing this document on the next page.
DATE: August 15, 2008
FROM: Anthony Raguine Community Development Department
x4739
TITLE OF AGENDA ITEM:
Consideration and approval of the release of the Tetherow Phase III performance bond and acceptance
of the maintenance bond.
PUBLIC HEARING ON THIS DATE? No.
BACKGROUND AND POLICY IMPLICATIONS:
On November 17, 2007, the Board approved Improvement Agreement IA -07-12 (document # 2007-
610) for infrastructure (roads and utilities) for Phase III of the Tetherow Destination Resort, and
accepted the associated performance bond. The Road Department has verified (see attached memo)
that all improvments for Phase III are complete. Per the Improvement Agreement, the developer must
warrant that all improvements are free from defects in materials and workmanship for a period of 12
months, and warrant the improvments in the amount of ten percent (10%) of the construction costs of
the required improvments. The construction costs for the Phase III improvements were $2,531,371.60
and were confirmed by the Road Department (see attached email). The maintenance bond amount is
$253,137.16.
Release of the performance bond occurs when the performance bond is removed from the Clerk's safe
and sent to the developer. Prior to mailing the performance bond to the developer, the maintenance
bond will be placed in the Clerk's safe.
FISCAL IMPLICATIONS:
None.
RECOMMENDATION & ACTION REQUESTED:
Board release of the Tetherow Phase III performance bond, and acceptance of the maintenance bond.
ATTENDANCE: Anthony Raguine.
DISTRIBUTION OF DOCUMENTS:
Anthony Raguine
Legal Counsel
insctibcp
LED
GRO
INSCO INSURANCE SERVICES, INC.
Underwriting Manager for:
Developers Surety and Indemnity Company
Indemnity Company of California
17780 Fitch, Suite 200 • Irvine, California 92614 • (949) 263-3300
www.InscoDico.com
MAINTENANCE BOND
BOND NO.: 785149S-1
KNOW ALL MEN BY THESE PRESENTS:
THAT we, TD CASCADE HIGHLANDS, LLC , as Principal,
and DEVELOPERS SURETY AND INDEMNITY COMPANY , a corporation organized and doing business under
and by virtue of the laws of the State of IOWA and duly licensed to conduct surety
business in the State of OREGON , as Surety, are held and firmly bound unto
DESCHUTES COUNTY
as Obligee, in the sum of TWO HUNDRED FIFTY-THREE THOUSAND ONE HUNDRED THIRTY-SEVEN
AND 16/100'S
($ 253,137.16 ) Dollars, for which payment, well and truly to be made, we bind ourselves, our heirs, executors
and successors, jointly and severally firmly by these presents.
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
WHEREAS, the above named Principal entered into an agreement or agreements with said Obligee to:
PHASE 3 AT THE CASCADE HIGHLANDS/TETHEROW DESTINATION RESORT IA -0712
DESCHUTES COUNTY DOCUMENT NO. 2007-66279
WHEREAS, said agreement provided that Principal shall guarantee replacement and repair of improvements as described
therein for a period of one year following final acceptance of said improvements;
NOW, THEREFORE, if the above Principal shall indemnify the Obligee for all loss that Obligee may sustain by reason
of any defective materials or workmanship which become apparent during the period of one year from and after acceptance
of the said improvements by Obligee, then this obligation shall be void; otherwise to remain in full force and effect.
IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name
of the said Surety is hereto affixed and attested by its duly authorized Attorney -in -Fact
this 3RD day of JULY 2008
YEAR
TD CASCADE HIGHLANDS, LLC
Principal
ID-1201(One Year Term) (REV. 5/01)
DEVELOPERS SURETY AND INDEMNITY COMPANY
BY: 1
KEITH YAM, Attorney -in -Fact
POWER OF ATTORNEY FOR
DEVELOPERS SURETY AND INDEMNITY COMPANY
INDEMNITY COMPANY OF CALIFORNIA
PO Box 19725, IRVINE, CA 92623 (949) 263-3300
KNOW ALL MEN BY THESE PRESENTS, that as except as expressly limited, DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, dc
each, hereby make, constitute and appoint:
"*Margie Johnson, James R. Ginger, John J. Kennedy, John S. Melvin, Keith Yam, jointly or severally**'`
as their true and lawful Attomey(s)-in-Fact, to make, execute, deliver and acknowledge, for and on behalf of said corporations, as sureties, bonds, undertakings and contracts of surety-
ship giving and granting unto said Attomey(s)-in-Fact full power and authority to do and to perform every act necessary, requisite or proper to be done in connection therewith as each of
said corporations could do, but reserving to each of said corporations full power of substitution and revocation, and all of the acts of said Attomey(s)-in-Fact, pursuant to these presents,
are hereby ratified and confirmed.
This Power of Attomey is granted and is signed by facsimile under and by authority of the following resolutions adopted by the respective Board of Directors of DEVELOPERS SURETY
AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, effective as of January 1st, 2008.
RESOLVED, that the chairman of the Board, the President and any Vice President of the corporation be, and that each of them hereby is, authorized to execute Powers of
Attorney, qualifying the attomey(s) named in the Powers of Attomey to execute, on behalf of the corporations, bonds, undertakings and contracts of suretyship; and that the Secretary or
any Assistant Secretary of the corporations be, and each of them hereby is, authorized to attest the execution of any such Power of Attorney:
RESOLVED, FURTHER, that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and any such
Power of Attorney or certificate bearing such facsimile signatures shall be valid and binding upon the corporations when so affixed and in the future with respect to any bond, undertaking
or contract of suretyship to which it is attached.
IN WITNESS WHEREOF, DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA have severally caused these presents to be signed by
their respective Vice President and attested by their respective Assistant Secretary this January 1st, 2008.
By: 7
Stephen T. Pate, Senior Vice President
By: t/eaicr—aO
Charles L. Day, Assistant Secretary
State of California
County of Orange
On January 1st, 2008
personally appeared
Date
before me
r?
SP AN Vo,,.
PPOR.gi,
OCT.5
1967
1111�� 4 /FO
Christopher J. Roach Notary Public
0
Here Insert Name and Title of the Officer
Stephen T. Pate and Charles L. Day
Name(s) of Signer(s)
Place Notary Seal Above
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged 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 behalf of
which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is
true and correct.
WITNESS my hand and offs ial seal.
Signature
CERTIFICATE
Ch •••-''er J. Roach
The undersigned, as Assistant Secretary, of DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA, does hereby certify
that the foregoing Power of Attomey remains in full force and has not been revoked, and furthermore, that the provisions of the resolutions of the respective Boards of Directors of said
corporations set forth in the Power of Attomey, are in force as of the date of this Certificate.
This Certificate is executed in the City of Irvine, Califomia, the 3 day of July , 2008
By:
Albert Hillebrand, Assistant ecretary
I D-1380(Wet)(Rev.07/07)
JUN -20-2008 FRI 10:12 AM Deschutes County Road
FAX NO, 5413882719 F. 02
Road Department
FAX MEMORANDUM
61150 SE 27th St. • Bend, Oregon 57702
[5413368-6581 • FAX [541) 36E3.2719
DATE: June 20, 2008
TO: Anthony Ra.guine, Associate Planner
FROM: George Kolb, County Engineer
RE: Bond release for Tetherow Resort Phase 131, B2, D1, D2 (Phase 1l1)
CC:
Jim Albin, W & H Pacific
Laurie Crag, -head, Deschutes County Legal Counsel
The Road Department has verified that all improvements are completed for Phase B1, B2, D1, D2
(Phase 1I1) of Tetherow Resort, TP -06-973. The bond amount for this improvement was
$1,993,990,82. I have attached a letter from W & H Pacific requesting release of this bond.
release tetherow Phase B2,B3,1) 114ZWAiik}{i@g Performed with Pride
JUN -20-2008 FRI 10:12 AN Deschutes County Road
,Tune 20, 2008
Mr. George Kolb
Deschutes County Road Department
61150 SE 27th
Bend, Oregon 97701
Re: Tetherow Destination Resort
Construction Plans, Phase B21B3, D1/D2
Construction Completion
WHP File No.: 33810A005
Dear George;
FAX NO. 5413882719
I'. 03
WHPaiif1t
Knife .River has substantially completed construction of the Phase B2/B3, D1/,P2 project. The project
included water, sewer, paths, dry utilities, and private street improvements to serve 83 residential lots.
The construction plan set was approved by the Road Department on 8/16/07.
The City water and sewer mains were completed in accordance with City of Bend. specifications, and
were inspected by City of .Bend staff. The mains have passed City of Bend performance testing
requirements. The private roads, curbs, and pathways have also been completed.
Based on inspections by City of Bend staff and periodic inspections by WB&I-I Pacific staff, it is my
professional opinion that the construction was completed in accordance with the approved plan set.
I understand Deschutes County representatives, upon site review with Knife River, have found the
construction of Phase B2/B3, D1/D2 acceptable per Deschutes County standards and per the approved
plan sct. Please confirm that Phase B2/B3, D1/D2 has met your approval by providing a letter stating
acceptance,
Sincerely,
W H Pacific, Iuc,
J es E. Trost, P.E.
Project Manager
Enc: City of Bend Water & Sewer Acceptance Report
Cc: Matt Brown
020 5W 5mkay Drive, &lilts 0-100 • 13efld,OR 97702 • T 541.388.4255 • F 541.3138 4229 • www.whpaclflc.com
Page 1 of 2
Anthony Raguine
From: George Kolb
Sent: Thursday, July 03, 2008 8:06 AM
To: Anthony Raguine
Subject: RE: Phase 3 (82/63, D1/D2) Maintenance Bond with Deschutes County
Hey Anthony;
I looked over the cost estimate for the maintenance bond and it looks good to me. The original estimate for the
construction was $1,661,659.10. This estimate shows a final amount for construction of $2,531,371.60. The
reason for the difference is that there were quite a few items where the quantity was different from the original
estimate but the unit prices were the same and I noticed that they had added a couple of other items that were not
in the original estimate. Let me know if you need anything else. Later - George
From: Anthony Raguine
Sent: Wednesday, July 02, 2008 3:19 PM
To: George Kolb
Subject: FW: Phase 3 (B2/B3, D1/D2) Maintenance Bond with Deschutes County
Hi George. Can you take a look at the cost spreadsheet for Tetherow Phase III and confirm that it is appropriate.
Thanks.
From: Albin, Jim [mailto:JAIbin@whpacific.com]
Sent: Wednesday, July 02, 2008 2:12 PM
To: George Morris
Cc: jmbrown@jtsmithco.com; Frost, Jim; Anthony Raguine; Boggs, Niall
Subject: FW: Phase 3 (B2/B3, D1/D2) Maintenance Bond with Deschutes County
George:
The county has rejected the recent Phase 3 maintenance bond due to incorrect language on the face of the
bond. We need to make the first whereas condition similar to the Phase 2 maintenance bond which is attached.
The first whereas statement should read:
Improvements to roads and utilities for Phase 3 at the Cascade Highlands/Tetherow Destination Resort IA -0712,
Deschutes County Document No. 2007-610.
Anthony, please verify this statement is correct.
Anthony, the bonding spreadsheet is also attached to this email.
Give me a call if you have any questions,
Jim Albin
Civil Designer, E1T, LS1T
'HP ific
7/3/2008
Page 2 of 2
920 SW Emkay Dr, Ste C-100 Bend, OR 97702
D 541.312.2647 1 0 541,388.4255 1 F 541.388.4229
Enhancing communities through creative, exceptional service
From: Albin, Jim
Sent: Thursday, June 19, 2008 4:30 PM
To: 'George Morris'
Cc: 'J Matt Brown'; 'Bill Bernards'; Frost, Jim; Boggs, Niall
Subject: Phase 3 (B2/B3, D1/D2) Maintenance Bond with Deschutes County
George:
TD Cascade, LLC needs to post a maintenance bond to remove the existing performance bond with Deschutes
County for Phase 3 (B2/B3, D1/D2). The maintenance bond for the County needs to be 10% of the total
construction costs. I have attached a spreadsheet which shows the total construction cost as well as the 10%
bonding amount.
We ran into some issues/snags with respect to the bonding language when Proterra went through this exercise
with Phase 2 (A1/A2) last month. I have attached a copy of their final maintenance bond draft for an aid. Also, I
spoke with Anthony Raguine about the maintenance bond for Phase 3 and he mentioned Laurie Craghead sent •
him further bonding conditions/instructions. Please find the attached 'Bond conditions' from Laurie Craghead.
Please give me a call if you have any questions.
Thank you,
Jim Albin
Civil Designer, EIT, LSIT
HPdc1fIC
920 SW Ernkay Dr, Ste C-100 I Bend, OR 97702
D 541.312.2647 j 0 541.388.4255 I F 541.388.4229
Enhancing communities through creative, exceptional service
7/3/2008