14 Staff Report - Execute the Contract for Public Improvements
COUNCIL AGENDA REPORT MEETINGDATE: 8/2/04 ITEM NO_ 1L.1 DATE: July 22,2004 TO: FROM: DEBRA J. FIGONE, TOWN MANAGE SUBJECT: ADOPT A RESOLUTION APPROVING
THE FINALMAP FORTRACTNO. 9505 (SHANNON VALLEY RANCH), ACCEPTING THE DEDICATIONS AND AUTHORIZING THE TOWN MANAGER TO EXECUTE THE CONTRACT FOR PUBLIC IMPROVEMENTS. RECOMMENDATION: Adopt
a resolution (Attachment 1) approving the Final Map for Tract No. 9505 (Shannon Valley Ranch), accepting the dedications and authorizing the Town Manager to execute the contract for
public improvements. BACKGROUND: The developer, GreenbriarHomes, requested approval ofa 14-10tplanned development subdivision on the northwest comer of Hicks and Shannon Roads. On March
4, 2002, the Town Council approved the PlannedDevelopment Ordinance (Ordinance 2097). The Tentative Map (M-02-0018) was approved by the Planning Commission on January 22, 2003. DISCUSSION:
JOHNE. CURTIS 4 Director ofParks and Public Works PREPARED BY: Tract No. 9505 will create 14 lots for detached single family dwellings on approximately 80 acres ofland located on the
west side ofHicks Road and the north side ofShannon Road. The developer, Greenbriar Homes, have provided all necessarymaps and drawings, in addition to contracts, bonds, and liability
insurance (Attachment 2). The developer has paid the appropriate fees to fully comply with the previously-imposed development conditions and Town ordinances, as listed on Page 2 of this
report. Reviewed by: %-Assistant Town Manager t&X?Attomey __Clerk---d?LFinance __Community Development I Revised: 7/22/0%-2:36 pm Refonnatted: 5/30/02 N:\B&E\COUNCn. REPORTS\Tr-9505
Accept Map.wpd
II I PAGE 2 SUBJECT: TRACT NO. 9505 (SHANNON VALLEY RANCH) July 22, 2004 Tract No. 9505 will create two new streets to be named Shannon Oaks Lane
and Mountain Laurel Lane and will be constructed as part ofthe improvements for this subdivision. Shannon Oaks Lane will have access offofHicks Road, and Mountain Laurel Lane will have
access offofShannon Oaks Lane. Land on the east side of Hicks Road along Guadalupe Creek will be dedicated to the Santa Clara Valley Water District separately from the tract map. ENVJRONMENTAL
ASSESSMENTS: This activity is a project as defined under the California Environmental Quality Act (CEQA) but is ministerial, therefore no further action is required under CEQA. FISCAL
IMPACT: The developers, Greenbriar Homes, have paid the following fees: 1. Tract Map Checking fee $ 4,400.00 (paid 3/1/04) 2. Engineering Plan Check fee 21,200.00 (paid 3/1/04) 3. Computer
Service fee 1,024.00 (paid 3/1/04) 4. Engip.eering Inspection fee 27,000.00 (paid 7/21/04) 5. Computer Service fee 1,080.00 (paid 7/21/04) 6. Microfilming fee. . . . . . . . . . . .
. . . . . . . . . . . 110.00 (paid 7/21/04) 7. Storm Drainage fee (Basin 3) 3,820.00 (paid 7/21/04) Additionally, at the time of occupancy of each home, a traffic impact mitigation fee
will be due for 13 ofthe new houses to be constructed. Credit will be given for the one house that was destroyed by fire. The Traffic Impact Mitigation fee is currently $5,742 per single
family dwelling. These fees are due at the time of occupancy per State statutes. Attachments: 1. Resolution Approving Final Map for Tract No. 9505 (2 pages) 2. Improvement Contract,
Bonds & Insurance (15 pages) Distribution: Tim Quirm, Greenbriar Land Company, 43160 Osgood Road, Fremont, CA 94539 JEC:KR:TD N:\B&E\COUNCIL REPORTS\Tr-9505 Accept Map.wpd
RESOLUTION 2004 . 100 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING FINAL MAP OF TRACT NO. 9505, ACCEPTING THE DEDICATIONS AND AUTHORIZING THE TOWN MANAGER TO SIGN
THE CONTRACT WHEREAS, on January 22, 2003, the Planning Commission of the Town of Los Gatos approved the Tentative Map Application M-02-0018, with conditions; and WHEREAS, those conditions
required the Owner or Subdivider to do the following: 1. That prior to the delivery of said Map to the Owner of said subdivision, and prior to its recordation, the Owner or Subdivider
of said subdivision shall enter into and execute an agreement between the Town of Los Gatos and the said Owner or Subdivider on that certain proposed Subdivision Agreement on file in
the Office of the Town Clerk, entitled, "Contract for the Improvement of Tract No. 9505", wherein the Owner or Subdivider in consideration of the approval of said Map by the Town and
acceptance by the Town of the dedication of lands for public use therein contained, shall agree to construct and complete, within the time specified in said agreement, all street and
other improvements required of Owner or Subdivider under the provisions in Chapter 27 of the Code of the Town of Los Gatos, and such other street, sewer, or other improvements designated
or mentioned in said agreement and/or and as specified in the Plans and Specifications for Tract No. 9505. 2. That said Owner or Subdivider shall, before the release of said Final Map
to Owner of Record, and as a condition precedent to the recordation thereof, furnish to the Town and file with the Town Clerk cash, or a good and sufficient bond in form to be approved
by the Town Attorney, securing the faithful performance by said Owner or Subdivider of all work, and the construction of all improvements herein in this agreement mentioned, and within
the time herein specified, the amount of cash or said bond to be Five Hundred Thousand and No/lOO Dollars. 3. That said Owner or Subdivider shall, before the release of said Final Map
to Owner of Record, and as a condition precedent to the recordation thereof, furnish to the Town and file with the Town Clerk certificates or policies of public liability and property
damage insurance in form satisfactory to the Town Attorney, providing public liability insurance in the amount of Five Hundred Thousand ($500,000.00) Dollars for each person, and One
Million ($1,000,000.00) Dollars for each accident or occurrence, and property damage coverage of Two Hundred Thousand ($200,000.00) Dollars whereby the Town of Los Gatos, and in their
capacity as such, its Council members, officers, boards, commissions, and its employees will be insured, indemnified, and held harmless from any and all claims of any kind or nature
arising or resulting from the construction of said
improvements or other work of subdividing within or outside the said subdivision, and/or arising or resulting from or concerning the doing or failing to do so by said Owner or Subdivider
of all things required to be done in the above mentioned agreement between said Owner or Subdivider and the Town of Los Gatos. WHEREAS, the Owner or Subdivider has complied with the
conditions of Tentative Map Application M -02-0018. NOW, THEREFORE, IT IS RESOLVED that the certain Final Map of Tract No. 9505 in the Town of Los Gatos, dated July 2004, and prepared
by MacKay & Somps, Inc. for approval by the Town Engineer of the Town of Los Gatos, is hereby approved; the Town Manager is hereby authorized to execute the agreement with the Subdivider
and all offers of land for public use therein made on said Map are hereby PASSED AND ADOPTED at a regular meeting of the Town Council held on the 2nd day of August,
2004 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: ATTEST: Sandy Decker, Diane McNutt, Joe Pirzynski, Mike Wasserman, Mayor Steve Glickman. None None None SIGNED:
lsi Steve Glickman MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA lsi Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA
TOWN OF Los GATOS PARKS & PuBLIC WORKS DEPARTMENT ENGINEERING DIVISION PHONE (408) 399-5771 FAX (408) 399-5763 CONTRACT FOR THE IMPROVEMENT OF TRACT NO. 9505 -SHANNON VALLEY RANCH LOS
GATOS, CALIFORNIA SERVICE CENTER 41 MlLEsAVENUE Los GATOS, CA 95030-6044 This agreement, made and entered into, effective upon the last date this document is signed by the parties hereto,
by and between the TOWN OF LOS GATOS, a municipal corporation of the State of California, after this called "TOWN," andGHCShannon Valley Ranch,LLC, after this called"SUBDIVIDER," whose
principal place ofbusiness is 43160 Osgood Road, Fremont, CA 94539. WITNESSETII WHEREAS, SUBDIVIDERis engaged in subdividing that certain tract ofland known and designated as Tract No.
9505 -Shannon Valley Ranch, in the Town of Los Gatos, County of Santa Clara, State of California; and WHEREAS, a FinalMap ofTract No. 9505 -ShannonValley Ranch, after this called "MAP,"
has been filed with the Town Clerk of Los Gatos, for presentation to the CounCil for its approval, which map is incorporated herein by reference; and WHEREAS, SUBDIVIDER has requested
approval of the MAP before the completion of improvements of all streets, highways, or public ways and sewer facilities that are a part of or appurtenant to Tract No. 9505 -Shannon Valley
Ranch, including the necessary curbs, gutters, paving, catch basins, pipes, culverts, storm drains, sanitary sewers, street lighting and street trees, street signs, including water system
and fire hydrants acceptable to San Jose Water Company and Santa Clara County Central Fire Protection District, all according to the plans and specifications for all or any of said improvements
in or appurtenant to Tract No. 9505 -Shannon Valley Ranch, which plans and specifications are now on file in the Office of the Town Engineer of said TOWN; the plans and specifications
are composed of: Sheets numbered: 1 -8 I J Prepared by: Entitled: Dated: After this called "PLANS"; and MacKay & Somps, Civil Engineers, Inc. Plans for the Improvement of Tract No. 9505
July 2004 N:\B&E\ENGR-PROJECTS\Tract 9505\Conlract & Bonds.wpd Revised Format: 6/6/2000 Document Created: 7/22104 Attachment 2
TOWN OF Los GATOS Page 2 Contract for the Improvement of Tract No. 9505 -Shannon Valley Ranch WHEREAS, the Town Council of said TOWN did, on the day of , 2004, adopt a Resolution approving
the MAP and accepting the dedications therein offered, subject to and on condition that the SUBDIVIDER first enter into and execute this Agreement with the Town of Los Gatos, and provide
the TOWN with such security for performance and insurance and all other things as required by this Agreement and by the Resolution; NOW, THEREFORE, to insure satisfactory performance
by SUBDIVIDER of these obligations, and in consideration of the approval of the MAP, the parties hereto do now agree as follows: 1. COMPLETION TIME SUBDIVIDER shall construct all ofthe
improvements and do all the work herein above or hereinafter mentioned, all according to and to the extent and as provided in the Plans and to meet all Town Ordinances and the laws of
the State of California. Work shall be completed within one (1) year from the date of this Agreement. 2. DEDICATIONS TO THE TOWN As part of the performance ofits obligations under the
approval, the SUBDIVIDER shall grant to the TOWN for public use, the real property consisting of all new streets within the SUBDIVIDER'S property, using such instruments ofconveyance
as the TOWNmay require. The SUBDIVIDER warrants that the TOWN will receive title to such real property, free of encumbrance. This warranty shall survive delivery of the instrument. 3.
FAITHFUL PERFORMANCE SECURITY SUBDIVIDER shall, before the release of the MAP by the TOWN, for filing for record and as a condition precedent to the recordation ofit, furnish to theTOWN
and file with the Town Clerk cash, an instrument ofcredit, or a bond as provided by the Subdivision Map Act, in a form approved by the Town Attorney, securing performance by SUBDIVIDER
of all work shown on the Plans, and completion within the agreed time. The amount of cash, instrument of credit or bond shall be Five Hundred Thousand and 00/100 Dollars ($500,000.00).
It is further agreed that after final acceptance ofthe work, ten (10%) percent ofthe bond or cash shall remain in effect to guarantee the repair and replacement of defective materials
and construction, furnished or done by the SUBDIVIDER discovered within one (1) year after final acceptance of the subdivision improvements by the TOWN. This limitation on the security
does not shorten any time during which the TOWN may act to enforce the SUBDIVIDER's obligations under the terms ofthis agreement, nor shorten any time during which TOWN or any other
person may bring an action in an appropriate court regarding the subject or performance of this agreement. 4. LABOR AND MATERIALS SUPPLIERS SECURITY SUBDIVIDER shall, before release
of the MAP by the TOWN, and as a condition precedent to its recordation, also furnish the TOWN and file with the Town Clerk cash, an instrument of credit, or a good and sufficient bond
in form approved by the Town Attorney, securing payment to the Contractor, Subcontractors, and to persons N:IB&ElENGR·PROJECTS\Tract 9505\Contract & Bonds.wpd Form Revised: 616/2000
Document Created: 7122104
TOWN OF Los GATOS Page 3 Contract for the Improvement of Tract No. 9505 -Shannon Valley Ranch renting equipment or furnishing labor or materials to them for the improvements, the amount
of additional cash, instrument of credit, or bond to be Five Hundred Thousand and 00/100 Dollars ($500,000.00). 5. HOLD HARMLESS SUBDIVIDER does expressly agree to indemnify and hold
harmless the Town of Los Gatos, its Town Council Members, Boards, Commissions, employees and agents, from any and all loss or damage, and from any and all liability, including cost of
defense, for any and all loss or damage, and from any and all suits, actions or claims filed or brought by any or all persons or person because of or resulting from the doing by SUBDIVIDER
of any and all things required ofSUBDIVIDER by this Agreement, or because of or arising or resulting from the failure or omission by SUBDIVIDER to do any and all things necessary to
and required by this Agreement or by law, or arising or resulting from the negligent doing by SUBDIVIDER, SUBDIVIDER'S agents, employees or subcontractors of any and all things required
to be done by this Agreement, or arising or resulting from any dangerous or defective condition arising or resulting from any of the above said acts or omissions of SUBDIVIDER, SUBDIVIDER'S
agents or employees. 6. INSURANCE SUBDIVIDER shall, before the release oftheMAP by theTOWNand as a condition precedent to the recordation thereof, furnish to the TOWN and file with the
Town Clerk, and at all times during the performance of its obligations under this Agreement maintain the insurance described in Exhibit A. 7. TIME EXTENSIONS If performance of this Agreement
should be delayed without fault of the SUBDIVIDER, the time for the· construction of same may be extended by the Town Council for such period of time as iSTeasonable delay. 8. STORM
DRAINAGE SUBDIVIDER expressly agrees, at the SUBDIVIDER's cost and expense, to provide adequate drainage within the aforementioned Tract No. 9505 -Shannon Valley Ranch and construct
storm storm drainage discharge facilities into Guadalupe Creek. 9. STORM DRAINAGE FEE SUBDIVIDER has heretofore paid to the TOWN storm drainage fees pursuant to the provisions of Chapter
24 of the Los Gatos Town Code, in the total amount of Three Thousand Eight Hundred Twenty and 00/100 Dollars ($3,820.00), calculated at the rate of $2,000 per acre or lot, less credits,
for the area within the boundaries of Tract No. 9505 -Shannon Valley Ranch. SUBDIVIDER has reviewed the calculations for the storm drainage fees and agrees that they are correct. N:\B&E\ENGR·PROJECTS
\Tract 95051Conlracl & Bonds.wpd Form Revised: 6/6/2000 Document Created; 7/22104
TOWN OF Los GATOS Page 4 Contract for the Improvement of Tract No. 9505 -Shannon Valley Ranch 10. MAP CHECK, PLAN CHECK AND INSPECTION FEES SUBDIVIDER has previously paid the TOWN the
sum of Four Thousand Four Hundred and 00/100 Dollars ($4,400.00) to defray the costs incurred by the TOWNin reviewing and checking the MAP for Tract No. 9505 Shannon Valley Ranch, the
sum of Twenty-one Thousand Two Hundred and 00/100 Dollars ($21,200.00) to defray the costs incurred by the TOWN in reviewing and checking the Plans and Specifications, and the sum of
Twenty-Seven Thousand and 00/1OODollars ($27,000.00) to defray the costs incurred by theTOWNin inspecting the construction of the improvements within said Tract. 11. MAINTENANCE OF PUBLIC
INFRASTRUCTURE The SUBDIVIDER shall maintain all public infrastructure (streets, sidewalks, right-of-way, street light, storm drainage facility, sanitary sewer, etc.) in a safe and usable
condition at all times during construction. Should any public infrastructure become unsafe, unusable or inoperable because of the SUBDIVIDER'S activities, the SUBDIVIDER shall immediately
cease all work on the project until the public infrastructure is made safe and usable, for which the SUBDIVIDER shall be solely responsible. 12. CERTIFICATES OF OCCUPANCY The TOWNwill
not issue any R-3 Certificates ofOccupancy for single family homes to be built within Tract No. 9505 -Shannon Valley Ranch until all improvements shown on the PLANS have been completed
by the SUBDIVIDER, as required by the DIRECTOR OF PARKS AND PUBLIC WORKS. 13. AS-BUILT PLANS After completion of the construction of all work in the public right-of-way or public easements,
the original plans shall have all changes (change orders and field changes) clearly marked. The "As-built" plans shall again be signed and "wet-stamped" by the engineer who prepared
the plans, attesting to the changes. The original "Asbuilt" plans shall be reviewed and approved the Engineering Inspector. A photo Mylar and AutoCAD disk (as required by the conditions
of approval) of the approved"As-built" plans shall be provided to the TOWN before the release of the Faithful Performance Security. 14. NOTICES Notices regarding this Agreement shall
be given as follows and shall be considered effective upon either personal delivery or five (5) days following deposit in the U.S. Mail: To SUBDIVIDER: Patrick Costanzo, Jr., OHC Shannon
Valley Ranch, LLC 43160 Osgood Road Fremont, CA 94539 N:IB&E\ENGR-PROJECTSITract 95051Contract & Bonds.wpd Form Revised: 61612000 Oocument Created: 7/22104
TOWN OF Los GATOS To TOWN: 15. WAIVER Page 5 Contract for the Improvement of Tract No. 9505 -Shannon Valley Ranch Kevin Rohani, Town Engineer Parks and Public Works Department 41 Miles
Avenue Los Gatos, CA 95030 Waiver ofa breach ofdefault under this Agreement shall not form a continuing waiver or a waiver of a subsequent breach of the same or any other provision of
the Agreement. 16. SEVERABILITY Ifany term ofthis Agreement is held invalid by a court ofcompetentjurisdiction, the remainder ofthis Agreement shall remain in effect. 17. ENTIRE AGREEMENT
AND AMENDMENT This Agreement constitutes the complete and exclusive statement of this agreement between TOWN and SUBDIVIDER. No verbal agreement or conversation with any officer, agent,
or employee of TOWN, either before, during or after the execution of this Agreement, shall affect or modify any of the terms or obligations contained in the Agreement. TOWN OF LOS GATOS
DATE: _ TOWN MANAGER ATTEST: DATE: _ TOWN CLERK APPROVED AS TO FORM: DATE: _ TOWN ATTORNEY RECOMMENDED BY: DATE: _ DIRECTOR OF PARKS AND PUBLIC WORKS N:IB&E\ENGR·PROJECTSITract 95051Contract
& Bonds.wpd Form Revised: 6/6/2000 Document Created: 7/22104
TOWN OF Los GATOS GRC Shannon Valley Ranch, LLC a Delaware Limited Liability Corporation Page 6 Contract for the Improvement of Tract No. 9505 -Shannon Valley Ranch SUBDIVIDER 1 By:
Greenbriar Homes Communities, Inc. a California Corporation, its Manager Patrick Costanzo, Ir. Executive Vice President N:IB&E\ENGR·PROJECTSITracI9505IConlracl & Bonds.wpd Form Revised;
61612000 DATE: _ Document Created: 7122104
FAITHFUL PERFORMANCE BOND WHEREAS, the Town Council of the Town of Los Gatos, State of California and GHC Shannon Valley Ranch, LLC (herein designated as "PRINCIPAL") have entered an
agreement by which PRINCIPAL agrees to install and complete certain designated public improvements, which said agreement, dated _ __, 2004, and identified as Tract No. 9505 -Shannon
Valley Ranch, is hereby referred to and made a part hereof; and WHEREAS, said PRINCIPAL is required under the terms of said agreement to furnish a bond for the faithful performance of
said agreement. NOW, THEREFORE, we, the PRINCIPAL and , as Surety, are held and firmly bound unto the Town of Los Gatos (hereinafter called "TOWN"), in the penal sum of Five Hundred
Thousand and 00/100 dollars ($500,000.00) lawful money ofthe United States, for the payment ofwhich sum well and truly to be made, we bind ourselves, our heirs, successors, executors
and administrators, jointly and severally, formally 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 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 TOWN, its officers, agents and employees, as therein stipulated, and this obligation shall become null and void; otherwise it shall be
and remain in full force and effect. PRINCIPAL and Surety further agree that upon TOWN's final acceptance of the work, ten percent (10%) of this bond shall remain in effect to guarantee
the repair and/or replacement of defective materials and/or construction, one (l) year after TOWN's final acceptance of the work. As a part ofthe 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 byTOWNin successfully enforcing
such obligation, all to be taxed as costs and included in any judgement rendered. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to
the terms ofthe agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way 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. In witness whereof, this instrument
has been duly executed by the PRINCIPAL and Surety above named, on "2004. PRINCIPAL: GHC Shannon Valley Ranch. LLC Patrick Costanzo, Ir. Executive Vice President Notary Acknowledgment
Required N:\B&E\ENGR-PROJECTS\Tract 9505\Contract & Bonds.wpd Form Revised: 9/23/03 SURETY: Address Document Created: 7/7/22/04
LABOR AND MATERIALS BOND WHEREAS, the Town Council of the Town of Los Gatos, State of California, and GHC Shannon Valley Ranch, LLC(hereinafter designated as "PRINCIPAL") have entered
an agreement wherebyPRINCIPAL agrees to install and complete certain designated public improvements, which said agreement, dated _ __, 2004, and identified as Tract No. 9505 -Shannon
Valley Ranch, is hereby referred to and made a part hereof; and WHEREAS, under the terms ofsaid agreement, PRINCIPAL is required before entering upon the performance of the work, to
file a good and sufficient payment bond with the Town of Los Gatos to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3
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 Town of Los Gatos and all contractors,
subcontractors, laborers, material suppliers and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Code of Civil Procedure in the
sum of Five Hundred Thousand and 00/100 dollars ($500,000.00), 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 herein above 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 the TOWN 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) ofPart 4 of Division 3 of the Civil Code, so as
to give a right of action action to them or their assigns in any suit brought upon this bond. Should the condition ofthis 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 stipulates and agrees that no change, extension of time, alteration or addition to the terms of
said 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. In witness whereof, this instrument has been duly executed by the PRINCIPAL and Surety above named, on _____________,2004. Ij PRINCIPAL: GHC Shannon Valley Ranch, LLC Patrick
Costanzo, If. Executive Vice President Notary Acknowledgment Required N:\B&E\ENGR-PROJECTS\Tract 9505\Contract & Bonds.wpd Form Revised: 9/23/03 SURETY: Address Document Created: 7/22104
EXlllBIT A INSURANCE REQUIREMENTS A. MINIMUM SCOPE OF INSURANCE Coverage shall be at least as broad as: 1. Insurance Services Office form number GL 0002 (Ed. 1/73) covering Comprehensive
General Liability and Insurance Services Offices form number GL0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage
(" occurrence" form GC 0001). 2. Insurance Services Office form number CA 0001(Ed. 1/78) covering Automobile Liability, code 1 "any auto" and endorsement CA 0025. 3. Worker's Compensation
insurance as required by the Labor Code of the State of California and Employers Liability Insurance. B. BEGINNING OF WORK SUBDIVIDER shall maintain limits no less than: 1. General Liability:
$1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate
limit is used, either the general aggregate limit shall apply separately to this Project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile
Liability: $1,000,000 combined single limit per accident for bodily injury' and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required
by the Labor Code ofthe State of California and Employers Liability limits of $1,000,000 per accident. C. DEDUCTIBLES AND SELF-INSURED RETENTIONS Any deductibles or self-insured retentions
must be declared to and approved by the Town ofLos Gatos. At the option of the Town of Los Gatos, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions
as respects the Town of Los Gatos, its officers, official, employees and volunteers; or the SUBDNIDER shall procure a bond guaranteeing payment of losses and related investigations,
claim administration, and defense expenses. D. OTHER INSURANCE PROVISION The policies are to contain, or be endorsed to contain the following provision: 1. General Liability and Automobile
Liability Coverages a. The Town ofLos Gatos, its officers, official, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed
by or on behalf of the SUBDIVIDER, products and completed operation of the Contracts, premises owned, occupied or used by the SUBDIVIDER, or automobiles owned, leased, hired or borrowed
by the SUBDNIDER. The coverage shall contain no special limitation on the scope of J protection afforded to the Town ofLos Gatos, its officers, officials, employees, or volunteers. I
N:\B&E\ENGR-PROJECTS\Tract 9505\Contract & Bonds.wpd Form Revised: 9/23/03 Document Created: 7/22/04
b. The SUBDIVIDER'S insurance coverage shall be primary insurance as respects the Town of Los Gatos, its officer, officials, employees, and volunteers. Any insurance or selfinsurance
maintained by the
Town of Los Gatos, its officers, officials, employees, or volunteers shall be excess of the SUBDIVIDER'S insurance and shall not contribute with it. c. Any failure to comply with reporting
provision of the policies shall not affect coverage provided to the Town of Los Gatos, its officers, officials, employees, or volunteers. d. The SUBDIVIDER'S insurance shall apply separately
to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employers Liability Coverage
The insurer shall agree to waive all rights of subrogation against the Town of Los Gatos, its officers, officials, employees, or volunteers for losses arising form work performed by
the SUBDIVIDER for the Town of Los Gatos. 3. All Coverages Each insurance policy required by this clause shall be endorsed to state that the coverage shall no be suspended, voided, canceled
by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail return receipt required, has been given to the Town ofLos Gatos.
E. ACCEPTABILITY OF lNSURERS Insurance is to be place with insurers with a Best's rating of no less than B+. F. VERIFICATION OF COVERAGE SUBDIVIDER shall furnish the Town of Los Gatos
with certificates of insurance and with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each
insurance policy are to be signed by a persona authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms approved by the Town of
Los Gatos. Where by statute, the Town of Los Gatos's workers' compensation-related forms cannot be used, equivalent forms approved by the State Insurance Commissioner are to be substituted.
All certificates and endorsements are to be received and approved by the Town ofLos Gatos before work commences. The Town of Los Gatos reserves the right to require complete, certified
copies of all required insurance policies, at any time. G. SUBCONTRACTORS SUBDIVIDERshall include all subcontractors as insured under its policies or shall furnish separate certificates
and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. N:\B&E\ENGR-PROJECTS\Tract 9505\Contract & Bonds.wpd
Form Revised: 9/23/03 Document Created: 7/22/04