The URL can be used to link to this page

Home My WebLink AboutMINUTES - 02052002 - C10 . f Contra TO: BOARD OF SUPERVISORS Costa FROM: CARLOS BALTODANO, DIRECTOR _. County BUILDING°INSPECTION DEPARTMENT DATE:, February 5, 2002 SUBJECT: AUTHORIZATION FOR LEGAL ACTION, BETTENCOURT RANCH SUBDIVISION (DAM CONSTRUCTION COMPANY INC.), DANVILLE AREA SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS AUTHORIZE the County Counsel to take appropriate legal action,including the filing of suit, against the developer, the surety, the surety's successor, and any other responsible parties to compel the repair and stabilizationof the Fleetwood Road cul- de-sac, to obtain funds to complete the necessary repairs, and to defray the County's expenses (attorney's fees, court costs, staff'time, inspection fees, etc.). DIRECT the Clerk of the Board to mail a copy of this Order to the surety and the developer to make a formal demand against the grading band described below. FISCAL IMEAGT The estimated cost of the repairs, if the County does the work, is $125,000. 'The bond posted by the developer should cover the repair cost and all or most of the County's legal expenses. .04 CONTINUED ON ATTACHMENT: YES SIGNATURE RECOMMENDATION OF COUNTY'ADMINISTWOR RECOMMENDATION OF BOARD COMMffTEE —_,--APPROVE OTHER SIGNATURES, ACTION OF BOARD ua w =c 'k;L APPROVED AS RECOMMENDED''_. A .OTHER al VOTE OF SUPERVISORS rt �, I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS US(ASSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Carlos Baltodano(9251335-1108) ;� ATTESTED:. ' cc: County Administrator John Sweeten,Cle*oftheBoarddSupervisors County Counsel and County Administrator Community Development B rbt ;DEPUTY CBnr lbdordbetten rtranch.2 5-02 Authorization for Legal Action', Bettencourt Ranch Subdivision February 5, 2002 Page Two BACKGiRt3ULIDfREASONS FQR RECOMMENDATIONS In 1989,the County approved the Bettencourk Ranch Subdivision(Subdivision 7188), located off Camino'Tassajara in the Danville(Blackhawk)area. The subdivision was developed in several phases. Phase 5 (Subdivision ;7279; DP 3004-95) was approved by the County in 1996. As part of Phase>5, the developer (Dame Construction Company, Inc.) was required to construct a cul-de-sac on Fleetwood Road, al private road that provides access to several homes in the subdivision. The developer also was required to repair several landslides at the end of Fleetwood Road. In 1997, as required by the County Ordinance Code and the State Subdivision Map Act,the developer signed an agreement with the County to construct the cul-de-sac and furnishes security to guarantee the construction work. The security consisted of a$1,000 cash deposit and a$16,700 bond issued by Reliance'>>Insurance Company. Also in 1997, the County issued a grading permit to the developer, allowing the developer to perform the grading for the Fleetwood Road cul-de-sac and to repair the landslides in that area. As required by the County Ordinance Code, the developer furnished additional security to guarantee the grading and slide repair work. The security consisted of a rider to a $212,900 bond previously issued by Reliance Insurance Company for other grading work on the subdivision. To date,the grading and slide repair work at the Fleetwood Road cul-de-sac have not been completed by the developer or accepted by the County: During 2040 and 2001, the Building Inspection Department received complaints about the Fleetwood Read cul-de-sac from residents in Phase 5 Site visits by County Building Inspection staff confirmed that the pavement was cracking and that an adjacent landslide repair was continuing to move. During a site visit on October 11, 2000, cracks were observed ranging from 3'to 20' in length and /47 to 1"in width. During a later visit on November 5 2001, it was observed that the pavement cracks had been increasing in size. In an October 13, 2001' letter, the developer's geotechnical engineer (Youngdahl Consulting Group, Inc.) noted that the slide repair area next to the cul-de-sac was creeping downhill due to an overly-steep slope (2:1 instead of ;3:1) and water infiltration. To remedy the soil movement,the developer's engineer recommended' that an engineered'concrete retaining wall be installed on the slope. However,at the November 5, 2001 site visit,the developer's representative(Rick Dame)stated that; the retaining gall recommendation no Danger would be sufficient to fix the problem. With the above problems still unresolved, the Fleetwood Road cul-de-sac has the potential to slide out due to the unstable soil under the pavement. The soil stability and pavement cracking' at the site potentially pose an unsafe and unsatisfactory condition that the Building Inspection Department cannot ignore. As authorized in Section 716-4.1210 of the County Ordinance'Code, on December 18, 2001, the Director of Building Inspection sent a notice of default to the developer and the bonding company (see attached copy). The notice, which described the pavement cracking and soil movement problems, demanded that the area be properly stabilized and repaired, with the work beginning by January 1,,M02 and ending by January 31, 2002. So far, no repair work has been done by the developer or the bonding company. Authorization for Legal Action, Bettencourt Ranch Subdivision February 5, 2002 Page Three On December 18 2001, the Board approved Resolution No. 20011594, which authorized the County Counsel to take legal action against the developer and the bondingcompany on the agreement and the$16,700 bond for the road improvement work. Suit has been filed and now is pending in the Contra Costa County Superior Court (Contra Costa County v. Dame Construction Company, Inc., et al.; Case No. 02-00067). Since the branding business of Reliance Insurance Company'has been acquired by Travelers Casualty and Surety Company of America, the suit names Travelers as the company now responsible for the bonds described above. To enable the County Counsel to take further legal action against the developer and the bonding company on the permit'and the$212,900 gond for the grading and slide repair work, it is necessary that the Board:adopt this Order. Given the time that has elapsed since the problems were first noticed, it is recommended that the Board adapt this Carder at this time. CONSEQUENCES OF NEGATIVE ACTION If the Beard does not approve this Order at this time, the County later may be time- barred from taking legal action on the grading permit and bond. ,Suildin Inspection Contra curl*$Baitodano Dlrector of Building inspection Department Costa County Administration Building County 651 mine Street,3rd Floor,North Wing Martinez,California 94553-1295 (925)6461-2300 Fax.(925)646-1219 sty` December 18, 2001 rr BY FACSUMLE(415)392-3520 BY CERTIMD MAIL AND CERTLIMD MAIL. Travelers Casualty& Surety Co.of America, Dame Construction Company, Inc. as Administratorfor Reliance Insurance Co. 2070 San.Ramon Valley Blvd, clo Travelers Bond San Ramon,CA 94583 350 California Street, Ste, 2020 San Francisco;CA 94104 Attn: Ramona Seidman, Branch Manager Attn: Carl D. Dame, President Re Notice of Default--Grading Permit Performance Bond No.B 1.686138 Bond No.: B 1686138 Issuance Dater 9120/94 Principal: Dame Construction Company, Inc. Obligee;: Contra Costa County Surety: Travelers Casualty&Surety Company of America, as. Administrator for Reliance Insurance Company Dear Ms.Seidman and Mr. Dame: This letter gives formal notice, pursuant to Contra Costa County Ordinance Code Section 716- 4.1210, of a default in the performance of the terms and conditions of,grading permit G214727, issued to Dame Construction Company, Inc. on February 1 , 1997, for landslide stabilization in the area of the Fleetwood Drive cul-de-sac in the Bettencourt Ranch Subdivision in Danville,;' California. The grading permit required the work to be completed within one year of issuance.: Conditions of issuance of the permit included the certification by a geotechnical engineer that the soil stabilization work was satisfactorily completed in compliance with the plans and specifications. Dame Construction has failed'to abide by these 'conditions. '`'The work has not been completed and the slope is unstable and unsatisfactory. Now that we have entered the rainy season, there is'a high probability of soil movement at the Fleetwood Drive cul-de-sac,which presents a potentially unsafe condition. In order to achieve a safe and satisfactory condition, the area in question must be stabilized in accordance with the recommendations,plans and specifications of qualified geotechnical engineer and certified by ai qualified 'geotechnical engineer as complete and in accordance with those recommendations, plans and specifications. The estimated dist of these measures is $125,000 and the estimated time reasonably;necessary to complete the work is 30 days, To guarantee the grading of Fleetwood Road and soil stabilization,Dame Construction filed with the County a grading permit performance bond (Band No. B 11686138), issued by Reliance Insurance Company on September 20, 1990. We have been advised that the band is now being administered by I Travelers Casualty & Surety Company of America (Travelers"). Pursuant to County Ordinance Code Sections 716-4.1210 and 716-4,1212, the County hereby demands that Travelers, as administrator for Reliance Insurance Company, arrange for the immediate performance of the work, with the work to start no later than Janaury 1, 2002, and to continue without delay until completed. If the work will not be completed by January 31, 2002, 'Travelers' must provide to the County adequate assuranceof timely compliance. In lieu of completion of the work as set forth above, the County would be willing to consider accepting payment in the amount of $212,900 to apply toward completion of the work, and refunding any excess to Travelers,'on the condition that such payment is received by January 14, 2002. If you have any,questions regarding this matter, please contact the undersigned. Sincerely, Carlos Baltodano Director,Building Inspection Department CBLW:nr cc: Rick Dame Rickla Construction Mark DeSaulnier,District N Supervisor 149 Town and Country Drive,Ste.D. 2425 Bisso Ln.,Ste 110 Danville,CA 94526 Concord,CA 94520 Michael W.Rupprecht,Esq. "Federal iGlover,District V Supervisor 18 Crow Canyon.Court,Ste.160 315 E.Leland Ave. San Ramon,CA 94583 Pittsburg,CA 94565 Kathleen Bryant John Sweeten,County Administrator Je ldndAthens Insurance Services Contra Costa County 2552 StanwellDrive 651 Pine St,11*Floor " Concord,CA 94520 Martinez,CA 94553 John Gioia,District I Supervisor Gina Martin,Deputy Clerk of the Board 11780 San Pablo Ave.,Ste E Contra Costa County E1 CeFnto,CA 94530 651 Pine St.,Room 106 Martinez,CA 94553 Gayle B.Uilkema District Supervisor 651 Pine Street,Room 108A Linda Wilcox,Deputy County Counsel Martinez,CA 94553 Contra Costa County 651 Pine St.,9°`Floor Donna Gerber,District III Supervisor Martinez,CA 94553 309 Diablo Road Danville,CA 94526 1cb\Dame Grading Bond B 1686138 2