Bonding and Execution of Agreements

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Bonding

Bonding and Security amounts required will be outlined in the Fee and Bond letter provided to the developer or engineer at the completion of the plan check process. All projects installing, modifying or upgrading any portions of the Vallecitos Water District system will be required to post securities. The required posting of securities for construction of improvements include a Faithful Performance Bond and a Labor and Materials Bond. During the plan check process an engineer’s estimate must be submitted for review.

 

The amount of security required is based on 100% of the Engineer’s Estimate. Prior to final acceptance by the District’s Board of Directors, all projects will be also required to post a Warranty Bond equal to 25% of the original performance bond. Forty (40) days after final acceptance by the District’s Board of Directors the improvement bonds are released for the project. The warranty bond is held for one (1) year from the date of final acceptance. The warranty bond is then released provided there are no contractor defects or liens filed against the project.

Bonding and Security Devices Acceptable by Vallecitos Water District

Bonds
All bonding must be executed in favor of Vallecitos Water District. Bonding companies must have an acceptable rating from Keys Best Guide, be authorized to do business and have an agent for service of process in the State of California. The District accepts standard bond forms used by most bonding companies. Samples of acceptable security forms:

Cash
Cash can be deposited with the District in equal amounts, dollar for dollar, to replace the following bonds: Faithful Performance or Labor and Materials.

CD’s
Certificates of Deposit can be used for security, deposited in the name of the District. Board Approval is required.

Instruments of Credit also referred to as LOC’s – Letters of Credit

Instruments of Credit can be used on a form acceptable to the District. No substitutions or modifications of the Districts standard Instrument of Credit shall be accepted without approval of the District. Board Approval is required. Sample form: Letter of Credit

Agreements
Agreements and/or Documents necessary for Board Approval of a project are provided at the completion of Plan Check. Documents are to be signed and notarized by the appropriate parties and accepted by the District. Documents are then recorded at the County of San Diego Assessor/Recorder’s office. Recording fees may be required.

 

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