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14-0814_TNHC SAN JUAN, LLC_Grading Surety Agreement 2,== e0/:?/G111/4t GRADING SURETY AGREEMENT THIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a municipal corporation, hereinafter referred to as the "City" and TNHC San Juan LLC a Contractor referred to as "Developer". WITNESSETH WHEREAS, City will issue Precise Grading Permit No B14-0700, and Encroachment , Permit No. E14-0056, to Developer to construct certain designated improvements which constitute a portion of that real property at the location of 32281 Del Obispo Street, San Juan Capistrano, CA, commonly referred to as the Oliva Subdivision for Tentative Tract Map (TTM) 16146 as conditioned under City Resolutions No. 05-12-20-02, as modified or amended by City Council Resolution Nos. 06-07-03-07, 06-11-21-03, 07-04-17-03, 08-09- 16-05 and 09-03-17-07 . WHEREAS, San Juan Capistrano Municipal Codes Section 8-2.08 requires the posting of financial security to secure the faithful performance for the grading and installation of improvements connected with issuance of grading permits including the construction of drainage and protection devices and any other corrective work to remove and eliminate engineering and geological hazards. WHEREAS, San Juan Capistrano Municipal Code Section 8-2.09 authorizes the Building Official to require additional bonding as security to ensure against adverse aesthetic impacts arising from incomplete grading and/or improvements from development projects which have not been completed. WHEREAS, the Building Official finds that the proposed project site is highly prominent and visible to the community, has unique topographic features or involves substantial grading of slope areas. NOW, THEREFORE, in consideration of the premises and promises hereinafter contained, City and Developer agree as follows: 1. Developer's Improvements Obligations. Developer shall, at its own cost and expense, provide all required tests, design work, equipment, materials and labor in order to make or cause to be made all those works of improvement in the Subdivision required by Title 9 Sections 9-4.101 through 9-4.405 (Subdivisions) of the City Municipal Code (hereinafter referred to as "Code") and shown or described in the improvement plans, Grading Surety Agreement, Permit#B14-0700, E14-0056 Page 1 of 7 o R/G/ Nqe specifications and cost estimates entitled "Improvement Plan Tract No. 17713 for Sewer and Water Improvements as approved by the City Engineer on 8/4/2014, and the Improvement Plan Tract No. 17713 for Street Improvements, and Improvement Plans for Street Improvements (Public) Widening of Del Obispo Street as approved by the City Engineer on 7/1/2014, collectively known as the "Oliva Precise Grading Plans." The grading permit, encroachment permit and plans, which describe all the work to be constructed pursuant to this Agreement, are on file in the office of the City's Building Official, and the costs for work are attached (Exhibit C). 2. Developer's Security. Developer shall provide a cash deposit, Certificate of Deposit or a bond by a duly authorized corporate surety. Such bonds shall be in the form prescribed by the Building Official or approved as to form by the City Attorney to secure Developer's improvement obligations required under this Agreement. The total amount of the bond shall be $2,428,000 as shown on Exhibit C, for all onsite and offsite grading improvements as approved by the City Engineer. This security shall also serve as security for restoration of the onsite and offsite areas associated with the works of improvement. A copy of the surety instrument (Performance Bond and Material and Labor Bond), as approved by the City Attorney, is attached herein. 3. Completion of Improvements. To ensure the protection of the public safety, health and welfare, Developer shall construct all said improvements in accordance with the schedule as set forth in Exhibit "A", and conditions as set forth in Exhibit "B", and as provided within the Conditions of Approval for TTM 16146. 4. Developer Default. In the event Developer does not complete the required improvements, including erosion and silt control measures within the time required, using Best Management Practices (BMP) in implementing a Water Quality Management Plan in full compliance with Orange County National Pollutant Discharge Elimination System (NPDES) Storm Water Implementation Agreement and San Juan Capistrano Municipal Code Section 8-14, or abandons the project site, or suspends work for more than twenty working days other than previously prescribed, City shall have the right to immediately declare a default and to make demand on the surety for performance. 5. Restoration of Site. San Juan Capistrano Municipal Code Section 8-2.09 allows the City to require bonding as security to ensure against adverse aesthetic impacts arising from uncompleted grading, drainage and/or improvements which includes illicit non- storm drain water discharge. The purpose of this bonding shall be to restore the property to a safe and acceptable condition if the Developer defaults. This restoration shall include but not be limited to the following: Grading Surety Agreement, Permit#B14-0700, E14-0056 Page 2 of 7 O R/G/ /1/q1 A. Dismantle and/or demolish improvements; B. Grade property to its original contours as shown on the approved grading plans. C. Remove all debris and construction materials from the site; and D. Install erosion and silt control devices, including hydroseeding, to insure a uniform vegetative cover, or equivalent stabilization measures which include the use of such Best Management Practices as blankets, fiber matrices, catch basin filters, or other erosion resistant soil coverings or treatments to satisfaction of the Director of Engineering and Building. 6. Attorney's Fees. Developer agrees to pay City such sum as the court may judge as reasonable for the legal services of an attorney representing the City in an action brought to enforce or interpret the obligations of this agreement, and such sum shall be made a part of any judgment in such action against Developer if such action is determined in favor of said City. 7. Developer's Work in Safe Condition. Developer shall perform all work in a safe workmanlike manner and shall take such precautions as may be necessary to warn and protect the public from any dangerous condition caused by the construction of said improvements. 8. Liability. Developer shall hold City, its officers, and employees harmless from any and all claims, demands, causes of action, liability or loss of any sort because of, or arising out of, the acts or omissions of Developer, his contractor, subcontractors, agents or employees in the performance of this agreement. Grading Surety Agreement, Permit#B14-0700, E14-0056 Page 3 of 7 4°041/ v4O In witness whereof, the parties have executed this agreement as of , 2014 Developer: TNHC San Juan LLC By: Thomas Redwitz (Title) COO & Partner City: Approved as2m:m: Accepted: By: City Attorney By: Building Official Hans Van Ligten Bret Caulder Grading Surety Agreement, Permit#B14-0700, E14-0056 Page 4 of 7 44;)611 In witness whereof, the parties have executed this agreement as of 414‘ 4L1 (11( , 2014 Developer: TNHC San Juan LLC By: Thomas Redwitz (Title) COO & Partner City: Approved as to Form: Accepted: By: City Attorney By: Building Official Hans Van Ligten Bret Caulder Grading Surety Agreement, Permit#B14-0700, E14-0056 Page 4 of 7 ®,Q EXHIBIT "A" /Op, ,4/4 SCHEDULE FOR COMPLETION OF IMPROVEMENTS Task Completion Date 1. Precise Grade August 2014 2. Start Sewer August 2014 3. Complete Sewer August 2014 4. Start Water August 2014 5. Complete Water September 2014 6. Start Storm Drain August 2014 7. Start Streets October 2014 8. Complete Streets November 2014 9. Final Inspection December 2014 Grading Surety Agreement, Permit#B14-0700, E14-0056 Page 5 of 7 .0O EXHIBIT "B" N"1` CONDITIONS FOR COMPLETION OF IMPROVEMENTS 1. The grading for this project shall be in strict conformance with the grading plans as well as the San Juan Capistrano Municipal Code. 2. Grading operations shall commence within fourteen (14) calendar days after issuance of Grading Permit. Winter grading will be conducted in strict accordance with the dynamic erosion and silt control plan submitted by the Developer, and approved by the City. This erosion and silt control plan reflects erosion and silt mitigation measures for expected grading conditions as the work progresses through the winter season and shall not be amended except with the permission of the City. In the event Developer does not wish to implement winter grading, or permission for winter grading is rescinded, static erosion and silt control plans reflecting current conditions of grading shall be submitted within ten (10) days of cessation of work. These plans shall: 1 . Identify all pollutant sources including sources of sediment that may affect the quality of storm water discharges associated with the construction activity. 2. Include the erosion and sediment control planting and hydroseeding to insure a uniform vegetative cover or equivalent stabilization measures which include the use of such Best Management Practices as blankets, fiber matrices, catch basin filters or other erosion resistant soil covering or treatments to the satisfaction of the City Engineer. 3. Suspension in excess of twenty (20) working days of work authorized by approved grading plans and grading permit for subject property, including erosion and sediment control measures and landscaping and irrigation, shall constitute default of this agreement. 4. The supervising civil engineer and soils engineer shall file biweekly progress reports of all grading operations with the Building Official. An interim compaction report, for that work completed at the time work is suspended for the rainy season, shall be Grading Surety Agreement, Permit#B14-0700, E14-0056 Page 6 of 7 � 0R� G/A/q filed with the Building Official. This interim report shall conform to the grading code requirements for final compaction reports. 5. Contractor shall control dust to the satisfaction of the Building Official or his deputy. During grading, Contractor shall keep water truck on site and dampen work area, grounds, and loaded trucks. 6. Grading operations suspended during the rainy season shall be resumed no later than 15 days from date of suspension termination. 7. Installation of interim erosion and sediment control devices and systems shall commence within seven (7) days after rough grade certification has been approved by the Building Official and must be completed within fifteen (15)days of rough grad certification. Final erosion and sediment controls devices, planting, landscaping and irrigation systems shall be installed prior to final inspection of the grading permit. 8. All work shall be performed in strict observation of the Hours of Operation in accordance with San Juan Capistrano Municipal Code Section 8-1 .03. 9. Contractor shall adhere to conditions of haul route permit and encroachment permit issued by the City Engineer. 10. Parking for construction crew is to be on-site. 11. Exoneration of Bonds: Bonds for this Agreement shall be transferred via endorsement upon City Approval of the Final Tract Map 17713 (a portion of TTM 16146) with a fully executed Subdivision Improvement Agreement for the Works of Improvements included within this Agreement and as restated within the Subdivision Improvement Agreement or after the 1-year warranty period has been completed for the Works of Improvement as stated within the Agreement, whichever comes first. Grading Surety Agreement, Permit#B14-0700, E14-0056 Page 7 of 7