1998-0721_ORTEGA II_Development Agreement r
DEVELOPMENT AGREEMENT FOR CONSTRUCTION OF WATER FACILITIES
THIS AGREEMENT, dated this July 21, 1998, by and between ORTEGA II, hereinafter
called "Developer", and CITY SAN JUAN CAPISTRANO, hereinafter called "City".
THIS AGREEMENT, shall be administered by the City, in accordance with Resolution No.
97-10-7-1.
WITNES SETH:
WHEREAS, Developer wishes to obtain water services from the CAPISTRANO VALLEY
WATER DISTRICT, hereinafter called "District" for property known as ORTEGA II, 27000 Ortega
Hwy., SJC, CA, and District requires the construction and dedication of water facilities by Developer
as a condition of providing said water services; and
WHEREAS, Developer has prepared and submitted to District a set of improvement plans for
said water facilities, and
WHEREAS, District desires to insure that said water facilities are installed in accordance with
District's standards and specifications.
NOW, THEREFORE, it is hereby agreed by and between Developer, City and District that:
I. CONSTRUCTION AND COMPLETION
1. Developer shall, at its sole cost and expense, construct and install within
twenty-four(24)months from the effective date of this Agreement, all of the water facilities shown and
delineated upon the improvement plans entitled "UTILITY PLAN - ORTEGA II" as approved by the
District Engineer of the District on file with said District and by reference made a part of this
Agreement as though fully set forth herein.
2. Developer shall construct said water facilities in accordance with the approved
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Development Agreement for Construction of Water Facilities
Ortega II-SP-201
July 21, 1998
plans, District's standard specifications and under City's inspection, and shall indemnify and hold
harmless all officers, employees and agents of the City and District from and against all claims,
damages, losses and expenses, including attorneys' fees, arising out of or resulting from the
performance of the work, and caused in whole or in part by any negligent act or omission of
Developer, Contractor, or any Subcontractor, anyone directly or indirectly employed by any of them,
or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by
a party indemnified hereunder.
3. If Developer has not completed the work within 365 consecutive calendar days
after the above date of this Agreement, District has the right to call the security for faithful performance
and complete the work. Any work performed after said 365 consecutive calendar days, whether by
Developer, District, or others, shall be in accordance with District's standard specifications in effect as
of the time the work is performed.
4. The security shall remain in effect for a minimum of 365 consecutive calendar
days after all the water facilities have been completed and accepted by District, and shall continue in
effect until exonerated in writing by District. It shall be incumbent upon the developer to renew the
security prior to its expiration.
II. USE OF WATER
1. Developer hereby expressly agrees that no water shall be used by Developer, or
by Contractor or any Subcontractor, for construction purposes except through a meter provided by
District. Developer acknowledges that Section 499 of the California Penal Code provides that
unauthorized use of water is a misdemeanor, and District hereby states its intent to strictly enforce said
Penal Code Section.
2. In addition to any criminal penalties, and not as a substitute therefore, District
will charge Developer, and Developer agrees to promptly pay District, $500.00 per day for unmetered
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Development Agreement for Construction of Water Facilities
Ortega II- SP-201
July 21, 1998
use of District's water by Developer, Contractor, or any Subcontractor, anyone directly or indirectly
employed by any of them, or anyone for whose acts anyone of them may be liable.
3. Temporary construction meters shall be provided to Developer by District at
the rental rate existing at the time such meters are provided. The use of "jumpers" is expressly
prohibited.
4. Developer shall notify District as soon as it is reasonably practical to install any
permanent meter, and District shall provide and install same as soon thereafter as reasonably possible.
The foregoing notwithstanding, the District may install any meter when District determines it is
desirable to do so.
III. FEES, CHARGES, AND SECURITIES
1. Developer shall, prior to the permanent water service being provided to said
property, pay District the following sums:
(a) $1,308.13 for the costs of District's plan review, inspection of
construction and the control thereof, and for the testing of materials,
which sum is based upon the estimated construction cost of$20,125.
(b) $900 for the furnishing and installation by District of all permanent
water meters, which sum is based upon the following number and size
of meter: Two 2-inch domestic meters.
2. In addition to the above sums, a surety bond to secure the faithful performance
of this Agreement in the sum of$22,100 is hereby approved.
3. When additional buildings on this property are constructed, Capital
Improvement Charges, Water Storage Charges, Meter Fees, and any other applicable charges for the
additional development shall be paid prior to additional service being provided.
IV. GUARANTEE
Developer hereby guarantees the materials and the workmanship of the water facilities
for a period ending 365 consecutive calendar days after October 4, 1997, when the water facilities were
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Development Agreement for Construction of Water Facilities
Ortega II- SP-201
July 21, 1998
acceptable in compliance with District specifications, and hereby agrees to reimburse District for all
costs associated with the accomplishment of necessary repairs to said water facilities which may have
been made by District within the aforesaid guarantee period.
V. GENERAL
1. Developer hereby offers to dedicate to District the water facilities together with
necessary easements.
2. Upon completion of the construction in accordance with the improvement
plans and specifications and the dedication of the necessary easements, District agrees to accept the
water facilities, whereupon said water facilities shall become property of District.
3. The terms of this Agreement shall inure to the benefit of and be binding upon
the successors and assigns of the parties hereto.
4. Should either party be required to enforce any of the terms of this Agreement,
it is agreed that the prevailing party shall be entitled to costs and reasonable attorneys'fees.
W. INSURANCE AND INDEMNIFICATION
1. Comprehensive General Liability
Developer shall maintain in full force and effect comprehensive general liability
coverage, including premises operations, products/completed operations, broad form property damage
and blanket contractual liability in the following minimum amounts:
• $500,000 property damage;
• $500,000 injury to one person/any occurrence/not limited to contractual period
• $1,000,000 injury to more than one person/any one occurrence/not limited to
contractual period.
2. Comprehensive Automobile Liability
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Development Agreement for Construction of Water Facilities
Ortega II-SP-201
July 21, 1998
Developer shall maintain in full force and effect comprehensive automobile
liability coverage, including owned, hired and non-owned vehicles in the following minimum amounts:
• $500,000 property damage;
• $500,000 injury to one person/any occurrence/not limited to contract.
• $1,000,000 injury to more than one person/any one occurrence/not limited to
contractual period.
3. Worker's Compensation
If Developer employs employees to perform services under this Agreement,
Developer shall obtain and maintain, during the life of this Agreement, Worker's Compensation
Employer's Liability Insurance in the statutory amount as required by state law.
These policies shall not terminate, nor shall they be canceled nor the coverage
reduced until after 30 days written notice is given to the District.
Developer shall provide an endorsement to District establishing that District
has been legally added as an additional insured to the insurance policies required under this Agreement.
Developer shall indemnify and hold District harmless from any and all claims,
demands, actions, attorney's fees, costs, and expenses based upon or arising out of errors, omissions, or
negligent acts of Developer, its associates, employees, subcontractors, or other agents while
performing services under this Agreement. In the event an action is commenced by a party to this
Agreement against any other party or parties hereto to enforce its rights or obligations arising from this
Agreement, the prevailing party in such action, in additional to any other relief and recovery awarded
by the court, shall be entitled to recover all statutory costs plus reasonable attorney's fees.
VII. CITY BUSINESS LICENSE
Developer will maintain a business license to do business in the City of San Juan
Capistrano.
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Development Agreement for Constriction of Water Facilities
Ortega II-SP-201
July 21, 1998
VIII. INDEPENDENT AGENT
At all times during the term of this Agreement, Developer shall be an independent
agent and shall not be an employee of the District. District shall have the right to control Engineer only
insofar as the results of Developer's services rendered pursuant to the Agreement; however, District
shall not have the right to control the means by which Developer accomplishes services rendered
pursuant to this Agreement.
IX. INDEMNITY
Developer shall be responsible for all injuries to persons and for damages to real or
personal property of the District, caused by or resulting from any activity or operation of Developer, its
employees or its agents during the progress of or connected with the rendition of services hereunder.
Developer shall defend and hold harmless and indemnify District and all officers and employees of the
District from all costs and claims for damages to real or personal property or personal injury to any
third party resulting from the activity of itself, employees or its agents.
X. DEVELOPER NOT AN AGENT
Except as District may specify in writing, Developer shall have no authority, express or
implied, to act on behalf of the District in any capacity as an agent. Developer shall have no authority,
express or implied, pursuant to this Agreement, to bind District to any obligation.
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Ortega II-SP-201
IN WITNESS WHEREOF, the parties hereto have executed this Agreeme consisting of
seven pages, on the above date.
SUBDIVIDER CITY O AN . �► STRAND
ORTEGA II By:
C/O S. Alan Schwartz& Associates ► s OR
1100 Irvine Boulevatd, Suite 324
Tustin, CA 92780
Ph. (714) 771-2554
The S. Alan& Jacqueline F. .wartz Family Trust Attest: 41
CIT
By: Arief
/�; APPROVED AS TO F•RM:
S. Alan Sc ' artz, Co-Trus,
By:
C I 's'ATTORNEY
ate
(Notary Acknowledgement .
The Steve and Diane Hufstedler Revocable Trust
By: ✓/�/ ( --702'ss,�,f
Steve Hufstedler, Co-Trust
L 1' ILENE PMA FISHER
Date Signed � , ` Commisron# 1172018
No ory Public-California I
j,..7 Oro nge County
My Comm.Expres Feb 1,2002
(Atteeh Notary Acknowledgement)/0‘'
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, before me, ,
the undersigned, a Notary Public in.--and for said Sate, person-
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- . - _ _ -- - proved to me on the basis of satis-
factory evidence) to be the person whose names)ares
subscribed to the within instrumen and acknowledged to me that
ephetttresy executed the sam- in - - - authorized
capacity 4'" -4W, and that by f lrer-f-t eir .signature(e on the
instrument.—the person(-5-)-7-or the entity upon behalf of which the
person(s) acted, - executed the instrument.
WITNESS my hand and official seal. 41101fr
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