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06-1213_WHISPERING HILLS, LLC_Grading Surety Agreement* ORIGINAL 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 Whispering Hills, LLC a California Corporation (General Partnership, Limited Partnership, California Corporation, etc.) referred to as "Developer". WITNESSETH WHEREAS, City will issue a Grading Permit to Developer to construct certain designated improvements which constitute a portion of that real property at the location of Tract 16634 commonly referred to as Whispering Hills - East f ani nn WHEREAS, San Juan Capistrano Municipal Codes Section 8-2.08 requires the posting of financial security to secure the faithful performance and labor and materials 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 sole cost and expense, provide and furnish all labor, materials and equipment for the construction of grading improvements as approved by the City Engineer. The grading permit and plans which describe all the work to be constructed per this agreement are on file in the office of the City's Building Official, 0 L)ORIGINAL 2. Developer's Security. Developer shall provide a cash depositor a bond by a duly authorized corporate surety, subject to the approval as to form of the City Attorney, or as approved by the City Engineer, to secure Developers improvement obligations required under this agreement. The amount of the bond shall be $ 1,330,000.00 for all onsite grading improvements as approved by the City Engineer. This security shall also serve as security for restoration of the site. A copy of the surety instrument, as approved by the City Attorney, is attached as Exhibit "A". 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 "B", and the conditions as set forth in Exhibit "C. 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: 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 ORIGINAL as blankets, fiber matrices, catch basin filters, or other erosion resistant soil coverings or treatments to satisfaction of the Director of Engineering and Buildings 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 anyjudgment in such action against Developer if such action is determined in favor of said City. 7. Developers 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. In witneesSs whereof, the parties have executed this agreement as of December 13, 20 06 at San Juan Capistrano, California. Developer By: (Signee) Dennis Gage (Title) Principal Approvedaeto Forgg �V By: khn Shaw City Attorney City of San Juan Capistrano By: Sam Shoucair Senior Engineer VORIGINAL EXHIBIT "B" SCHEDULE FOR COMPLETION OF IMPROVEMENTS Completion Date ,3- 31-07 07 Task Rough Grade Certification Landscape Irrigation Landscape Planting 0 EXHIBIT "C" CONDITIONS FOR COMPLETION OF IMPROVEMENTS ORIGINAL 1. The grading for this project shall be in strict conformance with the approved grading plans as well as the San Juan Capistrano Municipal Code. 2. Grading operations shall commence within fourteen (14) calendar days after issuance of a 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. Except as specified in item " " below, suspension in excess of twenty (20) working days of work authorized by the 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 �� ORIGINAL 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 grade certification. Final erosion and sediment control 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. • 0 Z) ORIGINAL Bond No. SU5022196 Premium: $13,300.00 PERFORMANCE BOND 7 KNOW ALL MEN BY THESE PRESENTS, that whispering Hills, r.r.0 as principal (hereinafter called "contractor", and Arch Insurance Company as Surety (hereinafter called "Surety"), are held and firmly bound 'unto the City of San Juan Capistrano, as oblige (hereinafter called . acityl, in the amount of One Million Three Hundred Thirty Thousand Dollars and 00/100. Dollars ($ 1,330,000.00 ) for payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, fairly by these presents. WHEREAS, contractor has, by written agreement - dated entered Into a (describe agreement): Whispering Hills - East Canyon Tract 16634 - Grading Bond which contact is, by reference; made a part hereof. NOW, THEREFORE, the ' conditlon of this obligation is such that, if contractor shall promptly and faithfully perform said agreement then this obligation shall be null and void.; otherwise it shall remain In full force and effect. Surety waives whatever legal right it may have to require that a demand be made first against the Contractor in the event of default. BE IT FURTHER RESOLVED, that: 1. As a part of the obligation secured hereby, and in addition to the face amount specified, there shall be included costs and reasonable expenses .and fees, Including reasonable attorney's fees, Incurred by the City In successfully enforcing such obligation, all to be taxed as costs and Included in any judgment rendered. . 2. Said Surety, for value received, hereby stipulates and agrees that no change, or extension of time, alteration, or modification of the contract documents, or of the work to be performed thereunder, shall in any way affect Its obligation or this bond, and. it does hereby waive the notice of any such change., extension of time, alteration or modification of the contract documents or of work the be performed thereunder, D ORIGINAL Executed this 7th day of December 20 06, At Irvine ,.Califomla, Whispering Hills, LLC, a Delaware limited Liability Company By: Concorde Development, L.P., a California limited partnership B{¢Ife�reintiaayn4riti1ls, LL W� a afi ornia corpora on, enera D. GEMMY CanrNsskn • 1642242 Ha1my lhimc • camomla Orange County jQWC0M.=F9b2l1.201 APPROVED AS TO FORM: 04", * John 111. Shaw, City Attomey / Aje=e� /I 4NOTARIZATION AN15 Arch Insurance"Company SURETY Janina Monroe, Attorney -in -Fact CALIFORNIAALL-PURPOICKNOWLEDGMENT ORIGINAL State of Ca 7 i fornia County of Orange On DEC 0 " 2006 before me, Paris Shahabit Notary Public Name and TNe of officer (e.g.. 'Jane Doa. Notary PUNIC' personally appeared aanim Monroe Names) of Signers) Qx personally known to me – OR – ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged to me that he/she/they executed the PAats sHAtlAet same in his/her/their authorized capacity(ies), and that by CaMrnlsslon # 1572409 z his/her/their signature(s) on the instrument the person(s), _ dotory Public ' Ca1110rn1a _ CO:Myorange county or the entity upon behalf of which the person(s) acted, Apr 24, 2009 executed the instrument. Comm•ptres WITNES hand and offici Signature of Notary Pubic OPTIONAL Though the information below is not required by law, it may prove valuable to persons retying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Individual ❑ Corporate Officer ❑ Title(s): ❑ Partner - ❑ Limited ❑ General ® Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Top of Thumb here Signer Is Representing: BO -1133 9/97 Number of Pages: Signer's Name: ❑ Individual ❑ Corporate Officer ❑ Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Top of thumb hem • i ORIGINAL CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ��� ss. County of�KJ On //, ;WG before me, - ss, , Date arae and Title of Officer (e.g., 'Jane Doe, Notary Public") personally appeared D. C-EMlpy Convnyrga • 1642242 Noloy ft6ft • Cawcnm a MWge CovNy - 6MCamtovil 211 2D1 Names) of Signer(s) ersonally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above 'd • -- Signature of Notary Publi OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Title or Type of Document: _ Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Individual ❑ Corporate Officer—Title(s): ❑ Partner —❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Top of thumb here Number of Pages: Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner —❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER 0 2004 National Notary Association • 9350 De Soto Ave., P O. Box 2402 • Chatsworth, CA 91313-2402 Item No, 5907 Reorder: Call Toll -Free 1-600-8]6-662] 10. 0POWER OF ATTORNEY 0 L) ORIGINAL, Know Al Men By These Presents: That the Arch Insurance Company, a corporation organized and existing under the laws of the State of Missouri, having its principal office in Kansas City, Missouri (hereinafter referred to as the'Company`) does hereby appoint Victoria M. Campbell, Thomas G. McCall and Janina Monroe of Irvine, CA (EACH) Christine Marotta of Chicago, IL its true and lawful Attomey(s)-rin-Fact, to make, execute, seal, and deliver from the date of issuance of this power for and on its behalf as surety, and as its act and deed: Any and all bonds and undertakings EXCEPTION: NO AUTHORITY is granted to make, execute, seal and deliver bonds or undertakings that guarantee the payment or collection of any promissory note, check, draft or letter of credit This authority does not permit the same obligation to be sprit into two or more bonds in order to bring each such bond within the dollar limit of authority as set forth' herein. The Company may revoke this appointment at any time. The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said Company as fully and amply to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at its principal office in Kansas CitYAjs,Ap6p i yb5t This Power of Attorney is executed by authority of resolutions adopted by unanimous consent of the Board of Directors of the Company on March 3, 2003, true and accurate copies of which are hereinafter set forth and are hereby certified to by the undersigned Secretary as being in full force and effect "VOTED, That the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, or the Secretary shall have the power and authority to appoint agents and attomeys-in-fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, reoognizances, contracts of indemnity and other writings, obligatory in the nature thereof, and any such officers of the Company may appoint agents for acceptance of process." This Power of Attorney is signed, sealed and certified by facsimile under and by authority of the following resolution adopted by the unanimous consent of the Board of Directors of the Company on March 3, 2003: VOTED, That the signature of the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, and the signature of the Secretary, the seal of the Company, and certifications by the Secretary, may be affixed by facsimile on any power of attorney or bond executed pursuant to the resolution adopted by the Board of Directors on March 3, 2003, and any such power so executed, sealed and certified with respect to any bond or undertaking to which it is attached, shall continue to be valid and binding upon the Company. DOML0013 00 03 03 Page 1 of 2 Printed in U.S.A. In Testimgn g ( Ccr ; eny µr =�"-man`. W � signed and i porate seal to be affixed by thdir autharize� rk # i+� - day or April . 20 05 Attested and Certified iheoed Martin J. Ni ecretary STATE OF NEW YORK SS COUNTY OF NEW YORK SS Arch Insurance Company Edward M.T s Ice President I Peter J. Caileo, a Notary Public, do hereby certify that Edward M. Titus and Martin J. Nilsen personally known to me to be the same persons whose names are respectively as Vice President and Secretary of the Arch Insurance Company, a Corporation organized and existing under the laws of the State of Missouri, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they being thereunto duly authorized signed, sealed with the corporate seal and delivered the said instrument as the free apvoluntary act said corporation and as their own free and voluntary acts for the uses and purposes therein set forth. /j R r PETER J. CALLEo, ESC. Notary PUNIC, State of New York No. 02CA6109338 Pe r J. Nota blit Ql':IMsd in New York County Commissfon Expires May 3, zoos My commiss - expires 5-03-2008 CERTIFICATION I, Martin J. Nilsen, Secretary of the Arch Insurance Company, do hereby certify that the attached Power of Attorney dated on behalf of the person(s) as listed above is a true and correct copy and that the same has been in full force and effect since the date thereof and is in full force and effect on the date of this certificate; and I do further certify that the said Edward M. Titus, who executed the Power of Attorney as Vice President, was on the date of execulion of the attached Power of Attorney the duly elected dice President of the Arch Insurance Company. IN TESTIMONY %^!HEREOF, I have here_-,.n.M s_bs•xibed rr:y name anda the corpora l of th� e Arch Insurance Company on this day of en 20 : Martin J. Nil , Secretary This Power of Attorney limits the acts of those named therein to the bonds and undertakings specifically named therein and they have no authority to bind the Company except in the manner and to the extent herein stated. PLEASE SEND ALL CLAIM INQUIRIES RELATING TO THIS BOND TO THE FOLLOWING ADDRESS: Arch Contractors & Developers Group 135 N. Robles Ave., Ste. 825 Pasadena, CA 91101 00ML0013 00 03 03 Page 2 of 2 Printed in U.S.A.