22-0505_LS-SAN JUAN LLC SEALAND HOMES_Grading Surety AgreementORIGINAL
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 LS -SAN JUAN LLC
LANDSEA HOMES, hereinafter referred to as "Developer."
WITNESSETH
WHEREAS, City will issue Precise Grading Permit No B21-1365 to Developer to
construct certain designated improvements upon a portion of that real property located on
Tentative Tract Number 18148 in San Juan Capistrano, CA, San Juan Capistrano, CA,
such work being commonly referred to as Tirador ("Project").
WHEREAS, San Juan Capistrano Municipal Code Section 8-2.08 requires the
posting of financial security to secure the faithful performance for the grading and
installation of related 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 Project depicted on
the plans entitled "PRODUCTION PRECISE GRADING PLAN" as approved by the City
Engineer, on April 27, 2022. The grading 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.
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61147.02100124835741.2
2. Developer's Security. Developer shall provide a cash deposit, irrevocable
letter of credit, certificate of deposit or a bond by a duly authorized corporate surety subject
to the approval of the City Attorney, or as approved by the City Engineer, to secure
Developer's improvement obligations required under this Agreement ("Security").
The amount of the Security shall be $1,449,334 for all onsite grading improvements
as approved by the City Engineer. This Security shall also serve as security for restoration
of the Project site. A copy of the performance bond form, as approved by the City Attorney,
is attached hereto as Exhibit "C" and incorporated herein by this reference. Copies of
approved irrevocable letter of credit forms and certificate of deposit form are available upon
request.
3. Completion of Improvements. To ensure the protection of the public safety,
health and welfare, Developer shall construct the Project in accordance with the schedule
as set forth in Exhibit "A", and the conditions as set forth in Exhibit "B". Exhibits "A" and "B"
are attached hereto and incorporated herein by this reference.
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
(20) working days without written approval of the City, City shall have the right to
immediately declare a default and to make demand on Developers surety for performance
of all obligations under this Agreement.
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 incomplete grading, drainage and/or improvements which includes illicit non -
storm drain water discharge. The purpose of this security shall be to restore the property to
a safe and acceptable condition in the event 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
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61147.02100@4835741.2
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.
E. Protection and repair of existing public street, water, sewer and storm
drain system(s).
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 the 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 Project.
8. Liability. City, its officials, officers, employees, agents, and volunteers shall
not be liable for any injury to persons or property occasioned by reason of the acts or
omissions of Developer, its agents or employees in the performance of this Agreement.
Developer further agrees to protect, indemnify, and hold harmless City, its officials, officers,
employees, agents, and volunteers from any and all claims, demands, causes of action,
liability or loss of any sort, because of, or arising out of, the alleged acts or omissions of
Developer, its agents or employees in the performance of this Agreement, including all
claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or
in part, the design or construction of the Project. This indemnification and agreement to
hold harmless shall extend to injuries to persons and damages or taking of property
resulting from the design or construction of said Project, and in addition, to adjacent
property owners as a consequence of the diversion of waters from the design or
construction of drainage systems, streets and other improvements.
SIGNATURES ON FOLLOWING PAGE
Grading Surety Agreement, Permit #1321-1365 Page 3 of 10
61147.02100\24835741.2
SIGNATURE PAGE TO GRADING SURETY AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO AND
LANDSEA HOMES
IN WITNESS WHEREOF, the parties have executed this Agreement as of
2022
CITY OF SAN JUAN CAPISTRANO LS -SAN JUAN LLC
By: � Fv 7 \ - C44 Trrw By:_�
Chi Tran, Inte im Building Official
Printed Name OIV1v1(M U Mj+%kh/
Dated:
Title N i'
Approved s to Form:
By: 3=:!::—' By:
City 4orney
Printed Name
Grading Surety Agreement, Permit #B21-1365 Page 4 of 10
61147 0210024835741 2
EXHIBIT "A"
SCHEDULE FOR COMPLETION OF IMPROVEMENTS
Task Completion Date
TASKS
ANTICIPATED COMPLETION DATE
Complete Rough Grading:
5/16/22
Onsite Storm Drain:
Complete
Start & Finish Soils Stabilization work:
Complete
Curb & Gutter:
7/21/22
Walks, Railings & Fences:
7/29/22
A/C Paving
8/15/22
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61147.02100124835741.2
EXHIBIT "B"
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 sixty (60) 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 unless Developer has received approval from the City authorizing a
suspension in excess of twenty (20) days.
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
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61147.02100\24835741.2
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 unless the Developer has
received approval from the City authorizing a suspension in excess of fifteen (15)
days.
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 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 Security: Developer's security shall be reduced to 90% upon signoff
of precise grading permit. The remaining 10% of the security given by Developer
shall not be released until the expiration of the warranty period and until any claims
filed during the warranty period have been settled. Nothing herein shall limit the
City's rights or the Developer or surety's obligations under this Agreement.
12. Warranty Period: 1 year from permit signoff by City.
Grading Surety Agreement, Permit #B21-1365 Page 7 of 10
61147.021001248357412
EXHIBIT "Cr
BOND NO. PB03010408601
INITIAL PREMIUM: $7,247.00
SUBJECT TO RENEWAL
GRADING SURETY AGREEMENT
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS the City of San Juan Capistrano ("City") and LS -San Juan LLC
("Principal'), have executed an agreement for work consisting of, but not limited to, the furnishing
of all labor, materials, tools, equipment, services, and incidentals for all grading and installation of
related improvements for Tract Map Nos. Tentative Tract Number 18148 ("the Work");
WHEREAS, the Work to be performed by Principal is more particularly set forth
in that certain Grading Surety Agreement dated May 5 , 2022 ("Agreement"), which
Agreement is incorporated herein by this reference; and
WHEREAS, Principal is required by the Agreementto provide a good and sufficient
bond for performance of the Agreement, and to guarantee and warranty the Work performed
thereunder.
NOW, THEREFORE, Principal and Philadelphia Indemnity Insurance Company as surety
("Surety"), a corporation organized and existing under the laws of the State of Pennsylvania_, and
duly authorized to transact business under the laws of the State of California, are held and firmly
bound unto City in the sum of one Minion Four Hundred• dollars ($, 44933400 for which amount well
and truly to be made, we bind ourselves, our heirs, executors, administrators, successors or assigns,
jointly and severally, firmly by these presents.
'Forty Nine Thousand Three Hundred Thirty Four and no/100
THE CONDITION OF THIS OBLIGATION is such, that if Principal, his or its heirs,
executors, administrators, successors or assigns, shall in all things stand to and abide by, and well
and truly keep and perform the covenants, conditions, agreements, guarantees, warranties and
provisions in the Agreement and any alteration thereof made as therein provided, on his or their part,
to be kept and performed at the time and in the manner therein specified, and in all respects
according to their intent and meaning, and shall indemnify and save harmless City, its officers,
employees, and agents, as therein stipulated in the Agreement, then this obligation shall become null
and void; otherwise it shall be and remain in full force and effect.
As part of the obligation secured hereby, and in addition to the face amount specified
therefor, there shall be included costs and reasonable expenses and fees, including reasonable
attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs
and included in any judgment rendered.
Surety, for valuereceived, hereby stipulates and agrees that no change, extension of
time, alteration, or addition to the terms of the Agreement, or to any plans, profiles, and
specifications related thereto, or to the Work to be performed thereunder, shall in any way affect its
obligations on this bond, and it does hereby waive notice of any such change, extension of time,
alteration, or addition to the terms of the Agreement, or to the Work or to the specifications.
Grading Surety Agreement, Permit #B21-1365 Page 8 of 10
61 W.0210=4835741,2
IN WITNESS WHEREOF, the seal, if any, and signature of the Principal is hereto
affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly
authorized Attorney -in -Fact at Irvine, CA , this 28th day of April ,
2022 .
LS -San Juan LLC
Principal] �v
By. 6, , f
Aa/.`Psrestde A W Vj tUktr
(print name)
Indemnity Insurance Company
name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION BY
PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF
ATTORNEY TO LOCAL REPRESENTATIVES OF THE SURETY MUST BE
ATTACHED TO THIS BOND.
Grading Surety Agreement, Permit #B21-1365 Page 9 of 10
6114792100\24835741.2
Notary Acknowledgment
A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ORANGE
On May 2, 2022, before me, Terri L. Piligian, Notary Public, personally
appeared Shannon Whittaker, who proved to me on the basis of satisfactory
evidence to be the person(S) whose name are subscribed to the within instrument and acknowledged to me
that he/� hey executed the same in his/h heir authorized capacity(Ks), and that by their signature
on the instrument the person(?), or the entity upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct.
TERRI L. PIlID1AN WITNESS my hand and official seal.
Notary Public - Call
Ora County f
CO—Mim 0 2271997 —
N7 Comm. Cwnet Dec 14, 2021 �.
Signature of Notary Public
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Signer(s) Other Than Named Above
Grading Surety Agreement, Permit #1321-1365 Page 10 of 10
61147.02100\248357412
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CERTIFICATE OF ACKNOWLEDGMENT
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identity of the individual who signed the document to which this certificate
is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of Orange }
On OR 2 8 2022
before me, Gina L Garner, Notary Public
personally appeared Janina Monroe
who proved to me on the basis of satisfactory evidence to be the person¢p) whose
names) is/exe subscribed to the within instrument and acknowledged to me that
Ne/she/t�W executed the same in Nis/her/tileir authorized capacity0esk and that by
hisdher/k=ir signature(* on the instrument the personas}, or the entity upon behalf of
which the person(( acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
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GINA LGARNER
WITNESS my hand and official seal. Notary Public •Canu
rnia
rIWodiccares mOky
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PHH.ADELPHIA INDEMNITY INSURANCE COMPANY
One Bala Plaza, Suite 100
Bala Cynwyd, PA 19004-0950
Power of Attorney
KNOW ALL PERSONS BY THESE PRESENTS: That PHILADELPHIA INDEMNITY INSURANCE COMPANY (the Company), a corporation organized and
existing under the laws of the Commonwealth of Pennsylvania, does hereby constitute and appoint JANINA MONROE, THOMAS G. MCCALL, TIMOTHY J.
NOONAN, MICHELLE HAASE AND MARTHA BARRERAS OF LOCKTON COMPANIES, LLC, its true and lawful Attomey-in-fact with full authority to execute
on its behalf bonds, undertakings, recognizances and other contracts of indemnity and writings obligatory in the nature thereof, issued in the course of its business and
to bind the Company thereby, in an amount not to exceed 550.000.000.
This Power of Attorney is granted and is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of
PHILADELPHIA INDEMNITY INSURANCE COMPANY on the W of November, 2016.
RESOLVED: That the Board of Directors hereby authorizes the President or any Vice President of the
Company: (1) Appoint Attorneys) in Fact and authorize the Attorney(s) in Fact to execute
on behalf of the Company bonds and undertakings, contracts of indemnity and other
writings obligatory in the nature thereof and to attach the seal of the Company thereto; and
(2) to remove, at any time, any such Attomey-in-Fact and revoke the authority given. And,
be it
FURTHER
RESOLVED: That the signatures of such officers and the seal of the Company may be affixed to any
such Power of Attorney or certificate relating thereto by facsimile, and any such Power of
Attorney so executed and certified by facsimile signatures and facsimile seal shall be valid
and binding upon the Company in the future with respect to any bond or undertaking to
which it is attached.
IN TESTIMONY WHEREOF, PHILADELPHIA INDEMNITY INSURANCE COMPANY HAS CAUSED THIS INSTRUMENT TO BE SIGNED AND ITS
CORPORATE SEALTO BE AFFIXED BY ITS AUTHORIZED OFFICE THIS 5TH DAY OF MARCH, 2021.
js`aO�n1i��SG4
iii 192% vm5
(Seal)
7oh OJomti, President&CEO
Philadelphia Indemnity Insurance Company
On this 5'" day of March, 2021 before me came the individual who executed the preceding instrument, to me personally known, and being by me duly sworn said that he
is the therein described and authorized officer of the PHILADELPHIA INDEMNITY INSURANCE COMPANY; that the seal affixed to said instrument is the
Corporate seal of said Company; that the said Corporate Seal and his signature were duly affixed.
Opmeen@m Mcka IeyKola1y !7%Zn8 al
Vmasmontsonzle.NountIr Oe
Notary Public:
Montgome
sNovur
MY eomMsaton exphes November3, 2074
Edward Sayago, Corporate Secretary
Commiseton number 7330391
PHILADELPHIA INDEMNITY INSURANCE COMPANY
Namur,pW,ryryeieAeeetlanenolNetaNe
residing at: Bala Cynwyd, PA
My commission expires: November 3, 2024
1, Edward Sayago, Corporate Secretary of PHILADELPHIA INDEMNITY INSURANCE COMPANY, do hereby certify that the foregoing resolution of the Board of
Directors and the Power of Attorney issued pursuant thereto on the 5m day March, 2021 are true and correct and are still in full force and effect. I do further certify that
John Glomb, who executed the Power of Attorney as President, was on the date of execution of the attached Power of Attorney the duly elected President of
PHILADELPHIA INDEMNITY INSURANCE COMPANY.
In Testimony Whereof I have subscribed my name and affixed the facsimile seal of each Company this 28th day of Apfll 2022
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Edward Sayago, Corporate Secretary
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PHILADELPHIA INDEMNITY INSURANCE COMPANY
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