21-1130_LENNAR HOMES OF CALIFORNIA, INC_Grading Surety AgreementL) 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 LENNAR HOMES OF
CALIFORNIA, INC, hereinafter referred to as "Developer."
WITNESSETH
WHEREAS, City will issue Precise Grading Permit No B21-0313 to Developer to
construct certain designated improvements upon a portion of that real property located at
the comer of Del Obispo Street and Farm Road (APN: 121-182-62 & 121-182-63), San
Juan Capistrano, CA, such work being commonly referred to as THE FARM ("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. Developers Improvements Obligations. Developershall, at its sole cost and
expense, provide and furnish all labor, materials and equipmentforthe Project depicted on
the plans entitled "Precise Grading Plan forthe Farm Tract 19063 (ALL OF TTM 19063)" as
approved by the City Engineer, on November 18, 2021. 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 $1,566,042 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 letterof credit forms and certificateof deposit form are available upon
request.
3. Comoletion 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 Developer's 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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61147.021001248357412
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 forthe 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 #B21-0313 Page 3 of 10
61147.02 100124835741.2
SIGNATURE PAGE TO GRADING SURETY AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO AND
LENNAR HOMES OF CALIFORNIA, INC
IN WITNESS WHEREOF, the parties have executed this Agreement as of
November
CITY OF SAN JUAN CAPISTRANO
By:
Paul I elby, Interim Building Official
Dated: `2 1
,2021
LENN2kOF CALIFORNIA, INC
By:
Pnn ed
Title A:E . -
Approv s to Form:— ,
/3 By:
CityAtforney
Printed Name
Title
Grading Surety Agreement, Permit #821-0313 Page 4 of 10
61147.02100124875741.2
Task
EXHIBIT "A"
SCHEDULE FOR COMPLETION OF IMPROVEMENTS
1. Complete rough grading
2. Start installation of onsite Storm drain work
3. Start & Finish Soil Stabilization work
4. Curb & Gutter work
5. Walks, Railings & Fences
6. AIC Paving
Grading Surety Agreement, Permit #821-0313 Page 5 or 10
61147.02100\24835741.2
Completion Date
October 29, 2021
May 19, 2021
September 15, 2021
November 30, 2021
August 15, 2024
December 31, 2021
EXHIBIT"Bps
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) calendardays 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 winterseason and shall not
be amended except with the permission of the City.
In the event Developerdoes 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 engineerand soils engineershall 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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61147.02100124935741.2
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.
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61147.021 00124835741.2
The Farm
BOND NO. SU1177380
INITIAL PREMIUM: $3,524.001 annum
SUBJECT TO RENEWAL
GRADING SURETY AGREEMENT
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS the City of San Juan Capistrano ("City") and Lennar Homes of Caiaomia, Inc.
("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. 19063 ("the Work");
WHEREAS, the Work to be performed by Principal is more particularly set forth in
that certain Grading Surety Agreement dated 20_ ("Agreement"), which
Agreement is incorporated herein by this reference; and
WHEREAS, Principal is required by the Agreement to provide a good and sufficient
bond for performance of the Agreement, and to guarantee and warranty the Work performed
thereunder.
NOW, THEREFORE, Principal and Arch Insurance Company as surety
("Surety"), a corporation organized and existing under the laws ofthe State of Missouri , 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 (1) dollars ($1.566.042.00 )'for which amount well
and truly to be made, we bind ourselves, our heirs, executors, administrators, successors or assigns,
jointly and severally, finely by these presents. (1) One million five hundred sixty-six thousand forty-two and 001100
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 value received, 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
Grading Surety Agreement, Permit #821-0517 Page 8 of 10
61147.02100124635741.2
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.
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 191h day of November
2021 .
Lennar Homes of California, Inc., a California corporation
Principal
By: \�---- •
Vtuc President
TIV24AJ k.
(print name)
Arch Insurance Company
Surety
By:
. W
Attorney -in -Fact
Mechelle Larkin
(print name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OFEXECUTION 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#B21-0517 Page 9 of 10
61147.02100124875741.2
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 )
) ss.
COUNTY OF ORANGE )
On ldl,R 120r 23, 2021, before me, Brittnev Antonielli Notary Public, personally
appeared Brian Bencz who proved to me on the basis of satisfactory evidence to be
the person whose name is subscribed to the within instrument and acknowledged to me that he
executed the same in his authorized capacity, and that by his 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.
WITNESS my hand and official seal.
Signature; _ a�/� �� (Seal)
088fTTNEY ANTONIELLI
. Notary Public. California
Orange County
Commission d 2380329
X
•� •"• Ay Comm. F:pire5 Nov 12, 2025 `
DocuSign Envelope ID: 8856FFAGDA474C16•A3E5-06894E4E8929
Notary Acknowledgment
A notary, public or other officer completing this certificate
verifies onl the identity of the individual who sighed the
document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF
On
20_, before me,
appeared , who
Notary Public, personally
to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to prbiwithin instrument and acknowledged to me
that he/shelthey executed the same in his/her/theirauthodzed c acity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of ch the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of , e State of California that the foregoing paragraph is
true and correct. >
Signature of Notary Public
Though the information below is
and could prevent fra�i
CAPACITY CLAIMED BY , ,
❑ Individual
❑ Corporate Officer
❑ Partner(s) Jj Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/ConsZetor
❑ Other:
Signer is rep enting:
Name Of Perso ' s) Or Entitv6es)
my hand and official seal.
OPTIONAL
ulred bylaw, it may prove valuable to persons relying on the document
removalandreattachment of this form to another document.
Grading Surety Agreement, Permit #821-0517 Page 10 of 10
61147.021001248357411
DESCRIPTION OF ATTACHED DOCUMENT
CeL� 7i1.7� [1_�e�1111:77e�.T�eZiiLt► [e]�i�l��Zt] irl �a7
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 NOV 19 2021 before me, Kathy R. Mair, Notary Public
DATE Nameo Notary Public and I IN -Notary Poblic'J
personally appeared Mechelle Larkin ---------------------------------------,
)Namets) of Signer(s))
who proved to me on the basis of satisfactory evidence to be the personW whose names) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in kris/her/t4& authorized capacity(ies), and that by hWher/tkteir signature(s) on the instrument
the person(o, or the entity upon behalf of which the person(s) 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.
KATHY R. MAIR
Notary Public • California
f = Orange County
Commission 12353508[
My Comm. Expires May 22. 2025 �
v r aw•
Place Notary Seal Above
WITNESS my hand and official seal.
OPTIONAL
C
signature of Lary Public
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Number of Pages:
Signer's Name: Mechelle Larkin Signer's Name:
❑
Corporate Officer—Title(s):
❑
❑
Partner — ❑ Limited
❑ General
❑
❑
Individual ®
Attorney-in-fact
❑
❑
Trustee ❑
Guardian or Conservator
❑
❑
Other:
❑
Corporate Officer — Title(s):
Partner — ❑ Limited ❑ General
Individual ❑ Attorney -in -Fact
Trustee ❑ Guardian or Conservator
Other:
Signer Is Representing: Signer is Representing:
AIC 0000326951
This Power of Aaormy limits the acts of those named herein, and they have no authority to bind the Company mmpt in the manner and to the orient herein stared
Not valid forNote, Loan, Letter of Credit, Currency Rare, Interest Rate or Reiidendat Value Guarantees.
POWER OF ATTORNEY
Know All Persons By These Presents:
That the Arch Insurance Company, a corporation organized and existing under the laws of the State of Missouri, having its principal administrative office in Jersey City,
New Jersey (hereinafter rotated to as the "Company") does hereby appoint:
Kathy R. Mair, Mechelle Larkin and My Hua oflrvine, CA (EACH)
its true end lawful Attomey(s)in-Fact, to make, execute, seal, and deliver from the date of issuance of this power for and an its behalf as surety, and as its act and deed:
Any and all bonds, undertakings, recognisances and other surety obligations, in the penal sum not exceeding Ninety Million Dollars (90.000.000.001.
This authority does not permit the same obligation to be split into two or more bonds In artier to bring each such bond within the dollar limit of authority as set forth
herein.
The execution of such bonds, undertakings, recognizance and othersurety obligations 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 administrative office in
Jersey City, New Jersey.
This Power of Attorney is executed by authority of resolutions adopted by unanimous consent of the Board of Directors of the Company on September 15, 2020, tme 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 the Executive Vice President, a any Senior Vire President, of the Surety Business Division, or their
appointees designated in writing and filed with the Secretary, a the Secretary shall have the power and authority to appoint agents and attorneys -in -fact, and to authorize
them subject to the limitations set forth in their respective powers of attorney, to execute on behalf of the Company, and attach the seal of the Company thereto, bonds,
undertakings, recognizances and other surety obligations 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 September 15,2020:
VOTED, That the signature of the Chairman of the Board, the President, or the Executive Vice President, or any Senior Vice President, of the Surety Business Division,
or their appointee designated in writing and filed with the Secretary, and the signature of the Secretary, the seal ofthe Company, and certifications by the Secretary, may
be affixed by facsimile on arty power of allomey or bond executed pursuant to the resolution adopted by the Board of Directors on September 15, 2020, 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. In
Testimony Whereof, the Company has posed this instrument to be sigo ad s"a Is corporate seal to beaffixed by their authorized officers, thisOl th day of November,
2020
Attested and Certified rA;W C70 Arch Insurance Commpapanyy�/////-
Te
Regan IIA Shulman, Secretary a t�yt
Richard Stock, Executive Vice President
STATE OF PENNSYLVANIA SS IbINd
COUNTY OF PHILADELPHIA SS
I, Michele Tripodi, a Notary Public, do hereby certify that Regan A. Shulman and Richard Stock personally known to me to be the same persons whose names are
respectively w Secretary and Executive Vice President 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 scot and delivered the said instrument as the free and voluntary act of said corporation and as their own free and voluntary acts for the uses and purposes
therein set forth.
eu.earRunrorr veru
ttmawtxr •.%
Yf1CRDar, Nath halt
[hyNmILMttlNpW. w,4 COM Michele 7ripadi, Notary Public
My commission expires 07/312021
CERTIFICATION
1, Regan A Shulman, Secrelmy ofthe Arch Insurance Company, do hereby certify that the attached Power of Attorney dated November 20. 2020 on behalf of the
person(s) as listed above is a true and correct copy "that the sine has been in full force and effect since the date thereof and is in full force and effect at the date of
this certificate: and I do further certify that the said Richard Stock, who executed the Power of Attorney as Executive Vice President, was on the date of execution of the
attached Power ofAttomey the duly elected Executive Vice President ofthe Arch Insurance Company. NOV 19 2021
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seal ofthe Arch Insurance Company on this —day of ,
20
Regan A. Shulman, 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 bird the Company
except in the manner and to the extent herein sated
PLEASE SEND ALL CLAIM INQUIRIES RELATING TO THIS BOND TO THE FOLLOWING ADDRESS: 771omnt
Arch Insurance—Surety Division
3 Parkway, Suite 1500 Philadelphia, PA 19102 VsaA
To ver* the authenticity of this PowerofAttomey, please contattArch Imumnce Company at suretyAuthentic@archin
Please refer to the above named Attomey-in-Fart and the details of the hand to which the poweris attached.
AICPOA040120 Printed in U.S.A.