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22-0920_PEPPERTREE BEND HOA_Agenda Report_E10City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Thomas Toman, Public Works Director PREPARED BY: Joe Parco, City Engineer Jeremy Hohnbaum, Senior Civil Engineer DAT E: September 20, 2022 SUBJECT: Encroachment and Maintenance Agreement for Monument Sign within Public Rights-of-Way at the Intersection of Peppertree Bend and Calle Aspero RECOMMENDATION: Approve and authorize the City Manager to execute an Encroachment and Maintenance Agreement with the Peppertree Bend Homeowners’ Association for the construction and maintenance of a monument sign located within public rights-of-way at the intersection of Peppertree Bend and Calle Aspero. EXECUTIVE SUMMARY The Peppertree Bend Homeowners’ Association (HOA) is seeking approval for the installation of a 3’ tall, externally illuminated residential subdivision monument sign, proposed to be located within an existing landscape median at the intersection of Calle Aspero and Peppertree Bend. A location map is included as Attachment 1. The proposed location is the primary entrance to the Peppertree Bend subdivision. The HOA’s intent is to create an improved entry statement which would provide a sense of arrival for the subdivision. In addition to the proposed monument sign, the private improvements would also include enhancements to landscaping and the existing stone pilasters (that flank Calle Aspero). The existing stone pilaster located on the north side of Calle Aspero has existing subdivision signage, which would also be updated as part of the overall improvements (Attachment 2). 9/20/2022 E10 City Council Agenda Report September 20, 2022 Page 2 of 3 DISCUSSION/ANALYSIS: On August 24, 2022, the Planning Commission approved the HOA’s sign permit and application to install the proposed monument sign. The HOA also received a “sign exception allowance” for the proposed sign to be located within the public right-of-way, as the City’s Municipal Code prohibits permanent signs in the public right-of-way. The Planning Commission granted an exception to the standards in the Municipal Code as the following findings were made: (1) the sign complies with all other applicable criteria, (2) the scale of the sign will be in harmony with the architectural design for the building which it will serve, and (3) the sign will not create a hazard to other adjacent properties or tenants. To construct and maintain the proposed monument sign and supplemental improvements (hardscape and landscape) within the public right-of-way, the City must issue an Encroachment Permit and execute an Encroachment and Maintenance Agreement (Attachment 3) that requires the HOA to maintain the improvements in perpetuity, including, but not limited to, constructing the improvements themselves, maintaining landscaping, providing normal upkeep such as debris and litter removal, watering and trimming vegetation, and weed removal on the median. Staff is recommending that the City Council approve and authorize the City Manager to execute an Encroachment and Maintenance Agreement with the Peppertree Bend HOA for the construction and maintenance of the proposed monument sign to be located in the public right-of-way near the intersection of Peppertree Bend and Calle Aspero. FISCAL IMPACT: There is no fiscal impact associated with the construction of the proposed HOA improvements. The HOA will be required to pay all required encroachment permit fees. ENVIRONMENTAL IMPACT: This proposed project has been reviewed in accordance with the California Environmental Quality Act (CEQA). The City's Environmental Administrator has determined that the Project is categorically exempt from further review under the California Environmental Quality Act Guidelines 14 California Code of Regulations Section 15311, Accessory Structures. Here, the entire Project is exempt per Section 15311 because it involves the installation of a residential subdivision monument sign considered accessory to the overall subdivision. Lastly, none of the exceptions to the exemptions in State CEQA Guidelines, section 15300.2 apply. Specifically, the project: a. Is not located in a particularly sensitive environment. The site is in the center of an existing residential neighborhood where nearly every surrounding lot has been developed. b. Once the sign is constructed, there is no possibility of a cumulative impact of the same type of project in the same place over time. The project involves the construction of a single monument sign for an existing single family residential City Council Agenda Report September 20, 2022 Page 3 of 3 neighborhood. Once the sign is installed, the likelihood of a successive project (i.e., tear down and rebuild) on this site is low and probability of a cumulative impact is low. c. Is not marked by unusual circumstances. There is nothing unusual about the installation of a monument sign for a residential subdivision. d. The improvements would not damage scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. e. The improvements are not located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. If the proposed project receives final approval, a Notice of Exemption would be filed with the County Recorder’s Office within 5 days of such approval. PRIOR CITY COUNCIL REVIEW: Not applicable. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: On August 24, 2022, the Planning Commission conditionally approved a Sign Permit (SP22-017) for a monument sign to be located in an existing landscape median at the intersection of Calle Aspero and Peppertree Bend. NOTIFICATION: Peppertree Bend Homeowners’ Association ATTACHMENT(S): Attachment 1: Location Map Attachment 2: Sign Permit Plans and Hardscape & Landscape Improvement Plans Attachment 3: Proposed Encroachment and Maintenance Agreement ATTACHMENT 1, PAGE 1 OF 1 Location Map ATTACHMENT 2, PAGE 4 OF 4 Attachment 2 ATTACHMENT 2, PAGE 4 OF 4 ATTACHMENT 2, PAGE 4 OF 4 ATTACHMENT 2, PAGE 4 OF 4 61147.00310\40426060.2 RECORDING REQUESTED BY: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 AND WHEN RECORDED, MAIL TO: Maria Morris, City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Exempt from Recording Fees: Gov Code 27383 & 6103 City of San Juan Capistrano This Space for Recorder’s Use Only Title of Document: ENCROACHMENT AND MAINTENANCE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND PEPPERTREE BEND HOMEOWNERS’ ASSOCIATION REGARDING THE CONSTRUCTION AND MAINTENANCE OF A MONUMENT SIGN WITHIN PUBLIC RIGHTS-OF-WAY AT THE INTERSECTION OF PEPPERTREE BEND AND CALLE ASPERO ATTACHMENT 3, PAGE 1 OF 19 61147.00310\40426060.2 1 4849-6082-5077, v. 1 ENCROACHMENT AND MAINTENANCE AGREEMENT PARTIES AND DATE This Encroachment and Maintenance Agreement (“Agreement”) is made and entered into as of ________________ ____, ________ by and between the City of San Juan Capistrano, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, CA 92675 (“City”), and PEPPERTREE BEND HOMEOWNERS’ ASSOCIATION, a California nonprofit mutual benefit corporation, whose mailing address is 1900 E. Warner Ave., #`1P, Santa Ana, CA 90705 ( “HOA”). The City and the HOA are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. RECITALS A. The HOA is the homeowner’s association of that certain community of single- family homes located generally at ________________, San Juan Capistrano, CA 92675 (the “Community”). B. The HOA desires to construct, install, and maintain an externally illuminated single-sided monument sign (the “Sign”) at the entrance to the Community on that certain landscaped median located at Calle Aspero and Peppertree Road, which is within the public right of way (“Median” and the right of way, the “Right of Way”). The Sign and the Median are generally depicted in the Sign Plans and Proposed Hardscape Improvements attached collectively hereto as Exhibit A and incorporated herein by reference. C. Besides the Sign, the HOA seeks to perform and maintain landscaping, including the planting of vegetation and removal of existing vegetation, and removal of cobble rock border inside the Median’s curb, as well as normal upkeep such as debris and litter removal, watering and trimming vegetation, and weed removal (“Landscaping”) on the Median, which would require the HOA to enter upon the Median (the “Permitted Activities”). The HOA is currently responsible for, and performs, all landscape maintenance activities on the Median. D. On or about April 25, 2022, the Santa Margarita Water District (“SMWD”) issued Encroachment Permit No. 22-020 (“Encroachment Permit”) to Pacific Sign Center Corp., a California corporation, (“PSC”) allowing PSC, on behalf of the HOA, to install the Sign on the Median above SMWD’s underground facilities subject to certain conditions. The Encroachment Permit is attached hereto as Exhibit B and incorporated herein by reference. E. The purpose of this Agreement is to set forth the terms and conditions of the HOA’s encroachment on, installation of, and maintenance of the Sign and the Median to conduct the Permitted Activities, as required by the City. TERMS ATTACHMENT 3, PAGE 2 OF 19 61147.00310\40426060.2 2 4849-6082-5077, v. 1 1. Effective Date. Once executed, this Agreement shall be effective from the date of its recordation (“Effective Date”). This Agreement shall be recorded only after the installation of the Sign on the Median is complete and is accepted by the City. 2. Term. The term of this Agreement shall take effect upon the Effective Date and shall continue until either Party terminates this Agreement per Section 12. 3. Sign and Median Maintenance. The HOA shall maintain the Sign and the Median in accordance with the Landscape Maintenance Requirements and Standards attached hereto as Exhibit C and incorporated herein by reference, as well as in accordance with any conditions imposed by the Encroachment Permit. 4. Encroachment 4.1. Encroachment Granted. City grants to the HOA a non-exclusive right to encroach upon the Median during the term of this Agreement for the purpose of conducting the Permitted Activities. No change to the scope of Permitted Activities is allowed except upon written permission of the City’s Engineer or duly authorized representative. 4.2. Permit Application and Fee. City acknowledges and agrees that this Agreement, once executed, does not eliminate the need for the HOA to complete City’s Encroachment Permit Application. The HOA shall be required to complete and file an annual Encroachment Permit and submit applicable traffic control plan(s) in connection with conducting Permitted Activities within the Median and/or Right of Way. The City’s Encroachment Permit will be issued as a no-fee permit provided the activities are limited to routine maintenance. Any encroachment permit issued by the City does not relieve the HOA of the responsibility to obtain approval and applicable permits from SMWD or any other agency that may be impacted by the Permitted Activities. 4.3. Non-Exclusive Use. The rights granted to the HOA hereunder shall include non-exclusive access to the Median. By executing this Agreement, City does not agree to restrict the number of right-of-way permits/agreements to be executed in favor of other third parties that may cover or overlap with the Right of Way or Median. 4.4. Coordination with Other Permittees. To the extent reasonably feasible and not unduly interfering with the HOA's obligations contained herein, the HOA shall coordinate its Permitted Activities with other parties known by the HOA to be working in the City’s public rights-of-way, including the Right-of-Way and Median, from time to time. 4.5. Work Hours in the Public Right-of-Way. The HOA’s Permitted Activities shall be limited to the hours between 7:30AM and 4:30PM, Monday through Friday only, and no work on weekends or Federal Holidays except for Emergency Response Activities as described in Section 6.1 below or ATTACHMENT 3, PAGE 3 OF 19 61147.00310\40426060.2 3 4849-6082-5077, v. 1 as specifically permitted in writing by the City’s Engineer or duly authorized representative. 4.6. Standard of Care. The HOA shall use and exercise due care, caution, skill and expertise in performing all Permitted Activities under this Agreement and shall take all reasonable steps to safeguard any work site area. Any damage caused to City’s infrastructure by the HOA or its agents, employees, volunteers and contractors shall be replaced or repaired by the HOA at its sole expense to the satisfaction of the City. 4.7. Protection of Traffic. The HOA shall perform the Permitted Activities in the manner that results in the least amount of traffic disruption. The HOA shall utilize the latest edition of the Work Area Traffic Control Handbook (WATCH) to help ensure a safe work zone in connection with the performance of any Permitted Activities. 5. Failure to Perform. 5.1. Notice to Cure. 5.1.1. Should the HOA violate any provision of this Agreement or fail to perform under this Agreement in any way, the City shall provide the HOA with written notice describing the violation or failure to perform (“Notice of Violation”). 5.1.2. The HOA shall diligently work to cure the violation within ten (10) business days of the date of the Notice of Violation. The City, at its discretion, may at any time extend the time period to cure. Any work performed by the HOA within the Median and/or Right-of-Way will require an encroachment permit and traffic control measures as needed before performing said work. Work performed by the HOA within the public right of way shall only be performed by Contractors with appropriate State Licenses. Work performed by the HOA within the Right of Way and Median shall only be performed by Contractors with appropriate State Licenses. The HOA will be responsible for 100% of the repair costs within the Median, including any repair costs within public property, the public right of way, or adjacent private property that are caused or created by improper installation and/or maintenance of the Sign and/or Landscaping and any related improvements in the Median or Right of Way. 5.1.3. In the event there is a violation or correction that requires immediate attention to protect and/or prevent a public health and safety concern and/or damage to adjacent public or private property, the HOA shall diligently work to cure the violation or correction within 48 hours of notification from City. 5.2. City Performance. ATTACHMENT 3, PAGE 4 OF 19 61147.00310\40426060.2 4 4849-6082-5077, v. 1 5.2.1. If the HOA fails to cure any violation or correction per Section 5.1.2 or 5.1.3, or, following the commencement of any cure efforts, fails to diligently and in good faith continue to cure such violation to completion per Section 5.1.2 or 5.1.3, then, at the HOA’s sole expense, the City may undertake to perform the HOA’s obligations by providing written notice to the HOA. 5.2.2. The City shall invoice the HOA for the City’s costs to perform the obligations. The HOA shall pay the City’s invoice within thirty (30) days of the City’s issuance of the invoice. 5.3. Lien. If the HOA fails to cure any violation per Section 5.1 or fails to pay the City’s invoices per Section 5.2.2, then the City has the right to establish and enforce a lien or other encumbrance against the Property to recover. 6. Permitted Activities 6.1. The HOA is authorized to perform the following activities for the construction, installation, and maintenance of the Sign, and the performance, care, and maintenance of the Median: 6.1.1. Construction and Installation – Construction and installation of an externally illuminated, single-sided monument sign on approximately 15 square feet of the Median with a footing extending approximately 3-feet below the surface, including potholing existing water and sewer facilities; performance of Landscaping on the Median. 6.1.2. General Inspections – Evaluations conducted at regularly scheduled intervals to indicate the need for maintenance of the Sign and Landscaping. 6.1.3. Routine Maintenance Activities – Activities conducted at regularly scheduled intervals to maintain the appearance and integrity of the Sign and the health and appearance of the Landscaping. Landscaping shall not impede the line of site within the intersection of Peppertree Bend and Calle Aspero. 6.1.4. Corrective (Major) Maintenance Activities – Replacement or rehabilitation of the Sign and any or all of the Landscaping at the end of their useful life as well as other activities conducted to resolve major issues that are not anticipated. 6.1.5. Emergency Response Activities – Activities conducted to address public health and safety concerns arising from an emergency. 7. Compliance with Laws. The HOA's rights hereunder shall be conditioned upon the HOA’s compliance with each and every federal, state and local law, ATTACHMENT 3, PAGE 5 OF 19 61147.00310\40426060.2 5 4849-6082-5077, v. 1 regulation, standard, court decision, ordinance, rule, code, order, decree, directive, and guideline, together with any conditions and restrictions that are recorded in any official or public records with respect to the Right of Way and Median or any portion thereof, each as currently existing and as amended, enacted, issued or adopted from time to time, that are applicable to the Permitted Activities to be performed within the Median. 8. Indemnification. 8.1. Indemnification of the City by the HOA. The HOA shall defend, indemnify and hold the City, its officials, officers, employees, and agents (the “Indemnified Parties”) free and harmless from any and all liability from loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to acts, omissions, and/or operations by the HOA, its officials, officers, personnel, employees, invitees, licenses, guests, contractors, and/or subcontractors as well as its contractors’ and/or subcontractors’ officials, officers, employees, and agents on or about the Median, unless solely caused by the gross negligence or willful misconduct of the City, its officers, employees, or agents. Further, the HOA shall defend at its own expense, including reasonable attorneys’ fees, the Indemnified Parties in any legal action based upon such acts, omissions and/or operations. 8.2. The HOA’s Obligations. The HOA’s obligations under this Section 8 shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, regardless of whether or not the City has prepared, supplied, or approved any plans or for the uses allowed by this Agreement, and regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. 8.3. The City’s Rights. The City does not and shall not waive any rights against the HOA that the City may have under the indemnification provision in this Section 8 because of the City’s acceptance of any security deposits or insurance policies. 8.4. Survival. The indemnification provision in this Section 8 shall survive the termination or expiration of this Agreement. 9. Insurance. The HOA shall maintain and provide commercial general liability insurance, with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. All insurance policies shall be issued by an insurance company that is currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide. Grantee shall also maintain Worker’s Compensation Insurance for ATTACHMENT 3, PAGE 6 OF 19 61147.00310\40426060.2 6 4849-6082-5077, v. 1 its employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. A certificate of insurance evidencing the HOA’s required coverages shall be provided to the City prior to the start of any Permitted Activities under this Agreement. The City is to be named as an additional insured with an endorsement in favor of the City. The HOA agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. 10. Insurance, Indemnifications and Release: Prior to the commencement of any work pursuant to this contract, HOA (if performing work itself) or HOA contractors shall furnish to City satisfactory evidence of an insurance policy written upon a form and by a company (which meets with the approval of City) insuring City, its officers, agents, and employees against loss or liability which may arise during the work or which may result from any of the work herein required to be done, including all costs of defending any claim arising as result thereof. 10.1. Commercial General Liability 10.1.1. The HOA shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies rated A- VII or better by AM Best. 10.1.2. Coverage for Commercial General Liability insurance shall be at least as broad as the following: 10.1.2.1. Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. 10.1.3. Commercial General Liability Insurance must include coverage for the following: a. Bodily Injury and Property Damage b. Personal Injury/Advertising Injury c. Premises/Operations Liability d. Products/Completed Operations Liability e. Aggregate Limits that Apply per Project f. Explosion, Collapse and Underground (UCX) exclusion deleted g. Contractual Liability with respect to this Contract h. Broad Form Property Damage i. Independent HOA /Consultants Coverage ATTACHMENT 3, PAGE 7 OF 19 61147.00310\40426060.2 7 4849-6082-5077, v. 1 10.1.4. The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. 10.1.5. The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. 10.1.6. The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to reasonable approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. 10.2. Automobile Liability 10.2.1. At all times during the performance of the work under this Agreement, the HOA shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies rated A- VII or better by AM Best. 10.2.2. Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). 10.2.3. The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. 10.2.4. Subject to reasonable approval by the City, the automobile liability insurance policy may require deductibles (but not a self- insured retention), provided that such deductibles shall not apply to the City as an additional insured. Automobile liability limits shall be increased at the sole discretion of the City when lane closures are required for traffic control. 10.3. Workers’ Compensation/Employer’s Liability 10.3.1. HOA certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of ATTACHMENT 3, PAGE 8 OF 19 61147.00310\40426060.2 8 4849-6082-5077, v. 1 that code, and he/she will comply with such provisions before commencing work under this Agreement. 10.3.2. To the extent HOA has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the HOA shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. HOA shall require all subconsultants/subcontractors to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. 10.4. Pollution Liability 10.4.1. At all times during the performance of the work under this Agreement the HOA shall maintain Pollution Liability insurance appropriate to its profession, in a form and with insurance companies reasonably acceptable to the City and in an amount indicated herein and shall be written on a policy form coverage specifically designed to protect against any pollution generated by the HOA and it’s Contractors. 10.5. Minimum Policy Limits Required 10.5.1. The following insurance limits are required for the Agreement: Commercial General Liability $1,000,000 per occurrence and in the aggregate. $2,000,000 aggregate limit for products/completed operations. Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease Worker’s Compensation Statutory Limit Pollution Liability $1,000,000 per occurrence 10.5.2. Defense costs shall be payable in addition to the limits. 10.5.3. Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any ATTACHMENT 3, PAGE 9 OF 19 61147.00310\40426060.2 9 4849-6082-5077, v. 1 insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. 10.6. Evidence Required Prior to execution of the Agreement, the HOA shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. 10.7. Policy Provisions Required 10.7.1. HOA shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the HOA shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non- payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Ow HOA ner shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. 10.7.2. The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that HOA’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. 10.7.3. The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. HOA shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. HOA shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. ATTACHMENT 3, PAGE 10 OF 19 61147.00310\40426060.2 10 4849-6082-5077, v. 1 10.7.4. Worker’s compensation insurance coverages shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, or shall specifically allow HOA or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. HOA hereby waives its own right of recovery against City and shall require similar written express waivers and insurance clauses from each of its subconsultants/subcontractor. 10.7.5. The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the HOA from liability in excess of such coverage, nor shall it limit the HOA’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. 10.8. Qualifying Insurers 10.8.1. All policies required shall be issued by acceptable insurance companies, as reasonably determined by the City, which satisfy the following minimum requirements: Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. 10.9. Additional Insurance Provisions 10.9.1. The foregoing requirements as to the types and limits of insurance coverage to be maintained by HOA, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the HOA pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. 10.9.2. If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by HOA ATTACHMENT 3, PAGE 11 OF 19 61147.00310\40426060.2 11 4849-6082-5077, v. 1 or City will withhold amounts sufficient to pay premium from HOA payments. In the alternative, City may cancel this Agreement. 10.9.3. The City requires evidence that the HOA and their Subcontractors have insurance policies in effect throughout the duration of the Project, and the City is named as an additional insured. 10.9.4. Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. 10.10. Subcontractor Insurance Requirements. HOA shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by HOA, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. Said policy shall be in favor of HOA or its contractors and of the City, its officers, agents, and employees and shall be maintained in full force and effect during the life of this Agreement, including extensions. Said policy shall state by its terms and by an endorsement that it shall not be canceled until City shall have had at least ninety (90) days' notice in writing of such cancellation. 11. Liability of HOA: 12. The HOA hereby agrees to defend, indemnify and hold the City, its elected and appointed officials, officers, employees, and agents harmless from and against any and all injuries to and deaths of persons and injuries to property, and all claims, demands, costs, loss, damage and liability, including liability arising out of sudden, accidental, and gradual pollution events, howsoever the same may be caused and whensoever the same may appear, resulting directly or indirectly from the performance or nonperformance of any or all work to be done in and upon the subject property and the premises adjacent thereto pursuant to this Agreement, and also from any and all injuries to and deaths of persons and injuries to property or other interests and all claims, demands, costs, loss, damage, and liability, to the extent the same may be caused directly or indirectly by the HOA, the HOA 's agents, employees, contractors, and subcontractors, while engaged in the performance of said work. The HOA agrees that the use for any purpose and by any person of any and all of the streets, easements and improvements herein specified shall be at the sole ATTACHMENT 3, PAGE 12 OF 19 61147.00310\40426060.2 12 4849-6082-5077, v. 1 and exclusive risk of the HOA at all times prior to final acceptance by the City of the completed Works of Improvement thereon and therein; provided that acceptance by the City shall in no way eliminate or lessen any of the HOA's obligations or undertakings contained in this Agreement. 13. Recordation. The HOA shall cause this Agreement to be recorded with the Office of the Recorder of the County of Orange within thirty (30) days of receipt of written City acceptance of the Sign and Landscaping in the Median. 14. Amendment. This Agreement may be amended, in whole or in part, only by a written instrument executed by the Parties in the same manner as this Agreement and recorded pursuant to Section 10. No supplement, modification, and/or amendment of this Agreement shall be binding unless executed as provided in this Section 11. 15. Cancellation. The Parties may terminate this Agreement by amending it in accordance with Section 11. Either Party shall have the right to unilaterally terminate this Agreement with or without cause by giving the other Party 30 days’ advance written notice of termination. 16. Notices. All notices to be given hereunder shall be in writing and may be made either by personal delivery (effective as of the same day as delivery), nationally recognized overnight delivery (effective as of the following business day), or by registered or certified mail, postage prepaid, return receipt requested (effective as of three (3) business days after deposit into the U.S. mail). Mailed notices shall be addressed to the parties at the addresses listed below, but each party may change the address by written notice in accordance with this Section 13. To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: City Manager To HOA: PEPPERTREE BEND ASSOCIATION 1900 E. Warner Ave., #`1P Santa Ana, CA 90705 Attn: Evonne Morton 17. Attorneys’ Fees. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing party shall be entitled to receive from the other party, in addition to any other relief that may be granted, the reasonable attorneys’ fees, costs, and expenses incurred in the action or proceeding by the prevailing party. 18. Governing Law and Venue. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County. 19. No Waiver. The City’s failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or the City’s waiver of any breach hereunder, shall not relieve the HOA of any of its obligations hereunder, whether of the same or similar type. The foregoing shall ATTACHMENT 3, PAGE 13 OF 19 61147.00310\40426060.2 13 4849-6082-5077, v. 1 be true whether the City’s actions are intentional or unintentional. Further, the HOA agrees to waive as a defense, counterclaim, or setoff any and all defects, irregularities, or deficiencies in the authorization, execution, or performance of this Agreement as well as any laws, rules, regulations, ordinances, or resolutions of the City with regard to this Agreement. 20. Construction, References, and Captions. 20.1. Simple Construction. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. 20.2. Section Headings. Section headings contained in this Agreement are for convenience only and shall not have an effect in the construction or interpretation of any provision. 20.3. Calendar Days. Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. 21. Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior discussions, negotiations, understandings or agreements, either written or oral, express or implied. No alteration or variation of this Agreement shall be valid or binding unless made in writing and signed by the parties hereto. 22. Severability. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. 23. Third Parties. This Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns, and no other person or entity is a third-party beneficiary of, or has any direct or indirect cause of action or claim in connection with the Agreement or any other related document to which that person or entity is not a party. 24. Binding on Successors and Assigns. The covenants, benefits, restrictions, and obligations contained in this Agreement shall be deemed to run with the land and shall be binding upon and inure to the benefit of all successors and assigns in interest of the HOA. 25. Authority. If the HOA signs as a corporation or a partnership, each of the persons executing this Agreement on behalf of the HOA does hereby covenant and warrant that such entity is a duly authorized and existing entity, that such entity has and is qualified to do business in California, that the HOA has full right and authority to enter into this Agreement, and that each and all of the persons signing on behalf of the HOA are authorized to do so. Each party represents and warrants to the other that the execution and delivery of this Agreement and the performance of such party's obligations hereunder have been duly authorized ATTACHMENT 3, PAGE 14 OF 19 61147.00310\40426060.2 14 4849-6082-5077, v. 1 and that the Agreement is a valid and legal agreement binding on such parties and enforceable in accordance with its terms. 26. Signatures. This Agreement may be signed and dated in parts. Signatures on next page. ATTACHMENT 3, PAGE 15 OF 19 61147.00310\40426060.2 15 4849-6082-5077, v. 1 SIGNATURE PAGE TO LANDSCAPE MAINTENANCE AGREEMENT BY AND BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND LS-SAN JUAN LLC REGARDING TRACT 18148 In witness thereof, the Parties here to have executed this Agreement: City of San Juan Capistrano HOA PEPPERTREE BEND ASSOCIATION a California nonprofit mutual benefit corporation By: _____________________________ By: ______________________________ Its: ______________________________ City Manager ATTEST: By: ____________________________ By: ______________________________ Its: ______________________________ City Clerk APPROVED AS TO FORM: By: _____________________________ City Attorney ATTACHMENT 3, PAGE 16 OF 19 61147.00310\40426060.2 A-1 4849-6082-5077, v. 1 EXHIBIT A SIGN PLANS AND PROPOSED HARDSCAPE IMPROVEMENTS ATTACHMENT 3, PAGE 17 OF 19 61147.00310\40426060.2 B-1 4849-6082-5077, v. 1 EXHIBIT B SANTA MARGARITA WATER DISTRICT ENCROACHMENT PERMIT NO. 22-020 ATTACHMENT 3, PAGE 18 OF 19 61147.00310\40426060.2 C-1 4849-6082-5077, v. 1 EXHIBIT C LANDSCAPE MAINTENANCE REQUIREMENTS AND STANDARDS ATTACHMENT 3, PAGE 19 OF 19