23-0222_IN-N-OUT BURGERS_Grading SuretyGRADING 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 In -N -Out Burgers,
hereinafter referred to as "Developer."
WITNESSETH
WHEREAS, City will issue Precise Grading Permit No B22-0705 to Developer to
construct certain designated improvements upon a portion of that real property located at
31791 Del Obispo St, San Juan Capistrano, CA, such work being commonly referred to as
In -N -Out Burger Restaurant ("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 forthe Project depicted on
the plans entitled "IN -N -OUT BURGER RESTAURANT—GRADING, DRAINAGE, STORM
DRAIN, AND UTILITY PLAN" as approved by the City Engineer, on 02/16/23. 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.
Grading Surety Agreement, Permit #B22-0705 Page 1 of 11
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 $1,605,000 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 Defauit. 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) consecutive 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, to the extent necessary:
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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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.
9. Force Majeure. Any prevention, delay or stoppage due to strike, lockouts,
labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes
therefor, failure of power, governmental restrictions, judicial orders, riots, insurrection,
enemy or hostile governmental action, terrorism, civil commotion, fire or other casualty,
epidemic, and other reason of a similar or dissimilar nature beyond the reasonable control
of the party obligated to perform ("Force Majeure"), shall excuse the performance by such
party for a period equal to any such prevention, delay or stoppage and the period for the
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performance of any act shall be extended for the period of the delay. Force Majeure shall
excuse the performance by that party for a period equal to the prevention, delay or
stoppage; provided the party prevented, delayed or stopped shall have given the other
party written notice thereof within thirty (30) days of such event causing the prevention,
delay or stoppage. Delays or failure to perform resulting from lack of funds or financial
inability shall not be deemed delays beyond the reasonable control of a party and shall not
constitute Force Majeure.
SIGNATURES ON FOLLOWING PAGE
Grading Surety Agreement, Permit #B22-0705 Page 4 of 11
SIGNATURE PAGE TO GRADING SURETY AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO AND
IN -N -OUT BURGER
IN WITNESS WHEREOF, the parties have executed this Agreement as of
t %r vq ry 2 2
CI7ae
SIN JUA"PISTRANO
By /
�.atr #�, Building Official
Dated: 07171 1-2-,
Approved as to Form: _
Jeffrey Bal'.}..nrJer, City Attorney
2023
IN -N -OUT B ER
By,
Printed Name A-R�,l Cx^
Title DwwrrMe-7w +rkEoo, R.*. cif u6h-
Grading Surety Agreement, Permit #B22-0705 Page 6 of 11
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. A/C Paving
Completion Date
5/1/23
6/1/23
2/1/24
2/11/24
2/11/24
2/11/24
Grading Surety Agreement, Permit #B22-0705 Page 6 of 11
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) consecutive 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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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 10% 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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