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1998-643648 (2)~ 1307. DOC _ 199 0643648 OCT 06 1998 3:24 Pi" i When Recorded Mail To: ) OFFICIAL RECORDS SAS! DIED CUTY RECORDER'S OFFICE District Clerk ) GREGORY J. SMITH! COllidTY RECORDER San Dieguito Water District ) FEES: 11.0 505 So. Vulcan Ave. ) Encinitas, CA 92024 Y 1998-0643648 j NOTICE OF COMPLETION ~od Assessor's Parcel No. 256-040-62 to 71 Agreement No. A-0028 1. Beachwalk 10, LLC, did on the 14th day of July, 1997, enter into an "Agreement to Improve Water Facilities" with the San Dieguito Water District. The Agreement detailed the requirements for the construction and installation of certain water improvements. 2.' Said Agreement, including the plans and specifications for said improvements, is on file in the Office of the Clerk of the Board of Directors. 3. Said improvements were completed by the current owner, Beachwalk 10, LLC, and accepted by the San Dieguito Water District Board of Directors on the 26th day of August, 1998. 4. Subdivision Improvement Bond No. SD00011965 from Frontier Pacific Insurance Company in the amount of $22,679.25 may be released at this time. The District will retain Certificate of Deposit No. 1051491624 from Pacific National Bank in the amount of $7,559.75 which shall be released at the end of the one-year warranty period. 5. All requirements of said Agreement have hereby been satisfied except for warranty. 6. Neither acceptance of said improvements by the Board of Directors nor this Notice constitutes a waiver of any defects in the work of the construction or installation of said improvements. Dated: 'a0 -g 2 SAN DIEGUITO WATER DISTRICT Clerk of the Board f.\mi sc\notcomp 8. doe 1308 I, Deborah Cervone, Clerk of the Board for the San Dieguito Water District, a political subdivision of the City of Encinitas, County of San Diego, State of California, which is the owner of the public work described within the Notice of Completion executed by said San Dieguito Water District, do hereby certify that I have read the same and know the contents thereof and that the facts therein stated are true to the best of my own knowledge. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. I make this verification for and on behalf of the San Dieguito Water District. Date: 40i A -4-1 A _koi 4 '1 La-)A (7' eborah Cervone, Clerk of the Board STATE OF CALIFORNIA) ) ss County of San Diego) On this ~ day of 19J , before me, the undersigned, a Notary Public in and for said State, IYersonally appeared Deborah Cervone, personally known to me to be the person who executed the within instrument as Clerk of the Board of the San Dieguito Water District, and acknowledged to me that she executed it in behalf of the San Dieguito Water District pursuant to its by-laws or a resolution of the District. WITNESS my hand and official seal. Randa G. Milljour Comm. #1033151 NOTARY PUBLIC-CALIFORNIA a SAN DIEGO COUNTY F My Comm Exp Jan. 6, 1999 Y¢ ~.y. fbYWiRMldrkW-=~6.i.ru.Y 4r6Ys@+_"r!~~N1r4+AM1?-i~Vti Notary P4 ` is CITY OF ENCINITAS SAN DIEGUITO WATER DISTRICT AGENDA REPORT Meeting Date: August 26, 1998 TO: Board of Directors roFtVOUR RECORDS p=rom CityCtetk VIA: auren M. Wasserman, District Manager Bob Nelson, Public Works Director FROM: SDWD Engineering & Planning Department 4x$Uictor Graves, Engineer and Planning Supervisor IiWBill O'Donnell, Water Utility Planner SUBJECT: Consideration of Acceptance of Public Water Improvements and Authorization to File a "Notice of Completion" for a 10-Lot Subdivision Developed by Beachwalk 10, LLC, Located Along Hygeia Avenue, APNs 256-040-62 to 71. BACKGROUND: On July 14, 1997, the San Dieguito Water District entered into an "Agreement to Improve Water Facilities" (A-0028) with Beachwalk 10, LLC, owner of property located along Quail Gardens Drive. The Agreement detailed the requirements for the construction and installation of certain public water improvements. ANALYSIS: The water improvements were installed in accordance with District approved plans and specifications, under District inspection. District staff has no objections to filing the "Notice of Completion". A 25-percent retention of security will be held for one year following the Notice to cover guarantee and warranty. FISCAL AND STAFF IMPACT: Future expenses will be incurred for maintenance of the new water improvements. Funds to cover the cost of maintenance are collected through the sale of water. RECOMMENDATION: Accept public water improvements and authorize the District Manager to file a "Notice of Completion" for a 10-lot subdivision developed by Beachwalk 10, LLC, located along Hygeia Avenue, APNs 256-040-62 to 71. Recording requested by: When Recorded Mail To: District Clerk ) San Dieguito Water District ) 505 S. Vulcan Avenue ) Encinitas, CA 92024 ) WAS RECORDED ON 21-J~1L-3rd; 10PU'E T UMBER 11997-03462?'. PROW C E 1 a i# HU REORDER SAN DIEGO i TY EACC'O R'iw OFFI ICE SPACE ABOVE FOR RECORDER'S USE LIEN COVENANT REGARDING REAL PROPERTY: IMPROVEMENTS REQUIRED AS CONDITION ON FINAL APPROVAL OF SUBDIVISION OF REAL PROPERTY. Assessor's Parcel No. 256-040-31 Project No.: TM 90-091 W.O. No.: N/A A. Beachwalk 10. LLC a California limited liability comipany ("SUBDIVIDER" hereinafter) is the owner of real property which is commonly known as APN 256-040-31 ("PROPERTY" hereinafter) and which,is described as follows: See Attachment A which is attached hereto and made a part hereof. B. The tentative subdivision of the PROPERTY was approved with the final approval subject to certain conditions requiring the construction of improvements by SUBDIVIDER. SUBDIVIDER has applied for final approval of the subdivision but has not constructed the required improvements. In consideration of the final approval of the subdivision of the PROPERTY by the San Dieguito Water District g:sdwd\eng\forms\liencov.doc ("DISTRICT" hereinafter), SUBDIVIDER hereby covenants 'and agrees for the benefit of DISTRICT, to do the following: See Attachment B which is attached hereto and made a part hereof. C. This Covenant shall run with the.land and be binding upon and inure to the benefit of the future owners, encumbrances, successors, heirs, personal representatives, transferees and assigns of the respective parties. D. SUBDIVIDER agrees that SUBDIVIDER's duties and obligations under this Covenant are a lien upon the PROPERTY. Upon notice and opportunity to respond; DISTRICT may add to the property tax bill of the PROPERTY any past due financial obligation owing to DISTRICT by way of this Covenant. E. If either party is required to incur costs to enforce the provisions of this Covenant, the prevailing party shall be entitled to full reimbursement of all costs, including reasonable attorneys' fees, from the other party. F. Failure of SUBDIVIDER to comply with the terms of this Covenant shall constitute consent to the filing by DISTRICT of a Notice of Violation of Covenant. g:sdwd\eng\forms\liencov.doc G. Upon SUBDIVIDER's satisfactory completion of. SUBDIVIDER's duties and obligations contained herein, SUBDIVIDER may request and DISTRICT shall execute a Satisfaction of Covenant. H. By action. of the Board of Directors, DISTRICT may assign to a person or persons impacted by the performance of this Covenant, the right to enforce this Covenant against SUBDIVIDER. g:sdwd\eng\forms\liencov.doc ACCEPTED-AND AGREED. SUBDIVIDER Dated z 3 y'7 eachwalk 10, LLC a California limited By: TRC Development Corporation a California Corporation managing member (Notarization of SUBDIVIDER signature is attached.) SAN DIEGUITO WATER DISTRICT Dated :11(i (r) (Notarization not required). by 3 au en M. Wasserman District Manager g:sdwd\eng\forms\liencov.doc } STATE OF CALIFORNIA }ss. COUNTY OF d1? 4-y6ZF } On _23 (p 9 7 before me, .44/4CA ? 74 av. aX-M-- personally appeared , personally known to me (o n to be the person(,a`) whose name) is/I= subscribed to the within instrument and acknowledged to me that he/s*u fw?executed the same in his/h er authorized capacity(k~s), and that by his/be; eir signature/ on the instrument the person() or the entity upon behalf of which the persona acted, executed the instrument. WITNESS my hand and official seal. Signature OFFICiAL SEAL r f 0 7= TH~ 0 NOTARY Puwc cAuFOMM fA COO MM M=0 (This area for official notarial seal) Title of Document Date of Document Other signatures not acknowledged No. of Pages 3008 (1/94) (General) Mref A-iron Tifin i--nno `T AMERI ATTACHMENT "A" LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO AND IS DESCRIBED AS FOLLOWS: THE NORTHERLY 239.88 FEET (MEASURED'ALONG THE WESTERLY LINE) OF. THE FOLLOWING DESCRIBED LAND; THAT PORTION OF LOT 9, OF LEUCADIA ACRES, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF NO. 1704, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE 5, 1918, DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTH LINE OF SAID LOT 9 WITH THE WEST LINE OF SOUTH COAST PARK ANNEX, ACCORDING TO THE MAP THEREOF NO. 1788, FILED MARCH 29, 1924, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG SAID WEST LINE OF SOUTH COAST PARK ANNEX NORTH 15.48' WEST 479.21 FEET TO THE ORIGINAL CENTER LINE OF DAPHNE STREET AS SHOWN ON MAP NO. 570 OF THE TOWN OF LEUCADIA, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE ALONG SAID CENTER LINE OF DAPHNE STREET SOUTH 74'17' WEST 380.72 FEET; THENCE NORTH 15'48' WEST 479.77 FEET TO AN INTERSECTION WITH THE NORTH LINE OF SAID LOT 9; THENCE ALONG SAID NORTH LINE 74'17' EAST 380.77 FEET TO THE WEST LINE OF THE SOUTH COAST PARK ANNEX; THENCE ALONG SAID WEST LINE SOUTH FEETCONTINUING 451THENCE 15'42' EAST 28.43 FEET SOUTH AN5P,N$LE~POINT; TRUE ALONG SAID WEST LINE SO POINT OF BEGINNING. ATTACHMENT B TO LIEN COVENANT REGARDING REAL PROPERTY: IMPROVEMENTS REQUIRED AS CONDITION ON FINAL APPROVAL OF SUBDIVISION OF REAL PROPERTY. PROJECT NO. TM90-091 SUBDIVIDER'S DUTIES AND OBLIGATIONS SUBDIVIDER: Beachwalk 10. LLC Tract or Parcel Map Number :.TM90-091 Name of Subdivision: Beachwalk 1.0 PROJECT REQUIREMENTS 1.01 No facilities will be installed prior to the acceptance by the District: A) Good and Sufficient Security. B) Acceptable Certificate of Insurance. 1.02 Developer to provide compaction testing per the requirements of the San Dieguito Water District. 1.03 Developer to provide for construction staking and surveying for the proposed water facilities. 1.04 SUBDIVIDER shall, at SUBDIVIDER'S expense, obtain all necessary permits and licenses for the construction of the water g:sdwd\eng\forms\liencov.doc improvements and give all necessary notices and pay all'fees and taxes required by law. 1.05 All public water facilities shall be installed by a Class A or Class C-34 licensed contractor. 1.06 The plans provided for in this "Covenant" conform to the current standards of the DISTRICT. The SUBDIVIDER will be required to conform to the standards applicable on the date upon which construction is commenced on the development if construction is not commenced within six months of the date of the execution hereof by the DISTRICT. 1.07 SUBDIVIDER shall convey to DISTRICT easements, using the DISTRICT Form of Easement covering the property in which the water facilities are located at all instances where the facilities are not located in a dedicated street. Owner shall have his Engineer provide DISTRICT with a legal description and a 8 1/2" x 11" plat of easements. 1.08 SUBDIVIDER agrees at SUBDIVIDER's own cost and expense to furnish all the labor, equipment and materials to perform and complete, in accordance with the plans and specifications and to the satisfaction and approval of the District Engineer, all of the improvements referred to below: g:sdwd\eng\forms\liencov.doc A) 4" PVC Main 12 01f $ 3,240.00 B) 8" PVC Main 18 01f $ 9,000.00 C) 6" Gate Valve lea $ 900.00 D) 8" Gate Valve lea $ 1,700.00 E) 1" MAR lea $ 1:400.00 F) 2" Blow-off lea $ 750.00 G) Fire Hydrant lea $ 3,500.00 H) Connect to Main lea $ 1.000..00 I) Water Service 1 0ea $ 6.000.00 J) loo Contingencies $ 2,749.00 Total Cost Estimate: $ 30.239.00 1.09 IMPROVEMENT SECURITY: A) 100% of Cost Estimate 1.10 MISCELLANEOUS COSTS: $ 30,239.00 $ -0- \O .1.11 CAPACITY CREDIT: (OFFSETS NEW CAPACITY FEES ONLY) Account Numb er SDWD E11CWA 131 A) E559803 $ 2.000.00 $ 5 6 0 5/8" me ter B) 7048894 $ 10.400.00 $ -88 -m 2" me ter D) $ $ Total Capacity Credit$<12.400.00>$<-97L> 1.12 SDWD METER FEES: Installa tion Capacity I'D A) 3/4" meter 10ea $ 1.600 .00 $ 20,000.00 B) D) E) Capacity Credit ) ( 0 $ $ w $ $ y' (Refer to Sec. 1.11) $<12.400.00> Totals $ 1,600.00 $ 7.6.00.00 Total Meter Fees: $ 9,200.00 c._ 4 I✓ 42 0 a 3 - . k -a3. g:sdwd\eng\forms\liencov.doc 1.13 SDCWA CAPACITY FEES: A) 3/411 meter 10ea Capacity ~ $ 00 B) $ C) $ D) $ Capacity Credit (Refer to Sec. 1.11) $<-9;~1=-a0> - Total Capacity Fees: - YY„ 1.14 CAPACITY FEE: (FIRE) A) $ .K B) $ Total Capacity Fees: $ -0- 1.15 INSPECTION DEPOSIT: $ 1.000.00 1.16 DEPOSITS & FEES: Engineering Fees $ -0- . SDWD Meter Fees $ 9.200.00 SDCWA Capacity Fees $ 5.761.00 Fire Capacity Fees $ -0- Inspection Deposit $ 1.000.00 *TOTAL ESTIMATED DEPOSITS & FEES REQUIRED: $ 15,961.00 1.17 The water meter fees including installation and capacity, are established from time to time by the Board of Directors of the DISTRICT and the San Diego County Water Authority. The SUBDIVIDER will by required to conform to the installation and capacity fees which are applicable on the date of payment. Construction will not be allowed to commence until all water fees have been received.' g:sdwd\eng\forms\liencov.doc 1. 18 The above figures for deposits are estimates only and may vary accordingly. Upon completion of installation,- cost will be computed and billing-or refund will be issued to SUBDIVIDER. 1.19 In the event a 90-day period elapses from the date of recordation of the Covenant, the above estimated deposits and fees must be revised and are subject to condition. of agreement with -DISTRICT. 1.20 Filing of the Notice of Completion shall not be accomplished until the following requirements have been complied. with: A) All work has been completed in accordance with the plans and specifications, all gate wells have been set flush with the street surface, and meter boxes set to finish grade; B) A set of original plans (sepia prints), corrected to conform with the work as constructed, has been submitted to the DISTRICT. 2.0 PROGRESS OF WORK 2.1 Time is of the essence with this Covenant. SUBDIVIDER shall commence substantial construction of the improvements required by this Covenant not later than May 22 1999 and shall complete the improvements no later than May 22. 2001. In the event good cause g.:sdwd\eng\forms\liencov.doc I exists, as determined by the District Engineer, 'the time for commencement of construction or completion of the improvements hereunder may be extended. Any such extension may be granted without notice to SUBDIVIDER's Surety or Sureties, if any, and shall in no way affect the validity of this Covenant or release the Surety or Sureties on any security given for the faithful performance of this Covenant. The District Engineer shall be the sole and final judge as to whether or not good cause has' been shown to entitle SUBDIVIDER to an extension. As a condition of such extensions, the District Engineer may require SUBDIVIDER to furnish new security guaranteeing performance of this Covenant, as extended, in an increased amount as necessary to compensate for any increase in construction costs as determined by the District Engineer. 2.2 If any of the public improvements are to be constructed or installed on land not owned by SUBDIVIDER, no construction or installation shall be commenced prior to the acquisition and acceptance by DISTRICT of appropriate property interests. SUBDIVIDER shall pay the actual costs of acquisition of such property interests. 2.3 SUBDIVIDER shall,. at SUBDIVIDER's expense, obtain all necessary permits and licenses for the construction of the improvements and give all necessary notices and pay all fees and taxes required by law. g:sdwd\eng\forms\liencov.doc 2.4 SUBDIVIDER shall. notify the District Engineef in writing at least 15 days prior to the commencement of work -hereunder. No construction work shall begin until authorized by DISTRICT. 2.5 SUBDIVIDER shall not be entitled to obtain occupancy permits for the buildings constructed on any 'lot created by the subdivision until all required improvements have been provided to the satisfaction of the District Engineer. 2.6 SUBDIVIDER shall at all times maintain safe construction facilities, and provide safe access, for inspection by DISTRICT, to all parts of the work and to the shops wherein the work is 'in preparation. 2.7 SUBDIVIDER shall give good and adequate warning to the public to each and every existing danger relating to the construction of the improvements, and shall protect the public from such dangers. 3.0 TTY*SPECTTONZACCEP'T'ANCE OF IMPROVEMENT'S 3.1 The District Engineer or his duly authorized representative, upon request of SUBDIVIDER, shall inspect, at SUBDIVIDER's expense, the improvements herein agreed to be constructed and installed by SUBDIVIDER. If determined to be in accordance with applicable DISTRICT standards and the other terms of this Covenant, the District Engineer shall approve the improvements and recommend the acceptance of the g:sdwd\eng\forms\liencov.doc public improvements by DISTRICT through resolution of the DISTRICT Board of Directors. 3.2 The SUBDIVIDER agrees to pay for each inspection of the improvements required by the District Engineer. 3.3 Approval of the. improvements and acceptance of the public improvements by District, shall not constitute a waiver by DISTRICT of any defects in the improvements. 3.4 Until such time as the improvements required by this Covenant are fully completed by SUBDIVIDER, approved by the District Engineer and the public improvements are accepted by DISTRICT, SUBDIVIDER will be responsible for the care, maintenance, repair and replacement of such public improvements. 4.0 GUARANTEE/WARRANTY 4.1 ONE YEAR. SUBDIVIDER hereby guarantees and warrants the public improvements constructed pursuant to this Covenant for a period of one year after final acceptance of said work to include design, work, labor and materials furnished. If within the one year period, any public improvement or part of any public improvement furnished, installed or constructed, or caused to be furnished, installed or constructed by SUBDIVIDER, fails to fulfill any of the requirements of this Covenant or otherwise fails to function to the satisfaction of' the DISTRICT, SUBDIVIDER shall without delay and without any cost to g:sdwd\eng\forms\liencov.doc DISTRICT, repair, replace or reconstruct any failing part or parts of the public improvement. 4.2 TEN YEARS. For ten years following the acceptance by DISTRICT of the public improvements, SUBDIVIDER shall remain obligated to cure all identified defects in the design, construction, materials of the public improvements. 5.0 SECURITY 5.1 FOR CONSTRUCTION OF IMPROVEMENTS A. Prior to the "sale or transfer of all or any portion of this Subdivision, or prior to the issuance of any development permits for this Subdivision, SUBDIVIDER shall furnish to DISTRICT good and sufficient security in the form of a cash deposit, a letter of credit or other security as approved by the District Engineer in the amount of 1000 of the then-current estimate of construction costs of the improvements to assure faithful performance of this Covenant. B. In the event that changes, alterations or additions to the improvement plans and specifications or to the improvements add 100i or more to the original estimated costs of the improvements, SUBDIVIDER shall provide additional security in a form satisfactory to DISTRICT in an amount equal to 1000 of the total estimated increase in the construction cost of the improvements. The amount of the g:sdwd\eng\forms\liencov.doc additional security may be adjusted by the amount of work completed and any prior, partial releases of security. 5.2 FOR ONE YEAR GUARANTEE /WARRANTY. SUBDIVIDER shall furnish to DISTRICT good and sufficient security, in the form of a cash deposit, letter of credit or other security as approved by the District Engineer, in the amount of 25% of the estimated total cost of the public improvements, to secure SUBDIVIDER's guarantee and warranty specified herein for a period of one year following the acceptance by DISTRICT of the public improvements. 6.0 CURING OF DEFAULTS 6.1 In the event that SUBDIVIDER fails to perform any duty or obligation imposed by this Covenant, SUBDIVIDER hereby authorizes DISTRICT, at DISTRICT's option, to perform such duty or obligation twenty (20) days after DISTRICT mails written notice of default to SUBDIVIDER and SUBDIVIDER fails to cure such default. SUBDIVIDER agrees to pay the actual costs of such performance by DISTRICT. The security posted by SUBDIVIDER pursuant to this Covenant may be used by DISTRICT for the completion of such performance, but shall not limit SUBDIVIDER's liability. 6.2 In the event of SUBDIVIDER'S uncured default, DISTRICT may take over the work and prosecute the same to completion, by contract or by any other method DISTRICT may deem advisable, for g:sdwd\eng\forms\liencov.doc the account and at the expense of SUBDIVIDER. SUBDIVIDER shall be liable to DISTRICT for the actual costs or damages occasioned DISTRICT thereby. Without liability for so doing, DISTRICT may take possession of the construction site and the work. In completing the work, DISTRICT may utilize such materials, appliances, plants and other property belonging to SUBDIVIDER as may be'on the site of the work and necessary therefore. 6.3 Should the exigencies of the case require repairs, replacements, or work to be done before SUBDIVIDER can be notified and given seven days to perform, DISTRICT may, at DISTRICT's option and without liability, make the necessary repairs or replacements or perform the necessary work and SUBDIVIDER shall pay to DISTRICT the actual costs of so doing. 7.0 HOLD HARMLESS 7.1 SUBDIVIDER agrees to indemnify and hold DISTRICT and DISTRICT's officers, officials, employees and agents harmless from, and against any and all liabilities, claims, demands, causes of action, losses, damages and costs, including all costs of defense thereof, arising out of, or in any manner connected directly or indirectly with, any acts or omissions of SUBDIVIDER or SUBDIVIDER's agents, employees, subcontractors, officials, officers or representatives. Upon demand, SUBDIVIDER shall, at its own expense, defend DISTRICT and DISTRICT's officers, g:sdwd\eng\forms\liencov.doc officials, employees and agents, from and against any'and all such liabilities, claims, demands, causes of action, losses, damages and costs. 7.2 SUBDIVIDER's obligation herein includes, but is not limited to, alleged defects in the plans, specifications and design of the improvements; but does not extend to liabilities, claims, demands, causes of action, losses, damages or costs that arise out of a defect in the plans, specifications or design that is a result of a change required by DISTRICT to the SUBDIVIDER's proposed plans, specifications or design so long as such change is objected to, in writing, by the SUBDIVIDER, and the writing is filed with the District Engineer more than ten days prior to the commencement of work. 7.3 SUBDIVIDER's obligation herein includes, but is not limited to, alleged defects in- the construction of the improvements; alleged defects in the materials furnished in the construction of the improvements; alleged injury to persons or property; alleged inverse condemnation of property or a consequence of the design, construction, or maintenance of the work or the improvements; and any accident, loss or damage to the work or the improvements prior to the acceptance of same by DISTRICT. g:sdwd\eng\forms\liencov.doc 7.4 By approving the improvement plans, specifications and design; by inspecting or approving the improvements; or by accepting the public improvements, DISTRICT shall not. have waived the projections afforded herein to DISTRICT and DISTRICT's officers, officials, employees and agents. or diminished the obligation of SUBDIVIDER who shall remain obligated in the same degree to indemnify and hold DISTRICT and DISTRICT's officers, officials, employees and agents, harmless as provided above. 7.5 SUBDIVIDER's, obligation herein does not extend to liabilities, claims, demands, causes of action, losses, damages or costs that arise out 'of DISTRICT's intentional wrongful acts, DISTRICT's violations of law, or DISTRICT's sole active negligence. 8.0 INSURANCE 8.1 The SUBDIVIDER shall obtain and maintain a policy of motor vehicle liability, public liability, general liability and property damage insurance from an insurance company approved by DISTRICT and authorized to do business in the State of California, in an insurable amount of not less than one million dollars ($1,000,000.00) for each occurrence. The insurance policy shall provide that the policy shall remain in force during the life of this COVENANT and shall not be canceled, terminated, or allowed to g:sdwd\eng\forms\liencov.doc expire without thirty (30) days prior written notice to DISTRICT from the insurance company. 8.2 DISTRICT shall be named as an additional insured on SUBDIVIDER's,policies. 8.3 SUBDIVIDER shall provide a Certificate of Workers, Compensation insurance to the DISTRICT. 8.4 SUBDIVIDER shall furnish certificates of said insurance to DISTRICT prior to commencement of work under this COVENANT. 9.0 NOTICES 9.1 Any notices to be given under this COVENANT, or otherwise, shall be served by certified mail. 9.2 For the purposes hereof, unless otherwise provided in writing by the parties hereto, the address of DISTRICT and the proper person to receive any such notice on its behalf is: District Engineer San Dieguito Water District 505 S. Vulcan Avenue Encinitas, CA 92024 and the address of SUBDIVIDER and the proper person to receive any such notice on its behalf is: . TRC Development Corporation 26440 La Alameda, Suite 370 Mission Viejo, CA. 92691 Attn: Scott F. Redsun President g:sdwd\eng\forms\liencov.doc 10 . 0 SUBDIVIDER' S CERTIFICATION OF AWARENESS OF IMMIGR_ATTON REFORM AND CONTROL ACT OF 1986 SUBDIVIDER certifies that SUBDIVIDER is aware of the requirements of the Immigration Reform and Control Act of 1986 (8 USC 1101-1525) and will comply with these requirements, including'. but not limited to verifying the eligibility for employment of all agents, employees, subcontractors and consultants that are included in, satisfy the duties and obligations contained herein. 11.0 PREVAILING WAGES 11.1 SUBDIVIDER has been alerted to the requirements of. California Labor Code section 1770 et seq., which would required the payment of prevailing wage rates and the performance of other requirements if it were determined that this Covenant constitutes a public works contract. SUBDIVIDER has also been advised and understands that the Office of the Attorney General of the State of California has rendered an Opinion (No. 86-803) concluding that prevailing wages must be paid by a private developer where a public agency retains control over construction of the project and the facilities 'are ultimately dedicated to the public agency. SUBDIVIDER has further been advised that the California Department g:sdwd\eng\forms\liencov.doc ~ r of Industrial Relations presently disagrees with -the position taken by the office of the Attorney General in Opinion No. 86-803. 11.1 It shall be the sole responsibility of the SUBDIVIDER to determine whether to pay prevailing wages for any or all work required by this Covenant. As a material part of this Covenant, SUBDIVIDER agrees to assume all risk and liability arising from SUBDIVIDER's decision not to pay prevailing wages for work required by this Covenant. 11.2 As a further material part of this Covenant, SUBDIVIDER agrees to hold harmless and indemnify the DISTRICT and its officers, employees, consultants, and agents from any and all claims, liability, loss, costs, damages, 'expenses, fines, and penalties of whatever type or nature, including all costs of defense and attorney's fees, arising from any alleged failure of the SUBDIVIDER, or SUBDIVIDER's contractors or subcontractors, to comply with the prevailing wage laws of the State of California. If the DISTRICT or any of the indemnified parties are named as a party in any dispute arising from the failure of SUBDIVIDER or SUBDIVIDER's contractors or subcontractors to pay prevailing wages, SUBDIVIDER agrees that the DISTRICT and the other indemnified parties may appoint their own independent counsel, and SUBDIVIDER agrees to pay all attorney's fees and defense costs of g:sdwd\eng\forms\liencov.doc the DISTRICT and the other indemnified parties as• billed, in addition to all other damages, fines, penalties, and losses incurred by the DISTRICT and the other indemnified parties as a result of the action. 12.0 GENERAL PROVISIONS 12.1 Neither SUBDIVIDER nor any of SUBDIVIDER's agents or contractors are or shall be considered to be agents of DISTRICT in connection with the performance of SUBDIVIDER's duties and obligations under this Covenant. 12.2 Sale or other disposition of the PROPERTY will not relieve SUBDIVIDER from the duties and obligations set forth herein. 12.3 SUBDIVIDER shall provide the improvements as an independent contractor and in. pursuit of SUBDIVIDER,s independent calling, and not as an employee of DISTRICT. SUBDIVIDER shall not be under control of the DISTRICT except as to the result to be accomplished. SUBDIVIDER may confer with DISTRICT as required to perform this Covenant. 12.4 No verbal agreement or conversation with any officer, official, agent or employee of DISTRICT, either before, during or after the execution of this Covenant, shall effect or modify any of the terms or obligations herein contained g:sdwd\eng\forms\liencov.doc