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2003-434064RECOR6114 REQUEfiTED BY When Recorded Mail To: ) District Clerk ) San Dieguito Water District ) 505 So. Vulcan Ave. ) Encinitas CA 92024 1 For the Benefit of the District DOC(., 2003-043400 P01 m PR 1-5v 2003 OFFICIAL RECORDS S OFFICE SAN DIEGO COUNTY RECORDIERRECgRDER GREGORY J. SMITHS COUNTY pO FEES:' NOTICE OF COMPLETION Agreement No AN S) 0-12 Assessor's Parcel No. 254-613-03 & 254-614-03 1VIay 1999 enter , 1. Carltas Company, a California Limited Partnership, LLC, did on the 6th day of al Approval on Finled the into a "Lien Covenant Regarding Real Property: Improvements Required as Condition ent detai main of Subdivision of Real Property" with the San Dieguito Water District. fThe eet of Se PvC Las Fter lores in 112 De L requirements for the construction and installation of 976 feet of 16 and co along with new services and appurtenances, within the Quail Gardens Drive and Pas the City of Encinitas. is on file in tb Said Covenant, including the plans and specifications for said improvements' 2. Office of the Clerk of the Board of Directors. 3. Said improvements were completed by the owners and accepted by the San Dieguito W o District Board of Directors on the 28th day of February, 2000. taro sect will re 4. Security in the amount of $89,658.75 maybe released at this time. The Dasanty he .o in the amount of $29,886.25, which shall be released at the end of the one-year ty 5.' All requirements of said Covenant have hereby been satisfied except for waan Notie constl e Neither acceptance of said improvements b the Board of Directors nor this 6. warv 'er of any defects in the work of the construction or installation of said impr4o7e1"ents. SAN DIEGUITO WATEF- DIS_r_F JC_V Clerk of the Board I, Deborah Cervone, Clerk of 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: O STATE OF CALIFORNIA) ) ss eborah Cervone, Board Clerk County of San Diego ) 1 C~ On this Q~O day of before me, the undersigned, a Notary Public in and for said Stat, personally appeared Deborah Cervone, personally known to me to be the person who executed the within instrument as Board Clerk 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 Board. WITNESS my hand and official seal. OFFICIAL SEAL r • RANDA G. MILLJOUR NOTARY PUBLIC-CALIFORNIA e COMM. NO. 1204250 SAN DIEGO COUNTY R MY COMM. EXP. JAN. 6, 2003 Notary Publi CITY OF ENCINITAS SAN DIEGUITO WATER DISTRICT AGENDA REPORT Meeting Date: June 28, 2000 TO: VIA: Board of Directors Kerry L. Miller, Disti Lin H. Wurbs, Public 'rom 01 DS FROM: SDWD Engineering & Planning Department Bill O'Donnell, Water Utility Planne SUBJECT: Consideration of Acceptance of Public Water Improvements and Authorization to File a "Notice of Completion" for Improvements Constructed by Carltas Company, Located Within Quail Gardens Drive and Paseo De Las Flores. BACKGROUND: On May 6, 1999, the San Dieguito Water District entered into a "Lien Covenant Regarding Real Properly: Improvements Required as Condition on Final Approval of Subdivision of Real Property" with Carltas Company, owner of property located along Quail Gardens Drive and Paseo De Las Flores. The Covenant 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% retention of security will be held for one year to cover warranty of improvements. FISCAL AND STAFF IMPACT: Future expenses will be incurred for maintenance of the new water improvements. Funds to cover the cost of said maintenance are collected through the sale of water. RECOMMENDATION: Accept of public water improvements and authorize the District Manager to file a "Notice of Completion" for improvements constructed by Carltas Company, located within Quail Gardens Drive and Paseo De Las Flores. • CITY OF ENCINITAS SAN DIEGUITO WATER DISTRICT AGENDA REPORT Meeting Date: February 24, 1999 TO: Board of Directors VIA: Lauren M. Wasserman, District Manager p® W ob Nelson, Public Works Director %;JRRE'CORDS 8Tk FROM: SDWD Engineering & Planning Department ,Bill O'Donnell, Water Utility Planner ]properly, SUBJECT: Authorization to Enter Into a "Lien Covenant Regardingbd son of Rai Improvements Required Condition Water Improvements Located within ~ Property" with Carltas Company for Gardens Drive and Paseo De Las Flores. 94- ce No. BACKGROUND: On September 28, 1994, the City Council authorized, via Ordinan Con1hany Th duel is 19, the execution of a Development Agreement between the City of Encinitas and Cetas open is Plan. for the development of 853 acres identified in the Encinitas Ranch Specific prepared to begin the installation of improvements for phase two of the pro-i ect. d 112 feet ANALYSIS: In order to meet water requirements for the project, 976 feet of e ins a1 ed to provide of 8-inch PVC water main, along with new services and appurtenances, shall b domestic and fire flow needs. hardships oY The District's work force is not geared to install projects of this size without creating o a Covena normal operations. For this reason, the District has requested that the owner ent toro install ~,at with the District in which the owner agrees to provide a properly licensed contrac improvements under District inspection. ~ o'er .agrees Th s - n The District has been provided with the required information for this project. bear all costs for improvements and abide by District rules, regulations and specifi0,0110 :ay all inspec FISCAL AND STAFF IMPACT: The Covenant requires that the owner p 0 f the ne services provided by the District. Future District expenses for the maintenance the Sale of improvements will be incurred. Funding for said maintenance is covered throug «Lien moo. RECOMMENDATION: Authorize the District Manager to enter into oval o s b& APPIC Qual Regarding Real Property: Improve enR RequCondition on Final ired as of Real Property" with Carltas Company for water Drive and Paseo De Las Flores. tneORIGINAL OF THIS DOCUMENT. WAS RECORDED ON MAY 10, 1999 DOCUMENT NUMBER 1999-033691.8 Recording requested by: ) GREGORY J. SMITH, COUNTY RECORDER SAN DIEGO COUNTY RECORDER'S OFFICE When Recorded Mail To: ) TIME: 12406 FM District Clerk ) San Dieguito Water District ) 505 S. Vulcan Avenue ) Encinitas, CA 92024 ) 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. 2.54-613-03 & 254-614-03 Project No.: TM 94-066 Agreement No.: A-0032 A. Carltas Company a California Limited Partnership ("SUBDIVIDER" hereinafter) is the owner of real property which is commonly known as Encinitas Ranch II (TM 94-066) ("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 ("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. g:sdwd\eng\forms\liencov.doc r e 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. Failureof _ 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. 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 i ACCEPTED AND AGREED. Dated SUBDIVIDER tias mpaiiy lifo nia Limited Partnership (Notarization of SUBDIVIDER signature is attached.) Dated (Notarization not required) SAN DI UITO WATER DISTRICT ~~txrerr~f--in7asserman Robert T. Acker District Manager g:sdwd\eng\forms\liencov.doc CALIFORNIA ALL-PURPLiE ACKNOWLEDGMENT State of 0/ Llale ~ i A County of ~ t\; -D 1 L- 7--, On 1:-'~620 eV 5, l y gi q before me, A))0 i A_ Y Pa6Z_1( Date Name and Title of Officer (d.g., "Jane Doe, Notary Public") personally appeared C?l~a2f ST~~Hz 0 ; OALK i/J S Name(s) of Signer(s) personally known to me aGia of satisfacton=~nce_to be the persons / whose name0Tere subscribed to the within instrument and acknowledged to me that(f~sh DY executed the same intfCoh®rfthelr authorized capacity.(ies), and that by KAREN A- PHELPS s e0their signature on the instrument the person(, ~taComrnis_slon#1169873 z or the entity upon behalf of which the person,(s}acted, Z Notary Pubiic -California a executed the instrument. rs z San Diego County My Comm. Expires Jan 16, 2002 Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document ter ~ 7itle-or Tvpe of Document: , Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Trustee _ ❑ Guardian or Conservator ❑ Other: Top of thumb here ❑ Individual ❑ Corporate Officer Title(s): ❑ Partner - ❑ Limited ❑ General ❑ Attorney-in-Fact Signer's Name: _ Number of Pages: ❑ Individual ❑ Corporate Officer Title(s): ❑ Partner - ❑ Limited ❑ G ❑ Attorney-in-Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing Signer Is Representing: 0 1994 National Notary Association - 8236 Remmet Ave., 'P.O. Box 7184 - Canoga Park, CA 91309-7184 Prod. No. 5907 Reorder: Call Toll-Free 1-800.876-6827 ATTACHMENT A TO LIEN COVENANT REGARDING REAL PROPERTY: IMPROVEMENTS REQUIRED AS CONDITION ON FINAL APPROVAL OF SUBDIVISION OF REAL PROPERTY. PROJECT NO. TM 94-066 PROPERTY DESCRIPTION LOTS 51 AND 56 OF ENCINITAS TRACT NO.94-066, UNITS 4, 5 AND 6, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 13356, FILED IN THE OFFICE OF THE _COUNTY RECORDER OF SIGN DIEGO, SEPTEMBER 4, 1996. g:sdwd\eng\forms\liencov.doc i ATTACHMENT B TO LIEN COVENANT REGARDING REAL PROPERTY: IMPROVEMENTS REQUIRED AS CONDITION ON FINAL APPROVAL OF SUBDIVISION OF REAL PROPERTY. PROJECT NO. TM94-066 SUBDIVIDER'S DUTIES AND OBLIGATIONS SUBDIVIDER: Carltas Company Tract or Parcel Map Number TM 94-066 Name of Subdivision: Encinitas Ranch II 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 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. g:sdwd\eng\forms\liencov.doc- 1.106 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 thedate 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 an 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: A) 16-inch PVC Main 9761f $ 76, 128.00 B) 8-inch PVC Main 1121f $ 5, 600.00 C) 16-inch Gate Valve 2ea $ 8, 400.00 D) 8-inch Gate Valve 2ea $ 3. 400.00 E) 1-inch MAR lea $ 1, 400.00 F) 2-inch MAR Sea $ 5, 500.00 G) 2-inch Blow-off Sea $ 2, 250.00 H) Fire Hydrant 2ea $ 6, 000.00 I) 10% Contingencies $ 10. 867.80 Total Cost Estimate: $ 119, 545.80 1.09 IMPROVEMENT SECURITY: A) 100% of Cost Estimate $ 119,545.00 1.10 MISCELLANEOUS COSTS: $ -0- g:sdwd\eng\forms\liencov.doc 1.11 CAPACITY CREDIT: (OFFSETS NEW CAPACITY FEES ONLY) Account Number SDWD SDCWA A) $ $ B) $ $ C) $ $ D) $ Total Capacity Credit$< 0 0 > 1.12 SDWD METER FEES: Installation Capacity A) $ $ B) $ $ C) $ $ . D) $ $ E) $ $ Capacity Credit (Refer to Seca 1:11) 0 > Totals $ 0 $ 0 Total Meter Fees: $ 0 1.13 SDCWA CAPACITY FEES: Capacity A) $ B) $ C) $ D) $ E) $ Capacity Credit (Refer to Sec. 1.11) 0 > Total Capacity Fees $ 0 1.14 CAPACITY FEE: (FIRE) A) $ B) $ Total Capacity Fees: $ 0 1.15 INSPECTION DEPOSIT: $ 2,700.00 1.16 DEPOSITS & FEES: Engineering Fees $ 0 SDWD Meter Fees $ 0 SDCWA Capacity Fees $ 0 Fire Capacity Fees $ 0 Inspection Deposit $ 2,700.00 *TOTAL ESTIMATED DEPOSITS & FEES REQUIRED: $ 2,700.00 9 g:sdwd\eng\forms\liencov.doc . r 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 be 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. 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 g:sdwd\eng\forms\liencov.doc 1 by this Covenant not later than February 24, 2000 and shall complete the improvements no later than February 24, 2002. In the event good cause 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. 2.4 SUBDIVIDER shall notify the District Engineer in writing at least 15 days prior to the commencement of work hereunder. No g:sdwd\eng\forms\liencov.doc 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 INSPECTION/ACCEPTANCE OF IMPROVEMENTS 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 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. g:sdwd\eng\forms\liencov.doc 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 a 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 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 g:sdwd\eng\forms\liencov.doc 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 100.0 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 10% 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 100% of the total estimated increase in the construction cost of the improvements. The amount of the 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 suf f icient 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 obligat'ion' 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 g:sdwd\eng\forms\liencov.doc 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 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, g:sdwd\eng\forms\liencov.doc officers or representatives. Upon demand, SUBDIVIDER shall, at its own expense, defend DISTRICT and DISTRICT's officers, 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. 7.4 By approving the improvement plans, specifications and design; by inspecting or approving the improvements; or by g:sdwd\eng\forms\liencov.doc 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 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. g:sdwd\eng\forms\liencov.doc 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: Carltas Company 5600 Avenida Encinas, Suite 100 Carlsbad, CA 92008 10.0 SUBDIVIDER'S CERTIFICATION OF AWARENESS OF IMMIGRATION 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 H 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. g:sdwd\eng\forms\liencov.doc 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 of Industrial Relations presently disagrees with the position. -----taken-by the--Office of --theAttorney--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 g:sdwd\eng\forms\liencov.doc 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 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. g:sdwd\eng\forms\liencov.doc 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