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2003-434065DOC ~ 2005 `j'3 0RD1N(3 REQUF-STED By ;APR 15, 2003 4:03 PM When Recorded Mail To: ) OFFICIO. RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE District Clerk ) i GKGORY J. SMITH, CITY RECORDER San Dieguito Water District ) i FEES: 0.00 505 So. Vulcan Ave. Encinitas, CA 92024 For the Benefit of the District NOTICE OF COMPLETION Assessor's Parcel No. 216-053-60,61,62 Agreement No. A-0033 1. Sheridan Homes LLC, did on the 30th day of March, 1999, enter into a "Lien Covenant Regarding Real Property: Improvements Required as Condition on Final Approval of Subdivision of Real Property" with the San Dieguito Water District. The Agreement detailed the requirements for the construction and installation of 28 feet of 8" and 188 feet of 4" PVC water main, along with new services and appurtenances, within Sheridan Road in the City of Encinitas. 2. Said Covenant, 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 owners and accepted by the San Dieguito Water District Board of Directors on the 26th day of January, 2000. 4. Cash in the amount of $12,750.00 may be released at this time. The District will retain cash in the amount of $4,250.00 which shall be released at the end of the one-year warranty period. 5. All requirements of said Covenant have hereby been satisfied except for warranty. 6. Neither acceptance of said improvements by the Board of Directors nor this Notice constitute a waiver of any defects in the work of the construction or installation of said improvements. Dated~20 SAN DIEGUITO WATER DISTRICT 40, Lew a 01 Clerk of the Board f:\notice of completion\notcomp 10. doe 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. R Date Q t eborah Cervone, Board Clerk STATE OF CALIFORNIA) ) ss County of San Diego) tom.C~9 / On this / day of 19 , before me, the undersigned, a Notary Public in and for said State, 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. &6;`~,;;.rt OFF=MILLJOUR RANDA . NOTARY PUBLIC- CALIFORNIAM COMM. NO. 1204250 SAN DIEGO COUNTY All N01 ' MY COMM. EXP. JAN. 6, 2003 Notary Pub c CITY OF ENCINITAS SAN DIEGUITO WATER DISTRICT AGENDA REPORT Meeting Date: January 26, 2000 From Cityclem TO: Board of Directors VIA: Kerry L. Miller, District Man qr Lin H. Wurbs, Interim Public cs Director FROM: SDWD Engineering & Planning Department Oill O'Donnell, Water Utility Planner SUBJECT: Consideration of Acceptance of Public Water Improvements and Authorization to File a "Notice of Completion" for a Three-Lot Subdivision Developed by Sheridan Homes, LLC, Located on the South End of Sheridan Road (APNs 216- 053-60,61,62). BACKGROUND: On March 30, 1999, the San Dieguito Water District entered into a "Lien Covenant Regarding Real Property: Improvements Required as Condition on Final Approval of Subdivision of Real Property" with Sheridan Homes LLC, owner of property located at the south end of Sheridan Road. 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 public water improvements and authorize the District Manager to file a "Notice of Completion" for a three-lot subdivision developed by Sheridan Homes, LLC, located on the south end of Sheridan Road. CITY OF ENCINITAS SAN DIEGUITO WATER DISTRICT AGENDA REPORT Meeting Date: March 24, 1999 TO: Board of Directors FonyOURRECORDS VIA: James F. Benson, Assistant District Manager From CityClerk ,Bob Nelson, Public Works Director FROM: SDWD Engineering & Planning Department Bill O'Donnell, Water Utility Planner SUBJECT: Authorization to Enter Into a "Lien Covenant Regarding Real Property: Improvements Required as Condition on Final Approval of Subdivision of Real Property" with Sheridan Homes, LLC, for Property Located on the South End of Sheridan Road, APN 216-053-09. BACKGROUND: On August 21, 1998, the City of Encinitas Community Development Department approved a three-lot tentative parcel map located along Sheridan Road. The owner is in the process of finalizing the map. ANALYSIS: In order to meet water requirements for the project, 28 feet of 6-inch and 188 feet of 4-inch PVC water main, along with new services and appurtenances, are required to be installed to provide domestic and fire flow needs. The District's work force is not geared to install projects of this size without creating hardships on normal operations. For this reason, the District has requested that the owner enter into a Covenant with the District in which the owner agrees to provide a properly licensed contractor to install water improvements under District inspection. The District has been provided with the required information for this project. The owner agrees to bear all costs for improvements and abide by District rules, regulations and specifications. FISCAL AND STAFF IMPACT: The Covenant requires all inspection services provided by the District to be paid for by the owner. Future District expenses will be incurred for the maintenance of the new water improvements, once they are accepted. Funding for said maintenance is covered through the sale of water. RECOMMENDATION: Authorize the District Manager to enter into a "Lien Covenant Regarding Real Property: Improvements Required as Condition on Final Approval of Subdivision of Real Property" with Sheridan Homes, LLC, for property located on the south end of Sheridan Road, APN 216-053-09. ~ 1. -0245255 .3042 APB' 13 a 1999 9:52 A Recording requested by: When Recorded Mail To: District Clerk ) San Dieguito Water District 505 S'. Vulcan Avenue ) Encinitas, CA 92024 ) OFFICIAL RECORDS- SAN DIEGO COUNTY RECORDER'S OFFICE GREGORY J. SMITH, COUNTY RECORDER FEES: 80.00 1999-0246266 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 Nos.216-053-09 Project No.: TPM 98-117 Agreement No.: A-0033 A. Sheridan Homes LLC a California Limited Liability Company ("SUBDIVIDER" hereinafter) are the owners of real property which is commonly known as APN 216-053-09 ("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 g:sdwd\eng\forms\liencov.doc 3043 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. 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 t 3044 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 n ~ its 304 ACCEPTED AND AGREED. SUBDIVIDER KY - Dated 19 91? jr^- ?/If 4+l~/ Jos Addison, President Sheridan Homes, LLC (Notarization of SUBDIVIDER signature is attached.) SAN DIEGUITO WATER DISTRICT Dated ✓`~U 9 % b ~atzr~n-M--6dasserrrtarr Robert T. Acker District Manager (Notarization not required) g:sdwd\eng\forms\liencov.doc t , 3U4U CALIFORNIA ALL-PURP~ sE ACKNOWLEDGMENT State of California County of San Diego On February 3, 1999 before me, Nancy M. Reyes, a notary public* Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Joshua Addison* * * * * * * * * * * * * * * * * * * * Name(s) of Signer(s) 93 personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(o) whose name( is/,afq subscribed to the NANCY M. REYES within instrument and acknowledged to me that heAhe~trpy Commission #1102875 C m ,-ws executed the same in his/,hk~'/'qlr/authorized capacity(i), Notar San y Public Diego - County California 4 N > and that by his/~1¢r/thrs/r signature($) on the instrument the My Commission Exp. JUNE 23, 2000 person($), or the entity upon behalf of which the person( acted, execute~fUtrument. WITNESS my hand and off iNal seal. Public OPTIONA~ 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 Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name ❑ Individual ❑ Corporate Officer Title(s): ❑ Partner - ❑ Limited ❑ General ❑ Attorney-in-Fact ❑ Trustee _ ❑ Guardian or Conservator ❑ Other: Top of thumb here Signer's Name: ❑ Individual ❑ Corporate Officer Title(s): ❑ Partner - ❑ Limited ❑ General ❑ Attorney-in-Fact ❑ Trustee _ ❑ Guardian or Conservator ❑ Other: Top of thumb here Signer Is Representing Signer Is Representing: 0 1996 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 ~ 304 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: PARCEL A ALL THAT PORTION OF THE SOUTH HALF OF SECTION 33, TOWNSHIP 12 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY APPROVED OCTOBER 25, 1875, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE SOUTHERLY LINE OF SAID TOWNSHIP 12 SOUTH, SAID POINT BEING SHOWN ON MAP NO. 2063 OF AVOCADO ACRES NO. 3, RECORDS OF SAN DIEGO COUNTY, AS, THE SOUTHWESTERLY CORNER OF LOT 23; THENCE ALONG THE WESTERLY LINE OF SAID AVOCADO ACRES NO. 3 NORTH 0001'45" WEST A DISTANCE OF 354.95 FEET TO' THE SOUTHEASTERLY CORNER OF THAT PORTION OF SAID SECTION 33 CONVEYED BY SOUTH COAST LAND COMPANY TO JESSE E. SIMPSON AND CECIL D. SIMPSON BY DEED DATED DECEMBER 6, 1928 AND RECORDED IN BOOK 1571, PAGE 279 OF DEEDS, RECORDS OF SAN DIEGO COUNTY; THENCE ALONG THE SOUTHERLY LINE OF THE PROPERTY SO CONVEYED TO SIMPSON, SOUTH 74°13'45" WEST A DISTANCE OF 248.84 FEET TO THE SOUTHWESTERLY CORNER THEREOF; THENCE ALONG THE SOUTHERLY PROLONGATION OF THE WESTERLY LINE OF SAID SIMPSON PROPERTY SOUTH 15045'45" EAST A DISTANCE OF 298.56 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID TOWNSHIP 12 SOUTH, SAID LINE BEING ALSO THE NORTHERLY LINE OF LOT 24 OF AVOCADO ACRES NO. 3, AS SHOWN ON SAID MAP NO. 2063; THENCE ALONG SAID SOUTHERLY LINE OF TOWNSHIP 12 SOUTH, NORTH 89058'45" EAST (RECORD NORTH 89058'30" EAST) A DISTANCE OF 158.71 FEET TO THE POINT OF BEGINNING. PARCEL B: A NON-EXCLUSIVE EASEMENT FOR THE INSTALLATION AND MAINTENANCE OF UTILITIES (INCLUDING WITHOUT LIMITATION, CONDUITS, PIPES, POLES, SEWERS, TELEPHONE, GAS, AND ELECTRICAL LINES) AND THE INSTALLATION AND MAINTENANCE OF DRAINAGE FACILITIES (INCLUDING WITHOUT LIMITATION SURFACE DRAINAGE FACILITIES) AND TOGETHER WITH INGRESS AND EGRESS OVER AND ACROSS THE EASEMENT AREA FOR THE PURPOSE OF INSTALLING AND MAINTAINING SUCH UTILITIES AND DRAINAGE FACILITIES OVER, UNDER, ALONG AND THROUGH THE WESTERLY 20.00 FEET OF PARCEL 1 OF THE LAND DESCRIBED IN QUITCLAIM DEED TO GRACE M. CANNING AS TRUSTEE OF THE GRACE M. CANNING DECLARATION OF TRUST DATED DECEMBER 1, 1995, SAID QUITCLAIM DEED BEING RECORDED DECEMBER 4, 1995 AS DOCUMENT NO. 1995-0549192 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY 3043 ATTACHMENT "A" SAID EASEMENT BEING A PORTION OF THE SOUTH HALF OF SECTION 33, TOWNSHIP 12 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, UNITED STATES GOVERNMENT SURVEY APPROVED OCTOBER 25, 1875 AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE SOUTHERLY LINE OF SAID TOWNSHIP 12 SOUTH SHOWN ON MAP NO. 2063 OF AVOCADO ACRES NO. 3, RECORDS OF SAN DIEGO COUNTY, AS BEING THE SOUTHWESTERLY CORNER OF LOT 23; THENCE ALONG THE WESTERLY LINE OF SAID AVOCADO ACRES NO. 3, NORTH 0001'45" WEST A DISTANCE OF 354.95 FEET TO THE POINT OF BEGINNING OF SAID ABOVE MENTIONED PARCEL 1; THENCE CONTINUING ALONG SAID WESTERLY LINE OF AVOCADO ACRES NO. 3, NORTH 0001'45" WEST A DISTANCE OF 261.77 FEET TO THE SOUTHEASTERLY CORNER OF THE TRACT OF LAND CONVEYED BY SOUTH COAST LAND COMPANY TO T.S. REED BY DEED DATED DECEMBER 14, 1927 AND RECORDED IN BOOK 1398, PAGE 455 OF DEEDS, RECORDS OF SAN DIEGO COUNTY; THENCE SOUTH 74013'45" WEST ALONG THE SOUTHERLY LINE OF SAID REED'S LAND AND ITS WESTERLY PROLONGATION A DISTANCE OF 319.68 FEET TO THE TRUE POINT OF BEGINNING OF THE HEREIN DESCRIBED EASEMENT; THENCE SOUTH 15043'45" EAST A DISTANCE OF 251.97 FEET, MORE OR LESS, TO AN INTERSECTION WITH A LINE THAT BEARS SOUTH 74013'45" WEST A DISTANCE OF 248.84 FEET FROM THE TRUE POINT OF BEGINNING OF SAID ABOVEMENTIONED PARCEL l; THENCE ALONG SAID LINE NORTH 74013'45" EAST, 20.00 FEET; THENCE PARALLEL WITH. AND 20.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID PARCEL 1, NORTH 15043'45" WEST 251.97 FEET TO A POINT ON THE NORTHERLY LINE OF SAID PARCEL 1; THENCE SOUTH 74013'45" WEST 20.00 FEET TO THE TRUE POINT OF BEGINNING. 3049 ATTACHMENT B TO LIEN COVENANT REGARDING REAL PROPERTY: IMPROVEMENTS REQUIRED AS CONDITION ON FINAL APPROVAL OF SUBDIVISION OF REAL PROPERTY. PROJECT NO. TPM 98-117 SUBDIVIDER'S DUTIES AND OBLIGATIONS SUBDIVIDER: Sheridan Homes, LLC Tract or Parcel Map Number : TPM 98-117 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 • 3050 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. 1.08SUBDIVIDER 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 305 A) 6" gate valve 1 ea. $ 1, 700.00 B) 4" PVC water main 188 lf. $ 5. 076.00 C) 6" PVC water main 28 lf. $ 1, 400.00 D) 1" water service 6 ea. $ 3, 600.00 E) Fire hydrant 1 ea. $ 3, 000.00 F) 2" MAR 1 ea. $ 1, 000.00 G) $ H) $ I) $ J) $ K) 10% Contingencies $ 1, 577.60 Total Cost Estimate: $ 17, 353.60 1.09 IMPROVEMENT SECURITY: A) 100% of Cost Estimate 1.10 MISCELLANEOUS COSTS:. 1.11 CAPACITY CREDIT: (OFFSETS NEW CAPACITY FEES ONLY) Account Number SDWD SDCWA A) $ $ B) $ $ C) $ $ D) $ $ Total Capacity Credit$< > 1.12 SDWD METER FEES: $ 17,353.00 Installation Capacity A) 3/4" meter 3ea $ 480.00 $ 6;000.00 B) $ $ C) D) E) Capacity Credit $ $ $ $ (Refer to Sec. 1.11) > Totals $ 480.00 $ 6,000.00 Total SDWD Meter Fees: $ 6,480.00 g:sdwd\eng\forms\liencov.doc I 30 524 ~1.13 SDCWA CAPACITY FEES: Capacity A) 3/4" meter 3ea $ 4,755.00 B) $ C) $ D) $ E) $ Capacity Credit (Refer to Sec. 1.11) > Total Capacity Fees: $ 4,755.00 1.14 CAPACITY FEE: (FIRE) A) B) Total Capacity Fees: $ -0- 1.15 INSPECTION DEPOSIT: $ 1,000.00 1.16 DEPOSITS & FEES: Engineering Fees SDWD Meter Fees SDCWA Capacity Fees Fire Capacity Fees Inspection Deposit $ -0- $ 6,480.00 $ 4,755.00 $ -0- $ 1,000.00 *TOTAL ESTIMATED DEPOSITS & FEES REQUIRED : $ 12,235.00 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 r` 3053 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 January 20, 2000 and shall complete g:sdwd\eng\forms\liencov.doc the improvements no later than January 20, 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. g:sdwd\eng\forms\liencov.doc 30~~ 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 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 thesatisfaction 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. g:sdwd\eng\forms\liencov.doc 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. 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 g:sdwd\eng\forms\liencov.doc 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 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 g:sdwd\eng\forms\liencov.doc 3058 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 100% 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 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 2.5% 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. g:sdwd\eng\forms\liencov.doc 6.0 CURING OF DEFAULTS 3059 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 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. g:sdwd\eng\forms\liencov.doc 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, 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 g:sdwd\eng\forms\liencov.doc 3061 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 condemnationof 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 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 g:sdwd\eng\forms\liencov.doc I { 3062 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. g:sdwd\eng\forms\liencov.doc E_ 3063 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: Josh Addison P.O. Box 22562 San Diego, CA 92192 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) g:sdwd\eng\forms\liencov.doc 306<* 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 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 g:sdwd\eng\forms\liencov.doc 3005 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 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. g:sdwd\eng\forms\liencov.doc 3006 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