AGREEMENT
FOR
CONSTRUCTION OF IMPROVEMENTS
WHEREAS, the undersigned Lake Elsinore Plaza 2
whose business address is
herein referred to as "Subdivider", has submitted to the City of Lake Elsinore for its approval a Final Map of a subdivision designated as PM 38614 which map was prepared by RENCIVIL ENGINEERING and,
WHEREAS, the Subdivider has not completed all of the work, or made all of the improvements required by Title 16, Lake Elsinore Municipal Code or such other ordinances of the City of Lake Elsinore requiring construction of improvements in conjunction with land divisions, subdivisions, and the like, hereinafter collectively referred to as "said ordinance", and,
WHEREAS, Subdivider desires to enter into an agreement providing for the completion of the work and the making of the improvements and to furnish security for the performance of this agreement in accordance with the provisions of said ordinance;
NOW, THEREFORE, in consideration of the approval of said Final Map by the City, and as a condition of such approval, the Subdivider promises and agrees at his own expense to do all of the work and make all of the improvements required by said ordinance, which work and improvements, without limitation by enumeration, consists of: Future Street Improvements for PM 38614 FM-2023-0005. (Old Parcel Map and bonds were under PM 37773 / FM-2020-00011 before entitlement expired) The above enumeration of items is understood to be only a general designation of the work and improvements, and not a binding description thereof. All of said work shall be done and improvements made and completed which are shown on and in strict compliance with applicable plans and specifications, and any subsequent alterations thereto, which alterations in said plans and specifications and the work to be performed may be accomplished without first giving prior notice thereof to the surety; provided, however in the event the estimated cost of any changes or alterations in said work exceeds ten percent (10%) of the original estimated cost of the improvements, then the consent of the surety shall be obtained, and absent such consent, the surety's obligations shall not then exceed the cost of improvements to be constructed under the said originally approved plans prior to said alterations; provided, further, in no event shall such https://lakeelsinore.sharepoint.com/eng/Shared Documents/Engr/AGREEMENTS/PERMIT AGREEMENTS/Construction Agreement.doc
1 change result in exonerating the surety's obligations. Such work shall be completed and improvements made within one year from the date of this agreement, unless such time be extended by the City upon written application of the Subdivider. Failure to make such written request shall not preclude the City from extending this agreement. In the absence of written notice by the City to the Developer that the agreement has been terminated, said agreement shall remain in effect. It is understood that by providing security for this agreement, the surety consents in advance to any extension of time as may be given by the City to the Subdivider and waives notices of such extension. The making of an application for an extension of time by the Subdivider shall, upon the granting of the application by the City, constitute a waiver by the Subdivider and by the surety of all defenses of laches, estoppel, statutes of limitations, and other limitations of action in any action or proceeding filed by the City.
The Subdivider further agrees that any and all grading done or to be done in conjunction with the development in the herein described Final Map shall conform to the requirements of the Lake Elsinore Municipal Code and any other applicable ordinances regulating excavations and fills (e.g., grading regulations) and shall be completed within the period of time described above and prior to the acceptance by or on behalf of the City of the work and improvements and prior to the release by the City of the surety guaranteeing performance of this agreement, in order that said improvements will not be endangered by improper drainage or other hazards.
The Subdivider promises and agrees to maintain all of the improvements to be constructed under this contract in a state of good repair, until all of the work and improvements are completed and accepted by or on behalf of the City and until the security for the performance of this agreement is released. Said maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters, sidewalks, parkways, sewers, and removal of debris from sewers and storm drains; said maintenance shall also include, but not be limited to by this enumerations, sweeping, repairing and maintaining in good and safe condition all streets and street improvements. It shall be the Subdivider's responsibility to initiate this work but if he should fail to do so, he shall promptly perform such maintenance when notified to do so by the City Engineer of the City of Lake Elsinore.
Upon failure of the Subdivider to properly maintain, the City may do all necessary work required by this paragraph, the cost thereof being chargeable to the Subdivider and his surety under this agreement. The Subdivider further agrees under this agreement to hold the City and its officers and employees free and harmless from any claims, demand or action for damages, injury or death, and to indemnify the City for any loss, arising out of or incurred as the result of or in connection with improper maintenance or dangerous conditions or any act or omission in connection with any of the maintenance activities required under this paragraph, existing or occurring or arising out of any act or omission occurring prior to final acceptance by the City of all the work and improvements constructed under this contract. https://lakeelsinore.sharepoint.com/eng/Shared Documents/Engr/AGREEMENTS/PERMIT AGREEMENTS/Construction Agreement.doc
2 The Subdivider shall be responsible for maintaining all improvements for a period of one year following completion of the work and acceptance by the City against any defective work or labor done, or defective materials furnished in the performance of the contract, and it is further agreed that upon completion and acceptance of the improvements by the City of Lake Elsinore, the liability of the surety for no less than ten percent (10%) of the face amount thereof or $300.00, whichever is greater, will continue for the purpose of guaranteeing maintenance of the improvements for a period of one year following the completion and acceptance by the City against any defective work or labor done, or defective materials furnished in the performance of this contract with the City of Lake Elsinore.
If the Subdivider and the surety fail to install all or any part of the improvements required by this agreement within the time set forth herein, or fail to comply with any other obligation contained herein, they shall be jointly and severally liable to the City for any administrative expenses and attorney's fees incurred in obtaining compliance with this agreement and any such expenses and fees incurred in processing any action for damages or for any other remedies permitted by law.
It is further understood and agreed that upon default of any obligation hereunder, and at any time after any such default, the City may make written demand upon the Subdivider and surety to immediately remedy the default or complete the work. If said remedial activities or completion of work are not commenced within sixty (60) days after such demand is made and are not thereafter diligently prosecuted to completion and fully completed within one hundred twenty (120) days after the making of such demand (or such other time as may be contained in said demand), the City may then complete or arrange for completion of all remaining work or conduct such remedial activity as in the sole judgement of the City may be required, all at the full expense and obligation of the Subdivider and surety and all without the necessity of giving any further notice to the Subdivider or surety before the City performs or arranges for performance of any remaining work or improvements, and whether or not the Subdivider or surety have constructed any of the required improvements at the time. In the event the City elects to complete or arrange for completion of remaining work and improvements, the City Engineer, upon such election, may require all work by the Subdivider or surety to cease in order to permit adequate coordination by the City for completing any remaining work and improvements not yet completed.
It is agreed that all work and improvements done pursuant to this agreement shall conform to the standards applicable at the time work is actually commenced.
The Subdivider shall provide security in the amount of .....
Four Hundred Seventy. Four Thousand Five Hundred Seventy-Seven and Thirty Two cents Dollars ($ 474,577.32 ) to guarantee the performance of this agreement. In addition, the Subdivider shall provide security in the amount of! Four Hundred Seventy-Four Thousand Five Hundred Seventy-Seven and Thirty Two cents Dollars ($474,577.32 ) to guarantee https://lakeelsinore.sharepoint.com/eng/Shared Documents/ Engr /AGREEMENTS/PERMIT AGREEMENTS/Construction Agreement.doc
3 payment to any contractors, subcontractors, and persons furnishing labor, materials and equipment to them for the performance of the work herein described. Said security shall be in the form of a Surety Bonds (corporate surety bonds, cash deposits, etc.) The Subdivider acknowledges and agrees to City regulations governing signs and advertising structures. Subdivider agrees and consents to removal by the City of all signs erected, placed, or situated in violation of any City ordinance governing size, location, or required permits. Removal shall be at the expense of the Subdivider and Subdivider shall indemnify and hold the City free and harmless from any claim or demand arising out of or incurred as a result of such removal, excepting negligent acts or omissions by the City, its agents or employees. Subdivider agrees that said signs may be erected only pursuant to a permit issued by the City upon payment of necessary fees or deposits.
The Subdivider agrees to provide to the City a Public Liability Insurance Policy, making the City of Lake Elsinore, its officers, agents and employees, additional insured against any injuries or death to any person and property damage. The amount and the insurance company must be approved by the City Engineer.
In addition, the Subdivider shall deposit a copy of the Workmen's Compensation Insurance coverage by an approved insurance company and in an amount satisfactory to the City, and as required by law.
For purposes of enforcing this agreement, the term "City" includes the City Council, the City Manager, the City Attorney, City Engineer, or any of them, or any of their authorized representatives.
WITNESS WHERE, the Subdivider has caused this agreement to be executed this l JuNe
SIGNED:
(Type NamerTitle) Riyadh Kassab-resident
FOR: Lake Elsinore Plaza 2
(Name of Company on above line)
CITY OF LAKE ELSINORE
BY:_
Jason Simpson, City Manager
CITY OF LAKE ELSINORE
ATTEST:
Candice Alvarez, City Clerk
CITY OF LAKE ELSINORE
https://lakeelsinore.sharepoint.com/eng/Shared Documents/Engr/AGREEMENTS/PERMIT AGREEMENTS/Construction Agreement .doc
4 FAITHFUL PERFORMANCE BOND
CITY OF LAKE ELSINORE
(located in the County of Riverside, State of California) FOR: Streets & Drainage $ 474,577.32 Project No. PM No. 38614 Landscaping shil Bond No. PB11511100660
Premium $4,746.00/1 year
Surety Philadelphia Indemnity Insurance Company Principal Lake Elsinore Plaza 2 Address One Bala Plaza, Suite 100 Address 4580 University Ave City Bala Cynwyd City San Diego
Zip Code 19004 Zip Code 92105
WHEREAS, The City of Lake Elsinore, a municipal corporation located in the County of Riverside, State of California, and Lake Elsinore Plaza 2 (hereinafter designated as "principal") have entered into, or are about to enter into the attached agreements) whereby principal agrees to install and complete the above-designated public improvements, relating to City Project Number PM 38614 which agreements) is/are hereby referred to and made a part hereof; and, WHEREAS, said principal is required under the terms of said agreements) to furnish bond(s) for the faithful performance of said agreements);
NOW, THEREFORE, we the principal, and Philadelphia Indemnity Insurance Company as surety, are held and firmly bound unto the City of Lake Elsinore, in the penal sum of:........
Four Hundred Seventy-Four Thousand, Five Hundred Seventy-Seven and 32/100ths Dollars ($474,577.32 lawtul money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.
The condition of this obligation is such that if the above bonded principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Lake Elsinore, its officers, agents and employees, , as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.
I: \BZL Common\My Clients\Lake Elsinore\Forms\FAITHFUL
1 FAITHFUL PERFORMANCE BOND
The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed there under or the specifications accompanying the same shall in anywise affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.
Surety further stipulates and agrees that the provisions of Section 2845 of the Civil Code are not a condition precedent to Surety's obligations hereunder and are hereby waived by Surety.
When the work covered by the agreement is complete, the City of Lake Elsinore will accept the work and thereupon the amount of the obligation of this bond is reduced by 90% with the remaining 10% held as security for the one-year maintenance period provided for in the agreements).
IN WITNESS WHEREOF, this instrument has been duly executed by the principal and surety above named on June 6th
, 2025.
NAME OF PRINCIPAL: Lake Elsinore Plaza 2
AUTHORIZED SIGNATURE(S):
By
Title
By Mamber
Title
(IF CORPORATION, AFFIX SEAL)
NAME OF SURETY: Philadelphia Indemnity Insurance Company AUTHORIZED SIGNATURE: i Ma
Its Attorney-in-Fact Title Jamie Magnussen, Attorney in fact (IF CORPORATION, AFFIX SEAL)
ATTACH NOTARIAL ACKNOWLEDGEMENT OF SIGNATURES OF PRINCIPAL AND ATTORNEY-IN-FACT I: \BZI Common\My Clients\lake Elsinore\Forms\EAITHFUL
2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
County of San Diego
On June 6, 2025 before me, Pam Davis , Notary Public,
Date Insert Name of Notary exactly as it appears on the official seal personally appeared Jamie Magnussen
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence t be the person(s) whose names) is/are subscribed to the
within instrument and acknowledged to me that he/she/they PAM DAVIS executed the same in his/her/their authorized capacity(ies) Notary Public • California and that by his/her/their signature(s) on the instrument the San Diego County person(s), or the entity upon behalf of which the person(s) Commission * 2519464 acted, executed the instrument.
My Comm. Expires Jun 1, 2029
I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true and correct.
Witness my hand and official seal.
Signature
Place Notary Seal Above Signature of Notary Public
- OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the documen and could prevent fraudulent removal and reattachment of the form to another document Description of Attached Document
Title or Type of Document:
Document Date: - Number of Pages:
Signers) Other Than Named Above:
Capacity(ies) Claimed by Signers)
Signer's Name: Signer's Name:
• Individual • Individual
• Corporate Officer — Title(s):_ • Corporate Officer — Title(s): - • Partner • Limited • General • Partner • Limited • General V Attorney in Fact RIGHT THUMBPRINT • Attorney in Fact RIGHT THUMBPRINT Trustee OF SIGNER • Trustee OF SIGNER
Guardian or Conservator Top of thumb here • Guardian or Conservator Top of thumb here • Other: • Other:
Signer is Representing: Signer is Representing:
PHILADELPHIA INDEMNITY INSURANCE COMPANY
One Bala Plaza, Suite 100
Bala Cynwyd, PA 19004-0950
Power of Attorney
KNOW ALL PERSONS BY THESE PRESENTS: That PHILADELPHIA INDEMNITY INSURANCE COMPANY (the Company), a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, does hereby constitute and appoint Cyndi Beilman, Rebecca Brannan and Jamie Magnussen of demnity and writings obligatory in the nature thereof, issued in the course of its business and to bind the Company thereby, in al This Power of Attorney is granted and is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of PHILADELPHIA INDEMNITY INSURANCE COMPANY on the 14" of November 2016 RESOLVED: That the Board of Directors hereby authorizes the President or any Vice President of the Company: (1) Appoint Attorney(s) in Fact and authorize the Attorney(s) in Fact to execute on behalf of the Company bonds and undertakings, contracts of indemnity and othe vritings obligatory in the nature thereof and to attach the seal of the Company thereto; anc (2) to remove, at any time, any such Attorney-in-Fact and revoke the authority given, And. be it
FURTHER
RESOLVED: That the signatures of such officers and the seal of the Company may be affixed to an uch Power of Attorey or certificate relating thereto by facsimile, and any such Power o Anto may i spouted compaid by a since siese and acid or all be aid which it is attached
IN TESTIMONY WHEREOF, PHILADELPHIA INDEMNITY INSURANCE COMPANY HAS CAUSED THIS INSTRUMENT TO BE SIGNED AND ITS CORPORATE SEALTO BE AFFIXED BY ITS AUTHORIZED OFFICE THIS STH DAY OF OCTOBER 2024 1927
(Scal)
Glomb, President & CEO
Philadelphia Indemnity Insurance Company
In this 5 day of October, 2024 before ne came the individual who executed the preceding instrument, to me personally known, and being by me duly sworn said tha no i that seal o secompany, that tie sad Corporate Seal and his signature were dily alikes. RANCE COMPANY; that the seal fixed to said instrument is the Notary Public:
Vaness, mckengie
Delaware County
My commiseion expires November 3. 2028
Commission number 1366394
Member, Pannaylvan. Associalion of Notaties residing at: Linwood, PA My commission expires: November 3, 2028
1, Edward Sayago, Corporate Secretary of PHILADELPHIA INDEMNITY INSURANCE COMPANY, do hereby certify that the foregoing resolution of the Board of Directors and the Power of Attorey issued pursuant thereto on the 5% day October 2024 are true and correct and are still in full force and effect. I do further certify tha PHILADE LA INDEMNITY INSURANCE COMPS President, was on the date of execution of the attached Power of Attomey the duly elected President of In Testimony Whereof I have subscribed my name and affixed the facsimile seal of each Company this 6th _ day of June, 2025 El San
1927
Edward Sayago, Corporate Secretary
PHILADELPHIA INDEMNITY INSURANCE COMPANY
MATERIAL AND LABOR BOND
CITY OF LAKE ELSINORE
(located in the County of Riverside, State of California) FOR: Streets & Drainage $ 474,577.32 Project No. PM No. 38614 Landscaping $ nil Bond No. PB11511100660
Premium Included in performance bond
Surety Philadelphia Indemnity Insurance Company Principal Lake Elsinore Plaza 2 Address One Bala Plaza, Suite 100 Address 4580 University Ave City Bala Cynwyd City San Diego
Zip Code 19004 Zip Code 92105
WHEREAS, The City of Lake Elsinore, a municipal corporation located in the County of Riverside, State of California, and Lake Elsinore Plaza 2 (hereinafter designated as "principal") have entered into, or are about to enter into the attached agreements) whereby principal agrees to install and complete the above-designated public improvements, relating to Project Number PM No. 38614 , which agreements) is/are hereby referred to and made a part hereof; WHEREAS, under the terms of said agreement, principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Lake Elsinore to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code of the State of California.
NOW, THEREFORE, said principal and the undersigned as corporate surety, are held firmly bound unto the City of Lake Elsinore and all contractors, subcontractors, laborers, material persons and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Civil Code in the sum of Four Hundred Seventy-Four Thousand, Five Hundred Seventy-Seven and 32/100ths ($ 474,577.32 _ for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.
Should the condition of this bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. https://lakeelsinore.sharepoint.com/eng/Shared Documents/Engr/SECURITY/SECURITY-NEW/BOND FORMS/COMM_INDUS/LABOR & MATERIAL BOND.docx; 1/29/2020