RECORDING REQUESTED BY:
WHEN RECORDED RETURN TO:
CITY OF SAN JACINTO
595 S. San Jacinto Ave., Bldg. B
San Jacinto, CA 92583
ATTN: City Clerk
SPACE ABOVE THIS LINE FOR RECORDER'S USE
Exempt from recording fee, Der Government Code
Section 6103
CITY OF SAN JACINTO, CALIFORNIA
By: _
City Clerk
AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS
PARCEL/TRACT NO. 28224
among
THE CITY OF SAN JACINTO
.... a California municipal corporation
and
SANJAC55, LILC, a California limited liability company
... and
-..
LGI HOMES - CALIFORNIA, LLC, a California limited liability company .. ==..
.....
:
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AGREEMENT FOR COMPLETION OF PUBLIC IMPROVEMENTS
PARCEL/TRACT NO. 28224
I. PARTIES AND DATE.
This Agreement for the Completion of Public Improvements ("Agreement") is entered municipal corporation ("City'"); SanJac 55, LLC a California limited liability company, as owner and current developer ("Owner" or "Developer"); and LGI Homes - California, LL.C, a California limited liability company ("LGI"), the potential future owner and developer. The City, Developer, and LGI are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties."
II. RECITALS.
A. On September 19, 1995, the City Council of the City of San Jacinto approved tentative tract map 28224 (Tract) for real property located within City, a legal description of which is attached hereto as Exhibit "A" ("Property"). On March 13, 2003, the Planning Commission of the City of San Jacinto adopted Resolution 03-11 amending the conditions of approval for the Tract.
B. Owner has informed the City of its intent to sell the Property to LGI. The Parties acknowledge that, upon completion of the sale and subject to LGI's written assumption of all obligations of Developer under this Agreement, Owner may be released from further obligations as provided in Section 20.7 of this Agreement.
Developer must complete certain conditions and improvements associated with the Tract.
D. Developer has not completed all of the work or made all of the public improvements required by San Jacinto's Municipal Code Section 16.24, the Subdivision Map Act (Government Code sections 66410 et seg.) ("Map Act"), the conditions of approval for the Tract, or other ordinances, resolutions, or policies of City requiring construction of improvements in conjunction with the subdivision of land.
E. Pursuant to San Jacinto Municipal Code Section 16.24.010 (B) and the applicable provisions of the Map Act, Developer, LGI, and City enter into this Agreement for the timely construction and completion of the public improvements and the furnishing of the security therefor, acceptable to the City Engineer and City Attorney, for the Tract.
F. LGI intends to purchase the Property and thereafter complete the required 2 SUBDIVISION IMPROVEMENT AGREEMENT
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conditions and improvements, and in furtherance thereof, LGI has agreed to post bonds to satisfy the financial assurance requirements under this Agreement, subject to the first sentence of Section
20.8 below.
Developer's and LGI's execution of this Agreement and the provision of the security are made in consideration of City's approval of the final map for the Tract.
I. TERMS.
1.0 Effectiveness. This Agreement shall not be effective unless and until all four of the following conditions are satisfied:
(a) Developer or LGI provides City with security of the type and in the amounts required by this Agreement;
(b) Developer and LGI execute and record this Agreement in the Recorder's Office of the County of Riverside;
(c) the City Council of the City ("City Council") approves the final map for the Tract; and
(d) Developer or LGI records the final map in the Recorder's Office of the County of Riverside. If the above-described conditions are not satisfied, this Agreement shall automatically terminate without need of further action by either City or Developer, and Developer may not thereafter record the final map for the Tract.
Restriction on Sale. Owner shall not sell, convey, or transfer any portion of the Property except to LGI pursuant to the contract for purchase of the Property between Owner and LGI unless and until replacement Security, as further detailed in Section 20.8, is provided to the City by Owner. This restriction is intended to ensure unified control and accountability for the completion of all required Public Improvements as set forth in this Agreement. Any such sale, conveyance, or transfer in violation of this Section 1.1 shall be null and void, and shall be a default of this Agreement.
Public Improvements. Developer shall construct or have constructed at its own cost, expense, and liability all improvements required by City as part of the approval of the Tract. including, but not limited to, all grading, roads, paving, curbs and gutters, pathways, storm drains. sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities as shown in detail on the plans, profiles, and specifications which have been prepared by or on behalf of Developer for the Tract ("Public Improvements"). The Public Improvements are more specifically described in Exhibit "B", which is attached hereto and incorporated herein by this reference. Construction of the Public Improvements shall include any transitions and/or other incidental work deemed necessary for drainage or public safety. The 3 SUBDIVISION IMPROVEMENT AGREEMENT
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Developer shall be responsible for the replacement, relocation, or removal of any component of any irrigation water system in conflict with the construction or installation of the Public Improvements. Such replacement, relocation, or removal shall be performed to the complete satisfaction of the City Engineer and the owner of such water system. Developer further promises and agrees to provide all equipment, tools, materials, labor, tests, design work, and engineering services necessary or required by City to fully and adequately complete the Public Improvements.
2.1 Prior Partial Construction of Public Improvements. Where construction of any Public Improvements has been partially completed prior to this Agreement, Developer agrees to complete such Public Improvements or assure their completion in accordance with this Agreement.
Permits; Notices; Utility Statements. Prior to commencing any work, Developer shall, at its sole cost, expense, and liability, obtain all necessary permits and licenses and give all necessary and incidental notices required for the lawful construction of the Public Improvements and performance of Developer's obligations under this Agreement. Developer shall conduct the work in full compliance with the regulations, rules, and other requirements contained in any permit or license issued to Developer. Prior to commencing any work, Developer shall file a written statement with the City Clerk and the City Engineer, signed by Developer and each utility which will provide utility service to the Property, attesting that Developer has made all deposits • legally required by the utility for the extension and provision of utility service to the Property.
2.3 Pre-approval of Plans and Specifications. Developer is prohibited from commencing work on any Public Improvement until all plans and specifications for such Public Improvement have been submitted to and approved by the City Engineer, or his or her designee.
Approval by the City Engineer shall not relieve Developer from ensuring that all Public Improvements conform with all other requirements and standards set forth in this Agreement.
Quality of Work; Compliance With Laws and Codes. The construction plans and specifications for the Public Improvements shall be prepared in accordance with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements. The Public Improvements shall be completed in accordance with all approved maps, plans, specifications, standard drawings, and special amendments thereto on file with City, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements applicable at the time work is actually commenced.
Standard of Performance. Developer and its contractors, if any, shall perform all work required to construct the Public Improvements under this Agreement in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Developer represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work. Developer warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all 4 SUBDIVISION IMPROVEMENT AGREEMENT
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licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the work, and that such licenses, permits, qualifications and approvals shall be maintained throughout the term of this Agreement.
2.6 Alterations to Improvements. The Public Improvements in Exhibit "B" are understood to be only a general designation of the work and improvements to be done, and not a binding description thereof. All work shall be done and improvements made and completed as shown on approved plans and specifications, and any subsequent alterations thereto. If during the course of construction and installation of the Public Improvements it is determined that the public interest requires alterations in the Public Improvements, Developer shall undertake such design and construction changes as may be reasonably required by City. Any and all alterations in the plans and specifications and the Public Improvements to be completed may be accomplished without giving prior notice thereof to Developer's surety for this Agreement.
3.0 Use and Maintenance of Public Improvements and Landscaping. City shall not be responsible or liable for the maintenance or care of the Public Improvements until City approves and accepts them. City shall exercise no control over the Public Improvements until accepted. Any use by any person of the Public Improvements, or any portion thereof, shall be at the sole and exclusive risk of the Developer at all times prior to City's acceptance of the Public Improvements.
Developer shall maintain all the Public Improvements in a state of good repair until they are completed by Developer and approved and accepted by the City and until the security for the performance of this Agreement is released. Maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters, sidewalks, signals, parkways, water mains, and sewers; maintaining all landscaping in a vigorous and thriving condition reasonably acceptable to City; removal of debris from sewers and storm drains; and sweeping, repairing, and maintaining in good and safe condition all streets and street improvements. It shall be Developer's responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by City. If Developer fails to properly prosecute its maintenance obligation under this section, City may do all work necessary for such maintenance and the cost thereof shall be the responsibility of Developer and its surety under this Agreement.
City shall not be responsible or liable for any damages or injury of any nature in any way related to or caused by the Public Improvements or their condition prior to acceptance.
4.0 Construction Schedule. Unless extended pursuant to this Section 4.1 of this Agreement, Developer shall fully and adequately complete or have completed the Public Improvements within two (2) years of the effective date of this Agreement, unless extended pursuant to Section 4.1.
4.1 Extensions. City may, in its sole and absolute discretion, provide Developer with additional time within which to complete the Public Improvements. It is understood that by providing the security required under Section 13.0 et seq. of this Agreement, Developer and its surety consent in advance to any extension of time as may be given by City to Developer, and waives any and all right to notice of such extension(s). Developer's acceptance of an extension of 5 SUBDIVISION IMPROVEMENT AGREEMENT
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time granted by City shall constitute a waiver by Developer and its surety of all defense of laches, estoppel, statutes of limitations, and other limitations of action in any action or proceeding filed by City following the date on which the Public Improvements were to have been completed hereunder. In addition, as consideration for granting such extension to Developer, City reserves the right to review the provisions of this Agreement, including, but not limited to, the construction standards, the cost estimates established by City, and the sufficiency of the improvement security provided by Developer, and to require adjustments thereto when warranted according to City's reasonable discretion.
4.2 Accrual of Limitations Period, Any limitations period provided by law related to breach of this Agreement or the terms thereof shall not accrue until Developer has provided the City Engineer with written notice of Developer's intent to abandon or otherwise not complete required or agreed upon Public Improvements.
5.0 Grading. Developer agrees that any and all grading done or to be done in conjunction with construction of the Public Improvements or development of the Tract shall conform to all federal, state, and local laws, ordinances, regulations, and other requirements, including City's grading regulations. In order to prevent damage to the Public Improvements by improper drainage or other hazards, the grading shall be completed in accordance with the time schedule for completion of the Public Improvements established by this Agreement, and prior to City' s approval and acceptance of the Public Improvements and release of the Security as set forth in Section 13.0 et seq. of this Agreement.
6.0 Utilities. Developer shall provide utility services, including water, power, gas, and telephone service to serve each parcel, lot, or unit of land within the Tract in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the regulations, schedules and fees of the utilities or agencies providing such services. Except for commercial or industrial properties, Developer shall also provide cable television facilities to serve each parcel, lot, or unit of land in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the requirements of the cable company possessing a valid franchise with City to provide such service within City's jurisdictional limits.
All utilities shall be installed underground.
7.0 Fees and Charges. Developer shall, at its sole cost, expense, and liability, pay all tees, charges, and taxes arising out of construction of the Public Improvements, including, but not limited to, all plan check, design review, engineering, inspection, and other service fees, and any impact or connection fees established by City ordinance, resolution, regulation, or policy, or as established by City relative to the Tract.
8.0 City Inspection of Public Improvements. Developer shall, at its sole cost, expense, and liability, and at all times during construction of the Public Improvements, maintain reasonable and safe facilities and provide safe access for inspection by City of the Public Improvements and areas where construction of the Public Improvements is occurring or will occur. 6 SUBDIVISION IMPROVEMENT AGREEMENT
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9.0 Default: Notice; Remedies.
9.1 Notice. If Developer neglects, refuses, or fails to fulfill or timely complete any obligation, term, or condition of this Agreement, or if City determines there is a violation of any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, City may at any time thereafter declare Developer to be in default or violation of this Agreement and make written demand upon Developer or its surety, or both, to immediately remedy the default or violation ("Notice"). Developer shall substantially commence the work required to remedy the default or violation within ten (10) days of the Notice. If the default or violation constitutes an immediate threat to the public health, safety, or welfare, City may provide the Notice verbally, and Developer shall substantially commence the required work within twenty-four (24) hours thereof.
Immediately upon City's issuance of the Notice, Developer and its surety shall be liable to City for all costs of construction and installation of the Public Improvements and all other administrative costs expenses as provided for in Section 10.0 of this Agreement.
9.2 Failure to Remedy; City Action. If the work required to remedy the noticed default or violation is not diligently prosecuted to a completion acceptable to City within the time frame contained in the Notice, City may complete all remaining work, arrange for the completion of all remaining work, and/or conduct such remedial activity as in its sole and absolute discretion it believes is required to remedy the default or violation. All such work or remedial activity shall be at the sole and absolute cost, expense, and liability of Developer and its surety, without the necessity of giving any further notice to Developer or surety. City's right to take such actions shall in no way be limited by the fact that Developer or its surety may have constructed any, or none of the required or agreed upon Public Improvements at the time of City's demand for performance.
In the event City elects to complete or arrange for completion of the remaining work and improve- ments, City may require all work by Developer or its surety to cease in order to allow adequate coordination by City. Notwithstanding the foregoing, if conditions precedent for reversion to acreage can be met and if the interests of City will not be prejudiced thereby, City may also process a reversion to acreage and thereafter recover from Developer or its surety the full cost and expense incurred.
9.3 Other Remedies. No action by City pursuant to Section 9.0 et seq. of this Agreement shall prohibit City from exercising any other right or pursuing any other legal or equitable remedy available under this Agreement or any federal, state, or local law. City may exercise its rights and remedies independently or cumulatively, and City may pursue inconsistent remedies. City may institute an action for damages, injunctive relief, or specific performance.
10.0 Administrative Costs. If Developer fails to construct and install all or any part of the Public Improvements within the time required by this Agreement, or if Developer fails to comply with any other obligation contained herein, Developer and its surety shall be jointly and severally liable to City for all administrative expenses, fees, and costs, including reasonable attorney's fees and costs, incurred in obtaining compliance with this Agreement or in processing 7 SUBDIVISION IMPROVEMENT AGREEMENT
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any legal action or for any other remedies permitted by law.
11.0 Acceptance of Improvements; As-Built or Record Drawings. If the Public Improvements are properly completed by Developer and approved by the City Engineer, and if they comply with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements, the City Council shall be authorized to accept the Public Improvements. The City Council may, in its sole and absolute discretion, accept fully completed portions of the Public Improvements prior to such time as all of the Public Improvements are complete, which shall not release or modify Developer's obligation to complete the remainder of the Public Improvements within the time required by this Agreement. Upon the total or partial acceptance of the Public Improvements by City, Developer shall file with the Recorder's Office of the County of Riverside a notice of completion for the accepted Public Improvements in accordance with California Civil Code section 3093, at which time the accepted Public Improvements shall become the sole and exclusive property of City without payment therefor. If tracts are approved and recorded as a single phase map, City shall not accept any one or more of the improvements until all of the Public Improvements are completed by Developer and approved by City. Issuance by City of occupancy permits for any buildings or structures located on the Property shall not be construed in any manner to constitute City's acceptance or approval of any Public Improvements. Notwithstanding the foregoing, City may not accept any Public Improvements unless and until Developer provides one (1) set of "as-built" or record drawings or plans to the City Engineer for all such Public Improvements. The drawings shall be certified and shall reflect the condition of the Public Improvements as constructed, with all changes incorporated therein.
12.0 Warranty and Guarantee. Developer hereby warrants and guarantees all Public Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement for a period of one (1) year following completion of the work and acceptance by City ("Warranty"). During the Warranty, Developer shall sweep the streets within the Property and shall maintain all landscaping within the Property in a vigorous and thriving condition as determined by the City and shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the Public Improvements in accordance with the current ordinances, resolutions, regulations, codes, standards, or other requirements of City, and to the approval of the City Engineer. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of Developer and its surety. As to any Public Improvements that have been repaired, replaced, or reconstructed during the Warranty, Developer and its surety hereby agree to extend the Warranty for an additional one (1) year period following City's acceptance of the repaired, replaced, or reconstructed Public Improvements. Nothing herein hall relieve Developer from any other liability it may have under federal, state, or local law t epair, replace, or reconstruct any Public Improvement following expiration of the Warranty o any extension thereof. Developer's warranty obligation under this section shall survive the expiration or termination of this Agreement.
13.0 Security; Surety Bonds. Prior to execution of this Agreement, Developer or LGI 8 SUBDIVISION IMPROVEMENT AGREEMENT
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shall provide City with surety bonds in the amounts and under the terms set forth below ("Security"). The amount of the Security shall be based on the City Engineer's approximation of the actual cost to construct the Public Improvements, including the replacement cost for all landscaping ("Estimated Costs"). If City determines, in its sole and absolute discretion, that the Estimated Costs have changed, Developer or LGI (as applicable) shall adjust the Security in the amount requested by City. Developer's compliance with this provision (Section 13.0 et seq.) shall in no way limit or modify Developer's indemnification obligation provided in Section 16.0 of this Agreement.
13.1 Performance Bond. To guarantee the faithful performance of the Public Improvements and all the provisions of this Agreement, to protect City if Developer is in default as set forth in Section 8.0 et seq. of this Agreement, and to secure Developer's one-year guarantee and warranty of the Public Improvements, including the maintenance of all landscaping in a vigorous and thriving condition, Developer or L.GI shall provide City a faithful performance bond in the amount of three million, six hundred eighty-two thousand, five hundred forty-two dollars ($3,682,542), which sum shall be not less than one hundred twenty percent (120%) of the Estimated Costs. The City Council may, in its sole and absolute discretion and upon recommendation of the City Engineer, partially release a portion or portions of the security provided under this section as the Public Improvements are accepted by City, provided that Developer is not in default on any provision of this Agreement or condition of approval for the Tract, and the total remaining security is not less than twenty-five percent (25%) of the Estimated Costs. All security provided under this section shall be released at the end of the Warranty period, or any extension thereof as provided in Section 12.0 of this Agreement, provided that Developer is not in default on any provision of this Agreement or condition of approval for the Tract.
13.2 Labor & Material Bond. To secure payment to the contractors, subcontractors, laborers, material men, and other persons furnishing labor, materials, or equipment for performance of the Public Improvements and this Agreement, Developer or LGI shall provide City a labor and materials bond in the amount of three million, six hundred eighty-two thousand, five hundred forty-two dollars ($3,682,542), which sum shall not be less than one hundred twenty percent (120%) of the Estimated Costs. The security provided under this section may be released by written authorization of the City Engineer after six (6) months from the date City accepts the final Public Improvements. The amount of such security shall be reduced by the total of all stop notice or mechanic's lien claims of which City is aware, plus an amount equal to twenty percent (20%) of such claims for reimbursement of City's anticipated administrative and legal expenses arising out of such claims.
13.3 Additional Requirements. The surety for any surety bonds provided as Security shall have a current A.M. Best's rating of no less than A:VIII, shall be licensed to do business in California, and shall be satisfactory to City. As part of the obligation secured by the Security and in addition to the face amount of the Security, the Developer or its surety shall secure the costs and reasonable expenses and fees, including reasonable attorney's fees and costs, incurred by City in enforcing the obligations of this Agreement. The Developer and its surety stipulate and 9 SUBDIVISION IMPROVEMENT AGREEMENT
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agree that no change, extension of time, alteration, or addition to the terms of this Agreement, the Public Improvements, or the plans and specifications for the Public Improvements shall in any way affect its obligation on the Security.
13.4 Evidence and Incorporation of Security. Evidence of the Security shall be provided on the forms set forth in Exhibit "C", unless other forms are deemed acceptable by the City Engineer and the City Attorney, and when such forms are completed to the satisfaction of City, the forms and evidence of the Security shall be attached hereto as Exhibit "C" and incorporated herein by this reference.
13.3 Ll Consent. Ll expressly agrees that if LGi is the Party who posted the Security that is in effect as of the time events occur that entitle the City to exercise its rights against the Security, the City may do so even if LGI has not yet purchased the Property and become the "Developer" hereunder. LGI shall ensure that the bonds will be enforceable regardless of the identity of the "Developer" at the time of such events.
14.0 Monument Security. Prior to City's execution of this Agreement, to guarantee payment to the engineer or surveyor for the setting of all subdivision boundaries, lot corners, and street centerline monuments for the Tract in compliance with the applicable provisions of City's Municipal and/or Development Code ("Subdivision Monuments"), Developer or LGI shall deposit cash with City in the amount of ninety thousand ($90,000), which sum shall not be less than one hundred percent (100%) of the costs of setting the Subdivision Monuments as determined by the City Engineer. Said cash deposit may be released by written authorization of the City Engineer after all required Subdivision Monuments are accepted by the City Engineer, City has received written acknowledgment of payment in full from the engineer or surveyor who set the Subdivision Monuments, and provided Developer is not in default of any provision of this Agreement or condition of approval for the Tract.
15.0 Lien. To secure the timely performance of Developer's obligations under this Agreement, including those obligations for which security has been provided pursuant to Sections
13.0 et seg. and 14.0 of this Agreement, Developer hereby creates in favor of City a lien against all portions of the Property not dedicated to City or some other governmental agency for a public purpose. As to Developer's default on those obligations for which security has been provided pursuant to Sections 13.0 et seq. and 14.0 of this Agreement, City shall first attempt to collect against such security prior to exercising its rights as a contract lienholder under this section.
16.0 Indemnification. Developer shall defend, indemnify, and hold harmless City, its elected officials, officers, employees, and agents from any and all actual or alleged claims, demands, causes of action, liability, loss, damage, or injury, to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state, or local governmental body or agency, arising out of or incident to any acts, omissions, negligence, or willful misconduct of Developer, its personnel, employees, agents, or contractors in connection with or arising out of construction or maintenance of the Public Improvements, or 10 SUBDIVISION IMPROVEMENT AGREEMENT
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performance of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys' fees, and related costs or expenses, and the reimbursement of the City, its elected officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of them. This indemnification excludes only such portion of any claim, demand, cause of action, liability, loss, damage, penalty, fine, or injury, to property or persons, including wrongful death, which is caused solely and exclusively by the negligence or willful misconduct of the City as determined by a court or administrative body of competent jurisdiction. Developer's obligation to indemnify shall survive the expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its elected officials, officers, employees, or agents.
16.1 Public Works Determination. Developer has been alerted to the requirements of California Labor Code section 1770 et seq., including, without limitation S.B. 975, which require the payment of prevailing wage rates and the performance of other requirements if it is determined that this Agreement constitutes a public works contract. It shall be the sole responsibility of Developer to determine whether to pay prevailing wages for any or all work required by this Agreement. As a material part of this Agreement, Developer agrees to assume all risk of liability arising from any decision not to pay prevailing wages for work required by this Agreement.
17.0 Insurance.
17.1 Types; Amounts. Developer shall procure and maintain, and shall require its contractors to procure and maintain, during construction of any Public Improvement pursuant to this Agreement, insurance of the types and in the amounts described below ("Required Insurance"). If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Agreement or be no less than two times the specified occurrence limit.
17.1.1 General Liability. Developer and its contractors shall procure and maintain occurrence version general liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence for bodily injury, personal injury, and property damage.
17.1.2 Business Automobile Liability. Developer and its contractors shall procure and maintain business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for the ownership, operation, maintenance, use, loading, or unloading of any vehicle owned, leased, hired, or borrowed by the insured or for which the insured is responsible. 11 SUBDIVISION IMPROVEMENT AGREEMENT
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17.1.3 Workers' Compensation. Developer and its contractors shall procure and maintain workers' compensation insurance with limits as required by the Labor Code of the State of California and employers' liability insurance with limits of not less than $1,000,000 per occurrence, at all times during which insured retains employees.
17.1.4 Professional Liability. For any consultant or other professional who will engineer or design the Public Improvements, liability insurance for errors and omissions with limits not less than $1,000,000 per occurrence, shall be procured and maintained for a period of five (5) years following completion of the Public Improvements. Such insurance shall be endorsed to include contractual liability.
17.2 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected officials, officers, employees, agents, and volunteers; or (b) Developer and its contractors shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses.
17.3 Additional Insured; Separation of Insureds. The Required Insurance shall name City, its elected officials, officers, employees, agents, and volunteers as additional insureds with respect to work performed by or on behalf of Developer or its contractors, including materials, parts, or equipment furnished in connection therewith. The Required Insurance shall contain standard separation of insureds provisions, and shall contain no special limitations on the scope of its protection to City, its elected officials, officers, employees, agents, and volunteers.
17.4 Primary Insurance: Waiver of Subrogation. The Required Insurance shall be primary with respect to any insurance or self-insurance programs covering City, its elected officials, officers, employees, agents, and volunteers. All policies for the Required Insurance shall provide that the insurance company waives all right of recovery by way of subrogation against City in connection with any damage or harm covered by such policy.
17.5 Certificates: Verification. Developer and its contractors shall furnish City with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by City before work pursuant to this Agreement can begin. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
17.6 Term; Cancellation Notice. Developer and its contractors shall maintain the Required Insurance for the term of this Agreement and shall replace any certificate, policy, or endorsement which will expire prior to that date. All policies shall be endorsed to provide that the Required Insurance shall not be suspended, voided, reduced, canceled, or allowed to expire except on 30 days' prior written notice to City.
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17.7 Insurer Rating. Unless approved in writing by City, all Required Insurance shall be placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least A:VIII.
18.0 Signs and Advertising. Developer understands and agrees to City's ordinances, regulations, and requirements governing signs and advertising structures. Developer hereby agrees with and consents to the removal by City of all signs or other advertising structures erected, placed, or situated in violation of any City ordinance, regulation, or other requirement. Removal shall be at the expense of Developer and its surety. Developer and its surety shall indemnify and hold City free and harmless from any claim or demand arising out of or incident to signs, advertising structures, or their removal.
19.0 Relationship Between the Parties. The Parties hereby mutually agree that neither this Agreement, any map related to the Tract, nor any other related entitlement, permit, or approval issued by City for the Property shall operate to create the relationship of partnership, joint venture, or agency between or among City, Developer, and LGI. Developer's contractors and subcontractors are exclusively and solely under the control and dominion of Developer. Nothing herein shall be deemed to make Developer or its contractors an agent or contractor of City.
19.1 If LGI completes any obligations of "Developer" under this Agreement prior to the assignment of this Agreement to LGI, LGI shall be responsible and fully liable to the City for compliance with all terms and conditions of this Agreement applicable to such obligations, to the same extent as such terms and conditions apply to Developer; and LGI shall indemnify and defend the City pursuant to Section 16.0 (the indemnification provisions in this Agreement) for any acts, omissions, negligence, or willful misconduct of LGI, its personnel, employees, agents, or contractors consistent with the indemnification obligations of Developer under Section 16.0.
20.0 General Provisions.
20.1 Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority make this Agreement and bind each respective Party.
20.2 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.
20.3 Construction; References: Captions. It being agreed the Parties of their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. All references to Developer include all personnel, employees, agents, and subcontractors of 13 SUBDIVISION IMPROVEMENT AGREEMENT
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:
Developer, except as otherwise specified in this Agreement. All references to City include its lected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this
20.4 Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:
CITY: DEVELOPER:
City of San Jacinto SanJac 55, LLC
J9S S. San Jacinto Avenue 265 Sunrise Highway, Suite 1515 San Jacinto, CA 92583 Rockville Centre, NY 11570
Attn: City Manager Attn: Paul A. Rackmuth, Esq.
(951) 487-7330
LGI:
LGI Homes - California, LLC
495 E Rincon St #101
Corona CA 92879
Attn: Tim Roberts
Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as of the date and time sent; by messenger, as of the date delivered; and by U.S. Mail first class postage prepaid, as of 72 hours after deposit in the U.S. Mail.
20.5 Amendment: Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
20.6 Waiver. City's failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or City's waiver of any breach of this Agreement, shall not relieve Developer of any of its obligations under this Agreement, whether of the same or similar type. The foregoing shall be true whether City's actions are intentional or unintentional. Developer agrees to waive, as a defense, counterclaim or set off, any and all defects, irregularities or deficiencies in the authorization, execution or performance of the Public Improvements or this Agreement, as well as the laws, rules, regulations, ordinances or resolutions of City with regards to the authorization, execution or performance of the Public Improvements or this Agreement.
20.7 Conditional Release of Owner. If Developer conveys all of its fee interest 14 SUBDIVISION IMPROVEMENT AGREEMENT
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in the Property to LGI, LGI shali assume all of Developer's obligations under this Agreement pursuant to a written acknowledgment and assumption of all obligations under this Agreement (including those related to posted Security, in a form approved by the City Attorney, at which time LGI shall be solely responsible for the construction, completion, and warranty of all required Public Improvements, as well as the provision of the Security,, and Developer shall be automatically released from any further obligations under this Agreement without further City Council action, provided the following conditions are met:
a) The City Manager, with approval of the City Attorney as to form, confirms receipt of the assumption and supporting documentation; b) Title documentation acceptable to the City confirms the conveyance of fee title to LGI; and
c) The Security remains valid and enforceable with LGI named as principal.
Following satisfaction of the above, the City shall execute an acknowledgement of release for Developer.
20.8 Conditions Related to Termination of Purchase Contract; Assignment or Transfer of Agreement. If the contract for purchase of the Property between Developer and LGI is terminated for any reason, Developer shall replace the Security of LGI, and Developer and the City shall execute a new agreement that releases LGI from any obligations under this Agreement.
Replacement Security shall be provided in a form and amount consistent with this Agreement and acceptable to the City within such timeframe as required by the purchase and sale agreement between Developer and LGI, or within thirty (30) days of written demand by the City. If Developer fails to provide such replacement Security within the time required, the City may initiate proceedings to revert the Property to acreage pursuant to Government Code section 66499.11 et seq. or pursue any other legal or equitable remedy available to ensure protection of the public interest. Developer agrees that it shall not contest such proceedings. The City shall be entitled to recover from Developer the full cost and expense incurred related to such proceedings.
With the exception of the foregoing, Developer and LGI shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of City. Any attempt to do so shall be null and void, and any assignee, hypothecate, or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer. Unless specifically stated to the contrary in City's written consent, any assignment, hypothecation, or transfer shall not release or discharge Developer from any duty or responsibility under this Agreement.
20.9 Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation. 15 SUBDIVISION IMPROVEMENT AGREEMENT
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20.10 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.
20.11 Invalidity: Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties' activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Riverside, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Developer expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394.
20.13 Attorneys' Fees and Costs. If any arbitration, lawsuit, or other legal action or proceeding is brought by one Party against the other Party in connection with this Agreement or the Property, the prevailing party, whether by final judgment or arbitration award, shall be entitled to and recover from the other party all costs and expenses incurred by the prevailing party, including actual attorneys' fees ("Costs"). Any judgment, order, or award entered in such legal action or proceeding shall contain a specific provision providing for the recovery of Costs, which shall include, without limitation, attorneys' and experts' fees, costs and expenses incurred in the following: (a) post judgment motions and appeals, (b) contempt proceedings, (c) garnishment, levy, and debtor and third party examination, (d) discovery, and (e) bankruptcy litigation. This section shall survive the termination or expiration of this Agreement.
20.14 Counterparts. This Agreement may be executed in counterpart originals, which taken together, shall constitute one and the same instrument. : [SIGNATURES ON FOLLOWING PAGE]
SUBDIVISION IMPROVEMENT AGREEMENT
(Updated: 2019)
24438. J0000\32065804.2
:
SIGNATURE PAGE TO
SUBDIVISION IMPROVEMENT AGREEMENT
PARCEL/TRACT NO. 28224
CITY OF SAN JACINTO
a California municipal corporation SANJAC 55, LLC,
a California limited liability Company
By:
Rob Johnson, City Manager By:
(signature)
Name:
Its:
Dated: _ , 2025
Dated: _ 2025
ATTEST: LGI HOMES - CALIFORNIA, LLC
a California limited liability company
By:
Julia Espinoza, City Clerk By:
(signature 2o barts Tim
Name:
City Clerk Its: officer
City of San Jacinto
Dated: July 10 _ 2025
APPROVED AS TO LEGAL FORM:
By:
Best Best & Krieger LLP
Name:
City Attorney
NOTE: DEVELOPER'S SIGNATURES SHALL BE DULY NOTARIZED, AND
APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE
REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR
OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S
BUSINESS ENTITY.
17 SUBDIVISION IMPROVEMENT AGREEMENT
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AGREEMENT FOR COMPLETION OF PUBUL IMPROVEMENTS
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 RIVERSIDE
on 7110/2025 before me, Z: VALENCIA, NUTARY PUBUL
(insert name and title of the officer)
JMOTHY D. RUBERTS
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
S. VALENCIA
WITNESS COMM. # 2500955
hand and official seal NOTARY PUBLIC • CALIFORNIA O
RIVERSIDE COUNTY
COMM. EXPIRES SEPT. 28, 20281
(Seal)
SIGNATURE PAGE TO
SUBDIVISION IMPROVEMENT AGREEMENT
PARCEL/TRACT NO. 28224
CITY OF SAN JACINTO
a California municipal corporation SANJAC 55, LLC,
a California limited liability Company
By:
Rob Johnson, City Manager By: DI k
signatu
Name: Danil V. Schreiher
Its: Managing member
Dated: _ 2025
Dated: July 1o _ 2025
ATTEST: LGI HOMES - CALIFORNIA, LLC
a California limited liability company
By:
Julia Espinoza, City Clerk By:
(signature)
Name:
City Clerk Its:
City of San Jacinto
Dated: _ 20_
APPROVED AS TO LEGAL FORM:
By:
Best Best & Krieger LLP
Name:
City Attorney
NOTE: DEVELOPER'S SIGNATURES SHALL BE DULY NOTARIZED, AND
APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE
REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR
OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S
BUSINESS ENTITY.
SUBDIVISION IMPROVEMENT AGREEMENT
(Updated: 2019)
24438. J0000\32065804.2
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 I notary public or other officer completing this certificate verifies only the identity of the individual who signed th locument to which this certificate is attached, and not the truthfulness, accuracy, or validity of that documen State of California
County of Los Angeles )
on July 10, 2025 before mo,. Edwin Alonso Martinez, Notary Public Here Insert Name and Title of the Officer
personally appeared Daniel J. Schreiber
Name(s) of Signer(8)
who proved to me on the basis of satisfactory evidence to be the person(p) whose name(ø) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/hor/their signature(g) on the instrument the person(s), or the entity upon behalf of which the person(p) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.
EDWIN ALONSO MARTINEZ WITNESS my hand and official seal.
Notary Public - California
Los Angeles County
Commission #2414722
My Comm. Expires Sep 4, 2026 Signature EA
Signature of Notary Publie
Place Notary Seal Above
— OPTIONAL •
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: Agreemart far Completion of Public Improvements Document Date:
Signers) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: Signer's Name:
• Corporate Officer - Title(s): • Corporate Officer - Title(s):
• Partner - • Limited • General • Partner - • Limited • General • individual • Attorney in Fact • Individual • Attorney in Fact • Trustee • Guardian or Conservator • Trustee • Guardian or Conservator • Other: • Other:
Signer Is Representing: Signer Is Representing:
©2016 National Notary Association • www.NationaiNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
TRACT MAP NO. 28224, BEING A PORTION OF PARCEL 3 OF PARCEL MAP NO. 22041 AS SHOWN BY MAP ON FILE IN BOOK 149, PAGES 70 AND 71 OF PARCEL
MAPS, RECORDS OF RIVERSIDE COUNTY, STATE OF CALIFORNIA, IN SECTION 36, TOWNSHIP 4 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, AND IN PROTRACTED SECTION 31, TOWNSHIP 4 SOUTH, RANGE 1 EAST.
......
SUBDIVISION IMPROVEMENT AGREEMENT
(Updated: 2019)
24438.J0000\32065804.2
Exhibit A
EXHIBIT "B"
LIST OF PUBLIC IMPROVEMENTS
The bonds amounts are based on the approved Engineer's Estimate, prepared by Jeff A, dated July 8, 2022. The improvements include:
1. Sewer & Water Plans, Maravilla - Tract No. 282245
2. Street Improvement Plans, Maravilla - Tract No. 28224
3. Maravilla On-Site Street Light Plan, Tr 28224
4. Storm Drain Improvement Plans, Maravilla - Tract No. 28224 ...
... ..
SUBDIVISION IMPROVEMENT AGREEMENT
(Updated: 2019)
24438.J0000\32065804.2
Exhibit B
EXHIBIT "C"
SURETY BONDS AND OTHER SECURITY
PARCEL/TRACT NO. 28224
As evidence of understanding the provisions contained in this Agreement, and of the Developer's intent to comply with same, the Developer has submitted the below described security in the amounts required by this Agreement, and has affixed the appropriate signatures thereto:
PERFORMANCE BOND PRINCIPAL AMOUNT: $3,682,642
Surety: Harco National Insurance Company
Attorney-in-fact: Grace J Gray
Address: 4200 Six Forks Road, Suite 1400, Raleigh, NC 27609 MATERIAL AND LABOR BOND PRINCIPAL AMOUNT: $3,682,642
Surety: Harco National Insurance Company
Attorney-in-fact: Grace J Gray
Address: 4200 Six Forks Road, Suite 1400, Raleigh, NC 27609 CASH MONUMENT SECURITY: $90,000
Amount deposited per Cash Receipt No. Date:
:
SUBDIVISION IMPROVEMENT AGREEMENT
Exhibit C
(Updated: 2019)
24438.J0000\32065804.2
SAI
TACINTO
BOND NO. 3000776
INITIAL PREMIUM: Included in Performance Bond premium
SUBJECT TO RENEWAL
CITY OF SAN JACINTO
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT NO. 28224
LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS the City of San Jacinto, California ("City") and LGI Homes - California, LLC ("Developer"' or "Principal"), have or will execute an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Tract Map No.28224 ("Public Improvements");
WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Agreement for Completion of Public Improvements dated, for reference purposes, as of 7/10/2s
WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and
WHEREAS, Principal is required to furnish a bond in connection with the Improvement Agreement providing that if Principal or any of its subcontractors shall fail to pay for any materials, provisions, or other supplies, or terms used in, upon, for, or about the performance of the Public Improvements, or for any work or labor done thereon of any kind, or for amounts due under the provisions of Title 15 (commencing with section 3082) of Part 4 of Division 3 of the California Civil Code, with respect to such work or labor, that the Surety on this bond will pay the same together with a reasonable attorney's fee in case suit is brought on the bond NOW, THEREFORE, Principal and _Harco National Insurance Company nation organised and exisir calderie, are bet and mor bound unto City andal to contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the agreement and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the sum of three million, six hundred eighty-two thousand, five hundred forty-two dollars ($3,682,542),, said sum being not less than one hundred twenty percent (120%) of the total cost of the Public Improvements as set forth in to the Improvement Agreement, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that 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 county City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein This bond is executed and filed to comply with Section 66499 et seg. of the 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.
Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to the work or to the specifications.
IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at MountainOne Insurance Agency _ this 18th day of_June , 20 25 Principal LGI Homes - California, LLC Surety Harco National Insurance Company By: By:
Charles Merdian, Chief Financial Officer Grace J Gray Attorney-In Fact (print name) (print name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION
BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF
ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING
COMPANY MUST BE ATTACHED TO THIS BOND.
POWER OF ATTORNEY Bond # 3000776
HARCO NATIONAL INSURANCE COMPANY
INTERNATIONAL FIDELITY INSURANCE COMPANY
Member companies of IAT Insurance Group, Headquartered: 4200 Six Forks Rd, Suite 1400, Raleigh, NC 27609 ERIC P. PRATT, GRACE J. GRAY, KATHLEEN M. O'BRIEN, DONNA M. BISHOP North Adams, MA
their true and lawful attorneys)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of HARCO NATIONAL INSURANCE COMPANY and NTERNATOAFLINSURANCE COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 13th day of December, 2018 Directors of HARCO NATIONAL INSURANCE COMPANY at a meeting held on the 13th day of December, 2018. "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Senior Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attomeys-in-fact with authority to execule waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF, HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY have each executed and attested these presents on this 31st day of December, 2024
aL INSUR
STATE OF NEW JERSEY STATE OF ILLINOIS
CORPOR County of Essex CORPORAT
SEAL County of Cook
SEAL 8
1904 1994
PAY TEREN MELINOIS
Kenneth Chapman
Executive Vice President, Harco National Insurance Company and International Fidelity Insurance Company
On this 31st day of December, 2024 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies.
LE A. OU IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.
NOTARY
5007981 Shucke Q. Overy
Shirelle A. Outley a Notary Public of New Jersey
My Commission Expires April 4, 2023
CERTIFICATION
1, the undersigned officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof, and of the IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, June 18, 2025 Penel tauto
A00757
Irene Martins, Assistant Secretary
State of
SS.
County of
wledgement
On this day of , 20
before me personally came
Individual Acknowled
and known to me to be the individual described in and who executed the foregoing instrument, and acknowledged to me that he executed the My commission expires
Notary Public
State of
SS.
County of
On this. -day of ,20
Acknowledgement before me personally came
Firm
to be known to me
to be a member of the firm of
described in and who executed the foregoing instrument, and he thereupon acknowledged to me that he executed the same as and for the act and deed of said firm.
My commission expires
Notary Public
State of Texas
SS.
County of - Mortyonry
On this 26 day of JUnL , 20_25. before me personally came Corporation Acknowledgement
Charles Merdian
to be known to me
who being by me duly sworn, did depose and say that he is the Chilt Financial oFficer the corporation described in and which executed the above instrument that he knows the seal of said corporation; the the seal afixed to said LGI HoMes - California LUC instrument is such corporate seal;that it was so affixed by order of the Board of Directors of said corporation, and that he signed his name thereto by like order.
My commission expires March 13 2028
Notary Public
NICHOLAS SANDOVAL
Notary ID #134805978
State of Massachusetts My Commission Expires
March 13, 2028
Berkshire • SS.
County of
On this 18th day of June
, 20 25 before me personally came
Surety Acknowledgement
Grace J. Gray to be known, who, being by me duly sworn, did depose and say that he is attorney-in-fact of Harco National Insurance Company the corporation described in and which executed the above instrument; that he knows the corporate seal of said corporation; that the seal affixed to the within instrument is such corporate seal, and that he signed t saidinstrUment and affixed the said seal as Attorney-in-Fact by authority of the Board of Directors of said corporation and by authority s Slanding Resolutions thereof.
FORM # 13
SAN
TACINTO
BOND NO. 3000776
INITIAL PREMIUM: $48,873.00
SUBJECT TO RENEWAL
CITY OF SAN JACINTO
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT NO. 28224
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS the City of San Jacinto, California ("City") and LGI Homes - California, LLC ("Developer" or "Principal"), have or will execute an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for the completion of Tract Map No. 28224 ("Public Improvements");
WHEREAS, the Public Improvements to be performed by Principal are more patienta puse sorth in that /in Agreement for Completion of Public Improvements dated, for WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and
WHEREAS, Principal is required by the Improvement Agreement to provide a good and sufficient bond for performance of the Improvement Agreement, and to guarantee and warranty the Public Improvements constructed thereunder.
NOW, THEREFORE, Principal and Harco National Insurance Company ("Surety"), a corporation organized and existing under the laws of the State of Illinois and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City in the sum of three million, six hundred eighty-two thousand, five hundred forty- two dollars ($3,682,542), , said sum being not less than one hundred twenty percent (120%) of the cost of the Public Improvements as set forth in Improvement Agreement, we bind ourselves, our heirs, executors, administrators, successors or assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION is such, that if 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, agreements, guarantees, warranties and provisions in the Improvement 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 intent and meaning, and shall indemnify and save harmless City, its officers, employees, and agents, as therein stipulated in the Improvement Agreement, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.
As part of the obligation secured hereby, and in addition to the face amount specified therefor, 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.
Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to the work or to the specifications.
Goverment Code of calis exes sed unil for per maple orth improvemen Agreemenf and security for the one-year guarantee and warranty of the Public Improvements.
IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at MountainOne Insurance Agency _, this 18th day of June Principal LGI Homes - California, LLC Surety Harco National Insurance Company By: By: _ Dece A tray
Charles Merdian Grace J Gray
Chief Financial Officer Attorney-In-Fact
(print name) (print name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION BY
PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF
ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING
COMPANY MUST BE ATTACHED TO THIS BOND.
POWER OF ATTORNEY Bond # 3000776
HARCO NATIONAL INSURANCE COMPANY
INTERNATIONAL FIDELITY INSURANCE COMPANY
Member companies of IAT Insurance Group, Headquartered: 4200 Six Forks Rd, Suite 1400, Raleigh, NC 27609 KNOW ALL MEN BY THESE PRESENTS: That HARCO NATIONAL INSURANCE COMPANY, a corporation organized and existing under the laws of the State of illinois, and INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and having their principal offices located respectively in the cities of Rolling Meadows, Illinois and Newark, New Jersey, do hereby conslitute and appoint
ERIC P. PRATT, GRACE J. GRAY, KATHLEEN M. O'BRIEN, DONNA M. BISHOP North Adams, MA
their true and lawful attorneys)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instruments) in pursuance of these presents, shall be as binding upon the said HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.
This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of HARCO NATIONAL INSURANCE COMPANY Directors of HARCO NATIONAL INSURANCE COMPANY at a meeting held on the 13th day of December, 2018. "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Senior Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execule waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF, HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY have each executed and attested these presents on this 31st day of December, 2024
DELIT HAL INSU
STATE OF NEW JERSEY STATE OF ILLINOIS
County of Essex County of Cook
SEAL SEAL
1904 7084
ELINOR
Kenneth Chapman
Executive Vice President, Harco National Insurance Company and International Fidelity Insurance Company
On this 31st day of December, 2024 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies LEA. IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.
NOTARY
ShuckeR. Outtey
Shirelle A. Outley a Notary Public of New Jersey l
My Commission Expires April 4, 2023
CERTIFICATION
1, the undersigned officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY do hereby certify that 1 have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originats on file in the home office of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.
IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, June 18, 2025 Rever lates
A00757
Irene Martins, Assistant Secretary
State of
SS.
County of
Acknowledgement On this day of , 20 , before me personally came Individual
to be known,
and known to me to be the individual described in and who executed the foregoing instrument, and acknowledged to me that he executed the My commission expires
Notary Public
State of
SS.
County of
On this. -day of , 20 before me personally came
Firm Acknowledgement
to be known to me
to be a member of the firm of
described in and who executed the foregoing instrument, and he thereupon acknowledged to me that he executed the same as and for the act and deed of said firm.
My commission expires
Notary Public
State of Texas
SS.
County of Montyomery
On this 26 _ day of June ,20 25. before me personally came Corporation Acknowledgement
Charles Merdian to be known to me
who being by me duly sworn, did depose and say that he is the Chief Financial oFFic ine corporation described in and which executed the above instrument that he knows the seal of said corporation; the the seal affixed to said Homes - califuran ulc instrument is such corporate seal;that it was so affixed by order of the Board of Directors of said corporation, and that he signed his name thereto by like order.
My commission expires March 13 2028
Notary Public
NICHOLAS SANDOVAL
Massachusetts Notary ID #134805978
State of My Commission Expires
SS. March 13, 2028
County of Berkshire
On this 18th day of June , 20 25
before me personally came
Surety Acknowledgement
Grace J. Gray to be known, who, being by me duly sworn, did depose and say that he is attorney-in-fact of Harco National Insurance Company the corporation described in and which executed the above instrument: that he knows the corporate seal of said corporation; that the seal affixed to the within instrument is such corporate seal, and that he signed hersaid ich ifstrument and affixed the said seal as Attorney-in-Fact by authority of the Board of Directors of said corporation and by authort the Standing Resolutions thereof.
Donferme
FORM # 13