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HomeMy WebLinkAbout14 - Tract 16468 - Subdivision Improvement AgreementCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 14 June 8, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Fong Tse, P.E. 949 - 644 -3324 ftse@city.newport-beach.Ga.us SUBJECT: APPROVAL FOR SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT NO. 16468 DEVELOPER: SHEA HOMES RECOMMENDATIONS: 1. Approve a Subdivision Improvement Agreement guaranteeing the completion of the public improvements required by Tract Map No. 16468. 2. Authorize the Mayor and the City Clerk to execute the Agreement. DISCUSSION: Tract No. 16468, also known as One Nautical Mile, is located on the southerly side of 15th Street between Placentia Avenue and Monrovia Avenue. The Conditions of Approval required the construction of Rublic storm drain, sanitary sewer, street lighting, and street improvements along the 15t Street frontage. The Developer, Shea Homes, desires to record the tract map prior to completing the required public improvements. In order to guarantee completion of the public improvements, the developer has executed an Agreement for Construction of Improvements which establishes the Developer's obligation to complete the public improvements. Accordingly, Shea Homes has provided the accompanying security in the form of bonds. The faithful performance surety and the labor and materials surety are in the amount of One Hundred and Thirty -Five Thousand Dollars ($135,000.00) each. These amounts are sufficient to cover the cost of constructing the public improvements in the event that Shea Homes fails to satisfactorily complete the work. Subject: Approval for Subdivision Improvements Agreement for Tract No. 16468 June B, 2004 Page: 2 Environmental Review: Not applicable. Prepared y: Fong T P.E. Civil Engineer Submitted by: Attachments: Exhibit Agreement for Construction Improvements Subdivision Faithful Performance Bond Subdivision labor and Materials Bond fn G. Badum Works Director PRODUCTION PLACE � � I�i IW NOT TO SCALE -------- ----- - 15TH STREET ONE NAUTICAL MILE TOWNHOMES R, HOSPITAL ROAD ... ... .... . ...... . ------- LOCATION MAP\,) HOAG DEVELOPMENT LOCATiOK/ No. HOSPITAL TRACT N0. 16468 SUBDIVISION EXHIBIT AGREEMENT FOR CONSTRUCTION OF IMPROVEMENTS (TRACT NO. 16468) THIS AGREEMENT, made and entered into this 30 day of 4p i-r 2001 by and between Shea- Horne s Lr rn r-ied Yea 4ner^s h whose business address is &C 3 S - Vt - E riGl! ue.nuE -, ,CA hereinafter referred to as "SUBDIVIDER" and the CITY OF NEWPORT BEACH, a municipal corporation, organized and existing under and by virtue of its Charter and the Constitution and the laws of the State of California, hereinafter referred to as "CITY"; WITNESSETH: WHEREAS, SUBDIVIDER }proposes to subdivide land within the City of Newport Beach to be known as TractfResubdivision No. I &H (0 5 (hereinafter "Subdivision ") pursuant to provisions of the of the Subdivision Map Act of the State of California and the CITY's ordinances and regulations relating to the filing, approval and recordation of subdivision maps, collectively referred to in this Agreement as the "Subdivision Laws "; and WHEREAS, Subdivision has been approved; subject to Subdivision Laws and to certain requirements and conditions of approval, which are incorporated into this Agreement by reference ("Conditions of Approval "); and WHEREAS, in consideration of approval of the Subdivision by the CITY, SUBDIVIDER desires to enter into this Agreement, whereby the SUBDIVIDER promises to install and complete, at SUBDIVIDER'S own expense, street and other public improvement work required by the Conditions of Approval in connection with the proposed subdivision, (the "Improvements ") which Improvements, without limitation by enumeration consists of the construction storm drain, sanitary sewer, domestic water, and street lighting systems and the reconstruction of sidewalk, curb and gutter, and roadway pavement within the 15'" Street public right- of-way fronting Tract No. 16468.. The above description of work is understood to be only a general description of the Improvements, and not a binding description. WHEREAS, complete plans for the construction, installation and completion of the Improvements shall be prepared by SUBDIVIDER and approved by the City Engineer, (the "Improvement Plans "). All references in this Agreement to the Improvement Plans shall include reference to any specifications for the Improvements as approved by the City Engineer, and WHEREAS, SUBDIVIDER recognizes that by approval of the map, CITY has conferred substantial rights upon SUBDIVIDER, including the right to see[, lease, or finance the lots within the Subdivision, and has taken the final act necessary to subdivide the property within the Subdivision. As a result CITY will be damaged to the extent of the cost of installation of the Improvements by SUBDIVIDER's failure to perform its obligations under this Agreement, including, but not limited to, SUBDIVIDER's obligation to commence construction of the Improvements by the time established in this Agreement CITY shall be entitled to all remedies available to it pursuant to this Agreement and law. It is specifically recognized that the determination of whether a reversion to acreage or recision of the Subdivision constitutes an adequate remedy for default by the SUBDIVIDER shall be within the sole discretion of the CITY: and WHEREAS, the provisions of Section 19.16.160 of the Newport Beach Municipal Code provide for an Agreement containing certain provisions as hereinafter set out. NOW, THEREFORE, in consideration of their mutual promises, the Parties hereto agree as follows. 1. SUBDIVIDER agrees to comply with all requirements of the Conditions of Approval and with the provisions of the Subdivisions Laws. 2. SUBDIVIDER agrees to complete all Improvements in accordance with Improvement Plans approved by the City Engineer, including all improvements required by the Municipal Code which were not specifically waived by the Planning Commission or City Council approving the Permit, plus any additional improvements required by the Planning Commission or City Council as a condition of approving the Permit. SUBDIVIDER shall acquire and dedicate, or pay the cost of acquisition by CITY, of all rights -of -way, easements and other interests in real property for construction or installation of the public Improvements, free and clear of all liens and encumbrances. The SUBDIVIDER's obligations with regard to acquisition by CITY of offsite rights -of -way, easements and other interests in real property shall be subject to a separate agreement between SUBDIVIDER and CITY. SUBDIVIDER shall also be responsible for obtaining any public or private drainage easements or authorization to accommodate the Subdivision. 3. SUBDIVIDER agrees to complete the Improvements within a period of months from the date hereof, unless the time is extended by the CITY upon written application of the SUBDIVIDER. 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 of all defenses of laches, estoppel, statutes of limitations, and other limitations of action in any action or proceeding filed by the CITY within the period of four (4) years immediately following the date to which the time of performance was extended. 4. The Improvements shall be completed to the satisfaction of the City Engineer of CITY, and SUBDIVIDER shall pay the costs of inspection of the work in accordance with the established schedule of charges for inspection heretofore adopted and on file in the office of the Public Works Director. 5. If SUBDIVIDER shall fail to complete the Improvements within the period set out above, or fails to reimburse the CITY for the cost of inspection, CITY may resort to any security deposited by SUBDIVIDER in accordance with Section 19.16.170 of the Newport Beach Municipal Code or call upon the surety for SUBDIVIDER to pay for the Improvements or to supply the money for the completion of the Improvements in accordance with this Agreement and the provisions of the Newport Beach Municipal Code.. SUBDIVIDER shall also be responsible for the Improvements and the cost thereof. 6. It is further understood and agreed that upon default of any obligation hereunder, and at any time any such default, the CITY may make written demand upon the SUBDIVIDER or surety or both to immediately remedy the default or complete the work. If the remedial activities or completion of work are not commenced within seven (7) days after such demand is made and are not thereafter diligently prosecuted to completion and fully completed within thirty (30) 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 judgment of the CITY may be required, all at the full expense and obligation of the SUBDIVIDER and SUBDIVIDER's 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 to complete the Improvements, and whether 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. 7. SUBDIVIDER shall at all times guarantee SUBDIVIDER's performance of this agreement by furnishing to CITY security in the amount of One Hundred Thirty-Five Thousand Dollars And Zero Cents ($135,000.00) to guarantee the performance of this Agreement. The SUBDIVIDER shall provide security in the amount of One Hundred Thirty -Five Thousand Dollars And Zero Cents ($135,000.00) to guarantee 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 60i -A l40, (Bond Nos. /Certificate of Deposit No's.. IO43Cycr75 1. 8. The SUBDIVIDER promises and agrees to maintain all of the Improvements to be constructed under this Agreement 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. Maintenance of the Improvements 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; and shall also include, but not be limited to by this enumeration, sweeping, repairing and maintaining in good and safe condition all streets and street improvements. Upon failure of the SUBDIVIDER to properly maintain the Improvements, 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. 9. The securities required by this Agreement shall be released as follows: a. Security given for faithful performance of any act, obligation., work or agreement shall be released upon the final completion and acceptance of the act or work. b. Security given to secure payment to the contractors, his or her subcontractors and to persons furnishing labor, materials or equipment shall, six months after the completion and acceptance of the work, be reduced to an amount equal to the total claimed by all claimants for whom liens have been filed and of which notice has been given to the legislative body, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the Security. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given. 10. Neither SUBDIVER nor any of SUBDIVIDER's agents or contractors are or shall be considered to be agents of the CITY in connection with the performance of SUBDIVIDER's obligations under this Agreement. 11. Subdivider guarantees and warranties the Improvements for a period of one year following completion and acceptance of the Improvements, against any defective work or labor done to construct the Improvements or defective materials furnished_ 12. Indemnity /Hold Harmless. CITY or any officer or employee thereof shall not be liable for any injury to persons or property occasioned by reason of the acts or omissions of SUBDIVIER, its agents or employees in the performance of this Agreement SUBDIVIDER further agrees to protect, defend, indemnify and hold harmless CITY, its officials and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, the negligent or intentional acts or omissions of SUBDIVIDER, its agents or employees in the performance of this Agreement, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the Improvements. This indemnification and agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of said development, and the public improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage systems, streets and other public improvements. Acceptance by the CITY of the Improvements shall not constitute an assumption by the CITY of any responsibility for any damage ortaking covered by this paragraph. 13. CITY shall not be responsible for the design or construction of the development or the Improvements pursuant to the approved improvement plans or map, regardless of any negligent action or inaction taken by the CITY in approving the plans or map, unless the particular improvement design was specifically required by CITY over written objection by SUBDIVIDER submitted to the City Engineer before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design. After acceptance of the Improvements, the SUBDIVIDER shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or constriction defect, however SUBDIVIDER shall not be responsible for routine maintenance. It is the intent of this section that SUBDIVIDER shall be responsible for all liability for design and construction of the Improvements installed or work done pursuant to this Agreement and that CITY shall not be liable for any negligence, nonfeasance, misfeasance and malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in approving, reviewing or inspecting any work or constriction. The improvement security shall not be required to cover the provisions of this paragraph. 14. 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 and costs 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. IN WITNESS WHEREOF, SUBDIVIDER has executed this Agreement and the CITY OF NEWPORT BEACH has caused its corporate name and seal to be affixed by its Mayor and City Clerk thereunto duly authorized as of the day and year first above written_ APPROVED AS TO FORM_ CltyAttomey / 19 CITY OF NEWPORT BEACH, a municipal corporation M Mayor Shea Homes Umlted Pa ms." ly a Califomia Um{ted Partnership SUBDIVIDER by J.F. Shea U.C„ a Delaware limited fiepfgtyow" its Ge By:CI MARION P. MARCUM ASSISTANT SECRETARY v� LINDA C. TONG ASSiSTANTSE- tM-APV STATE OF CALIFORNIA COUNTY OF ORANGE On May 4, 2004, before me, Olivia Iskenderian, Notary Public , personally appeared Linda C. Tong and Marion P. Marcum, personally known to me (9F proved te me 9A the basis of satisfai ;te,; evide^ce; to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. OLIVIA ISKENDERIAN Commission ffi 1357035 Notary Public - California > Orange County My Comm. Expires Jun 8.2006 Olivia Iskenderian California General Purpose Acknowledgment For all documents executed in the State of California Triplicate Execution Bond Nuiti^er: 104304075 PreMdula: J'6 i j. co yYyEREAB, treClyCOUrncl oftheCtq /aftQerpartHaedt.Cace><ydgyrpe 9taUafCa�omig and Shea* he WWW daeiW%aW as'PcindpW as about to or have a twW Inds m agreemaiit plratwlt to to etwe of CaV mta 0Jx d n Map Act and the NrAW eeach hhmw4w s �ereoy agrees b kwW sod Pteb'. !:, a? a rd+iee,aaiaeproesYletit.a�0ed ri I 3'� zo0,y, gad &I fed as ACromherit ar OonAuciton of hWm m ft {rred No IBM), Is hereby 10 and meat a part b~ pho 'Apeanrettl') . and Retobst i rsquied trdr tp +tame doe Aprawnant to Borah a bond for n,t tlhU p•rromwra of Diamond Bar, CA4QW, THErgjVM We w ltYdpf acd :Travelers ** ataa�/ W1oq C�aCO �bAkw= is _.- poo�Paa�alps�drddoigpDdainaMUMararrbykrUitdlbalawaaftleaStaMafConner and 'Ivry kolied b' ow tw MPA 00. I'm Or M papow ar maw& PWAff�?0. or bsdorft sdp'sii w upat fronds or urt0aiW*W MgAmd ar mAm&W by M in ma or" ##fate of (.worm to no tMW IfM ly hound undo to of Wewport 9epdn and al oerpodd,' 4Eo!pR m/stlYarner6 =id o?erparsOtfa 0� h ele p�rk4D. of ere Apepaurrl A tla f+!rr fir. e, wa_Ide�I tees# b Fa�tur cit3Sd00, kra fii lrWrley Q UM lstead 810614 6r ft p of aAdiA bs clsde, M bind aunvkvll. our hdra. StlOOeesars.. a>Iasg,ess, sod The ddtdluo dttYS aep�n (s that f 1r abw +hand Rir+pel. ►,b, tw w ds heYs, a»s. adm4YsBsmor;..u�rs, or ad4ns atim7 :In. d thAge seetd.to and ablds by,.sw wet Ind tmry haep.VW perform the odlinQrtQs,.wia*n and prop Wotr in maR,na, y arm tong t match as eyetah A#nv#dad, on h#s, her or thefr.part fo'tie tarp# aad iatnhhrigd d inaiiniti std n ttr ttm-mv n..tntitMdttad aw :in e1+aspeds accw6nn io tttetr due (itfteirt and mawft ax NM tr#derrirtily and =V0 W'"0_ Ba dIR?er� a pent ;art0 eirrpayees, as Crean. st o md, eta, ere obagasm shaft tseoornanul and +ad<dB�alwfea; d'dtaM ba Ind Itllila&I in hie tbm arcd #tract As part of the ot>vgdn soma" hereby and h WdWn to the face amwatt aped. thatnfar, #hare SW be t dad d comb and reasornb#: APdtsae artd fees. hdUdad tmWMMbfe amxtWs Taos, horn -ed by City to suoorsdLgy mW=g suds odlyelion, ■e to be Nod as aft%and mood in "judyamed rwxkmd 7Ae 9un;gr and t'Rtepd keener aaree n tlne event tfq Work and knWVMMants are not mnoead vdin ere lane Wmvsd by eta aad aareett M Or VW eiasttSiom threat as may be granted by Cre CW- me City may at i$ aptfan, and ;n ad&on to any other Irldtea ardkbft by taw, aampleta or a ONO for oompledw of ere Work aid n ptoventaras. and ae j ast and 0saa dlafOjor alree bo me a debt due and wM #aid City, at W forth in eta Agnmmett. The &0* hweby 4W *00 mid a7aas that m dmm , extension of Mjca allstKn or addiean to t6a Wm of the i Aaremtsd or to the wort W he pwiartrwd ttlerelsWa a<ere IpedRtaleona eccocnpatyira the same stlae in answise atfict es Obkg t m on tf is band and a does he mby **Iva mace of any dnanga, addutan of *m0. Wwretlm or addebrn In rte temte of *nCAgloo m.ormttowork,ortotheapadficmaons- PtaC, WtTN£6S WM;MOF, Ines koth , erd hoc neon duly wceaAad by the PrWdpal and Sady above awned an -2004. LINDA C. TONG Afro_ t ASSISTANT SECRETARY ✓ ply P >c Ptredo Hy GG4/ ON P. MARCUM j mved as b Form: Traver C. nd ? SISTAIVT SE f* TAR'Y ompanv t= +fYAfaneY Se t 5alandi, Attorney i ?: -Fact * *CasualtY and Surety: C0.-_jpary o." f * * *of America sei-ica' F�'�tuti�ti- la6PE�9,4p *Homes Limited Partnership A California Limited Partnership BY' j -F- Shea LLC IA Ttselaware Limited LiaL,ility Company Partner CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California County of Los Angeles On May 3, 2004 before me, Noemi Quiroz, Notary Public DATE NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC' personally appeared Scott Salandi NAME(S) OF SIGNER(S) ® personally known to me - OR - NOEMI 6UIROZ Co nmisslon # 1420878 , 4 Notary Public - California Orange County OMy Comm. Expires Jun 26, 2007 ❑ proved to me on the basis of satisfactory evidence the person(s) whose name(s) is /aFe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his /herrAheiF authorized capacity(ies), and that by his/kaer /tIR& signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. V�1 '1 SIGNATURE O NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this forrn. CAPACITY CLAIMED BY SIGNER ❑INDIVIDUAL ❑CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ® ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN /CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: NAME OF PER$ON($) OR ENTITY(IE$) DESCRIPTION OF ATTACHED DOCUMENT Subdivision Bond TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT Shea Homes LP SIGNER(S) OTHER THAN NAMED ABOVE TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA TRAVELERS CASUALTY AND SURETY COMPANY FARMINGTON CASUALTY COMPANY Hartford, Connecticut 06183 -9062 POWER OF ATTORNEY AND CERTIFICATE OF AUTHORITY OF ATTORNEY(S) -IN -FACT KNOW ALL PERSONS BY THESE PRESENTS, THAT TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, corporations duly organized under the laws of the State of Connecticut, and having their principal offices in the City of Hartford, County of Hartford, State of Connecticut, (hereinafter the "Companies ") hath trade, constituted and appointed, and do by these presents make, constitute and appoint: Victoria Stockton, Scott Salandi, Niria Tapia, John Miller, of Santa Ana, California, their true and lawful Attorneys) -in -Fact, with full power and authority hereby conferred to sign, execute and acknowledge, at any place within the United States, the following instrument(s): by his/her sole signature and act, any and all bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking and any and all consents incident thereto and to bind the Companies, thereby as fully and to the same extent as if the same were signed by the duly authorized officers of the Companies, and all the acts of said Attomeys) -in -Fact, pursuant to the authority herein given, are hereby ratified and confirmed. This appointment is made under and by authority of the following Standing Resolutions of said Companies, which Resolutions are now in full force and effect: VOTED: That the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice President, the Treasures, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attomeys -in -Fact and Agents to act for and on behalf of the company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seat with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her. VOTED: That the Chairman; the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in waiting and a copy thereof is filed in the office of the Secretary. VOTED: That any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary, or (b) duly executed (under seal, if required) by one or more Attomeys -in -Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority. This Power of Attorney and Certificate of Authority is signed and scaled by facsimile (mechanical or printed) under and by authority of the following Standing Resolution voted by the Boards of Directors of TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, which Resolution is now in full force and effect: VOTED: That the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attomeys -in -Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond or undertaking to which it is attached. n tn0 ctands.d� Travelers IMPORTANT DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE On November 26, 2002, President Bush signed into law the Terrorism Risk Insurance Act of 2002 (the "Act'). The Act establishes a short-term program under which the Federal Government will share in the payment of covered losses caused by certain acts of international terrorism. We are providing you with this notice to inform you of the key features of the Act, and to let you know what effect, if any, the Act will have on your premium. Under the Act, insurers are required to provide coverage for certain losses caused by international acts of .terrorism as defined in the Act. The Act further provides that the Federal Government will pay a share of such losses. Specifically, the Federal Government will ,pay 90% of the amount of covered losses caused by certain.acts of terrorism which is in excess of Travelers' statutorily established deductible for that year. The Act also caps the amount of terrorism - related losses for which the Federal Government or an insurer can be responsible at $100,000,000,000.00, provided that the insurer has met its deductible. Please note that passage of the Act does not result in any change in coverage under the attached policy or bond (or the policy or bond being quoted). Please also note that no separate additional premium charge has been made for the terrorism coverage required by the Act. The premium charge that is allocable to such coverage is inseparable from and imbedded in your overall premium, and is no more than one percent of your premium. ILT- 1018(2103) STATE OF CALIFORNIA COUNTY OF ORANGE On May 4, 2004, before me, Olivia Iskenderian, Notary Public , personally appeared Linda C. Tong and Marion P. Marcum, personally known to me (el: pFeved to FRe the bas's Elf sat'sf.,GteFy , videRG ) to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. ULIVIA ISKENDERIAN Commission # 1357035 z "m Notary Public - Califomio `' • Orange County MY Comm. ExPkeSJun 8.2006 Olivia Iskenderian California General Purpose Acknowledgment For all documents executed in the State of California Triplicate Execution Bond Number: 104304015 Premium Included in Charge for Performance Bond CITY OF NEWPORT BEACH m BDMMM BOND WHEREAS, the Clfy CaU W d fie Clay of t+lewpnd BOOM Count Of tea. 8t'M of CaiWia' and Shea* hybiFrdWdesipnedd as rPr444-am ab.01A IR Or h.wM w t -ed M an.wwwmW W= d 101118 Sb to of Qeffonis St bd vl Mw Ad mid fm ?W.wpapt.aeach MU>�Y Cade whera6�r : a� � andeon+p! geliMlli ri?tidprr�; Iiv f taWapw;n� dabd f i 13a, 2W aril Ylafiod aiaApama�rdt6r . , d btrgowmaras rnad No 1fr1A8� is rstertad b and made a Pat Nw�df.". zAtiiaernnkt arid' WHttgwAS , IMM fr drnr. d sold geomleC : ..� a�quirad, .Eetp� egss!b!p .1JpD8 t!» pgroanade� o�a�.ti�.wt!G SJ.f�i r•.�ad �i,a Wtiotea�'ygiK:t!a+d !" Y If Na+up�sf awn b saaaeana tfa.u�ai1 p�(nAt>a elf att600l p 41ar>rattnp iebai, mato"S and egrlpina!d for th► pattrnttartoa ott this l�aailtettt 7itERF�'ORt; Wo tM PA1cetsad:: Travelers ** .SS .ww ,0,evr,- 'edrr-m rurSv grid ri deg .of d bioneea is rWndthe Mwookic. or end d or,r0afttrawen, and.,..• drlptanfou, ladli. �Wda► bl�r!l e4ieiaaotisAdlrAhraNpietn `sr,Nwalc a f�bey flat .�Pd!! 11r tl�+ b ai.aiiiarat rot alnepdr +s:tr.�noui,lr►atnbotoil. � 40r1+: and.abo If and witbCmr01! ��eeVMSodd. riyaFhsd�lonbtlr6roirwaifreieaFcar ,and_.,_ :.....m M Rees �pla�aw6laaMOms lh!lwiia+r�QbyCov ai !�r.�a 9. ,.... o ... aWfmdbytteaoaRiMidby1ets daeooftaridiobaf lW' 1110p pntaldG'aratalendorod. N in hwaby a pep y cOP!d Nd and apread anal thte bond"inure to the barrdll or say and an persons. campaIUM and DM OM 3 oi3 f tlw CAM Cadax dra a dgnt of edbrr m 1hM or their as dgns k any ga UauoM uPOn this bond. should to con Mw or frla bond be fuay performed, tlren ftia obfWftn shag bacar+e nua end vold: oftrml e. @ Wag be and rwnain to M torte and enact i ilia Surety haeby stipAMS sad age= flat ro dnaya, exf KWM d tams, a"MWn or ad.Lgon to the Issas of ttte Agraarnera a tla apeoilkatlons accompenylaa the same shall h any martrrar shed Ib obdgetloris on thJs bond, end t dose herabywwa n 1 ' o<any mzh dAFV, extet>clon almratlon or addulon IN WETNESS WHEREOF, this kw4ument has boon duty axewkd by fro PW%'Pd and Surety above M1 3 .200 4. UNDA v. T�NG rmmed on STANTSECRET Appmved as to r IhARION P. MAR�Uf fiSSlSFAtd, s,rol RF. P dowoncaOaredUr PrtndWd * ** Travelers Casualty, and 4:� > =tv Company i roved as to Form C ' CtyAUD,ney 61 / Fy�,y�aDa.sianrao *Homes Limited Partnership A California Limited Partnership Bv: J:F. Shea LLC A Delaware Limited Liability Company Its General Partner YSurety � tt Saland1, Attf jn -Far_` * *Casualty and Surety Company -)f = •s�eri-a * * *of America CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California County of Los Angeles On May 3, 2004 before me, Noemi Quiroz, Notary Public DATE NAME. TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC" personally appeared Scott Salandi NAME(S) OF SIGNER(S) ® personally known to me - OR - NOEMI QUIROZ Commission # 1420878 elMyComm. Notary Public - Carfornla Orange County Expires Jun 26, 2007 ❑ proved to me on the basis of satisfactory evidence 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 /heF4heir authorized capacity(ies), and that by hisJheF /theiF signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE FNOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑INDIVIDUAL ❑CORPORATE OFFICER TTLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ® ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN /CONSERVATOR ❑ OTHER: SIGNER Is REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) Travelers Casualty and Surety Company of America DESCRIPTION OF ATTACHED DOCUMENT Subdivision Bond TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT Shea Homes LP SIGNER(S) OTHER THAN NAMED ABOVE TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA TRAVELERS CASUALTY AND SURETY COMPANY FARMINGTON CASUALTY COMPANY Hartford, Connecticut 06183 -9062 POWER OF ATTORNEY AND CERTIFICATE OF AUTHORITY OF ATTORNEY(S) -IN-FACT KNOW ALL PERSONS BY THESE PRESENTS, THAT TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, corporations duly organized under the laws of the State of Connecticut, and having their principal offices in the City of Hartford, County of Hartford, State of Connecticut, (hereinafter the " Companies ") hath made, constituted and appointed, and do by these presents make, constitute and appoint: Victoria Stockton, Scott Salandi, Niria Tapia, John Miller, of Santa Ana, California, their true and lawfid Attorney(s) -in -Fad, with full power and authority hereby conferred to sign, execute and acknowledge, at any place within the United States, the following instrument(s): by his/her sole signature and ad, any and all bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking and any and all consents incident thereto and to'bind the Companies, thereby as fully and to the same extent as if the same were signed by the duly authorized officers of the Companies, and all the acts of said Attorney(s) -in -Fact, pursuant to the authority herein given, are hereby ratified and confirmed. This appointment is made under and by authority of the following Standing Resolutions of said Companies, which Resolutions are now in frill force and effect: VOTED: That the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attorneys -in -Fact and Agents to act for and on behalf of the company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recogn zances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her. VOTED: Thai the Chairman; the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copy thereof is,filed in the office of the Secretary. VOTED: That any bond, recognizance, 'tcontract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional undertaking shall be valid and biriding upoti the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary, or (b) duly executed (under seal, if required) by one or more Attomeys -in -Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority. This Power of Attorney and Certificate of Authority is signed: and sealed by facsimile (mechanical or printed) under and by authority of the following Standing Resolution voted by the Boards of Directors of TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, TRAVELERS CASUALTY AND SURETY COMPANY and FARMINGTON CASUALTY COMPANY, which Resolution is now in full force and effect: VOTED: Tbat the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attomeys -in -Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond or undertaking to which it is attached. W Travelers IMPORTANT DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE On November 26, 2002, President Bush signed into law the Terrorism Risk Insurance Act of 2002 (the "Act'). The Act establishes a short -term program under which the Federal Government will share in the payment of covered losses caused by certain acts of international terrorism. We are providing you with this notice- to .inform you of the key features of the Act, and to let you know what effect, if any, the Act will have on your premium. Under the Act, insurers are required to provide coverage for certain losses caused by international acts of terrorism as defined in the Act. The Act further provides that the Federal Government will pay a share of such losses. Specifically, the Federal Government will ,pay 90% of the amount of covered losses caused by certain acts of terrorism which is in excess of Travelers' statutorily established deductible for that year. The Act also caps the amount of terrorism - related losses for which the Federal Government or an insurer can be responsible at $100,000,000,000.00, provided that the insurer has met its deductible. Please note that passage of the Act does not result in any change in coverage under the attached policy or bond (or the policy or bond being quoted). Please also note that no separate additional premium charge has been made for the terrorism coverage required by the Act. The premium charge that is allocable to such coverage is inseparable from and imbedded in your overall premium, and is no more than one percent of your premium. ILT -1018 (1103) STATE OF CALIFORNIA COUNTY OF ORANGE On May 4, 2004, before me, Olivia Iskenderian, Notary Public , personally appeared Linda C. Tong and Marion P. Marcum, personally known to me the basis of sati °faGtOFY eVideRG^` to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. OLIVIA ISKENDERIAN Commission # 1357035 OlMyComm, Notary Public - California s Orange County ExpiresJun&2006 Olivia Iskenderian California General Purpose Acknowledgment For all documents executed in the State of California