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HomeMy WebLinkAboutCarlsbad Corners Inc; 1983-10-19;' WATER SYSTEM IMPROVEMENTS AGREEMENT REGARDING CARLSBAU TRACT 81-5 NORTHWEST CORNER INTERSTATE 5/POINSETTIA LANE This Agreement is entered into on between COSTA REAL MUNICIPAL WATER DISTRICT (hereinafter ''Dl~TRICT'') and CARLSBAD CORNE~ 0 S, INCORPORATED {hereinafter "DEV_ELOPER"} with respect to the following: A. DEVELOPER is about to present the map identified as ''Carlsbad Tract No. 81-5" (the "subdi vision") to the City of Carlsbad for fi na 1 approval under the Subdivision Map Act of the State of California and in compliance with the provisions of the City of Carlsbad's ordinances applicable to the filing and approval of subdivision maps. The property encompassed by the subdivision lies within the boundaries of the DISTRICT. B. Buccola Enyineering, Inc., of Newport Beach, California, has prepared plans and specifications for the construction of the water system necessary to provide water service to the subdivision. The plans and specifications are identified as ''Street, Water, Sewer & Drainage Plans -Carlsbad Tract No. 81-5'' consisting of eight sheets, and are incorporated herein by reference ("plans''). The plans and specifications for the water improvements, which are the subject of this Agreement, are set forth on all sheets of those plans (''improvements"). The DISTRICT Board of Directors has approved the pl ans. C. No present commitment is required of the DISTRICT as to water service to the 1 ots in the above-described subdi vision. -1- NOW, THEREFORE, in consideration of the covenants, conditions and promises set forth below, and of the approval of the plans by the DISTRICT, the undersigned agree as follows: 1. Construction of Improvements. DEVELOPER agrees to construct, or cause to be constructed, all of the water improvements set forth in the plans as described above within one (1) year from the date of this Agreement. The improvements shall be constructed in a good and workmanlike manner under the direction of and subject to the approval of the DISTRICT, which approval will be exercised in good faith and I•· will not be unreasonably withheld. The improvements shall be· constructec in accordance with the plans approved by the DISTRICT and in conformity with all other applicable standards for pipeline construction which have been adopted by the DISTRICT. DEVELOPER shall construct the improvements at its sole cost and expense, and without any cost or expense to the DISTRICT. 2. Inspection Fees and Deposits, DEVELOPER agrees to pay to the DISTRICT, on demand, the full amount of all costs incurred by the DISTRICT in connection with the work to be performed under this Agreement including, but not limited to, engineering plan checking, construction inspection, right-of-way expenses, materials furnished, and a reasonable amount for the DISTRICT'S indirect costs and overhead in connection with this project. The fees and costs shall be charged in accordance with the DISTRICT's standard practice. DEVELOPER shall deposit with the DISTRICT the sum of $6,600.00, being the estimated amount of the DISTRICT'S expenses, at the time this Agreement is executed. Should the DISTRICT's expenses be in excess of the deposit, DEVELOPER shall pay the excess expenses to the DISTRICT on demand. Should the DISTRICT's expenses be less than the amount of the deposit, the DISTRICT shall refund the balance to DEVELOPER upon completion of the work and its acceptance by the DISTRICT. -2- 3. Dedication and Acceptance of Improvements. Upon comµletion of the improvements in accordance with the plans, as determined in good faith by the DISTRICT's Manager and the DISTRICT's Engineer, DEVELOPER shall dedicate, and the DISTRICT shall accept, the improve- ments as the public property of the DISTRICT. The DISTRICT shall be under no obligation to accept the improvements as public property of the DISTRICT until such time as the following acts have occurred: (a) All public improvements proposed to be constructed in said subdivision, including but not limited to, streets, curbs, drains, sewer, gas and utility lines and the improvements required ~· for the complete water system and necessary appurtenances the~eto, as set forth in this Agreement, shall have been completed as determined reasonably and in good faith by tne DISTRICT's engineer. (b) DEVELOPER, at his own expense, provides to the DISTRICT all documents and title policies necessary to vest and insure record title in the DISTRICT to all easements and/or rights-of-way necessary to the ownership and maintenance of the improvements. DISTRICT shall have the right to approve the acceptability of said easements, documents and title policies, which approval shall be exercised in good faith and shall not be unreasonably withheld. (c) DEVELOPER provides to the DISTRICT a statement setting forth the actual cost of constructing the improvements. The DISTRICT'S Board of Directors shall accept the dedication on behalf of the DISTRICT upon the recommendation of the DISTRICT Manayer and DISTRICT Engineer. 4. Interim Maintenance of Improvements. DEVELOPER shall be responsible for the care, maintenance and repair of all damage to the improvements constructed under this Agreement until such time as all water system public improvements to be constructed under this Agreement between DEVELOPER and the DISTRICT have been completed and dedication thereof has been accepted by the DISTRICT. -3- 5. Guaranty of Work and Materials. DEVELOPER guarantees, for a period of one (1) year after the DISTRICT accepts dedication thereof, that the improvements shall be free of any defects in materials and/or workmanship. DEVELOPER shall repair or replace, without cost to the DISTRICT, any defect in workmanship or materials which occurs within that time. The DISTRICT shall notify DEVELOPER in writing of any such defect. DEVELOPER shall begin repairs within ten (10) days after receipt of such notice, and shall proceed expeditiously to complete the repairs within a reasonable time. Should DEVELOPER fail. to begin repairs within tha~ time, the DISTRICT is authorized to have the ~-. defects repaired at the expense of DEVELOPER, and DEVELOPER s~all pay the cost of such repairs upon written demand by the DISTRICT. In the event of an emergency, as determined reasonably and in good faith by the DISTRICT'S Board of Directors, Manager or Engineer, the DISTRICT is authorized to have the defect causing the emergency repaired, without notice, at the expense of DEVELOPER, and DEVELOPER shall pay the cost thereof upon written demand by the DISTRICT. 6. Water Service and Occupancy Upon Completion. There shall not be any permanent water service provided to any parcel of land within the subdivision, nor shall occupancy of any permanent improvement within the subdivision be permitted, until the DISTRICT has accepted dedication of the complete water system for the subdivision and title to all improvements, appurtenances, easements and rights-of-way which are a part of such system. This provision does not limit UEVELOPER from requesting, or the DISTRICT from providing, temporary water service to the subdivision to be used during construction. However, at the discretion of the DISTRICT's Board of Directors, other temporary water services may be allowed under terms and conditions agreed to between the DISTRICT and DEVELOPER. 7. Bond or Other Guaranty. DEVELOPER shall furnish and deliver to the DISTRICT a performance guaranty in the penal sum of $192,000.00 -4- to insure faithful performance by DEVELOPER of all obligations under this contract. The guaranty shall be in the form of a performance bond issued by a reliable surety company authorized to do business in the State of California, or such other form of written guaranty as is acceptable to the DISTRICT, who shall not unreasonably withhold its approval. The bond or other form of guaranty shall be for the benefit of the DISTRICT and all persons or entities entitled to the protection of the California Mechanics Lien Law in connection with the construction of the improvements governed by this Agreement. 8. Notices.,., All notices or other communications required or permitted under this Agreement shall be sent by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 9. To DEVELOPER: To DISTRICT: Mr. Cecil A. Smith, President Carlsbad Corners, Incorporated 1150 East Elm Street Fullerton, CA 92631 Wi 11 i am C. Meadows, General Manager Costa Real Municipal Water District 5950 El Camino Real Carlsbad, California 92008 Benefit and Burden. This Agreement shall inure to the benefit of, and the obligations created hereby shall be binding upon the heirs, successors and assigns of the parties hereto. The DISTRICT acknowledges that there did exist a dispute between it and the City of Carlsbad as to which entity has the right to provide retail water service to this subdivision, among others, and the right to hold legal title to all public improvements necessary to provide such service. The DISTRICT filed an action for declaratory relief in the North County 8ranch of the Superior Court of the State of California for the County of San Diego, case no. N20027, to resolve that dispute. The DISTRICT and the City of Carlsbad have settled this lawsuit. The parties hereto agree that their rights and obligations under this Agreement are -5- r· ' ' subject to the judgment, judicial declaration, settlement or other determination made in the above-described legal proceeding on June 29, 198 3. 10. Severability of Provisions. The invalidity or illegality of any provision of this Agreement shall not affect the validity or enforcement of the remainder of this Agreement. If any provision or term hereof is found to be invalid or unenforceable, the rest of the Agreement shall remain in full force and effect as though the invalid or unenforceable provision was not a part of the Agreement. 11. ,,, Waiver or Amendment. No provision of this· Agreement, nor any breach hereof, can be waived unless in writing. Waiver of any one breach of any provision hereof shall not be construed as a waiver of any other breach of the same or any other provision hereof. This Agreement shall be amended or modified only by a written agreement signed by the party to be charged with the amendment. 12. Governing Law. This Agreement and any amendments hereto shall be governed by, construed and enforced in accordance with the laws of the State of California. 13. Construction and Interpretation. This Agreement contains the entire understanding and agreement of the parties as to the construction of the complete water system for the subdivision, and supersede all prior agreements, statements, discussions, representations and understandings pertaining to that water system. 14. Attorney's Fees. The prevailing party in any action at law or in equity, including arbitration, brought to enforce or prevent the breach of this Agreement, or any provision hereof, including but not limited to any action for injunctive or declaratory relief, shall be entitled to attorney's fees and costs incurred in such action, including those incurred in any appeal. -6- (" 15. Authority to Sign. The individuals who sign this Agreement on behalf of the undersigned corporation and municipal water district warrant that they have the authority and approval to do so on behalf of such corporation and municipal water district. CARLSBAD CORNERS, INCORPORATED ~y ______________ _ -7- COSTA REAL MUNICIPAL WATER DISTRICT CALIFORNIA I FIRST BANK II LAJOLLAOFFICE, 7807 GIRARD AVENUE, P. 0. SOX 1907 LA JOLLA, CALIFORNIA 92038-9981 LETTER OF CREDIT Subdivision Improvement Faithful Performance Costa Real Municipal Water District 5950 El Camino Real Carlsbad, California 92008 Attention: General Manager Reference: Irrevocable Letter of Credit No. Gentlemen: 5 , This Letter of Credit is given to fulfill the requirements of that certain agreement entered into between the Costa Real Municipal Water District, a municipal water district of the State of California, here- after referred to as "District", and CARLSBAD CORNERS, INCORPORATED, hereafter referred to as "Principal" covering certain improvements or work to be installed or done in or for that certain subdivision known and designated as CARLSBAD TRACT NO. 81-5, Northwest Corner of I-5 and Poinsettia Lane, Carlsbad, California 92008, by Principal and in accordance with said agreement, dated October 19, 1983. As required by said agreement, to assure faithful performance and for that purpose only, we hereby establish in favor of District for the account of Principal our Irrevocable Letter of Credit No. 5, in the amount of One Hundred Ninety Two Thousand and no/100 U.S. Dollars ($192,000.00), to be paid by drafts at sight on us when accompanied by the following documents: District's written statement signed by the District Engineer, Manager, or legal counsel certifying that there has been failure of the Principal to perform the above agreement. Said statement shall declare the amount of the sight draft on us and that the amount of this draft is, therefore, now due and payable. IT IS AGREED that the above funds are on deposit and guaranteed for payment and said funds shall become trust funds for the purposes set forth herein as required by Section 66499.6 of the Government Code of the State of California. It is a condition of this letter of credit that from time to time the amount thereof may be reduced, under rules established by District, as the required work '.progresses and is performed in accordance with the Letter of credit Page 1 of 2 CAl.lFORNIA •• FIRST BANK - SHEET ND. 2 of Letter of Credit Improvement Standards of the Costa Real Municipal Water District, as authorized by Section 66499.7 of the Government Code. All drafts under this letter of credit shall be marked; California First Bank 7807 Girard Avenue La Jolla, California 92037 IRREVOCABLE LETTER OF CREDIT NUMBER 5. We expressly agree with you that all drafts drawn under and in compliance with the terms of this letter of credit shall meet with due honor upon presentation. Further, that all drafts shall be delivered to District in accordance with Cal.Comm.Code 5112. This letter of credit shall be deemed automatically extended without amendment one year from the present and annually thereafter unless sixty (60) days prior to any such date bank shall notify General Manager, by registered letter, that bank elects not to renew for such additional one year. In any event, this guarantee letter of credit shall expire exactly one year after Districts approval of the above improvements. DATED: February 29, 1984 California First Bank By Manager Letter of Credit Page 2 of 2