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HomeMy WebLinkAboutCT 99-04; Villages of La Costa Oaks & Ridge; Tentative Map (CT) (9)REAL ESTATE COLLATERAL MANAGEMENT CONSULTING SERVICES AGREEMENT RECM/Morrow Consultant: Helix Environmental Planning, Inc. Contract No: 382 This Consulting Services Agreement (the "Agreement") is made and entered into this 8th day of January, 2002, by and between REAL ESTATE COLLATERAL MANAGEMENT COMPANY, a Delaware corporation (hereinafter called "Company") and Helix Environmental Planning, Inc., (hereinafter called "Consultant"), in consideration of the mutual covenants and conditions herein contained. COMPANY'S AGENT. For all purposes of administration, supervision and implementation of this Agreement, Company's agent, Morrow Development, Inc., a California corporation (hereinafter called "Morrow") shall act for Company for all purposes regarding this Agreement. Consultant hereby acknowledges and understands that Morrow is acting herein as the agent of Company, and Consultant shall accept and recognize the actions of Morrow as though it were the contracting party directly. Morrow is the Development Manager for Company in connection with the real estate master planned community(s) known as Villages of La Costa (the "Project"). The parties hereto agree as follows: 1. Scope of Work. Consultant shall perform the consulting and associated professional services as more particularly described on the Scope of Work Exhibit "A" hereto ("Work") for the Company in accordance with this Agreement and the provisions contained in any exhibit supplemental hereto which shall be considered a part of this Agreement. Consultant hereby represents and warrants it has the requisite licenses or other governmental authorization to perform the Work at all times herein and its license number is set forth on the signature page. 2. Authorization to Proceed. Consultant shall not commence the consulting services prior to full execution of the Letter of Authorization attached hereto as Exhibit "C" ("Authorization") which will outline the amount of compensation to be paid, authorize any reimbursable charges to be incurred, designate Morrow's direct representative for this Agreement, specify the schedule for start and completion of the services, and provide instructions for identification and segregation of the charges. 3. Term of Agreement. This Agreement shall continue in effect until terminated by either party giving the other not less than 10 days prior written notice. However, if Company so terminates this Agreement and Consultant is not then in default hereunder, Company agrees to pay Consultant for all services performed through the effective date of the notice of termination, provided such work is in conformity with this Agreement and any Authorization subject to the terms of this Agreement. Page 1 of 17 4. Termination Cause. Notwithstanding the foregoing, Company or Morrow shall have the right at any time, in its sole discretion, to terminate this Agreement if the Consultant fails to timely perform its obligations by giving Consultant written Notice of Termination, in which event Consultant shall immediately cease all services hereunder. Such Notice of Termination shall be deemed termination for cause. If Morrow or Company terminates this Agreement for cause, Company shall have any and all remedies and rights provided at law or in equity including, without limitation, the right to offset against any and all sums that may be due to Consultant any and all damages, costs and expenses incurred or suffered by Company or Morrow by reason of Consultant's breach or default. 5. Request for Payment. Subject to the provisions of Section 4 above and all other terms and provisions of this Agreement, Consultant shall be paid for all Work and any additional completed services authorized in writing and all reimbursable expenses incurred, to the extent the same were authorized by Company or Morrow pursuant to this Agreement, through the date of Notice of Termination. Consultant shall submit a written Request for Payment statement, certification and lien waivers and releases to Company in the form provided in Exhibits "B" and "B-1n of this Agreement or on a substitute form as reasonably requested by Company or Morrow. 6. Expense Approval. Before incurring any proposed reimbursable expense not specifically authorized in this Agreement, Consultant shall obtain Morrow's or Company's prior written approval of such expense. Company shall reimburse Consultant on a monthly basis for such pre-approved incurred expenses providing same are supported by invoice vouchers delivered to Morrow by Consultant and such detail information and documents as Company or Morrow may reasonably require. 7. Documents. Consultant shall submit status reports periodically as may be requested by the Company or Morrow. Expenses and reimbursable charges shall also be reported to the same individual. All design, drawings, specifications, technical data, and other reports, documents or materials provided to or produced by Consultant in the performance of its Work under this Agreement (hereinafter "Documents") shall be the sole property of Company and Company is vested with all rights therein of whatever kind and however created, including without limitation, all common law and statutory copyright. Consultant hereby assigns to Company, without additional compensation, all right, title and interest in all creations, inventions, ideas, designs, copyrightable materials, trademarks and other technology and rights, (and any related improvements or modifications), whether or not subject to patent or copyright protection, relating to any activities of Consultant in performing Work or rendering services under this Agreement. Consultant shall execute any and all instruments, including further assignments of interest, as may be required to transfer to Company any and all of Consultant's rights in and to the Documents and all rights incidental thereto. Consultant agrees that Company and Morrow shall have access at all reasonable times to inspect and make copies of all Documents. Consultant shall upon request of Company or Morrow, at their cost and expense, provide Company or Morrow with reproducible copies of all Documents. Without Company's prior written consent, Consultant shall not use any of the Documents it has prepared in connection with this Agreement on any other project Page 2 of 17 or in connection with services to be rendered to anyone other than Company. Upon termination or expiration of this Agreement, Consultant shall immediately deliver to Company or Morrow any original Documents prepared by Consultant in connection with this Agreement not previously delivered to Company or Morrow. As more particularly set forth in Section 12, Consultant shall indemnify, defend and hold harmless, Company and Morrow, and their Affiliates, from and against any claim, damage, cost, loss, or liability (including court costs and attorneys' fees) arising as a result of any alleged copyright infringement action or any other objection to Company's Document ownership or use arising out of or related to use of Documents prepared by Consultant under this Agreement. 8. Company's Use of Documents. Company shall have the right to reuse the Documents, in whole or in part, for any other Company project provided that in connection with such other project, Company shall indemnify Consultant with respect to all claims for property damage or personal injury arising out of such reuse. The foregoing indemnity shall not, however, apply if Consultant's services are terminated due to a breach of its obligations under this Agreement. Consultant may not use, in whole or in part, any of the Documents nor shall Consultant disclose same or make same available, in whole or in part, to any third party whomsoever other than as authorized by Company in writing. Company shall retain ownership of all formal published reports, studies, computer programs and files, maps, designs, plans, specifications and other work product prepared by Consultant to be used by Company in any manner it may find appropriate. Consultant acknowledges that violations regarding the use of the Documents could result in substantial damages to Company under this Agreement. 9. Consultant Supervision. Consultant shall supervise and direct all of Consultant's agents, employees and subcontractors performing Work or services, be responsible for all methods, sequences and procedures used and be responsible for coordinating all portions of Consultant's Work. Consultant shall perform the Work using the highest level of care and skill exercised by or expected by members of the profession currently practicing under similar conditions for master planned or other communities similar to the Project in Southern California. Consultant shall promptly supply to Company or Morrow in writing such other information which is or becomes known, in the course of performing the services, by Consultant or persons performing services, concerning facts which may materially affect the planning, marketing, design or construction of Company's property or Project. At all times in performing its duties hereunder, Consultant shall coordinate and consult with Company through Morrow to the end that major decisions as to the Project shall be made by the Company through Morrow. 10. Joint Venture. It is not the purpose or intention of this Agreement to create nor shall it be construed as creating a joint venture, real estate partnership, commercial partnership or other business relationship, other than Consultant being an independent contractor. Consultant shall act as an independent contractor with respect to performance of Work hereunder and neither it nor any of its employees, agents, or subcontractors will be deemed for any purpose to be the employee or agent of Company or Morrow in the performance of services hereunder. No federal, state, city or Page 3 of 17 other local governmental income or social security taxes will be withheld from Consultant's compensation except as required by law, and all such taxes will be reported and paid directly by Consultant. Consultant hereby defends, indemnifies and holds harmless Company and Morrow, and their Affiliates, for any tax liability of Company or Morrow, or their Affiliates, directly or indirectly incurred as a result of Consultant's failure to meet its tax and other obligations, in accordance with Section 12 below. 11. Approval of Subcontractor. No subcontractors shall be used by Consultant in connection with the Work without Company's or Morrow's prior written approval of such subcontractor including verification of subcontractor's license (if required), insurance coverages as provided herein and scope of the Work to be performed by such subcontractor. Consultant shall be solely responsible for any employee benefits, including, without limitation, wages, worker's compensation benefits, employment and social security taxes, and fringe benefits, to which Consultant's authorized subcontractors, employees or agents may claim to be entitled. Consultant agrees that only those persons approved by Company or Morrow will be involved directly and on a regular basis in providing the Work described above and overseeing the performance of such services, and that such individuals will devote sufficient time to the Work as will be required to complete the Work consistent with this Agreement. 12. Indemnification. Consultant shall indemnify, defend and hold harmless Company and Morrow, and their respective affiliates, subsidiaries, agents, members, employees, representatives, shareholders and officers ("Affiliates"), from any loss, damage, liability, costs and claims thereof, including without limitation, all court costs and attorneys' fees arising directly or indirectly out of Consultant's (i) acts or omissions outside the scope of Consultant's authority; (ii) in breach or default of its obligations under this Agreement; and (iii) negligent performance of services under this Agreement, except to the extent the same results from the sole gross negligence or the willful misconduct of Company, Morrow or their Affiliates. "Affiliates" also includes any company, partnership or other entity in which Company or its principals own, directly or indirectly, an actual or beneficial interest greater than twenty-five percent. 13. insurance. Without in any way limiting Consultant's obligations hereunder, Consultant shall, during the term of this Agreement, maintain the following policies of insurance with insurers licensed in California holding a minimum rating of (i) AV or better or (ii) B+X or better: 13.1 Worker's Compensation as required by law and Employer's Liability with policy limits not less than $1,000,000 per occurrence and a separate Waiver of Subrogation issued for the benefit of Company and Morrow, and their Affiliates. 13.2 Commercial General Liability (Bodily Injury and Property Damage) insurance, the limits of which shall not be less than $1,000,000 per occurrence. Such policy shall be on an occurrence (and not a claims made) basis, including coverages for (a) blanket contractual liability; (b) broad form property damage; and (c) explosion, Page 4 of 17 collapse and underground hazard; and (d) products and completed operations, to the extent applicable to the Work. 13.3 Automobile Bodily Injury and Property Damage Liability Insurance. Such insurance shall extend to owned, non-owned, and hired automobiles used in the performance of this Agreement. The limits of liability of such insurance shall not be less then $1,000,000 for Bodily Injury and Property Damage Liability combined per occurrence. 13.4 Professional Liability Insurance, the limits of which shall not be less than $1,000,000 per claim and in the aggregate with supplementary coverage for Contractual Liability to cover any liability assumed under this Agreement which is otherwise insurable under such Professional Liability Insurance. 13.5 None of the insurance coverages described herein shall be terminated, canceled, or substantially changed without thirty (30) days' prior written notice to Company and Morrow. 13.6 Without prior written consent by Company or Morrow, the deductible amount under any of the insurance coverage described herein shall not exceed twenty-five thousand dollars ($25,000.00). 13.7 Except for the insurance coverages required under Sections 13.1 and 13.4, the above insurance shall name Company and Morrow, and their Affiliates, as an additional insured with respect to Work performed hereunder, and contain a Cross Liability Endorsement which provides that the insurance applies separately to each insured and will cover claims or suits by one insured against another. Such additional insured endorsement(s) shall state that such policy is primary and that any insurance carried by an additional insured is excess and non-contributing. The additional insured endorsement for commercial general liability must provide coverage for completed operations if applicable to the Work. 13.8 Before commencing the Work, Consultant shall provide Company and Morrow an original certificate of insurance or certified copies of all policies, or other documentary evidence of the above insurance coverages satisfactory to Company. 14. Consultant Payment. 14.1 Payment to Consultant shall be made as set forth herein following delivery to Company of (i) a conditional lien waiver and release (for progress or final payment as applicable) in favor of Company and Morrow in form and substance satisfactory to release all claims with respect to such payment under applicable law, and (ii) Consultant's written certification in the form of Exhibits "B" and "B-1", attached hereto, executed by Consultant's authorized representative which shall contain an estimate by the Consultant of the "percent complete" of the services performed by Consultant for the payment period covered by the statement. Such statement shall also include, for items of work identified to be compensated on a time and materials basis, an estimate by the Page 5 of 17 Consultant of the "percent complete" of total hours worked by each of the Consultant's employees and of the services performed by each such person. Such statement shall also include an itemization of all reimbursable expenses. Consultant's statements shall represent payment in full for the portion of the Work described therein and shall declare that; (i) the labor, services and materials, if any, covered by the statement have actually been furnished and performed; (ii) any liens which may arise as a result of applicable state statutes have been released or waived to the extent of the statement; and (iii) that all subcontractors, employees, or other persons have been paid in full for any labor, materials or services included in the statement. In the event all subcontractors have not been paid for releases therefrom obtained as set forth herein, Company may withhold from the payment due to Consultant, an amount equivalent to the purported sum owing by Consultant to such subcontractor until Consultant has paid such subcontractor in full or if such payment is in dispute, until Consultant has provided Company with an indemnity agreement satisfactory to Company with respect to the lien claims of such subcontractor. 14.2 Consultant shall submit to Morrow on or prior to the 15th day of any month a fully completed Request for Payment (Exhibit "B") for Work completed during the preceding month together with the supporting materials described in Section 14.1 above. Payment of such requests shall be made on, or prior to the 15th day of the subsequent month provided all certifications, supporting statements and/or lien releases identified herein are received within five (5) days of the submittal of such request for payment. In the event the supporting statements are not received within five (5) days after submission of payment request, payment shall be due on or prior to the 15th day of the first month after Morrow receives all supporting information and statements so long as all supporting statements and/or lien releases are received by Morrow prior to the twentieth day of the month which precedes expected payment. 15. Assignment. Consultant shall not assign its obligations hereunder without the specific written consent of Company which may be withheld in the sole discretion of Company. Company may, in its sole discretion, freely assign its rights and obligations to an entity deemed by Company as reasonably capable of performing Company's obligations hereunder and shall notify Consultant in writing of such assignment. Consultant specifically acknowledges that Company may at any time assign its rights under this Agreement without the necessity of consent of any third party. 16. Confidentiality. Consultant acknowledges that with respect to Company's Project, if such plans become generally known, Company's opportunities with respect to the Project would be prejudiced. Therefore, while performing services related to Company's Project, Consultant, unless approved in writing by Company or Morrow, shall refrain from disclosing the nature and purpose of its services to any third party, including real estate agents and brokers, except public agency staffs and individuals whom Consultant must contact in performing the Work, or its counsel or accountant. Further, in connection with the Company's Project, Consultant shall not, by itself, in connection with or in the name of another, or through affiliation with any entity, acquire property or rights in conflict with Company's interest. In the event Consultant does so, any such purchase, acquisition, option or contract will be deemed at Company's sole Page 6 of 17 option, to have been acquired on behalf of Company, and Consultant shall forthwith execute or cause to be executed any documents necessary to transfer such property rights or the rights thereto Company. All information acquired by Consultant, including materials prepared by Consultant, concerning the subject of the services to be rendered under this Agreement or Company's intentions with respect thereto, shall be considered strictly confidential ("Confidential Information"). Consultant shall not disclose any Confidential Information to others without Company's or Morrow's prior written consent, nor use the Confidential Information for any purpose other than as necessary in connection with the Work or additional services rendered in accordance with this Agreement. Disclosure to Consultant's employees and agents who agree to be bound by the terms of this Section 17 is permitted when required in connection with the Work to be rendered under this Agreement. Upon termination of this Agreement, Consultant shall return all Confidential Information to Company. Consultant agrees that ideas or concepts under consideration by Company or Morrow and disclosed to or developed by Consultant are confidential and proprietary to Company and may not be utilized by Consultant for any purpose other than in connection with the services to be rendered hereunder, nor disclosed to any third party unless authorized in writing by Company. Consultant agrees to commit its employees, advisors, agents, and subcontractors to protect the confidential and proprietary nature of these ideas and concepts. 17. No Gratuities. Neither Consultant nor its subcontractors, directors, employees or agents of any of them, will give or receive any commission, fee, rebate, gift or entertainment of material cost or value in connection with Consultant's services hereunder without prior written notification and consent from Company or Morrow. It is further understood that under no circumstances are Consultant, its directors, employees, agent or subcontractors or their directors, employees or agents to make any payment, or give anything of value, to any governmental official (including any officer or employee of any government department, agency or instrumentality) to influence a decision, or to gain any other advantage for Company or Consultant, in connection with services performed hereunder. Consultant will promptly notify Company of any violation of this Paragraph 17 and any consideration received as a result of such violation shall be administered as directed by Company. Additionally, if any violation of this Section 17 occurred prior to the date of this Agreement or Authorization to proceed, Company may, at its sole option, terminate this Agreement and, notwithstanding any other provision thereof or of any Authorization, not pay compensation or reimbursement to Consultant whatsoever for any work done after the date of termination. 18. Accurate Records. Consultant shall maintain true and accurate records in connection with its services and reimbursable charges hereunder and all transactions related thereto and shall retain such records for at least 48 months after completion of such services. Company may audit any and all records of Consultant relevant to any charges hereunder. Consultant shall also provide Company or Morrow a true and correct copy of any required license annually. 19. Compliance with Laws. Consultant and its subcontractors shall comply with all applicable laws, regulations, decrees, codes, ordinances, resolutions, and other acts of any governmental authority, including, but not limited to, Federal and state labor, Page 7 of 17 occupational health and safety, environmental and tax laws, which are applicable to this Agreement and Consultant's and its subcontractors performance hereunder during the period in which the services are performed, and shall indemnify, defend and hold harmless Company, Morrow and their Affiliates from any damage, injury, liability, claims, fines and penalties resulting directly or indirectly from Consultant's or its subcontractors' failure to do so in accordance with Section 12. 20. California Law. This Agreement shall be deemed to be a contract made and performed in the State of California and will be governed by the substantive law of that state without regard to the principles of conflict of laws. 21. Attorneys Fees. If Consultant, Company or Morrow (including Affiliates of Company or Morrow) is a party to any action or proceeding to enforce any of the terms of this Agreement, the prevailing party(s) in such action or proceeding (as determined by the judge or presiding official) shall be entitled to receive from the non-prevailing party(s), the prevailing party(s) costs and reasonable attorneys fees, incurred in prosecuting, defending or appearing in such action or proceeding. 22. ARBITRATION. ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY AGREEMENTS OR INSTRUMENTS RELATING HERETO OR DELIVERED IN CONNECTION HEREWITH, INCLUDING, BUT NOT LIMITED TO A CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT WILL, AT THE REQUEST OF ANY PARTY, BE DETERMINED BY ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (9 U.S.C. SECTION 1 ET SEQ.) UNDER THE AUSPICES AND RULES OF THE AMERICAN ARBITRATION ASSOCIATION ("AAA"), EXCEPT AS OTHERWISE PROVIDED BELOW OR AGREED BY THE PARTIES. IF BOTH PARTIES CANNOT AGREE ON AN ARBITRATOR WITHIN FIFTEEN (15) DAYS AFTER DELIVERY OF A REQUEST FOR ARBITRATION, THE ARBITRATOR SHALL BE APPOINTED BY THE PRESIDING JUDGE OF THE SUPERIOR COURT FOR THE COUNTY OF SAN DIEGO, PROVIDED SUCH ARBITRATOR SHALL HAVE AT LEAST TEN YEARS EXPERIENCE IN DEVELOPMENT OF RESIDENTIAL MASTER PLANNED COMMUNITIES. THE ARBITRATION WILL BE CONDUCTED IN SAN DIEGO COUNTY AND IN RENDERING ITS DECISION, THE ARBITRATOR SHALL APPLY THE SUBSTANTIVE LAWS OF THE STATE OF CALIFORNIA, AND WHERE APPLICABLE, THE SUBSTANTIVE LAWS OF THE UNITED STATES OF AMERICA. ANY CONTROVERSY IN INTERPRETATION OR ENFORCEMENT OF THIS PROVISION OR WHETHER A DISPUTE IS ARBITRABLE, WILL BE DETERMINED BY THE ARBITRATOR IN ACCORDANCE WITH CALIFORNIA LAW. JUDGMENT UPON THE AWARD RENDERED BY THE ARBITRATOR MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. THE INSTITUTION AND MAINTENANCE OF AN ACTION FOR JUDICIAL RELIEF IN PURSUIT OF AN ANCILLARY REMEDY DOES NOT CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY, INCLUDING THE PLAINTIFF, TO SUBMIT THE CONTROVERSY OR CLAIM TO ARBITRATION. NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION UNDER CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR BY JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES Page 8 of 17 PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. WE HAVE READ AND UNDERSTAND THE FOREGOING INITIALS AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION. Company's initials Consultant's initials 23. Entire Agreement. This Agreement constitutes the entire and integrated agreement between the parties and all prior and contemporaneous negotiations, representations and agreements, written or oral, if any, between the parties with regard to the subject matter of this Agreement are superseded and canceled hereby and shall not be used to interpret to construe this Agreement. No amendment or other modification of this Agreement shall be effective or enforceable unless in writing duly signed by Company and Consultant. 24. Notice. Wherever in this Agreement it shall be required that notice or demand be given or served by either party on the other, such notice or demand shall be given or served only if in writing and personally served at or forwarded by certified or registered mail, postage prepaid, addressed to the parties specified below. Any notice or demand given by mail as aforesaid shall be effective the second business day after mailing. Either party may change such address by written notice given in accordance with the terms hereof. Personal service may be by means of messenger, courier, commercial service such as Federal Express, telegram or telecopier or similar electronic delivery and shall be effective upon receipt. To the Company: c/o Morrow Development, Inc. Mailing Address: 1903 Wright Place, Suite 180, Carlsbad, CA 92008 Delivery Address: Same as Mailing Address To the Consultant: At the address provided on the signature page. 25. No Waiver. The failure of either Consultant or Company to insist in any one or more instances upon the strict performance of any of the terms of this Agreement or to notify the other party of any default hereunder shall not be construed as a waiver or a relinquishment of the right to insist upon future performance of such terms or the right to thereafter declare a default hereunder. If any provision of this Agreement shall be held by a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of this Agreement shall remain in full force and effect. 26. Morrow Agency. Company has represented to Consultant that Morrow is the authorized agent of Company and authorized by the Company to act as the Development Manager on behalf of the Company regarding this Agreement. Consultant acknowledges and agrees that Morrow, its officers, directors, shareholders, and Page 9 of 17 employees shall have no liability under this Agreement and that all rights and liabilities under this Agreement shall be those of Company. 27. Conflict. In the event of a conflict between the terms of this Agreement (and any authorization issued pursuant hereto), and any proposal, contract or exhibit prepared by Consultant which may be attached to any Authorization, the terms of this Agreement shall prevail. [Remainder of Page Intentionally Left Blank] Page 10 of 17 28. Survive Termination. Those provisions regarding confidentiality, indemnity and other similar covenants shall survive the termination or other expiration of this Agreement. In witness whereof, the parties have signed this Agreement in duplicate or counterpart originals effective the first date set forth above. CONSULTANT Helix Environmental Planning, Inc. COMPANY REAL ESTATE COLLATERAL MANAGEMENT COMPANY, a Delaware corporation 8100 La Mesa Blvd., Suite 150 La Mesa, CA 91941 APPROVED: OPMENT, INC. Page 11 of 17 EXHIBIT "A" SCOPE OF WORK Consultant: Helix Environmental Planning, Inc. Contract No.: 382 Consultant agrees to furnish all labor, personnel, materials and equipment necessary to perform the Scope of Services (the "Work") described below and to complete performance of the Work in accordance with the performance schedule or the completion of dates set forth below. Consultant shall exert Consultant's best efforts, skill and judgment and shall exercise all due diligence to complete the Work in accordance with the terms of the Agreement to which this Exhibit is appended and in the most expeditious, sound and economical manner. PROJECT DESCRIPTION: Environmental Mitigation Offsite Acquisition SCOPE OF WORK: Helix's will carry out the vernal pool enhancement and subsequent 5-year maintenance and monitoring program as described in the Villages of La Costa Vernal Pool Enhancement Plan (Helix 2001). The project goal is the enhancement of the 15 vernal pools on site to a more viable condition. As described in the plan, the current condition of these vernal pools is poor due to prior to impacts from adjacent development as well as human and vehicular intrusions. The plan calls for the removal of existing debris, intrusive weeds and damage due to vehicular intrusions within the existing vernal pools. In addition, the plan calls for minor alterations to pool topography to remedy prior damage and improve overall pool function. This proposal includes these tasks. Additional activities such as fence and berm construction are not included in our scope of services. Each project task is described below. Task 1: Vernal Pool/Upland Enhancement. A. Trash/Debris Removal Helix will remove all trash and debris from site prior to initiation of enhancement activities. All refuse will be disposed of off site in a licensed landfill. B. Upland Enhancement Helix will mow all of the non-native duff. Following mowing the entire upland area will be seeded with an appropriate native seed mix. Page 12 of 17 C. Vernal Pool Enhancement The specific tasks identified in Table 6 of the enhancement plan will be carried out for each pool. These tasks include weeding, debris/trash removal, removal of tire ruts and minor re-contouring. Special care will be taken when working within the pools to avoid impacts to any sensitive species. Task 2: 5-Year Maintenance. A. 5-Year Maintenance Helix will conduct regular maintenance visits for a 5-year period in accordance with the schedule presented in the enhancement plan. The maintenance program will include removal of trash, weed control, minor fence repair and remedial measures necessary for the success of enhancement program. Helix will not be responsible for major repairs made by unforeseen occurrences such as fire, flooding, or other disasters (natural or otherwise). Task 3: 5-Year Monitoring and Reporting. A. Year Monitoring A qualified Helix with vernal pool experience will conduct regular maintenance monitoring visits for a 5-year period in accordance with the schedule presented in the enhancement plan. During each scheduled monitoring visit the biological monitor will note the general state of the preserve area and inform the maintenance crew of any required remedial measures. B. Annual Monitoring/Reporting The biological monitor will conduct an annual monitoring visit each spring during the 5-year monitoring period. During the annual visits a visual assessment of species cover and richness will be made for each vernal pool onsite. The collective data will be compared with the success criteria presented in the enhancement plan to determine if the project is successful or not. At the each annual monitoring visit a letter report will be prepare describing the condition of the preserve and noting any corrective measures necessary to achieve success. The annual letter reports will be submitted to the Client, maintenance personnel and the City of Carlsbad. Assumptions This proposal assumes 15 vernal pools will be enhanced, maintained and monitored for a 5-year period. Initially, approximately 3.3 acres of upland will also be cleared of Page 13 of 17 debris, weeded, raked and seeded. Any additional areas to be surveyed or maintained are not included in this proposal and would require a contract amendment. The cost presented here are based on an intensive initial effort with the level of effort diminishing over the years. There is a possibility, because of the highly disturbed state of this land, that additional effort will be necessary in years 4 or 5 to meet final success criteria. The cost associated with this additional effort are not included in this scope of work. This scope of work does not include cost associated with fencing, berm construction or irrigation. Cost associated with any additional surveys, meetings, construction monitoring, document preparation and/or other technical studies are not included in this scope of services. Schedule Helix will work with Client in a timely and professional manner. Enhancement of the vernal pools and upland area is expected to take less than two weeks to complete. The 5-year maintenance and monitoring period will begin upon successful completion of the initial enhancement activities. The annual letter reports will be prepared and submitted within 60 days of completion of each annual monitoring visit. Cost Estimate and Payment Procedures Helix is pleased to submit this lump sum not to exceed the cost estimate of $46,900.00 for Tasks 1, 2 and 3. Below is the cost breakdown for each task. Task 1 Vernal Pool/Upland Enhancement $7,100.00 Task 2 5-Year Maintenance $24,000.00 Task 3 5-Year Monitoring and Reporting $15,800.00 Total $46,900.00 Consultant's Initial Company's Initial Page 14 of 17 EXHIBIT "B" REQUEST FOR PAYMENT CONTRACT NO. 382 JOB NUMBER/DESCRIPTION: 81-13 / Environmental Mitigation CONSULTANT: Helix Environmental Planning, Inc. 8100 La Mesa Blvd., Suite 150 La Mesa, CA 91941 The undersigned Consultant hereby requests payment pursuant to the invoice attached showing the personnel, time, and rate for each of the work tasks described in the Scope of Work: Invoice Number: Date: Invoice Period: Consultant's Approval: Initial Contract Amount: Addendums to Date: TOTAL Contract Amount: Percent Complete: (See Attached Spreadsheet) $46.900.00 $ 0.00 $46.900.00 Please submit to:Real Estate Collateral Management Company c/o Morrow Development, Inc. 1903 Wright Place, Suite 180 Carlsbad, CA 92008 Page 15 of 17 HELIX 382 1/8/02 WORK DESCRIPTION ENVIRONMENTAL MITIGATION/OFFISTE ACQUISITON 81-13/40-4010 VERNAL POOL/UPLAND ENHANCEMENT 5-YEAR MAINTENANCE 5-YEAR MONITORING AND REPORTING TOTAL-CONTRACT A RMlBURSABLES 81-28/90-9140 TOTAL-REIMBURSABLES TOTAL THIS INVOICE CONTRACT AMOUNT 7,100.00 24,000.00 15,800.00 46,900.00 N/A N/A PREVIOUS AMOUNT BILLED 0.00 0.00 0.00 0.00 0.00 0.00 AMOUNT DUE THIS PERIOD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Complete: TOTAL BILLED TO DATE 0.00 0.00 0.00 0.00 0.00 0.00 0% CONTRACT REMAINING 7,100.00 24,000.00 15,800.00 46,900.00 N/A N/A Page 1 of 1 EXHIBIT "B-1" CERTIFICATION OF THE CONSULTANT I HEREBY CERTIFY that the work performed and the materials supplied, if any to date, as shown on the accompanying Request for Payment dated , represent the actual value of the accomplishment under the terms of the Contract (and all authorized changes thereto) between the undersigned and Company in connection with the above referenced project. I also certify that all payments current for, (i) all materials, equipment and labor used in, or in connection with, the performance of the Contract, and (ii) all laborers and other personnel employed directly by me and performing work on the project through the periods covered by prior invoices paid by the Company. I further certify that to the best of my knowledge I have complied with performing work on the project. I further certify that to the best of my knowledge I have complied with federal, state and local tax laws, including social security laws and unemployment compensation laws and worker's compensation laws insofar as applicable to the performance of the Agreement. I further certify that the amount received under this payment request will be applied to discharge all labor, labor trust funds material and subcontract obligations applicable to this project and up to date thereof. The labor, equipment or materials (or any of them) covered by this Request for Payment have been furnished and performed as called for by the Agreement. All material suppliers to, and laborers for the undersigned, have been paid in full for the goods or services included within the Request for Payment or will be paid with the proceeds of any disbursement made pursuant to this Request for Payment, which disbursement will be received in trust for that purpose. Undersigned shall hold harmless Company, Morrow and the Project from any cost, expense (including attorney's fees) or liability arising out of the breach of the above Certification. ENDORSEMENT OF LIEN RELEASE To induce Company to make the Payment requested above, pursuant to: Contract No.:382 Invoice No.: the undersigned agrees and certifies as follows: (a) Any payment issued on the basis of this Request for Payment shall constitute payment in full to the extent set forth in the attached Request for Payment. (b) Any and all mechanic's liens, stop notices and other rights and remedies under the Mechanic's Lien Law of the State of California and related similar laws, are hereby released and waived to the extent of the Request for Payment. (c) Lien releases shall be in the form required by Civil Code § 3262. (d) The above waivers and releases are conditional and shall be effective upon receipt of the payment requested herein. Executed this day of , . Name of Consultant: Helix Environmental Planning, Inc. By: (Its Duly Authorized Agent) Page 16 of 17 EXHIBIT "C" LETTER OF AUTHORIZATION Consultant: Contract Number: Helix Environmental Planning, Inc. 382 This letter constitutes Authorization under the above-referenced Contract. All services performed under this Authorization shall be in accordance with the terms and conditions of such Contract. The Scope of Work to be done under this Authorization is as outlined in Exhibit "A". The maximum authorized for the services under this Authorization is $46,900.00. This amount is not to be exceeded without prior written consent of Company, reimbursable expenses shall be limited to reproduction, blueprinting, overnight mail and messenger service. All permitted reimbursable expenses shall be billed at actual cost plus a ten percent administrative charge. Each invoice will be accompanied by applicable receipts and documentation for reimbursables. Each invoice must include Exhibits "B" and "B-1", both completely filled out, including Description of Work or services performed, total amount authorized hereunder, amount of time spent, name of person/s who provided the Work and services described, and percent complete. Insurance Policies shall name Morrow Development, Inc. and Real Estate Collateral Management Company, and their respective Affiliates (shareholders, directors, agents, members and employees) as Additional Insureds: If to Morrow: Morrow Development, Inc. Attn: Fred Arbuckle 1903 Wright Place, Suite 180 Carlsbad, CA 92008 If to Company: Real Estate Collateral Management Company c/o Morrow Development, Inc. 1903 Wright Place, Suite 180 Carlsbad, CA 92008 If this Authorization is acceptable to you, please indicate your acceptance by signing both copies and returning one copy to this office. COMPANY REAL ESTATE COLLATERAL MANAGEMENT COMPANY^ Delaware Corporation CONSULTANT Helix ETiVi/oi APPRO -red M. Arbuckle President Page 17 of 17 May 4,2003 Tom C. Dyke Drilling and Blasting Company P.O. Box 352 Alpine, CA 91903 Dear Sir or Madam: Subject: Blasting damages on residential property As part of the development work for the Villages of La Costa project in Carlsbad, CA there has been a substantial blasting operation. The blasting events have been felt in the neighborhood and the strength of the shock waves hitting the residential area has made the houses swing and shake. Whether the minimum requirements established in the City of Carlsbad Engineering Department Policy No. 15 have been met or not is not known by us but the blasting has without doubt caused both inconvenience and, in some cases, damages. It is obvious that the blasting have had a negative impact on our own residential property with damages as a consequence. Noticeable are cracks appearing both on the outside and inside of the house. If there are any damages causing weaknesses in the basic structure of the house we cannot, and should not be expected to, judge. However, our concern for hidden structural damages has been raised even further since a close neighboring property has gotten a big crack in the patio part of the base concrete slab. Also, we have had water pipes breaking at two occasions without any obvious reason, with costly repairs as a consequence. These costs have been covered by the property insurance but in turn made the insurance company to select not to renew the policy. As a less severe problem it .should be mentioned that items have fallen down from shelves during the actual blasting. The rate at which cracks started to occur had its peak in January-February of 2003. This is the time when the blasting was at its closest to our property. This certainly shows the connection between blasting and damages. We request the properly to be re-inspected and the result to be compared with the pre-blasting inspection done earlier, at your expense. Proper action should then be based on the damage assessment. We also request the rights to compensation for any hidden damage(s) being found in the future. Sincerely, Per Ame Lagervall Anita Lagervall 3525 Calle Gavanzo Carlsbad, CA 92009 Work Ph: (760) 602-7217 Home Ph: (760) 632-7638 E-mail: plaqervallgjadelphia.net CC: City of Carlsbad / Planning Department 1635 Faraday Avenue Carlsbad, CA 92008 DEVELOPMENT VIA HAND DELIVERY January 8, 2002 <gV 1903 Wright Place, Suite 180 Carlsbad, CA 92008 phone: 760 929-2701 fax: 760 929-2705 Mr. Don Neu Senior Planner , City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 - • . . Re: Mitigation, Monitoring and Reporting Program Section 4.9-1 Dear Don: Enclosed please find the Villages of La Costa Travel Demand Management Plan for Construction Traffic prepared by Linscott, Law & Greenspan. This management plan is intended to satisfy Condition 4.9-1 of the Mitigation, Monitoring and Reporting Program. I anticipate that you will sign off on this condition as being satisfied. If you have additional requirements or if you have any questions or need any further information, please don't hesitate to call me at 760/929-2701 ext. 103 or e-mail at iiackson@moiTowdevelopment.com. Sine rely, Jame s M. Jackson Senior Vice President JMJ: jmj cc Jack Henthorn - Henthorn Associates (w/enclosures) Tim O'Grady - Morrow Development (w/enclosures) & n Enclosures 1 LINSCOTT LAW & GREENSPAN ENGINEERS VILLAGES OF LA COSTA TRAVEL DEMAND MANAGEMENT PLAN FOR CONSTRUCTION TRAFFIC CARLSBAD, CALIFORNIA INTRODUCTION The following Travel Demand Management (TDM) plan for construction traffic has been prepared to maximize the people-moving capability of the transportation system by either increasing the number of persons in a vehicle, or by influencing the time of, or need to, travel. To accomplish these types of changes, TDM programs rely on incentives or disincentives to make these shifts in behavior attractive. An alternative to individual choice can be achieved by employer's requirements. GOAL The primary goal of this plan is to reduce the number of vehicles using the roadway system while providing a wide variety of mobility options to those who wish to travel. The objective is to increase the vehicle occupancy rate to 1.5 people per vehicle. TDM PLAN A TDM plan can be implemented through one or more of the following choices: 1. Meeting off-site to vanpool on-site 2. Utilizing a rideshare match list 3. Providing on-site food services 4. Sharing a common errand person 5. Having off-peak work schedules 6. Using assigned routes Meeting at an off-site location, such as a contractor's office, and then vanpooling to the work site will increase the vehicle occupancy rate. This will also help is reducing the on- site parking demand, which can also interfere with heavy machinery. Having a rideshare match list will provide the workers with the information necessary to carpool. By providing on-site food services, off-site trips can be reduced or eliminated during the lunch hour. LINSCOTT LAW & GREENSPAN ENGINEERS Having a common person or a single contractor combining off-site errands will reduce the overall number of trips originating from the construction site. Typically, construction work starts and ends at different peak periods as compared to the commuter peak periods. However, other construction traffic such as deliveries anticipated during the commuter peak periods could be shifted when possible. Lastly, as multiple routes are typically available to reach construction sites, requests can be made to follow specific routes that are less congested and or to avoid community sensitive routes. STRATEGIES To implement a TDM plan, incentives, disincentives or obligations are necessary. Examples of TDM strategies include: 1. Providing financial/time incentives 2. Imposing financial/time disincentives 3. Including a contractual obligation Financial incentives can vary widely; however, with the primary goal would be to create enough of a monetary incentive that worker would follow a TDM plan. Time incentives could vary from reducing the workday to shifting the start and end times of the workday. Disincentives ar e bas ically t he o pposite o f t he inc entives I isted abo ve, which may include penalties for not following start/end times or for not carpooling. All construction contracts shall contain an obligation that contractors use their best efforts to implement a TDM plan as outlined in this report. RECOMMENDATIONS It is recommended that this TDM plan be disseminated to all contractors to the Villages of La Costa project. DEVELOPMENT , -. VIA HAND DELIVERY Carlsbad, CA 92008 January 10, 2002 , phone: 760 929-2701 Mr. Don Neu Senior Planner fax: 760 929-2705 City of Carlsbad ' , 1635 Faraday Avenue Carlsbad, CA 92008-7314 • Re: MM&RP Conditions 4.4-24A, 4.4-24B, 4.4-25, 4.4-26 Dear Don: Enclosed please find a copy of a letter regarding Oaks Village Pre-construction Raptor and Gnatcatcher Survey Results from Helix Environmental Planning dated January 8, 2002. This survey was performed to determine the presence of nesting raptors and gnatcatchers. The results include the observation of one active raptor nest and no nesting gnatcatchers. The raptor nest has been plotted on the grading plans submitted to the city along with 200' radius that indicates there should be no disturbance to this nest by the Oaks South grading operation. Based on providing you the results of this survey, we have completed the requirements of MM&RP Condition 4.4-24B. We believe that by plotting the active raptor nest on the grading plans along with the 200' radius with clear instructions that no grading activity shall take place within the radius, we have meet the Condition 4.4-24B. By providing you the results of the gnatcatcher survey indicating no nesting birds, we believe we have met Condition 4.4-26. Condition 4.4-25 applies to gnatcatcher mating season, and as such, we will schedule another gnatcatcher survey for the week before the mating season to identify any nesting birds within or adjacent to the grading operation. Based on the results of this survey, the mitigation measures prescribed in Condition 4.4-25 will be applied. I anticipate that you will sign off on these conditions as being satisfied. If you have additional requirements or if you have any questions or need any further information, please don't hesitate to call me at 760/929-2701 ext. 103 or e-mail at i iackso.n@morrowdevelopment.com. Sincerely, .Jackson Vice President JMJ:jmj cc Jack Henthorn - Henthorn Associates (w/enclosures) Enclosures 1 Jan-l.O-02 O8 : O4A P. 02 /W f.fl /Wt'-va Blvd., Suite La Mesa, Ci\ 9t94 fax (619) 462-0552 phone (61$) 462-1515 January 8, 2002 MDI-06 Mr. Jim Jackson Morrow Development 1903 Wrighl Place Suite 180 Carlsbad, California 92008 Subject: Oaks Village reconstruction Raptor and Gnatcatcher Survey Results Dear Mr. Jackson: This letter is written to report on the results and conclusions of a survey for nesting raptors and coastal California gnatcatchers (Polioptila califomica californica) conducted January 4, 2UU2. The survey was conducted to determine the potential for project- related, effects on nesting raptors and gnatcatchers. Methods The survey was conducted in the area south of the high-power utility lines that bisect the Oaks Property. This area corresponds with the first phase of development of the Oaks Village, proposed to be initiated in spring of this year. The entire area was walked and binoculars of 7X36 power were used to aid in bird identifications and observations of behavior. Nesting activities, for the purposes of this letter, are defined as gathering of nesting materials, nest-sittirtg, copulation, feeding on nestlings, and occupation of a nest site. Any of these activities infer that nesting is occurring or is imminent. Results Four pairs of coastal California gnatcatchers were observed using the area and two red-tailed hawks (Bwteo jamaicensis) were observed, along with a single raptor nest. The gnatcatchei pairs were observed in both the east and west portions of the survey area. Two pairs were on the large hill to the east, while the other two pairs were along the dirt road to the west. None of the gnatcatcher pairs exhibited signs of nesting behavior, but rather all were foraging in low brush. The two red-tailed hawks observed were in different parts of the site, with one bird observed on top of a electrical tower and the other flying over the eastern part of the site. These birds potentially constitute a pair, although no observations led to that conclusion. A single raptor nest, similar to those used by a red-tailed hawks or great-horned owls (Bub(i virgininnus), was observed in a sycamore (Plutimus Tiicentoaii) in the oak woodland area. No signs of current occupation of this nest were observed and the nest is located more than 200 feet from the proposed limits of construction. Oan-l,O-O2 O8:04A ^^ ^^ P.O3 Letter to Mr. Jim Jackson Page 2 of 2 January 8,2002 Conclusion Based on the results of our survey, no nesting raptors of gnatcatchers are currently occupying the site. However, the gnatcatchers will likely begin nesting sometime after February 15, as they do in most years. The raptor nest appears unoccupied at present, but Ihere is a possibility that 1) it was occupied and the residents were temporarily absent during the survey or 1) it will become occupied as the season progresses. Regardless, the location of the raptor nest is outside more than 200 feet from grading limits and if the nest were to become occupied the noise would still not be an issue due to that distance. If you have any questions or comments regarding this letter, please call me. Sincerely, Scott Taylor Project Biologist DEVELOPMENT VIA HAND DELIVERY 1903 Wright Place, Suite 180 .Carlsbad, CA 92008 phone: 760 929-2701 fax: 760 929-2705 January 8, 2002 Mr. Don Neu Senior Planner City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 Re: Mitigation, Monitoring and Reporting Program Conditions 4.4-13, 4.4-14 & 4.4-15 Dear Don: Enclosed please find a copy of the California Department of Fish and Game Agreement Regarding Proposed Stream or Lake Alteration Notification No.5-349-99. This is our "1603 Permit". This is the last of the permits required under Mitigation, Monitoring and Reporting Program Conditions 4.4-13, 4.4-14 & 4.4-15. I anticipate that you will sign off on this condition as being satisfied. If you have additional requirements or if you have any questions or need any further information, please don't hesitate to call me at 760/929-2701 ext. 103 or e-mail at ijackson@.morrowrdevelopment.com. Sinderely, M. Jackson Senior Vice President JMJ: jmj cc Jack Henthorn - Henthorn Associates (w/enclosures) Enclosures 1 01/38/2002 13:52 858467423 DFG REGIONS PAGE 02/88 STATE OF CALIFQRNIA-THE RESOURCES AGENCY GRAY DAVIS., DEPARTMENT OF FISH AND GAME South Coast Region 4949 Viewrldfla Avenue San Diego, California 92123 (858) 467-4201 FAX (S58) 467-4235 January 08, 2002 Real Estate Collateral Management Company Attn: Fred Arbuckle 1903 Wright Place, Suite 180 Carlsbad, CA 92008 Pear Mr. Arbuckle: Enclosed is Streambed Alteration Agreement 5-349-99 that authorizes work on the Villages of La Costa project impacting Encinitas Creek in San Diego County. This action is authorized under Section 1600 of the Fish and Game Code and has been approved by the California Department of Fish and Game. Pursuant to the requirements of the California Environmental Quality Act (CEQA), the Department filed a Notice of Determination (NOD) on the project on Ol /6K/02~ Under CEQA regulations, the project has a 30-day statute of limitations on court challenges of the Department's approval under CEQA The Department believes that the project fully meets the requirements of the Fish and Game Code and CEQA However, if court challenges on the NOD are received during the 30- day period, then an additional review or even modification of the project may be required. If no comments are received during the 30-day period, then any subsequent comments need not be responded to. This information is provided to you so that if you choose to undertake the project prior to the close of the 30-day period, you do so whh the knowledge that additional actions may be required based on the results of any court challenges that are filed during that period. Please contact Tamara Spear at (858) 467-4223 if you have any questions regarding the Streambed Alteration Agreement. Sincerely, C.F, RaysBrook Regional Manager Enclosure cc: Tamara Spear 01/408/2002 13:52 8584G74235 DFG REGIONS ^ . PAGE 03/08 CALIFORNIA DEPARTMENT OF FISH AND GAME 4949 Viewridge Avenue San Diego, California 92123 Notification No.5-349-99 AGREEMENT REGARDING PROPOSED STREAM OR LAKE ALTERATION THIS AGREEMENT, entered into between the State of California, Department of Fish and Game, hereinafter called the Department, and Fred ArbuckJe. of Real Estate Collateral Management Company. State of California . hereinafter called the Operator, is as follows: WHEREAS, pursuant to Section 1603 of California Fish and Game Code, the Operator, on the 18th day of November. 1999. notified the Department that they intend to divert or obstruct the natural flow of, or change the bed, channel, or bank of, or use material from the streambed(s) of, the following water(s): fifteen unnamed drainages, tributaries Encinitas Creek and San Marcos Creek. San Diego County, California, Section 31.32.23.24.25.26 Township12_ Range 3W. 4W . WHEREAS, the Department (represented by Tamara Spear) has determined that such operations may substantially adversely affect those existing fish and wildlife resources within unnamed drainages, tributaries to San Marcos Creek, specifically identified as follows: Birds: coastal California qnatcatcher (Polioptila califomica califomica). least Bell's vireo (Vireo belfn pusilfus). southwestern willow flycatcher (Emoidonax trailln extimus). California homed lark (Eremophila alpestris acfia). southern California rufous- crowned sparrow (Aimophila ruficeps canescensY Bell's saoe sparrow (Amphisptza belli belli], burrowing pwi (Athene cunicularia). northern harrier (Circus cvaneus). yellow warbler (Dendroica petechra brewsteri). loggerhead shrike (Lanius ludovitianus). vellow- breasted chat (Icteria virens). Cooper's hawk (Accipiter coopern, red-shouldered hawk (Buteo lineatus). red-tailed hawk (Btrteo iamaicensis). white-tailed kite (Banus caeruleus): Reptiles: side-blotched lizard (Ufa stansburiana). Great Basin fence lizard (Scetoporus occidentalis): Amphibians: Pacific tree frog (Hvla reailtaY western soadefoot (Spea hammondih: Mammals: northwestern San Diego pocket mouse (Chaetodipus fallax follax). San Diego black-tailed iackrabb'rt (Leouscalifomicus bennettti). San Dteao Desert woodrat (Neotoma leoida intermedia}. California around squirrel (Spermophilus beechevt). coyote (Canis latrans). Botta's pocket oooher (Thomomvs bottaeY southern grasshopper mouse (Onvchomvs torridus ramonaY Plants: Del Mar manzanita (Arctostaohyfos alandulosa ssp. crassifoFia). thread-leaved brodiaea (Bnxfiaea filifolia\ summer hollv (Comarostaphvlis diversffolia SSD. diversifoKaY Palmer's QraDPlino hook (Hamaaonella oalmeri}. wart-stemmed ceanothus (Ceanothus verrucosus). Enaelmann Oak (Quercus enaelmannii). ashv spike-moss (Selaainella dnerascens). Orcutfs brodiaea (Brodiaea orcuttift. sticky-leaved liveforever (Dudleva visdda). San Dieoo aoldenstar (Muilla clevelandii). California adder's tongue (Qphioalossum califomicum). California adolohia (Adotohia califomica). San Diego marsh elder (Iva havesiana). southwestern soinv rush (Juncus acutusY These plants and wildlife are associated with riparian woodland, southern willow scrub, mulefat scrub, freshwater marsh, vernal pool, eucalyptus woodland. floodplain scrub and surrounding Piegan coastal sage scrub, southern maritime chaparral, native grassland, southern mixed chaparraj. non-native grassland, open water, southern mixed chaparral/chamise chaparral which provide habitat for such species. Page 1 of 6 0U88/2082 13:52 85846742K DFG REGIONS ^ PAGE 04/08 STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER 5-349-99 THEREFORE, the Department hereby proposes measures to protect fish and wildlife resources during the Operator's work. The Operator hereby agrees to accept the following measures/conditions as part of the proposed work. If the Operator's work changes from that stated in the notification specified above, this Agreement is no longer valid and a new notification shall be submitted to the Department of Fish and Game. Failure to comply with the provisions of this Agreement and with other pertinent code sections, including but not limited to Fish and Game Code Sections 5650, 5652, 5937, and 5948, may result in prosecution. Nothing in this Agreement authorizes the Operator to trespass on any land or property, nor does it relieve the Operator of responsibility for compliance with applicable federal, state, or local laws or ordinances. A consummated Agreement does not constitute Department of Fish and Game endorsement of the proposed operation, or assure the Department's concurrence with permits required from other agencies. This Agreement becomes effective the date of Department's signature and terminates December 31. 2006 for project construction only. This Agreement shall remain in effect for that time necessary to satisfy the terms/conditions of this Agreement. 1. The following provisions constitute the limit of activities agreed to and resolved by this Agreement. The signing of this Agreement does not imply that the Operator is precluded from doing other activities at the site. However, activities not specifically agreed to and resolved by this Agreement shall be subject to separate notification pursuant to Fish and Game Code Sections 1600 et seq. 2. The Operator proposes to alter the streambed of 15 unnamed drainages, tributaries to Encinitas Creek and San Marcos Crook to accommodate the development of two sites, the Greens and Oaks/Ridge, as part of the Villages of LaCosta Master Plan. The Greens portion of the project site includes the construction of 1,038 residential homes, 7.9 acres of planned-industrial, 7.9 acres of community facility, 27.2-acre park, a 7.2-12 acre school site, with circulation roads, bicycle and pedestrian trails and approximately 238.4 acres of open space. The Oaks/Ridge portion of the project site includes the construction of 1,352 residential homes, 9.5 acres of SDG&E utility corridor, 6.6 acres community facility, circulation roads, bicycle and pedestrian trails, and approximately 603.6 acres of open space. The project is located within the southeast quadrant of the City of Carlsbad, County of San Diego impacting 7.61 acres of streambed. 3. The agreed work includes activities associated with No. 2 above. The project area is located within fifteen unnamed drainages, tributaries to Encinitas Creek and San Marcos Creek, San Diego County. Specific work areas and mitigation measures are described on/in the plans and documents submitted by the Operator, including a "Draft Program EtR for the Villages of LaCosta Master Plan, prepared bv T& B Planning Consultants. Inc.. dated January 23. 2001: a "Jurisdictional Delineation for The Greens Property", prepared bv Helix Environmental Planning. Inc.. dated November 4.1999: "Jurisdictional Delineation for the Oaks/Ridge Properties, prepared bv Helix Environmental Planning. Inc.. dated Novembers. 1999: "Final Program EIRforthe Villages of LaCosta Master Plan', prepared bv T & B Planning Consultants. Inc.. dated July 16. 2001 and shall be implemented as proposed unless directed differently by this agreement. Page 2 of 6 81/.88/2002 13:52 85846742^ DFG REGIONS ^ PAGE 05/88 STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER 5^349-99 4. The Operator shall not impact more than 7.61 acres of streambed comprised of 2.47 acres freshwater marsh, 3.00 acres southern willow scrub, 0.27 acres disturbed southern willow, 0.12 acres mule fat scrub, 0.13 acres tamarisk scrub, 0.76 acres open water, and 0.86 acres unvegetated streambed. Impacts are considered permanent, and shall be mitigated at a 3:1 ratio on-site. Mitigation for the project shall include the preservation of 36.88 of wetland habitat on-site as outlined in the Habitat Conservation Plan/Ongoing Multi-Species Plan (HCP/OMSPO) approved June 7,1995 for the project. Preservation includes 6.48 acres freshwater marsh, 25.65 acres southern willow scrub, 0.23 acres mule fat scrub, 0.35 acres open water, 0.07 unvegetated streambed, 4.1 acres south • coast live oak riparian woodland. Mitigation shall also include a 1:1 ratio of in4cind wetland habitat restoration/creation on-site. The restoration of 7.61 acres of wetland habitat shall occur on-site at two locations. One site is in the south central portion of La Costa Oaks within a restored creek channel. The other site is south of the future alignment of Poinsettia Lane. 5. The Operator shall submit a Conceptual Revegetation, Mitigation and Monitoring Plan for the 7.61 acre restoration areas identified on-site within 30 days of signing this Streambed Alteration Agreement. The plan shall include a description of the proposed numbers, container sizes and planting location by species, monitoring activities (locatjons, techniques, scheduling, etc.), maintenance operations with emphasis on watering methods and schedules; the removal of invasive plant species, area treated, • techniques to be used, and schedule and success criteria for controlling invasive plants; and any/all other references to revegetation and restoration activities specified by this agreement. Department approval of that plan is required prior to project initiation/impacts. All mitigation shall be installed no later than December 31.2006. 6. The Operator shall not remove vegetation within the stream from March 15 to September 1 to avoid impacts to nesting birds. However, the Operator may remove vegetation during this time if a qualified biologist conducts a survey for nesting birds within 24 hours of the vegetation removal, and ensures no nesting birds shall be impacted by the project. If nesting birds are present, the Operator shall immediately notify the Department and no work shall occur until the young have fledged and wfll no longer be impacted by the project 7. The Operator shall have a qualified biologist onsite daily during any impacts to vegetation for the purpose of monitoring and enforcing conditions 6,9,14,15 and 17 of this agreement. 8. No equipment shall be operated in ponded or flowing areas. 9. Disturbance or removal of vegetation shall not exceed the limits approved by the Department. The disturbed portions of any stream channel shall be restored. Restoration shall include the revegetation of stripped or exposed areas with vegetation native to the area. 10. Installation of bridges, culverts, or other structures shall be such that water flow is not impaired. Bottoms of temporary culverts shall be placed at stream channel grade; bottoms of permanent culverts shall be placed at or below stream channel grade. 11. Preparation shall be made so that runoff from steep, erodible surfaces will be Page 3 of 6 01/08/2002 13:52 85846742^ DFG REGIONS ^ PAGE 06/08 STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER 5-349-99 diverted into stable areas with little erosion potential. Frequent water checks shall be placed on dirt roads, cat tracks, or other work trails to control erosion. 12. Water containing mud, silt or other pollutants from aggregate washing or other activities shall not be allowed to enter a lake or flowing stream or placed in locations that may be subjected to high storm flows. 13. Structures and associated materials not designed to withstand high seasonal flows shad be removed to areas above the high water mark before such flows occur. 14. The perimeter of the work site shall be adequately flagged to prevent damage to adjacent riparian habitat. 15. Staging/storage areas for equipment and materials shall be located outside of the stream. 16. The Operator shall comply with all litter and pollution laws. All contractors, subcontractors and employees shall also obey these laws and it shall be the responsibility of the operator to ensure compliance. 17. If a stream's low flow channel, bed or banks have been altered, these shall be returned as nearly as possible to their original configuration and width, without creating future erosion problems, excepting the 7.61 acres of permanent streambed impacts associated with condition No. 2 above 18. All planting shall have a minimum of 100% survival the first year and 80% survival thereafter and/or shall attain 75% cover after 3 years and 90% cover after 5 years for the life of the project. If the survival and cover requirements have not been met, the Operator is responsible for replacement planting to achieve these requirements. Replacement plants shall be monitored with the same survival and growth requirements for 5 years after planting. 19. An annual report shall be submitted to the Department by Jan. 1 of each year for 5 years after planting. This report shall include the survival, 80% cover, and height of both tree and shrub species. The number by species of plants replaced, an overview of the revegetation effort, and the method used to assess these parameters shall also be included. Photos from designated photo stations shall be included. 20. A bond (same bond used for Army Corps of Engineers) for the amount of complete restoration and land costs shall be submitted to the Department prior to initiation of construction activities. This amount shall be based on a cost estimate which shall be submitted to the Department for approval within 30 days of signing this agreement. The bond shall be approved by the Department's legal advisors prior to its execution, and shall allow the Department at its sole discretion to recover funds immediately if the Department determines there has been a default. 22. A biological conservation easement shall be recorded on the preserved portions of the project to protect existing fish and wildlife resources in perpetuity. The easement shall be in favor of the Center for Lands Management, the Department or its designated agent and shall be recorded within one year of signing this agreement, or as extended by the Department The conservation easement also receive an endowment. The form and Page 4 of 6 01/08/2002 13:52 85S4&745 DFQ REGIONS ^ PAGE 07/081225 STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER 5-349-99 content of the easement and endowment shall be approved by the Department's legal advisors prior to its execution. 23. Access to the work site shall be via existing roads and access ramps. 24. Spoil sites shall not be located within a stream, where spoil shall be washed back into a stream/lake, or where it will cover aquatic or riparian vegetation. 25. Raw cement/concrete or washings thereof, asphalt, paint or other coating material, oil or other petroleum products, or any other substances which could be hazardous to aquatic life, resulting from project related activities, shall be prevented from contaminating the soil and/or entering the waters of the state. These materials, placed within or where they may enter a stream/lake, by Operator or any party working under contract, or with the permission of the Operator, shall be removed immediately. 26. No debris, soil, silt, sand, bark, slash, sawdust, rubbish, cement or concrete or washings thereof, oil or petroleum products or other organic or earthen material from any construction, or associated activity of whatever nature shall be allowed to enter into or placed where it may be washed by rainfall or runoff into, waters of the State. When operations are completed, any excess materials or debris shall be removed from the work area. No rubbish shall be deposited within 150 feet of the high water mark of any stream or lake, 27. No equipment maintenance shall be done within or near any stream channel where petroleum products or other pollutants from the equipment may enter these areas under any flow. 28. The Operator shall provide a copy of this Agreement to all contractors, subcontractors, and the Operator's project supervisors. Copies of the Agreement shall be readily available at work sites at all times during periods of active work and must be presented to any Department personnel, or personnel from another agency upon demand. 29. The Department reserves the right to enter the project site at any time to ensure compliance with terms/conditions of this Agreement. 30. The Operator shall notify the Department, in writing, at least five (5) days prior to Initiation of construction (project) activities and at least five (5) days prior to completion of construction (project) activities. Notification shall be sent to the Department at 4949 Viewridge Avenue, San Diego, CA 92123 Attn: Tamara A. Spear 31. It is understood the Department has entered into this Streambed Alteration Agreement for purposes of establishing protective features for fish and wildlife. The decision to proceed with the project is the sole responsibility of the Operator, and is not required by this agreement It is further agreed all liability and/or incurred cost related to or arising out of the Operator's project and the fish and wildlife protective conditions of this agreement, remain the sole responsibility of the Operator. The Operator agrees to hold harmless the State of California and the Department of Fish and Game against any related claim made by any party or parties for personal injury or any other damages. 32. The Department reserves the right to suspend or cancel this Agreement for other Page 5 of 6 DFG REGIONS PAGE 08/0801/08/2002 13:52 8584674» STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER 5-349-99 reasons, including but not limited to the following: a. The Department determines that the information provided by the Operator in support of the Notification/Agreement is incomplete or inaccurate; b. The Department obtains new information that was not known to it in preparing the terms and conditions of the Agreement; c. The project or project activities as described in the Notification/Agreement have changed; d. The conditions affecting fish and wildlife resources change or the Department determines that project activities will result in a substantial adverse effect on the environment. 33. Before any suspension or cancellation of the Agreement, the Department will notify the Operator in writing of the circumstances which the Department believes warrant suspension or cancellation. The Operator will have seven (7) working days from the date of receipt of this notification to respond in writing to the circumstances described in the Department's notification. During the seven (7) day response period, the Operator shall immediately cease any project activities which the Department specified in its notification. The Operator shall not continue the specified activities until that time when the Department notifies the Operator in writing that adequate methods and/or measures have been identified and agreed upon to mitigate or eliminate the significant adverse effect. 34. The Operator may request an extension of this agreement prior to its termination. Extensions may be granted for up to 1 2 months from the date of termination of the agreement and are subject to Departmental approval. The extension request and fees shall be submitted to the Department's Region 5 office at the above address. If the Operator fails to request the extension prior to the agreement's termination, then the Operator shall submit a new notification with fees and required information to the Department. Any activities conducted under an expired agreement are a violation of Fish and Game Code Section 1600 et seq. CONCURRENCE Real Estate collateral California Dept of Fish and GameManagement Company, A Delaware Corporation By: Morrow Development, Inc., Its £ By: Free cant 'ArBtTckle, President (signajdre) (date C.F. Ravsbrook. Regional Manager (title) Prepared by: Tamara Spear, ES III Page 6 of 6 DEVELOPMENT 1903 Wright Place, Suite 180 Carlsbad, CA 92008 phone: 760 929-2701 fax: 760 929-2705 /~/O'Ca January 3, 2002 Mr. Don Neu Principal Planner City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 Dear Don: After a thorough review of the 1996 Parks Agreement, I find that we are in compliance with all provisions. We have set aside, by virtue of our irrevocable offer of dedication, in excess of the requisite 32.9 acres of park land, which far exceeds the demand of our future Villages of La Costa Master Plan. i Section 3.3 of the Agreement states that we have 6.831 acres of Existing Parkland Credits after building Arroyo La Costa (La Costa Valley). There was a mathematical mistake in Agreement, the actual number or Credits is 6.381. We are currently finaling the map for PA 3.8 and 3.9, containing 161 Lots. We have not sold these lots to another entity, so we are not transferring Parkland Credits. However, 161 lots will generate 373.198 persons and a parks need of 1.119 acres. We will then use 1.119 acres of Existing Parkland Credits for these two areas. This will leave 5.261 acres of Existing Parkland Credits after they are used for the final map. In Section 4 of the 1996 Agreement, it states that the City shall make a determination as to how much of the Alga Norte Park it will take. I understand that the City desires all of the park. Therefore, the City will accept all 34.4 acres designated in the Master Plan as PA 1.4 and 1.5. Consistent with this assumption, the school site will be moved to PA 1.7 which will reduce the yield of that Planning Area by 47 lots. I have attached a sheet of calculations regarding our park needs at build-out and reflecting the above assumptions. Fred M. Arbuckle President Villages of La Costa Park Credit Calculation As of: January 4, 2002 Lot Village Planning Area Size Greens 1.3 3,500 Greens 1.16 3,500 Greens 1.17 4,500 Greens 1.7* 5,000 Greens 1.11,1.13,1.14 5,000 Greens 1.6 6,000 Greens 1.9 6,000 Greens 1 .8 7,500 Greens 1.10, 1.12 9,000 Greens 1.15- Affordable Apt. Greens 1.1 - Industrial 7.90 Greens 1 .5 - Park 34.40 Greens 1.4 -School* NA Greens 1.2- Daycare/POW 7.90 Greens Oaks-N 3.7 3,500 Oaks-N 3.1 5,000 Oaks - N 3.4, 3.5 5,000 Oaks-N 3.3 6,000 Oaks-S 3.9 6,000 Oaks-S 3.10,3.11 6,000 Oaks-S 3.8 7,500 Oaks-S 3.12,3.13,3.15 7,500 Oaks-S 3.14 10,000 Oaks-N 3.6 - Affordable Apt. Oaks - N 3.2 - Community Facilities 6.4 Oaks Ridge 2.6 3,500 Ridge 2.5 6,000 Ridge 2.1,2.2 7,500 Ridge 2.3, 2.4 10,000 Ridge All Villages Population Generation Rate per Residence X Projected Population Acres required per 1 ,000 residents Park Acres required Credit remaining from La Costa Valley Remaining obligation for VLC Park Acreage Dedication to fulfill VLC requirement Acres that City will Purchase Purchase Price per Acre #Lots 44 96 107 80 125 96 74 87 102 180 991 45 76 91 138 88 89 74 194 66 171 1,032 58 66 93 103 320 2,343 2.318 5,431 3.0 16.293 (6.381) 9.912 34.400 (9.91) 24.49 175,000 Total City Purchase Price $4,285,361 * Assumes that School Site is moved to PA 1.7 and 47 lots are lost DEVELOPMENT January 3,2002 Mr. Don Neu Principal Planner City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 Dear Don: I have forwarded to you, under separate cover, copies of correspondence from USFWS, CDFG and your City Manager regarding the acceptability of the offsite mitigation parcels. We refer to these parcels by their seller's names, Almeir and Chomas. The Almeir parcel is located just east of our La Costa Oaks property. It is Assessor Parcel Numbers APN 223-070-04, APN 223-070-13, and APN 223-072-02. The Chomas parcel is located much further east, between Elfin Forest and the Bridges project. It is Assessor Parcel Numbers APN 264-041-19-00 and 264-11 l-fitt-GO. I have attached a photographic representation of the "approximate" location and configuration of these parcels. They are the same parcels that have been approved by the various agencies and acquired by RECM for future mitigation. It is our understanding that the $150,000 that was to be paid by RECM, to the City of Carlsbad for the HMP, was permitted to be used for the acquisition of these properties. v 3 Wright Place, Suite 180 Carlsbad, CA 92008 phone: 760 929-2701 -fax: 760 929-2705 Sincere! uckle President 1903 Wright Place, Suite 180 Carlsbad, CA 92008 phone: 760 929-2701 fax: 760 929-2705 D EVE L 0 P M E N 1 VIA HAND DELIVERY January 17,2002 Mr. John Martin Turf Biologist U.S. Fish & Wildlife Service 2730 Loker Avenue West Carlsbad, CA 92008-6603 Re: Villages of La Costa HCP/OMSP Dear John: Enclosed please find a copy of a letter to Center for Natural Lands Management, signed by them, acknowledging receipt of the initial capital contribution and endowment for the La Costa Oaks and Ridge portion of the La Costa Preserve on January 16,2002.1 am forwarding this letter to you for your files. If you have any questions or need any additional information, please don't hesitate to call me at 760/929-2701 ext. 103 ore-mail atiiackson(o),morrowdevelopment.com. Sincerely, Jame& M. Ja'cks Senior Vi6e President JMJ:jmj bcc: Sherry Teresa — Center for Natural Lands Management David Lawhead - California Department of Fish and Game Don Neu - City of Carlsbad Don Rideout - City of Carlsbad Enclosures 1 M VIA HAND DELIVERY January 16,2002 1903 Wright Place, Suite 180 Carlsbad, CA 92008 phone: 760 929-2701 fax: 760 929-2705 Ms. Sherry Teresa Director Center for Natural Lands Management 425 East Alvarado Street, Suite H Fallbrook, CA 92028 Re: La Costa Preserve Dear Sherry: Enclosed please a check in the amount of $891,962.00 payable to the Center for Natural Lands Management representing the contribution by Real Estate Collateral Management Company of the Initial and Capital Contribution and Endowment for Phase 1 (La Costa Oaks and Ridge) of the La Costa Preserve as defined in the PAR prepared by you dated July 3,2001. Please have someone in your office execute the acknowledgement of receipt for our use to verify this contribution has been made pursuant to the requirements of the HCP/OMSP. As always, it has been a pleasure doing business with you and I look forward to working with you and your staff in the future. If you have any questions, please don't hesitate to call me at 760/929-2701 ext. 103 ore-mailatjjackson@jnonx3wdevelopment.com. Sincerely, [James M. Jackson \Seni6r Vice President JMJ:jmj cc: none Enclosures: 1 £—*=. DEVELOPMENT VIA FAX AND FIRST CLASS January 14, 2002 ffl 1903 Wright Place, Suite 180 Carlsbad, CA 92008 phone: 760 929-2701 fax: 760 929-2705 Mr. Don Neu Senior Planner City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 Re: MM&RP, Conditions #4.4-A Dear Don: Enclosed please find a letter from the National Fish and Wildlife Foundation confirming, our payment of $50,000 to them to be used for gnatcatcher research. This letter should satisfy Conditions 4.4-A of the MM&RP. If you require any further information, please contact me as soon as possible. If you have additional requirements or if you have any questions or need any further information, please don't hesitate to call me at 760/929-2701 ext. 103 or e-mail at iiackson@morrowdevelopment.com. SiAcerely, "Jackson ior Vice President J:jmj cc Jack Henthorn - Henthorn Associates (w/ enclosures) Sherry Teresa - Center for Natural Lands Management (w/ enclosures) Enclosures 1 Thomas E. Smith. Land Consultant National Fish and Wildlife Foundation 11915 El Dorado Place NE, • j n Albuquerque, New Mexico 87111 Telephone (505) 292-2143 Fax (505)275-9310 RECEIVED Sent By Priority Mail MORn-' DEVELOPMENT Fred M. Arbuckle Morrow Development 1903 Wright Place, Suite 180 Carlsbad, California 92008 RE: Contribution To California Gnatcatcher Fund. Dear Mr. Arbuckle: This is to acknowledge receipt of your check No. 2497, dated January 10,2002 in the amount of $50,000.00 payable to the National Fish and Wildlife Foundation (Foundation). Our Foundation has placed your $50,000.00 contribution in the California Gnatcatcher Conservation Fund Project Account #97-166, to be designated by the Foundation as the segregated Morrow Development Subaccount. This Fund was established by our Foundation in 1997 pursuant to an Agreement with the U.S. Fish and Wildlife Service (Service) for the specific purpose of creating a Fund for the management and conservation of California Gnatcatcher, a federally listed endangered species in California. The Foundation manages this special segregated Fund for use at the direction of the Service for these purposes. We understand from John Martin, Field Biologist at the Carlsbad office, per terms of your agreement with the Service, this money is to be used for Gnatcatcher Research. Your donation and contribution to the California Gnatcatcher Fund project is greatly appreciated. Sincerely .^^L^^ Thomas E. Smitn Land Consultant (NFWF) CC: John Martin, (Service) Carlsbad Office Whitney Tilt, (NFWF) Director of Conservation Programs Constance Singleton, (NFWF) Director of Finance & Administration "01/14/2002 MON 17:00 FAX 7609292705 MORROW DEVELOPMENT ->•+-> CITY - PLANNING DEPT il 001/003 FAXTRANSMITTAL DEVELOPMENT TO: City of Carlsbad PHONE: 760-602-4600 ATTN: DonNeu FAX: 760-602-8559 FROM: Jim Jackson DATE: January 14,2002 RE: MM&RP, Conditions #4.4-A NO OF PAGES: 3 (including cover) 0 URGENT 0 FOR REVIEW AND COMMENTS O PHOTOCOPY 0 PLEASE REPLY X FOR YOUR INFORMATION 0 AS REQUESTED NOTES: ^ -, cc: Jack Henthorn - Jack Henthorn & Associates Sherry Teresa - Center for Natural Lands Management 1903 Wright Place, Suite 180, Carlsbad, CA 92008 Phone: 760 929-2701 Fax: 760 929-2705 -01/14/2002 MON 17:00 FAX 7609292705 MORROW DEVELOPMENT -»-»-> CITY - PLANNING DEPT 0002/003 DEVELOPMENT . VIA FAX AND FIRST CLASS 1903 Carlsbad, CA 9260? January 14,2002 phone: 760 929-2/01 fax: 760.929-2705 Mr. Don Neu Senior Planner City of Carlsbad 1635-Faraday Avenue Carlsbad, CA 92008-7314 . . Re: MM&RP, Conditions #4.4-A Dear Don: Enclosed please find a letter from the National Fish and Wildlife Foundation confirming, our payment of $50,000 to them to be used for gnatcatcher research, This letter $hould satisfy Conditions 4.4-A of the MM&RP. If you require any further information, please contact me as soon as possible. If you have additional requirements or if you have any questions or need any further information, please don't hesitate to call me at 760/929-2701 ext. 103 or e-mail at i iackson(S),morro wdevelooment. com. SiAcerely, ackson ior Vice President cc Jack Henthom - Henthorn Associates (w/ enclosures) Sherry Teresa - Center for Natural Lands Management (w/ enclosures) Enclosures 1 "01/14/2002 MON 17:00 FAX 7609292705 MORROW DEVELOPMENT •+->•» CITY - PLANNING DEPT 0003/003 Thomas E. Smith. Land Consultant National Fish and Wildlife Foundation 11915 El Dorado Place NE, January 11,2002 Albuquerque, New Mexico 87111 Telephone (505) 292-2143 F»x (505)275-9310 RECEIVED t|\MSent By Priority Mail Jm rw«* DEVELOPMENT Fred M. Arbuckle Morrow Development 1903 Wright Place, Suite 180 Carlsbad, California 92008 RE: Contribution To California Gnatcatcher Fund. Dear Mr. Arbuckle: This is to acknowledge receipt of your check No. 2497, dated January 10,2002 in the amount of $50,000.00 payable to the National Fish and Wildlife Foundation (Foundation), Our Foundation has placed your $50,000.00 contribution in the California Gnatcatcher Conservation Fund Project Account #97-166, to be designated by the Foundation as the segregated Morrow Development Subaccount. This Fund was established by our Foundation in 1997 pursuant to an Agreement with the U.S. Fish and Wildlife Service (Service) for the specific purpose of creating a Fund for the management and conservation of California Gnatcatcher, a federally listed endangered species in California. The Foundation manages this special segregated Fund for use at the direction of the Service for these purposes. We understand from John Martin, Field Biologist at the Carlsbad office, per terms of your agreement with the Service, this money is to be used for Gnatcatcher Research. Your donation and contribution to the California Gnalcatchcr Fund project is greatly appreciated. Sincerely Thomas E. Smif Land Consultant (NFWF) CC: John Martin, (Service) Carlsbad Office Whitney Tilt, (NFWF) Director of Conservation Programs Constance Singleton, (NFWF) Director of Finance & Administration 01/10/2002 THU 15:29 FAX 7609292705 MORROW DEVELOPMENT ilOOl/004 FAX TRANSMITTAL D TO: FROM: RE: E V £ L 0 P M E N T Ron Rouse, Luce Forward FAX: Don Neu, City of Carlsbad John Martin, USFWS Don Rideout, City of Carlsbad David Lawhead, CA Dept Fish StGame Fred Arbuckle DATE: National Fish & Wildlife NO OF PAGES: Foundation Check and FedEx receipt 858-523-4307 760-602-8559 760-431-9624 760-602-8559 858-467-4235 January 10, 2002 4 (including cover) 0 URGENT 0 PLEASE REPLY 0 FOR REVIEW AND COMMENTS XX FOR YOUR INFORMATION 0 PHOTOCOPY 0 AS REQUESTED NOTES: Enclosed is a copy of Check no. 2497 for $50,000 to the National Rsh & Game Foundation and the accompanying cover letter, as well as the FedEx receipt. 1903 Wright Place. Suite 180. Carlsbad. CA 92008 Phone: 760 929-2701 Fax: 760 929-2705 -.01/10/2002 THU 15:29 FAI 7609292705 MORROW DEVELOPMENT H002/004 DEVELOPMENT 1903 Wright Place, Suite 180 Carlsbad, CA 92008 phone: 760 929-2701 Delivered via Federal Express ' fax'. 760 929-27O5 January 10,2002 National Fish and Wildlife Foundation Attnc Tom Smith 11915 El Dorado Place Northeast Albuquerque, New Mexico 8711-1 Dear Mr. Smith, • In conjunction with the Fieldstone/La Costa Habitat Conservation Plan/OMSP, dated June 1995,1 am forwarding herewith a check in the amount of Fifty Thousand Dollars,($50,000). Per the terms of this agreement the above amount is to be used for Gnatcatcher Research. I was directed by Mr. John Martin of the U.S. Fish and Wildlife Service, Carlsbad Field Office, to forward these funds to you for deposit in the . "California Gnatcatcher Fund"; NFWF Project #97-166. It is my understanding that you . ' will notify Mr. Martin (760) 431-9440, immediately upon receipt. Thank you for your assistance in this matter. If you have any questions please contact me immediately. Sine FredM. Arbuckle Morrow Development Attachment: Check Number 2497, for 550,000 CC: Mr. Ron Rouse, Luce-Forward Mr. Don Neu, City of Carlsbad Mr. Mm Martin, USFWS Mr. Don Rideout, City of Carlsbad Mr. David Lawhead, Calif. Dept. Fish and Game wQ ol- O50 so[ 2B Express USAAvrMU 2G7G 75fl3 1 FNMIt &ittipmtr<4prwtl& V V rw f\. *•*. Sendpr'slisc&Date \-\Vl-V>L ApcflumNumlur 5391-7352-7 MQRRQH DEVELOPMENT, INC 7601 929-27Q1 D SSUJa^ft Express FreigMSanri ce ftd&tgrsssS»VBr C gBHMfafoiT(toj« 1 lH-|»rtrai ' j_i^-.—^_..^_ 1?Q3 WRIGHT PL STE tBO CARLSBAD 2 Vow httciul Biffing Rebrcroenr2ianwiys<a>H»MM Try online shipping at fedex.com 6, IB ng i'i,Aili»(<i«iin me So aria mtfm at Ha tacLd i hAitila m 'n DJ r cun it Sa-m Qbbn relil h| srru thtlMI nrhrtlY (kmstionsl Vfeh our Webaite atfoJex.com B flelHseSignatL 0200178802 J iBftiimtuhti tnvi«lul^i ,1 Oo DEVELOPMENT VIA HAND DELIVERY !903 Wright Place, Suite 180 Carlsbad, CA 92008 January 11,2002 phone: 760 929-2701 fax: 760 929-2705 Mr. Don Neu Senior Planner City of Carlsbad • 1635 Faraday Avenue Carlsbad, CA 92008-7314 Re: MM&RP, Conditions #4.4-25 and 4.4-26 Dear Don: Enclosed please find the Biological Noise Mitigation Monitoring Plan prepared by Investigative Science and Engineering, Inc. dated January 10, 2002. This information combined with the other information forwarded to you previously should satisfy all the conditions of the above referenced conditions. If you require any further information, please contact me as soon as possible. If you have additional requirements or if you have any questions or need any further information, please don't hesitate to call me at 760/929-2701 ext. 103 or e-mail at ijackson@morrowdevelopment.com. Sincerely, Jam er s M. Jackson )r Vice President JMJ:jmj cc Jack Henthorn - Henthorn Associates (w/o enclosures) Barry Jones - Helix Environmental Planning (w/enclosures) Enclosures 1 3545 Cam/no Del Rio South, Suite E San Diego, CA 92108-4003 Phone/Fax: 619-640-9379 / 619-640-0763 www.iseinc.ws January 10, 2002 Mr. Don Neu City of Carlsbad Planning Department 1635 Faraday Road Carlsbad, CA 92008-7314 RE: VILLAGES OF LA COSTA MASTER PLAN - CARLSBAD CA BIOLOGICAL NOISE MITIGATION MONITORING PLAN Dear Don: At the request of Morrow Development, Investigative Science and Engineering (ISE) has been retained as the technical consultant to address biological noise mitigation issues associated with the proposed construction of the Villages of La Costa Development area. Per our discussion, the requisite mitigation monitoring protocol is provided within this letter. BACKGROUND Pursuant to the adopted Mitigation Monitoring and Reporting Program for the Villages of La Costa Master Plan (MP 98-01), Mitigation Measures 4.4-25 and 4.4-26 define the applicable standards pertaining to noise exceedances during the breeding season for the California Gnatcatcher (Polioptila California). Construction noise generated by this project is regulated by the United States Fish and Wildlife Service (USFWS) and the California Department of Fish and Game for its effect on the federally endangered California gnatcatcher. Resource agencies have theorized that elevated noise levels can potentially mask songs of these birds, which are used to attract mates and defend territories. The San Diego Association of Governments (SANDAG) in a 1990 study entitled "Comprehensive Species Management Plan for the least Bell's vireo" theoretically estimated that {traffic} noise levels above 60 dBA Leq in vireo breeding areas may sufficiently mask the vireo's song and potentially reduce the reproductive success of this species during their breeding season that occurs from March 1 to September 1. The SANDAG report conclusions were unclear as to the specific time interval of the measurement, but it is typically taken as one hour (i.e., Leq-h). Leq is the energy-mean A-wejghted sound level during a measured time interval. It is the 'equivalent' constant sound level that would have to be produced by a given source to equal the fluctuating level measured. For most biological monitoring projects, the monitoring interval is taken as one-hour (denoted as Leq-h). Scientific and Forensic Engineering Consultants Don Neii Villages of La Costa Biological Noise Mitigation Monitoring Plan January 10, 2002 Page 2 of 3 Although research is on going regarding similar noise impacts to the California gnatcatcher, in the absence of species-specific data, these same study results are applied by the Service to this bird species as well. APPLICABLE SIGNIFICANCE CRITERIA As indicated previously, specific to the Villages of La Costa Master Plan, the following grading requirements were adopted: 4.4-25: If clearing or grading occurs during the gnatcatcher breeding season (February 15 to July 31), and noise levels exceed 60 dBA Leq-h at the edge of the HCP/OMSP, measures consisting of temporary six-foot high noise berms or other appropriate noise reduction methods will be required to minimize noise impacts. 4.4-26: Active gnatcatcher nesting site noise levels will be monitored to ensure that noise levels are maintained at or below 60 dBA Leq-h. These requirements indicate the need for mitigation monitoring under the following two conditions, notably, a) periodic monitoring within sensitive habitat areas identified by the project biologist between February 15 to July 31 of each year for which construction is planned, and b) implementation of temporary noise mitigation barriers (or similar applicable methods) to limit exposure in sensitive areas to 60 dBA Leq-h. RECOMMENDED MITIGATION MONITORING PLAN Given the above requirements, ISE recommends a mitigation-monitoring plan consisting of the following: 1. During the time period between February 15 to July 31 of each year for which construction is planned, periodic random daytime monitoring occurring twice weekly at nesting areas previously identified by the project biologist, and, residing within approximately 500-feet of construction areas, will be performed. This condition has been found to be adequate by ISE in the past since 500 feet is the minimum distance required to attenuate a stationary or semi-stationary aggregate construction noise source of 80 dBA Leq-h to a level of 60 dBA Leq-h. Construction activities outside this 500-foot zone during the aforementioned breeding season have been demonstrated in the past to have de minimis impacts for most common construction activities. Questionable construction operations (such as operation of large pneumatic devices) could be verified for compliance at the City's request. 2. ISE would prepare a weekly monitoring letter, addressed to the City, Client, and applicable regulatory agencies (if desired) summarizing the findings and any applicable mitigation recommendations. Don Neu Villages of La Costa Biological Noise Mitigation Monitoring Plan January 10, 2002 Page 3 of 3 Historically, this condition has been well received by USFWS and CDFG as it maintains a chronology of events and demonstrates the applicants proactive treatment of biological noise issues. Finally, 3. Where the projected noise level at a sensitive biological receptor area is anticipated to exceed 60 dBA Leq-h, ISE will consult with the project biologist to implement corrective measures to reduce noise levels to acceptable levels. This method of projecting the future hourly noise level based upon real time data sampling (also known as measuring the acoustic dose) worked extremely well for the Cannon and Faraday Road improvement projected in that it allowed the City to anticipate the impact before it occurred. This was a great aid in false work removal and sandblasting phase of the Macario Canyon bridge construction since it allowed ISE to refine the mitigation based upon a proposed action without generating an impact within the habitat. It is anticipated that utilization of the above plan would result in complete mitigation of sensitive habitat areas with negligible effect on the proposed construction operations. Should you have any questions regarding the above conclusions, please do not hesitate to contact me at (619) 640-9379. Sincerely, Rick Tavares, Ph.D. Project Principal Investigative Science and Engineering, Inc. Cc: Fred Arbuckle, Morrow Development Reed Thornberry, ISE DEVELOPMENT VIA HAND DELIVERY - 1 903 Wnght Place, Suite 1 80 Carlsbad, CA 92008 January 11,2002 phone: 760 929-2701 Mr. Don Neu Senior Planner fax: 760 929-2705 City of Carlsbad 1635 Faraday Avenue Carlsbad, C A 92008-73 14 Re: MM&RP, Condition #4.4-22C . /[ &&Jd2Q =*31 ^ Dear Don: Enclosed please find a fully executed copy of a contract between Real Estate Collateral Management Company and Helix Environmental for construction monitoring. Helix is our "qualified biologist" that will monitor the project during construction. With delivery of this document, we believe. that we have met the requirements of Planning . Condition Resolution 5020, Condition^S^MM&RP, Condition #4.4-22C. If you have further requirements, please contact me as soon as possible. If you have additional requirements or if you have any questions or need any further information, please don't hesitate to call me at 760/929-2701 ext. 103 ore-mail at jjackson@morrowdevelopment.com. Sincerely, VL Jackson SeJttion Vice President JMJ:jmj cc Jack Henthorn - Henthorn Associates (w/o enclosures) Enclosures 1 REAL ESTATE COLLATERAL MANAGEMENT CONSULTING SERVICES AGREEMENT RECM/Morrow Consultant: Helix Environmental Planning, Inc. Contract No: 383 This Consulting Services Agreement (the "Agreement") is made and entered into this 8th day of January, 2002, by and between REAL ESTATE COLLATERAL MANAGEMENT COMPANY, a Delaware corporation (hereinafter called "Company") and Helix Environmental Planning, Inc., (hereinafter called "Consultant"), in consideration of the mutual covenants and conditions herein contained. COMPANY'S AGENT. For all purposes of administration, supervision and implementation of this Agreement, Company's agent, Morrow Development, Inc., a California corporation (hereinafter called "Morrow") shall act for Company for all purposes regarding this Agreement. Consultant hereby acknowledges and understands that Morrow is acting herein as the agent of Company, and Consultant shall accept and recognize the actions of Morrow as though it were the contracting party directly. Morrow is the Development Manager for Company in connection with the real estate master planned community(s) known as Villages of La Costa (the "Project"). The parties hereto agree as follows: 1. Scope of Work. Consultant shall perform the consulting and associated professional services as more particularly described on the Scope of Work Exhibit "A" hereto ("Work") for the Company in accordance with this Agreement and the provisions contained in any exhibit supplemental hereto which shall be considered a part of this Agreement. Consultant hereby represents and warrants it has the requisite licenses or other governmental authorization to perform the Work at all times herein and its license number is set forth on the signature page. 2. Authorization to Proceed. Consultant shall not commence the consulting services prior to full execution of the Letter of Authorization attached hereto as Exhibit "C" ("Authorization") which will outline the amount of compensation to be paid, authorize any reimbursable charges to be incurred, designate Morrow's direct representative for this Agreement, specify the schedule for start and completion of the services, and provide instructions for identification and segregation of the charges. 3. Term of Agreement. This Agreement shall continue in effect until terminated by either party giving the other not less than 10 days prior written notice. However, if Company so terminates this Agreement and Consultant is not then in default hereunder, Company agrees to pay Consultant for all services performed through the effective date of the notice of termination, provided such work is in conformity with this Agreement and any Authorization subject to the terms of this Agreement. Page 1 of 16 4. Termination Cause. Notwithstanding the foregoing, Company or Morrow shall have the right at any time, in its sole discretion, to terminate this Agreement if the Consultant fails to timely perform its obligations by giving Consultant written Notice of Termination, in which event Consultant shall immediately cease all services hereunder. Such Notice of Termination shall be deemed termination for cause. If Morrow or Company terminates this Agreement for cause, Company shall have any and all remedies and rights provided at law or in equity including, without limitation, the right to offset against any and all sums that may be due to Consultant any and all damages, costs and expenses incurred or suffered by Company or Morrow by reason of Consultant's breach or default. 5. Request for Payment. Subject to the provisions of Section 4 above and all other terms and provisions of this Agreement, Consultant shall be paid for all Work and any additional completed services authorized in writing and all reimbursable expenses incurred, to the extent the same were authorized by Company or Morrow pursuant to this Agreement, through the date of Notice of Termination. Consultant shall submit a written Request for Payment statement, certification and lien waivers and releases to Company in the form provided in Exhibits "B" and "B-1" of this Agreement or on a substitute form as reasonably requested by Company or Morrow. 6. Expense Approval. Before incurring any proposed reimbursable expense not specifically authorized in this Agreement, Consultant shall obtain Morrow's or Company's prior written approval of such expense. Company shall reimburse Consultant on a monthly basis for such pre-approved incurred expenses providing same are supported by invoice vouchers delivered to Morrow by Consultant and such detail information and documents as Company or Morrow may reasonably require. 7. Documents. Consultant shall submit status reports periodically as may be requested by the Company or Morrow. Expenses and reimbursable charges shall also be reported to the same individual. All design, drawings, specifications, technical data, and other reports, documents or materials provided to or produced by Consultant in the performance of its Work under this Agreement (hereinafter "Documents") shall be the sole property of Company and Company is vested with all rights therein of whatever kind and however created, including without limitation, all common law and statutory copyright. Consultant hereby assigns to Company, without additional compensation, all right, title and interest in all creations, inventions, ideas, designs, copyrightable materials, trademarks and other technology and rights, (and any related improvements or modifications), whether or not subject to patent or copyright protection, relating to any activities of Consultant in performing Work or rendering services under this Agreement. Consultant shall execute any and all instruments, including further assignments of interest, as may be required to transfer to Company any and all of Consultant's rights in and to the Documents and all rights incidental thereto. Consultant agrees that Company and Morrow shall have access at all reasonable times to inspect and make copies of all Documents. Consultant shall upon request of Company or Morrow, at their cost and expense, provide Company or Morrow with reproducible copies of all Documents. Without Company's prior written consent, Consultant shall not use any of the Documents it has prepared in connection with this Agreement on any other project Page 2 of 16 or in connection with services to be rendered to anyone other than Company. Upon termination or expiration of this Agreement, Consultant shall immediately deliver to Company or Morrow any original Documents prepared by Consultant in connection with this Agreement not previously delivered to Company or Morrow. As more particularly set forth in Section 12, Consultant shall indemnify, defend and hold harmless, Company and Morrow, and their Affiliates, from and against any claim, damage, cost, loss, or liability (including court costs and attorneys' fees) arising as a result of any alleged copyright infringement action or any other objection to Company's Document ownership or use arising out of or related to use of Documents prepared by Consultant under this Agreement. 8. Company's Use of Documents. Company shall have the right to reuse the Documents, in whole or in part, for any other Company project provided that in connection with such other project, Company shall indemnify Consultant with respect to all claims for property damage or personal injury arising out of such reuse. The foregoing indemnity shall not, however, apply if Consultant's services are terminated due to a breach of its obligations under this Agreement. Consultant may not use, in whole or in part, any of the Documents nor shall Consultant disclose same or make same available, in whole or in part, to any third party whomsoever other than as authorized by Company in writing. Company shall retain ownership of all formal published reports, studies, computer programs and files, maps, designs, plans, specifications and other work product prepared by Consultant to be used by Company in any manner it may find appropriate. Consultant acknowledges that violations regarding the use of the Documents could result in substantial damages to Company under this Agreement. 9. Consultant Supervision. Consultant shall supervise and direct all of Consultant's agents, employees and subcontractors performing Work or services, be responsible for all methods, sequences and procedures used and be responsible for coordinating all portions of Consultant's Work. Consultant shall perform the Work using the highest level of care and skill exercised by or expected by members of the profession currently practicing under similar conditions for master planned or other communities similar to the Project in Southern California. Consultant shall promptly supply to Company or Morrow in writing such other information which is or becomes known, in the course of performing the services, by Consultant or persons performing services, concerning facts which may materially affect the planning, marketing, design or construction of Company's property or Project. At all times in performing its duties hereunder, Consultant shall coordinate and consult with Company through Morrow to the end that major decisions as to the Project shall be made by the Company through Morrow. 10. Joint Venture. It is not the purpose or intention of this Agreement to create nor shall it be construed as creating a joint venture, real estate partnership, commercial partnership or other business relationship, other than Consultant being an independent contractor. Consultant shall act as an independent contractor with respect to performance of Work hereunder and neither it nor any of its employees, agents, or subcontractors will be deemed for any purpose to be the employee or agent of Company or Morrow in the performance of services hereunder. No federal, state, city or Page 3 of 16 other local governmental income or social security taxes will be withheld from Consultant's compensation except as required by law, and all such taxes will be reported and paid directly by Consultant. Consultant hereby defends, indemnifies and holds harmless Company and Morrow, and their Affiliates, for any tax liability of Company or Morrow, or their Affiliates, directly or indirectly incurred as a result of Consultant's failure to meet its tax and other obligations, in accordance with Section 12 below. 11. Approval of Subcontractor. No subcontractors shall be used by Consultant in connection with the Work without Company's or Morrow's prior written approval of such subcontractor including verification of subcontractor's license (if required), insurance coverages as provided herein and scope of the Work to be performed by such subcontractor. Consultant shall be solely responsible for any employee benefits, including, without limitation, wages, worker's compensation benefits, employment and social security taxes, and fringe benefits, to which Consultant's authorized subcontractors, employees or agents may claim to be entitled. Consultant agrees that only those persons approved by Company or Morrow will be involved directly and on a regular basis in providing the Work described above and overseeing the performance of such services, and that such individuals will devote sufficient time to the Work as will be required to complete the Work consistent with this Agreement. 12. Indemnification. Consultant shall indemnify, defend and hold harmless Company and Morrow, and their respective affiliates, subsidiaries, agents, members, employees, representatives, shareholders and officers ("Affiliates"), from any loss, damage, liability, costs and claims thereof, including without limitation, all court costs and attorneys' fees arising directly or indirectly out of Consultant's (i) acts or omissions outside the scope of Consultant's authority; (ii) in breach or default of its obligations under this Agreement; and (Hi) negligent performance of services under this Agreement, except to the extent the same results from the sole gross negligence or the willful misconduct of Company, Morrow or their Affiliates. "Affiliates" also includes any company, partnership or other entity in which Company or its principals own, directly or indirectly, an actual or beneficial interest greater than twenty-five percent. 13. Insurance. Without in anyway limiting Consultant's obligations hereunder, Consultant shall, during the term of this Agreement, maintain the following policies of insurance with insurers licensed in California holding a minimum rating of (i) AV or better or (ii) B+X or better: 13.1 Worker's Compensation as required by law and Employer's Liability with policy limits not less than $1,000,000 per occurrence and a separate Waiver of Subrogation issued for the benefit of Company and Morrow, and their Affiliates. 13.2 Commercial General Liability (Bodily Injury and Property Damage) insurance, the limits of which shall not be less than $1,000,000 per occurrence. Such policy shall be on an occurrence (and not a claims made) basis, including coverages for (a) blanket contractual liability; (b) broad form property damage; and (c) explosion, Page 4 of 16 collapse and underground hazard; and (d) products and completed operations, to the extent applicable to the Work. 13.3 Automobile Bodily Injury and Property Damage Liability Insurance. Such insurance shall extend to owned, non-owned, and hired automobiles used in the performance of this Agreement. The limits of liability of such insurance shall not be less then $1,000,000 for Bodily Injury and Property Damage Liability combined per occurrence. 13.4 Professional Liability Insurance, the limits of which shall not be less than $1,000,000 per claim and in the aggregate with supplementary coverage for Contractual Liability to cover any liability assumed under this Agreement which is otherwise insurable under such Professional Liability Insurance. 13.5 None of the insurance coverages described herein shall be terminated, canceled, or substantially changed without thirty (30) days' prior written notice to Company and Morrow. 13.6 Without prior written consent by Company or Morrow, the deductible amount under any of the insurance coverage described herein shall not exceed twenty-five thousand dollars ($25,000.00). 13.7 Except for the insurance coverages required under Sections 13.1 and 13.4, the above insurance shall name Company and Morrow, and their Affiliates, as an additional insured with respect to Work performed hereunder, and contain a Cross Liability Endorsement which provides that the insurance applies separately to each insured and will cover claims or suits by one insured against another. Such additional insured endorsement(s) shall state that such policy is primary and that any insurance carried by an additional insured is excess and non-contributing. The additional insured endorsement for commercial general liability must provide coverage for completed operations if applicable to the Work. 13.8 Before commencing the Work, Consultant shall provide Company and Morrow an original certificate of insurance or certified copies of all policies, or other documentary evidence of the above insurance coverages satisfactory to Company. 14. Consultant Payment. 14.1 Payment to Consultant shall be made as set forth herein following delivery to Company of (i) a conditional lien waiver and release (for progress or final payment as applicable) in favor of Company and Morrow in form and substance satisfactory to release all claims with respect to such payment under applicable law, and (ii) Consultant's written certification in the form of Exhibits "B" and "B-1", attached hereto, executed by Consultant's authorized representative which shall contain an estimate by the Consultant of the "percent complete" of the services performed by Consultant for the payment period covered by the statement. Such statement shall also include, for items of work identified to be compensated on a time and materials basis, an estimate by the Page 5 of 16 Consultant of the "percent complete" of total hours worked by each of the Consultant's employees and of the services performed by each such person. Such statement shall also include an itemization of all reimbursable expenses. Consultant's statements shall represent payment in full for the portion of the Work described therein and shall declare that; (i) the labor, services and materials, if any, covered by the statement have actually been furnished and performed; (ii) any liens which may arise as a result of applicable state statutes have been released or waived to the extent of the statement; and (iii) that all subcontractors, employees, or other persons have been paid in full for any labor, materials or services included in the statement. In the event all subcontractors have not been paid for releases therefrom obtained as set forth herein, Company may withhold from the payment due to Consultant, an amount equivalent to the purported sum owing by Consultant to such subcontractor until Consultant has paid such subcontractor in full or if such payment is in dispute, until Consultant has provided Company with an indemnity agreement satisfactory to Company with respect to the lien claims of such subcontractor. 14.2 Consultant shall submit to Morrow on or prior to the 15th day of any month a fully completed Request for Payment (Exhibit "B") for Work completed during the preceding month together with the supporting materials described in Section 14.1 above. Payment of such requests shall be made on, or prior to the 15th day of the subsequent month provided all certifications, supporting statements and/or lien releases identified herein are received within five (5) days of the submittal of such request for payment. In the event the supporting statements are not received within five (5) days after submission of payment request, payment shall be due on or prior to the 15th day of the first month after Morrow receives all supporting information and statements so long as all supporting statements and/or lien releases are received by Morrow prior to the twentieth day of the month which precedes expected payment. 15. Assignment. Consultant shall not assign its obligations hereunder without the specific written consent of Company which may be withheld in the sole discretion of Company. Company may, in its sole discretion, freely assign its rights and obligations to an entity deemed by Company as reasonably capable of performing Company's obligations hereunder and shall notify Consultant in writing of such assignment. Consultant specifically acknowledges that Company may at any time assign its rights under this Agreement without the necessity of consent of any third party. 16. Confidentiality. Consultant acknowledges that with respect to Company's Project, if such plans become generally known, Company's opportunities with respect to the Project would be prejudiced. Therefore, while performing services related to Company's Project, Consultant, unless approved in writing by Company or Morrow, shall refrain from disclosing the nature and purpose of its services to any third party, including real estate agents and brokers, except public agency staffs and individuals whom Consultant must contact in performing the Work, or its counsel or accountant. Further, in connection with the Company's Project, Consultant shall not, by itself, in connection with or in the name of another, or through affiliation with any entity, acquire property or rights in conflict with Company's interest. In the event Consultant does so, any such purchase, acquisition, option or contract will be deemed at Company's sole Page 6 of 16 option, to have been acquired on behalf of Company, and Consultant shall forthwith execute or cause to be executed any documents necessary to transfer such property rights or the rights thereto Company. All information acquired by Consultant, including materials prepared by Consultant, concerning the subject of the services to be rendered under this Agreement or Company's intentions with respect thereto, shall be considered strictly confidential ("Confidential Information"). Consultant shall not disclose any Confidential Information to others without Company's or Morrow's prior written consent, nor use the Confidential Information for any purpose other than as necessary in connection with the Work or additional services rendered in accordance with this Agreement. Disclosure to Consultant's employees and agents who agree to be bound by the terms of this Section 17 is permitted when required in connection with the Work to be rendered under this Agreement. Upon termination of this Agreement, Consultant shall return all Confidential Information to Company. Consultant agrees that ideas or concepts under consideration by Company or Morrow and disclosed to or developed by Consultant are confidential and proprietary to Company and may not be utilized by Consultant for any purpose other than in connection with the services to be rendered hereunder, nor disclosed to any third party unless authorized in writing by Company. Consultant agrees to commit its employees, advisors, agents, and subcontractors to protect the confidential and proprietary nature of these ideas and concepts. 17. No Gratuities. Neither Consultant nor its subcontractors, directors, employees or agents of any of them, will give or receive any commission, fee, rebate, gift or entertainment of material cost or value in connection with Consultant's services hereunder without prior written notification and consent from Company or Morrow. It is further understood that under no circumstances are Consultant, its directors, employees, agent or subcontractors or their directors, employees or agents to make any payment, or give anything of value, to any governmental official (including any officer or employee of any government department, agency or instrumentality) to influence a decision, or to gain any other advantage for Company or Consultant, in connection with services performed hereunder. Consultant will promptly notify Company of any violation of this Paragraph 17 and any consideration received as a result of such violation shall be administered as directed by Company. Additionally, if any violation of this Section 17 occurred prior to the date of this Agreement or Authorization to proceed, Company may, at its sole option, terminate this Agreement and, notwithstanding any other provision thereof or of any Authorization, not pay compensation or reimbursement to Consultant whatsoever for any work done after the date of termination. 18. Accurate Records. Consultant shall maintain true and accurate records in connection with its services and reimbursable charges hereunder and all transactions related thereto and shall retain such records for at least 48 months after completion of such services. Company may audit any and all records of Consultant relevant to any charges hereunder. Consultant shall also provide Company or Morrow a true and correct copy of any required license annually. 19. Compliance with Laws. Consultant and its subcontractors shall comply with all applicable laws, regulations, decrees, codes, ordinances, resolutions, and other acts of any governmental authority, including, but not limited to, Federal and state labor, Page 7 of 16 occupational health and safety, environmental and tax laws, which are applicable to this Agreement and Consultant's and its subcontractors performance hereunder during the period in which the services are performed, and shall indemnify, defend and hold harmless Company, Morrow and their Affiliates from any damage, injury, liability, claims, fines and penalties resulting directly or indirectly from Consultant's or its subcontractors' failure to do so in accordance with Section 12. 20. California Law. This Agreement shall be deemed to be a contract made and performed in the State of California and will be governed by the substantive law of that state without regard to the principles of conflict of laws. 21. Attorneys Fees. If Consultant, Company or Morrow (including Affiliates of Company or Morrow) is a party to any action or proceeding to enforce any of the terms of this Agreement, the prevailing party(s) in such action or proceeding (as determined by the judge or presiding official) shall be entitled to receive from the non-prevailing party(s), the prevailing party(s) costs and reasonable attorneys fees, incurred in prosecuting, defending or appearing in such action or proceeding. 22. ARBITRATION. ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY AGREEMENTS OR INSTRUMENTS RELATING HERETO OR DELIVERED IN CONNECTION HEREWITH, INCLUDING, BUT NOT LIMITED TO A CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT WILL, AT THE REQUEST OF ANY PARTY, BE DETERMINED BY ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT (9 U.S.C. SECTION 1 ET SEQ.) UNDER THE AUSPICES AND RULES OF THE AMERICAN ARBITRATION ASSOCIATION ("AAA"), EXCEPT AS OTHERWISE PROVIDED BELOW OR AGREED BY THE PARTIES. IF BOTH PARTIES CANNOT AGREE ON AN ARBITRATOR WITHIN FIFTEEN (15) DAYS AFTER DELIVERY OF A REQUEST FOR ARBITRATION, THE ARBITRATOR SHALL BE APPOINTED BY THE PRESIDING JUDGE OF THE SUPERIOR COURT FOR THE COUNTY OF SAN DIEGO, PROVIDED SUCH ARBITRATOR SHALL HAVE AT LEAST TEN YEARS EXPERIENCE IN DEVELOPMENT OF RESIDENTIAL MASTER PLANNED COMMUNITIES. THE ARBITRATION WILL BE CONDUCTED IN SAN DIEGO COUNTY AND IN RENDERING ITS DECISION, THE ARBITRATOR SHALL APPLY THE SUBSTANTIVE LAWS OF THE STATE OF CALIFORNIA, AND WHERE APPLICABLE, THE SUBSTANTIVE LAWS OF THE UNITED STATES OF AMERICA. ANY CONTROVERSY IN INTERPRETATION OR ENFORCEMENT OF THIS PROVISION OR WHETHER A DISPUTE IS ARBITRABLE, WILL BE DETERMINED BY THE ARBITRATOR IN ACCORDANCE WITH CALIFORNIA LAW. JUDGMENT UPON THE AWARD RENDERED BY THE ARBITRATOR MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. THE INSTITUTION AND MAINTENANCE OF AN ACTION FOR JUDICIAL RELIEF IN PURSUIT OF AN ANCILLARY REMEDY DOES NOT CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY, INCLUDING THE PLAINTIFF, TO SUBMIT THE CONTROVERSY OR CLAIM TO ARBITRATION. NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION UNDER CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR BY JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES Page 8 of 16 PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. WE HAVE READ AND UNDERSTAND THE FOREGOING INITIALS AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION. Company's initials Consultant's initials 23. Entire Agreement. This Agreement constitutes the entire and integrated agreement between the parties and all prior and contemporaneous negotiations, representations and agreements, written or oral, if any, between the parties with regard to the subject matter of this Agreement are superseded and canceled hereby and shall not be used to interpret to construe this Agreement. No amendment or other modification of this Agreement shall be effective or enforceable unless in writing duly signed by Company and Consultant. 24. Notice. Wherever in this Agreement it shall be required that notice or demand be given or served by either party on the other, such notice or demand shall be given or served only if in writing and personally served at or forwarded by certified or registered mail, postage prepaid, addressed to the parties specified below. Any notice or demand given by mail as aforesaid shall be effective the second business day after mailing. Either party may change such address by written notice given in accordance with the terms hereof. Personal service may be by means of messenger, courier, commercial service such as Federal Express, telegram or telecopier or similar electronic delivery and shall be effective upon receipt. To the Company: c/o Morrow Development, Inc. Mailing Address: 1903 Wright Place, Suite 180, Carlsbad, CA 92008 Delivery Address: Same as Mailing Address To the Consultant: At the address provided on the signature page. 25. No Waiver. The failure of either Consultant or Company to insist in any one or more instances upon the strict performance of any of the terms of this Agreement or to notify the other party of any default hereunder shall not be construed as a waiver or a relinquishment of the right to insist upon future performance of such terms or the right to thereafter declare a default hereunder. If any provision of this Agreement shall be held by a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of this Agreement shall remain in full force and effect. 26. Morrow Agency. Company has represented to Consultant that Morrow is the authorized agent of Company and authorized by the Company to act as the Development Manager on behalf of the Company regarding this Agreement. Consultant acknowledges and agrees that Morrow, its officers, directors, shareholders, and Page 9 of 16 employees shall have no liability under this Agreement and that all rights and liabilities under this Agreement shall be those of Company. 27. Conflict. In the event of a conflict between the terms of this Agreement (and any authorization issued pursuant hereto), and any proposal, contract or exhibit prepared by Consultant which may be attached to any Authorization, the terms of this Agreement shall prevail. [Remainder of Page Intentionally Left Blank] Page 10 of 16 28. Survive Termination. Those provisions regarding confidentiality, indemnity and other similar covenants shall survive the termination or other expiration of this Agreement. In witness whereof, the parties have signed this Agreement in duplicate or counterpart originals effective the first date set forth above. CONSULTANT Helix Environmental Planning, Inc. COMPANY REAL ESTATE COLLATERAL MANAGEMENT COMPANY, a Delaware corporation 8100 La Mesa Blvd., Suite 150 La Mesa, CA 91941 APPROVED: MORRW By: Its: PMENT, INC. F red^M.^rbuckle F resident Page 11 of 16 EXHIBIT "A" SCOPE OF WORK Consultant: Helix Environmental Planning, Inc. Contract No.:383 Consultant agrees to furnish all labor, personnel, materials and equipment necessary to perform the Scope of Services (the "Work") described below and to complete performance of the Work in accordance with the performance schedule or the completion of dates set forth below. Consultant shall exert Consultant's best efforts, skill and judgment and shall exercise all due diligence to complete the Work in accordance with the terms of the Agreement to which this Exhibit is appended and in the most expeditious, sound and economical manner. PROJECT DESCRIPTION: Oaks South Grading Biologist SCOPE OF WORK: Task 1 Pre-lnstallation/Contractor Education Meeting. Prior to initiating clearing, HELIX will attend an on-site meeting with the contractor to educate them regarding which sensitive biological resources to avoid. Task 2 Flagging and Monitoring Construction Activities including Snake Relocation. Prior to clearing, HELIX will work with the project surveyor to flag the limits of clearing in areas supporting sensitive vegetation. A silt fence is to be constructed by the contractor along the limits of proposed clearing. HELIX will confirm that the silt fence has been properly installed. A HELIX biologist will monitor clearing activities including relocating any snakes found in areas adjacent to existing homes, and periodic monitoring of adjacent habitat to determine if accumulated dust is affecting native vegetation. HELIX has assumed up to 20 monitoring events. For this contract, HELIX assumes clearing of the vegetation will occur prior to March 15, 2002. Note: If grading occurs during the coastal California gnatcatcher-breeding season (February 15 through August 31), noise monitoring will be required. Noise monitoring is not included in the cost estimate. ASSUMPTIONS • Erosion control monitoring or erosion control is not a part of this contract. • Costs for surveyors, signs, and fencing materials are not included in the cost estimate. Page 12 of 16 SCHEDULE HELIX will work with the client in a timely and professional manner. COST ESTIMATE AND PAYMENT PROCEDURES HELIX is pleased to submit this time and materials not to exceed cost estimate of $13,000. Consultant's Initial Company's Initia Page 13 of 16 Sheetl Construciton Monitoring for Oaks and Greens Principal Group Manager Senior Project Manager Senior Biologist Project Manager Biologist m Biologist n Biologist I Technical Coordinator Graphics Production Manager Associate Biologist (planimc CIS Analyst Assistant Biologist Word Processing Biological Tech Clerical SUBTOTAL *„ t j^tf <-• ~& ODC'S Mileage Reproduction (includes plon "i!m Subcontractor GenVAdmin 10% SUBTOTAL TOTAL TASK HOURS ! 5 0 0 0 0 5 0 0 1 0 0 0 0 0 0 0 0 V 80 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ->• J 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ^ >» 0 0 0 0 0 $725 so $0 $0so $400 $0so $75 $0 So $0 $0 $0 $0 $0 $0 $1,200 $32 $0 SO $0 SO $32 $1,232 Vfonitoring during habitat clearing-Sdays8 0 0 0 0 0 0 0 1 0 0 64 0 0 0 0 0 640 0 0 0 0 1a 4 0 0 0 0 0 0 0 1 0 0 100 0 0 0 0 0 1600 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 * 0 0 0 0 0 i $1,740 so $0 $0soso so so $150 $0 $0 $9,020 $0 $0 so soso $10,910 « » ^ ^ $896 $0 $0 SO SO $896 $11,806 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M»f- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Wv- 0 0 0 0 0 TOTALSOso $0 so so $0 $0 $0 so so so so sososo so $0so s*"v58i/ $0 so so so so SO $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n»»f> 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 '; i' 0 0 0 0 0 TOTAL$0 $0 SO $0 $0 $0 $0 $0 SO $0 $0 SO so so $0 so so $0 tJfttgUA so $0 $0 so so so so 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 xta* 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SPSS 0 0 0 0 0 TOTALso $0 $0 $0 so $0 $0 $0 SO $0 soso so $0 $0 so so $0 ifcS#»t' so so so so $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 "ft">4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *T*fr 0 0 0 0 0 s! $0 $0 $0 so so SOsososo $0 so so soso $0 so so so - ,*<*•)• so $0so so so so $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 •' 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 V, 0 0 0 0 0 $0 $0 so so $0 $0 $0 so so so so so so $0 $0 so so $0 3"** ,**£ so so $0 so $0 so so 1 8 't. Sf if j:; •;:• if 1 S145 $125 $110 $110 $85 $80 $75 $65 S75 $75 $70 $55 S55 $45 $45 S35 $35 <- iss 0.40 $1 $1 $1 0 TOTAL COST ESTIMATE$2,465 SO SO $0 SO $400 SO SO $225 SO $0 $9,020 $0 SO SO $0 SO si2.no *jS»SSH3& »"! S928 SO SO SOso S928 $13,038 Pagel EXHIBIT "B" REQUEST FOR PAYMENT CONTRACT NO. 383 JOB NUMBER/DESCRIPTION: 81-21 / Oaks South Grading CONSULTANT: Helix Environmental Planning, Inc. 8100 La Mesa Blvd., Suite 150 La Mesa, CA 91941 The undersigned Consultant hereby requests payment pursuant to the invoice attached showing the personnel, time, and rate for each of the work tasks described in the Scope of Work: Invoice Number: Date: Invoice Period: Consultant's Approval: Initial Contract Amount: Addendums to Date: TOTAL Contract Amount: Percent Complete: $13.000.00 $ 0.00 $13.000.00 (See attached spreadsheet) Please submit to:Real Estate Collateral Management Company c/o Morrow Development, Inc. 1903 Wright Place, Suite 180 Carlsbad, CA 92008 Page 14 of 16 HELIX 383 1/8/02 WORK DESCRIPTION OAKS SOUTH GRADING/BIOLOGIST 81-21/20-2190 PRE-INSTALLATION/MONITORING CONSTRUCTION ACTIVITIES TOTAL-CONTRACT RRMBURSABLES 81-28/90-9140 ^P TOTAL-REIMBURSABLES TOTAL THIS INVOICE CONTRACT AMOUNT 13,000.00 13,000.00 N/A N/A PREVIOUS AMOUNT BILLED 0.00 0.00 0.00 0.00 AMOUNT DUE THIS PERIOD 0.00 0.00 0.00 0.00 0.00 Complete: TOTAL BILLED TO DATE 0.00 0.00 0.00 0.00 0% CONTRACT REMAINING 13,000.00 13,000.00 N/A N/A Page 1 of 1 EXHIBIT "B-1" CERTIFICATION OF THE CONSULTANT I HEREBY CERTIFY that the work performed and the materials supplied, if any to date, as shown on the accompanying Request for Payment dated , represent the actual value of the accomplishment under the terms of the Contract (and all authorized changes thereto) between the undersigned and Company in connection with the above referenced project. I also certify that all payments current for, (i) all materials, equipment and labor used in, or in connection with, the performance of the Contract, and (ii) all laborers and other personnel employed directly by me and performing work on the project through the periods covered by prior invoices paid by the Company. I further certify that to the best of my knowledge I have complied with performing work on the project. I further certify that to the best of my knowledge I have complied with federal, state and local tax laws, including social security laws and unemployment compensation laws and worker's compensation laws insofar as applicable to the performance of the Agreement. I further certify that the amount received under this payment request will be applied to discharge all labor, labor trust funds material and subcontract obligations applicable to this project and up to date thereof. The labor, equipment or materials (or any of them) covered by this Request for Payment have been furnished and performed as called for by the Agreement. All material suppliers to, and laborers for the undersigned, have been paid in full for the goods or services included within the Request for Payment or will be paid with the proceeds of any disbursement made pursuant to this Request for Payment, which disbursement will be received in trust for that purpose. Undersigned shall hold harmless Company, Morrow and the Project from any cost, expense (including attorney's fees) or liability arising out of the breach of the above Certification. ENDORSEMENT OF LIEN RELEASE To induce Company to make the Payment requested above, pursuant to: Contract No.:383 Invoice No.: the undersigned agrees and certifies as follows: (a) Any payment issued on the basis of this Request for Payment shall constitute payment in full to the extent set forth in the attached Request for Payment. (b) Any and all mechanic's liens, stop notices and other rights and remedies under the Mechanic's Lien Law of the State of California and related similar laws, are hereby released and waived to the extent of the Request for Payment. (c) Lien releases shall be in the form required by Civil Code § 3262. (d) The above waivers and releases are conditional and shall be effective upon receipt of the payment requested herein. Executed this day of , . Name of Consultant: Helix Environmental Planning, Inc. By: (Its Duly Authorized Agent) Page 15 of 16 EXHIBIT "C" LETTER OF AUTHORIZATION Consultant: Contract Number: Helix Environmental Planning, Inc. 383 This letter constitutes Authorization under the above-referenced Contract. All services performed under this Authorization shall be in accordance with the terms and conditions of such Contract. The Scope of Work to be done under this Authorization is as outlined in Exhibit "A". The maximum authorized for the services under this Authorization is $13,000.00. This amount is not to be exceeded without prior written consent of Company, reimbursable expenses shall be limited to reproduction, blueprinting, overnight mail and messenger service. All permitted reimbursable expenses shall be billed at actual cost plus a ten percent administrative charge. Each invoice will be accompanied by applicable receipts and documentation for reimbursables. Each invoice must include Exhibits "B" and "B-1", both completely filled out, including Description of Work or services performed, total amount authorized hereunder, amount of time spent, name of person/s who provided the Work and services described, and percent complete. Insurance Policies shall name Morrow Development, Inc. and Real Estate Collateral Management Company, and their respective Affiliates (shareholders, directors, agents, members and employees) as Additional Insureds: If to Morrow: Morrow Development, Inc. Attn: Fred Arbuckle 1903 Wright Place, Suite 180 Carlsbad, CA 92008 If to Company: Real Estate Collateral Management Company c/o Morrow Development, Inc. 1903 Wright Place, Suite 180 Carlsbad, CA 92008 If this Authorization is acceptable to you, please indicate your acceptance by signing both copies and returning one copy to this office. COMPANY REAL ESTATE COLLATERAL MANAGEMENT COMPANY^ Delaware Corporation CONSULTANT Helix ing, Inc. M By: Its: ELOPMENT, INC. Fred M. Arbuckle President Page 16 of 16 DEVELOPMENT VIA HAND DELIVERY . ' 1903 Wright Place, Suite 180 Carlsbad, CA 92008 January 11,2002 phone: 760 929-2701 Mr. Don Neu Senior Planner . . . . fax:760929-2705 City of Carlsbad . 1635 Faraday Avenue • . Carlsbad, CA 92008-7314 Re: MM&RP Conditions 4.4-12 Dear Don: Enclosed please find a copy of a fully executed License Agreement between Real Estate Collateral Management Company (RECMC) and Bent Avenue Associates allowing RECMC's entry on to the Bent Avenue Vernal Pool site to preserve, create and enhance these vernal pools pursuant to Vernal Pool Enhancement Plan (Plan) dated December 11, 2001 previously forwarded to you. Additionally enclosed, please find a fully executed contract between RECMC and Helix Environmental Planning for completion of the scope of work in the Plan. We contend that these three pieces of information should satisfy this Condition 4.4-12 of the MM&RP and I anticipate that you will sign off on these conditions. If you have additional requirements or if you have any questions or need any further information, please don't hesitate to call me at 760/929-2701 ext. 103 or e-mail at iiackson@.morrowdevelopment.com. .Sine (Jam Vnj ^rely, X :s M. Jackson or Vice President JMJ:jmj cc Jack Henthorn - Henthorn Associates (w/o enclosures) Enclosures 2 LICENSE AGREEMENT (Environmental Restoration) THIS LICENSE AGREEMENT ("Agreement") is entered into as of January // , 2002, by and between BENT AVENUE ASSOCIATES, a California general partnership ("Licensor") and REAL ESTATE COLLATERAL MANAGEMENT COMPANY, a Delaware corporation ("Licensee"). RECITALS: A. Licensor is the owner of certain real property located in the City of San Marcos, County of San Diego, State of California, known as the Bent Avenue Vernal Pool Site ("Licensor Property") described as follows: PARCEL 1 OF PARCEL MAP NO. 18636, IN THE CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY FEBRUARY 12,2001 AS FILE NO. 2001-0079579, OF OFFICIAL RECORDS. B. Licensee desires to restore and revegetate portions of Licensor Property (the "Restoration Work") to mitigate certain vernal pool impacts on Licensee's Villages of La Costa project. C. Licensee desires a license from Licensor to enter upon the Licensor Property to perform the habitat enhancement and to perform any maintenance and monitoring, including additional enhancement that may be required to meet the Licensee's approved criteria for the habitat enhancement. Licensor desires to grant a temporary license to Licensee over that certain portion of the Licensor Property depicted on Exhibit "A" attached hereto ("License Area") for such purpose, subject to the terms and conditions set forth below. NOW, THEREFORE, the parties hereto covenant and agree as follows: 1. License Fee. Licensee shall pay a one-time license fee of Twenty Thousand Dollars ($20,000.00) to Licensor. Such fee shall be paid in good funds by Licensee to Licensor concurrent with execution of this Agreement. 2. Grant of License. Licensor hereby grants to Licensee and its employees, agents and contractors, a nonexclusive license over and across the License Area for purposes of restoring and revegetating License Area hi connection with the Restoration Work (the "License"). All of the Restoration Work shall occur on Licensor Property. Licensee shall have the right to cross Licensor Property to gain access to the License Area. Except as expressly otherwise provided in this Agreement, Licensee agrees that the grant of License hereunder is made on an "AS IS" condition and basis without any representations or warranties (express or implied) with respect to the condition or status of the Licensor Property, including, without limitation, the availability and/or viability of the Licensor Property for Licensee's proposed use in connection with the Restoration Work. 3. Government Regulations and Other Obligations of Licensee. As a condition precedent to the License granted by Licensor to Licensee, Licensee shall obtain at its sole cost License Agreement 27817/5-1702514.4 1 01/09/02 and expense all governmental permits and authorizations of whatever nature required by any and all applicable governmental agencies for Licensee's use of the Licensor Property. Licensee shall furnish Licensor evidence of such permission prior to its entry on the Licensor Property. While on the Licensor Property, Licensee shall comply and will cause all of its employees, agents and contractors to comply with all applicable governmental laws and regulations, reasonable rules and regulations promulgated by Licensor, and the terms and conditions of any permit, resolution, condition of approval, or agreement applicable to the Licensor Property, including, but not limited to, any and all permits issued by the U.S. Army Corps of Engineers, California Regional Water Quality Control Board, and California Department of Fish and Game in connection with the Licensor Property. All persons who enter upon the Licensor property pursuant to this Agreement do so at their own risk, and shall comply with any and all instructions and directions of Licensor. Licensee shall be responsible for any damage done to the Licensor Property by Licensee or its employees, agents and contractors. 4. Term. This License shall commence on the date first written above and expire on January 15, 2007, subject to Licensee's right to extend for up to five (5) additional one-year extensions if needed to obtain acceptance of the Restoration Work by Government Agencies. Licensee shall give written notice to Licensor of Licensee's need of each one-year extension and concurrent delivery to Licensor of cash in the amount of $4,000 for each one-year extension no later than 30 days prior to the then scheduled expiration of the License. Upon expiration of the License, all of Licensee's rights hereunder shall automatically cease and terminate without further notice. Licensee acknowledges that this License is intended only as an interim agreement to enter the License Property and not as a grant of lease or easement or any other permanent interest in real property to Licensee. 5. Cure of Default. If either party fails to perform its obligations hereunder within ten (10) days of receipt of written notice of default identifying the alleged default, then the non- defaulting party may thereafter pursue its legal remedies to terminate or otherwise enforce the Agreement. Upon request by Licensor, Licensee shall execute a quitclaim deed of Licensee's rights granted by this License. 6. Indemnification of Licensor and Right to Cure Liens. As part of the consideration for this Agreement, Licensee hereby agrees to indemnify, defend, and hold harmless Licensor, its employees, officers, shareholders and partners (collectively, "Indemnitees") from and against all loss, liability, expenses, damages, costs (including attorneys' fees and costs) that Indemnitees may incur by reason of (i) any liens, claims, demands, actions or suits arising from any work performed or materials supplied to or for Licensee; (ii) any claims of any person for bodily injuries or any claims for property damage by reason of the work or activities conducted on the License Area or Licensor Property by Licensee, its agents, contractors, or employees; (iii) any costs, fees, expenses related to repair, restoration, or rehabilitation of any kind to the License Area or Licensor Property as might be required by any governmental agency as a result of Licensee's Restoration Work; or (iv) any violation or alleged violation of any law, ordinance, regulation, permit, resolution, condition of approval, or agreement by reason of the work, use, or activities conducted on the License Area or Licensor Property by Licensee or its agents, contractors, or employees. If Licensee fails within ten (10) business days of receipt, by Licensee of a written request from Licensor to pay or otherwise discharge any lien or claim of lien arising out of the use of the License Area or Licensor Property by Licensee, Licensor may, at is option, pay any such lien or claim of lien, and the amount paid by the Licensor to discharge such lien or claim or lien shall be paid to Licensor by Licensee upon written demand, together with interest License Agreement 27817/5-1702514.4 2 01/09/02 thereon at the maximum rate permitted by law, from the date until repaid, and any default either in such initial failure to pay or subsequent repayment to Licensor shall constitute a breach under this Agreement. This indemnity shall survive the expiration or earlier termination of this Agreement. 7. Insurance. Licensee shall cause any contractor employed by Licensee conducting work within the License Area to maintain, in full force during the term of this Agreement, a policy of commercial general liability insurance for death, bodily injury and property damage, insuring against liability for injury to or death of any person, arising in connection with the use of the License, or any other activities conducted by Licensee or its agents or contractors on the License Area or Licensee Property. Licensor, or any successor in interest to Licensor, shall be named as an additional insured under any such insurance. Such insurance at all times shall be in an amount of not less than a combined single limit of Two Million Dollars'($2,000,000.00). Licensee shall provide to Licensor a certificate evidencing that such insurance is in effect and that such insurance shall not be cancelled without thirty (30) days' prior written notice to Licensor (upon transfer of the Property to a successor in interest, Licensee shall cause the successor in interest to be named as the additional insured). Anyone performing any work on the License Area shall, at all times during the performance of any work, and at its own cost and expense, procure and continue in force workers' compensation coverage as required by law together with employee's liability coverage. 8. Recordation. If Licensee elects to do so, Licensor will cooperate in the execution of a customary memorandum of this Agreement reasonably acceptable to Licensor to be recorded in the San Diego County Recorder's Office. In the event Licensee requests recordation of such memorandum, Licensee shall be solely responsible for all costs, expenses and/or real estate taxes levied or assessed by the San Diego County Tax Assessor or Collector. Upon expiration or earlier termination, Licensee shall execute and record a quitclaim deed or other instrument reasonably necessary to clear title. Licensor shall notify any tenant, lender or successor in interest of Licensor's Property of this Agreement. 9. Assignment. This Agreement shall not be assigned by Licensee without the prior written consent of Licensor, which consent may not be unreasonably withheld. Notwithstanding the foregoing, Licensor will consent to the assignment of this License to any purchaser of one or more parcels in the Licensee's project. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns. Any successor in interest shall assume, in writing, the obligations of this Agreement. Upon such an assignment and assumption, Licensee shall not be released of any obligations under this Agreement. During the term of this Agreement, Licensor shall provide a copy of this Agreement to any potential buyer of Licensor's Property prior to any conveyance. 10. Attorneys' Fees. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing party shall be entitled to receive from the other party, in addition to any other relief that may be granted, the reasonable attorneys' fees, costs, and expenses incurred in the action or proceeding by the prevailing party. 11. Entire Agreement. This Agreement constitutes the entire agreement between Licensor and Licensee relating to the License. License Agreement 27817/5 -1702514.4 3 01/09/02 12. Interpretation. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. 13. Counterparts. This Agreement may be executed in counterparts, each of which shall be an original, but when taken together shall constitute but one agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. Licensor's Address: P.O. Box 1053 Solana Beach, CA 92075 Licensor's Address: Real Estate Collateral Management Company c/o Morrow Development, Inc. 1903 Wright Place, Suite 180 Carlsbad, CA 92008 BENT AVENUE ASSOCIATES, a California general partnership By: SOUTH COAST DEVELOPMENT, a California corporation, its partner By:. Keith W. Gregory, Presi "Licensor" REAL ESTATE COLLATERAL MANAGEMENT COMPANY, a Delaware corporation •*>s~.^ j*"By: David A. Watts Its: Vice President "Licensee" License Agreement 27817/5-1702514.4 01/09/02 13 219-33 1"=200' CHANGES LK OLD £8-87 NEW O-ftff^A: 27 flO-AZ 5CT -IT 88 ae, 90 I J-J7 9. CUT cite DETAIL 'A' NO SCALE CENTER JUL 10 2001 DE SAN MARCOS •4-J § I SSSESSOI'S H»> 3< >I9 MAP 8130 -COMMERCE HAP "4520 - BARBARA PLAZA MAP 806 - RHO LOS VALLECITOS DE SAN MARCOS - POR BLK 78 RQ&958I, 9877,13343 co oi § QJQ 001 •*-•-. HWO La Mesa Blvd., Suite La Mesa, <:A V1M1- fax (619) 462-OW phone (619) 462-January 22,2002 City of Carlsbad Attn: Don Neu 2075 Las Palmas Drive Carlsbad, California 92009-1576 Pax (760) 602-8558 Subject: The Villages of La Costa project in the City of Carlsbad Dear Mr. Neu, This letter has been written to inform you that the perimeter slaking and fencing for the Oaks portion of the Villages uf La Costa project has been completed. Work was completed on January 18, 2000, and was monitored by HELIX biologist Ted Grantham. Please call if you have any questions. Sincerel Justin Fischbeck Biologist 100/TOO'a •AN3 xnan 619