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HomeMy WebLinkAboutAGMT - Boeing Realty (Subdivision Improvement)1 CITY OF SEAL BEACH SUBDIVISION IMPROVEMENT AGREEMENT * * * * * * SUBDIVISION REFERENCE DATA * * * * * * [x] FINAL TRACT MAP NO. 16375 ( "Final Map" herein) [ ] PARCEL MAP NO. ( "Parcel Map" herein) NAME OR TRACT NUMBER OF SUBDIVISION: (if applicable) 16375( "Subdivision" herein) NAME AND ADDRESS OF SUBDIVIDER(S): Boeing Realty — Pacific Gateway Tract The Boeing Company c/o Boeing Realty Corporation CITY COUNCIL RESOLUTION OF APPROVAL NO. herein) 15480 Laguna Canyon Rd, #200 Irvine CA 92618 ( "Resolution of Approval" IMPROVEMENT PLANS NO. ( "Improvement Plans" herein) IMPROVEMENTS: See Schedule A ESTIMATED TOTAL COSTS: IMPROVEMENTS $ 10,195,258 GRADING $ 1,345,785 MONUMENTATION: $ 50,000 INSPECTION: $ 579,552 TOTAL: $ 12,170,595 832017.13 ■ FORM OF IMPROVEMENT SECURITY: [ ] Corporate surety bonds [] Deposit of money or negotiable bonds [ ] Other: NAME AND ADDRESS OF CORPORATE SURETY (if applicable): SURETY BOND NUMBERS (if applicable): EFFECTIVE DATE OF AGREEMENT: (Name of Corporate Entity) (Street Address) (City) (State) (Zip) (to be inserted by City) COMPLETION PERIOD: All improvements of Tract 16375 (including the complete water and sewer system in Apollo Drive) with the exception of the roadway (street) improvements on Apollo Drive, shall be completed within two years from the Effective Date of the Agreement. Apollo Drive roadway (street) construction (so that Apollo Drive is a continuous route from Seal Beach Blvd. to Westminster Ave.) shall be constructed prior to the Certificate of Occupancy for development of lots 8 and 9 of Tract 16375. * * * * * * * * * * * * * * * * * * * * * * 832017.13 Table of Contents Recitals 1. Subdivider's Obligation to Construct Improvements 2. Inspection of Work and Final Acceptance 3. Guarantee and Warranty of the Improvements 4. Time Extensions 5. Improvement Security 6. Reduction or Release of Improvement Security 7. Indemnification of City by Subdivider 8. Insurance 9. Ownership of the Improvements 10. Default and Breach by the Subdivider and Remedies of the City 11. Relationship of the Parties 12. Assignment 13. Notices 14. Entire Agreement 15. Severability 16. Incorporation of Subdivision Reference Data and Recitals 17. Governing Law 18. Effective Date of the Agreement Signatures Schedule A Faithful Performance Bond Payment Bond 832017.13 THIS SUBDIVISION IMPROVEMENT AGREEMENT ( "Agreement ") is made and entered into by and between the City of Seal Beach, a municipal corporation ( "City "), and the Subdivider whose name and address is set forth above in the Subdivision Reference Data. RECITALS A. Subdivider has presented to the City for approval and recordation a Final Map, identified above in the Subdivision Reference Data, of a proposed subdivision pursuant to the Subdivision Map Act of the State of California and the City's ordinances and regulations relating to the filing, approval and recordation of subdivision maps (collectively referred to herein as the "Subdivision Laws "). B. A tentative map of the Subdivision was previously approved by City, subject to the Subdivision Laws and to the City's standard requirements and conditions of approval contained in the City Council's Resolution of Approval, a copy of which is on file in the Office of the City Clerk and which is incorporated herein by this reference. C. The Subdivision Laws establish, as a condition precedent to the approval of a Final Map, that the Subdivider comply with the City Council's Resolution of Approval and either (i) complete, in compliance with City standards, all of the improvements and land development work required by the Subdivision Laws and the City Council's Resolution of Approval; or (ii) enter into a secured agreement with the City to complete the improvements and land development work within a period of time specified by the City. D. In consideration of approval of the Final Map for the Subdivision by the City Council, Subdivider desires to enter into this Agreement whereby Subdivider promises to install and complete, at its sole expense, all public improvement work required by the City for the proposed Subdivision. Subdivider has secured this Agreement by improvement security required by the Subdivision Laws and approved by the City. E. Improvement Plans, and related specifications, numbered as designated above in the Subdivision Reference Data, for the construction, installation and completion of the Improvements identified in Schedule A hereto, have been prepared by the Subdivider, approved by the City Engineer, and are on file in the office of the City Engineer. Said Improvement Plans, and related specifications, subsequently modified by the mutual written agreement of the parties, are hereby referred to as the "Improvement Plans" and are incorporated herein by this reference. Any improvement to be constructed pursuant to the Improvement Plan is hereby referred to individually as an "Improvement" and collectively as the "Improvements ". 832017.13 NOW, THEREFORE, in consideration of the approval and recordation by the City Council of the Final Map of the Subdivision, Subdivider and City agree as follows: 1. SUBDIVIDER'S OBLIGATION TO CONSTRUCT IMPROVEMENTS A. Subdivider shall, at its sole expense, and in compliance with the provisions of the Subdivision Laws, the Improvement Plans, and all applicable City standards and fees, and in a good and workmanlike fashion, furnish, construct, install and guarantee (as set forth in Section 3) the Improvements, Grading, and Monumentation generally described in Schedule A attached hereto and more specifically described in the tentative map and in the City Council's Resolution of Approval relating thereto (collectively, the "Improvements "). B. To the extent necessary to construct the Improvements, as determined by the City Engineer, the Subdivider shall acquire and dedicate, or pay the cost of acquisition by City of, all rights -of -way, easements and other interests in real property for the construction or installation of the Improvements, free and clear of all liens and encumbrances. The Subdivider's obligations with regard to the acquisition by City of off -site rights -of -way, easements and other interests in real property, if any, shall be subject to a separate agreement between Subdivider and City. C. Subject to any time extensions granted in accordance with Section 4, Subdivider shall complete all Improvements within its respective "Completion Period" specified in the Subdivision Reference Data; provided, however, that if the City Engineer reasonably determines in good faith that accelerated construction of the Improvements is essential in order to protect the public health, welfare and safety, the City Engineer shall give Subdivider not less than fifteen (15) business days' prior written notice to commence or accelerate installation and construction of such Improvements, or any portion thereof. The notice shall be in writing, and shall describe the work to be done by Subdivider, the time within which the work will commence, the period within which the work will be completed and identify the reasons that such early commencement is essential in order to protect the public health, welfare and safety. All or any portions of said Improvements may be required to be constructed or completed at a specified time, providing the foregoing criteria is met. If the Subdivider objects to the commencement or acceleration of the Improvements as specified by the City Engineer, Subdivider may appeal the decision of the City Engineer to the City Council. Any such appeal shall be filed with the City Clerk within 10 days after receipt by Subdivider of the written notice from the City Engineer. D. If the Improvements to be constructed by Subdivider include monumentation, such monumentation shall be installed not later than thirty (30) days after the City's acceptance of all other Improvements pursuant to Section 2. As 832017.13 used herein, "monumentation" shall mean the setting of survey monuments and tie points in accordance with the Subdivision Laws, and the delivery to the City Engineer of tie notes for said points. E. Subdivider shall, at its sole expense, replace or repair all public improvements, public utility facilities, and surveying or subdivision monuments which are destroyed or damaged as a result of any work under this Agreement. Any such replacement or repair shall be subject to the approval of the City Engineer. F. Until any category of Improvements is accepted by the City, Subdivider shall be responsible for the care and maintenance of such Improvements and shall bear all risks of loss or damage to said Improvements. Neither City, nor its officers, agents and employees, shall have any liability for any accident, loss or damage to the Improvements prior to their completion and acceptance by the City. G. Subdivider shall, at its sole expense, obtain all necessary permits and licenses for the construction and installation of the Improvements, give all necessary notices, and pay all fees required by City ordinance or resolution and all taxes required by law. H. Not less than fifteen (15) days prior to commencement of work on the Improvements, Subdivider shall give written notice to the City Engineer of the date fixed for such commencement of work in order that the City Engineer shall have adequate time to schedule all necessary inspections. I. DEVELOPER shall pay all City fees and costs stipulated in the latest fee resolution as adopted by the City Council from time to time as required for the development of the SUBDIVISION including but not limited to the following: 1. Building Permit Fees - -- to be paid at the time of building permit issuance; 2. Transportation Fees - -- to be paid at the time of building permit issuance; 3. Final Map Filing Fee - -- to be paid at time of filing final map; 4. Final Map Plan Check Fees - -- to be paid from cash deposit established at time of filing final map; 5. Final Map Construction Fees - -- to be paid from cash deposit established prior to approval of final map; 6. Plan Check and Review Fees - -- to be paid from cash deposit established at time of filing improvement plans; 7. Encroachment Permit Fees - -- to be paid at time of application for encroachment permit; 832017.13 8. Inspection Fees - -- to be paid from cash deposit established at time of approval of final map; 9. Grading Permit Fee - -- to be paid from cash deposit established at time of grading permit issuance; 10. Sewer Service Connection Charge Fee - -- to be collected at the time of building permit issuance; and 11. Water Service Connection Charge Fees - -- to be collected at the time of building permit issuance. J. Subdivider shall pay a "buy in" cost to the new Adolfo Lopez Sewer Pump Station, that will be based on the Subdivider's percentage of average daily flow to the new pump station multiplied by the total cost of the new pump station project and then minus the money already paid by the Subdivider for construction, inspection, and project management, as described in the Tentative Map Conditions, to be collected within thirty days of Effective Date of the agreement. K. Subdivider shall provide City with final Record Drawings of all plans developed for the Subdivision, showing all changes and as built conditions as specified in the Tentative Tract Map Conditions of Approval prior to the acceptance of improvements and release of bonds or other security. 2. INSPECTION OF WORK AND FINAL ACCEPTANCE A. Subdivider shall at all times maintain proper facilities and safe access for inspection of the Improvements by the City Engineer and other City personnel. B. Upon completion of the work on all or any category of the Improvements specified in Schedule A, the Subdivider may request a final inspection by the City Engineer. Within five business days of any inspection of the Improvements, the City Engineer shall provide written notice to Subdivider of the list of items which have been found to be incomplete and the list of items which have been found to be complete. If the City Engineer determines that all or any specified category of the Improvements have been completed in accordance with this Agreement and in compliance with the Improvement Plans and all applicable City standards, then the City Engineer shall certify to the City Council the completion of such Improvements. Subdivider shall bear all costs of inspection and certification for completeness in accordance with City's formally adopted fees and rates. C. Acceptance of all or any specified category of the Improvements by the City Council shall be made upon recommendation and certification of the City Engineer following inspection of said Improvements pursuant to subparagraph B above. The City Council shall act upon the City Engineer's recommendation within thirty (30) days following certification by the City Engineer that 832017.13 such Improvements have been completed. Acceptance by the City Council shall not constitute a waiver by the City of any defects in the Improvements. 3. GUARANTEE AND WARRANTY OF THE IMPROVEMENTS A. If, within a period of one year following acceptance by the City Council of the last of the Improvements specified in Schedule A, any Improvements or part of any Improvements furnished, installed or constructed by the Subdivider, or any of the work performed under this Agreement, fails to comply with any requirements of this Agreement, or the Subdivision Laws, or the Improvement Plans and related specifications, the Subdivider shall, without delay and without cost to the City, repair, replace or reconstruct any defective or otherwise unsatisfactory part or parts of the Improvements. Subdivider's obligations hereunder shall include the repair, replacement or reconstruction of all irrigation systems and all trees, shrubs, ground cover and landscaping for such one year. B. Should the Subdivider fail or refuse to act promptly or in accordance with subparagraph A above, or should the exigencies of the situation require repair, replacement, or reconstruction to be undertaken before the Subdivider can be notified and can perform the necessary work, then the City may, in its discretion, make the necessary repairs or replacements or perform the necessary reconstruction and draw upon the Subdivider's improvement security to reimburse itself for the costs incurred. If the Subdivider's improvement security does not cover the total cost of such repair, replacement, or reconstruction, the Subdivider shall reimburse the City for any excess costs incurred. C. The security furnished for the faithful performance of the Subdivider's obligation to construct and install the Improvements described herein shall include Subdivider's liability hereunder for the one -year guarantee and warranty of the Improvements. 4. TIME EXTENSIONS A. Upon a showing by the Subdivider of good cause therefor, the duration of the Completion Period for the Improvements (or any of them) may be extended by the City Engineer,. As used herein, "good cause" may include, without limitation, delay resulting from an act of the City; acts of God or force majeure, strikes, boycotts or similar job actions by employees or labor organizations which prevent the conduct of the work; acts or failure to act of the California Coastal Commission, including any order thereof; findings made by a governmental entity that the site of a particular Improvement is of archeological significance; and/or actions or failure to act of native American monitor(s); and, the order of any court, the City of Seal Beach, or the California Coastal Commission. B. A time extension may be granted without notice to any surety or sureties of the Subdivider and shall not affect the validity of this Agreement nor 832017.13 release the surety or sureties on any bond given as an improvement security pursuant to this Agreement. C. As a condition of any time extension provided for herein, the City Engineer, , may require the Subdivider to furnish new or modified improvement security guaranteeing performance of this Agreement, as extended, in an increased amount as necessary to compensate for any projected increase in the Estimated Total Cost of Improvements, as determined by the City Engineer. 5. IMPROVEMENT SECURITY A. Prior to City's execution of this Agreement, Subdivider shall provide as security to the City: 1. For Performance and Guarantee: Security in an amount equal to one hundred percent (100 %) of the Estimated Total Cost of the Improvements, including Grading and Monumentation, as set forth above in the Subdivision Reference Data. With this security, the form of which shall be subject to City Attorney's prior approval, the Subdivider assures faithful performance under this Agreement and guarantees the Improvements for one year after the completion and acceptance of the last of such Improvements, against any defective workmanship or materials or any unsatisfactory performance, pursuant to Section 3 hereof. The Subdivider shall automatically increase the amount of such security by an amount equal to ten percent (10 %) of the deposited security every year, subject to the provision that the City Manager may at any time determine that a greater increase in the amount of the security is necessary due to a greater increase in the cost of construction of the Improvements or any of them. In such event, the Subdivider shall provide the additional security within ten (10) days after receiving demand and justification therefor. 2. For Payment: Security in an amount equal to one hundred percent (100 %) of the Estimated Total Cost of the Improvements, excluding Grading and Monumentation, as set forth above in the Subdivision Reference Data. With this security, the form of which shall be subject to City Attorney's prior approval, the Subdivider guarantees payment to contractors, subcontractors, and persons renting equipment or furnishing labor or materials to them or to the Subdivider. If monumentation is involved, this improvement security shall also guarantee to the Subdivider's engineer or surveyor payment of the Estimated Total Cost of setting monuments, as required by Government Code Section 66497. The Subdivider shall automatically increase the amount of such security by an amount equal to ten percent (10 %) of the deposited security every year, subject to the provision that the City Manager may at any time determine that a greater increase in the amount of the security is necessary due to a greater increase in the cost of construction of the Improvements or any of them. In such event, the Subdivider shall provide the additional security within ten (10) days after receiving demand and justification therefor. 832017.13 B. If the improvement security is a corporate surety bond and, in the opinion of the City, any surety or sureties thereon become insufficient, the Subdivider shall renew or replace any such surety bond with good and sufficient surety or sureties within ten (10) days after receiving from City written demand therefor. C. Improvement security consisting of corporate surety bonds, in a form accepted by the City Attorney, shall be kept on file with the City Engineer. If a corporate surety bond is replaced by another approved bond, the replacement shall be filed with the City Engineer and, upon filing, shall be deemed to have been made a part of and incorporated into this Agreement. Upon filing and approval by the City Engineer of a replacement bond, the former improvement security shall be released. D. Modifications of the Improvement Plans and related specifications, and modifications of the Improvements, not exceeding ten percent (10 %) of the original Estimated Total Cost of the Improvements, shall not relieve or release any improvement security furnished by Subdivider pursuant to this Agreement. If any such modifications exceed ten percent (10 %) of the Estimated Total Cost of the Improvements, Subdivider shall furnish additional improvement security for performance and guarantee, and for payment, as required by subparagraph A above, for one hundred percent (100 %) of the revised Estimated Total Cost of the Improvements. E. Subject to any time extensions granted in accordance with Section 4 herein, if the Subdivider has not completed the Improvements within the specified time, the Subdivider shall be in default: (i) All improvements (including the complete water and sewer system in Apollo Drive) with the exception of the roadway (street) improvements on Apollo Drive, shall be completed within two years from the Effective Date of the Agreement. (ii) Apollo Drive roadway (street) construction (so that Apollo Drive is a continuous route from Seal Beach Blvd. to Westminster Ave.) shall be constructed prior to the Certificate of Occupancy for development of lots 8 and 9 of Tract 16375. The intent of the City is that Apollo Drive be a continuous route from Seal Beach Blvd. to Westminster Avenue for public use and benefit as soon as possible. Alternatively, in the event of a default by the Subdivider pursuant to Section 10, and after written notice to Subdivider and reasonable opportunity to cure, City, at its sole option, shall have the right, without limiting any other rights and/or remedies available to City at law or in equity, to draw upon or utilize the improvement security furnished herewith to construct and install the Improvements itself. If City exercises this right, the release of any unused portion of such improvement security shall be in accordance with the procedures outlined in Section 6 herein, including any retention necessary for the one - year guarantee period. 832017.13 6. REDUCTION OR RELEASE OF IMPROVEMENT SECURITY A. Partial releases or reductions in the Subdivider's improvement security may be authorized prior to the City's acceptance of all Improvements required hereunder, as provided in this Section 6. B. Upon acceptance of all or any specified category of the Improvements by the City Council, and upon written request of the Subdivider, the improvement security may be reduced or released as follows: 1. Security for Performance and Guarantee: Unless Subdivider submits new or additional security, such as a maintenance bond, in an amount equal to ten percent (10 %) of the Estimated Total Cost of the Improvements, the security for performance and guarantee shall not be reduced or released in an amount greater than ninety percent (90 %) of the aggregate principal amount thereof prior to the expiration of the one -year guarantee and warranty period specified in Section 3.A., nor until any claims filed during the one -year warranty period have been settled. 2. Security for Payment: Security furnished to secure payment to contractors, subcontractors, and to persons providing labor, materials or equipment shall, six (6) months after acceptance of all of the Improvements, be reduced to an amount equal to the total amount claimed by all claimants for whom liens have been filed and of which notice has been given to the City, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the security. The balance of the security shall be released upon settlement or release of all claims and obligations for which the security was given. C. If Subdivider's obligations relating to any Improvements are subject to the approval of another governmental agency, the City shall not release the improvement security therefor until the obligations are performed to the satisfaction of such other governmental agency. Such agency shall have two (2) months after Subdivider's performance of the obligation to register its satisfaction or dissatisfaction. If at the end of that period it has not registered its satisfaction or dissatisfaction, it shall be conclusively deemed that the Subdivider's performance of the obligation was done to its satisfaction, and such improvement security shall be promptly released. 7. INDEMNIFICATION OF CITY BY SUBDIVIDER A. Neither the City, nor its officers, agents and employees, shall be liable or responsible for any accident, injury, loss or damage to either property or person attributable to or arising out of the construction, installation or maintenance of the Improvements by Subdivider, its officers, employees and agents. Subdivider shall indemnify, hold harmless and defend the City, its officers, agents and employees, from and against any and all losses, claims, costs, expenses, liabilities, damages, actions, 832017.13 causes of action and judgments, including attorneys' fees, arising directly or indirectly out of or attributable to Subdivider's acts or failure to act. B. Subdivider's obligations under this Section 7 are not conditioned or dependent upon whether the City, or its officers, agents and employees, prepared, supplied or reviewed any Improvement Plans or related specifications in connection with the Subdivision or the Improvements, or has insurance or other indemnification covering any of these matters. C. Subdivider's obligation to indemnify, hold harmless and defend the City shall extend to injuries to persons and damages to or alleged taking of property resulting from the design or construction of the Subdivision, and the Improvements required herein, and shall likewise extend to claims asserted by adjacent property owners based upon the diversion of waters caused by the Subdivider's design or construction of public drainage systems, streets, and other public facilities or improvements. Except for a City Directive as defined below, the City's acceptance of the Improvements shall not constitute an assumption by the City of any responsibility or liability for any damage or alleged taking of property referenced herein. City shall not be responsible or liable for the design or construction of the Subdivision or the Improvements constructed or installed pursuant to the approved Improvement Plans or the Final Map, regardless of any act or omission by the City in approving the Improvement Plans or the Final Map, unless the particular Improvement design was required by the City over the written objection of the Subdivider, which objection stated that the Improvement design was potentially dangerous or defective and set forth an alternative design (a "City Directive "). After City's acceptance of the Improvements, the Subdivider shall remain obligated to correct or eliminate all dangerous conditions created by defects in design or construction (other than those required by a City Directive); provided, however, that Subdivider shall not be responsible for routine maintenance. Subdivider's indemnity obligations hereunder shall remain in effect for two (2) years following acceptance of the respective Improvement(s) by the City Council. Subdivider acknowledges and agrees that Subdivider shall be responsible and liable for the design and construction of the Improvements and other work done pursuant to this Agreement, unless same is due to a City Directive. City shall not be liable for any acts or omissions in approving, reviewing, checking, correcting or modifying any Improvement Plans or related specifications, or in inspecting, reviewing or approving any work or construction of Improvements, unless same is due to a City Directive. The Subdivider's improvement security shall not be required to secure the Subdivider's obligations under this subparagraph C beyond the one -year guarantee and warranty period. D. Subdivider shall pay and satisfy any judgment, award or decree that may be rendered against City, its officers, officials, employees, agents, representatives and volunteers (collectively hereinafter "City and City Personnel ") to the extent of the indemnity provided above, in any such suit, action, or other legal proceeding, provided City gives Subdivider prompt written notice of such claim and allows Subdivider to undertake the defense thereof. 832017.13 E. Subdivider's obligation to indemnify shall not be restricted to Insurance proceeds, if any, received by the City and City Personnel. F. Subdivider, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against City and City Personnel to the extent of the indemnity above provided. 8. INSURANCE. Subdivider shall have insurance as follows: A. General Liability: Subdivider shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, a policy or policies of comprehensive General liability insurance, with limits of One Million Dollars ($1,000,000.00) for each occurrence and in the aggregate, combined single limit, against bodily injury (including death), or loss or damage to property to the extent resulting from the wrongful or negligent acts or omissions of Subdivider, its officers, employees, and agents, and shall require such coverage of its independent contractors. If such insurance contains a general aggregate limit, either the general aggregate shall apply separately to this project, or the general aggregate limit shall be three times the occurrence limit. Subdivider shall have the right to provide such insurance under its existing insurance program, provided such existing insurance meets all of the requirements of this paragraph A. B. Automobile Liability (including owned, non - owned, and hired autos): Subdivider shall at all times during the Term of this Agreement also carry, maintain, and keep in full force and effect a policy or policies of commercial automobile liability insurance with a combined single limit of One Million Dollars ($1,000,000.00), single limit, per occurrence for bodily injury and property damage, which will cover the drivers and automobiles used to perform Services pursuant to this Agreement. Such insurance shall include coverage for owned, non - owned, and hired automobiles. Subdivider shall have the right to provide such insurance under its existing insurance program, provided such existing insurance meets all of the requirements of this paragraph B. C. Workers' Compensation. Subdivider shall, to the extent required by state law, provide Workers' Compensation Insurance, including employer's liability coverage, for the protection of Subdivider's employees, with a minimum limit of One Million Dollars ($1,000,000) or the amount required by law, whichever is greater. Subdivider shall file a certificate of insurance which evidences that Subdivider is in compliance with said Workers' Compensation Insurance requirement. Subdivider shall require all subcontractors similarly to provide such Workers' Compensation Insurance and certificates of insurance for their respective employees. D. Subdivider agrees that if it does not keep the aforesaid insurance in full force and effect City may either, after written notice to Subdivider and failure by Subdivider to cure same within ten (10) days, immediately terminate this Agreement for default by Subdivider, or, if insurance is available at reasonable cost, City 832017.13 may take out the necessary insurance and pay, at Subdivider's expense, the premium amount. E. The general liability policy shall be endorsed to state that City, its officers, officials, employees, agents, representatives and volunteers (collectively hereinafter "City and City Personnel ") shall be covered as additional insureds to the extent of the indemnity in Section 7. The automobile liability policy shall be endorsed to state that City and City Personnel shall be covered as additional insureds to the extent of the indemnity in Section 7. F. The insurance provided by Subdivider shall be primary to any coverage available to City and shall provide that any insurance or self - insurance maintained by City or City Personnel shall be in excess of Subdivider's insurance and shall not contribute with it. G. The insurance provided by Subdivider shall be endorsed to state that the insurer shall waive all rights of subrogation against City and City Personnel, to the extent of the Indemnity in Section 7. H. The policy or policies required herein shall be issued by an insurer admitted in the State of California with a rating of at least B +, VII in the latest edition of A.M. Best's insurance guide. I. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer or a broker to bind coverage on its behalf. The certificates shall also specifically state that the coverage contained in those policies affords insurance in compliance with the terms and conditions as set forth in this Agreement. J. Deductibles. Subdivider's deductible shall not exceed $10 Million. Any deductibles or self - insured retentions of any subcontractors must be declared to and approved by City prior to the execution of this Agreement by City. At the option of City, either the subcontractor's insurer shall reduce or eliminate the deductibles or self - insured retentions as respects City, or the subcontractor shall procure a bond guaranteeing payment of losses and expenses. K. Notice of Policy Changes. Coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits, non - renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by Subdivider to City by U.S. mail, certified, or by personal delivery. L. Evidence of Coverage. Prior to commencement of work, and at all times during the term of this Agreement, Subdivider shall maintain on file with the City Clerk a certificate or certificates of insurance in a form acceptable to the City Attorney, showing compliance with the foregoing requirements. 832017.13 M. Nothing contained herein in Section 8 shall be construed as limiting in any way Subdivider obligations of indemnification under Section 7 or any other extent to which Subdivider may be held responsible for payment of damages to persons or property resulting from its operations, including operations and work performed or materials supplied by or on behalf of Subdivider, any subcontractors or by anyone directly or indirectly employed by any of them. 9. OWNERSHIP OF THE IMPROVEMENTS A. Ownership of all or any category of the Improvements constructed and installed by the Subdivider pursuant to this Agreement to be dedicated pursuant to the Map shall vest, as applicable, in the City (or other specified governmental agency) upon acceptance of said Improvements by the City Council and recordation of a Notice of Completion. B. The Subdivider shall at all times prior to the acceptance of the Improvements by the City, give good and adequate warning to the public of each and every dangerous and defective condition caused by the construction of the Improvements and shall take all steps necessary to protect the public from such dangerous or defective conditions. The Subdivider agrees and understands that until acceptance of the Improvements by the City, each Improvement and Improvement area that is offered for dedication shall be under the charge of the Subdivider, and the Subdivider may close all or a portion of any street or area whenever necessary to protect the public during the construction of the Improvements. 10. DEFAULT AND BREACH BY THE SUBDIVIDER AND REMEDIES OF THE CITY A. Upon the occurrence of any of the following events, the Subdivider shall be deemed to be in default under this Agreement: 1. Subject to any time extensions granted in accordance with Section 4, failure to complete construction and installation of the Improvements or any of them by the completion date set forth above in the Subdivision Reference Data; 2. Failure to promptly correct or cure any defect in the Improvements or any of them (other than a City Directive) during the one -year guarantee and warranty period as required by Section 3.A or failure to commence correction or cure of any such defect or failure to diligently prosecute same to completion, in each instance following receipt by Subdivider of written notice that such defect exists; 3. Subject to any time extensions granted in accordance with Section 4, failure to perform substantial construction work of the 832017.13 Improvements or any of them, after commencement of work on same, for a period of thirty (30) days after Subdivider's receipt of written notice thereof from the City; 4. Insolvency, appointment of a receiver, or the filing of any petition in bankruptcy, whether voluntary or involuntary, and such is not cured or discharged within a period of thirty (30) days; 5. Commencement of a foreclosure action against the Subdivision or any portion thereof, or any conveyance by the Subdivider in lieu or in avoidance of foreclosure, within thirty (30) days after receipt by Subdivider of written notice thereof from the City; or 6. Failure to perform any other obligations in accordance with the terms and provisions of this Agreement within thirty (30) days after receipt by Subdivider of written notice thereof from the City. B. City reserves to itself all remedies available to it at law or in equity for any breach of Subdivider's obligations under this Agreement. City shall have the right, without limitation of other rights or remedies, after written notice to Subdivider and a reasonable opportunity for Subdivider to cure any such alleged default, to draw upon or utilize any improvement security furnished hereunder to complete the Improvements or otherwise mitigate City's damages in the event of Subdivider's default. C. Following Subdivider's receipt of written notice of alleged default and failure by Subdivider to promptly commence the cure of any alleged default and to diligently prosecute such cure to completion, the City may serve written notice of any such default upon the surety on any corporate surety bond furnished as improvement security hereunder, and request that said surety take over and complete the Improvements herein specified. If such surety, within ten (10) days after service of such notice of default, does not give the City written notice of its intention to perform this Agreement, or does not commence such performance within thirty (30) days after notice to the City of such intention to perform, the City may take over the work and prosecute the same to completion, by contract or by any other method the City deems advisable, for the account and at the expense of the Subdivider and its surety. D. Subdivider acknowledges that the Estimated Total Costs and improvement security amounts set forth herein may not reflect the actual cost of construction or installation of the Improvements, and, consequently, City's damages for Subdivider's default shall be measured by the actual cost of completing the required Improvements. If the damages incurred by the City in taking over and completing the Improvements exceeds the principal amount of the improvement security, then the Subdivider shall reimburse the City in the amount of such excess damages. E. Following Subdivider's receipt of written notice of alleged default and failure by Subdivider to promptly commence the cure of any alleged default and to diligently prosecute such cure to completion, City may, without liability for so 832017.13 doing, take possession of, and utilize in completing the Improvements, such materials, appliances, plant and other property belonging to Subdivider as may be on the site of the work and necessary for the performance of the work. Subdivider hereby consents to such entry by the City and its representatives, including contractors, upon any real property in the Subdivision owned by Subdivider or by any assignee of this Agreement, in the event the City elects to maintain or complete the work on the Improvements following Subdivider's default, other than Parcels 17, 18, 19 and 20 (the "Retail Parcels ") and Parcels 11, 14, 15 and 16 upon which Subdivider is conducting its business (the "Boeing Parcels "). F. Subdivider acknowledges and agrees that, upon approval of the Final Map for the Subdivision, City will confer substantial rights upon the Subdivider, including the right to sell, lease or finance lots within the Subdivision, and that such approval constitutes the final act necessary to permit the division of land within the Subdivision. As a result, City will be damaged to the extent of the cost of construction or installation of the Improvements upon Subdivider's failure to perform its obligations under this Agreement, which failure is not promptly remedied by sureties or by Subdivider. G. The City's failure to take an enforcement action with respect to a default, or to declare a default or breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of the Subdivider. H. If City sues to compel Subdivider's performance of this Agreement, or to recover damages or costs incurred in completing or maintaining the work on the Improvements, Subdivider agrees to pay all attorneys' fees and other costs and expenses of litigation incurred by the City in connection therewith, even if Subdivider subsequently resumes and completes the work. 11. RELATIONSHIP OF THE PARTIES Neither Subdivider, nor any of Subdivider's contractors, employees or agents, are or shall be deemed to be, agents of the City in connection with the performance of Subdivider's obligations under this Agreement. 12. ASSIGNMENT A. Subdivider shall not assign this Agreement, or any portion thereof without the prior written consent of the City. Any attempted or purported assignment in violation of this subparagraph A shall be null and void and shall have no force or effect. B. The sale or other disposition of the Subdivision shall not relieve Subdivider of its obligations hereunder. If Subdivider intends to sell the Subdivision, or any portion thereof, to any other person or entity, the Subdivider may request a novation of this Agreement and a substitution of improvement security. Upon the City's approval of the novation and substitution of improvement security, the 832017.13 Subdivider may request a release or reduction of the improvement security furnished pursuant to this Agreement. 13. NOTICES All notices required or provided for in this Agreement shall be in writing and delivered in person or by mail, postage prepaid, and addressed as follows: If to the City: City Engineer City of Seal Beach 211 8th Street Seal Beach, California 90740 If to the Subdivider: To the address set forth above in the Subdivision Reference Data, or to such other address as may subsequently be designated in written notice to the City. Notice shall be effective on the date that it is delivered in person, or, if mailed, three (3) days after the date of deposit in the United States Mail. 14. ENTIRE AGREEMENT This Agreement constitutes the entire agreement of the parties with respect to its subject matter. All modifications, amendments, or waivers of any terms of this Agreement shall be in writing and signed by the duly authorized representatives of the parties. In the case of the City, the duly authorized representative, unless otherwise specified herein, shall be the City Engineer. 15. SEVERABILITY The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect. 16. INCORPORATION OF SUBDIVISION REFERENCE DATA AND RECITALS The Subdivision Reference Data, the Recitals and Schedule A are incorporated into this Agreement. 17. GOVERNING LAW This Agreement shall be governed by the laws of the State of California. 18. EFFECTIVE DATE OF THE AGREEMENT 832017.13 This Agreement shall be and become effective as of the date that it is executed by a duly authorized officer or employee of the City, it being the intention of the parties that the Subdivider shall first execute this Agreement and thereafter submit it to the City. The City shall insert the effective date in the Subdivision Reference Data in all counterparts of this Agreement and shall transmit a fully executed counterpart to the Subdivider. SIGNATURES BEGIN ON NEXT PAGE 832017.13 i IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers, thereunto duly authorized, as of the dates set forth below their respective signatures. [Note: All signatures must be acknowledged by a notary public and the acknowledgement must be attached. If signed by a Corporation, the signatures of two Corporate officers are required, unless a resolution of the Corporation's Board of Directors is provided indicating that the signature of the one signatory is sufficient to bind the Corporation.] 832017.13 "SUBDIVIDER" The Boeing Company By: rSteph n J. Barker Vice resident By: Al: n i e rancis Authorized Signatory Date: I 0 J 3 ( or- - Signatures continue on next page — "CITY" CITY OF SEAL BEACH i,..% d.0- MAYOR ATTEST: n X,4 V �ljMu (SEAL) ITY CLERK Approved as to form: a CITY ATTORNEY 832017.13 ALL PURPOSE ACKNOWLEDGEMENT State of California County of Orange County SS On October 31. 2005 before me, personally appeared TONI RAAGAS ALAN E. DEFRANCIS TONI NAAGAS COMM. 01605622 z Notary Public • California o Orange County COMM. Es = ,.10, 2009 ® personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person whose names is/are- subscribed to the within instrument and acknowledged to me that he/s#retttrey executed the same in his/her /limit authorized capacities, and that by his/her/their signatureW on the instrument the person(si, or the entity upon behalf of which the person0 acted, executed the instrument. WITNESS my hand and official seal. (Signature •r Notary lic) Optional Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signers Name: ❑ Individual ❑ Corporate Officer - Title(s): ❑ Partner- ❑Limited ❑ General ❑ Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other Signer is Representing: ALL PURPOSE ACKNOWLEDGEMENT State of California SS County of Orange County On October 31, 2005 before me, TONI RAAGAS personally appeared STEPHEN J.BARKER ® personally known to me ❑ proved to me on the basis of satisfactory evidence to be the personfsj whose namela)' is/eree subscribed to the within instrument and acknowledged to me that he/che/they executed the same in his/hertheir authorized capacities, and that by his/Per/their signatures on the instrument the persoW, or the entity upon behalf of which the personcK acted, executed the TONI RAAGAS instrument. COMM a u +'fsx�,�.�" Notary ubli�6California o WITNESS my hand a d official seal. _ ! Orange County • `-;;1 • Crmrm.Ex.res 10,2009 (Sign. ure or N..tj Public) Optional Though the information below is not required bylaw,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer-Title(s): ❑ Partner-❑Limited ❑ General ❑Attorney-in-Fact ❑Trustee ❑ Guardian or Conservator ❑ Other Signer is Representing: • [ X] FINAL TRACT MAP NO. 16375 PLAN TITLE SHEETS SCHEDULE A Storm Drain 1 -11 Streets 1 -30 Sanitary Sewer 1 -8 Water Plan 1 -9 Signing & Striping 1 -6 Traffic Signals 7 -11 Landscape & Irrigation L1 — L63 Misc: Grading Plans Rough & Precise Seal Beach Blvd. Flood Mitigation Plans (Conceptual) CATEGORIES OF IMPROVEMENTS [ X ] STREET IMPROVEMENTS* [ X ] REPAIR OF STREET DAMAGE [ X ] SEWER IMPROVEMENTS [ X] STORM DRAIN DRAINAGE IMPROVEMENTS AMOUNT OF ESTIMATED TOTAL COST [ X ] WATER SYSTEM $ [X ] SEAL BEACH BLVD. DRAINAGE $ IMPROVEMENTS [ X ] LANDSCAPING, PLANTING & $ IRRIGATION [X ] TRAFFIC ENGINEERING $ (SIGNALS) SUBTOTAL FOR THIS CATEGORY $ [ X ] GRADING [ X] MONUMENTATION • AMOUNT OF PERFORMANCE SECURITY 2,500,000 $ 200,000 $ 1,200,000 $ 1,500,000 $ 1,150,000 $ 1,000,000 $ 1,945,258 $ 700,000 $ 10,195,258 $ 1,345,785 $ 50,000 TOTAL CONSTRUCTION 11,591,043 INSPECTIONS AT 5% 579,552 TOTAL 12,170,595 TOTAL PERFORMANCE SECURITY: $ 12,170,595 TOTAL PAYMENT SECURITY: $ 12,170,595 832017.13 AMOUNT OF PAYMENT SECURITY 2,500,000 $ 200,000 $ 1,200,000 $ 1,500,000 $ 1,150,000 $ 1,000,000 $ 2,500,000 200,000 1,200,000 1,500,000 1,150,000 1,000,000 1,945,258 $ 1,945,258 700,000 $ 700,000 10,195,258 $ 10,195,258 1,345,785 $ 1,345,785 50,000 $ 50,000 1 • NOTE: IF CORPORATE SURETY BONDS ARE TO BE UTILIZED, A SINGLE FAITHFUL PERFORMANCE BOND AND A SINGLE PAYMENT BOND MUST BE SUBMITTED FOR ALL OF THE REQUIRED CATEGORIES OF IMPROVEMENTS. 832017.13 • • CITY OF SEAL BEACH BOND #6380019 FAITHFUL PERFORMANCE BOND PACIFIC GATEWAY BUSINESS CENTER, TRACT NO. 16375 (Name or Tract Number of Subdivision) KNOW ALL MEN BY THESE PRESENTS: WHEREAS, THE BOEING COMPANY (hereinafter designated as "Principal ") has executed a Subdivision Improvement Agreement ( "Agreement" herein) with the City of Seal Beach, a municipal corporation ( "City" herein), whereby Principal agrees to construct, install, complete and guarantee for one year after acceptance thereof certain designated public improvements generally identified as follows: Schedule A ; and WHEREAS, said Agreement is incorporated herein by this reference; and WHEREAS, said Principal is required under the terms of said Agreement to furnish a corporate surety bond or other approved improvement security to guarantee the faithful performance of said Agreement; NOW, THEREFORE, the Principal designated above, and SAFECO INSURANCE COMPANY OF AMERICA as Surety, are held and firmly bound unto the City in the penal sum of Twelve Million One Hundred Seventy Thousand Five Hundred and Ninety -five Dollars ($12,170,595.00), lawful money of the United States, for the payment of which we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that the obligation shall become null and void if the above - bounded Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to, abide by, well and truly keep and perform the covenants, conditions and provisions in said Agreement and any modification thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated; otherwise, this obligation shall be and remain in full force and effect. 832017.10 • • As a part of the obligation secured hereby, and in addition to the face amount specified, costs and reasonable expenses and fees shall be included, including reasonable attorneys' fees, incurred by the City in successfully enforcing the obligation, all to be taxed as costs and included in any judgment rendered. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement, the work to be performed thereunder, or the Improvement Plans and related specifications accompanying the Agreement shall in any manner affect its obligations on this bond. The Surety hereby waives notice of any such change, extension of time, alteration or addition to the terms of the Agreement, the work, or the Improvement Plans and related specifications. IN WITNESS WHEREOF, this instrument has been duly executed by the above -named Principal and Surety as of the date or dates set forth below the signatures of their authorized officers. Note: All signatures must be acknowledged before a notary public. Attach appropriate acknowledgment. "PRINCIPAL" The Boeing Company 15480 Laguna Canyon Rd #200 Irvine, CA 92618 (City) (State) (Zip) nat re of authorized officer) i�uclZn9gelc�,,.p ,S;sTTfr-easurei- (Title of officer) Date: 0 -Z "SURETY" 832017.10 • • SAFECO INSURANCE COMPANY OF AMERINCA (Type name of Surety) APPROVED: City Attorney 832017.10 SAFECO PLAZA (Street Address) SEATTLE, WASHINGTON 98185 (City) (State) (Zip) ture of auth$rized officer) LINDA ISER, ATTORNEY -IN-FACT (Title of officer) Date: 10 -21 -05 • • ACKNOWLEDGEMENT BY SURETY STATE OF ILLINOIS COUNTY OF COOK On this 21ST of October,. 2005, before me, Karen Daniel, a Notary Public, within and for said County and State, personally appeared Linda Iser'to me personally known to be the Attorney -in -Fact of and for Safeco Insurance Company of America and acknowledged that she executed the said instrument as the free act and deed of said Company. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, at my office in the aforesaid County, the day and year in this certificate first above written. Notary Public in the State of Illinois County of Cook OFFICIAL SEAL KAREN DANIEL NOTARY PUBLIC • STATE OF ILLINOIS MY COMMISSION EXPIRES 12!07105 • • IMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002 As a surety bond customer of one of the SAFECO insurance companies (SAFECO Insurance Company of America, General Insurance Company of America, first National Insurance Company of America, American States Insurance Company or American Economy Insurance Company), it is our duty to notify you that the Terrorism Risk Insurance Act of 2002 extends to "surety insurance ". This means that under certain circumstances we may be eligible for reimbursement of certain surety bond losses by the United States govemment under a formula established by this Act. Under this formula, the United States government pays 90% of losses caused by certified acts of terrorism that exceed a statutorily established deductible to be paid by the insurance company providing the bond. The Act also establishes a $100 billion cap for the total of all losses to be paid by all insurers for certified acts of terrorism. Losses on some or all of your bonds may be subject to this cap. This notice does not modify any of the existing terms and conditions of this bond, the underlying agreement guaranteed by this bond, any statutes goveming the terms of this bond or any generally applicable rules of law. At this time there is no premium change resulting from this Act. S -6248/GEEF 2/03 FRP POWER S A F E C CY OF ATTORNEY • SAFECO INSURANCE COMPANY OF AMERICA GENERAL INSURANCE COMPANY OF AMERICA HOME OFFICE: SAFECO PLAZA SEATTLE, WASHINGTON 98185 No. 10025 KNOW ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint * * *MARCIA K. CESAFSKY; JAMES A: CUTHBERTSON; KAREN DANIEL; PATRICIA M. DOYLE; ROBERT E. DUNCAN; GEOFFREY E. HEEKIN; LINDA ISER; THOMAS J. JOSLIN; GREGORY K. KESSLER; KATHLEEN J. MAILES; SANDRA MARTINEZ; JOELLEN M. MENDOZA; SUSAN J. PREIKSA; SUSAN A. WELSH; CRAIG T.TAGLIAMONTE• Chicago, Illinois********■************************************************************** *** * * ********** *** * ***** * * * ** ** its true and lawful attomey(s) -in -fact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents this 27th CHRISTINE MEAD, SECRETARY day of July , 2004 GLy.�y ; N MIKE MCGAVICK, PRESIDENT CERTIFICATE Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13.- FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attomeys -in -fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to Xhe validity of any such instrument -or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (i) The provisions of Article V, Section 13 of the.By -Laws, and (ii) A copy of the power -of- attorney appbintment, executed pursuant thereto, and (iii) Certifying that said power -of- attomey appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, Christine Mead, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attomey issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attomey are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set .my hand and affixed the facsimile seal of said corporation this ak day of (340 O . S- 0974 /SAEF 2/01 CHRISTINE MEAD, SECRETARY ® A registered trademark of SAFECO Corporation 07/27/2004 PDF • • CITY OF SEAL BEACH BOND #6380019 PAYMENT BOND PACIFIC GATEWAY BUSINESS CENTER, TRACT NO. 16375 (Name or Tract Number of Subdivision) KNOW ALL MEN BY THESE PRESENTS: WHEREAS, THE BOEING COMPANY, (hereinafter designated as "Principal ") has executed a Subdivision Improvement Agreement ( "Agreement" herein) with the City of Seal Beach, a municipal corporation ( "City" herein), whereby Principal agrees to construct, install and complete certain designated public improvements generally identified as follows: Schedule A ; and WHEREAS, said Agreement is incorporated herein by this reference; and WHEREAS, said Principal is required under the terms of said Agreement, before entering upon the performance of the work, to file with the City a good and sufficient payment bond, or other approved security, to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the California Civil Code and in Government Code Section 66497; NOW, THEREFORE, the Principal designated above, and SAFECO INSURANCE COMPANY OF AMERICA, as Surety, are held firmly bound unto the City and all contractors, subcontractors, laborers, materialmen and other persons employed in the performance of said Agreement and referred to in the above - referenced Civil Code and Government Code in the sum of Twelve Million One Hundred Seventy Thousand Five Hundred and Ninety -five Dollars ($12,170,595.00), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor; that said Surety will pay the same in an amount not exceeding the amount hereinabove set forth; and in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by the City in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, and under Government Code Section 66497, so as to give a right of action to them or their assigns in any suit brought upon this bond. 832017.10 • • Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said Agreement or the Improvement Plans or related specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition. IN WITNESS WHEREOF, this instrument has been duly executed by the above -named Principal and Surety as of the date or dates set forth below the signatures of their authorized officers. Note: All signatures must be acknowledged before a notary public. Attach appropriate acknowledgment. "PRINCIPAL" The Boeing Company 15480 Laguna Canyon Road #200 (Street Address) Irvine, CA 92618 (City) (State) (Zip) Sig ture of authorized officer) (Title of officer) Date: 2 "SURETY" SAFECO INSURANCE COMPANY OF AMERICA (Type name of Surety) 832017.10 • APPROVED: City Attorney 832017.10 • SAFECO PLAZA (Street Address) SEATTLE, WASHINGTON 98185 (City) (State) (Zip) egn't . ure of autho zed officer) LINDA ISER, ATTORNEY -IN-FACT (Title of officer) Date: 10 -21 -05 • • IMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002 As a surety bond customer of one of the SAFECO insurance companies (SAFECO Insurance Company of America, General Insurance Company of America, First National Insurance Company of America, American States Insurance Company or American Economy Insurance Company), it is our duty to notify you that the Terrorism Risk Insurance Act of 2002 extends to "surety insurance ". This means that under certain circumstances we may be eligible for reimbursement of certain surety bond losses by the United States govemment under a formula established by this Act. Under this formula, the United States govemment pays 90% of losses caused by certified acts of terrorism that exceed a statutorily established deductible to be paid by the insurance company providing the bond. The Act also establishes a $100 billion cap for the total of all losses to be paid by all insurers for certified acts of terrorism. Losses on some or all of your bonds may be subject to this cap. This notice does not modify any of the existing terms and conditions of this bond, the underlying agreement guaranteed by this bond, any statutes goveming the terms of this bond or any generally applicable rules of law. At this time there is no premium change resulting from this Act. S.6248/GEEF 2/03 FRP • • ACKNOWLEDGEMENT BY SURETY STATE OF ILLINOIS COUNTY OF COOK On this 21ST of October= 2005, before me, Karen Daniel, a Notary Public, within and for said County and State, personally appeared Linda Iser to me personally known to be the Attorney -in -Fact of and for Safeco Insurance Company of America and acknowledged that she executed the said instrument as the free act and deed of said Company. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, at my office in the aforesaid County, the day and year in this certificate first above written. Notary Public in the State of Illinois County of Cook OFFICIAL SEAL KAREN DANIEL L NOTARY PUBLIC . STATE OF ILLINOIS MY COMMISSION EXPIRES 12/07/05 f • SAFECO' POWER OF ATTORNEY SAFECO INSURANCE COMPANY OF AMERICA GENERAL INSURANCE COMPANY OF AMERICA HOME OFFICE: SAFECO PLAZA SEATTLE, WASHINGTON 98185 No. 10025 KNOW ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint * * *MARCIA K. CESAFSKY; JAMES A. CUTHBERTSON; KAREN DANIEL; PATRICIA M. DOYLE; ROBERT E. DUNCAN; GEOFFREY E. HEEKIN; LINDA ISER; THOMAS J. JOSLIN; GREGORY K. KESSLER; KATHLEEN J. MAILES; SANDRA MARTINEZ; JOELLEN M. MENDOZA; SUSAN J. PREIKSA; SUSAN A. WELSH; CRAIG T. TAGLIAMONTE• Chicago, Illlnoi5*►►*►►*******►►►*►►►►*►►►►**********►►►►******►►*****►**►►►►►*►***►►►►► ►►►►►►► *►►**►*******► * ***►►►►►►► its true and lawful attomey(s) -in -fact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents this 27th CHRISTINE MEAD, SECRETARY day of July , 2004 MIKE MCGAVICK, PRESIDENT CERTIFICATE Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attomeys -in -fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (i) The 'provisions of Article V, Section 13 of the By -Laws, and (ii) A copy of the power -of- attorney appointment, executed pursuant thereto, and (iii) Certifying that said power- of- attomey appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, Christine Mead, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attomey are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation this S -0974ISAEF 2/01 day of G9-60 CHRISTINE MEAD, SECRETARY ® A registered trademark of SAFECO Corporation 07/27/2004 PDF l ACORDTM CERTIFICA 1 Ic OF LIABILITY INSURAi10E Page 1 of 3 DATE 09/22/2008 POLICY NUMBER PRODUCER Willis North America, Inc. 26 Century Blvd. P. O. Box 305191 Nashville, TN 372305191 877 - 945 -7378 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC# INSURED The Boeing Company 100 N Riverside Plaza Chicago, IL 60606 -1596 I 10/1/2008 INSURER A: ACE American Insurance Company 22667 -002 INSURER B: Indemnity Insurance Company of North Amer 43575 -001 INSURERC:National Union Fire Insurance Co. of Pitt 19445 -701 INSURER D: CLAIMS MADE X OCCUR INSURER E: $ COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR _ i DD'L , ; . TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE . A D . & POLICY EXPIRATION • ATE M DD Y LIMITS A x GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY ** HDOG2374434A 10/1/2008 10/1/2009 EACHOCCURRENCE S 10 000 000 X PRMMGE TO RENTED PREMISES Ea occurence $ ■■ CLAIMS MADE X OCCUR MED EXP (Any one person) $ X AUTO LIABILITY(AOS) PERSONAL &ADVINJURY S 5 000 000 X ANY AUTO GENERAL AGGREGATE S 25 000 000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG S 7 500 000 ■ POLICY n PRl T ■ LOC A X - AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS Auto Physical Damage ISAH08247237 10/1/2008 10/1/2009 COMBINED SINGLE LIMIT (Ea accident) $ 10, 000, 000 X ■ BODILY INJURY (Per person) S ■ ■ BODILY INJURY (Per accident) S ■ X PROPERTY DAMAGE (Per accident) $ X is Self- Insured GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC S AUTO ONLY: AGG S EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE S ■ OCCUR CLAIMS MADE AGGREGATE $ DEDUCTIBLE RETENTION S� $ ■ $ $ A B B A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER /EXECUTIVE OFFICER/MEMBEREXCLUDED? If yes, describe under SPECIAL PROVISIONS below WLRC42850974 (CA) WLRC42851000 (AOS) WLRC42850962 (VARIOUS) SCFC42851012 WI 10/1/2008 10/1/2008 10/1/2008 10 1 2008 10/1/2009 10/1/2009 10/1/2009 10 1 2009 r5 WI X fi.T17 � E.L. EACH ACCIDENT S 1 000 000 E.L. DISEASE - EA EMPLOYEE $ 1 000 000 E.L. DISEASE - POLICY LIMIT S 1 000 000 C OTHER Excess Workers' Comp XWC4773006 (WA & OH) 10 1 2008 10 1 2009 WORKERS COMP SIR = $5,000,000. EL -EACH ACCIDENT $8,000,000. EL- DISEASE /EA. EMPLOYEE $8,000,000. DESCRIPTION OF OPERATIONS /LOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS ** COMPREHENSIVE LIABILITY INSURANCE - POLICY #HDOG2374434A Coverage includes Comprehensive General Liability, Contractual Liability, Products - Completed Operations, Personal Injury, Advertising Injury, Benefits Injury (Claims- Made), and applies to all premises and operations. This policy also provides Automobile Liability for all autos which are not separately insured. Physical Damage for Automobiles is Self- Insured. The Cit of Seal Beach CA. is an Additional Insured to the extent re• ired in the a•reement and CERTIFICATE HOLDER CANCELLATION ACORD 25 (2001/08) Co11:2484013 Tp1:829102 Cert:11365096 0ACORD CORPORATION 1988 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR City of Seal Beach, CA. REPRESENTATIVES. 211 - 8th St. AUTHORIZED REPRESENTATIVE Seal Beach, CA 90740 r� — �11 • i ACORD 25 (2001/08) Co11:2484013 Tp1:829102 Cert:11365096 0ACORD CORPORATION 1988 WIIIIS CERTIFICA . c OF LIABILITY INSURAI4CE Page 2 of 3 DATE 09/22/2008 PRODUCER Willis North America, Inc. 26 Century Blvd. P. 0. Box 305191 Nashville, TN 372305191 877 - 945 -7378 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC# INSURED The Boeing Company 100 N Riverside Plaza Chicago, IL 60606 -1596 INSURERA:ACE American Insurance Company 22667 -002 INSURERB:Indemnity Insurance Company of North Amer 43575 -001 INSURERC:National Union Fire Insurance Co. of Pitt 19445 -701 INSURER D: INSURER E: DESCRIPTION OF OPERATIONS /LOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS to the extent of Boeing's negligence. Co11:2484013 Tp1:829102 Cert:11365096 J IMPORTANT Page 3 of 3 If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD25(2001/08) Co11:2484013 Tp1:829102 Cert:11365096