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HomeMy WebLinkAboutZA2019-019 - APPROVING COASTAL DEVELOPMENT PERMIT NO. CD2018-113 & MODIFICATION PERMIT NO. MD2018-009 TO ALLOW THE CONSTRUCTION OF A NEW SINGLE-FAMILY RESIDENCE WITH AN ATTACHED TWO-CAR GARAGE WHICH DEVIATES FROM THE MINIMUM GARAGE WIDTH STANDARDS LOCATEDRESOLUTION NO. ZA2019-019 A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH APPROVING COASTAL DEVELOPMENT PERMIT NO. CD2018-113 AND MODIFICATION PERMIT NO. MD2018-009 TO ALLOW THE CONSTRUCTION OF A NEW SINGLE-FAMILY RESIDENCE WITH AN ATTACHED TWO -CAR GARAGE WHICH DEVIATES FROM THE MINIMUM GARAGE WIDTH STANDARDS LOCATED AT 3004 WEST OCEAN FRONT (PA2018-276) THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: 614"115004EIIIIIIII&9rTA 1r1LTA :1.rr•]011111;UX"101 1. An application was filed by William Guidero, with respect to property located at 3004 West Ocean Front, and legally described as Parcel 1 of Block 30, requesting approval of a Coastal Development Permit and a Modification Permit. 2. The applicant proposes a coastal development permit for the demolition of an existing single-family residence and the construction of a new 2,944 -square -foot single-family residence with a 442 -square -foot attached garage. The proposed development also includes additional appurtenances such as walls, fences, patios, hardscape, drainage devices, and landscaping. A modification permit is also requested to allow the two -car garage to be constructed with an 18 -foot interior clear width, where a width of 18 feet 6 inches is required by the Zoning Code. The proposed residence complies with all other applicable development standards including height, setbacks, and floor area limits. 3. The subject property is located within the Two -Unit Residential (R-2) Zoning District and the General Plan Land Use Element category is Two -Unit Residential (RT). 4. The subject property is located within the coastal zone. The Coastal Land Use Plan category is Two -Unit Residential (RT -E) and the Coastal Zoning District is Two -Unit Residential (R-2). 5. A public hearing was held on February 14, 2019, in the Corona del Mar Conference Room (Bay E -1st Floor) at 100 Civic Center Drive, Newport Beach. A notice of time, place, and purpose of the hearing was given in accordance with the Newport Beach Municipal Code. Evidence, both written and oral, was presented to, and considered by, the Zoning Administrator at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. This project is categorically exempt pursuant to Title 14 of the California Code of Regulations (Section 15315, Article 19 of Chapter 3, Guidelines for Implementation of the California Environmental Quality Act (CEQA) under Class 3 (New Construction or Zoning Administrator Resolution No. ZA2019-019 Paqe 2 of 12 Conversion of Small Structures), because it has no potential to have a significant effect on the environment. 2. Class 3 exempts the construction of limited numbers of new, small structures, including one single-family residence. The proposed project is a new single-family residence located in the R-2 Coastal Zoning District. SECTION 3. REQUIRED FINDINGS. In accordance with Section 21.52.015 (Findings and Decision) of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: Finding: A. Conforms to all applicable sections of the certified Local Coastal Program. Facts in Su000rt of Finding: The proposed development complies with applicable residential development standards including, but not limited to, floor area limitation, setbacks, height, and parking. a. The maximum floor area limitation is 4,038 square feet and the proposed floor area is 3,386 square feet. b. The proposed development complies with the required setbacks, which are 5 feet along the property line abutting West Ocean Front, 3 feet along each side property line, and 5 feet along the rear property line abutting West Ocean Front Alley. C. The highest guardrail/parapet is less than 24 feet from established grade and the highest ridge is 29 feet from established grade. The proposed development complies with all height requirements. The proposed development provides a two -car garage, meeting the minimum garage requirement for a single-family residence. e. The proposed development exceeds the minimum 9.0 -foot (NAVD88) top of slab elevation requirement for interior living areas of new structures. 2. The neighborhood is predominantly developed with two- and three-story single-family residences. The proposed design, bulk, and scale of the development is consistent with the existing neighborhood pattern of development and expected future development. 3. The development fronts the public beach known as West Ocean Front and is separated by the Pacific Ocean by a wide sandy beach. The property is currently located within Flood Zone X per the current Flood Insurance Rate Map (FIRM) as published by the Federal Emergency Management Agency (FEMA), indicating the property is not in a special flood hazard area and not subject to special building design measures. However, effective March 21, 2019, a portion of the lot will be located within the FEMA VE Zone 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Paqe 3 of 12 designation as illustrated on the preliminary flood insurance rate map (PFIRM).The VE Zone designation, indicates that a portion of the property may be subject to flood hazards associated with high velocity wave action from storms or seismic sources. Although currently not effective, to further evaluate this potential hazard, a Coastal Hazard Report and Wave Runup Study was prepared by GeoSoils, Inc., dated January 24, 2019. The study provides detailed site-specific analysis of the potential coastal hazards with the proposed development, including wave action. The likely range of sea level rise projection for year 2100 (exceeding 75 year life of structure) is projected between 1.3 and 3.2 feet, resulting in a future water elevation of between 9.0 feet and 10.9 feet based on the North American Vertical Datum of 1988 (NAVD88). The finish floor elevation of the proposed dwelling is 14.0 feet NAVD88, which exceeds the minimum 9.0 - foot (NAVD88) elevation standard for new structures and is 3.1 feet above the 10.9 -foot future sea level rise projection. Furthermore, the site is currently more than 400 feet from the shoreline. Using a conservative analysis of shoreline erosion, the shoreline would retreat 150 feet over the 75 -year life of the development, resulting in a distance of approximately 250 feet between the site and the shoreline. This is recognized as a safe distance to protect the site from extreme events. Applying a more conservative 5.1 -foot sea level rise projection, wave bore would travel approximately 130 feet from the shoreline before it dissipates; therefore, the overtopping of waves over the next 75 years most likely will not reach the subject site, even under extreme conditions. 4. Although the site is concluded to be safe from coastal hazards over the design life of the development, in the unlikely event the shoreline is eroded back near the site, and wave overtopping reaches the site, a 3 -foot -high privacy wall along the seaward property line would afford wave flooding from reaching the site. Furthermore, the project incorporates building materials (concrete and other waterproof materials) that are resilient to temporary flooding and can be adapted for additional waterproofing in the future if needed. Future adaption could include new waterproof composite materials (plastic/fiberglass) siding to the entire building, or available flood dam systems to exclude water from entering the site. 5. Pursuant to NBMC Section 21.30.030(C)(3)(i)(iv), the property owner will be required to enter into an agreement with the City waiving any potential right to protection to address situations in the future in which the development is threatened with damage or destruction by coastal hazards (e.g., waves, erosion, and sea level rise). The property owner will also be required to acknowledge any hazards present at the site and unconditionally waive any claim to damage or liability against the decision authority, consistent with NBMC Section 21.30.015(D)(3)(c). Both requirements are included as conditions of approval that will need to be satisfied prior to the issuance of building permits for construction. 6. Due to the large distance from coastal waters, a Water Quality Management Plan (WQMP) and a Construction Pollution Prevention Plan (CPPP) are not required. A post - construction drainage system will be installed that includes drainage and percolation features designed to retain dry weather and minor rain run-off on-site to ensure the project does not impact water quality. Any water not retained on-site is directed to the City's storm drain system. 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Paqe 4 of 12 7. Proposed landscaping complies with Implementation Plan Section 21.30.075. A condition of approval is included that requires drought -tolerant species. Prior to issuance of building permits, the final landscape plans will be reviewed to verify invasive species are not planted. 8. The property is located in an area known for the potential of seismic activity and liquefaction. All projects are required to comply with the California Building Code (CBC) and Building Division standards and policies. Geotechnical investigations specifically addressing liquefaction are required to be reviewed and approved prior to the issuance of building permits. Permit issuance is also contingent on the inclusion of design mitigation identified in the investigations. Construction plans are reviewed for compliance with approved investigations and CBC prior to building permit issuance. 9. The property fronts a public boardwalk and public beach, with views oriented towards the Pacific Ocean. An investigation of the project site and surrounding area did not identify any other public view opportunities. The project will replace an existing single-family home with a new single-family home that complies with all applicable Local Coastal Program (LCP) development standards and maintains a building envelope consistent with the existing neighborhood pattern of development. Therefore, the project does not have the potential to degrade the visual quality of the Coastal Zone or result in significant adverse impacts to public views. Finding: B. Conforms with the public access and public recreation policies of Chapter 3 of the Coastal Act if the project is located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. Fact in Support of Finding: 1. The project site is located in West Newport between the nearest public road and the sea. Implementation Plan Section 21.30A.040 requires that the provision of public access bear a reasonable relationship between the requirement and the project's impact and be proportional to the impact. In this case, the project replaces an existing single-family residence located on an inland lot with a new single-family residence. Therefore, the project does not involve a change in land use, density or intensity that will result in increased demand on public access and recreation opportunities. Furthermore, the project is designed and sited so as not to block or impede existing public access opportunities. 2. Vertical access to the beach is available near the site on 30th Street and 31St Street, where there is a public beach with access to the water. Lateral access and views of the ocean are also available along an existing 6 -foot -wide public sidewalk (Ocean Front Boardwalk) in front of the project site. In accordance with Section 20.52.050.E (Modification Permits — Required Findings) of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Page 5 of 12 Finding: C. The requested modification will be compatible with existing development in the neighborhood. Facts in Support of Finding: The neighborhood is predominantly comprised of two-story and three-story single-family residences and duplexes located on 25 -foot -wide lots. The Modification Permit will allow a new single-family residence with an attached two -car garage which is substandard in width. Although the Zoning Code requires a garage that is 18 feet 6 inches wide for lots 35 -feet in width, the proposed 18 -foot wide garage is wide enough to accommodate two vehicles and exceeds the minimum garage width of 17 feet 6 inches required for 25 - foot -wide lots common in the neighborhood. 2. The proposed single-family residence is 3,386 square feet (including the 442 -square - foot garage), where the maximum floor area limit is 4,038 square feet. Also, the proposed residence is two stories, where the Zoning Code allows for three stories. The proposed residence is equal or less than the bulk and scale of the other single -unit and two -unit dwellings within the neighborhood. 3. The existing development on the property is a single-family residence. Therefore, there is no change to the density as a result of the proposed new single-family residence. Finding: D. The granting of the modification is necessary due to the unique physical characteristic(s) of the property and/or structure, and/or characteristics of the use. Facts in Support of Finding: 3004 West Ocean Front was previously described as Lot 3 of Block 30, and had lot dimensions of 25 feet wide by 90 feet deep. A lot line adjustment was approved in 1996 (Lot Line Adjustment No. 96-1) which combined Lot 3 with the northwesterly 10 feet of the southwesterly 58 feet of Lot 2, Block 30. This created a uniquely shaped lot where the southwesterly 58 feet of the lot has a lot width of 35 feet, while the northwesterly 32 feet of the lot has a lot width of 25 feet. 2. The Zoning Code defines lot width as the horizontal distance between the side lot lines, measured at right angles to the line that defines the lot depth at a point midway between the front and rear lot lines. Per the Zoning Code's definition, the lot width of the subject property is 35 feet, which requires a two -car garage to be 18 feet 6 inches in clear interior width despite the narrower lot width where the garage would logically be sited. 3. The subject lot is located on West Ocean Front, and abuts a boardwalk along the beach. Due to its location, a garage can only be constructed on the narrower northwesterly rear of the property that abuts the alley. As previously mentioned, the northwesterly 32 feet 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Page 6 of 12 of the lot that abuts the alley has a lot width of 25 feet, which limits the width of a structure on that portion of the lot. 4. A 25 -foot wide lot requires a two -car garage that is 17 feet 6 inches wide (interior clear). The proposed garage, which is located on the 25 -foot wide portion of the lot, is 18 feet wide (interior clear). The garage is proposed to be constructed at the maximum possible width while still maintaining the required 3 -foot side yard setbacks on each side. The garage proposes a depth of 21 feet 3 inches, where the Zoning Code requires 19 feet. Finding: E. The granting of the modification is necessary due to practical difficulties associated with the property and that the strict application of the Zoning Code results in physical hardships that are inconsistent with the purpose and intent of the Zoning Code. Facts in Support of Finding: 1. The strict application of the Zoning Code to construct a compliant garage will result in an excessive setback for the garage. The Zoning Code requires a 3 -foot side yard setback on both sides resulting in a maximum garage width of 19 feet (including exterior finishes) that can be constructed. A Code -compliant garage exceeds that width and therefore cannot be constructed in the northwesterly 25 -foot -wide portion of the lot. A Code -compliant garage can only be constructed on the portion of the lot where the lot width increases to 35 feet, which would result in an excessive setback of 32 feet for the garage from the rear property line, where the Zoning Code only requires a 5 -foot rear setback. 2. The strict application of the Zoning Code will result in a smaller buildable area due to the need for the garage to be located inside the center of the 35 -foot wide portion of the lot. Since the Zoning Code requires access to the garage directly from the adjoining alley, a large portion of the lot's buildable area would be required to be dedicated as a driveway for the Code -compliant garage. This would significantly impact the applicant's ability to construct a residence that is in parity with the surrounding development in terms of footprint and floor area. Finding: F. There are no alternatives to the modification permit that could provide similar benefits to the applicant with less potential detriment to surrounding owners and occupants, the neighborhood, or to the general public. Fact in Support of Finding: 1. The 25 -foot lot width at the northwesterly portion of the lot, combined with the required 3 -foot side yard setbacks, results in a situation where it is impossible to construct a Code -compliant garage without setting back the garage a minimum of 32 feet. This alternative does not provide similar benefits to the applicant, who is requesting to 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Page 7 of 12 construct an 18 -foot wide garage (interior clear), where the Zoning Code requires 18 feet 6 inches. The existing garage provides two usable garage spaces only slightly less than the required width and fulfills the intent of the Zoning Code by providing adequate parking on-site. Finding: G. The granting of the modification would not be detrimental to public health, safety, or welfare, to the occupants of the property, nearby properties, the neighborhood, or the City, or result in a change in density or intensity that would be inconsistent with the provisions of this Zoning Code. Facts in Support of Finding: 1. The garage on the existing development encroaches into both side yard setbacks and has not been proven to be detrimental to the occupants of the property or the neighborhood. The proposed garage would maintain all required setbacks and will provide adequate protection for light, air, and privacy. The new single-family residence, including the garage, will be consistent with the scale with other dwellings in the neighborhood. 2. The proposed garage is located on the 25 -foot wide portion of the uniquely -shaped lot. A typical 25 -foot wide lot requires an interior garage width of 17 feet 6 inches. The proposed garage exceeds that requirement and provides 18 feet of interior garage width. The proposed garage is adequate in width to park two vehicles and minimizes impacts to on -street parking in the neighborhood. 3. The existing development on the property is a single-family residence. Therefore, there is no change to the density as a result of the proposed new single-family residence. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Zoning Administrator of the City of Newport Beach hereby approves Coastal Development Permit No. CD2018-113 and Modification Permit MD2018-009, subject to the conditions set forth in Exhibit "A," which is attached hereto and incorporated by reference. 2. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal or call for review is filed with the Community Development Director in accordance with the provisions of Title 20 (Zoning Code) and Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code. Final action taken by the City may be appealed to the Coastal Commission in compliance with Section 21.64.035 of the City's certified LCP and Title 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Paqe 8 of 12 14 California Code of Regulations, Sections 13111 through 13120, and Section 30603 of the Coastal Act. PASSED, APPROVED, AND ADOPTED THIS 14TH DAY OF FEBRUARY, 2019. Patrick J. Alford, Zoning Administrator 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Paqe 9 of 12 EXHIBIT "A" CONDITIONS OF APPROVAL 1. The development shall be in substantial conformance with the approved site plan, floor plans, and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. Revisions to the approved plans may require an amendment to this Coastal Development Permit or the processing of a new Coastal Development Permit. 3. Coastal Development Permit No. CD2018-113 and Modification Permit No. MD2018-009 shall expire unless exercised within 24 months from the date of approval as specified in Section 21.54.060 (Time Limits and Extensions) of the Newport Beach Municipal Code, unless an extension is otherwise granted. 4. Prior to the issuance of a Certificate of Occupancy, an agreement in a form approved by the City Attorney between the property owner and the City shall be executed and recorded waiving rights to the construction of future shoreline protection devices to address the threat of damage or destruction from waves, erosion, storm conditions, landslides, seismic activity, bluff retreat, sea level rise, or other natural hazards that may affect the property, or development of the property, today or in the future. The agreement shall be binding against the property owners and successors and assigns. 5. Prior to the issuance of a building permit, the property owner shall submit a notarized signed letter acknowledging all hazards present at the site, assuming the risk of injury or damage from such hazards, unconditionally waiving any claims of damage against the City from such hazards, and to indemnify and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoeverwhich may arise from or in any manner relate (directly or indirectly) to City's approval of development. 6. No demolition or construction materials, equipment debris, or waste, shall be placed or stored in a location that would enter sensitive habitat, receiving waters, or a storm drain or result in impacts to environmentally sensitive habitat areas, streams, the beach, wetlands or their buffers. 7. This approval does not authorize any new or existing improvements (including landscaping) on State tidelands, public beaches, or the public right-of-way. 8. This Coastal Development Permit does not authorize any development seaward of the private property. 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Pape 10 of 12 9. Best Management Practices (BMP's) and Good Housekeeping Practices (GNP's) shall be implemented prior to and throughout the duration of construction activity. 10. The discharge of any hazardous materials into storm sewer systems or receiving waters shall be prohibited. Machinery and equipment shall be maintained and washed in confined areas specifically designed to control runoff. A designated fueling and vehicle maintenance area with appropriate berms and protection to prevent spillage shall be provided as far away from storm drain systems or receiving waters as possible. 11. Debris from demolition shall be removed from work areas each day and removed from the project site within 24 hours of the completion of the project. Stock piles and construction materials shall be covered, enclosed on all sites, not stored in contact with the soil, and located as far away as possible from drain inlets and any waterway. 12. Trash and debris shall be disposed in proper trash and recycling receptacles at the end of each construction day. Solid waste, including excess concrete, shall be disposed in adequate disposal facilities at a legal disposal site or recycled at a recycling facility. 13. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 14. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this Coastal Development Permit. 15. This Coastal Development Permit may be modified or revoked by the Zoning Administrator if determined that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 16. Prior to issuance of building permits, a copy of the Resolution, including conditions of approval Exhibit "A" shall be incorporated into the Building Division and field sets of plans. 17. Prior to the issuance of building permits, the applicant shall submit to the Planning Division an additional copy of the approved architectural plans for inclusion in the Coastal Development file. The plans shall be identical to those approved by all City departments for building permit issuance. The approved copy shall include architectural sheets only and shall be reduced in size to 11 inches by 17 inches. The plans shall accurately depict the elements approved by this Coastal Development Permit. 18. All existing encroachments into the West Ocean Front right-of-way shall be removed. 19. Prior to the issuance of building permits, the applicant shall submit a final construction erosion control plan. The plan shall be subject to the review and approval by the Building Division. 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Pape 11 of 12 20. Prior to the issuance of building permits, the applicant shall submit a final drainage and grading plan. The plan shall be subject to the review and approval by the Building Division. 21. Prior to the issuance of building permits, the applicant shall submit a final landscape and irrigation plan. These plans shall incorporate drought tolerant plantings, non-invasive plant species and water efficient irrigation design. The plans shall be approved by the Planning Division. 22. All landscape materials and irrigation systems shall be maintained in accordance with the approved landscape plan. All landscaped areas shall be maintained in a healthy and growing condition and shall receive regular pruning, fertilizing, mowing, and trimming. All landscaped areas shall be kept free of weeds and debris. All irrigation systems shall be kept operable, including adjustments, replacements, repairs, and cleaning as part of regular maintenance. 23. Each parking space within the garage shall be permanently available and maintained for parking purposes. The interior dimensions (18 feet wide by 21 feet 3 inches deep) shall be kept clear of obstructions including cabinets, laundry facilities, shelving, or similar that may impact the ability to adequately park two (2) vehicles. 24. The applicant is responsible for compliance with the Migratory Bird Treaty Act (MBTA). In compliance with the MBTA, grading, brush removal, building demolition, tree trimming, and similar construction activities shall occur between August 16 and January 31, outside of the peak nesting period. If such activities must occur inside the peak nesting season from February 1 to August 15, compliance with the following is required to prevent the taking of Native Birds pursuant to MBTA: A. The construction area shall be inspected for active nests. If birds are observed flying from a nest or sitting on a nest, it can be assumed that the nest is active. Construction activity within 300 feet of an active nest shall be delayed until the nest is no longer active. Continue to observe the nest until the chicks have left the nest and activity is no longer observed. When the nest is no longer active, construction activity can continue in the nest area. B. It is a violation of state and federal laws to kill or harm a native bird. To ensure compliance, consider hiring a biologist to assist with the survey for nesting birds and to determine when it is safe to commence construction activities. If an active nest is found, one or two shortfollow-up surveys will be necessary to check on the nest and determine when the nest is no longer active. 25. Prior to the issuance of building permit, the applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 26. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner, or the leasing agent. 01-03-17 Zoning Administrator Resolution No. ZA2019-019 Pape 12 of 12 27. This approval shall expire and become void unless exercised within 24 months from the actual date of review authority approval, except where an extension of time is approved in compliance with the provisions of Title 21 Planning and Zoning of the Newport Beach Municipal Code. 28. To the fullest extent permitted by law, applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to the City's approval of VanDaele Residence Coastal Development Permit and Modification Permit including, but not limited to, Coastal Development Permit No. CD2018-113 and Modification Permit No. MD2018-009 (PA2018-276). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. The applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. 01-03-17