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encroachment permit. The Public Works Agency shall provide to the Owner an update to the 2004 estimate of the costs such offsite mitigations measures contained in said Exhibit C-1 prior to issuance of final map and building permit. Owner shall have one year from the effective date of this Agreement pursuant to section 1.6, above, to acquire the real property referenced in paragraph 5.a. and 8 of Exhibit C-1 and transfer title to the City, except as to the roundabout, for which Owner shall secure and transfer to City an easement (or other right to construct, maintain and use the property as a roundabout). City shall accept transfer of this title and easement. Owner shall deposit an amount equal to the estimate in cash for such offsite mitigation measures (including traffic studies) at the time called for in paragraphs 5.a., 8 and 9 of Exhibit C-1. For all other items specified in Exhibit C-1, security in the form of bonds (i.e., a payment, a performance and a material bond) or other proof of ability to perform acceptable to the City's Executive Director of Public Works Agency shall be provided, together with an offsite subdivision improvement agreement, prior to recordation of final map. For those offsite mitigation measures identified in paragraphs 1-4, 5.b.-8 and 10 which have not been accepted by the City as complete prior to issuance of a building permit, no building permit shall issue until Owner deposits with the City cash; a direct draw, irrevocable letter of credit; or establishes an irrevocable, escrowed cash account or escrowed construction loan or funding proceeds in a form reasonably acceptable to the City Attorney of City, in an amount specified by the City's Public Works Agency to guarantee performance of said offsite mitigation measures; provided, however, that City Executive Director of Public Works Agency shall release or partially release the bonds previously provided at this point to the extent that they are duplicative of this new security. Any deposit shall be applied to such costs and shall be, within thirty (30) days written request to Owner, supplemented to cover the actual costs incurred. Except as to paragraph 9 of Exhibit C-1, City shall return any funds not spent on the offsite mitigation measures referenced in Exhibit C-1 to owner within thirty (30) days, subject to City accounting practices, after completion of all items referenced in Exhibit C-1 and issuance of a Certificate of Occupancy for the Project. 4. Sections 5.8 shall be deleted its entirety. 5. Section 5.8.1 shall be amended to read as follows 5.8.1. Payment Of Prevailing Wage. a. For the provision of the payment of "Prevailing" and/or "Area Standard Wages" as appropriate, the Owner shall submit evidence that it has entered into a labor agreement with the Los Angeles and Orange Counties Building and Construction Trades Council. Said agreement shall also include provisions that encourage the referral and utilization, to the extent permitted by law, of qualified residents of Santa Ana and surrounding communities as journeymen, apprentices and trainees. An executed copy of the agreement shall be submitted to the City prior to the issuance of building permits. b. Owner and/or its contractors must (1) post all available job openings with the Santa Ana Work Center and Cal JOBS (or equivalent job posting Ordinance No. NS-2806 Page 6 of 11