26524 Strother Co 92CITY OF LA QUINTA
SUBDIVISION GUARANTEE AGREEMENT
THIS SUBDIVISION GUARANTEE AGREEMENT (the "Agreement") is made and entered into this
Aday of � VAIZ-Y , 19 qZ— , by and between Strother Companies, Inc., a
California Corporation hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal
corporation of the State of California, hereinafter referred to as "City."
RECITALS:
A. Subdivider has prepared and filed a final map (the "Tract Map") of a tract of land in the City of
La Quinta, County of Riverside, which tract is known as Tract No. 26524 (the "Tract") pursuant to the
provisions of Section 66410, et sec. of the California Government Code (the "Subdivision Map Act").
B. Subdivider has offered for dedication certain rights of way and easements within the Tract and
has prepared plans and specifications for improvements associated with the Tract (the "Improvement
Plans").
C. Prior to approval of the Tract Map, Subdivider is required to install or agree to install certain public
and private improvements (the "Improvements")
D. Subdivider has installed the Improvements and has met all obligations necessary for approval of
the Tract Map.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvement Guarantee. Subdivider hereby guarantees the Improvements to City for a period of
one (1) year, beginning on the date of final acceptance of the Improvements by the City Council, against
any defective work or labor done, or defective materials furnished, and shall repair or replace such defective
work or materials.
2. Improvement Securitv.
A. As a condition of City Council approval of the subdivision improvements, Subdivider shall
have furnished to City security, hereinafter referred to as "guarantee security," which shall serve as a
guarantee and warranty of the Improvements for a period of one year following acceptance of the
Improvements.
B. Subject to the approval of the City Engineer, security may be furnished in the form of (1) a
deposit of cash or negotiable bonds, of the kind approved for securing deposits of public moneys with City
or in favor of City, with a responsible escrow agent or trust company, (2) bonds satisfactory in form and
substance to the City Attorney and executed by a corporation authorized to transact surety business in the
State of California, (3) an instrument of credit from one or more financial institutions subject to regulation
by the state or federal government and pledging that the funds necessary to carry out the completion of
the Improvements are on deposit and guaranteed for payment, or a letter of credit issued by such a financial
institution. The duration of any such bond or instrument of credit shall be for a period of not less than one
year from the execution of the Agreement or such longer period for completion of the Improvements,
whichever is greater.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. City shall
retain warranty security for one (1) year, following acceptance or approval of the Improvements, to support
the guarantee of the Improvements. As part of the obligation secured by the guarantee security, and in
addition to the face amount of the security, the security shall include and assure the payment of costs and
Subdivision Guarantee Agreement - Tract 26524 Page I of 4
reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully
enforcing the obligations thereby secured.
3. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has
not been performed within sixty (60) days after written notice of default from City, then City may perform
the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of suit
and reasonable attorney's fees incurred by City in enforcing such obligation. In cases of emergency or
compelling public interest, as determined by the City Engineer, the requirement for written notice of default
and/or the passage of sixty (60) days shall be deemed waived and all other provisions of this Article shall
remain in effect.
4. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives,
executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold City
and its officers, employees, agents, representatives, and assigns harmless from and against any losses,
claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in any way
connected with Subdivider's performance hereinunder, including costs of suit and reasonable attorneys'
fees.
5. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Tentative Tract Map Conditions of Approval for the Tract. In the event that any
requirement or condition of this Agreement is inconsistent with provisions of the Tentative Tract Map
Conditions of Approval for the Tract, which document is incorporated herein by reference, the provisions
in the Tentative Tract Map Conditions of Approval shall prevail.
6. Severability. In the event that any provision or provisions of this Agreement are held
unenforceable, all provisions not so held shall remain in full force and effect.
7. General Provisions
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered
or sent by registered or certified mail, return receipt requested, to the parties at their respective addresses
indicated below their respective signatures. Notices personally delivered shall be effective upon delivery.
Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of delivery or
refusal indicated on the return receipt. Either party may change its address for notices hereunder by notice
to the other given in the manner provided in this subparagraph.
B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind
the heirs, executors, administrators, assigns, and successors of the parties hereto.
C. Neither party to this Agreement relies upon any warranty or representation not contained
in this Agreement.
D. This Agreement shall be governed by and interpreted with respect to the laws of the State
of California.
E. In the event of any dispute between the parties with respect to this Agreement, the
prevailing party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing
party.
F. Any failure or delay by either party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
Subdivision Guarantee Agreement - Tract 26524 Page 2 of 4
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
CITY OF LA QUINTA:
Ronald L. Kiedrowski
City Manager
AT
'City Clerk
ADDRESS:
By:
Title:
For Subdivider:
ETe
e- ,,-- - , C�,JT- 9z26o
On this 29th day of January 19 92 , before me, the undersigned, a Notary Public
for the State of California, did personally appear:
Charles R. Strother
and
as General Partner
as ,
representing LA QUINTA ORCHARDS PARTNERS
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed hereinabove.
Seal of Notary
M` v OFFICIAL SEAL
JUDI OLSEN
>� `")o NOTARY PUBLIC CALIFORNIA
^ RIVERSIDE COUNTY
+FOA My Comm Expires Nov 29. 1994
aktat�
Signature of otary
Print Name
Reviewed and Approved:
City Engi er Date
Subdivision Guarantee Agreement - Tract 26524 Page 3 of 4
Exhibit A
LIST OF IMPROVEMENTS AND SECURITY AMOUNTS
Improvements required to be constructed by Subdivider are complete. Required security is limited to
10% warranty security on completed improvements and 100% performance security on deferred
improvements.
Subdivider shall furnish securities for performance and warranty prior to the recordation of the final
map. The various completed improvements may be secured with a single instrument or separately.
The deferred improvement shall be secured with a separate instrument.
Improvements designated as "deferred" will be constructed by others at a later date as determined by
City. Security shall remain in place until such later date to guarantee Developer's payment for the cost
of the deferred improvements.
Completed Improvement Description Warranty Security
Grading $37,180
Off -site streets 16,888
Off -site street striping 196
On -site streets 60,523
Landscaping, perimeter wall & irrigation 8,960
Total Warranty Security: $123,747
Deferred Improvement Description Required Security
Median on 50th Avenue $45,000
Subdivision Guarantee Agreement - Tract 26524 Page 4 of 4
c'/ J'►�j1 Jg gti )"f�/'�it� J \r J' �1�V J�� J" ►ry V J" �v Jiti�s Jijiti J Jv V c�y0Rs v�jli v 0;
ins �o o Group DMh Insco D cT e
BOND NO: 229599S `
� AL PREMIUM: $1, 080.00 � INITIAL �
SUBJECT TO RENEWAL. s
SUBDIVISION IMPROVEMENTS
PERFORMANCE
BOND c
c
KNOW ALL MEN BY THESE PRESENTS:
C
That we, LA QUINTA ORCHARDS PARTNERS __ , as Principal, e,
and DEVELOPERS INSURANCE COMPANY, a corporation organized and doing business under and by virtue of the laws of the State
of California and duly licensed to conduct a general surety business in the State of California as Surety, are held and firmly bound unto
;06
12
v'
CITY OF LA QUINTA
as Obligee, in the sum of FORTY—FIVE THOUSAND---
($ 45,000,00 --------) Dollars, for which payment,
successors, jointly and severally firmly by these presents.
well and truly to be made, we bind ourselves, our heirs, executors and
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
WHEREAS, the above named Principal, as a condition of the filing of the final subdivision map of (Tract/Parcel) Map No. ,
26524
said agreement or agreements.
entered into an agreement or agreements with said Obligee to complete the improvements specified in
NOW THEREFORE, the condition of this obligation is such, that if the above Principal shall well and truly perform said agreement or
agreements during the original term thereof or of any extension of said term that may be granted by the Obligee with or without notice
to the Surety, this obligation shall be void, otherwise it shall remain in full force and effect.
IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said
Surety is hereto affixed and attested by its duly authorized Attorney -in -Fact at
California, this
21ST
"PRINCIPAL"
UPLAND
day of APRIL , 19 92 .
LA QUJNTA ORCHARDS FARTNERS
iar"les R. Strother, General Partner
"SURETY"
DEVELOPERS INSURANCE COMPANY
BY:
SUSAN C . MONTEON Attornev-in-Fact
333 Wilshire Ave.
Anaheim, CA 92801
(714) 999-1471
ORM DI113 (REV. 1/85)
s f
OUTSTANDING BOND REPORT
Name: Strother Companies (The Orchard)
Tract No. 26524
Date of Contract: January 29, 1992
Required Bond Amounts:
$123,747 - Warranty Security
$ 45,000 - Required Security
Dates of Bond Reductions:
Outstanding Bonds:
Amount: Bond No.
$123,747 223978S
$ 45,000 229599S
Date Cancelled/Released:
Released on 2/4/93