27835 TD Desert Development 94CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this
Z /14 day of ANX Y , 19 9V , by and between T.D.
Desert Development, Ltd., a Delaware Limited Partnership 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. 27835 (the "Tract") pursuant to the
provisions of Section 66410, et sec. of the California Government Code (the "Subdivision Map Act").
B. Prior to approval of the Tract Map, Subdivider is required to install or agree to install certain public
and private improvements (the "Improvements")
C. The requisite improvements have not been installed and accepted at this time.
D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of
the improvements as provided in Section 66462 of the Subdivision Map Act.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Revision of Plans. Subdivider shall, within thirty (30) days of City Council approval of the Tract
Map, complete final corrections and revisions to improvement plans and submit for approval original plans
meeting the requirements of the City Engineer.
2. Improvements. Subdivider shall construct the public and private street, drainage, utility,
landscaping, and other improvements required to be constructed or agreed to be constructed under this
Agreement as listed and described in the List of Improvements attached hereto as Exhibit "A" and
incorporated herein (the "Improvements"), and shall bear the full cost thereof. The methods, standards,
specifications, sequence, and scheduling of construction shall be as approved by the City Engineer.
3. Improvement Security.
A. As a condition of City Council approval of the Tract Map, Subdivider shall have furnished
performance and payment securities to City as a guarantee of the completion of the Improvements, as set
forth in Government Code Section 66499 et sec. One class of security to be provided by Subdivider,
hereinafter referred to as "performance security," shall assure the faithful performance of this Agreement
including payment of associated plan check and permit fees. A second class of security to be provided by
Subdivider, hereinafter referred to as "payment security," shall assure the payment of the cost of labor,
equipment and materials supplied to construct the Improvements. A third class of security to be provided
by Subdivider, hereinafter referred to as "guarantee security," shall serve as a guarantee and warranty of
the Improvements for a period of one year following the completion and 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 an agency of the state, federal, or local government
when any agency of the state, federal, or local government provides at least twenty percent (20%) of the
financing for the Improvements to be completed, or 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, and/or (4) a lien upon the Tract, created by contract between City and
Subdivider, if City finds that it would not be in the public interest tq require the installation of the
Improvements sooner that two (2) years after the recordation of the Tract ;'Map. The duration of any such
bond or letter 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; further provided that the
duration of such bond or letter of credit shall be extended to provide the performance security holdback
provided in Section 13 hereof.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. Separate
security shall be furnished for performance security and payment security. The amount of the performance
security shall equal One Hundred Percent (100 %) of the estimated cost of constructing the Improvements,
including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized
representative of the City Engineer. Payment security shall equal Fifty Percent (50%) of the amount of
performance security except as otherwise set forth in Exhibit A. City shall retain Ten Percent 0 0%) of the
performance security for one (1) year following acceptance or approval of the Improvements to support the
Subdivision Improvement Agreement - Tract 27835 Page 1 of 4
guarantee of the Improvements pursuant to Section 12 hereof. As part of the obligation secured by each
of the performance security, payment security and guarantee security, and in addition to the face amount
of each such security, each such security shall include and assure the payment of costs and reasonable
expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing the
obligations thereby secured.
A
D. Certain Improvements required herein may be deferred for construction by others at a later
date. Deferred improvements, if any, are identified in Exhibit A. Security furnished for deferred
improvements shall remain in place until the deferred improvements are constructed and costs are known
and shall guarantee the reimbursement by Developer of Developer's share of the cost of the deferred
improvements.
Upon written demand from City, Developer shall deposit cash with City in lieu of or in replacement of
securities guaranteeing deferred improvements.
4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits
required for that phase of work and pay all required fees. Work performed under a permit or permits shall
comply with all provisions of the required permits.
5. Off -site Imrrovements. When the construction of one or more of the Improvements required or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best
efforts to purchase such real property at a reasonable price. In the event that Subdivider is unsuccessful,
despite its best efforts, to acquire such real property at a reasonable price, Subdivider may request in
writing that City attempt to acquire such real property. City may, but is not required to, agree to attempt
to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivider shall enter a
separate written agreement therefor in a form acceptable to the City Attorney. Such agreement shall
provide that Subdivider will advance City One Hundred Fifty Percent (150%) of the appraised fair market
value of the real property, with any unexpended funds refunded to Subdivider and any additional funds
required for City's acquisition paid by Subdivider upon the conveyance of such real property to Subdivider.
In no event shall the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise
terminate Subdivider's obligation to construct the applicable Improvement pursuant to this Agreement or
the conditions to approval of the Tract Map.
6. Completion of Improvements. Subdivider shall begin construction of the Improvements within
ninety (90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later date, as determined by the City
Engineer as set forth in Exhibit A.
7. Force Majeure. In the event that Subdivider is unable to perform within the time limits herein due
to strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected
by such events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension
of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may
approve or deny the request or conditionally approve the extension with additions or revisions to the terms
and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish to City securities, similar in form and
substance to those required in Article 3 hereinabove, to cover the period of extension. The value of the
securities shall be sufficient to insure the performance of and payment for improvement work that remains
incomplete at the time of the extension, and to provide guarantee security on completed improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and
Section 13.20.100 of the City Subdivision Ordinance. Subdivider shall provide the City Engineer written
proof that the monuments have been set and evidence of payment and receipt thereof by the engineer or
surveyor setting of the monuments.
10. Approval of Improvements. At the completion of construction and prior to acceptance of the
improvements by the city, Subdivider shall submit a request for final approval by the city. The request shall
be accompanied by any required certifications from Subdivider's engineers or surveyors and any required
construction quality documentation not previously submitted.
Upon receipt of said request, the City Engineer or a duly authorized representative will review the
construction quality documentation and will inspect the Improvements. If the Improvements are determined
to be in accordance with applicable city standards and specifications, and as provided herein, the City
Engineer shall recommend approval of private improvements and acceptance of public improvements by the
City Council.
11. Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the plans depict
the actual Improvements constructed. When necessary revisions have been made, each separate sheet of
Subdivision Improvement Agreement - Tract 27835 Page 2 of 4
the plans shall be clearly marked with the words "As -Built" or "As -Constructed," the marking shall be
stamped by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to
practice in California, and the plans resubmitted to the City Engineer.
12. Improvement Guarantee. Subdivider hereby guarantees the improvements to City for a period of
one (1) year, beginning on the date of final acceptance of all tract 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.
13. Release of Security. City shall retain and release securities in accordance with the provisions of
Section 66499.7 of the Subdivision Map Act and of Section 3 of this agreement. Prior to the release of
payment security, the City Engineer may require Subdivider to provide a title report or other evidence
sufficient to show claims of lien, if any, that may affect the amount of payment security released.
14. 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.
15. 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.
16. 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.
17. 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.
18. 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 Improvement Agreement - Tract 27835 Page 3 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:
z /111�4
Tom Genovese
Acting City Manager
ATT T:
ty Clerk
SUBDIVIDER: T.D. Desert Development, Ltd.
By T.D. Desert Development
It's General Partner
By:-�
Title: Executive Vice President
By:
Title:
Approved as to Form:
Reviewed and Approve
ADDRESS:
Corp.,
Post Office Box 1132
La Ouinta, Ca. 92253
Date
5�/9 lf�t
Date
Subdivision Improvement Agreement - Tract 27835 Page 4 of 4
STATE OF CALIFORNIA )
ss.
COUNTY OF Riverside )
On May 2, 1994 , before me, T.aura TpmDl e ,
Namb, Titlb, e.g., al3ber,MthtV Public"
personally appeared Guy Balenci
Name(s) of Signer(s)
@ personally known tome --OR --
❑ proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are subscribed hereinabove and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on this
instrument the person(s), or .the entity upon behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal.
LAURA TEMPLE
r = COMM. #1006769 z �'
z a Notary Public -- California D
N
My Comm. Expires OCT 3,
RIVERSIDE COUNTY 1997
Signature of Notary
4
CAPACITY CLAIMED BY SIGNER:
❑ Individual
® CorporateOfficer(s): Guy Balencie Executive Vice President
Title(s)
❑ Partner(s) :
❑ Attorney -in -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
SIGNER IS REPRESENTING
® Limited, ❑ General
Partnership
T.D. Desert Development, LTD./By T.D. Desert Development Corp,
Name of Person(s) or Entity(ies) It's General Partner
ATTENTION NOTARY: Although the information requested below is OPTIONAL, it could prevent fraudulent
attachment of this certificate to another document.
Title or Type of Document
THIS CERTIFICATE
MUST BE ATTACHED Number of Pages
TO THE DOCUMENT Date of Document
DESCRIBED AT RIGHT: Signer(s) Other Than Named Above:
UlmCONTRACT BOND THE .ATNA CASUALTY AND SURETY COMPANY
(Miscellaneous — NOT Hartford, Connecticut 06115
Construction)
UM a CASUALTY
KNOW ALL MEN BY THESE PRESENTS, That we
T.D. Desert Development Limited Partnership
of Palm Desert, California , as Principal,
(hereinafter called PrincipaIX and THE ATNA CASUALTY AND SURETY COMPANY, a
corporation organized and existing under the laws of the State of Connecticut with its Home Of-
fice in the City of Hartford, Connecticut, as Surety, (hereinafter called Surety), are held and firmly
bound unto
The City of La Quinta,- California
of , as Obligee,
in the full and just sum of Six thousand five hundred and no/100ths --------------
(S 6, 500.00********) Dollars, lawful money of the United States of America, to be paid to the
said Obligee, successors or assigns;. for which payment, well and truly to be made, we bind our-
selves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by
these presents.
WHEREAS the Principal has entered, or is about to enter, into a written Agreement with the
Obligee for the club area road and parking lot of tentative tract number 27835
of Rancho La Quinta, if the final map does not record.
as is more specifically set forth in said Agreement, to which reference is hereby made.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the
Principal shall well and truly perform and carry out the covenants, terms, and conditions of said
Agreement, then this obligation to be void; otherwise to remain in full force and effect.
Sealed with our seals and dated this
8th day of November , 1993 -
(SEAL)
( Principal)
(SEAL)
THE TTCAS9JALTY AND SURETY COMPANY
ay '
George S Byars Attorney -in -Fact
CAT. "9687
(S-193S-8) 4-74 PRINTED IN U.S.A.
Labor and Materials Bond
Bond No.76S100864695BCA
WHEREAS, the City Council of the City of La Quinta, State of California, and
T. D. Desert Development, Ltd., a Delaware Limited Partnership, (hereinafter designated
as "Principal") have entered into an agreement whereby Principal agrees to install and
complete certain designated improvements, which said agreement, dated May 4, 1994, and
identified as Subdivision Improvement Agreement Tract No. 27835 is hereby referred to
and made a part hereof; and
WHEREAS, Said Principal is required under the terms of said agreement to
furnish a bond for the faithful performance of said agreement.
NOW THEREFORE, we, the Principal and The Aetna Casualty and Surety
Company, as Surety, are held and firmly bound unto the City of La Quinta (hereinafter
called "City"), in the penal sum of Seven Hundred Eighty -Four Thousand, Four Hundred
and No/100 Dollars ($784,400.00) lawful money of the United States, for the payment of
which sum well and truly to be made, we bind ourselves, our heirs, successors, executors
and administrators, jointly and severally, firmly by these presents.
The condition of this obligation is such that if the above bounded Principal, his
or its heirs, executors, administrators, successors or assigns, shall in all things stand to and
abide by, and well and truly keep and perform the covenants, conditions and provisions
in the said agreement and any alteration 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, then this obligation shall
become null and void; otherwise it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount
specified therefore, there shall be included costs and reasonable expenses and fees,
including reasonable attorney's fees, incurred by the City in successfully enforcing such
obligation, all to be taxed as costs and included in any judgement rendered.
The Surety hereby stipulates and agrees that no change, extension of time,
alteration or addition to the terms of the agreement or to the work to be performed
thereunder or the specifications accompanying the same shall in anywise affect its
obligations on this bond, and it does hereby waive notice of any such change, extension
of time, alteration or addition to the terms of the agreement or to the work or to the
specifications.
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal
and Surety above named, on May 4, 1994.
Performance Bond
Bond No.76S100864694BCA
WHEREAS, the City Council of the City of La Quinta, State of California, and
T. D. Desert Development, Ltd., a Delaware Limited Partnership, (hereinafter designated
as "Principal") have entered into an agreement whereby Principal agrees to install and
complete certain designated improvements, which said agreement, dated May 4, 1994, and
identified as Subdivision Improvement Agreement Tract No. 27835 is hereby referred to
and made a part hereof, and
WHEREAS, Said Principal is required under the terms of said agreement to
furnish a bond for the faithful performance of said agreement.
NOW THEREFORE, we, the Principal and The Aetna Casualty and Surety
Company, as Surety, are held and firmly bound unto the City of La Quinta (hereinafter
called "City"), in the penal sum of One Million, Five Hundred Seventy -One Thousand,
and Fifty and No/100 Dollars ($1,571,050.00) lawful money of the United States, for the
payment of which sum well and truly to be made, we bind ourselves, our heirs,
successors, executors and administrators, jointly and severally, firmly by these presents.
The condition of this obligation is such that if the above bounded Principal, his
or its heirs, executors, administrators, successors or assigns, shall in all things stand to and
abide by, and well and truly keep and perform the covenants, conditions and provisions
in the said agreement and any alteration 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, then this obligation shall
become null and void; otherwise it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount
specified therefore, there shall be included costs and reasonable expenses and fees,
including reasonable attorney's fees, incurred by the City in successfully enforcing such
obligation, all to be taxed as costs and included in any judgement rendered.
The Surety hereby stipulates and agrees that no change, extension of time,
alteration or addition to the terms of the agreement or to the work to be performed
thereunder or the specifications accompanying the same shall in anywise affect its
obligations on this bond, and it does hereby waive notice of any such change, extension
of time, alteration or addition to the terms of the agreement or to the work or to the
specifications.
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal
and Surety above named, on May 4, 1994.
OUTSTANDING BOND REPORT
Name: T.D. Desert Development, Ltd.
Tract No. 27835
Date of Contract: May 2, 1994
Required Bond Amounts:
$1,571,050 - Performance
$ 784,400 - Labor & Materials
Dates of Bond Reductions:
Outstanding Bonds:
Amount: Bond No.
$1,571,050 76S 100864694BCA
$ 784,400 76S100864695BCA
$ 6,500 Contract Bond for
club road/parking lot
Date Cancelled/Released: