28019 Jim Dan D 99 CLOSED?CITY OF LA QUINTA
IMPROVEMENT AGREEMENT
Completion of TRACT 28019
THIS IMPROVEMENT AGREEMENT (the "Agreement') is made and entered into this
day of , 19 , by and between Jim Dan D., LLC, a California Limited
Liability Corporation hereinafte referred to as "Developer," and the City of La Quinta, a municipal corporation of
the State of California, hereinafter referred to as "City."
RECITALS:
A. Developer has purchased the remaining interest in a partially -developed unit of land in the City of La
Quinta, County of Riverside, which unit of land is known as Tract No. 28019 (the "Tract'), and intends to build
homes on the remaining lots within the Tract.
B. Prior to issuance of building permits, Developer is required to complete required infrastructure
improvements to the Tract (the "Improvements") or to enter into a secured agreement to complete the
Improvements.
C. Developer is now prepared to begin construction of homes and the Improvements have not been
completed.
D. It is therefore necessary that Developer and City enter into an agreement for completion of the
Improvements.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvements. Developer shall complete the Improvements as listed in Exhibit "A' , and shall bear the
full cost thereof. The methods, standards, specifications, sequence, and scheduling of construction shall be as
approved by the City Engineer.
2. Improvement Security.
A. One class of security to be provided by Developer, hereinafter referred to as "performance security,"
shall assure the faithful performance of this Agreement including completion of the Improvements and payment
of permit fees. A second class of security to be provided by Developer, hereinafter referred to as "payment
security," shall assure the payment of the cost of labor, equipment and materials supplied to complete the
Improvements. A third class of security to be provided by Developer, hereinafter referred to as 'warranty
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. Developer shall furnish performance and payment security
prior to and as a condition of the issuance of permits for construction of homes. Developer shall provide warranty
security after Improvements are complete and accepted by the City Council and prior to or concurrently with the
final release of performance security. Warranty security shall not be required for Monumentation. However, the
City may utilize Monumentation Security for performance of or payment for the work in accordance with the
Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty 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 City in successfully enforcing the obligations thereby secured.
B. Improvement security shall conform with Section 66499 of the California Government Code and
one or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government Code,
issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570 (latest version).
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3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or better and a
commitment reliability rating of "R-2" or better on the Investment Data Exchange (of the Los Angeles County
Treasurer's office).
4) Irrevocable letters of credit, issued by one or more financial institutions meeting the
requirements of Paragraph (3), pledging that the funds necessary to cant' out the completion of the Improvements
are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by
any creditor of the depositor until released by City. Letters of credit shall guarantee that all or any portion of the
funds available pursuant to the letters of credit will be paid upon the written demand of City and that such written
demand need not present documentation of any type as a condition of payment, including proof of loss. The
duration of any such letter of credit shall be for a period of not less than one year from the execution of the
agreement with which it is provided and shall state, on its face, that the letter of credit will be automatically
renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from
the financial institution of intent to allow expiration of the letter of credit.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. 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. The amount of Payment security shall equal the amount of the
amount of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate
security. Warranty security shall equal Ten Percent (10%) of the amount of performance security except as
otherwise set forth in Exhibit A.
D. At the time of submittal of security, Developer shall pay to City the administrative fee applicable to
the form of security provided. The administrative fee shall be as follows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial
institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00).
2) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including
non-payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated
in this Agreement, without express authorization from City unless the surety provides City with sixty (60) days
written notice by registered or certified mail, return receipt requested.
F. Security shall be released in the following manner:
1) Performance security shall be released upon the final completion and acceptance or approval,
by the City Council of the Improvements subject to the provisions of paragraph B.
2) The City Engineer may authorize partial reduction of performance security as work progresses,
upon application by Developer. However, no such reduction shall be for an amount less than Ten Percent (10%)
of the total performance security provided for the faithful performance of the act or work. In no event shall
security be reduced below that required to guarantee the completion of the act or work or obligation secured, plus
Ten Percent (10%). The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the Improvements. If City
receives notice of any recorded lien, the provisions of the Subdivision Map Act shall apply.
4) Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Tract Improvements. However, if at the end of the one-year
warranty period, there are one or more outstanding requests by City for performance of work or provision of
materials under the terms of the warranty, warranty security shall be retained until the outstanding requests are
satisfied or until Developer has made other arrangements satisfactory to the City Engineer.
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3. Permits Required. Prior to commencing any phase of work, Developer 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.
4. Completion of Improvements. Developer 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 or as set forth in
Exhibit A. Failure by Developer to begin or complete construction of the Improvements within the specified time
periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Developer
in default of this agreement, to revise improvement security requirements as necessary to ensure completion of
the improvements, and/or to require modifications in the standards or sequencing of the Improvements in
response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not
otherwise affect the validity of this agreement or Developer's obligations hereunder.
5. Force Majeure. In the event that Developer is unable to perform within the time limits herein due to
strikes, act of God, or other events beyond Developer's control, the time limits for obligations affected by such
events will be extended by the period of such events.
6. Time Extension. Developer 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, Developer shall furnish securities, similar in form and substance to those
required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be
sufficient to ensure the performance of and payment for Improvements that remain incomplete at the time of the
extension, and to provide warranty security on completed Improvements.
7. Survey Monuments. Before final approval of street improvements, Developer shall place survey
monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the
La Quinta Municipal Code. Developer shall provide the City Engineer written proof that the monuments have
been set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and
intersection monument tie -outs for monuments set in public streets.
8. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Developer shall submit a request for final approval by City. The request shall be
accompanied by any required certifications from Developer's engineers or surveyors, approval letters from other
agencies having jurisdiction over and approval authority for improvements required by this Agreement or the
Conditions of Approval, 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 required
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, obligations required by the Conditions of
Approval and this Agreement have been satisfied, and Developer has provided revised plans as required in
Paragraph 11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City
Council.
9. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer,
Developer 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 the plans shall
be clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," 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 shall be resubmitted to the City Engineer.
10. Improvement Warranty. Developer 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.
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11. Release of Security. City shall retain and release securities in accordance with the provisions of Section
3 of this agreement. Prior to the release of payment security, the City Engineer may require Developer 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. '
12. City Right to Cure. If Developer 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 Developer 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.
13. Indemnification. Developer 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
Developer's performance herein under, including costs of suit and reasonable attorneys' fees.
14. 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.
15. 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
hereon. 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.
/C-.:\Corel\WP\TRACTS\Agreements\28019agr.mnt
Page 4 of 5
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written
above.
CITY:
Thomas P. Genovese, City Manager Date
Developer:
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
Jim Dan D., LLC
9/6 World Development, Inc.
78-120 Calle Estado #104
La Quinta, CA 92253
760/771-5571
BY World D 5qlifornia Corporation,
Member A 9 By:
Title:
Se r nellenb, President Date
BY g
alma Homes, Inc. a California Corporation
ByeB 7—
Title:
Dan Arthofer, esident Date
RevZZG
Reviewed and Approved.
City Engineer
Approved as to Form:
City Attorney
Date
32 1
Date
C:\Corel\WP\TRACTS\Agreements\28019agr.mnt Page 5 of 5
Exhibit A
SECURITY
Except as otherwise provided herein, Developer shall fumish performance security and labor & materials security
prior to issuance of any building permits.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released
as specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Developer may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total performance
security and shall not reduce total performance security below the amount necessary to complete the
Improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be
evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting
forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after the Improvements are complete and accepted
by the City.
Improvement Description
Basin Improvements (incl. irrigation, landscaping, play
equipment, hardscape & evacuation pump & lines)
Block Wall (including new construction and repairs)
Repairs, Miscellaneous Work and Contingencies
Engineering (incl. plans, as-builts, grading & soils
certifications)
Monumentation
Totals:
Performance Labor & Materials
$145, 800 $145, 800
44,000
44,000
36,000
36,000
18,000
18,000
11.200 0
$255,000 $243,800
s
CALWORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of
County of
On before me:?,A J A— 97"014d,
Date ^ , . , , Nam and le of Officer (e.g., "Jane Doe, Notary Public")
personally appeared
Name(s) of Signer(SV
❑ personally known to me — OR — ❑ proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the within instrument
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 the instrument the person(s),
or the entity upon behalf of which the person(s) acted,
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#1098183 executed the instrument.
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NOT,%; }- MIXIC CALIFORNIA)
nIVAIDE COUNTY 0 WITNESS m Gorr,,,,: Exp. Ma �s 2000 y hand and official seal.
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Signature of Notary Publi
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Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
Fol
Individual
Corporate Officer
Title(s):
Partner — ❑ Limited ❑ General
Attorney -in -Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
RIGHT THUMBPRINT
OF SIGNER
Top .
Number of Pages:
Signer's Name:
Individual
Corporate Officer
Title(s):
Partner — ❑ Limited O General
Attorney -in -Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
01995 National Notary Association - 8236 Remmet Ave., P.O. Box 7184 - Canoga Park, CA 91309-7184 Prod. No. 5907 Reorder. Call Toll -Free 1-800-876-6827
'CAL' WORNiA ALL-PURPOSE ACKNOWLEDGMENT
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State of
County of
On 60/� before me
ate Name and tle of Officer (e.g., "Jane Doe, Notary Public")
personally appeared aA_1
Names) of Signer(s) '
U personally known to me — OR — 0 proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the within instrument
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 the instrument the person(s),
W"4F` QRANSQN
or the entity upon behalf of which the person(s) acted,
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executed the instrument.
0 NOTARY Pt1BLIC CALIFORNIA"
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r:`'2,r,,SIDE COUNTY
Car-,., € x.,?. May 19, 2000
WITNESS my hand and official seal.
ignature o Notary Public
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fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date:
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Capacity(ies) Claimed by Signer(s)
Signer's Name:
Individual
Corporate Officer
Title(s):
Partner — ❑ Limited 0 General
Attorney -in -Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
RIGHT THUMBPRINT
OF SIGNER
•• of s here
Signer's Name:
70
Number of Pages:
Individual
Corporate Officer
Title(s):
Partner — O Limited 0 General
Attorney -in -Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
01995 National Notary Association • 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 Prod. No. 5907 Reorder. Call Toll -Free 1-800-876-6827
12-21-99 09:07AM FROM FRONTIER PACIFIC INS TO 917603604799 P006/007
FRONTIER PACIFIC INSURANCE COMPANY
(A California Company)
10 l West Broadway, San Diego, California 921 01
WARRANTY BOND
BOND NO: SD00076533
PREMIUM: $ ,N A .
KNOWN BY ALL THESE PRESENT: That JIM DAN D.,LLC A CALIF.LTD NMMHWPacific Insurance
Company as surety, Is held and firmly bound into CITY OF LA QUINTA , a
CALIFORNIA Corporation, hereinafter referred to as Obligee, for payment of
which, well and truly; to be made, 'we hereby jointly' and severally bird ourselves, our heir, execultor,
administrators, successors and assigns due to the failure of , a
_ corporation, known herein as the supplier to honor- those conditions of
the warranties which may be issued.
The condition of the above obligation is such that,
1. Whereas, this bond shall apply only to the warranty agreement(s) issued by the supplier attached
hereto and future warranty agreements which must first be approved by the surety before being
covered by this bond,
2. Whereas, this bond shall be conditioned to the following:
A. This bond shall apply only to those [type of goods] goods sold or installed by the supplier and
such goods financed by the obligee for the ultimate use [description of ultimate use].
B. All claims must be reported to the surety for investigation prior to any action by the supplier
or obligee.
Supplier's and Obligee's obligations:
1. Supplier must furnish the surety a monthly report on all warranties issued. Such report is due no later
than the 1 Sth of the following month in which the warranties were issued.
2. The supplier shall pay the surety all premiums due on this bond.
Limits and terms of liability
1. The limit of this bond is FiGHTFF.N TT4o1isANp ONE HITNT)RFT) FT(THTY T)OLT,A S ANT) No 1 no
] DOLLARS ($18,180.00**) regardless of the number of times this bond is renewed
or the years In force. Further, regardless of the number of claims paid or reserved to be paid, the
total paid claiiins shall not exceed the amount herein.
2. Coverage is applicable only to those warranties attached to and made a part of this bond when
cxccuted or subsequently added on a rider to this bond.
3. Coverage under this bond shall cease with the earliest of the following events:
a. Ninety (90) days notice of cancellation by th
a surety. Su notice shall be by certified or
registered mail to the supplier' and the obi ee_
4 4a
mow_
78-495 CALLE TAMPICO — LA OUINTA, CALIFORNIA 92253 - (619) 777-7000
FAX (619) 777-7101
March 23, 1999
Jim Snellenberger, President
Jim Dan D LLC
78-120 Calle Estado # 104
La Quinta, CA 92253 M
RE: NORTH PERIMETER WALL AT TRACT 28019
Dear Mr. Snellenberger,
Receipt by the City of $2 000 wall satisfies your obligations for the wall under the Improvement
Agreement for completion o Tract 28019. The wall will be constructed at a later date by the
developer of the adjacent prope using, in part, the $20,000 as your share of the cost of the
shared improvement.
If you have any questions or comment" , please feel free to contact me at (760)777-7155.
Sincerely,
�hr` •
re um
Associate Engineer
R CEIPT City of La Quinta, 78-495 Calla Ta
- DATE
RECEIVED FROM
ADDRESS - -
co, P. O. Box 1504, La Quinta CA 92253
19
DOLLARS
j
OUTSTANDING BOND REPORT
Name: Jim Dan D, LLC
Tract No. 28019
Date of Contracts: January 5, 1999 (2)
Required Bond Amounts:
Basin Imp. - $145,800 / $145,800 - performance/labor materials
Block Wall - $ 44,000 / $ 44,000 - (same)
Repairs/Conting. - $ 36,000 / $ 36,000 -(same)
Engineering - $ 18,000 / $ 18,000 -(same
Monument - $ 11,200 - performance only
Dates of Bond Reductions:
- On 4/20/99, approval was given to allow replacement of perimeter wall bond with $20,000 cash.
- On 12/7/99, a reduction was approved reducing performance to warranty of $18,180; labor payment
to be released 3/7/2000; warranty to be released 12/7/2000 (no mention of block wall warranty of
$44,000, but after no response from department staff, the City Clerk authorized release of bond
amount of $243,000 which included the $44,000)
Outstanding Bonds:
Amount:
Bond No. Date Cancelled/Released:
$ 11,200
SD00076532 Released 5/4/2000
$ 243,800
SD00076533 Released 5/4/2000
$ 18,180
SD00076533
$ 20,000
CK#188393
(deposited 3/24/99)