28034 John Gogian 96CITY OF LA ,QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this
,�Z h c1 day of Q oe i L , 19 9 Co , by and between the
JOHN J. GOGIAN, JR. REVOCABLE TRUST OF 1983 DATED APRIL 18, 1983, 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 or parcel map (the "Map") of a unit of land in the City of
La Quinta, County of Riverside, which unit of land is known as Tract No. 28034 (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 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. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall
furnish original improvement 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 Exhibit "A" (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 Securiu.
A. One class of security to be provided by Subdivider, hereinafter referred to as "performance
security," shall assure the faithful performance of this Agreement including construction of required
improvements, payment of Subdivider's fair share of improvements deferred for construction by others
(deferred improvements), and payment of 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 "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.
Subdivider shall furnish performance and payment security prior to and as a condition of City Council approval
of the Map. Subdivider 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 or deferred improvements.
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 Section 66499.2 of the California Government Code,
issued by sureties listed in the U.S. Department of Treasury Circular 570 (latest version) which
lists institutions authorized to issue bonds in the State of California and the bonding limitations
of those institutions.
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 (C), pledging that the funds necessary to carry out the completion
Subdivision Improvement Agreement - Tract 28034 Page 1 of 5
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.
5► A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the improvements sooner that two (2) years after recordation of the
final map or parcel map for which the improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the improvements secured thereby and
shall include the power of sale of the real property, all buildings and improvements thereon, or
that may be erected upon or made thereto, together with all hereditaments and appurtenances
thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents,
issues, and profits thereof. The collateral value of the property shall be established at
Subdivider's expense through an appraisal approved by City.
6) 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, security may be .
7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in
Section 16430 of the California Government Code, deposited, at City's option, with City or a
responsible escrow agent or trust company.
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 time of submittal of security, Subdivider shall pay to City administrative fees applicable to the
form of security provided. Administrative fees shall apply to the subdivision (final map, parcel map or waiver
of parcel map) rather than to individual security instruments. The fees shall be paid separately for each
different form and/or source (surety or financial institution) of security initially submitted and for substitution
of securities but shall not be required for submittal of warranty security if the warranty security is of the same
form and from the same source as the performance security it replaces. Administrative fees for security shall
be as follows:
1) For certificates of deposit and letters of credit as described in Paragraphs (C) and (D) of
SECTION 1, for which establishment of evidence of reliability of the financial institution requires
City's membership in the Investment Data Exchange, the administrative fee shall be One
Hundred Fifty Dollars ($150.00).
2) For liens on real property as described in Paragraph (E) of SECTION 1, for which City will
prepare lien agreements and subordination agreements, administer valuation of the real property
and administer the agreements over the life of the lien, all of which require legal assistance and
financial advice, Subdivider shall pay to City an administration fee of One Half of One Percent
(0.5 %) of the estimated cost of the improvements secured but not less than Five Hundred
Dollars ($ 500.00) nor more than Five Thousand Dollars ($ 5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Certain Improvements required herein may be deferred for construction by others at a later date.
Deferred improvements, if any, are identified in Exhibit A. Deferred improvement security shall remain in place
until the deferred improvements are constructed and costs are known and shall guarantee the reimbursement
by Subdivider of Subdivider's share of the cost of the deferred improvements. Payment security and warranty
security shall not be required for improvements deferred for construction by others.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of
securities guaranteeing deferred improvements. If Subdivider fails to deposit said cash within 30 days of the
date of the written demand from City, City may present a written demand to Subdivider's Surety for payment
of said cash and Subdivider's Surety shall pay to City the lesser of: 1► the amount demanded, or 2) the amount
of the security.
F. Security shall be released in the following manner:
Subdivision Improvement Agreement - Tract 28034 Page 2 of 5
1) Performance security shall be released upon the final completion and acceptance or approval,
by the City Council, of all improvements required to be constructed by Subdivider subject to
the provisions of paragraph B.
2) The City Engineer may authorize partial reduction of performance security as work progresses,
upon application by Subdivider. 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) Deferred improvement security shall be released upon construction of the deferred
improvements and payment by Subdivider of Subdivider's share of the cost of the deferred
improvements. Subdivider may request, and City may approve or conditionally approve, release
of deferred improvement security prior to construction of the deferred improvements upon pre-
payment by Subdivider of the estimated cost of the deferred improvements.
4) 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 all
improvements required to be constructed by Subdivider. If City receives notice of any recorded
lien, the provisions of the Subdivision Map Act shall apply.
5) Warranty security not utilized during the warranty period shall normally be released one year
after final acceptance or approval by the City Council of all improvements required to be
constructed by Subdivider. 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, any remaining warranty security shall be retained until the outstanding
requests are satisfied or until Subdivider has made other arrangements satisfactory to the City
Engineer.
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 Improvements. 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 tentative map, parcel map or Map
conditions of approval (Conditions of Approval).
..
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 or 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 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 warranty 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 of
the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that the monuments
Subdivision Improvement Agreement - Tract 28034 Page 3 of 5
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.
10. Final Acceptance or Approval of Improvements. At the completion of construction and prior to
acceptance of the improvements by City, Subdivider shall submit a request for final approval by City. The
request shall be accompanied by any required certifications from Subdivider'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 of the subdivision, 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, and Subdivider has provided revised
plans as required in Paragraph 11, hereinafter, 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 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 resubmitted to the City Engineer.
12. Improvement Warranty. 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 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 Conditions of Approval. In the event that any requirement or condition of this Agreement is
inconsistent with or fails to include one or more provisions of the Conditions of Approval, which document(s)
is (are) incorporated herein by reference, the provisions in the Conditions of Approval shall remain in effect and
shall control.
17. SeverabilitX. 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
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.
Subdivision Improvement Agreement - Tract 28034 Page 4 of 5
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.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written
above.
CITY OF LA QUINTA:
ATT T:
y Clerk
SUBDIVIDER: John j. Gogian, jr.
Rrevocable Trust of 1983
By:
Titl(
By:
Title:
Reviewed and Approved:
City Engineer
Approved as to Form:
City Attorney
ADDRESS:
("�X ""'. . ,,
Tom Genovese
City Manager
ADDRESS:
78-495 Calle Tampico
La Quinta, CA 92253
,¢,sic 2, I g9,6
Date
!ylamo
Date
Subdivision Improvement Agreement - Tract 28034 Page 5 of 5
Exhibit A
LIST OF IMPROVEMENTS AND SECURITY AMOUNTS - TRACT 28034
Except as otherwise provided herein, Subdivider shall furnish performance security and payment security prior
to City Council approval of the Map.
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 as guarantee of Subdivider's payment for the cost of the
deferred improvements.
Improvement Description
Off -site Streets (deferred)
Traffic Signal at Madison & Ave 58 (deferred)
Totals:
Performance Payment
$95,000 $0
7, = _— 0
$102,200 S0
STATE OF CALIFORNIA 1
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COUNTY OF
before me, C 1 t4 / -
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personally appeared l_ K=Lel I V
Name(s) of Signer(s)
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❑ proved to me on the basis of satisfactory evidence to be the
person(s) whose name)(isare subscribed to the within instrument
and acknowledged to me that�qsheAhey executed the same in
his/her/their authorized capacity(ies), and that by(hishe A4eir
signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal.
iarSatdre -oTNotary
OPTIONAL
Though the data below are not required by law, the information may prove valuable to persons relying on the
document and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER:
❑ Individual
❑ Corporate Officer:
Title(s)
❑ Partner(s): ❑ Limited
❑ General
Attorney -in -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Docurhent
Cx4y-ee w.ev`'r
Number of Pages
Date of Document
SIGNER IS REPRESENTING SIGNERS
Name of Person(s) or Entity(ies) (Other than named above)
4m@
BOND NO: 415869S
S;Sclilco INITIAL PREMIUM: $2,044.00
C�G30MG�
SUBJECT TO RENEWAL.
SUBDIVISION IMPROVEMENTS
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
That we, JOHN J. GOGIAN2 JR. REVOCABLE TRUST OF 1983 DATED APRIL 18 1983 , as Principal,
and DEVELOPERS INSURANCE COMPANY, a corporation organized and doing business under and by virtue of the laws of the State
of California and duly licensed to conduct a general surety business in the State of California as Surety, are held and firmly bound unto
CITY OF LA QUINTA
78495 CALLE TAMPICO
LA QUINTA, CA 92253
as Obliggee, in the sum of ONE HUNDRED TWO THOUSAND TWO HUNDRED AND NO/ 100------------------------
($ 1Ol, 200.00 ***** ) Dollars, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and
successors, jointly and severally firmly by these presents.
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. 28034 ,
entered into an agreement or agreements with said Obligee to complete the improvements specified in
said agreement or agreements.
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 1425 W. Foothill Blvd. 120, Upland
California, this
13th
"PRINCIPAL"
day of
MARCH 119 96
JOHN J. GOGIAN, JR. REVOCABLE TRUST
OF 1983 DATED APRIL 18 1983
"SURETY"
DEVELOPERS INSURANCE COMPANY
BY:
GREG OKURA, Attorney -in -Fact
17780 Fitch
Irvine, California 92714
(714) 263-3300
DI 113 Rev. 2/91
OUTSTANDING BOND REPORT
Name: South Valley Estates/John J. Gogian Jr. Revocable Trust
Tract No. 28034
Date of Contract: April 2, 1996
Required Bond Amounts:
Off -site Streets - $95,000 (performance only)
Signal at Madison/Ave 58 - $ 7,200 (same)
Dates of Bond Reductions:
Outstanding Bonds:
Amount: Bond No. Date Cancelled/Released•
$102,200 415869S