28458-1 Advanced Dev. 99T4'!t 4 4 Q"
AGENDA CATEGORY:
BUSINESS SESSION:
COUNCIL/RDA MEETING DATE. -June 5, 2001
CONSENT CALENDAR:
ITEM TITLE: Acceptance of Improvements Associated STUDY SESSION:
with Tract 28458-1, Bella Vista
PUBLIC HEARING:
RECOMMENDATION:
Accept improvements to Tract 28458-1 and authorize staff to release security upon
receiving warranty security.
FISCAL IMPLICATIONS:
Acceptance of the improvements will impact the General Fund as follows:
Maintenance and street sweeping is estimated to be $791 annually.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Bella Vista subdivision is located north of Fred Waring Drive, east of Washington Street
and west of Adams Street (Attachment 1). All improvements are now complete and other
obligations of the Subdivision Improvement Agreement have been satisfied. Included as
Attachment 2 is a spreadsheet indicating security to be released after the City receives the
warranty security.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
Accept improvements to Tract 28458-1 and authorize staff to release security upon
receiving warranty security; or
2. Provide staff with alternative direction.
107
T. W WDEPRCOUNCILUW 1W10605c wPd
Respectfully submitted,
Chris A. Vogt
Public Works Director/City Engineer
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1. Vicinity Map
2. Security Outline
109
T.W WOEMCOUNC U200IWI0W5c v pd 0 ! } :..
PROD
SI7
VICINITY MAP
N.T.S.
ATTACHMENT
109
004
ATTACHMENT 2
TRACT 28458-1
Performance
Payment
Warranty
Improvement
Security
Security
Security
Grading
$32,167
$32,167
$3,217
Streets/Drainage
$317,657
$317,657
$31,766
Water
$130,374
$130,374
$13,037
Sewer
$104,456
$104,456
$10,446
Electrical
$90,860
$90,860
$9,086
Monuments
$16,225
$0
$0
$691,739
$675,514
$67,552
Fred Waring Median (Participatory) $67,760
Retain full amount of participatory improvement security until improvements are
constructed. Release performance security when warranty security is received.
Release payment security in 90 days (September 5,2001). Release warranty security
in one year (June 5, 2002).
T:\PWOEPT\COUNCIL\2001\010605c wPd
CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT 28458-1
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "A reement") is made and entered into this
Pp day of 1AA, '1909,
by and between Advanced Development Corp., 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 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. 28458-1 (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 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 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.
3. Improvement Security_.
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 the Improvements, payment of
Subdivider's fair share of Improvements which have been or will be constructed by others ("Participatory
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 Participatory Improvements. 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:
T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEM EN. TS\28458-1.wpd Page 1 of 6
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).
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 carry 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.
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 than 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 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.
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 the 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, 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 liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will
prepare lien agreements and subordination agreements, administer valuation of the real property and administer
T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28458-1.wpd Page 2 of 6
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. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory Improvements
shall remain in place until the Participatory Improvements are constructed and actual costs are known and paid
by Subdivider, or until Subdivider pays to City the estimated cost of the Participatory Improvements, and shall
guarantee the reimbursement by Subdivider of Subdivider's share of the cost of the Participatory Improvements.
Payment security and warranty security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of security
guaranteeing Participatory 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 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 notice requested.
G. 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 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) Participatory Improvement security shall be released upon payment by Subdivider of
Subdivider's share of the cost or estimated cost of the Participatory 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 the Improvements. 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 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 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 requires or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best efforts
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 in a form acceptable
to the City Attorney. Said separate agreement shall provide that Subdivider advance to City One Hundred Fifty
T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28458-1.wpd Page 3 of 6
Percent (150%) of the appraised fair market value of the real property. Any unexpended portion of said advance
shall be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be paid by
Subdivider to City upon the conveyance of said 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 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 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.
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 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 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, 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 Subdivider has provided revised plans as required in
Paragraph 11, hereinafter, the City Engineer shall recommend acceptance of the 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 shall be 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 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.
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.
T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28458-1.wpd Page 4 of 6
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
herein under, 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. 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
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.
T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28458-1.wpd Page 5 of 6
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
ATTEST:
Date
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
SUBDIVIDER: Advanced Development Corp.
78-615 Naples Drive
La Quinta, CA 92253
(760) 772-0222
Y
Date
Title:
By:
Date
Title:
ed and Approved:
pproved:
City Engineer
Approved as to Form: OICL'0��
City Attorney
Date
gh 112
Date
T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28458-1.wpd Page 6 of 6
Exhibit A
SECURITY - TRACT 28458-1
Except as otherwise provided herein, Subdivider shall furnish performance security and labor & materials security
prior to agendization of the Map for approval by the City Council.
Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory
Improvements shall remain in place indefinitely until called upon or released by City.
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, Subdivider 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 for the tract
and shall not reduce total performance security below the amount necessary to complete the Improvements plus
Ten Percent (10%). 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 for Water, Sewer and Electrical improvements is subject to release if authorized by the
appropriate utility authority. Otherwise, all labor & materials security shall remain in place until 90 days after all
required tract improvements are complete and accepted by the City Council.
Improvement Description
Performance
Labor & Materials
Grading
$32,167
$32,167
Streets & Storm Drainage
317,657
317,657
Fred Waring Median - Participatory
67,760
0
Domestic Water
130,374
130,374
Sanitary Sewer
104,456
104,456
Electrical
90,860
90,860
Monumentation
16,225
0
Totals:
$759,499
$675,514
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
ON March 5,1999, BEFORE ME, KIMBERLY ZIMMERMAN
PERSONALLY APPEARED ROGER SNELLENBERGER
Personally known to me me on he
-Basis of 4vieuu,)-to be the person($}
whose nameoo-is/al- subscribed to the within
instrument & acknowledged to me that he/sbkfth6oy
Executed the same in his/Wth*ir-signature(t�on the
instrument the persons(9 , or the entity upon behalf of
which the personated, executed the instrument. SEAL
WITNESS my hand and official seal.
Signature
KIMBERLY ZIMMEitMAN
Comr *sion # 1197387
z Notary Public - CaI'ifomiq
ldvedde County
sty Comm. B pkm Oct 1, =
ALL - PURPOSE ACKNOWLEDGEMENT
I
INSCO INSURANCE SERVICES, INC.
�1CO Underwriting Manager for:
Developers Surety and Indemnity Company
Indemnity Company of California
17780 Fitch, Suite 200 - Irvine, California 92614 - (949) 263-3300
MAINTENANCE BOND
Grading 814137S
BOND NO.:
Premium included in Performance Bond
KNOW ALL MEN BY THESE PRESENTS:
THAT we, ArlvanCPrl DPve 1 nn� mPnt Cnrn , as Principal,
and D P v P 1 o r e r S Surety andIndemnity Company , a corporation organized and doing business under
and by virtue of the laws of the State of o ►a and duly licensed to conduct surety
business in the State of California, as Surety, are held and firmly bound unto
City of La Qu i n to
as Obligee, in the sum of Three Thousand Two Hundred Seventeen Dollars & 00/100
($ -31.917.0Q**:: ) 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 entered into an agreement or agreements with said Obligee to:
Tract 28458-1 Bella Vista
WHEREAS, said agreement provided that Principal shall guarantee replacement and repair of improvements as described
therein for a period of one year following final acceptance of said improvements;
NOW, THEREFORE, if the above Principal shall indemnify the Obligee for all loss that Obligee may sustain by reason
of any defective materials or workmanship which become apparent during the period of one year from and after acceptance
of the said improvements by Obligee, then this obligation shall be void; otherwise to 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
this 21 st day of June 2001
YEAR
Advan ed Development Corp.
Principal
Developers Surety and Indemnity Co.
B
Diane M Nielsen Attomey-in-Fact
' ID-1201 (CA) (One Year Term) (REV. 3101) J
rnscINSCO INSURANCE SERVICES, INC.
�'�O Underwriting Manager for:
�pO�p Developers Surety and Indemnity Company
Indemnity Company of California
17780 Fitch, Suite 200 • Irvine, California 92614 - (949) 263-3300
MAINTENANCE BOND
Streets & Storm Drainage
BOND NO.: 81 41 3 8 S
Premium included in Performance Bond
KNOW ALL MEN BY THESE PRESENTS:
THAT we, Advanced Development Corp. , as Principal,
and -Developers Surety and Indemnity Co. a corporation organized and doing business under
and by virtue of the laws of the State of 101A►a and duly licensed to conduct surety
business in the State of California, as Surety, are held and firmly bound unto
City of La Qu i n to
as Obligee, in the sum of Thirty One Thousand Seven Hundred Sixty Six Dollars & 00/100
($ 31 , 766.00 * �) 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 entered into an agreement or agreements with said Obligee to:
Tract 28458 —1 Bella Vista
WHEREAS, said agreement provided that Principal shall guarantee replacement and repair of improvements as described
therein for a period of one year following final acceptance of said improvements;
NOW, THEREFORE, if the above Principal shall indemnify the Obligee for all loss that Obligee may sustain by reason
of any defective materials or workmanship which become apparent during the period of one year from and after acceptance
of the said improvements by Obligee, then this obligation shall be void; otherwise to 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
this 21 s t
day of June
Advanced Development Corp.
Principal
ID-1201 (CA) (One Year Term) (REV. 3/01)
2001
YEAR
Developers Surety and Indemnity Co.
BY(�::�CAI-Q Ca -a�
' a n e M Nielsen Attorney -in -Fact
CT 15C INSCO INSURANCE SERVICES, INC.
�'�O Underwriting Manager for:
�qO�p Developers Surety and Indemnity Company
Indemnity Company of California
17780 Fitch, Suite 200 - Irvine, California 92614 • (949) 263-3300
MAINTENANCE BOND
Domestic Water
KNOW ALL MEN BY THESE PRESENTS:
BOND NO.: 814140 S
Premium included in Performance Bond
THAT we, Advanced Development Corp. , as Principal,
and -Developers Surety and Indemnity Co. , a corporation organized and doing business under
and by virtue of the laws of the State of Iowa and duly licensed to conduct surety
business in the State of California, as Surety, are held and firmly bound unto
City of La Qu i n to
as Obligee, in the sum of Thirteen Thousand Thirty Seven Dollars F- 001100
($ 13, n 3.7. 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 entered into an agreement or agreements with said Obligee to:
Tract 28458-1 Bella Vista
WHEREAS, said agreement provided that Principal shall guarantee replacement and repair of improvements as described
therein for a period of one year following final acceptance of said improvements;
NOW, THEREFORE, if the above Principal shall indemnify the Obligee for all loss that Obligee may sustain by reason
of any defective materials or workmanship which become apparent during the period of one year from and after acceptance
of the said improvements by Obligee, then this obligation shall be void; otherwise to 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
this 21 s t day of June
Advanced Development Corp.
Principal
2001
YEAR
Developers Surety and Indemnity Co.
B
a n e M Nielsen Attorney -in -Fact
ID-1201 (CA) (One Year Term) (REV. 3/01)
C� INSCO INSURANCE SERVICES, INC.
FISO&CO Underwriting Manager for:
o o �p Developers Surety and Indemnity Company
Indemnity Company of California
17780 Fitch, Suite 200 • Irvine, California 92614 • (949) 263-3300
MAINTENANCE BOND
anitary bewer
KNOW ALL MEN BY THESE PRESENTS:
BOND NO.: 814141 s
Premium included in Performance Bond
THAT we, Advanced Development Corp_ as Principal,
and Developers Surety and I n d em n i t V C o . , a corporation organized and doing business under
and by virtue of the laws of the State of 1 nwa and duly licensed to conduct surety
business in the State of California, as Surety, are held and firmly bound unto
City of La Quinta
as Obligee, in the sum of
Ten Thousand Four Hundred Forty Six Dollars & 00/100
($ 1 (1 4 46 n n ;: ) 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 entered into an agreement or agreements with said Obligee to:
Tract 28458-1 Bella Vista
WHEREAS, said agreement provided that Principal shall guarantee replacement and repair of improvements as described
therein for a period of one year following final acceptance of said improvements;
NOW, THEREFORE, if the above Principal shall indemnify the Obligee for all loss that Obligee may sustain by reason
of any defective materials or workmanship which become apparent during the period of one year from and after acceptance
of the said improvements by Obligee, then this obligation shall be void; otherwise to 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
this
21 st day of June 2001
Advanced Development Corp.
/rincipal
YEAR
Developers Surety and Indemnity Co.
X ��-) L44V fn n (
n e M Nielsen Attorney -in -Fact
ID-1201 (CA) (One Year Term) (REV. 3/01)
CTM9 INSCO INSURANCE SERVICES, INC.
� �'O Underwriting Manager for:
�pO�p Developers Surety and Indemnity Company
Indemnity Company of California
17780 Fitch, Suite 200 - Irvine, California 92614 - (949) 263-3300
MAINTENANCE BOND
Electrical
KNOW ALL MEN BY THESE PRESENTS:
BOND NO.: 814142 S
Premium included in Performance Bond
THAT we, Advanced Development Corp_ , as Principal,
and D e ve I n ne r s S u r e t y and I n d emn i t v r o w , a corporation organized and doing business under
and by virtue of the laws of the State of I nwn and duly licensed to conduct surety
business in the State of California, as Surety, are held and firmly bound unto
City of La Qu i nta
as Obligee, in the sum of
Nine Thousand Eighty Six Dollars g 00/100
($ ) 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 entered into an agreement or agreements with said Obligee to:
Tract 28458-1 Bella Vista
WHEREAS, said agreement provided that Principal shall guarantee replacement and repair of improvements as described
therein for a period of one year following final acceptance of said improvements;
NOW, THEREFORE, if the above Principal shall indemnify the Obligee for all loss that Obligee may sustain by reason
of any defective materials or workmanship which become apparent during the period of one year from and after acceptance
of the said improvements by Obligee, then this obligation shall be void; otherwise to 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
this 21 s t day of June
Advanced Development Corp.
Principal
2001
YEAR
Developers Surety and Igdemnity Co.
B� m
Diane M Nielsen Attorney -in -Fact
ID-1201 (CA) (One Year Term) (REV. 3/01)
OUTSTANDING BOND REPORT
Name: Advanced Development Corporation
Tract No. 28458-1
Date of Contract: March 3, 1999
Required Bond Amounts:
Grading
$ 32,167
performance/labor materials
Streets/Drainage
$317,657
same
Fred Waring Median
$ 67,760
performance only
Water
$130,374
performance/labor materials
Sewer
$ 104,456
same
Electrical
$ 90,860
same
Monumentation
$ 16,225
performance only
Dates of Bond Reductions:
Performance security reduced to warranty on 6/5/01.
Outstanding Bonds:
Amount:
Bond No.
Date Cancelled/Released:
$ 32,167
814137S
Replaced 7/18/01
$ 3,217
same
$ 32,167
same
$317,657
814138S
Replaced 7/18/01
$ 31,766
same
$317,657
same
$ 67,760
814139S
$130,374
814140S
Replaced 7/18/01
$ 13,037
same
$130,374
same
$104,456
814141 S
Replaced 7/18/01
$ 10,446
same
$104,456
same
$ 90,860
814142S
Replaced 7/18/01
$ 9,086
same
$ 90,860
same
$ 16,225
814143S
Released 7/18/01
$ 30,000 (PM10)
513529S
Released 6/18/01
SETTLEMENT AGREEMENT AND RELEASE
This Settlement Agreement and Release (hereinafter the "Agreement") is entered by and
between the CITY OF LA QUINTA, a public entity ("City") and both the EXCHANGE
GROUP, INC., a California Corporation and ROGER SNELLENBERGER DEVELOPMENT
CORP., a California Corporation (which was formally known as Advanced Development Corp.,
a California corporation) (collectively referred to as "Snellenberger") (all entities collectively
referred to as the "Parties") with reference to the following facts:
Definitions
The following definitions shall apply to this Agreement:
A. "Snellenberger" The term "Snellenberger" as used hereinafter, shall collectively
mean and refer to The Exchange Group, Inc. and Roger Snellenberger Development Corp., and
to their employees, successors, assigns, shareholders, officers, directors, partners, trustees,
members, agents and attorneys.
B. "City." The term "City" as used hereinafter, shall mean and refer to the City of
La Quinta, the City Council of the City of La Quinta, and shall also include, without limitation,
its employees, officials, employees, agents and attorneys.
C. "Party." The term "Party" as used hereinafter, shall mean an individual and
inclusive reference to each of City and Snellenberger.
Recitals
A. On May 21, 1997, the City approved the Subdivision Improvement Agreement
("SIA") for Bella Vista for Tract 28457-1. On March 3, 1999, the City approved the SIA for
Bella Vista for Tract 28458-1. Tract 28457-1 and 28458-1 are collectively referred to as "Bella
Vista." Bella Vista is located on the north side of Fred Waring Drive east of Washington Street.
The City and Snellenberger are parties to certain claims that arose out of the Bella Vista SIAs.
Snellenberger, as developer of Bella Vista, is responsible for the design and construction of a
portion of the landscaped median improvements that has been partially constructed under a City
Public Works project known as the "Fred Waring Drive Median Landscape Improvements." The
City now proposes to complete the Fred Waring Drive Median Landscape Improvements. The
Parties disagree over the amount to be paid by Snellenberger.
B. By this Agreement, City and Snellenberger intend and desire to avoid the expense
and uncertainty of litigation relating to City's claims and to settle all claims arising from the
SIAs.
Terms of Settlement
NOW THEREFORE, in consideration of the mutual covenants set forth herein, the
Parties agree as follows:
290/015610-0113
108996Z01 a08n0/12
1. Obligations of Snellenberger.
After execution of this Agreement by all parties but no later than September 28, 2012,
Snellenberger shall pay a total of $100,000 to City by a check made payable to "City of La
Quinta" and delivered to the Finance Department at City Hall. This sum constitutes payment in
full for all claims by City arising out of the SIAs for Tracts 28457-1 and 28458-1.
2. Obligations of City.
Upon receipt of the payment referenced in Section 1 of this Agreement, City shall release
Bond Nos. 439933S and 814139S.
3. No Admission of Fault.
This Agreement is a compromise and settlement of disputed claims. Nothing in this
Agreement shall be interpreted, used, or construed as an admission of fault or wrongful conduct
of any kind by any of the Parties.
4. Release.
In consideration for the agreements as set forth herein, Snellenberger and the City, on
behalf of themselves and their owners, heirs, successors, assigns, insurers, sureties, lenders, lien
holders, attorneys, agents, and other representatives do hereby release each other from any and
all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty,
claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including
attorneys' fees, of any nature whatsoever, known or unknown, fixed or contingent, arising out of,
based upon or relating to the Bella Vista SIAs.
(b) Waiver of Civil Code Section 1542: By releasing and forever discharging claims
both known and unknown as above provided, Snellenberger and the City expressly waive any
rights under California Civil Code section 1542, which provides:
"A GENERAL RELEASE DOES NOT EXTEND TO
CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE WHICH IF KNOWN BY HIM
MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR."
The Parties waive and relinquish any rights and benefits which they have or may have
under section 1542 of the Civil Code of the State of California. The Parties have performed a
full and complete investigation of the facts pertaining to the settlement. Nevertheless, the Parties
acknowledge that they are aware that they may hereafter discover facts in addition to or different
from those which they now know or believe to be true with respect to the subject matter of this
Release, but it is their intention hereby to fully and finally forever settle and release any and all
matters, disputes and differences, known or unknown, suspected and unsuspected, which now
exist, may exist or heretofore have existed, as against each other, arising out of the Bella Vista
SIAs and, in furtherance of this intention, the release herein given shall be and remain in effect
290/015610-0113
1089967.01 a09/20/12 -2-
as a full and complete general release notwithstanding discovery or existence of any such
additional or different facts.
5. Entire Agreement.
This Agreement sets forth the entire agreement of the Parties and supersedes any and all
prior agreements or understandings, if any, between them pertaining to the subject matter hereof,
and shall not be modified or altered except by a subsequent written agreement signed by the
parties. This Agreement shall be binding upon and inure to the benefit of the Parties, their
respective representatives, shareholders, officers, directors, employees, affiliates, successors,
heirs and assigns.
6. Warranty.
The Parties hereby expressly warrant and represent that they have not transferred or
assigned or attempted to transfer or assign any of the claims released hereunder. The persons
signing this Agreement hereby warrant that they have the power and authority to bind any party
on whose behalf this Agreement is signed.
7. Controlling Law.
This Agreement shall be interpreted and construed in accordance with the law of the State
of California.
8. Attorneys' Fees and Costs.
The Parties shall bear all of their own respective costs and attorneys' fees incurred
relating to the Action.
9. Severability
If any provision and/or part of this Agreement is held, determined, or adjudicated to be
invalid, unenforceable or void for any reason, each such provision shall be severed from the
remaining provisions of the Agreement and shall not affect the validity and enforceability of
such remaining provisions.
10. Counterparts.
This Agreement may be executed in counterparts and by facsimile or other electronic
delivery.
11. Review of Agreement.
The Parties each acknowledge and represent that they have read this Agreement, have
had the opportunity to consult with their respective attorneys concerning its contents and
consequences, that the Agreement is being executed solely in reliance on their respective
judgment, belief and knowledge of the matters set forth herein and on the advice of their
respective attorneys.
2%/0156IM113
108M7.01 aoxnonz -3-
12. Neutral Interpretation.
The Parties agree that all parts of this Agreement shall in all cases be construed as a
whole according to their fair meaning and shall not be construed strictly for or against any party
hereto.
13. Modification.
This Agreement shall not be modified, amended or supplemented unless such
modifications, amendments or supplements are in writing and signed by each party to this
Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth
below.
Date: 1, 2012 CITY OT LA QIDT��% 'eU,
Manager
Date: 9'W 2012
THE EXCHANGE GROUP, INC.
,
By:
Its:
ROGER SNELLENBERGER
Date: �� �� , 2012 DEVELOPMENT CORP.
By:
Its: s
Date: ! ' `l '2012 APPROVE S TO FO
By:
— //-\,
Kath rive Jenson, ' Attorney
290/015610-0113
1089967.01 .08/20/12 -4-