28912 TD Desert Development 99CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT 28012
t
THIS !J!
DIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into thiS42zf day
of 1999, by and between T. D. Desert Development Limited Partnership, a Delaware
Limited P rtnership, hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of
the State of California, hereinafter referred to as "City."
RECITALS:
A. Subdivider has prepared and filed a final map (the ":Map") of a unit of land in the City of La Quinta, County
of Riverside, which unit of land is known as Tract 28912 (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 require6to 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. 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 Securitx.
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 flees. 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
per''ormance and payment security per the security schedule identified on Exhibit A attached hereto and made a
part hereof. 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 they 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, including engineering design if the improvement plans were
not complete at the time this agreement was made.
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.
T. D. Desert Development Limited Partnership — Tract 28912 Page 1 of 6
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 orn
of Paragraph (3), pledging that the funds necessary to carry
guaranteed for payment, and constitute a trust fund which
the depositor until released by City. Letters of credit shall
pursuant to the letters of credit will be paid upon the written
present documentation of any type as a condition of paym
letter of credit shall be for a period of not less than one ye.
provided and shall state, on its face, that the letter of credit
authorizes its expiration or until sixty (60) days after City n
allow expiration of the letter of credit.
5) A lien upon the subdivided property, if
require the installation of the Improvements sooner than tw,
map for which the Improvements are required. The lien
estimated cost of the Improvements and shall include the
improvements thereon, or that may be erected upon or
appurtenances thereunto belonging, or in any wise appertai
and profits thereof. The collateral value of the property sh
appraisal approved by City.
6) An instrument of credit from an agent
agency of the state, federal, or local government provides
Improvements.
7) When Subdivider is a non-profit organ
approved for securing deposits of public moneys with City
California Government Code, deposited, at City's option, wi
C. All securities shall be furnished in accordant
performance security shall equal One Hundred Percent
Improvements, including payment of plan check and pern
authorized representative of the City Engineer. The amou
amount of performance security, except as otherwise set fc
security. Warranty security shall equal Ten Percent (100)
otherwise set forth in Exhibit A.
or more financial institutions meeting the requirements
ut the completion of the Improvements are on deposit,
s not subject to levy or attachment by any creditor of
uarantee that all or any portion of the funds available
emand of City and that such written demand need not
!nt, including proof of loss. The duration of any such
from the execution of the agreement with which it is
/ill be automatically renewed until such time that City
:eives notice from the financial institution of intent to
,ity finds that it would not be in the public interest to
(2) years after recordation of the final map or parcel
hall provide a collateral value of three (3) times the
power of sale of the real property, all buildings and
made thereto, together with all hereditaments and
ling, and the reservations, remainders, rents, issues,
II be established at Subdivider's expense through an
of the state, federal or local government, when any
t least Twenty Percent (20%) of the financing for the
ition, security may be negotiable bonds, of the kind
in favor of City, as specified in Section-16430 of the
City or a responsible escrow agent or trust company.
with the provisions of Exhibit A. The amount of the
(100%) of the estimated cost of constructing the
it fees, as estimated by the City Engineer or a duly
it of Payment security shall equal the amount of the
rth in Exhibit A, and shall be furnished as a separate
i) of the amount of performance security except as
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. T e fees shall be paid separately for each different form
and/or source (surety or financial institution) of security initial y 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. Administra Jve fees for security shall be as follows:
1) For certificates of deposit, bonds and IE
of SECTION 3.B., which require the establishment of evidi
the administrative fee shall be One Hundred Fifty Dollars
2) For liens on real property as described
prepare lien agreements and subordination agreements, a(
the agreements over the life of the lien, all of which require I
pay to City an administration fee of One Half of One Perci
secured but not less than Five Hundred Dollars ($500.00)
.rs of credit as described in Paragraphs 2), 3) and 4)
:e of the reliability of the surety or financial institution,
150.00).
n Paragraph 5) of SECTION 3.B., for which City will
minister valuation of the real property and administer
gal assistance and financial advice, Subdivider shall
nt (0.5%) of the estimated cost of the improvements
or more than Five Thousand Dollars ($5,000.00).
T. D. Desert Development Limited Partnership — Tract 28912 Page 2 of 6
3) For other forms of security listed in
E. Participatory Improvements, if any, are identifi
shall remain in place until the Participatory Improvements
by Subdivider, or until Subdivider pays to City the estimat
guarantee the reimbursement by Subdivider of Subdivider';
Payment security and warranty security shall not be require
Upon written demand from City, Subdivider shall deposit
guaranteeing Participatory Improvements. If Subdivider fail;
written demand from City, City may present a written deman
Subdivider's Surety shall pay to City the lesser of: 1) the a
F. Security shall not expire, be reduced or bec(
non-payment of premiums, modifications of this Agreeme
in this Agreement, without express authorization from Cit
written notice by registered or certified mail, return receipt
ion 3 B, above, there will be no administrative fee.
I in Exhibit A. Security for Participatory Improvements
Ire constructed and actual costs are known and paid
d cost of the Participatory Improvements, and shall
share of the cost of the Participatory Improvements.
i for Participatory Improvements.
cash with City in lieu of or in replacement of security
to deposit said cash within 30 days of the date of the
to Subdivider's Surety for payment of said cash and
count demanded, or 2) the amount of the security.
Ie wholly or partially invalid for any reason, including
and/or expiration of the time for performance stated
unless the surety provides City with sixty (60) days
(quested.
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 pro isions of paragraph B.
2) The City Engineer may authorize partial
upon application by Subdivider. However, no such reductio
of the total performance security provided for the faithful pei
be reduced below that required to guarantee the complet
Percent (10%). The City Engineer shall not allow more th
improvement agreement.
Auction of performance security as work progresses,
shall be for an amount less than Ten Percent (10%)
)rmance of the act or work. In no event shall security
in of the act or work or obligation secured, plus Ten
n two partial reductions of security furnished for any
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
released in full 90 days after final acceptance and/or appr
receives notice of any recorded lien, the provisions of the
5) Warranty security not utilized during the
acceptance or approval by the City Council of all Tract Im
warranty period, there are one or more outstanding requ(
materials under the terms of the warranty, warranty securit
satisfied or until Subdivider has made other arrangements
4. Permits Required. Prior to commencing any p
for that phase of work and pay all required fees. Work
provisions of the required permits.
5. Off -site Improvements. When the construction
necessitates the acquisition of real property not owned by 9
purchase such real property at a reasonable price. In the e
efforts, to acquire such real property at a reasonable price,
acquire such real property. City may, but is not required to, a
of Subdivider. If City so agrees, City and Subdivider shall er
to the City Attorney. Said separate agreement shall provid
Percent (150%) of the appraised fair market value of the rec,
shall be refunded to Subdivider. Any additional funds requir,
Subdivider to City upon the conveyance of said real prol
Subdivider or City to acquire such real property excuse, wz
construct the applicable improvement pursuant to this Agre
ims of lien, labor and materials security shall be
I by the City Council, of the Improvements. If City
division Map Act shall apply.
nrarranty period shall be released one year after final
)rovements. However, if at the end of the one-year
sts by City for performance of work or provision of
r shall be retained until the outstanding requests are
,atisfactory to the City Engineer.
of work, Subdivider shall obtain all permits required
-med under a permit or permits shall comply with all
of one or more of the Improvements requires or
abdivider or City, Subdivider shall use its best efforts
vent that Subdivider is unsuccessful, despite its best
Subdivider may request in writing that City attempt to
3ree to attempt to acquire such real property on behalf
;er a separate written agreement in a form acceptable
that Subdivider advance to City One Hundred Fifty
I property. Any unexpended portion of said advance
Id for acquisition of the real property shall be paid by
erty to Subdivider. In no event shall the failure of
Ive, or otherwise terminate Subdivider's obligation to
�.ment or the Conditions of Approval.
T. D. Desert Development Limited Partnership — Tract 28912 Page 3 of 6
6. Completion of Improvements. Subdivider shall bec
days and shall complete construction within twelve (12) moi
the Improvements may be completed at a later date, as det
A. Failure by Subdivider to begin or complete construction
shall constitute cause for City, in its sole discretion and whet
of this agreement, to revise improvement security requi
improvements, and/or to require modifications in the stand
to changes in standards or conditions affecting or affected I
affect the validity of this agreement or Subdivider's obligati
7. Force Majeure. In the event that Subdivider is
strikes, act of God, or other events beyond Subdivider's
events will be extended by the period of such events.
8. Time Extension. Subdivider may make applicatic
for completion of the Improvements. The City Council, in
the request or conditionally approve the extension with ac
Agreement.
As a condition of the time extension, Subdivider shall f
required in SECTION 3 hereinabove, to cover the period of
to ensure the performance of and payment for Improvemel
and to provide warranty security on completed Improver
9. Survey Monuments. Before final approval of
monuments in accordance with the provisions of Sections 1
Quinta Municipal Code. Subdivider shall provide the City
set, evidence of payment and receipt thereof by the engine
monument tie -outs for monuments set in public streets.
10. Final Acceptance of Improvements. At the comt
Improvements by City, Subdivider shall submit a reque:
accompanied by any required certifications from Subdivider
agencies having jurisdiction over and approval authority 1
Conditions of Approval, and any required construction qual
Upon receipt of said request, the City Engineer or a di
documentation and will inspect the Improvements. If the Im
applicable City standards and specifications, and as provil
Approval and this Agreement have been satisfied, and S
Paragraph 11, hereinafter, the City Engineer shall recommen
11. Revisions to Plans. When the Improvements ha,
Subdivider shall make any necessary revisions to the orii
Improvements constructed. When necessary revisions ha
be clearly marked with the words "As -Built," "As-Constructe
by an engineer or surveyor, as appropriate for the improven
and the plans shall be resubmitted to the City Engineer.
12. Improvement Warrantx. Subdivider hereby guara
year, beginning on the date of final acceptance of the Impro,
or labor done, or defective materials furnished, and shall r
13. Release of Security. City shall retain and release
3 of this agreement. Prior to the release of payment secure
a title report or other evidence sufficient to show claims
security released.
in construction of the Improvements within ninety (90)
the after the approval of this Agreement. Portions of
-,rmined by the City Engineer or as set forth in Exhibit
if the Improvements within the specified time periods
i it deems necessary, to declare Subdivider in default
ements as necessary to ensure completion of the
3rds or sequencing of the Improvements in response
y the Improvements. Said failure shall not otherwise
)ns hereunder.
able to perform within the time limits herein due to
itrol, the time limits for obligations affected by such
in writing to the City Council for an extension of time
3 sole and absolute discretion, may approve or deny
Itions or revisions to the terms and conditions of this
ish securities, similar in form and substance to those
,ension. The value of the securities shall be sufficient
that remain incomplete at the time of the extension,
reet improvements, Subdivider shall place survey
495, et sec. of the Subdivision Map Act and of the La
ngineer written proof that the monuments have been
or surveyor setting the monuments, and intersection
letion of construction and prior to acceptance of the
t for final approval by City. The request shall be
s engineers or surveyors, approval letters from other
:)r improvements required by this Agreement or the
ty documentation not previously submitted.
ly-authorized representative will review the required
)rovements are determined to be in accordance with
ed herein, obligations required by the Conditions of
ibdivider has provided revised plans as required in
acceptance of the Improvements by the City Council.
, been inspected and approved by the City Engineer,
ial plans held by City so the plans depict the actual
a. been made, each separate sheet of the plans shall
if or "Record Drawing," the marking shall be stamped
nts thereon, who is licensed to practice in California,
ses the Improvements to City for a period of one (1)
ments by the City Council, against any defective work
lair or replace such defective work or materials.
curities in accordance with the provisions of Section
the City Engineer may require Subdivider to provide
lien, if any, that may affect the amount of payment
T. D. Desert Development Limited Partnership — Tract 28912 Page 4 of 6
14. City Right to Cure. If Subdivider fails to perform
been performed within sixty (60) days after written notice of
and Subdivider shall pay the entire cost of such perform
attorney's fees incurred by City in enforcing such obligation.
as determined by the City Engineer, the requirement for wr
days shall be deemed waived and all other provisions of th
15. Indemnification. Subdivider hereby binds itself, its c
administrators, guarantors, heirs, and assigns, and agree
employees, agents, representatives, and assigns harmless f
or causes of action of any nature whatsoever, arising out of
herein under, including costs of suit and reasonable attorn
ny obligation hereunder and such obligation has not
efault from City, then City may perform the obligation,
ince by City including costs of suit and reasonable
In cases of emergency or compelling public interest,
ten notice of default and/or the passage of sixty (60)
5 Article shall remain in effect.
'icers, employees, agents, representatives, executors,
to indemnify, defend and hold City and its officers,
im and against any losses, claims, demands, actions,
in any way connected with Subdivider's performance
►s' 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 requirernent 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 pi
provisions not so held shall remain in full force and effect.
18. General Provisions
sions of this Agreement are held unenforceable, all
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 agree
executors, administrators, assigns, and successors of the
C. Neither party to this Agreement relies upon
Agreement.
nts set forth herein shall apply to and bind the heirs,
rties hereto.
warranty or representation not contained in this
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 partie with respect to this Agreement, the prevailing party
shall be entitled to prompt payment of its reasonable attorn ys' 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. D. Desert Development Limited Partnership — Tract 28912 Page 5 of 6
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written
above.
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
(760) 777-7075
Thomas P. Genovese, City Manager
ATTEST:
Cit Jerk
SUBDIVIDER:
s
By:
Title:
By:
Title:
9-A�- � s
Date
Date
Date
T. D. Desert Development
P. O. Box 1716
La Quinta, CA 92253
(760) 777-7747
J —i �c---7 7
Reviewed and Approved: 6411 pp
Ci Engineee Date
Approved as to Form: 0 '
City Attorney Date
T. D. Desert Development Limited Partnership — Tract 28912 Page 6 of 6
Exhibit) A
SECURITY - TRACT 28912
Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory
Improvements shall remain in place indefinitely until called pon or released by City.
Monumentation security shall guarantee performance of or ayment for the work and shall be utilized or released
as specified in Chapter 4, Article 9 of the Subdivision Map ct.
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 arnount 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 dars after all required tract improvements are complete
and accepted by the City Council.
Improvement Description
Grading
On -Site Street Improvements
Domestic Water
Sanitary Sewer
Underground Electrical
Monumentation
Off -Site Street Improvements (Participatory)
Totals
Performance
$293,579
$481,278
$280,046
$213,895
$202,500
$15,000
$390,451
$1,876,749
Labor & Materials
$293,579
$481,278
$280,046
$213,895
$202,500
$0
$0
$1,471,298
STATE OF CALIFORNIA )
ss.
COUNTY OF kvaSibL, )
On / - !9 - 9 / , before me,
personally appeared q t 6F)/4tV,-L y C/G-lq E--
me(s) of 5ioner
LA OwqAt4c f(-"
me, Titl6, e.g-.,Jane Doe, Nbtary Public"
personally known to me -- OR -- ❑ proved to rne on the basis of satisfactory evidence to be the
person(s) whose name(,< is/#e subscribed to the within
instrument and acknowledged to me that he/sl#/tt y executed
the same i i%is*r/t�eir authorized capacity(i�s), and that by
his/
*r/th signature on the instrument the person(, or the
entity upon behalf of which the person acted, executed the
instrument
; CIA V, FWHBA►CH
CommiiWo�n+#1192021 Witness m hand and official seal.
wtm/
Rlv"de County
My Comm. 5q*w Aug 2. 2=
igna ure o o ary
OPTIO AL
Though the data below are not required by law, the infor ation may prove valuable to persons relying on the
document and could prevent fraudulent reattachment of t is form.
CAPACITY CLAIMED BY SIGNER:
❑ Individual
❑ Corporate Officer:
Title(s)
❑ Partner(s): ❑ Limited
❑ General
❑ Attorney -in -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
SIGNER IS REPRESENTING
Name of Person(s) or Entity(ies)
`DESCRIPTION OF ATTACHED DOCUMENT
or i ype or uocumen
JIGNERS
(O her than named above)
er or rages
PERFORMANCE BOND
Bond No. 76S103145899BCM
WHEREAS, the City Council of the City of La Quinta, State of California (hereafter
referred to as the "City"), and T.D. Desert Development, Ltd., a Delaware Limited
partnership (hereinafter referred to as "Principal"), have entered into an agreement whereby
Principal agrees to install and complete certain designated improvements, which said
agreement, dated March , 1999, and identified as Subdivision Improvement for Tract
28912 is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of said agreement to furnish a
bond for the faithful performance of said agreement.
NOW THEREFORE, we the Principal and Travelers Casualty and Surety Company of
America, as Surety, are held and firmly bound unto the City in the penal sum of One Million
Eight Hundred Seventy Six Thousand Seven Hundred Forty-nine Dollars ($1,876,749.00)
lawful money of the United States, for the payment of which sum well and truly to be made,
we bind ourselves, our heirs, successors, and executors and administrators, jointly and
severally, firmly by these presents.
The condition of this obligation is such that if the above bounded Principal, his or its
heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by
and well and truly keep and perform the covenants, conditions and provisions in the said
agreement and any alteration thereof made as therein provided, on his or their part, to be kept
and performed at the time and in the manner therein specified, and in all respects according to
their true intent and meaning, and shall indemnify and save harmless the City, its officers,
agents and employees, as therein stipulated, then this obligation shall become null and void;
otherwise it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified
therefore, there shall be included costs and reasonable expenses and fees, including reasonable
attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed
as costs and included in any judgment rendered.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or
addition to the terms of the agreement or to the work to be performed thereunder or the
specifications accompanying the same shall in any way affect its obligations on this bond, and
it does hereby waive notice of any such change, extension of time, alteration or addition to the
terms of the agreement or to the work or the specifications.
LABOR AND MATERIAL BOND
Bond No. 76S103145899BCM
WHEREAS, the City Council of the City of La Quinta, State of California, and T.D.
Desert Development, Ltd., a Delaware Limited partnership (hereinafter designated as
"Principal"), have entered into an agreement whereby Principal agrees to install and complete
certain designated public improvements, which said agreement, dated March , 1999,
and identified as Subdivision Improvement for Tract 28912 is hereby referred to and made a
part hereof; and
WHEREAS, under the terms of said agreement, Principal is required before entering
upon the performance of the work, to file a good and sufficient payment and bond with the
City of La Quinta to secure the claims to which reference is made in Title 15 (commencing
with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California.
NOW THEREFORE, the Principal and the undersigned, as corporate surety, are held
firmly bound unto the City of La Quinta and all contractors, subcontractors, laborers, material
men and other persons employed in the performance of the aforesaid agreement and referred to
in the aforesaid Code of Civil Procedures in the sum of One Million Four Hundred Seventy-
one Thousand Two Hundred Ninety-eight Dollars ($1,471,298.00), for materials furnished or
labor thereon of any kind, or for amounts due under the Employment Insurance Act with
respect to such work or labor, that said surety will pay the same in an amount not exceeding
the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in
addition, to the fact amount thereof, costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, to be
awarded and fixed by the court, and to be taxed as costs and to be included in the judgment
therein rendered.
It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of
any and all persons, companies and corporations entitled to file claims under Title 15
(commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right
of action to them or their assigns in any suit brought upon this boned.
Should the condition of this bond be fully performed, then this obligations shall become
null and void, otherwise it shall be and remain in full force and effect.
The surety hereby stipulates and agrees that no change, extension of time, alteration or
addition to the terms of said agreement or the specification accompanying the same shall in any
manner affect its obligations on this bond, and it does hereby waive notice of any such change,
extension, alteration or addition.
Tilit 4 XP Q"
MEMORANDUM
TO: Saundra Juhola, City Clerk
FROM: Marcus Fuller, Assistant Engineer I it
DATE: December 3, 1998
RE: Dust Control Security, Tract 28912
T.D. Desert Development has submitted a letter of credit in the amount of $32,000 to be held as dust
control security during development of Tract 28912. Please hold the letter of credit, L.O.C. # 1262,
issued from Palm Desert National Bank, until such time as it is no longer needed.
We will advise when the security is no longer required.
Any questions, please call.
MF/mf
cc: Project File 28341-211
Permit 2733
00
R
FIN
PALM pEST NATIONAL ANlc
MEB
November 4, 1998
IRREVOCABLE STANDBY LETTER OF CREDIT NO. 1262
Beneficiary:
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Amount: $32,000.00
To Beneficiary:
We hereby establish our irrevocable Standby Letter of Credit in your favor, by order
of T.D. Desert Development Limited Partnership (TDDDLP), 530 Beacon Parkway
W. #800, Birmingham, Alabama 35209.
The amount set forth above will be available to you by submission of your Sight
Draft(s), through proper clearing channels (consult your bank), accompanied by this
original Letter of Credit and Beneficiary's officially -signed statement certifying that:
T.D. Desert Development Limited Partnership (TDDDLP), a Delaware Limited Partnership, has failed to
perform the dust abatement for rough grading of Tract 28912 adjacent property known as Rancho La
Quinta and that TDDDLP has been notified in writing of the failure to perform at least ten (10) days prior
to drawing(s).
This letter of credit guarantees that all or any portion of the funds available pursuant to Letter of Credit No.
1262 will be paid upon the written demand of the City and that such written demand need not present
documentation of any type as a condition of payment, including proof of loss.
Each draft must state on its face, "Drawn under Palm Desert National Bank Letter
of Credit No. 1262 dated November 4, 1998."
Drafts may not be presented for purposes which pre -date this Letter or, under any
Circumstances, later than the expiration of the Letter on November 4, 1999. This
Letter of Credit shall be automatically renewed for a like term until such time that
the City authorizes its expiration or until sixty (60) days after the City receives
notice from the financial institution of intent to allow the expiration of the Letter of
Credit. This Letter of Credit is transferable only upon our prior approval and
payment of an appropriate transfer fee.
73-745 El Paseo, Palm Desert, California 92260 (619) 340-1145
OUTSTANDING BOND REPORT
Name: T. D. Desert Development (Rancho La Quinta)
Tract No. 28912
Date of Contract: September 21, 1999
Required Bond Amounts:
$1,876,749 - Performance
$1,471,298 - Materials & Labor
Dates of Bond Reductions:
Outstanding Bonds:
Amount:
$1,876,749
$1,471,298
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76S103145899BCM
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Date Cancelled/Released: