28935 JPW Construction 99CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
PARCEL 2$935
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this j� day
of 6191999, by and between J. P. W. Construction, LLC, a Delaware Limited Liability Company,
hereinafter referred 4 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 Parcel Map 28935 (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. Subdivider shall furnish origin I 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 Subdi% ider, hereinafter referred to as "performance security,"
shall assure the faithful performance of this Agreement inc uding 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 per the security schedule identified on Exhibit A attached hereto and made a
part hereof. Subdivider shall provide warranty security after mprovements are complete and accepted by the City
Council and prior to or concurrently with the final release of erformance 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, incl iding 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.
J. P. W. Construction, LLC — Parcel Map 28935 Page 1 of 6
2) Surety bonds, of the form specified in su section 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 fi ancial 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 onf
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 c
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,c
provided and shall state, on its face, that the letter of credit
authorizes its expiration or until sixty (60) days after City r(
allow expiration of the letter of credit.
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
jarantee 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
fill be automatically renewed until such time that City
;eives notice from the financial institution of intent to
5) A lien upon the subdivided property, if ity 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 agenc
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 accordanc
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 (109
otherwise set forth in Exhibit A.
D. At the time of submittal of security, Subdivide
form of security provided. Administrative fees shall apply
parcel map) rather than to individual security instruments. 1
and/or source (surety or financial institution) of security initiz
not be required for submittal of warranty security if the wa
source as the performance security it replaces. Administr
1) For certificates of deposit, bonds and left
of SECTION 3.B., which require the establishment of eviden
the administrative fee shall be One Hundred Fifty Dollars (;
2) For liens on real property as described
prepare lien agreements and subordination agreements, ac
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)
of the state, federal or local government, when any
r 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
)) of the amount of performance security except as
shall pay to City administrative fees applicable to the
:) the subdivision (final map, parcel map or waiver of
e fees shall be paid separately for each different form
y submitted and for substitution of securities but shall
anty security is of the same form and from the same
Jve fees for security shall be as follows:
:rs of credit as described in Paragraphs 2), 3) and 4)
* 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).
J. P. W. Construction, LLC — Parcel Map 28935 1 Page 2 of 6
3) For other forms of security listed in Sect
E. Participatory Improvements, if any, are identifi
shall remain in place until the Participatory Improvements
by Subdivider, or until Subdivider pays to City the estima,
guarantee the reimbursement by Subdivider of Subdivider';
Payment security and warranty security shall not be requir
3 B, above, there will be no administrative fee.
1 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.
J 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 arnount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or beco
non-payment of premiums, modifications of this Agreemer
in this Agreement, without express authorization from Cit,
written notice by registered or certified mail, return receipt
G. Security shall be released in the following
1) Performance security shall be released
by the City Council of the Improvements subject to the pr
2) The City Engineer may authorize partial I
upon application by Subdivider. However, no such reductioi
of the total performance security provided for the faithful per
be reduced below that required to guarantee the completi
Percent (10%). The City Engineer shall not allow more th
improvement agreement.
le 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
;guested.
ner:
ion the final completion and acceptance or approval,
sions of paragraph B.
eduction 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
n 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 Part cipatory 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 Irr
warranty period, there are one or more outstanding requ
materials under the terms of the warranty, warranty securi,
satisfied or until Subdivider has made other arrangements
4. Permits Required. Prior to commencing any ph
for that phase of work and pay all required fees. Work p
provisions of the required permits.
5. Off -site Improvements. When the constructior
necessitates the acquisition of real property not owned by
purchase such real property at a reasonable price. In the i
efforts, to acquire such real property at a reasonable price,
acquire such real property. City may, but is not required to,
of Subdivider. If City so agrees, City and Subdivider shall ei
to the City Attorney. Said separate agreement shall provi(
Percent (150%) of the appraised fair market value of the re
shall be refunded to Subdivider. Any additional funds requir
Subdivider to City upon the conveyance of said real pro
Subdivider or City to acquire such real property excuse, w
construct the applicable improvement pursuant to this Agr(
;laims of lien, labor and materials security shall be
val by the City Council, of the Improvements. If City
ubdivision Map Act shall apply.
Ivarranty 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
F 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
ubdivider 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
gree to attempt to acquire such real property on behalf
ter a separate written agreement in a form acceptable
e that Subdivider advance to City One Hundred Fifty
it property. Any unexpended portion of said advance
ad for acquisition of the real property shall be paid by
)erty to Subdivider. In no event shall the failure of
live, or otherwise terminate Subdivider's obligation to
ement or the Conditions of Approval.
J. P. W. Construction, LLC — Parcel Map 28935 Page 3 of 6
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. Failure by Subdivider to begin or complete construction Of the Improvements within the specified time periods
shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default
of this agreement, to revise improvement security requirements as necessary to ensure completion of the
improvements, and/or to require modifications in the standards or sequencing of the Improvements in response
to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdivider's obligations hereunder.
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 fur ish securities, similar in form and substance to those
required in SECTION 3 hereinabove, to cover the period of a ension. The value of the securities shall be sufficient
to ensure the performance of and payment for Improvement �Its.
that remain incomplete at the time of the extension,
meand to provide warranty security on completed Improve
9. SurveyMonuments. Before final approval of street improvements, Subdivider shall place survey
PP �
monuments in accordance with the provisions of Sections 6 495, 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 dYly-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's 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.
J. P. W. Construction, LLC — Parcel Map 28935 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 thi's 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, td the parties at their respective addresses indicated
hereon. Notices personally delivered shall be effective uponldelivery. 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.
J. P. W. Construction, LLC — Parcel Map 28935 Page 5 of 6
Exhibit A
SECURITY - PARCEL 28935
Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory
Improvements shall remain in place indefinitely until called iupon 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%) of the original amount. Partial releases of performance security will be evaluated and may be
granted, in whole or in part, by the City Engineer. Requests' for partial releases, setting forth in detail the amount
of work completed and the value thereof, shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required tract improvements are complete
and accepted by the City Council.
Improvement Description Performance Labor & Materials
Grading $98,500 $98,500
On -Site Street Improvements $3,000 $3,000
Sanitary Sewer $3,500 $3,500
Underground Electrical $7,500 $7,500
Engineering Design (Retaining Walls) $20,000 $0
Monumentation $1,800 $0
Totals: $134,300 $112,500
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
ATT
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
(760) 777-7075
3—Z 3- 7 9
Date
SUBDIVIDER: J. P. W. Construction, LLC
78365 Highway 111, Suite #309
La Quinta, CA 92253
(760) 564-5121
By: �-
Date
Title: `7 i
By:
Title:
Reviewed and Approved:
City Engineer
Approved as to Form: 0%4
City Attorney
Date
o L�7
Date
3/Z3]4l
Date
J. P. W. Construction, LLC — Parcel Map 28935 Page 6 of 6
STATE OF CALIFORNIA 1
• ) ss.
COUNTY OF &A--) 1
On �"/'4 1 `l9 , before me,
Name, it , e.g.,"Jane Doel Notary Pu
personally appeared
❑ personally known to me -- OR --
Name(sT—of Sidneds
proved to mne on the basis of satisfactory evidence to be the
person/1,01 whose name(j) is/are subscribed to the within
instrument and acknowledged to me that he/s4e4threy executed
the same in his/he4*Keir authorized capacity0es), and that by
his/he ei# signature) on the instrument the person, or the
entity upon behalf of which the person(X acted, executed the
instrument,
Witness my hand and official seal.
0
gnature
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:
SIGNER IS REPRESENTING
Name of Person(s) or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
i itie or i ype or 4
%3A &AA alg9 3 S
Number of Pages
Date of Document
SIGNERS
(Other than named above)
WELLS FARGO BANK
4��Mw gzkqoe�yrw�
,
/; � q (hV7 Amount $ l '�'
cW t+ 0 Date
Office
Payable to )
Received from
.h � Interest rate � • � %Annual percentage yield
Renewal term � � '� �`�--Maturity date 0el i1�,1
Interest will be computed on a 360 day year basis. Interest will be paid,�ti andredited to account number=� =—
or ❑ paid by check.
ore maturit
This certificate is non -transferable. Presentation of the original ill utormat automatically enew. The terms of isrequired
gcertificate, including uud ng the in Brest rate deposit
and withdrawn
n dal percentage yield, are re
may be an early withdrawal fee. At maturity, this deposit
subject to change on the maturity date. Please refer to the Disclosure Statement for additional information about your accou t'.
Bank Representative's Signature w pA E COPY
Account Number 10 L 6 2 2 30 7 5 000 MM
w,unu,uu,nnri Member FDIC
OUTSTANDING BOND REPORT
Ll
Name: J. P. W. Construction LLC
Tract No. 28935
Date of Contract: February 16, 1999
Required Bond Amounts:
Grading $98,500
Onsite Streets $ 3,000
Sewer $ 3,500
Electrical $ 7,500
Engineering Design/walls $ 20,000
Monumentation $ 1,800
Dates of Bond Reductions:
performance/labor materials
(same)
(same)
(same)
performance only
performance only
Performance security reduced by Public Works on 9/14/00.
k i % I Cam,,. c�SL �• �/3 % o o -}n 13 aS c�
Outstanding Bonds:
Amount: Bond No.
$ 246,800 CD#6221-732225
$112,500 CD#0904464112
$ 15,050 CD#same
Date Cancelled/Released:
Replaced 9/19/00
t-- e-1ea"