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28964 PM La Quinta 01T4hf 4 4 a" COUNCIL/RDA MEETING DATE: March 6, 2007 ITEM TITLE: Acceptance of On -Site and Off -Site Improvements Associated with Tract Map No. 28964, Talante, Trans West Housing, Inc. RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Accept the On -site and Off -site improvements associated with Tract Map No. 28964, Talante, Trans West Housing, Inc., and authorize staff to release performance security upon receipt of warranty security. The labor and material security will remain in place for 90 days after City Council acceptance of the improvements. FISCAL IMPLICATIONS: Acceptance of these improvements will impact the General Fund as follows: Median Landscaping Maintenance is estimated to be $1,500 annually. This amount will be added to the City's landscape and lighting district in the Fiscal Year 2007/2008 Operating Budget. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Tract Map No. 28964, Talante, is located on the north side of Avenue 50 west of Jefferson Street (Attachment 1). The improvements include curb and gutter, sidewalk, curb ramps, signing, striping, and asphalt concrete pavement. All obligations of the Subdivision Improvement Agreement and the Conditions of Approval have been satisfied. Attachment 2 indicates the amount of warranty security. 6,87 FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Accept the On -site and Off -site improvements associated with Tract Map No. 28964, Talante, Trans West Housing, Inc. and authorize staff to release performance security upon receipt of warranty security and release labor and material security 90 days after City Council acceptance; or 2. Do not accept the On -site and Off -site improvements associated with Tract Map No. 28964, Talante, Trans West Housing, Inc. and do not authorize staff to release performance security upon receipt of warranty security and not release labor and material security 90 days after City Council acceptance; or 3. Provide staff with alternative direction. Respectfully submitted, T Aothnas[`o , P.E. Public Works Dire or/City Engineer Approved for submission by: O Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Warranty Security Exhibit KE ATTACHMENT - 1 TRACT MAP No. 28964 - TALANTE VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: March 6, 2007 ITEM TITLE: Acceptance of (On -site & Off -site) Improvements Associated with Tract Map No. 28964, Talante, Trans West Housing, Inc. APPLICANT: Ms. Jennifer James — Trans West Housing, Inc. 3 ATTACHMENT - 2 TRACT MAP No. 28964 - TALANTE IMPROVEMENTS Performance Security' Improvement Description Labor & Materials Current Amount Proposed Reduction WARRANTY AMOUNTS Grading $263,651 $263,651 90% $26,365 Streets $694,640 $694,640 900/0 $69,464 Domestic Water $431,330 $431,330 900/0 $43,133 Sanitary Sewer $272,544 $272,544 90% $27,254 Electrical $68,700 $68,700 90% $6,870 Perimeter Landscape & Walls $4 26,950 $426,950 90% $42,695 Traffic Signal (25% Participatory) $0 $32,500 0% $32,500 Ave. 50 Median (50% Participatory) $0 $48,707 0% $48,707 Monumentation $0 $19,650 100% $0 Totalel $2,167,815 1 $2,258,672 — $270,623 1. Performance Security shall be released immediately upon City Council acceptance. 2. Labor & Materials Security to remain in place for 90 days after City Council acceptance of improvements. CITY COUNCIL MEETING: March 6, 2007 ITEM TITLE: Acceptance of Improvements Associated with Tract Map No. 28964, Talante, Trans West Housing, Inc. APPLICANT: Ms. Jennifer James —Trans West Housing, Inc. r 90 CITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT Tract 28964 THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement') is made and entere� into this lD day of , 20 8 by and between PM La Quinta, L.L.C., a California Limite Liability Co any hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of Ca ' ornia, 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. 28964 (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: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28964.wpd 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 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) ratherthan 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 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). T:\PWOEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28964.wpd Page 2 of 6 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 Subdividers 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 receipt 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 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. T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28964.wpd 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 Maieure. 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. 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, T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28964.wpd Page 4 of 6 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\28964.wpd Page 6 of 6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. 11 Thomas P. Genovese, City Manager ATTEST: NW" / City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 760/777-7075 4 V— � �-- to., Date SUBDIVIDER: PM La Quinta L.L.C., a CA Limited Liability Corporation 9968 Hibert Street, Ste. 102 San Diego, CA 92131 (858)653-3003 By: 12-6 6 � Date Title: ��lv q v'�-�- By: Date Title: Reviewed and Approved:1'X11145 City Engineer Approved as to Form: A L, City 7mey 2-Ij2 Zo Date 2 a yal Date T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\28964.wpd Page 6 of 6 Exhibit A SECURITY - TRACT 28964 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%) 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 Grading Streets & Storm Drainage Domestic Water Sanitary Sewer Electrical Perimeter Landscape & Walls Traffic Signal-25%(Participatory) Ave 50 Median-50%(Participatory) Monumentation Totals Performance Labor & Materials 263,651 263,651 694,640 694,640 431,330 431,330 272,544 272,544 68,700 68,700 426,950 426,950 32,500 0 48,707 0 19,650 0 $2,258,672 $2,157,815 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907 State of w County of C! r� On before me, G DATE NAME, TITLE OF & R - E.G., "JA E DOE, NOTARY C LIC" 74IN4& personally appeared NAME(S) OF SIGNER(S) personally known to me - to be the person(-- whose name() is/e+e- subscribed to the within instrument and ac- knowledged to me that he/e ey executed the same in his/hetftiTeir authorized capacity(4e-s), and that by his'14eFithewir LAURA SPYCIA signature( on the instrument the person{), Comm. /1158841--1 or the entity upon behalf of which the NOTARY'UBLIC-CALIFORNIA 0 person(.a) acted, executed the instrument. San Diego County My Comm. Expires Nov.11, 2001 WITNESS my hand and official seal. SIGNATUR F RY OPTIONAL Though the data below is not required by law, it 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 ©'05THER: SIGNER IS REPRESENTING: NAME OF PERSON(S) ORE ITY(IES) WL& / G� DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT /z ►� NUMBER OF PAGES r DA E OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 Bond no.: 183 76 97 Premium: $27,104.00 SUBDIVISION PERFORMANCE BOND WHEREAS, the City of La Quinta, State of California, and PM La Quinta. LLc (hereinafter designated as "Principal") have entered into an agreement whereby Principal agrees to install and complete certain designated public improvements, which said agreement, - � dated , 2000 , and identified as Project is hereby referredand de a part hereof; and WHEREAS, 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 the Insurance Company of the West, as Surety, are held and firmly bound unto the City of La Quinta, California hereinafter called "the OBLIGEE" , in the penal sum of Two million two hundred fifty-eight thousand six ,hundred and $ 2, 258, 672.00 , lawful money of the United States, for the payment of such sumseventy-two well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these present. The condition of this obligation is such that the obligation shall become null and void if the above -bounded Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to, abide by, well and truly keep, and perform the covenants, conditions, and provisions in 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 his or their true intent and meaning, and shall indemnify and save harmless the City of La Quinta, its officers, agents, and employees, as therein stipulated; otherwise, this obligation 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 therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by 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 to the specifications. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on .Tan11ar3z 1 nth, 20001. {act C)C, r PRIN IPAL By. O►nA UA C. Lo Bond no.: 183 76 97 Premium: included in Performance SUBDIVISION LABOR AND MATERIALS BOND Bond WHEREAS, the City of La Quinta, State of California, andPM LA QUINTA, LLC (hereinafter designated as "Principal") have entered into an agreement whereby Principal agrees to instal{ and co flete certain designated public improvements, which said agreement, dated i , 2001 , and identified as Project 'i"„iAAK- , 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 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; and NOW, THEREFORE, we, the Principal and , the undersigned as Surety, are held and firmly bound unto the City of La Quinta, California, and all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of the aforesaid agreement and referred to in Title 15 of the Civil Code, in the penal sum of Two million one hundred fifty-seven thousand eight hundred ($ 2,157,815.00 ) lawful money of the United States, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that 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 face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation to be awarded and fixed by the court, all to be taxed as costs and included in any judgment 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 bond. Should the condition of this bond be fully performed, then this obligation 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 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 to the specifications. and fifteen LGW. GROUP ❑ INSURANCE COMPANY OF THE WEST ❑ EXPLORER INSURANCE COMPANY 0 INDEPENDENCE CASUALTY AND SURETY COMPANY 11455 EL CAMINO REAL, SAN DIEGO, CA 92130-2045 P.O. BOX 85563, SAN DIEGO, CA 92186-5563 (858) 350-2400 FAX (858) 350-2707 www.icvvgroup.com Bond No. 183 79 92 Premium: $180.00 DUST CONTROL BOND KNOW ALL MEN BE THESE PRESENTS: THAT WE, PM La Quinta, LLC as Principal, and Insurance Company of the West Organized and existing under the laws of the State of California, As Surety, are held and firmly bound unto The City of La Quinta in the just and full sum of Fifteen Thousand And No/ 100 ($15,000) lawful money of the United States, for the payment of which, well and truly to be made, we bind ourselves, our heirs, administrators, executors, successors and assigns, jointly and severally, firmly and by these presents. The condition of the foregoing obligation is such that whereas said principal has filed an application for a permit to perform excavation or fill work, or both, more specifically described in the application for the grading permit, upon real property owned by said principal known as Tract #28964. NOW THEREFORE, if the above named principal shall well and truly comply with dust control requirements of Grading Permit, and if all of the work required to be done complies with the city's dust control requirements to the satisfaction of the City Engineer, then this obligation shall be void and of no effect; otherwise it shall be and remain in full force and effect. WITNESS OUR HANDS THIS 20th day of February, 2001 . PRINCIPAL In pan of t 6 Ron H. Ballard ATTORNEY -IN -FACT NOTE: Acknowledgments of Execution by Principals and Surety must be attached. CA-ICW 23 (7/99) OUTSTANDING BOND REPORT Name: PM La Quinta LLC (Rancho Fortunado) Tract No. 28964 Date of Contract: January 26, 2001 Required Bond Amounts: Grading Streets/Drainage Water Sewer Electrical Per. Landscaping/walls Traffic signal Avenue 50 median Monumentation Dates of Bond Reductions: Outstanding Bonds: Amount: $2,258,672 $ 2,157,815 $ 263,651 performance & labor 694,640 same 431,330 same 272,544 same 68,700 same 426,950 same 32,500 performance only 48,707 performance only 19,650 performance only Bond No. Date Cancelled/Released: 183 76 97 same $ 15,000 (dust control) 183 79 92