29122 MSG La Quinta Homes 99CITY OF LA QUIWA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT 29122
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this
3 t% day of S t slim b<-r , 19 ,
by and between MSG La Quinta Homes, LLC , a California Limited Liability Company, hereinafter re erred to as
"Subdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to
as "City."
RECITALS:
A. Subdivider has prepared and filed a final map or parcel map (the "Map") of a unit of land in the City of La
Quinta, County of Riverside, which unit of land is known as Tract No. 29122 (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\29122.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 T-2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office).
4) Irrevocable letters of credit, issued by one or more financial institutions meeting the requirements
of Paragraph (3), pledging that the funds necessary to carry out the completion of the Improvements are on deposit,
guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of
the depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available
pursuant to the letters of credit will be paid upon the written demand of City and that such written demand need not
present documentation of any type as a condition of payment, including proof of loss. The duration of any such
letter of credit shall be for a period of not less than one year from the execution of the agreement with which it is
provided and shall state, on its face, that the letter of credit will be automatically renewed until such time that City
authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to
allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the final map or parcel
map for which the Improvements are required. The lien shall provide a collateral value of three (3) times the
estimated cost of the Improvements and shall include the power of sale of the real property, all buildings and
improvements thereon, or that may be erected upon or made thereto, together with all hereditaments and
appurtenances thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents, issues,
and profits thereof. The collateral value of the property shall be established at Subdivider's expense through an
appraisal approved by City.
6) An instrument of credit from an agency of the state, federal or local government, when any
agency of the state, federal, or local government provides at least Twenty Percent (20%) of the financing for the
Improvements.
7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in Section 16430 of the
California Government Code, deposited, at City's option, with City or a responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the
Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly
authorized representative of the City Engineer. The amount of Payment security shall equal the amount of the
amount of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate
security. Warranty security shall equal Ten Percent (10%) of the amount of performance security except as
otherwise set forth in Exhibit A.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to the
form of security provided. Administrative fees shall apply to the subdivision (final map, parcel map or waiver of
parcel map) rather than to individual security instruments. The fees shall be paid separately for each different form
and/or source (surety or financial institution) of security initially submitted and for substitution of securities but shall
not be required for submittal of warranty security if the warranty security is of the same form and from the same
source as the performance security it replaces. Administrative fees for security shall be as follows:
1') For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4)
of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial institution,
the administrative fee shall be One Hundred Fifty Dollars ($150.00).
2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will
prepare lien agreements and subordination agreements, administer valuation of the real property and administer
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:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\29122.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 Subdivider's Surety for payment of said cash and
Subdivider's Surety shall pay to City the lesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including
non-payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated
in this Agreement, without express authorization from City unless the surety provides City with sixty (60) days
written notice by registered or certified mail, return 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\29122.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 Majeure. In the event that Subdivider is unable to perform within the time limits herein due to
strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such
events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time
for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny
the request or conditionally approve the extension with additions or revisions to the terms and conditions of this
Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those
required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient
to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension,
and to provide warranty security on completed Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the La
Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that the monuments have been
set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection
monument tie -outs for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be
accompanied by any required certifications from Subdivider's engineers or surveyors, approval letters from other
agencies having jurisdiction over and approval authority for improvements required by this Agreement or the
Conditions of Approval, and any required construction quality documentation not previously submitted.
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required
documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with
applicable City standards and specifications, and as provided herein, obligations required by the Conditions of
Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in
Paragraph 11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council.
11. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer,
Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual
Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall
be clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped
by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California,
and the plans shall be resubmitted to the City Engineer.
12. Improvement Warranty. Subdivider hereby guarantees the Improvements to. City for a period of one (1)
year, beginning on the date of final acceptance of the Improvements by the City Council, against any defective work
or labor done, or defective materials furnished, and shall repair or replace such defective work or materials.
13. Release of Security. City shall retain and release securities in accordance with the provisions of Section
3 of this agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide
a title report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment
security released.
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\29122.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\29122.Wpd Page 5 of 6
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written
above.
CITY:
Thomas P.
ATTEST:
enovese, City Manager
SUBDIVIDER:
By. r /Vj,/ A, � di / t 4
Title:
By:
Title:
Reviewed and Approved:
City Engineer
Approved as to Form: Aj'�
City Attorney
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
Date
MSG La Quinta Homes, LLC
20700 Ventura BLVD, STE 128
Woodland Hills, CA 91364
(818) 710-0911
Date
Date
1 i/.s g7
Date
Date
T:\PWDEPT\STAFF\GUZMAN\TRACTS\AGREEMEN.TS\29122.wpd Page 6 of 6
Exhibit A
SECURITY - TRACT 29122
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 and consists of
infrastructure improvements located around the perimeter of the PGA West Specific Plan area required by the
Specific Plan including: street, landscaped median, water, sewer, electric power, storm drain, perimeter
landscaping, and perimeter sound attenuation wall installed after January 1992. Subdivider will not be held
responsible for participatory improvements other than cost participation as outlined in the Conditions of Approval
and herein.
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
Streets & Storm Drainage
Offsite Participatory Improvements'
Monumentation
Performance
42,468
37,440
2.300
Totals: $82,208
Labor & Materials
42,468
0
0
$42,468
This improvement item will be paid in cash, to the City for redistribution to the party who constructs the
offsite improvements, prior to final acceptance of the tract improvements. The actual amount will not
exceed $37,440 ($16,000/gross acre subdivided), but may be reduced to a lower amount if actual costs
confirm a lower participation amount.
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
No. 5907
6 v
State of
o
County of
v
On S,�/q99 before me, ,
DATE AME, TITLE OF OFFICER E.G., "JANE DOE, NOTARY BLIC
personally appeared �ajtzeo C-Q:. r 1° Q n L
NAME(S) OF SIGNER(S)
❑ personally known to me - OR - C;hproved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are
subscribed to the within instrument and ac-
knowledged to me that he/she/they executed
the same in his/her/their authorized
capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s),
or the entity upon behalf of which the
r, e�'`yENo:hF, OFFICIAL SEAL person(s) acted, executed the instrument.
REGENIA HENSLEY
p r COMM. #1107891
Notary Public - California
RIVERSIDE COUNTY
My commission Expires WITNESS my hand and official seal.
AUcuST 7, 2000
SIGNATURE OF NOTARY
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
❑ OTHER:
SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)
iM:n
DESCRIPTION OF ATTACHED DOCUMENT
e �
TITLE OR TYPE OF DOCUMENT
17
NUMBER OF PAGES
9 �Be� 4:�
—
DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE
01993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184
EXECUTED IN DUPLICATE
U GHQ
inscqb2lco
BOND NO: 830333S
INITIAL PREMIUM: $716.00/2 YEARS
SUBJECT TO RENEWAL.
SUBDIVISION IMPROVEMENTS
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
That we, MSG LA QUINTA HOMES, LLC , as Principal,
and DEVELOPERS INSURANCE COMPANY, a corporation organized and doing business under and by virtue of the laws of the State
of California and duly licensed to conduct a general surety business in the State of California as Surety, are held and firmly bound unto
CITY OF LA QUINTA
as Obligee, in the sum of FORTY FOUR THOUSAND SEVEN HUNDRED SIXTY EIGHT AND N0/ 100-------------
($ 44, 768.00 ) Dollars, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and
successors, jointly and severally firmly by these presents.
THE CONDITION OF THE OBLIGATION 1S SUCH THAT:
WHEREAS, the above named Principal, as a condition of the filing of the final subdivision map of (Tract/Parcel) Map No.
TRACT #29122
said agreement or agreements.
entered into an agreement or agreements with said Obligee to complete the improvements specified in
NOW THEREFORE, the condition of this obligation is such, that if the above Principal shall well and truly perform said agreement or
agreements during the original term thereof or of any extension of said term that may be granted by the Obligee with or without notice
to the Surety, this obligation shall be void, otherwise it shall remain in full force and effect.
IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said
Surety is hereto affixed and attested by its duly authorized Attorney -in -Fact at
California, this
15TH
"PRINCIPAL"
day of
MSG LA INTA HOMES, LLC
�'�1Gr�G�,ly1�i bhr�+b�,r
SEPTEMBER
GLENDALE
"SURETY"
, 19 99
DEVELOPER INSURANCE COMPANY
BY:
R. D . JOHNSON Attorney -in -Fact
17780 Fitch
Irvine, California 92714
(714) 263-3300
DI 113 Rev. 2/91
rEXECUTED IN DUPLICATE
c
ICO
C�G�OMC�
BOND NO:
830333S
PREMIUM INCLUDED
IN PERFORMANCE BOND.
SUBDIVISION IMPROVEMENTS
LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS:
That we, MSG LA QUINTA HOMES, LLC. , as Principal,
and DEVELOPERS INSURANCE COMPANY, a corporation organized and doing business under and by virtue of the laws of the State
of California and duly licensed to conduct a general surety business in the State of California as Surety, are held and firmly bound unto
CITY OF LA QUINTA
FORTY TWO THOUSAND FOUR HUNDRED SIXTY EIGHT AND NO110O ---------
5 Obligee, in the sum of --
($ 42,468.00 ) Dollars, for which payment,
successors, jointly and severally firmly by these presents.
well and truly to be made, we bind ourselves, our heirs, executors and
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
WHEREAS, the above named Principal, has entered into an agreement or agreements which are made a part of this bond, with the
CITY OF LA QUINTA as Obligee for the improvements in the
subdivision designated as (Tract/ Parcel) Map No,
by the Government Code of California.
TRACT #29122
as required
NOW THEREFORE, the condition of this obligation is such, that if the above Principal fails to make payment to any contractor, his
subcontractors, or to persons renting equipment or furnishing labor and materials to them for the improvement required by said
agreement or agreements, the Surety on this bond will pay the same, in an amount not exceeding the sum specified in this bond.
This bond is executed and filed to comply with Section 66499 through and including Section 66499.10 of the Government Code of
California as improvement security, and shall inure to the benefit of any and all contractors, their subcontractors and persons renting
equipment or furnishing labor or materials to them for the improvement. Notice of extension of time for completion is waived by the
Surety.
IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said
Surety is hereto affixed and attested by its duly authorized Attorney -in -Fact at
GLENDALE
California, this 15TH day of SEPTEMBER , 1999
"PRINCIPAL" "SURETY"
MSG LA QUINTA HOMES, LLC. DEVELOPERS NSU ANCE COMPANY
BY:
Lttvr-� t°� 5- �e/,� R.D. JOHNSON Attorney -in -Fact
17780 Fitch
Irvine, CA 92714
(714) 263-3300
FORM DI 112 (Rev. 5/92)
OUTSTANDING BOND REPORT
Name: MSG La Quinta Homes, LLC
Tract No. 29122
Date of Contract: September 3, 1999
Required Bond Amounts:
Streets/Drainage $42,468
Monumentation $ 2,300
Offsite Participatory Improve. $37,440
(due in cash prior to final acceptance)
Dates of Bond Reductions:
Outstanding Bonds:
Amount:
$44,768
Bond No.
830333S
$42,468 same
performance/labor materials
performance only
performance only
Date Cancelled/Released:
ASSIGNMENT AND ASSUMPTION AGREEMENT
AND
AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT
TRACT 29122
This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO
SUBDIVISION IMPROVEMENT AGREEMENT ("Assignme)lt & Amendment") is made
and entered into as of the day of 200y, by and among the CITY OF
LA QUINTA, a municipal corporation of the State of California ("City"), ), MSG La Quinta
Homes, LLC, a California Limited Liability Company, ("Assignor"), and Riviera Villas,
LLC, a California Limited Liability Company ("Assignee").
RECITALS
A. City and Assignor entered into that certain Subdivision Improvement
Agreement, dated September 3, 1999 ("SIA"), pursuant to which Assignor, as the
"Subdivider" defined in the SIA, agreed to plan for, install, and construct certain public
and/or private improvements on Tract No. 29122 ("Tract"), as more fully described in
Exhibit "A" of the SIA ("Improvements").
B. Assignor desires to assign the SIA, and all of Assignor's rights and
obligations thereunder, to Assignee and Assignee desires to assume Assignor's
position with respect to the SIA and of Assignor's rights and obligations under the SIA
subject to the terms of this Assignment & Amendment.
C. In connection with the foregoing described assignment and assumption,
the City and Assignee have agreed to certain modifications to the SIA as set forth
herein to be effective upon full execution of this Assignment & Amendment by all the
parties hereto.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and the
covenants and promises hereinafter contained, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:
1. Assignment and Assumption. Assignor hereby transfers and assigns to
Assignee all of the Assignor's rights, title, and interest in and to, and obligations under,
the SIA, and Assignee hereby assumes all rights, title, and interest in and to, and
obligations under, the SIA. City hereby consents to the foregoing assignment and
assumption.
F220
2. Replacement of Improvement Security. Pursuant to the SIA, Assignor
has furnished the City security for the Improvements in the form of:
(a) A Faithful Performance Bond in the amount of $44,768.00 for the following
improvements: Streets/Drainage, Grading, and Monumentation.
(b) A Labor and Material Bond in the amount of $42,468.00 for the following
improvements: Streets/Drainage and Grading.
For purposes of this Assignment & Assumption, such security in the aggregate shall be
hereinafter referred to as "Improvement Security." Assignee hereby warrants that within
five (5) days of this executed Assignment and Amendment, it shall replace Assignor's
Improvement Security with security of its own in an amount as specified in the Amended
Subdivision Improvement Agreement. Assignee's security shall be in full compliance
with the terms and conditions stated in the SIA for such security. The City agrees that
upon receipt of evidence that Assignee has obtained such new security in a form
satisfactory to the City, the City shall release the Original Subdivider's Improvement
Security.
3. Incorporation of SIA Provisions. The Amended SIA, and each provision
therein, unless otherwise modified in writing, is incorporated in this Assignment &
Amendment in its entirety and Assignee agrees and warrants that it assumes and is
bound by each obligation found in the Amended SIA in the same manner as Assignor
prior to this assignment.
-2-
F220
IN WITNESS WHEREOF, the parties hereto have executed this Assignment &
Amendment on 14'r-k day of 20gl.
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
(760) 777-7075
Thomas P. Genovese
City Manager
ATTEST:
aOS2—.G r e ek
City Clerk
ASSIGNOR: MSG La Quinta Homes, LLC
21200 Burbank Blvd, Suite 300
Woodland Hills, CA 91367
Title:
ASSIGNEE: Riviera Villas, LLC
300 E. State Street, Ste.
Redlands, CA 92373
By: First Pacifica Development
Corporation, Manager
By • "
Title: t?n � ^ , A AJ
100
Corp. a CA
3 /9
ate
3' % -oq
Date
3- 33-04
Date
F220
-3-
" AMER,
�
$
}
STATE OF CALIFORNIA }ss.
COUNTY OF Riverside }
On March 5, 2004 before me Constance Gorsuch
personally appeared. Bo Kuo .
personally known to me .
(or proved to me on the basis of satisfactory evidence) to be the persons) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS m Xnd and official seal.
Signature
(This area for official notarial seal)
C NVANC6 ®OMUCH
CO"WI NNon / 1357bs7
Notary Aabk - CaN Wft
Ccnxn. ��
Title of Document Assignment and Assumption Agreement and Amendment to Subdivision
Tmprovement Agreement
Date of Document 3/5/04 No. of Pages 3
Other signatures not acknowledged None
3008 (1/94) (General)
First AmPrirnn Titic Inetiran— r,,..,n.,—
.1 . y j
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
Countyof (-US Y"�/� P��°lj ss.
On N� GGW-C� M , iu before me,
Date n ,�
personally appeared
u►vu I►tA1M
ComrrMaion # 121t�d622
Ni haft - Caromlo 1W a
MiL90ftNov216L.
Ma
Dame and Title of Officer (e.g., 'Jane Doe, Notary Pubol
Names) of Signer(s)
ersonally known to me
❑ proved to me on the basis of satisfactory
evidence
to be the person(s) whose name(s) is/are
subscribed to the within instrument and
acknowledged to me that he/she/they executed
the same in his/her/their authorized
capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNE S ja7n_jnd official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of ocument: S Lc,^ o rr d +h z-
✓� (�Aa�-t .r .
1J S�ibal�v�S�a✓� ?•w��N-J Merl
Document Date: .� S' Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
e
❑ Individual Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Attorney -in -Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
0 1999 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 - Chatsworth, CA 91313-2402 - www.nationalnotary.org Prod. No. 5907 Reorder. Call Toll -Free 1-800-876-6827
OUTSTANDING BOND REPORT
Name: MSG La Quinta Homes, LLC (Assumed by Riviera Villas on 3/16/04)
Tract No. 29122
Date of Contract: September 3, 1999 / March 16, 2004
Required Bond Amounts:
Streets/Drainage
Monumentation
Offsite Participatory Improve.
(due in cash prior to final acceptance)
Dates of Bond Reductions:
$42,468 performance/labor materials
$ 2,300 performance only
$37,440 performance only
Perf. Bond reduction to $12,917 by P.W. on 8/15/02.
Outstanding Bonds:
Insurance Co: American Contractor's Indemnity Company
Amount:
$44,768
$12,917
Bond No. Date Cancelled/Released:
830333S Replaced w/warranty on 3/29/04
203398
$42,468 830333S Replaced on 3/29/04
$42,468 203398
BOND NO. 203398
PREMIUM: $300.00
SUBDIVISION IMPROVEMENTS
Tract Map No. 29122
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Tract Map
No. 29122 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS the City Council of the City of La Quinta, State of California, and
FIRST WHEREAS,
A DEVELOPMENT CORP hereinafter designated as ("principal")
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, datedWCH 5, 2004 , and identified as
Tract Map No. 29122 , is hereby referred to and made a part hereof; and
WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and AMERICAN CONTRACTORS INDEMNITY COMPANY
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("C�iy "), in the penal sum
of TWELVE THOUSAND ' NINE HUNDRED SEVENTEEN DOLLARS ($ 12 , 917.00 ) lawful
money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our
heirs, successors, 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 therefor, there
shall be included costs and reasonable expenses and fees, including reasonable attor ey's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
F201 - Performance Bond Page 1 of 2
BOND NO.203398
PREMIUM: INCLUDED
SUBDIVISION IMPROVEMENTS
Tract Map No.29122
LABOR AND MATERIAL BOND
KNOW ALL MIEN BY THESE PRESENTS:
THAT, the City Cowl of the City of Le Quints has approved the final map for Tract Map
No. , prior to instelatiorm of certain designated public irrmpr+oMerrments required by the
Conditions of Approval for the subjed nap, in accordance with the California Map Act (G wemment Code
Section 66462)
WHEREAS, the City Council of the City of La Quite. State of California. and
FIRST PACIFICA DEVELOPMENT CORP hw smatter designated as 'the principal" have
entered into an agreement whereby thegk an agrees to install d complete certain designated public
improvements, which agreement, dated .—.. S , 2004 , and me ww as
Tract Map No. 29122 , is hereby referred to and made a part hereof. and
WHEREAS, under the terms of the agreement, the principal is refined before entering upon the
performance of the work, to file a good and suMcient payment bond with the City of La Quinta to secure the
claims to which reference is merle in Tide 15 (corrmrnencing wish Section 3082) of Part 4 of Division 3 of the
Civil Code of the State of Cafifornia.
NOW, THEREFORE, the principal and time undersigned as corporate surety, are held firmly bound
unto the City of La Quinta and all contractors, subcontractors, laborers, rnateriakrmerm, and other persons
employed in the performance of the agreement and referred to in Tide 15 (oornmencing with Section 3082
of Part 4 of Division 3 of the Civil Code in the sure RTY—,TWO THOUSAND FOIIif HUNDRED S —
EIGHT DOLLARS (Z 42, 468. 00 j for materials fumished or labor thereon of any kind, or for
amounts due under the Unernpbyment Insurance Act with respect to this work or labor, that the will
pay the same in an amount not exoseding the amount hereinabove set forth, and also in case soli is brought
upon this bond, will pay, in addition to the face amount thereof, casts and reasonable expenses and fees,
inducting re®sormable attorney' s fees, incurred by city in suooessfutiy enfomcng this obligation, to be awarded
and fixed by the court, and to be taxed as costs and to be inducted in the judgment therein rendered.
ft is hereby expressly sdpukftd and agreed that this bond shall irnre to the benefit of any and all
persons, corrmparmies, and oaporetions entitled to file claims under Title 15 (commenting 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 pert med, then this obligation shall become null and void,
otherwise k shah be and remain in full force and effect.
F202 - Labor and NhmwW Bond Page 1 or 2
CITY OF LA QUINTA
AMENDED SUBDIVISION IMPROVEMENT AGREEMENT
TRACT 29122
THIS SUBDIVISION AMPROVEMENT AGREEME T r��reentll) is made and 20entered into this
day of
by
and between RIVI RA VILLAS, LLC , a California Limited Liability Company, hereinafter referred to as 'Subdivider,"
and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as "City."
RECITALS:
A. Subdivider has prepared and filed a final map or parcel map (the "Map") of ,a unit of land in the City of La
Quinta, County of Riverside, which unit of land is known as Tract No. 29122 (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 shallr 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 attorneys 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.
Page 1 of 6
T:\PWDEPT\COUNCIL\2004\03-16-04\29122\SIA.DOC
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 cant' out the completion of the Improvements are on deposit,
guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the
depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available pursuant
to the letters of credit will be paid upon the written demand of City and that such written demand need not present
documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit
shall be for a period of not less than one year from the execution of the agreement with which it is provided and shall
state, on its face, that the letter of credit will be automatically renewed until such time that City authorizes its expiration
or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of
credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require
the installation of the Improvements sooner than two (2) years after recordation of the final map or parcel map for
which the Improvements are required. The lien shall provide a collateral value of three (3) times the estimated cost of
the Improvements and shall include the power of sale of the real property, all buildings and improvements thereon, or
that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging, or
in any wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. The collateral value of
the property shall be established at Subdivider's expense through an appraisal approved by City.
6) An instrument of credit from an agency of the state, federal or local government, when any agency
of the state, federal, or local government provides at least Twenty Percent (20%) of the financing for the
Improvements.
7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in Section 16430 of the
California Government Code, deposited, at City's option, with City or a responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the
Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly
authorized representative of the City Engineer. The amount of Payment security shall equal the amount of the amount
of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate security.
Warranty security shall equal Ten Percent (10%) of the amount of performance security except as otherwise set forth
in Exhibit A.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to the form
of security provided. Administrative fees shall apply to the subdivision (final map, parcel map or waiver of parcel map)
rather than to individual security instruments. The fees shall be paid separately for each different form and/or source
(surety or financial institution) of security initially submitted and for substitution of securities but shall not be required for
submittal of warranty security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as follows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of
SECTION 3.13., 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 3.13., for which City will prepare
lien agreements and subordination agreements, administer valuation of the real property and administer the
agreements over the life of the lien, all of which require legal assistance and financial advice, Subdivider shall pay to
City an administration fee of One Half of One Percent (0.5%) of the estimated cost of the improvements secured but
not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
Page 2 of 6
T:\PWDEPT\COUNCIL\2004\03-16-04\29122\SIA.DOC
r
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 Subdividers share of the cost of the Participatory Improvements. Payment
security and warranty security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of security
guaranteeing Participatory Improvements. If Subdivider fails to deposit said cash within 30 days of the date of the
written demand from City, City may present a written demand to Subdivider's Surety for payment of said cash and
Subdivider's Surety shall pay to City the lesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including non-
payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated in this
Agreement, without express authorization from City unless the surety provides City with sixty (60) days written notice
by registered or certified mail, return 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, Subdividershall 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.
Page 3 of 6
T:\PWDEPT\COUNCIL\2004\03-16-04\29122\SIA.DOC
T
6. Completion of Improvements. Subdivider shall begin construction of the Improvements within
ninety
of
days and shall complete construction within twelve (12) months after the approval of this Agree
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 Ma6eure. 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 Securi . City shall retain and release securities in accordance with the provisions of Section 3of
this agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide a title
report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment security
released.
14. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been
performed within sixty (60) days after written notice of default from City, then City may perform the obligation, and
Page 4 of 6
T:\PWDEPT\COUNCIL\2004\03-16-04\29122\SIA.DOC
Subdivider shall pay the entire cost of such performance by City including costs of suit and reasonable attorneys 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. Severabilit . 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.
Page 5 of 6
T:\PWDEPT\COUNCIL\2004\03-16-04\29122\SIA.DOC
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.
CITY: City of La Quinta
Thomas P. Genovese, City Manager
ATTEST:
W4111
City
SUBDIVIDER: RIVIERA VILLAS, LLC
Local Address
78-371 Highway 111
La Quinta, CA 92253
By: First Pacif ica Deve1 onment r� T
a California Corp,
Title: M
By: -&L J.&
Title: PN tA
Reviewed and Approve
Approved as to Form:
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
.4 -19- 0
Date
Principal Address
300 E. State Street, Suite 100
Redlands, CA 92373
31 1�L60
Date
Date
Date
Date
Page 6 of 6
T:\PWDEPT\COUNCIL\2004\03-16-04\29122\SIA.DOC
Exhibit A
SECURITY - TRACT 29122
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 and consists of infrastructure
improvements located around the perimeter of the PGA West Specific Plan area required by the Specific Plan
including: street, landscaped median, water, sewer, electric power, storm drain, perimeter landscaping, and perimeter
sound attenuation wall installed after January 1992. Subdivider will not be held responsible for participatory
improvements other than cost participation as outlined in the Conditions of Approval and herein.
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
Streets & Storm Drainage
Monumentation
Offsite Participatory Improvements'
Performance
$ 10,617
2,300
Totals: $12,917
$37,440
Labor & Materials
$ 42,468
0
$42,468
This improvement item will be paid in cash, to the City for redistribution to the party who constructs the
offsite improvements, prior to final acceptance of the tract improvements. The actual amount will not
exceed $37,440 ($16,000/gross acre subdivided), but may be reduced to a lower amount if actual costs
confirm a lower participation amount.
�5.� AMEBIC
}
STATE OF CALIFORNIA }ss.
COUNTY OF ui-,,o, .4A. I
On March 5 , 2004 before me Constance Gorsuch
,
personally appeared :Bo Kuo
personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by. his/her/their signature(s) on the instrument the
person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my)ipnd and official seal.
Signature
(This area for official notarial seal)
Title of Document
Date of Document ..3 No. of Pages
Other signatures not acknowledged
3008 (1 /94) (General)
First American Title Insurance Company
f
ASSIGNMENT AND ASSUMPTION AGREEMENT
AND
AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT
TRACT 29122
This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO
SUBDIVISION IMPROVEMENT AGREEMENT ("Assignment & Amendment) is made
and entered into as of the Jr day of 200, by and among the CITY OF
LA QUINTA, a municipal corporation of the State of California ("City"), MSG La Quinta
Homes, LLC, a California Limited Liability Company, ("Assignor"), and Riviera Villas,
LLC, a California Limited Liability Company ("Assignee$$).
RECITALS
A.. City and Assignor entered into that certain Subdivision Improvement
Agreement, dated September 3, 1999 ("SIA"), pursuant to which Assignor,as
"Subdivider" defined in the SIA, agreed to plan for, install, and construct certainpubliche
and/or private improvements on Tract No. 29122 ("Tract"), as more fully described in
Exhibit "A" of the SIA ("Improvements").
B. Assignor desires to assign the SIA, and all of Assignor's rights and
obligations thereunder, to Assignee and Assignee desires to assume Assignor's
position with respect to the SIA and of Assignor's rights and obligations under the SIA
subject to the terms of this Assignment & Amendment.
C. In connection with the foregoing described assignment and assumption,
the City and Assignee have agreed to certain modifications to the SIA as set fort
herein to be effective upon full execution of this Assignment & Amendment by all the
parties hereto.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and the
covenants and promises hereinafter contained, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:
1. Assignment and Assumption. Assignor hereby transfers and assigns to
Assignee all of the Assignor's rights, title, and interest in and to, and obligations under,
the SIA, and Assignee hereby assumes all rights, title, and interest in and to, and
obligations under, the SIA. City hereby consents to the foregoing assignment and
assumption.
F220
f
2. Replacement of Improvement Security. Pursuant to the SIA, Assignor
has furnished the City security for the Improvements in the form of:
(a) A Faithful Performance Bond in the amount of $44,768.00 for the following
improvements: Streets/Drainage, Grading, and Monumentation.
(b) A Labor and Material Bond in the amount of $42,468.00 for the following
improvements: Streets/Drainage and Grading.
For purpos
es of this Assignment & Assumption, such security in the aggregate shall be
hereinafter referred to as "Improvement Security." Assignee hereby warrants that within
five (5) days of this executed Assignment and Amendment, it shall replace Assignor's
Improvement Security with security of its own in an amount as specified in the Amended
Subdivision Improvement Agreement. Assignee's security shall be in full compliance
with the terms and conditions stated in the SIA for such security. The City agrees
that
upon receipt of evidence that Assignee has obtained such new security in a form
satisfactory to the City, the City shall release the Original Subdividers Improvement
Security.
3. Incorporation of SIA Provisions. The Amended SIA, and each provision
therein, unless otherwise modified in writing, is incorporated in this Assignment &
Amendment in its entirety and Assignee agrees and warrants that it assumes and is
bound by each obligation found in the Amended SIA in the same manner as Assignor
prior to this assignment.
-2-
F220
IN WITNESS WHEREOF, the parties hereto have executed this Assignment &
Amendment on 12- day of Moo, c-(,- , 20ol.
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
(760) 777-7075
Thomas P. Genovese
City Manager
ATTEST:
S. Greek
City Clerk
ASSIGNOR: MSG La Quinta Homes, LLC
21200 Burbank Blvd, Suite 300
Woodland Hills, CA 91367
Title: �/l.a,►uy,�-, � e'er` e�-
ASSIGNEE: Riviera Villas, LLC
300 E. State Street, Ste. 100
Redlands, CA 92373
By: First Pacifica Development Corp. a CA
Corporation, Manager
By: -�
Title: ,t?A �4&A
3 /g 16:1 -
ate
1- 9 -oq
Date
3— 5-04
Date
-3-
F220
¢ST AMERrc9
}
STATE OF CALIFORNIA }ss.
COUNTY OF Riverside }
On March 5, 2004 before me Constance Gorsuch
personally appeared B° xuo
1
personally known to me .
(or proved to me on the basis of satisfactory evidence) to be the person(s),whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS myA#d and official seal.
Signature
C NSTAKXX QiOR'UCH
Can�r>INe On # 1357687
Notary Pubk - CaWoWft
C01Y11h. Caimty
Jurlm
(This area for official notarial seal)
Title of Document Assignment and Assumption Agreement and Amendment to Subdivision
Date of Document 3/5/04 No. of Pages 3
Other signatures not acknowledged None
3008 (1/94) (General)
First Ampriran Titic [net jranrno r`n.+,nn—
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
} ss.
County of J
On N GW-C,,�\ k10, i before me, C,
Date ame and Title of Officer (e.g., "Jane Doe, Notary Pua
personally appeared
Names) of Signer(s)
ersonally known to me
❑ proved to me on the basis of satisfactory
evidence
to be the person(s) whose name(s) is/are
subscribed to the within instrument and
acknowledged to me that he/she/they executed
the same in his/her/their authorized
capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s)
acted, executed the instrument.
WITNE S my an nd official seal.
L-J1 - j S nature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of ocument: k A"-y ('2 19 Q t
� Ssbat�vi5�o✓� �.�Prw erg
Document Date: "5 Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
❑ Individual Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Attorney -in -Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
01999 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 - www.nationalnotary.org Prod. No. 5907 Reorder: Call Toll -Free 1-800-876-6827