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COUNCIL/RDA MEETING DATE: March 15, 2005
ITEM TITLE: Acceptance of Improvements Associated
with Parcel No. 29791, La Quinta Court
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Accept improvements to Parcel No. 29791, La Quinta Court, and authorize staff to
release performance securities upon receipt of warranty securities.
FISCAL IMPLICATIONS:
Maintenance and irrigation costs for this median landscaping are estimated to be
$1,100 annually, which will be included within the 2005/2006 Landscape and Lighting
District budget.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Parcel No. 29791 is located south of Highway 111, east of Washington Street, and
north of Simon Drive (Attachment 1). All improvements are now complete and all
obligations of the Subdivision Improvement Agreement have been satisfied.
Attachment 2 is a Table of Values indicating securities to be released after the City
receives the warranty securities.
S:\CityMgr\STAFF REPORTS ONLY\3-15-05\C14 PM 29791.doc
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
1. Accept improvements to Parcel No. 29791, La Quinta Court, and authorize staff
to release performance securities; or
2. Do not accept improvements to Parcel No. 29791, La Quinta Court, and do not
authorize staff to release performance securities; or
3. Provide staff with alternative direction.
Respectfully submitted,
J
thy R01-1a , P.E.
c Works ir for/City Engineer
Approved for submission by:
Z-�
Thomas P. Genovese, City Manager
Attachments: 1. Vicinity Map
2. Table of Values
S.\CityMgr\STAFF REPORTS ONLY\3-15-05\C14 PM 29791.doc
1 �'
ATTACHMENT 1
pRO,IECT SITE
47TH i AV
VICINITY MAP
NO scae
e 3
1L'�
ATTACHMENT 1
Table of Values
Parcel No. 29791
La Quinta Court
Performance Security
Improvement
Description
Current
Security
Proposed
Reduction
Warranty
Securit
Street Improvements/Utilities
$250,000
90%
1
$25,000
Total
1 $250,000
$25,000
Staff recommends the release of Performance securities upon receipt of Warranty
securities. Labor and Materials security was not required as part of the Subdivision
Improvement Agreement, therefore no Labor & Materials Security are to be released.
Release Warranty securities one year from the date of acceptance (March 15, 2006).
T:\PWDEPT\COUNCIL\2005\03-15-05\PM 29791.doc 4
1 �`f
CITY of LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
Parcel Map 29791
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this
_ /9 day of S!22,aa n/61 , 20 O a- ,
by and between JDD, LLC, a Washington 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 Parcel Map 29791 (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\Martinez\Tracts\agreements\29791.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) 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).
TAMDEMSTAMMartinez\Tracts\agreements\29791 .wpd Page 2 of 6
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).
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 Reauired. 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
T:\PWDEPT\STAFF\Martinez\Tracts\agreements\29791.wpd Page 3 of 6
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.
6. Completion of Imerovements. 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
T:\PWDEPT\STAFF\Martinez\Tracts\agreements\29791.wpd Page 4 of 6
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, 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\Martinez\Tracts\agreements\29791 .wpd Page 5 of 6
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written
above.
M 11 fill
r
ATTEST:
Date
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
a
ER:4 JDD LLC, A Washington Limited
Liability Co. (206)275-4130
By:
Date
Title: MA
By:
Title:
Reviewed and Ap
Approved as to F
Date
Date
J/ U
Date
T:\PWDEPT\STAFF\Martinez\Tracts\agreements\29791.wpd Page 6 of 6
Exhibit A
SECURITY - PARCEL MAP 29791
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.
The "Engineering & Plans" security will be released when the City has possession of complete, approved, original
plans, signed and sealed by a design professional(s), for all required improvements. The "No -Plan Contingency",
which may be utilized for any listed item or for other cost found necessary in the design or construction of the
required improvements, may be released in whole or part by the City Engineer, at any time after construction
plans are complete and the scope and nature of improvements are fully known. These releases shall be separate
from and in addition to the reductions discussed below.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total performance
security for the tract and shall not reduce total performance security below the amount necessary to complete the
Improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be
evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting
forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required tract improvements are complete
and accepted by the City Council.
Improvement Description
Performance
Washington Street Improvements
513,342
Simon Drive Improvements
53,850
Highway 111 Improvements
33,384
Grading
40,000
Domestic Water
215,410
Sanitary Sewer
3,002
Dry Utilities
47,003
Perimeter Landscaping
140,000
Construction Subtotal:
$1,045,991
Engineering & Inspection (10% of Construction)
104,599
Contingency (10% of Project)
115,059
Construction Total:
$1,265,649
Percent of Work Completed (70%)
(879,649)
City Assistance
(386,000)
Total Amount to Secure:
$250,000
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
On this 8th day of March, before me, the undersigned, a Notary Public in and for the State of
Washington, duly commissioned and sworn, personally appeared Dale F. Frank, Jr., to me known to be the
Manager of JDD, LLC, a Washington limited liability company that executed the within and foregoing
instrument, and acknowledged said instrument to be the free and voluntary act and deed of said corporation
for the uses and purposes therein mentioned; and on oath stated that he was authorized to execute the said
instrument on behalf of said corporation.
WITNESS my hand and official seal hereto affixed the day and r first ab Bitten.
[Print Na L
Notary Public in and for the State of
Washington
My conunission expires
OUTSTANDING BOND REPORT
Name: La Quinta Court / JDD, LLC
Parcel Map No. 29791
Date of Contract: N/A
Required Bond Amounts:
Street Improvement Security $250,000
Dates of Bond Reductions:
Outstanding Bonds:
Insurance Company: Comercia Bank
Amount:
Bond No.
$250,000 LOC#570315-04
$25,000 Check deposited in Finance
on 7/26/05
Date Cancelled/Released:
Replaced w/ warranty 7/26/05
3�a-14
RECEIPT City of La Quinta, 78-495 CalleTamp'po, P.O. Box 1504, La Quinta, CA 92247
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MEMORANDUM
TO: June Greek, City Clerk
FROM: Raoul Martinez, Assistant Engineer I /~
DATE: November 16, 2001
RE: La Quinta Court, Parcel Map 29791, Street Improvement Security
The developer of Parcel Map 29791, JDD, LLC, has submitted a Letter of Credit (No. 570315-04)
in the amount of $250,000.00 to be held by the City for off-site street improvement security during
construction of their project. Please hold this Letter of Credit in your development files which can
be returned to the developer upon completion of their project.
cc,: Parcel Map 29791 -file I
T:~PWDEFINgTAFlZhMarfinezqmemo 01~011116b.wlxt
NOV I 3
Lette~ Credit Division
COMERICA BANK
·
TELEX NO: 3772134 MNB INTL DET ONE DETROIT CENTER (MC3341)
FAX NO: 313 222 9115 500 WOODWARD AVENUE, 24TH FL.
SWIFT: MNBDUS33 DETROIT, MI 48226
BENEFICIARY: DATE OF ISSUE: NOVEMBER 9, 2001
CITY OF LA QUINTA
78-495 CALLE TAMPIC0
LA QUINTA,. CA-92253
WE HEREBY OPEN OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. 570315 -04 IN YOUR
FAVOR, FOR ACCOIINT OF JDD,LLC , 7900 SE 28TH STREET , SUITE 405 , MERCER ISLAND,
WA 98040 FOR A SUM NOT EXCEEDING USD 250,000.00 (TWO HUNDRED FIFTY THOUSAND AND
00/100'S U.S. DOLLARS ) AVAILABLE BY YOUR DRAFT(S) AT SIGHT ON COMERICA BANK,
WHEN ACCOMPANIED BY:
+ 1. A WRITTEN STATEMENT SIGNED BY ONE PURPORTING TO BE AN AUTHORIZED
REPRESENTATIVE OF CITY OF LA QUINTA READING AS FOLLOWS:
"WE CERTIFY THAT WE ARE DRAWING UNDER COMERICA BANK'S LETTER OF
CREDIT NO. 570315-04 BECAUSE JDD, LLC HAS FAILED TO SATISFACTORILY
COMPLETE THE STREET AND TRAFFIC IMPROVEMENTS FOR THE PROJECT
COMMONLY KNOWN AS LA QUINTA COURT LOCATED IN LA QUINTA, CA AND WE
DEMAND PAYMENT IN THE AMOUNT OF USD $ (SPECIFY AMOUNT) ".
+ 2. THE ORIGINAL OF THIS LETTER OF CREDIT AND ANY SUBSEQUENT AMENDMENTS
THERETO.
LETTER ~LJ"~CREDIT ~NO.~57031..~ -04 .
THIS LETTER OF CREDIT IS SUBJECT TO AND GOVERNED BY THE UNIFORM CUSTOMS
AND PRACTICE FOR DOCUMENTARY CREDITS OF THE INTERNATIONAL CHAMBER OF
COMMERCE, 1993 REVISION, PUBLICATION 500.
THIS ORIGINAL LETTER OF CREDIT AND ALL AMENDMENTS THERETO MUST BE SUBMITTED TO
US TOGETHER WITH ANY DRAWINGS HEREUNDER FOR OUR ENDORSEMENT OF ANY PAYMENTS
EFFECTED BY US AND/OR FOR CANCELLATION.
WE ENGAGE WITH YOU THAT EACH DRAFT DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS
OF THIS CREDIT WILL BE DULY HONORED ON DELIVERY OF THE DOCUMENTS AS SPECIFIED IF
PRESENTED AT THIS OFFICE ON OR BEFORE NOVEMBER 2, 2002.
YO/Ut~S VERY TRULY,
AUT~{ORi ZED SIGNATURE
OUTSTANDING BOND REPORT
Name: La Quinta Court / JDD, LLC
Parcel Map No. 29791
Date of Contract: N/A
Required Bond Amounts:
Street Improvement Security $250,000
Dates of Bond Reductions:
Outstanding Bonds:
Amount: Bond No. Date Cancelled/Released:
$ 250,000 LOC#570315-04