30903 Washington IIICITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
PARCEL MAP NO. 30903
OFF -SITE IMPROVEMENTS
THIS SUBDIVISION JVPROVEMENT AGREEMENT (the "Agreement") is made and entered into this
—Z T-- day of T U Ivy , 20 0 3 by
and between Washington Ill Ltd, 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 No. 30903 (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:
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1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
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 3.8., 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.
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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.
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6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90)
days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the
Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A.
Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall
constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this
agreement, to revise improvement security requirements as necessary to ensure completion of the improvements,
and/or to require modifications in the standards or sequencing of the Improvements in response to changes in
standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of
this agreement or Subdivider's obligations hereunder.
7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes,
act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be
extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for
completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the
request or conditionally approve the extension with additions or revisions to the terms and conditions of this
Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those
required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to
ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to
provide warranty security on completed Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments
in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the La Quinta Municipal
Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of
payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs
for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied
by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having
jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval,
and any required construction quality documentation not previously submitted.
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required
documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with
applicable City standards and specifications, and as provided herein, obligations required by the Conditions of
Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in Paragraph
11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council.
11. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer,
Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual
Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be
clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped by an
engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the
plans shall be resubmitted to the City Engineer.
12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one (1) year,
beginning on the date of final acceptance of the Improvements by the City Council, against any defective work or labor
done, or defective materials furnished, and shall repair or replace such defective work or materials.
13. Release of Security. City shall retain and release securities in accordance with the provisions of Section 3 of
this agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide a title
report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment security
released.
14. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been
performed within sixty (60) days after written notice of default from City, then City may perform the obligation, and
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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 attomeys' 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 attomeys' 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.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.
CITY: City of La Quinta
V,V\, '�' 6� (L,-
Thomas P. Genovese, City Manager
ATTEST:
COW:: t1- -50 1 R f4wi
SUBDIVIDER:
By: (:�j
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
4, CJ3
Date
Washington 111, �
c/o Jack Oldham, iagPartner
13692 Elmer Circle
Santa Ana, CA 92705
(949)877-2667
& -x 7 o3
Title: P<FS /bF1 T - dt,b 4 &Nv C / Ne . -4"F- t4L- fltc-"'C�
By:
Title:
AReviewed and Approved: K
mothy R. Jo a on,
Public Works Director/P Engineer
i
Approved as to Form:
City Attorn
Date
Date
6-19 .o3
Date
Date
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
ss.
County of
On , before me, L t �40 ,
Dat ��r— _ Name and Title of Offic r (e.g., "Jane Doe, Notary Public")
personally appeared
LISA KELL
Commission # 1327265
Notary Public - California y
Orange County
My Corm. Expirs:Oct 28, 2W5
Place Notary Seal Above
Name of Signer(}Q
❑ personally known to me
L?-`proved to me on the basis of satisfactory
evidence
to be the person( whose name(4 es
subscribed to the within instrument and
acknowledged to me that he/s ey executed
the same in his/h eir authorized
capacity(14), and that by his/hlo<eeir
signature on the instrument the person, or
the entity upon behalf of which the person($0
acted, executed the instrument.
WITJ!9my han and official seal.
o 0
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 Document:
Document Date: Number of Pages:
Signer(s) Other Than Named Above:
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Signer's Name: RIGAT
OF
❑ Individual Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
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EXHIBIT VALID ONLY IF INITIALED BY SIGNATUORY PARTI
(Developer) (city ff)
Exhibit A
SECURITY —PARCEL MAP NO. 30903
OFF -SITE IMPROVEMENTS
Except as otherwise provided herein, Subdivider shall furnish performance security and labor & materials security prior
to agendization of the Map for approval by the City Council.
Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory
Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as
specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance
security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and
shall not reduce total performance security below the amount necessary to complete the Improvements plus ten
percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted,
in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work
completed and the value thereof, shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required tract improvements are complete and
accepted by the City Council.
Improvement Description
Performance
Labor. & Materials
Drainage Improvements
$
1,750.00
$
1,750.00
Street Improvements
$
248,030.25
$
248,030.25
(Washington Street, Ave 47, Adams Street)
Sidewalk
$
132,154.00
$
132,154.00
Traffic Control
$
38,500.00
$
38,500.00
Subtotal of Improvements
$
420,434.25
$
420,434.25
Professional Fees, Construction (10%)
$
42,043.43
$
42,043.43
Subtotal with Soft Costs
$
462,477.68
$
4629477.68
Standard Contingency (10%)
$
46,247.77
$
46,247.77
Grand Total (Bond Amount)
$
508,725.44
$
508,725.44
0.
EXHIBIT VALID ONLY IF INITIALED BY SIGNATUORY PARTIE .eq D,_
Developer) (city S m
Exhibit A
SECURITY —PARCEL MAP NO. 30903
OFF -SITE IMPROVEMENTS
Except as otherwise provided herein, Subdivider shall furnish performance security and labor & materials security prior
to agendization of the Map for approval by the City Council.
Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory
Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as
specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance
security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and
shall not reduce total performance security below the amount necessary to complete the Improvements plus ten
percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted,
in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work
completed and the value thereof, shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required tract improvements are complete and
accepted by the City Council.
Improvement Description
Drainage Improvements
Street Improvements
(Washington Street, Ave 47, Adams Street)
Sidewalk
Traffic Control
Subtotal of Improvements
Professional Fees, Construction (10%)
Subtotal with Soft Costs
Standard Contingency (10%)
Grand Total (Bond Amount)
Performance
Labor & Materials
$
1,750.00
$
1,750.00
$
248,030.25
$
248,030.25
$
132,154.00
$
132,154.00
$
38,500.00
$
38,500.00
$
420,434.25
$
420,434.25
$
42,043.43
$
42,043.43
$
462,477.68
$
462,477.68
$
46,247.77
$
46,247.77
$
508,725.44
$
508,725.44
CITY OF LA QUIWA
SUBDIVISION IMPROVEMENT AGREEMENT
PARCEL MAP NO. 30903
ON SITE IMPROVEMENTS
CONSTRUCTION PHASE 2 TARGET IMPROVEMENTS)
THIS SUBDIVISWON IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this
31 Rf day of &� 20t�_ , by
and between Washington 111, Ltd, 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 No. 30903 ("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.
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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.
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 3.6., 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
TAProject Development Division\Development Projects\Agreements\SIA\SIAs completed\30903 ONSITE P2.doc Page 2 of 6
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 Subdividees 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 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,
TAProject Development Division0evelopment Projects'Agreements\SMSIAs Completed\30903 ONSITE P2.doc Page 3 of 6
waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this
Agreement or the Conditions of Approval.
6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90)
days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the
Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A.
Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall
constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this
agreement, to revise improvement security requirements as necessary to ensure completion of the improvements,
and/or to require modifications in the standards or sequencing of the Improvements in response to changes in
standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of
this agreement or Subdivider's obligations hereunder.
7. Force. Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes,
act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be
extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for
completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the
request or conditionally approve the extension with additions or revisions to the terms and conditions of this
Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those
required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to
ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to
provide warranty security on completed Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments
in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the La Quinta Municipal
Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of
payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs
for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied
by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having
jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval,
and any required construction quality documentation not previously submitted.
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required
documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with
applicable City standards and specifications, and as provided herein, obligations required by the Conditions of
Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in Paragraph
11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council.
11. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer,
Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual
Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be
clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped by an
engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the
plans shall be resubmitted to the City Engineer.
12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one (1) year,
beginning on the date of final acceptance of the Improvements by the City Council, against any defective work or labor
done, or defective materials furnished, and shall repair or replace such defective work or materials.
13. Release of Security. City shall retain and release securities in accordance with the provisions of Section 3 of
this agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide a title
report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment security
released.
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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:\Project Development DivisionDevelopment Projects%greementsOAS1As Completed\30903 ONSITE P2.doc Page 5 of 6
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.
CITY:
viv�c'-'� 0 _ . L
Thomas P. Genovese, City Manager
ATTEST:
va - -
VA►'�► 01NZ -I— Pj
SUBDIVIDER:
By:
Title:
By:
Title:
By:
Title:
Reviewed and Approved:
othy R. Jo sson, .
Public Works Director/City Engineer
Approved as to Fo '
ity Attom
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
Date
8 - %-63
Date
Washington 111, Ltd
c/o Jack Oldham, Operating Partner
13692 Elmer Circle
Santa Ana, CA 92705
(949)877-2667
Date
Date
lf�-I-03
Date
Date
Date
TAProject Development. Division\Development Projects\AgreementsOMSIAs Completed\30903 ONSITE P2.doc Page 6 of 6
4 EXHIBIT VALID ONLY IF INITIALED BY SIGNATUORY PARTIES:
veloper) (city dwm
Exhibit A
SECURITY - PARCEL MAP NO.30903
ON SITE IMPROVEMENTS
CONSTRUCTION PHASE 2 (TARGET IMPROVEMENTS)
Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory
Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as
specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance
security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and
shall not reduce total performance security below the amount necessary to complete the Improvements plus ten
percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted,
in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work
completed and the value thereof, shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required tract improvements are complete and
accepted by the City Council.
Improvement Description
Performance
Labor & Materials
Drainage Improvements
$
213,520
$ 213,520
Street Improvements
$
220,510
$ 220,510
Domestic Water
$
740,225
$ 740,225
Sanitary Sewer
$
318,890
$ 318,890
Perimeter Landscaping
$
166,000
$ 166,000
Power, Offsite & Onsite
$
81,809
$ 81,809
Monumentation
$
6,000
$ 6,000
Subtotal of Improvements
$
1,746,954
$ 1,746,964
Professional Fees, Construction (10%)
$
174,695
$ 174,695
Subtotal with Soft Costs
$
1,921,649
$ 1,921,649
Standard Contingency (10%)
$
192,165
$ 192,165
Grand Total (Bond Amount)
$
2,113,814
$ 2,113,814
CITY OF LA QuwTA
SUBDIVISION IMPROVEMENT AGREEMENT
PARCEL MAP NO. 30903
ON SITE IMPROVEMENTS
CONSTRUCTION PHASES 1 &3 (NON -TARGET IMPROVEMENTS)
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this
3i'Powt dayof J(ALy ,2063 ,by
and between Washington 111, Ltd, 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 No. 30903 ("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.
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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.
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).
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
TAProject Development Division\Development ProjectsWgreementASIAS1As Completed\30903 ONSITE P1 &P3.doc Page 2 of 6
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 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,
TAProject Development Division\Development Projects\Agreements\SIA\SIAs Completed\30903 ONSITE P18P3.doc Page 3 of 6
waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this
Agreement or the Conditions of Approval.
6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90)
days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the
Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A.
Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall
constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this
agreement, to revise improvement security requirements as necessary to ensure completion of the improvements,
and/or to require modifications in the standards or sequencing of the Improvements in response to changes in
standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of
this agreement or Subdivider's obligations hereunder.
7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes,
act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be
extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for
completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the
request or conditionally approve the extension with additions or revisions to the terms and conditions of this
Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those
required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to
ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to
provide warranty security on completed Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments
in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the La Quinta Municipal
Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of
payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs
for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied
by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having
jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval,
and any required construction quality documentation not previously submitted.
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required
documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with
applicable City standards and specifications, and as provided herein, obligations required by the Conditions of
Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in Paragraph
11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council.
11. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer,
Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual
Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be
clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped by an
engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the
plans shall be resubmitted to the City Engineer.
12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one (1) year,
beginning on the date of final acceptance of the Improvements by the City Council, against any defective work or labor
done, or defective materials furnished, and shall repair or replace such defective work or materials.
13. Release of Security. City shall retain and release securities in accordance with the provisions of Section 3 of
this agreement. Prior to the release of payment security, the City Engineer may require Subdivider to provide a title
report or other evidence sufficient to show claims of lien, if any, that may affect the amount of payment security
released.
TAProject Development Division\Development Projects\Agreements\SIA\SIAs Completed\30903 ONSITE P1&P3.doc Page 4 of 6
14. City Riaht 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 attomey'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.
TAProject Development Division\Development Projects\Agreements\SIA\SIAs Completed\30903 ONSITE P1 &P3.doc Page 5 of 6
IN WITNESS WHEREOF, the parties hereto. have executed this Agreement as of the day and year first written above.
CITY:
",-- 4� 4-NI.- -1
Thomas P. Genovese, City Manager
ATTEST:
SUBDIVIDER:
By:
Title:
By:
Title:
By:
Title:
IRReviewed andA roved:PPT othsso .ublic rector City Engineer
Approved as to Form•
City Attorn
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
k -G - 6 3
Date
9--of-03
Date
Washington 111, Ltd
c/o Jack Oldham, Operating Partner
13692 Elmer Circle
Santa Ana, CA 92705
(949)877-2667
1;-I,t33
Date
Date
TAProject Development Division0evelopment Projects\AgreementASIASIAs Completed\30903 ONSITE P1&P3.doc
Date
Date
Date
Page 6 of 6
EXHIBIT VALID ONLY IF INITIALED BY SIGNATORY PARTIE :
4(Deveioper) (City swn
Exhibit A
SECURITY — PARCEL MAP NO.30903
ON SITE IMPROVEMENTS
CONSTRUCTION PHASES 1 & 3 (NON -TARGET IMPROVEMENTS)
Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory
Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as
specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance
security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and
shall not reduce total performance security below the amount necessary to complete the Improvements plus ten
percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted,
in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work
completed and the value thereof, shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required tract improvements are complete and
accepted by the City Council.
Improvement Description
Performance
Labor & Materials
Drainage Improvements
$
107,190
$
107,190
Street Improvements
$
144,505
$
144,505
Domestic Water
$
237,810
$
237,810
Sanitary Sewer
$
46,210
$
46,210
Perimeter Landscaping
$
65,000
$
65,000
Power, Offsite & Offsite
$
446,000
$
446,000
Monumentation
$
9,000
$
9,000
Subtotal of Improvements
$
1,055,715
$
1,055,715
Professional Fees,Construction (10%)
$
105,572
$
105,572
Subtotal with Soft Costs
$
1,161,287
$
1,161,287
Standard Contingency (10%)
$
116,129
$
116,129
Grand Total (Bond Amount)
$
1,277,415
$
1,277,415
OUTSTANDING BOND REPORT
Name: Washington 111 Ltd.
Tract No. 30903
Date of Contract: July 31, 2003
Required Bond Amounts:
PH 1 &3 - On Site
Drainage
Streets
Water
Sewer
Peri. Landscaping
Power
Monumentation
Prof. Fees Construction
Stand. Contingency
PH 2 - On Site
Drainage
Streets
Water
Sewer
Peri. Landscaping
Power
Monumentation
Prof. Fees Construction
Stand. Contingency
Off Site
Drainage
Streets
Sidewalk
Traffic Control
Prof. Fees Construction
Stand. Contingency
Dates of Bond Reductions:
$ 107,190 performance/labor materials
$ 144,505 same
$ 237,810 same
$ 46,210 same
$ 65,000
same
$ 446,000
same
$ 9,000
same
$ 105,572
same
$ 116,129
same
$ 213,520
same
$ 220,510
same
$ 740,225
same
$ 318,890
same
$ 166,000
same
$ 81,809
same
$ 6,000
same
$ 174,695
same
$ 192,165
same
$ 1,750.00 same
$ 248,030.25 same
$ 132,154.00 same
$ 38,500.00 same
$ 42,043.43 same
$ 46,247.77 same
Outstanding Bonds and Bond Company: Insurance Co. of the West
Amount:
$1,277,415
$1,277,415
$2,113,814
$2,113,814
$ 508,726
$ 508,726
Bond No. Date Cancelled/Released:
141-58-60
same
184-06-45
same
184-06-44
same
Bond #141-58-60
Premium #17,106
SUBDIVISION IMPROVEMENTS
Parcel Map No. 30903
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map
No. 30903 , 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
Washington III, Ltd. hereinafter designated as ("principal")
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated 7 1 200) , and identified as
Parcel Map No. 30903 , 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 The Insurance Company of the West ,
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum
of ** DOLLARS ($1, 2 7 7 , 415 ) 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, shah in all things stand to and abide by, and weh 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 attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
** One Million Two Hundred Seventy -Seven Thousand Four Hundred Fifteen
F201- Pwkm mm Bond Pape 1 of 2
Bond #184-06-45
Premium $28,240
SUBDIVISION IMPROVEMENTS
Parcel Map No. 30903
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map
No. 30903 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
Washington III, Ltd. hereinafter designated as ("principal")
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated 7 31 , 200 3, and identified as
Parcel Map No. 30903 , is hereby referred to and made a part hereof; and
WHEREAS, said principal is required under the terms of said agreement to famish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and _ The Insurance Company of the West ,
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum
of ** DOLLARS ($ 2.113.814 ) 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 attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
**Two Million One Hundred Thirteen Thousand Eight Hundred Fourteen
F201- Pwb manoe Bond Pape 1 of 2
Bond #184-06-44
Premium $7,113
SUBDIVISION IMPROVEMENTS
Parcel Map No. 30903
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map
No. 30903 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
Washington III, Ltd. hereinafter designated as ("principal")
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated 7 31 , 200 1 and Identified as
Parcel Map No. 30903 , is hereby referred to and made a part hereof; and
WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and The Insurance Company of the West ,
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum
Of * * DOLLARS ($ S 08 , 7 2 6 ) 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 attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
** Five Hundred Eight Thousand Seven Hundred Twenty Six
F201- Perbmwice Bond
Pepe 1 of 2
P.O. Box 1504
78-495 CALLE TAMPICO
LA QUINTA, CALIFORNIA 92253
July 31, 2003
Target Corporation Property Development
Attn: Property Administration
1000 Nicollet Mall
Minneapolis, Minnesota 55403
ECEIVED AUG ' 12003
(760) 777-7000
FAX (760) 777-7101
Re: Bonds issued on behalf of Washington 111, Ltd., a California limited
partnership ("Developer") in favor of the City of La Quinta ("City") by
Insurance Company of the West ("Surety") and Set -Aside Letter issued by City
National Bank, a national banking association ("Bank") in favor of Surety
Gentlemen:
Please be advised that Developer has entered into that certain Subdivision Improvement
Agreement Parcel Map No. 30903 On Site Improvements (the "SIX") dated as of June 27, 2003,
between Developer and City for the completion of certain site improvement work as more
particularly described in the SIA (the "SIA Site Improvement Work"). The City acknowledges
that Developer has also entered into that certain Site Development Agreement (the "SDA")
between Developer and Target Corporation, a Minnesota corporation ("Target") dated as of July
�, 2003 for the completion of certain "Site Improvement Work" (as more particularly
described in the SDA). The SIA Site Improvement Work is a portion of the Site Improvement
Work to be performed by Developer under the SDA. Surety has issued those certain
performance and labor and material bonds ("Bonds") in favor of City to secure Developer's
obligations for the lien -free completion of the SIA Site Improvement Work under the SIA.
Copies of the Bonds are attached hereto as Exhibit A, to secure lien -free completion of the SIA
Site Improvement Work.
City agrees to give concurrent notice to Target if Developer defaults under the SIA by
failing to complete the SIA Site Improvement Work and to give Target an additional thirty (30)
days after Developer's cure period of sixty (60) days expires to elect upon written notice to City
to take over the completion of the SIA Site Improvement Work ("Target Cure Period"). If
Target elects to take over the completion of the SIA Site Improvement Work prior to the
expiration of the Target Cure Period and diligently pursues such work to completion, then City
agrees that (a) during the period that Target is performing the SIA Site Improvement Work not to
take any action that would cause the Surety to draw on the ICW Set -Aside Letter (as hereinafter
defined), and (b) upon the completion and City approval of the SIA Site Improvement Work by
Target, the City shall provide Surety with written notice of the City's exoneration of the Surety's
obligations under the Bonds, thereby causing the Surety to release its interest in the set -aside
7/31 /0342789\2541900
letter issued by City National Bank, a national banking- association ("Bank"), in favor of Surety
(the "ICW Set -Aside Letter"). The Bank has issued that certain back up set aside letter (the
"Target Backup Set -Aside Letter) in favor of Target in the amount of the Bonds, which shall
only become effective upon the termination of the ICW Set -Aside Letter and the exoneration of
the Bonds. The Target Backup Set -Aside Letter shall be in the original amount of the ICW Set -
Aside Letter; provided, however, in no event shall the amount set aside and available to Target
under the Target Backup Set -Aside Letter be greater than the funds remaining available and
unused under the ICW Set -Aside Letter on the date the ICW Set -Aside Letter is terminated and
the Bonds are exonerated. Target acknowledges that its right to perform the SIA Site
Improvement Work and draw upon the Target Backup Set -Aside Letter are subject to the terms
and conditions of the SDA and the Target Backup Set -Aside Letter.
This letter and the consents attached hereto may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of which, when so
executed and delivered shall be an original, but also such counterparts shall together constitute
one and the same instrument.
City of La Quinta
By:
Thomas P. Genovese, City Manager
APPROVED AS TO FORM
By.
M. Katheria Jenson, City A ey
AGREED AND ACCEPTED
THIS L DAY OF &AnJ1aC , 2003
Target Corporation, a Minnesota corporation
By:
- i
Name:
Title: '
Target Stores
42789\2541900 7/31 /03
Improvement Work by Target, the City shall provide Surety with written notice of the City's
exoneration of the Surety's obligations under the Bonds, thereby causing the Surety to release its
interest in the set -aside letter issued by City National Bank, a national banking association
("Bank"), in favor of Surety (the "ICW Set -Aside Letter"). The Bank has issued that certain
back up set aside letter (the "Target Backup Set -Aside Letter) in favor of Target in the amount of
the Bonds, which shall only become effective upon the termination of the ICW Set -Aside Letter
and the exoneration of the Bonds. The Target Backup Set -Aside Letter shall be in the original
amount of the ICW Set -Aside Letter; provided, however, in no event shall the amount set aside
and available to Target under the Target Backup Set -Aside Letter be greater than the funds
remaining available and unused under the ICW Set -Aside Letter on the date the ICW Set -Aside
Letter is terminated and the Bonds are exonerated. Target acknowledges that its right to perform
the SIA Site Improvement Work and draw upon the Target Backup Set -Aside Letter are subject
to the terms and conditions of the SDA and the Target Backup Set -Aside Letter.
This letter and the consents attached hereto may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of which, when so
executed and delivered shall be an original, but also such counterparts shall together constitute
one and the same instrument.
City of La Quinta
I�
Tom Genovese, City Manager
APPROVED PTO FORM
By:
M. Kathe4ne Jenson, C' ttorney
AGREED ND ACCFPI�"E"D
THIS ��AY OF F('b �> 2003
Target Corporation, a Minnesota corporation
1:1
ame:
Target Corporation
42789\2541900 7/31/03
EXHIBIT "A"
Bonds
See attached.
7/31 /0342789\254190v7
SUBDIVISION IMPROVEMENTS
Parcel Map No. 30903
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
Bond #.184-06-44
Premium $7,113
Py
THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map
No. 30903 . , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
Washinzton Ill, Ltd. _ hereinafter designated as ("principal")
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated 7 31 , 200 - and identified as
Parcel Map No. 30903 , is hereby referred to and made a part hereof; and
WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and The Insurance Company of the West ,
as surety, are held and firmly bound unto the City of La Quinta hereinafter called (".City"), in the -penal sum
Of * * DOLLARS ($ 5089726 ) 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 became
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 attorneys fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and Included in any Judgment
rendered.
** Five Hundred Eight Thousand Seven Hundred Twenty Six
F201 - Pedomatroe Bond Page 1 of 2
Bond #141-58-60
Premium #17,106
SUBDIVISION IMPROVEMENTS
Parcel Map No. 30903
PERFORMANCE BOND
r„ KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map
No. 30903 , 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
Washington III, Ltd. " ")
have entered into an agreement whereby hereinafter designated as (principal
9 y principal agrees to install and complete certain designated public
Improvements, which said agreement, dated 7 1 200J. and identified as
Parcel Map No. 30903 , 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 The Insurance Company of the West ,
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum
Of ** DOLLARS ($1, 2 7 7 , 415 ) 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 attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
** One Million Two Hundred Seventy -Seven Thousand Four Hundred Fifteen
F201- P8d"mWM Bond
Page 1 of 2
SUBDIVISION IMPROVEMENTS
Parcel Map No. 30903
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
Bond #184-06-45
Premium $28,240
COPY
THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map
No. 30903 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
Washington Ill, Ltd. hereinafter designated as ("principal")
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated 7_/ 31 _, 200 3, and identified as
Parcel Map No. 30903 , is hereby referred to and made a part hereof, and
WHEREAS, said principal is required under the terns of said agreement to furnish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and The Insurance Company of the West ,
as surety, are held and firmly bound unto the City of La Quinta hereinafter cal("City"), in the penal sum
of ** DOLLARS ($ 2.113.814 ) 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 there* there
shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
**Two Million One Hundred Thirteen Thousand Eight Hundred Fourteen
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