2004 - 31681-1 Coral Option I, LLC - SIA On-Site & Off-SiteCOUNCIL/RDA MEETING DATE: July 1, 2008
ITEM TITLE: Acceptance of On -Site and Off -Site
Improvements Associated with Tract Map No. 31681-1,
Andalusia, Coral Option 1, LLC
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Accept on -site and off -site improvements associated with Tract Map No. 31681-1,
Andalusia, Coral Option 1, LLC and authorize staff to release performance securities.
Direct staff to release labor and materials securities ninety (90) days after City Council
acceptance of the improvements.
FISCAL IMPLICATIONS:
Acceptance of the off -site improvements will impact the General Fund as follows:
Catch basin maintenance is estimated to be $1,000 annually, which will be
incorporated into the Landscape and Lighting Operating Budget. Street sweeping
for the additional curb and gutter is included in the City's operating budget.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Tract Map No. 31681-1, Andalusia, is located east of Madison Street, west of Monroe
Street, south of Avenue 58, and north of Avenue 60 (Attachment 1). The
improvements include curb and gutter, sidewalk, curb ramps, storm drain, catch
basins, landscaping, signing, striping, and asphalt concrete pavement. All obligations
of the Subdivision Improvement Agreement (SIA) and the Conditions of Approval have
been satisfied. Attachment 2 indicates the amount of the warranty security.
169
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
Accept the on -site and off -site improvements associated with Tract Map
No. 31681-1, Andalusia, Coral Option 1, LLC and authorize staff to
release performance securities. Direct staff to release labor and materials
securities ninety (90) days after City Council acceptance of the
improvements; or
2. Do not accept the on -site and off -site improvements associated with
Tract Map No. 31681-1, Andalusia, Coral Option 1, LLC and do not
authorize staff to release performance securities. Direct staff to release
labor and materials securities ninety (90) days after City Council
acceptance of the improvements; or
3. Provide staff with alternative direction.
Respectfully submitted,
J
Timothy R. Jon 00n, P.E.
Public Works Director/City Engineer
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1. Vicinity Map
2. Warranty Security Exhibit
170
ATTACHMENT 1
TM 31681-1 ANDALUSIA
NAP
Tract No
ANDALUSIA 31681 1
w
� W
AVENUE
VICINITY MAP
NOT TO SCALE
CITY COUNCIL MEETING: July 1, 2008
ITEM TITLE: Acceptance of On -site and Off -site Improvements Associated with Tract Map No.
31681-1, Andalusia, Coral Option 1, LLC
APPLICANT: Mr. Nolan Sparks, Coral Option 1, LLC
171
ATTACHMENT 2
WARRANTY SECURITY
Tract Map No. 31681-1
Development Name: Andalusia
ON -SITE IMPROVEMENTS
Performance security'
Improvement Description
Labor &
Materials'
Current
Amount
Proposed
Reduction
WARRANTY
AMOUNT
Grading
$17,290
$17,290
90%
$1,729
Street Improvements
$273,160
$273,160
90%
$27,316
Domestic Water
$855,290
$655,290
90%
$85,529
Sanitary Sewer
$265,730
$265,730
90%
$26,573
Storm Drain
$81,710
$81,710
90%
$8,171
Dry Utilities
$110,000
$110,000
90%
$11,000
8 FT Wide Pedestrian Tunnel
$65,000
$65,000
90%
$6,500
12 FT Wide Pedestrian Tunnel
$70,000
$70,000
90%
$7,000
Monumentation Contingency
$0
$12,450
100%
$0
Standard Contingency 10%
$173,820
$173,820
100%
$0
Professional Fees, Design 10%
$191,200 1$191,200
100%
$0
Professional Fees, Construction 10%
$191,200
$191,200
1 100%
$0
No Plans Contingency (25%)
$478,000
$478,000
1 100%
$0
Totals
$2,772,400
$2,784,850
1 -
173,818
OFFSITE IMPROVEMENTS
Performance Security'
Improvement Description
r&
laisz
Original
Amount
Proposed
Reduction
WARRANTY
AMOUNT
Avenue 58 improvements
Street
810
$355 810
90%
$35 581
Storm Drainage
80
$9,380
90%
$938
Si nin and Stri in
60
$11 760
90%
$1 176
Street Lighting00
R$256,040
$40,400
90%
$4,040
San itary Sewer
560
$683,560
90%
$68,356
Perimeter Landscaping
410
$156,410
90%
$15,641
Perimeter Wall
90
$36,590
90%
$3,659
Water
040
$256,040
90%
$25,604
Standard 10% Contin enc
000
$155,000
100%
$0
Professional Fees, Design 10%
500
$170,500
100%
$0
Professional Fees, Construction 10%500
$170,500
100%
$0
No Plans Co Mingency, 25%
$426,240
1 $426,240
100°/u
$0
Totals[2,472,190
2,472,1 0
-
$iS4,995
' Performance Security shall be released immediately upon City Council acceptance
2 Labor & Materials Security to remain in place for 90 days after City Council
acceptance of improvements.
3 WARRANTY SECURITY (10% of Original Performance Security) shall be received
by the City prior to being placed on the agenda for City Council.
17?
CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 31681-1
ON -SITE IMPROVEMENTS
THIS SUBDIVISION, IMPROV14MENT AGREEMENT (the "Agreement") is made and entered into this
712 day of 2001-
by and between CORAL OPTION I, LLC. A DELAWARE LIMITED LIABILITY COMPANY
hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of
California, hereinafter referred to as "City."
RECITALS:
A. Subdivider has prepared and filed a final map or Tract map (the "Map") of a unit of land in the City of
La Quinta, County of Riverside, which unit of land is known as Tract No. 31681-1 (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.
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B. Improvement security shall conform to 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 Tract 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
the of
performance security shall equal One Hundred Percent (100 /o) of the estimated cost
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, Tract
map or waiver of Tract 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
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security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as follows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.13., which require the establishment of evidence of the reliability of the
surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars
($150.00).
2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will
prepare lien agreements and subordination agreements, administer valuation of the real
property and administer the agreements over the life of the lien, all of which require legal
assistance and financial advice, Subdivider shall pay to City an administration fee of One Half
of One Percent (0.5%) of the estimated cost of the improvements secured but not less than
Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory
Improvements shall remain in place until the Participatory Improvements are constructed and
actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost
of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of
Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty
security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in
replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit
said cash within 30 days of the date of the written demand from City, City may present a written
demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City
the lesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or become wholly or partially invalid for any reason,
including non-payment of premiums, modifications of this Agreement and/or expiration of the time
for performance stated in this Agreement, without express authorization from City unless the
surety provides City with sixty (60) days written notice by registered or certified mail, return
receipt requested.
G. Security shall be released in the following manner:
1) Performance security shall be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of paragraph B.
2) The City Engineer may authorize partial reduction of performance security as work
progresses, upon application by Subdivider. However, no such reduction shall be for an
amount less than Ten Percent (10%) of the total performance security provided for the faithful
performance of the act or work. In no event shall security be reduced below that required to
guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%).
The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) Participatory Improvement security shall be released upon payment by Subdivider of
Subdivider's share of the cost or estimated cost of the Participatory Improvements.
4) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the
Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision
Map Act shall apply.
5) Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Tract Improvements. However, if at the end
of the one-year warranty period, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the warranty, warranty
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security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer..
4. Permits B1 uired. Prior to commencing any phase of work, Subdividerunder a obtain
permiallr permits
required for that phase of work and pay all required fees: Work performed
shall comply with all provisions of the required permits.
5. Off -site improvements. When the construction of one or more o the itmprove v improvements
shall use requires is
necessitates the acquisition of real property not owned by Subdivide y,
best efforts purchase such real property at a reasonable price. In the event that .Su livid r is
unsuccessful, despite its best efforts, to acquire such
heeaal Praoperty. perty t City may, but is not required to,
may request in writing that City aer
ttempt to acquire P City so
agree to attempt to acquire such real property on behalf of Subdivider. Ifto the CitygAttorn
9
separate agreement shall provide that Subdividey. Sa d
Subdivider shall enter a separate written agreesent in a form acceptable
advance to City One Hundred Fifty Percent (150%)
shall
of the appraised fair market value of the real property. Any unexpended portion the ealaid advance
erty shall be
be refunded to Subdivider. Any additional funds of said s real propertyt Subdivider. In no event shall acquisition
paid by Subdivider to City upon the conveyance or
the failure of Subdivider or City to acquire such real property excuse, waive,
ai e, this to reise terminate
or the
Subdivider's obligation to construct the applicable improvement pursuant9
Conditions of Approval.
6. Com letion of improvements. Subdivider shall begin construction of the improvements nths he awithinroval ninety s
(90) days and shall complete construction within twelve completed at water date, as determined by the
Agreement. Portions of the Improvements may b p
CityEngineer or as set forth in Exhibit A. Failure by Subdivider to begin or corn
cause fpoletCi{onsnruitsiosole
9
the Improvements within the specified time eclare Subdivider�n default of this agreement, to revise
discretion and when it deems necessary,
improvement security requirements as necessary to ensure completion of nimprove
p ve e ments
changes
to require modifications in the standards or sequencing of the Improvements
in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdividers obligations hereunder.
7. Force Maieure. In the event that Subdivider is unable to perform within the time limits
i ahe si affected
due to
strikes, act of God, or other events beyond Subdr s control, the time limits
tio
by such events will be extended by the period o such
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
additions uoe rdevis otnsnt nthe
ay
approve or deny the request or conditionally approve the extension
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities,
simiextillar i n.orm and substance
of the
to those required in SECTION 3 hereinabcove
of andperiod
yment for Improvements that remain
securities shall be sufficient to ensure the performance
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 bdi ision Map Act
proof that
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer
the monuments have been set, evidence of payment and receipt hereof by monuments set hen publ c iner or surveyor
setting the monuments, and intersection monument tie -outs
10. Final Acceptance of Improvements. At the completion of construction and priorto
o acceptance
of shall
the
Improvements by City, Subdivider shall submit a request for final approvalbyCity.
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.
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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 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.
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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 d
shall not operate as a waiver of any default or of any such rights or remedies provide for
hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
60/777-7075
/Thomas P. Genovese, City Manager Date
ATTEST:
Subdivider
Coral Option I, LLC
• Qo
La Quinta, CA 92253 1 zi4-1
04y�'
By: �2 Date
Title: -1(• P—?2
By:
Title:
Date
Reviewed an Approved:
( o a S—
c
AA AAPtm
(.' �iEngi�/fDate
ApVPved as to Form:
l�
y to ey Date
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Exhibit A
ON -SITE SECURITY - TRACT MAP NO. 31681-1
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
Grading
$
17,290
$
17,290
On Site Street Improvements
$
273,160
$
273,160
Domestic Water
$
855,290
$
855,290
Sanitary Sewer
$
265,730
$
265,730
Storm Drain
$
81,710
$
81,710
Dry Utilities
$
110,000
$
110,000
Pedestrian Tunnel (8ft Wide)
$
65,000
$
65,000
Pedestrian Tunnel (12ft Wide)
$
70,000
$
70,000
Totals
$
1,738,180
$
1,738,180
Standard 10% Contingency
$
$
173,820
1,912,000
$
$
173,820
1,912,000
Total Construction Cost
Professional Fees, Design 10%
$
191,200
$
191,200
Professional Fees, Const 10%
$
191,200
$
191,200
No Plans Contingency 25%
$
478,000
$
478,000
Special Monumentation Contingency
$
12,450
Bond Amount
$
2,784,850
$
2,772,400
Improvement Description Performance Labor & Materials
Monumentation $ 20,930 $ -
Totals $ 20,930 $ =
See On -Site Special Monument Cont $ $ -
Total Construction Cost $ 20,930 $
Bond Amount $ 20,930 $
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
ss.
County of �� S f
04
On 9' before me A/6eI &-E"'A;
i ,�U
Date /YM_ Narne'and Title of Officer (e.g., 'Jane Doe, Notary Public")
personally appeared ,&'i1%/n
Name(s) bf Signer(s)
,-personally known to me
❑ proved to me on the basis of satisfactory
evidence
MARCIA K. GREEN
Commission # 1378
904
No#ary Pulb6lc - Ccaf #�►
IRivclrsi& ��
,rant. ;nes0II7,
to be the person(k whose name(&) is/ft
subscribed to the within instrument and
acknowledged to me that he/sl1e,(tbey executed
the same in his/her/their authorized
capacity(r&Q, and that by his/hW/tt%r
signatureKon the instrument the person% or
the entity upon behalf of which the person()
acted, executed the instrument.
WITNESS my hand and offic' eal.
t
Signature of Public
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Description of Attached D cument
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Document Date: t? ` d ? ` D T Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
❑ Individual Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Attorney -in -Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
01999 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationalnotary.org Prod. No. 5907 Heoraer: can ion-rree i-esuu-oto-nazi
CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 31681-1
OFF -SITE IMPROVEMENTS
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "A reement") is made and entered into t 2is
`" - a day of �Yi"'" COMPANY
by and between CORAL OPTION I, LLC. A DELAWARE LIMITED LIABILITY C
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 Tract map (the "Map") of a unit of land in the City of
81-1
he
La Quinta, County of Riverside, which unit of land is known as Tract la . 316nmentt Coder (the
pursuant to the provisions of Section 66410, et sec. of the Califo
"Subdivision Map Act").
BPP
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, constructed,utili,la dscapnderthis
and other improvements required to be constructed or agreed
to 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 Subdividers 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 let on ntee and and warranty
ance of the
Improvements for a period of one year following the comp
Improvements. Subdivider shall furnish performance and payment security prior to and as a
condition of City Council approval of the Map. Subdivider shall provide twoarrranty or security
concurrently with
Improvements are complete and accdby the City Warranty Council
securi y shall not be required for
the final release of performancesecurity.
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 Tract 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, Tract
map or waiver of Tract 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
T:\Project Development Division0evelopment Projects\AgreementsWA\.SIAs in Progress\Coral Mountain 31681-110FFSITE_SIA.doc
2or7
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 the real
will
prepare lien agreements and subordination agreements, ls of the lien, aellrofawh whon of ich require legal
property and administer the agreements over
assistance and financial advice, Subdivider shall pay to City an administration fee of One Half
of One Percent (0.5%) of the estimated cost of the improvements secured but not less than
Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory Improvements, if any, are identified in Exhit A.Secrare con Participaructedand
ry
Improvements shall remain in place until the Participatory improvements
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 reimbursementsecurity and Subdivider
of
Subdivider's share of the cost of the Participatory Improvements. Payment Y
ty
security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in
If Subdivider fails to deposit
replacement of security guaranteeing Participatory Improvements
said cash within 30 days of the date of the written demand from City, City
iSu *a shall pay esent a or tt Y
demand to Subdivider's Surety for payment of said cash and Subdivider'sY
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
station ofor any f the time
reasont
including non-payment of premiums, modificationou�ex
f isAgreement and/or e
for performance stated in this Agreement, with press 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 shad be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of paragraph B.
9
2)
The CityEngineer 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
f sTen Percent b(10 or
The City Engineer shall not allow more than two partial reductions o Y
any improvement agreement.
3) Participatory Improvement security shall be released upon payment bySubdivider 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 by thematerials
Council, the
all be
released in full 90 days after final acceptance and/or approval
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 rear if ater fend
inal
acceptance or approval by the Cityf all
orcmoreroutstanding requests by City for
he
of the one-year warranty period, there are on
performance of work or provision of materials under the terms of the warranty, warranty
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TAProjec► Development Division\Development Projec►s\Agreements\SIA\SIAs in Progress\Coral Mountain 31681-1\OFFSITE_SIA.dx
security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer.
4. Permits Re_guire_d• 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.
Off -site improvements. When the construction of one or more of the improvementsSubdivider shall use its
5. �
necessitates the acquisition of real property not
eeasonaned b reasonable In rthe event that Subdivider is
best efforts purchase such real property a
unsuccessful, despite its best efforts, to acquire such real property at a reasa n but is ice,not rSubdr eider
may request in writing that City attempt to acquire such real property. City y,
agree to attempt to acquire such real .property on behalf of Subdivider. IfCity o grew, City
and
d
Subdivider shall enter - a separate written agreement in a form acceptable to he Y o
separate agreement shall provide that Subdivider advance to City One HuntFiftyred 'on of advance shall
of the appraised fair market value of the real property. Any unexpende po
be refunded to Subdivider. Any additional funds required for acquisition of the al rne eproperty entall be
paid by Subdivider to City upon the conveyance of said real property to Subdivider
all
the failure of Subdivider or City to acquire such real property excuse, waive,
otherwise
torminate or the
Subdivider's obligation to construct the applicable improvement pursuantto thisAgreement
Conditions of Approval.
6. Completion of Improvements. Subdivider shall begin construction of the Improvements withinval ninety s
(90) days and shall complete construction within omv�eted at seater dater as deterthe mined by the
Agreement. Portions of the Improvements may be p
City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or
complletC'tonstru tioy, in itssol f
the Improvements within the specified time periods shall constitute cause
of
discretion and when it deems necessary, to declare Subdivider in defaultthis
to and/or
revise
improvement security requirements as necessary to ensure completionof the Pr
to require modifications in the .standards or sequencing of the improvements ad failure shall not otherwise
in standards or conditions affecting or affected by the Improvements.
affect the validity of this agreement or Subdivider's obligations hereunder.
7. Force Ma6eure. In the event that Subdivider is unable to perform within
limits efoe obligationsmlimits
affected
due to
strikes, act of God, or other events beyond
frcontrol, the time
by such events will be extended by theperiod
8. Time Extension. Subdivider may make application in writing to the City Council for
n extension of
time for completion of the Improvements. The City Council, the exin its tens on wiand th additions or revisions to the
cretion, may
approve or deny the request or conditionally approve
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities,
similar iextension.orm The value of the
and substance
to those required in SECTION 3 hereinabove, to cover the period
securities shall be sufficient to ensure the performance of and payment for improvements n tcompleted in
incomplete at the time of the extension, and to provide warranty security Y o
Improvements.
9. Survey Monuments. Before
Subdivider shall place survey
monuments in accordance with the p final apPovisions of Sections oval of street r66495,�et�sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer
engineer o proof that
the monuments have been set, evidence of payment and receipt thereof by the erg
yor
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 shale)
Improvements y City, Subdivider shall submit a request for final approvalby tY
be accompanied by any required certifications from Subdivider's engineers t improvements aeq o al
letters from other agencies having jurisdiction over and approval authority for
ed
by this Agreement or the Conditions of Approval, and any required construction quality documentation
not previously submitted.
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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 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.
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9
C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
This Agreement shall be governed by and interpreted with respect to the laws of the State of
D. g
California.
nt, the prevailing
E.
In the event of any dispute between the parties with respect t0 thisfees fromtheEnon prevailing
party shall be entitled to prompt payment of its reasonable attorneys
party.
n failure or delay by either party in asserting any of its rights and remedies o provided for
any default
F. Any
shall not operate as a waiver of any default or of any such rights or remedies
hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
i j -J.O �.-CAS► .
Thomas P. Genovese, City Manager
Date
ATTEST:
City Clerk
Subdivider
Coral Option I, LLC 47o god 11
40
La Quinta, CA `� D 2
By: Date
Title: r/— ?'e W-��P
By: Date
Title:
Reviewed and Approved:
City ngine Date
ed a o or
i Atto ey Date
T:\Project Development Division0evelopment ProjectsWgreements\,S1A\SIAs in Progresslcoral Mountain 31681.1\0FFSlTE_SlA.doc
Exhibit A
OFF -SITE SECURITY -TRACT MAP NO. 31681-1
improvements designated as "Participatory" have been or will be constructeby
ofhersreleased b City
for
Participatory Improvements shall remain in place indefinitely until called upon o
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 ofan ten etwo partial of releases
of
performance security. Partial releases shall be for not al performance security nt (below the amount
performance security for the tract and shall not reducal
e total p
necessary to complete the Improvements plus ten percent (10%) of the original I art, b amount.
the City Engineer.
of performance security will be evaluated and may be granted, in whole p Y
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
Avenue 58 Improvements
$
355,810
$
355,810
Street
$
-
$
-
Sidewalk (8ft) and Ramps
$
9,380
$
9,380
Storm Drainage
$
1.1,0
$
11,760
Signing and Striping
$
40,400
$
40,400
Street Lighting
$
683,560
$
683,560
Sanitary Sewer
$
1,0
$
156,410
Perimeter Landscaping
$
36
6,590
$
36,590
Perimeter Wall
$
256,040
$
256,040
Water
$
1,549,950
$
1,549,950
Totals
Standard 10% Contingencey
$
$
155,000
1,704,950
$
$
155,000
1,704,960
Total Construction Cost
Professional Fees, Design 10%
$
170,500
$
$
170,500
170,500
Professional Fees, Const 10%
$
170,500
No Plans Contingency 25%
$
426,240
$
426,240
$
294720190
$
294729190
Bond Amount
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7of7
ti j
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
ss.
County of
On
Date
personally appeared
before me,
.;
MARCIA K. GREEi 4
.Qr Commission # 13789C�4
�` ` Notary Public - California
z 2>
Z Riverside County
My Comm. E\ti 2`Tf)
h3
& .07-.4eYr)%d1
Name and Tile of Officer (e.g., "Jane UFbe, 14otary Public")
�S
ame(s of Signer(s)
W-personally known to me
❑ proved to me on the basis of satisfactory
evidence
to be the personW whose nameN) isldv,
subscribed to the within instrument and
acknowledged to me that he/shq/tNy executed
the same in his/h'NTAKlpir authorized
capacity(i§), and that by his/hWth*
signature'N) on the instrument the person(§ or
the entity upon behalf of which the person(sk
acted, executed the instrument.
W TNESS my hand and offi ' I seal.
Signature of o ry 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
TI . • • 1P
Title or Type of Document:
Document Date: % ? oo 51
vLs
Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer
Signer's Name:
❑ Individual Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Attorney -in -Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
01999 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationalnotary.org Prod. No. 5907 Reorder: Call Toll -Free 1-800-876-6827