2005 - 31202-4 Oak Tree Industries - SIA On-Site (CLOSED)CITY MEETING DATE: February 18, 2014
ITEM TITLE: ACCEPT ON -SITE IMPROVEMENTS
ASSOCIATED WITH TRACT MAP NO. 31202 -4,
RANCHO SANTANA
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 2
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Accept the on -site improvements associated with Tract Map No. 31202-4, Rancho
Santana, and authorize staff to release the performance security.
EXECUTIVE SUMMARY:
• Rancho Santana is a residential development located south of Avenue 52
and west of Monroe Street (Attachment 1).
• The developer, Oak Tree Industries, Inc., has completed all obligations of the
On -site Subdivision Improvement Agreement and has requested release of
the performance security.
• Staff has verified satisfactory completion of these improvements and
recommends acceptance of the on -site improvements.
FISCAL IMPACT:
None.
BACKGROUND /ANALYSIS:
The developer of Rancho Santana has completed all on -site improvements required
by the conditions of approval for Tract Map No. 31202 -4. The on -site
improvements include asphalt concrete pavement, curb and gutter, curb ramps,
sidewalks, storm drain, catch basins, potable water and sewer improvements, dry
utilities, landscaping, signing, street striping, and survey monumentation. No off-
MA
site improvements were required as part of this phase of the project. Staff has
inspected the improvements and verified that they meet City standards.
ALTERNATIVES:
Acceptance of these improvements is a ministerial action necessary for the release
of the on -site improvement security. Since the improvements have been inspected
and have been found to meet City standards, staff does not recommend any
alternatives.
Report prepared by: Edward J. Wimmer, P.E., Principal Engineer
Report approved for submission by: Timothy R. Jonasson, P.E.
Public Works Director /City Engineer
Attachment: 1. Vicinity Map
28
ATTACHMENT 1
TM 31202 -4 RANCHO SANTANA
VICINITY MAP
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HWY 111
HWY 111
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CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 31202-4
ON -SITE IMPROVEMENTS
THIS SUBDIVI IQN IMPROVEMENT AGREEMENT (the "Agr ment") is made and entered into this
t day of G4 f
�OpS by and between OAK TREE INDUSTRIES, IN a CALIFORNIA CORPORATION
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. 31202-4 (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 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
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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 3.6., 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.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 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.
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.
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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
shall not operate as a waiver of any default or of any such rights or remedies provided 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
760/777-7075
02o O 5
homas P. Genovese, City Manager Da
DEVELOPER ADDRESS
Oak Tree Industries, Inc.
4335 E. Lowell St Ste G
Ontario, CA 91761
- Z �
By: Date
Title: James Rankin, President
'7-12-pr
By: Date
Title: Kevin Walsh, Vice President
Reviewed and Approved:
C' Engi a Date
;pp' d as to F m:
Cy Atto ey Date
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Exhibit A
ON -SITE SECURITY 3 TRACT MAP NO. 31202-4
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
$
$
71,020
$
$
71,020
Drainage
Street Improvements
$
222,710
$
222,710
Domestic Water
$
187,220
$
$
187,220
56,420
Sanitary Sewer
$
$
56,420
72,000
$
72,000
Dry Utilities
$
4,000
$
Monumentation
$
613,370
$
609,370
Totals
Standard 10% Contingency
$
61,340
$
$
60,940
670,310
Total Construction Cost
$
674,710
Professional Fees, Design 10%
$
67,470
$
$
67,030
67,030
Professional Fees, Const 10%
$
67,470
Bond Amount
$
809,650
$
804,370
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ALL PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
}
)SS.
On July 12, 2005 before me, CYNTHIA ANN DIAZ, NOTARY PUBLIC personally
appeared Kevin Walsh, personally known to me to be the person whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his authorized capacity, and that by his signature on the instrument the person,
or the entity upon behalf of which the person acted, executed the instrument.
CYITiI Aiw MAZI
WITNES my hand an off' ial sea.
LJY�
�Wf�n
S ig n at (NOTARY SEAL)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, it could
prevent fraudulent attachment of this certificate to another
document.
THIS CERTIFICATE MUST BE ATTACHED TO Title of Document Type Subdivision Improvement Agreement
THE DOCUMENT DESCRIBED AT RIGHT. Number of Pages 1 & ack Date of Document July 12, 2005
Signer(s) Other Than Named Above City of La Quinta
NOTARYt.DOC
DOCUMENT PROVIDED BY STEW ART TITLE OF CALIFORNIA, INC.
ALL PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA }
COUNTY OF RIVERSIDE } ss.
On July 12, 2005 before me, CYNTHIA ANN DIAZ, NOTARY PUBLIC personally
appeared James Rankin, personally known to me to be the person whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his authorized capacity, and that by his signature on the instrument the person,
or the entity upon behalf of which the person acted, e
CYNTHIA APIN DIAZ
COMM. # 322626 t
WITNESS y and an icia eaL RP�fERsl4ECOUNTY
Y Via, Ekes tictab®r [d, T9C
Signature
(NOTARY SEAL)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, it could
prevent fraudulent attachment of this certificate to another
document.
THIS CERTIFICATE MUST BE ATTACHED TO Title of Document Type Subdivision Improvement Agreement
THE DOCUMENT DESCRIBED AT RIGHT. Number of Pages 1 & ack Date of Document July 12, 2005
Signer(s) Other Than Named Above City of La Quinta
NOTARYI.DOC
DOCUMENT PROVIDED BY STEW ART TITLE OF CALIFORNIA. INC.
OUTSTANDING BOND REPORT
Name: Oak Tree Industries (Rancho Santana)
Tract No. 31202-3
Date of Contract: August 4, 2005
Required Bond Amounts:
Drainage
Streets / Signing
Water
Sewer
Utilities
Monumentation
10% Contingency
Prof. Fees Design
Prof. Fees. Construction
Dates of Bond Reductions:
$ 71,010 / $
71,010
$111,420 / $111,420
$ 97,600 / $
97,600
$ 75,930 / $
75,930
$112,800 / $112,800
$ 6,000
$ 47,480 / $
46,880
$ 52,220 / $
51,560
$ 52,220 / $
51,560
Outstanding Bonds and Bond Company:
Amount: Bond No.
$626,680 823050S
$618,760 same
Developers Surety & Indemnity
Date Cancelled/Released:
Bond No 823051S
Premium $14,574.00/2 Year Term
SUBDIVISION IMPROVEMENTS
Tract Map No. 31202-4 On Site
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Tract Map
of
certain designated
uired
by the
Nondi Co2-4 nditions of A Approval for theOn Site lor to installsubject map, nna cordance with the Califoric improvements nia Map Act (Gove
Co Prnor n Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
hereiafter designated as ("principal")
Desert Che enne Inc.
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated
200, and identified as
Tract Map No. 31202-4 , 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 Developers Surety and Indemnity Compap,
asurt,re h�ld a�d firm b and unt the.Cit of Q inta he einafter DOLLARS ($11ed 8091'C650ity").00he Pe) l sum
lawful
ousan six un�rf�
of ig un re nin t� od
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 in succ ssfully enforcing sucosts and ch oblle igation allenses dtoebe taxed as including
and included in any judgment
by City
rendered.
Page 1 of 2
F201 - Performance Bond
Bond No 823051S
Premium $Included In Performance Bond
SUBDIVISION IMPROVEMENTS
Tract Map No. 31202-4 On Site
LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Tract Map
No. 31202-4 On Sits prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
Desert Cheyenne Inc. hereinafter designated as "the principal" have
entered into an agreement whereby the principal agrees to install and complete certain designated public
improvements, which agreement, dated , 200, and identified as
Tract Map No. 31202-4 , is hereby referred to and made a part hereof, and
WHEREAS, under the terms of the agreement, the principal is required before entering upon the
performance of the work, to file a good and sufficient payment bond with the City of La Quinta to secure the
claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the
Civil Code of the State of California.
NOW, THEREFORE, the principal and the undersigned as corporate surety, are held firmly bound
unto the City of La Quinta and all contractors, subcontractors, laborers, materialmen, and other persons
employed in the performance of the agreement and referred to in Title 15 (commencing with Section 3082)
of Part 4 of Division 3 of the Civil Code in the sum of Eight hundred four thousand three hundred
seventy DOLLARS ($ 804,370.00 ), for materials furnished or labor thereon of any kind, or for
amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will
pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought
upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees,
including reasonable attorney' s fees, incurred by city in successfully enforcing this obligation, to be awarded
and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all
persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082)
of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit
brought upon this bond.
Should the condition of this bond be fully performed, then this obligation shall become null and void,
otherwise it shall be and remain in full force and effect.
F202 - Labor and Material Bond Page 1 of 2
IT / SA / HA / FA MEETING DATE: June 5, 2012
ITEMTITLE: Adoption of a Resolution to Extend the Time
for Completion of the On -Site Improvements for Tract
Map No. 31202-4, Rancho Santana, Oak Tree
Industries, Inc.
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 13
STUDY SESSION:
PUBLIC HEARING:
Adopt a resolution to extend the time for completion of the on -site improvements as
specified in the approved Subdivision Improvement Agreement (SIA) to June 21, 2013
for Tract Map No. 31202-4, Rancho Santana, Oak Tree Industries, Inc.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Rancho Santana (Tract Map No. 31202-4) is located south of Avenue 52 and west of
Monroe Street (Attachment 1).
On August 4, 2005, Oak Tree Industries, Inc. entered into a SIA for Tract Map No.
31202-4, Rancho Santana. Section 6 of the SIA requires: "that the subdivision
improvements shall be complete within twelve months after the approval of the SIA.
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 SIA, 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
101
improvements.
On August 1, 2006, the City Council adopted a resolution granting a time extension
for the completion of the on -site improvements to August 4, 2007.
On June 2, 2009, the City Council adopted a resolution granting a second time
extension for the completion of the on -site improvements to March 31, 2010.
On June 21, 2011, the City Council adopted a resolution granting a third time
extension for the completion of the on -site improvements to June 21, 2012.
In a letter dated May 15, 2012 (Attachment 2), the developer states that only two
new homes have closed escrow since the last time extension and the REOs and short
sales continue to negatively impact the pricing of the new homes. Therefore, the
developer requests a time extension to complete the remaining on -site improvements.
The remainder of the on -site improvements includes the final lift of paving on various
streets. The street capping will be performed as home construction is completed.
Staff has prepared the attached resolution which provides for approval of the fourth
time extension of the SIA to June 21, 2013.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
1. Adopt a Resolution of the City Council to extend the time for completion of the
on -site improvements as specified in the approved SIA to June 21, 2013 for
Tract Map No. 31202-4, Oak Tree Industries, Inc.; or
2. Do not adopt a Resolution of the, City Council to extend the time for completion
of the on -site improvements as specified in the approved SIA to June 21, 2013
for Tract Map No. 31202-4, Oak Tree Industries, .Inc.; or
3. Provide staff with alternative direction.
Respectfully submitted,
4MOthyjRoass99 .E.
Public Works Directb►JCity Engineer
10 108
Approved for submission by:
Mark Weiss, Interim City Manager
Attachments: 1. Vicinity Map
2. Letter from John Pedalino dated May 15, 2012
109
RESOLUTION NO. 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, GRANTING AN EXTENSION
OF TIME FOR THE COMPLETION OF THE ON -SITE
IMPROVEMENTS AS -SPECIFIED IN THE APPROVED
SUBDIVISION IMPROVEMENT AGREEMENT TO JUNE 21,
2013 FOR TRACT MAP NO. 31202-4, RANCHO
SANTANA.
WHEREAS, the City Council approved the Subdivision Improvement
Agreement (SIA) for Tract Map No. 31202-4, Rancho Santana, on August 4, 2005;
and
WHEREAS, Section 6. Completion of Improvements, of the approved SIA
requires that the Subdivider begin construction of the improvements within ninety
days and complete the construction within twelve months after the approval of the
Agreement; and
WHEREAS, failure by the Subdivider to complete construction of the
improvements by June 21, 2012, shall constitute cause for the City, in its sole
discretion and when it deems necessary, to declare the Subdivider in default of the
approved agreement; and
WHEREAS, Section 8. Time Extension, of the approved SIA allows for, at the
City Council's sole and absolute discretion, an extension of time for completion of
the improvements with additions or revisions to the terms and condition's of the
Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta, California, as follows:
Section 1. The time for the completion of the on -site improvements as
required by the approved SIA is extended to June 21, 2013.
Section 2. The time extension for completing the improvements shall expire
when City offices close for regular business on June 21, 2013. If the Subdivider
has not completed the improvements, the City, in its sole discretion, and when
deems necessary, may declare the Subdivider in default of the Agreement.
Section 3. The provided security amount as required in the approved SIA is
satisfactory. No additional securities are required.
110
Resolution No. 2012-
Tract Map No. 31202-4, Rancho Santana
Adopted: June 5, 2012
Page 2
Section 4. All other terms, responsibilities and conditions as listed in the
approved SIA shall remain in full force and effect.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
City Council held on this 51" day of June 2012, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
SUSAN MAYSELS, Interim City Clerk
City of La Quinta, California
(SEAL)
APPROVED AS TO FORM:
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
ATTACHMENT 1
TM 31202-4 RANCHO SANTANA
HWY 111
HWY 111
JDR.CARREON
BLVD
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112
ATTACHMENT 2
V$��ANCHO SANTANA
May 15, 2012
Mr. Tim Jonasson
MAY 16
Director of Public Works, City Engineer
2012
City of La Quinta
PUBLIC WORKS
78-945 Calle Tampico
D'velownentse e..
La Quinta, CA 92247
RE: Request for Time Extension for Subdivision Improvement Agreements (SIAs)
Tract Maps 31202-3 and 31202-4, Rancho Santana
Mr. Jonasson:
The purpose of this letter is to formally request a time extension for the Subdivision Improvement
Agreements (SIA) for Tract 31202-3 and 31202-4, the Rancho Santana Development located at the
southwest comer of Avenue 52 and Monroe Street.
Since the time of the prior request for extension, we have only closed escrow on two new homes.
Although we continue to actively market the new homes, the REOs and Short Sales continue to
negatively impact the pricing of the new homes. As previously indicated we will complete the street
capping when home construction is completed.
Therefore, we are requesting that the SIAs for Tract 31202-3 and Tract 31202-4 be extended through
June 30, 2013.
Please call me at (760) 777-9920 if you have questions or need additional information.
Thank you very much for your consideration of this matter.
Sine rely,
John R. Pedalino
President, Desert Cheyenne, Inc.
78401 Hwy. III St. X La Quinta, CA 92253 (760)777-9920 Fax (760)777-9918.. 113
COUNCIL/RDA MEETING DATE: .tune 2, 2009
ITEM TITLE: Adoption of a Resolution to Extend the
Time for Completion of the On -Site Improvements for
Tract Map No. 31202-4, Rancho Santana, Oak Tree
Industries, Inc.
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: 9
STUDY SESSION:
PUBLIC HEARING:
Adopt a resolution to extend the time for completion of the on -site improvements as
specified in the approved Subdivision Improvement Agreement (SIA) to March 31,
2010 for Tract Map No. 31202-4, Rancho Santana, Oak Tree Industries, Inc.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Rancho Santana (Tract Map No. 31202-4) is located south of Avenue 52 and west of
Monroe Street (Attachment 1).
On August 4, 2005, Oak Tree Industries, Inc. entered into an SIA for the Rancho
Santana development. Section 6 of the SIA requires: "that the subdivision
improvements shall be complete within twelve months after the approval of the SIA.
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 SIA, to revise
105
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 standard or conditions affecting or affected
by the Improvements. "
On August 1, 2006, the City Council adopted a resolution granting a time extension
for the completion of the on -site improvements to August 4, 2007.
In a letter dated March 27, 2009 (Attachment 2), the developer stated that all on -site
improvements have been completed with the exception of the final lift of paving. The
final lift of paving will be done when the last home is built in this phase. The
developer requests a time extension for completion to March 31, 2011. Staff has
prepared the attached resolution which provides for the approval of the second time
extension of the SIA to March 31, 2010.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include
1 . Adopt a Resolution of the City Council to extend the time for completion of the
on -site improvements as specified in the approved Subdivision Improvement
Agreement to March 31, 2010 for Tract Map No. 31202-4, Rancho Santana; or
2. Do not adopt a Resolution of the City Council to extend the time for completion
of the on -site improvements time as specified in the approved Subdivision
Improvement Agreement to March 31, 2010 for Tract Map No. 31202-4,
Rancho Santana; or
3. Provide staff with alternative direction.
Respectfully submitted,
Timothy R. on on, P.E.
Public Works Di ctor/City Engineer
106
Approved for submission by:
G /•w
0
Thomas P. Genovese, City Manager
Attachments: 1. Vicinity Map
2. Letter from Desert Cheyenne, Inc. dated March 27, 2009
107
RESOLUTION NO. 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA, GRANTING AN
EXTENSION OF TIME FOR THE COMPLETION OF THE
ON -SITE IMPROVEMENTS AS SPECIFIED IN THE
APPROVED SUBDIVISION IMPROVEMENT AGREEMENT
TO MARCH 31, 2010 FOR TRACT MAP NO. 31202-4,
RANCHO SANTANA.
WHEREAS, the City Council approved the Subdivision Improvement
Agreement (SIA) for Tract Map No. 31202-4, Rancho Santana, on August 4, 2005;
and
WHEREAS, Section 6. Completion of Improvements, of the approved SIA
requires that the Subdivider begin construction of the improvements within ninety
days and complete the construction within twelve months after the approval of the
Agreement; and
WHEREAS, failure by the Subdivider to complete construction of the
improvements by August 4, 2007, shall constitute cause for the City, in its sole
discretion and when it deems necessary, to declare the Subdivider in default of the
approved agreement; and
WHEREAS, Section 8. Time Extension, of the approved SIA allows for, at the
City Council's sole and absolute discretion, an extension of time for completion of
the improvements with additions or revisions to the terms and conditions of the
Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta, California, as follows:
Section 1. The time for the completion of the on -site improvements as
required by the approved SIA is extended to March 31, 2010.
Section 2. The time extension for completing the improvements shall expire
when City offices close for regular business on March 31, 2010. If the Subdivider
has not completed the improvements, the City, in its sole discretion and when it
deems necessary, may declare the Subdivider in default of the Agreement.
Section 3. The provided security amount as required in the approved SIA is
satisfactory. No additional securities are required.
»• `' 108
Resolution No. 2009-
Tract Map No. 31202-4, Rancho Santana
Adopted: June 2, 2009
Page 2
Section 4. All other terms, responsibilities and conditions as listed in the
approved SIA shall remain in full force and effect.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
City Council held on this 2"d day of June, 2009, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
VERONICA J. MONTECINO, CMC, City Clerk
City of La Quinta, California
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
109
ATTACHMENT 1
_,
TM 31202-4 RANCHO SANTANA
AVENUE 50TH
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VICI_NI
NOT TO SCALE
CITY COUNCIL MEETING: June 2, 2009
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MAP
ITEM TITLE: Adoption of a Resolution to Extend the Time for
Completion of the On -Site Improvements for Tract Map No. 31202-4
APPLICANT: Mr. John Pedalino, Desert Cheyenne, Inc.
110
ATTACHMENT 2
IDANCHO SANTANA:�
March 27, 2009
Mr. Tim Jonasson
Director of Public Works, City Engineer �CEI1�D
City of La Quinta APR 0 6 2009
78-945 Calle Tampico
La Quinta, CA 92247 Developm;_,
RE: Request for Time Extension for Subdivision Improvement Agreements (SIAS)
Tract Maps 31202-3 and 312024, Rancho Santana
Mr. Jonasson:
This purpose of this letter is to formally request a time extension for the Subdivision improvement
Agreements (SIA) for Tract 31202-3 and 31202-4, the Rancho Santana Development located at the
southwest comer of Avenue 52 and Monroe Street.
All of the. underground improvements are complete and the initial paving is completed throughout the
community. Street capping, the remaining improvement, is typically performed when home
construction is complete. Street capping prior to construction of the homes usually results in massive
replacement and repairs to the street improvements after the construction of the homes. We are
diligently moving forward with sales activities at Rancho Santana, however, the sluggish market
conditions have slowed the pace of sales and home construction.. With 42 homes left to build in the
community, we, believe that we still have at least two years until Rancho Santana is built out.
Therefore, we are requesting that the SlAs for Tract 31202-3 and Tract 31202-4 be extended through
March 31, 2011.
Please call me at (760) 777-9920 if you have questions or need additional information.
Thank you very much for your consideration of this matter.
Si erely,
John . Pedalino
President, Desert Cheyenne, Inc.
78401 Hwy. 111 St. G La Quinta, CA 92253 (760)777-9920 Fax (760)777-9918
ill