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2005 - 31798 Watermark Granite La Quinta, LLC - SIA On-Site & Off-SiteCITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 31798 ON -SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this ^? r �GYP day of rL r•� 20 by and between WATERMARK GRANITE LA QUINTA, LLC a CALIFORNIA LIMITED LIABILITY COMPANY hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as "City." RECITALS: A. Subdivider has prepared and filed a final map or 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. 31798 (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 lusted 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. CADocuments and SettingsVomon\Local Settings\Temporary Internet Files\OLKBA\ONSITE_SIA.doc 1 of 7 B. Improvement security shall conform with Section 66499 of the California Government Code and one or more of the following: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. 2) Surety bonds, of the form specified in subsection 66499.2 of the California Government Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570 (latest version). 3) Certificates of deposit, in City's name, from one or more financial institutions subject to regulation by the state or federal government and having a financial quality rating of "A" or better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office). 4) Irrevocable letters of credit, issued by one or more financial institutions meeting the requirements of Paragraph (3), pledging that the funds necessary to carry out the completion of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to the letters of credit will be paid upon the written demand of City and that such written demand need not present documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit shall be for a period of not less than one year from the execution of the agreement with which it is provided and shall state, on its face, that the letter of credit will be automatically renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or 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 CADocuments and SettingsVomon\Local Settings\Temporary Internet Files\OLKBA\ONSITE_SIA.doc 2 of 7 security if the warranty security is of the same form and from the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00). 2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will prepare lien agreements and subordination agreements, administer valuation of the real property and administer the agreements over the life of the lien, all of which require legal assistance and financial advice, Subdivider shall pay to City an administration fee of One Half of One Percent (0.5%) of the estimated cost of the improvements secured but not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00). 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 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 C:\Documents and SettingsVomon\Local Settings\Temporary Internet Files\OLKBA\ONSITE_SIA.doc 3 of 7 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 shale 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. CADocuments and Settingstfomon\Local Settings\Temporary Internet Files\OLKBA\ONSITE_SIA.doc 4 of 7 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. CADocuments and SettingsMomon\Local Settings\Temporary Internet Files\OLKBA\ONSITE_SIA.doc 5 of 7 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 rf. 760/777-7075 Thomas P. Genovese, City Manager Date ATTEST: Local Address Watermark Granite La Quinta, LLC 20 Park Plaza, St 800 Irvine, CBS 614 (760) i� . y:--;--; D ry Date Title: ��... Date Title: Reviewed and Approved- City'Ei4gineer Date Approved as to Form;, City Attorney Date C1Documents and Settings\bfomon\Local Settings\Temporary Internet Files\OLKBA\ONSITE_SIA.doc 6of7 STATE OF CALIFORNIA } COUNTY OF SAN DIEGO } On December 12, 2005 before me, Marianne Allen, Notary Public, Personally appeared Thomas P. Dobron -------------------------------- 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. WITNESS my hand and official seal. MARIANNE ALLEN Commission # 1462983 Notary Public - Cdifomio San Diego County My Comm. Expires Feb 11, 2008 Signature ���' � � � ��� �� ��� % c' �,� y � . (NOTARY SEAL) Exhibit A SECURITY — TRACT MAP NO. 31798 ON -SITE IMPROVEMENTS Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory Improvements shall remain in place indefinitely until called upon or released by City. Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as specified in Chapter 4, Article 9 of the Subdivision Map Act. As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the TRACT and shall not reduce total performance security below the amount necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer. Labor & materials security shall remain in place until 90 days after all required TRACT improvements are complete and accepted by the City Council. Improvement Description Performance Labor & Materials Grading $ 10,820 $ 108,200 Street Improvements, $ 416,685 $ 416,685 Signing and Striping $ 8,000 $ 8,000 Storm Drainage $ 792,216 $ 792,216 Sanitary Sewer $ 212,373 $ 212,373 Domestic Water $ 697,135 $ 697,135 Dry Utilities $ 500,000 $ 500,000 Contingency for Monumentation $ 40,582 $ - Totals $ 2,677,811 $ 2,734,609 Standard 10% Contingency $ 267,781 $ 273,461 Total Construction Cost $ 2,945,592 $ 3,008,070 Professional Fees, Design 10% $ 294,559 $ 300,807 Professional Fees, Const 10% $ 294,559 $ 300,807 Bond Amount $ 3,534,710 $ 3,609,684 Improvement Description Performance Labor & Materials Monumentation $ 167,400 Bond Amount $ 1671400 T.\Project Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Watermark TM 31798\ONSITE_SIA.doc 7 of 7 CITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 31798 OFF -SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") ismadeand entered into this _el- f � day of �� '�'�-- , 20 by and between WATERMARK GRANITE LA QUINTA, LLC, a California Limited Liability Company, hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as "City." RECITALS: A. Subdivider has prepared and filed a final map or 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. 31798 (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, Subdivideris 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 b costbofvider, hereinafter labor, equipmentrandred to as materials "payment security," shall assure the payment of the 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. 1 of 7 CADocuments and Settings\bfomon\Local Settings\Temporary Internet Files\OLKBA\OFFSITE_SIA.doc B. Improvement security shall conform with Section 66499 of the California Government Code and one or more of the following: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. 2) Surety bonds, of the form specified in subsection 66499.2 of the California Government Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570 (latest version). 3) Certificates of deposit, in City's name, from one or more financial institutions subject to regulation by the state or federal government and having a financial quality rating of "A" or better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office). 4) Irrevocable letters of credit, issued by one or more financial institutions meeting the requirements of Paragraph (3), pledging that the funds necessary to carry out the completion of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to the letters of credit will be paid upon the written demand of City and that such written demand need not present documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit shall be for a period of not less than one year from the. execution of the agreement with which it is provided and shall state, on its face, that the letter of credit will be automatically renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or 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 CADocuments and SettingsVomon\Local Settings\Temporary Internet Files\OLKBA\OFFSITE_SIA.doc 2 of 7 security if the warranty security is of the same form and from the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00). 2) For liens on real property as described in Paragraph 5) of SECTION 3.13., for which City will prepare lien agreements and subordination agreements, administer valuation of the real property and administer the agreements over the life of the lien, all of which require legal assistance and financial advice, Subdivider shall pay to City an administration fee of One Half of One Percent (0.5%) of the estimated cost of the improvements secured but not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00). 3) For other forms of security listed in Section 3 B, above, there will be no administrative fee. 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 approvall, 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 CADocuments and SettingsVomon\Local Settings\Temporary Internet Files\OLKBA\OFFSITE_SIA.doc 3 of 7 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. CADocuments and Settings\bfomon\Local Settings\Temporary Internet Files\OLKBA\OFFSITE_SIA.doc 4 of 7 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. CADocuments and SettingsVomon\Local Settings\Temporary Internet Files\OLKBA\OFFSITE_SIA.doc 5 of 7 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 of La Quinta 78-495 Calle Tampico La Quinta A 92253 075 Xq Thomas P. Genovese, City Manager Date ATTEST: City Clerk Developer Address Watermark Granite La Quinta, LLC 20 Park Plaza, St 800 Irvine, CA 92614 By: ~— Date Title: By: Date Title: Reviewed anA Approved: City Engine- Date Approved as to Forma: City Attorney ` Date CADocuments and SettingsVomon\Local Settings\Temporary Internet Files\OLKBA\OFFSITE_SIA.doc 6 of 7 STATE OF CALIFORNIA } COUNTY OF SAN DIEGO } On December 12, 2005 before me, Marianne Allen, Notary Public, Personally appeared Thomas P. Dobron -------------------------------- 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. WITNESS my hand and official seal. MAMANNE ALLEN _ Commission #� 1462983 9-3 1 Notary Public - California_ San Diego County My Comm. Expires Feb 11, 2008 Signature _� �-� 4- -,4 (NOTARY SEAL) Exhibit A OFF -SITE SECURITY — TRACT MAP NO. 31798 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 $ 3,575 $ 3,575 Storm Drainage $ 27,405 $ 27,405 Street Improvements $ 67, 785 $ 67,785 Meandering 8ft Sidewalk $ 17,915 $ 17,915 Domestic Water $ 52,640 $ 52,640 Sanitary Sewer $ 3,000 $ 3,000 Signing and Striping $ 172,320 $ 172,320 Totals $ 17 232 $ 17,232 Standard 10% Contingency $ 189,552 $ 189,552 Total Construction Cost Professional Fees, Design 10% $ 18,955 $ 18,955 18,955 Professional Fees, Const 10% $ 18,955 $ $ 227,462 $ 227,462 Bond Amount 7of7 TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Watermark TM 31798\OFFSITE_SIA.doc P.O. Box 1504 LA QUINTA, CALIFORNIA 92247-1504 78-495 CALLS TAMPICO (760) 7 7 7 - 7 0 0 0 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 January 17, 2008 Brad Fomon Innovative Communities 1282 Pacific Oaks Place Escondido, CA. 92029 Re: Tract Map 31798 To Whom It May Concern: Per authorization from the Public Works Department, the City Clerk's Office has received Reduction Riders for Performance Bond Nos. SU5018206 and SU5018207. If you have any questions, please call me at (760) 777-7002. Sincerely VERONICA J. NTECINO, City Clerk City of La Quinta, California cc: Tim Jonasson, Public Works Director/City Engineer Arch Insurance Co. File Tdf 4 449urw MEMORANDUM To: Veronica J. Montecino, CMC, City Clerk From: Wimmer, Development Services Principal Engineer Via: 8TIothy R. Jonasson, Public Works Director / City Engineer Date: January 15, 2008 Re: Reduction Bond Rider to Performance Security for Watermark Villas, Tract Map No. 31798, due to Completed On -site Improvements Please attach the new reduction bond rider to the existing Performance security bonds for TM 31798, on -site improvements. Please find enclosed the new reduction bond rider (reduced amount) which will secure the completion of the remaining improvements. The amounts and addresses to the developer and the surety company are as follows: TRACT No. 31798 Performance Reduced Performance Bond Number Security Amount SU 5018206 $3,534,710 $1,869,507 Developer: Mr. Brad Fomon Innovative Communities 1282 Pacific Oaks Place Escondido, CA 92029 Surety Company: Arch Insurance Company 135 N. Los Robles Ave., #825 Pasadena, CA 91 101 Cc: Project File I, Tract Map No. 31798 Amy Yu, Assistant Engineer II TATracts_Parcel Maps_SP\30000-39999\31798\external correspondence\Bond Reduction Rider Onsite Memo TM 31798.doc Exhibit A SECURITY - TRACT MAP NO. 31798, WATERMARK VILLAS ON -SITE IMPROVEMENTS Performance Security Improvement Description Labor & Material Original Amount Proposed Reduction Reduced Amount Grading $108,200 $10,820 10% $9,738 Street Improvements $416,685 $416,685 20% $333,348 Signing and Striping $8,000 $8,000 0% $8,000 Storm Drainage $792,216 $792,216 50% $396,108 Sanitary Sewer $212,373 $212,373 80% $42,475 Domestic Water $697,135 $697,135 80% $139,427 Dry Utilities $500,000 $500,000 40% $300,000 Contingency for Monumentaion $0 $40,582 0% $40,582 Standard 10% Contingency $273,461 $267,781 30% $187,447 Professional Fees, Design 10% $300,807 $294,559 30% $206,191 Professional Fees, Construction 10% $300,807 $294,559 30% $206,191 TOTALS $3,609,684 $3,534,710 --- $1,869,507 TATracts_Parcel Maps_SP\30000-39999\31798\external correspondence\Bond Reduction Rider Onsite Memo TM 31798.doc I T4ht 4 X4F� PUBLIC WORKS/ENGINEERING DEPARTMENT INTEROFFICE MEMORANDUM TO: June Greek, City Clerk FROM: U Anthony Colarossi, Associate Engineer VIA: T1 imothy R. Jonasson, Public Works Director/City Engineer DATE: April 5, 2006 RE: Endorsement Bonds for TM 31798, Watermark Villas Around July 13, 2005, the developer submitted a Rough Grading and PM 10 Bond with the City under the name of CVR Watermark Granite La Quinta, LLC. The developer is submitting these Endorsement Bonds with the amended name of Watermark Granite La Quinta, LLC. Please find the following enclosed: Rough Grading Endorsement Bond Bond No SU5015491 Principal Name: Arch Insurance Company Encroachment Permit No.: 4391 2. Fugitive Dust Control Endorsement Bond Bond No SU5015492 Principal Name: Arch Insurance Company Encroachment Permit No.: 4442 and 4391 If you have any questions, please contact me at extension 7089. Thank You. T:\PWDEPT\STAFF\COLAROSSI\Deposits_bond_lcredit\Watermark villas 31798\RG_PM10_Endorsement_Bonds.doc MEMORANDUM TO: June Greek, City Clerk FROM: (j\,_— Anthony Colarossi, Associate Engineer VIA: ARmothy R. Jonasson, Public Works Director/City Engineer DATE: April 4, 2006 RE: Endorsement Bonds for TM 31798, Watermark Villas In mid January of 2006, the bonds with regards to the Subdivision Improvement Agreement for Tract Map No. 31798, was submitted to the city. The developer has submitted these endorsement bonds. Apparently, the name on the original bonds state CVR Watermark Granite La Quinta, LLC and they should state Watermark Granite La Quinta, LLC. I am transferring to you all the endorsement bonds for you to perform the following tasks: 1. Keep the following Endorsement Bonds: a. On -site Performance (All minus the monumentation) Bond No. SU5018206 Surety Company: Arch Insurance Company b. On -site Performance (Monumentation Only) Bond No. SU 5018208 c. On -site Labor and Material (all improvements) Bond No. S15018206 (Bond may have typo SU5018206) d. Off -site Performance Bond No. SU5018207 Surety Company: Arch Insurance Company e. Off -site Labor & Material Bond No. SU5018207 Surety Company: Arch Insurance Company If you have any questions, please contact me at extension 7089. Thank You. 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'Poloe j@)uosied 94l 4o14m ;o ;ILgeq uodn Alllue a4l Jo awom°o - 3IKind iUoloN al_ '6t)uosied eqj luawrulsul ail uo 009inleu6ls neupeq/sly MOM # uolssiwwoD dq 1e43 PUB '6W)Ajpedeo pezljo44ne jixWmWs14 ul awes NONOJOI 'd VHSI211 a4l polnoexe Am*/@M/eq le41 aw of pa6pelmouNoe pue luewni;sul ul4l!m ail of paquosgnsxe/sl *)aweu eso4m Wuosied a4l aq of aouapina iGoloe;slles;o slseq ail uo aw of panoid ❑ - ao - aw of umouM Alleuosied X (syau6!s to (s)aweN uaoa;spaoN •Q Amed paaeedde Alleuosied (.o!!gnd tieloN 'ao(] aueG -6'B) J90yl0 to OWL Pue aweN ale(] ailgnd a;oN uouo o,l •d e4sul 'aw aao;aq SOOZ/80/LO u0 o ala ueg ;o A4unoo eivao;!Iea 10 aleiS m3momimON)IOV 3sodund-l7V VINUO:lIlVo (Id3S J HViON) aaniau61S 'lass I001110 pua puny Aw SS3N11M }uawnalsul ayj painoaxa `pajoa uosaad ayj yoigm jo IIayaq uodn Alllua ay} ao `uosaad ayj luawna}sul ayj uo ain}au6ls sly Aq jayj pua `Apudao pazlaoy}na sly ul awas ayl palnoaxa ay jayj aw of pa6pojmou�oa pua }uawnalsul uIglIM ay} o} paquosgns sl awau asot4m uosaad ayi aq of ow of umouN Allauosaad uoagoa •d sawoyl paaaadda AIlauosaad `ollgnd AMON `ualiy auualaalN `aw aaolaq 500z `O L aunp uO { 09314 NVS 30 AINnoo { `dINE1031-1` O 30 31d1S "'j 14— ✓ ARCH INSURANCE COMPANY Bond Number : SU 5018208 ENDORSEMENT To be attached to and form a part of Monument Bond, issued by the undersigned company, as Surety on behalf of CRV Watermark Granite La Quinta, LLC as Principal, in favor of The City Council of the City of La Quinta as Obligee, Effective 1/18/06, the Principal and the Surety hereby agree to amend the attached bond as follows: Amend the name of the Principal to WATERMARK GRANITE LA QUINTA, LLC All else remains the same. Provided that the liability under this endorsement shall be part of, and not in addition to, the liability under the attached Bond, and in no event shall be cumulative. Nothing herein contained shall vary, alter or extend any of the provisions, conditions, or other terms of this bond except as above stated. SIGNED, SEALED, DATED: January 18, 2006 at La Quinita, LLC (Principal) By: By: The City Council of the City of La Quinta (Obligee) Arch Insurance Company (,Surety) By: �- Barry D. Nordstrom, Tto ney In Fact Endorsement Number: One (1) DIRECT CORRESPONDENCE TO: ARCH CONTRACTORS & DEVELOPERS GROUP, 135 N. LOS ROBLES AVE., #825, PASADENA, CA 91101 PHONE (626) 535-0855 9 FAX (626) 535-0875 ARCH Insurance Company NOTICE — DISCLOSURE OF TERRORISM PREMIUM ARCH Surety In accordance with the Terrorism Risk Insurance Act of 2002, we are providing this disclosure notice for bonds on which Arch Insurance Company is the surety. DISCLOSURE OF PREMIUM The portion of the premium attributable to coverage for terrorist acts certified under the Act is Zero Dollars ($0.00). DISCLOSURE OF FEDERAL PARTICIPATION IN PAYMENT OF TERRORISM LOSSES The United States will pay ninety percent (90%) of covered terrorism losses exceeding the applicable insurer deductible. �,.�..-.e,�:....a-...•......... :.r,:.c -..<�c -.e=.,!mac c.a..:.,_:�. < <_a<...�rr...i•...a,...�t..s� e�...��...c..s�,..�ac.. State of California } ss. County of San Diego J On / , before me, Trisha A. Togonon, Notary Public Date Name and Title of Officer (e.g., "Jane Doe, Notary Public-) personally appeared Barry D. Nordstrom Name(s) of Signer(s) X personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITN S 92y hand a/n�d offic seal. Place Notary Seal Above Signature of Notary Pdhfrc 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 --n Title or Type of Document: 1 Document Date: / _ I>V L Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) laimed b Signer(s) Signer's Name: Barry D.-Nordstrom ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited LJ General imeciallifillillilmiall X Attorneyin Fact Top of thumb here ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Arch Insurance Company Signer's Name: ❑ Individual i Corporate Officer — Titie(s): _ Partner — ❑ Limited ❑ General Attorney in Fact Trustee Guardian or Conservator Other: Signer Is Representing: RIGHT THUMBPRINT OF 51GNEH 0 2004 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313.2402 Item No. 5907 Reorder Call Toll -Free 1.800-876-6827 STATE OF CALIFORNIA COUNTY OF SAN DIEGO On January 24, 2006 before me, Marianne Allen, Notary Public, Personally appeared Thomas P. Dobron-------------------------------- 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. WITNESS my hand and official seal. MARIANNE ALLEN Conunelon 0 1462983 Notary Public - C01f0m10 Son Diego County My Comm. E�tesF� 11, 2008 Signature Auj, "- &Lj (NOTARY SEAL) POWER OF ATTORNEY Know All Men By These Presents: That the Arch Insurance Company, a corporation organized and existing under the laws of the State of Missouri, having its principal office in Kansas City, Missouri (hereinafter referred to as the "Company") does hereby appoint Barry D. Nordstrom of La Jolla, CA its true and lawful Attorney(s)-in-Fact, to make, execute, seal, and deliver from the date of issuance of this power for and on its behalf as surety, and as its act and deed: Any and all bonds and undertakings EXCEPTION: NO AUTHORITY is granted to make, execute, seal and deliver bonds or undertakings that guarantee the payment or collection of any promissory note, check, draft or letter of credit. This authority does not permit the same obligation to be split into two or more bonds in order to bring each such bond within the dollar limit of authority as set forth herein. The Company may revoke this appointment at any time. The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said Company as fully and amply to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at its principal office in Kansas City, Missouri. This Power of Attorney is executed by authority of resolutions adopted by unanimous consent of the Board of Directors of the Company on March 3, 2003, true and accurate copies of which are hereinafter set forth and are hereby certified to by the undersigned Secretary as being in full force and effect: "VOTED, That the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, or the Secretary shall have the power and authority to appoint agents and attomeys-in-fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings, obligatory in the nature thereof, and any such officers of the Company may appoint agents for acceptance of process_" This Power of Attorney is signed, sealed and certified by facsimile under and by authority of the following resolution adopted by the unanimous consent of the Board of Directors of the Company on March 3, 2003: VOTED, That the signature of the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, and the signature of the Secretary, the seal of the Company, and certifications by the Secretary, may be affixed by facsimile on any power of attorney or bond executed pursuant to the resolution adopted by the Board of Directors on March 3, 2003, and any such power so executed, sealed and certified with respect to any bond or undertaking to which it is attached, shall continue to be valid and binding upon the Company. OOML0013 00 03 03 Page 1 of 2 Printed in U.S.A. In Testimony Whereof, the Company has caused this instrument to be signed and its corporate seal to be affixed by their authorized officers, this 10th day of October , 20 03 Arch Insurance Company Attested and Certified �yonce C V sm 1971 t. / IIt10Yli Joseph S. L I, Corporate Secretary STATE OF CONNECTICUT SS COUNTY OF FAIRFIELD SS Thomas P. Luckstone, Vice President I Melissa B. Gilligan, a Notary Public, do hereby certify that Thomas P. Luckstone and Joseph S. Labell personally known to me to be the same persons whose names are respectively as Vice President and Corporate Secretary of the Arch Insurance Company, a Corporation organized and existing under the laws of the State of Missouri, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they being thereunto duly authorized signed, sealed with the corporate seal and delivered the said instrument as the free and voluntary act of said corporation and as their own free and voluntary acts for the uses and purposes therein set forth. OFFICAL SEAL PAEi 1SSA� � puW�c �� /y—i M Canmission Expires February 28 2005 Melissa B. Gilligan, Notary Public My commission expires 2-28-05 CERTIFICATION I, Joseph S. Labell, Corporate Secretary of the Arch Insurance Company, do hereby certify that the attached Power of Attorney dated October 10. 2003 on behalf of the person(s) as listed above is a true and correct copy and that the same has been in full force and effect since the date thereof and is in full force and effect on the date of this certificate; and I do further certify that the said Thomas P. Luckstone, who executed the Power of Attorney as Vice President, was on the date of execution of the attached Power of Attorney the duly elected Vice President of the Arch Insurance Company. IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of the Arch Insurance Company on this 18th day of January 20 06. Joseph S6p6eIrCorporate Secretary This Power of Attorney limits the acts of those named therein to the bonds and undertakings specifically named therein and they have no authority to bind the Company except in the manner and to the extent herein stated. 3anea C o° o CORFORATF J SUl SYY 9n �b�aul Home Office: Kansas City, MO 00ML0013 00 03 03 Page 2 of 2 Printed in U.S.A. ARCH INSURANCE COMPANY FIRST TERM PREMIUM FULLY EARNED Bond Number : SU 5018208 Premium (Two Years) : $2,511.00 SUBDIVISION BOND MONUMENT BOND KNOW ALL MEN BY THESE PRESENTS: That, CRV Watermark Granite La Quinta, LLC, as Principal, and the ARCH INSURANCE COMPANY, a corporation organized and existing under the laws of the State of MISSOURI and authorized to transact surety business in the State of California as Surety, are held and firmly bound unto City of La Quinta, as Obligee, in the sum of One Hundred Sixty-seven Thousand Four Hundred and NO/100 DOLLARS ($167,400.00), for which the payment whereof, well and truly to be made, said Principal and Surety bind themselves, their heirs, administrators, successors, and assigns, jointly and severally, firmly by these presents. THE Condition of the foregoing obligation is such that, whereas the above bounden Principal has entered into a contract/agreement, dated 01/16/06, with the Obligee to do and perform the following work; to wit: Tract May #31798 NOW, THEREFORE, if the above bounden Principal shall well and truly perform the work contracted to be performed under said contract, then this obligation shall be void; otherwise to remain in full force and effect. SIGNED, SEALED, DATED: 01/16/06 CR aterm rk Granite La Quinta, LLC (Principal) By: Arch Insuranc,, Company (Surety) By. Barry D. Nordstrom, Attorney In Fact DIRECT CORRESPONDENCE TO: ARCH INSURANCE COMPANY, 135 N. LOS ROBLES AVE., PASADENA, CA 91101 PHONE (626) 535-0855 . FAX (626) 535-0875 Subdivision Performance Bond.dot ARCH Insurance Company ARCH Surety NOTICE — DISCLOSURE OF TERRORISM PREMIUM In accordance with the Terrorism Risk Insurance Act of 2002, we are providing this disclosure notice for bonds on which Arch Insurance Company is the surety. DISCLOSURE OF PREMIUM The portion of the premium attributable to coverage for terrorist acts certified under the Act is Zero Dollars ($0.00). DISCLOSURE OF FEDERAL PARTICIPATION IN PAYMENT OF TERRORISM LOSSES The United States will pay ninety percent (90%) of covered terrorism losses exceeding the applicable insurer deductible. CALIFORNIA•ACKNOWLEDGMENT .'. �es�. State of California ss. County of San Diego On / - /�2 • QC , before me, Trisha A. Togonon, Notary Public Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Barry D. Nordstrom Name(s) of Signer(s) I 1 TRISHA A. TOGONON Commission * 1441820 ,•; Notary Public - California v . San Diego County My Comm, Exphes Oct 28, 2007 X personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capac'ity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WI ESS my handand official seal. Place Notary Seal Above%C_ — `�' Signature of Notary P&Tic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: /— 16 ` 0 v Number of Pages: _ Signer(s) Other Than Named Above: Capacity(ies) Claimed b Signer(s) Signer's Name: Barry C ordstrom ■ ■ ■ r; ■ ■ ■ Individual Corporate Officer — Title(s): _ Partner — ❑ Limited ❑ General Attorney in Fact Trustee Guardian or Conservator Other: Signer Is Representing: Arch Insurance Company RIGHT THUMBPRINT OF SIGNER .. of thumb here Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact . Top of thumb here Cl Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: 0 2004 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 Item No. 5907 Reorder. Call Toll -Free 1-800-876-6827 STATE OF CALIFORNIA } COUNTY OF SAN DIEGO } On January 16, 2006 before me, Marianne Allen, Notary Public, Personally appeared Thomas P. Dobron-------------------------------- 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. WITNESS my hand and official seal. MARIANNE ALLEN Comm�Slon � 1462983 140No PubBC - Co#faNa Sat Dlego Courtly My Calm E�pYesFeb 11, 2006 Signature (NOTARY SEAL) POWER OF ATTORNEY Know All Men By These Presents: That the Arch Insurance Company, a corporation organized and existing under the laws of the State of Missouri, having its principal office in Kansas City, Missouri (hereinafter referred to as the "Company") does hereby appoint Barry D. Nordstrom of La Jolla, CA its true and lawful Attorney(s)-in-Fact, to make, execute, seal, and deliver from the date of issuance of this power for and on its behalf as surety, and as its act and deed: Any and all bonds and undertakings EXCEPTION: NO AUTHORITY is granted to make, execute, seal and deliver bonds or undertakings that guarantee the payment or collection of any promissory note, check, draft or letter of credit. This authority does not permit the same obligation to be split into two or more bonds in order to bring each such bond within the dollar limit of authority as set forth herein. The Company may revoke this appointment at any time. The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said Company as fully and amply to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at its principal office in Kansas City, Missouri. This Power of Attorney is executed by authority of resolutions adopted by unanimous consent of the Board of Directors of the Company on March 3, 2003, true and accurate copies of which are hereinafter set forth and are hereby certified to by the undersigned Secretary as being in full force and effect: "VOTED, That the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, or the Secretary shall have the power and authority to appoint agents and attomeys-in-fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings, obligatory in the nature thereof, and any such officers of the Company may appoint agents for acceptance of process_" This Power of Attorney is signed, sealed and certified by facsimile under and by authority of the following resolution adopted by the unanimous consent of the Board of Directors of the Company on March 3, 2003: VOTED, That the signature of the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, and the signature of the Secretary, the seal of the Company, and certifications by the Secretary, may be affixed by facsimile on any power of attorney or bond executed pursuant to the resolution adopted by the Board of Directors on March 3, 2003, and any such power so executed, sealed and certified with respect to any bond or undertaking to which it is attached, shall continue to be valid and binding upon the Company. OOML0013 00 03 03 Page 1 of 2 Printed in U.S.A. In Testimony Whereof, the Company has caused this instrument to be signed and its corporate seal to be affixed by their authorized officers, this 10th day of October , 20 03 Attested and Certified snae co CORPORATE ��RS U SEAL C 1971 / �ISiOYfI Joseph S. L I, Corporate Secretary STATE OF CONNECTICUT SS COUNTY OF FAIRFIELD SS Arch Insurance Company Thomas P. Luckstone, Vice President Melissa B. Gilligan, a Notary Public, do hereby certify that Thomas P. Luckstone and Joseph S. Labell personally known to me to be the same persons whose names are respectively as Vice President and Corporate Secretary of the Arch Insurance Company, a Corporation organized and existing under the laws of the State of Missouri, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they being thereunto duly authorized signed, sealed with the corporate seal and delivered the said instrument as the free and voluntary act of said corporation and as their own free and voluntary acts for the uses and purposes therein set forth. OFFICIAL SEAL W:LJW B. GIUX", ftary Public I�L� zZa—I)a zxvj-& e2z) SWe of M Cortunission Expires ecli u 28 2005 Melissa B. Gilligan, Notary Public My commission expires 2-28-05 CERTIFICATION I, Joseph S. Labell, Corporate Secretary of the Arch Insurance Company, do hereby certify that the attached Power of Attorney dated October 10. 2003 on behalf of the person(s) as listed above is a true and correct copy and that the same has been in full force and effect since the date thereof and is in full force and effect on the date of this certificate; and I do further certify that the said Thomas P. Luckstone, who executed the Power of Attorney as Vice President, was on the date of execution of the attached Power of Attorney the duly elected Vice President of the Arch Insurance Company. IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of the Arch Insurance Company on this 16th day of Janua[yr 120 6. Joseph 5 ell, Corporate Secretary This Power of Attomey limits the acts of those named therein to the bonds and undertakings specifically named therein and they have no authority to bind the Company except in the manner and to the extent herein stated. once ca CORPORATE 3'O SEAL 10 9 t� �I110111 Home Office: Kansas City, MO OOML0013 00 03 03 Page 2 of 2 Printed in U.S.A. 9L80-9£9 (9Z9) XV-3 • 9980-9£9 (9Z9) 3NOHd W0 W dO 'VN34`dSVd '9Z8# "3AV S31EMI SOI 'N 9£ l 'dmjo S2OdO13AW '8 S2iO-LOV&LNOO H08V :01213MAQAiOdSmmOa . 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U6l x ms n y �ivaoeaoo �O e'JYY� paglliao pue palsaAV AuedwoO aouemsul gojy £o oZ ' jagoloo ;o Aep g30 L slgl 'sjaoL4o pazljoglne nagl Aq pare aq of leas alejodioo sp pue pau6ls aq of luawrulsui slgl pasneo seq Auedwoo aql ;o8JagM Auowllsal ul -algi;onpap jainsui algeoildde ay; 6uip99oxa sassol wsuaJa; paJanoo 10 (%06) ;ueoaad Alaulu Aed IIIM save;g pa;iun ayl S3SSOl WSIHOUN31 d01N3WAVd NI NOIlVdI011tlVd lVN3a3d d0 3unsolOSIa ,(00,0$) siellod ojaz sl ;oy ay; japun p811l}P93 s;oe;siaoJJ91 Jo} 96eaan00 o; alge;nqu;;e wniwaid au; jo uoi}Jod ayl wniW3Md d0 3unsoloSIa -Aleins ay; si Auedwoo eouejnsul gojy goiL4m uo spuoq jol aoi;ou ainsolosip siy; 6uipinad aae ann `ZOOZ jo ;oy aoueansul �si�l wspoajal ay; u;IM aouepi000e ul SIaMS HMV wniW3Ud WSRI02 u31 d0 minsOlOSIa — 33IION ,�uudwoo amainsuI HDNV ARCH INSURANCE COMPANY Bond Number : SU 5018207 ENDORSEMENT To be attached to and form a part of Material and Labor Bond, issued by the undersigned company, as Surety on behalf of CRV Watermark Granite La Quinta, LLC as Principal, in favor of The City Council of the City of La Quinta as Obligee, Effective 1/18/06, the Principal and the Surety hereby agree to amend the attached bond as follows: Amend the name of the Principal to WATERMARK GRANITE LA QUINTA, LLC All else remains the same. Provided that the liability under this endorsement shall be part of, and not in addition to, the liability under the attached Bond, and in no event shall be cumulative. Nothing herein contained shall vary, alter or extend any of the provisions, conditions, or other terms of this bond except as above stated. SIGNED, SEALED, DATED: January 18, 2006 W rani Quinita, LLC (Principal) By: By: The City Council of the City of La Quinta (Obligee) Arch Insurance Company (Surety) By: Barry . Nordstrom, Attorney In Fact Endorsement Number: One (1) DIRECT CORRESPONDENCE TO: ARCH CONTRACTORS & DEVELOPERS GROUP, 135 N. LOS ROBLES AVE., #825, PASADENA, CA 91101 PHONE (626) 535-0855 • FAX (626) 535-0875 ARCH Insurance Company ARCH Surety NOTICE — DISCLOSURE OF TERRORISM PREMIUM In accordance with the Terrorism Risk Insurance Act of 2002, we are providing this disclosure notice for bonds on which Arch Insurance Company is the surety. DISCLOSURE OF PREMIUM The portion of the premium attributable to coverage for terrorist acts certified under the Act is Zero Dollars ($0.00). DISCLOSURE OF FEDERAL PARTICIPATION IN PAYMENT OF TERRORISM LOSSES The United States will pay ninety percent (90%) of covered terrorism losses exceeding the applicable insurer deductible. CALIFORNIA• • _D State of California County of San Diego I ss. On /- I Y- U� , before me, Trisha A. Togonon, Notary Public Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Barry D. Nordstrom Name(s) of Signer(s) Toma T� ONON+'"� , Commis M # 1 "7820 .,� Notary PuWlc - Ccllfotnla San Dlego County My Comm. Exphea Oct 28, 2007 X personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WIT ESS my hand and official seal. Place Notary Seal Above 4 Signature of Nota ublic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: 'V Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed b Signer(s) Signer's Name: Barry C Vordstrom ❑ Individual ■ ■ ■ ■ ■ Corporate Officer — Title(s): Partner — ❑ Limited ❑ General Attorney in Fact Trustee Guardian or Conservator Other: Signer Is Representing: Arch Insurance Company RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer's Name: ❑ Individual Corporate Officer— Title(s): Partner — ❑ Limited ❑ General Attorney in Fact Trustee Guardian or Conservator Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of thumb here 0 2004 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, GA 91313-2402 Item No. 5907 Reorder. Call Toll -Free 1-600-676-6827 STATE OF CALIFORNIA } COUNTY OF SAN DIEGO } On January 24, 2006 before me, Marianne Allen, Notary Public, Personally appeared Thomas P. Dobron-------------------------------- 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. WITNESS my hand and official seal. MARIANNE ALLEN Comff*don # 1462963 1WNotary Pubk - Cd t M10 San DkW County MVC4mmE)0wFeb11.2= Signature (NOTARY SEAL) POWER OF ATTORNEY Know All Men By These Presents: That the Arch Insurance Company, a corporation organized and existing under the laws of the State of Missouri, having its principal office in Kansas City, Missouri (hereinafter referred to as the "Company") does hereby appoint Barry D. Nordstrom of La Jolla, CA its true and lawful Attorneys) -in -Fact, to make, execute, seal, and deliver from the date of issuance of this power for and on its behalf as surety, and as its act and deed: Any and all bonds and undertakings EXCEPTION: NO AUTHORITY is granted to make, execute, seal and deliver bonds or undertakings that guarantee the payment or collection of any promissory note, check, draft or letter of credit. This authority does not permit the same obligation to be split into two or more bonds in order to bring each such bond within the dollar limit of authority as set forth herein. The Company may revoke this appointment at any time. The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said Company as fully and amply to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at its principal office in Kansas City, Missouri. This Power of Attorney is executed by authority of resolutions adopted by unanimous consent of the Board of Directors of the Company on March 3, 2003, true and accurate copies of which are hereinafter set forth and are hereby certified to by the undersigned Secretary as being in full force and effect: "VOTED, That the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, or the Secretary shall have the power and authority to appoint agents and attomeys-in-fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings, obligatory in the nature thereof, and any such officers of the Company may appoint agents for acceptance of process." This Power of Attorney is signed, sealed and certified by facsimile under and by authority of the following resolution adopted by the unanimous consent of the Board of Directors of the Company on March 3, 2003: VOTED, That the signature of the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, and the signature of the Secretary, the seal of the Company, and certifications by the Secretary, may be affixed by facsimile on any power of attorney or bond executed pursuant to the resolution adopted by the Board of Directors on March 3, 2003, and any such power so executed, sealed and certified with respect to any bond or undertaking to which it is attached, shall continue to be valid and binding upon the Company. OOML0013 00 03 03 Page 1 of 2 Printed in U.S.A. In Testimony Whereof, the Company has caused this instrument to be signed and its corporate seal to be affixed by their authorized officers, this 10th day of October , 20 03 Arch Insurance Company Attested and Certified ,yance Q MIPMATE o��0 e scu 1971 {,. / �I!lOYfl Joseph S. L I, Corporate Secretary STATE OF CONNECTICUT SS COUNTY OF FAIRFIELD SS Thomas P. Luckstone, Vice President Melissa B. Gilligan, a Notary Public, do hereby certify that Thomas P. Luckstone and Joseph S. Labell personally known to me to be the same persons whose names are respectively as Vice President and Corporate Secretary of the Arch Insurance Company, a Corporation organized and existing under the laws of the State of Missouri, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they being thereunto duly authorized signed, sealed with the corporate seal and delivered the said instrument as the free and voluntary act of said corporation and as their own free and voluntary acts for the uses and purposes therein set forth. OFFM SEAL ,, MEUSSAB. of Conneola,t" Pudic ��4 M Commission February 2005 Melissa B. Gilligan, Notary Public My commission expires 2-28-05 CERTIFICATION I, Joseph S. Labell, Corporate Secretary of the Arch Insurance Company, do hereby certify that the attached Power of Attorney dated October 10. 2003 on behalf of the person(s) as listed above is a true and correct copy and that the same has been in full force and effect since the date thereof and is in full force and effect on the date of this certificate; and I do further certify that the said Thomas P. Luckstone, who executed the Power of Attorney as Vice President, was on the date of execution of the attached Power of Attorney the duly elected Vice President of the Arch Insurance Company. IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of the Arch Insurance Company on this 18th day of January 2006. Joseph S ell, Corporate Secretary This Power of Attomey limits the acts of those named therein to the bonds and undertakings specifically named therein and they have no authority to bind the Company except in the manner and to the extent herein stated. Home Office: Kansas City, MO OOML0013 00 03 03 Page 2 of 2 Printed in U.S.A. BOND NUMBER: SU5018207 SUBDIVISION IMPROVEMENTS Parcel Map No. 31798 LABOR AND MATERIAL BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of tits City of La Quints has approved the final rnap for Parcel Map No. 31798 , prior to Installation of certain designated Public improvements required by the Conditions of Approve the subW reap, in accordance with the California Map Act (Government Code Section 66402) WHEREAS, the City Council of the City of La Cuintre, State of Celifomie, and CRV Watermark Granite La Quinta. I I r hereinafter designated as "the principal' have enter into an agreement whereby the principal magrees to Install and complete certain designated public improvements, which agreement, dated 01 / 6 200 6, and identified as Parcel Map No. 31798 , is hereby refs to and made a part hereof, end WHEREAS, under the terms of the agreement, the principal Is required before entering upon the performance of the work, to file a good and suffident payment bond with the City of La Quinta to secure the claims to which reference is made in Title 15 (cotnnwncing with Section 3082) of Pert 4 of Division 3 of the Civil Code of the State of Califomis. NOW, THEREFORE, the principal and the undersigned as corporate surety, are held firmly bound unto the City of l.a Quinia and all contractors. subcontractors, laborers, m&terialmen, and other persons employed in the performance of the agreement and referred to in Title 18 (cornmendrig with Section 3082) % Part 4 of Division 3 of the Civil Code In the sum of Two Hundred Twent -sev Bred Eighty-two and /100 DOLLARS (S 227,482.00 ), for mat mished or labor theirson of any lUnd, or for amounts due under the LTnempk*neM Insurance Act with respect to this work or labor, that the surety will pay the same in an amount not exceeding the amount herextabove set forth, and ado in cane suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, Including reasonable adomey s fees, Incurred by city In successfully enforcing No obligation. to be awarded and fixed by the couA, and to be taxed as costs and to be inducted 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 obligatian shalt become nud and void, ott*Wse it shah be and remain in full force and effect. Fxn2 - Labor and Materiel Band Page 1 or 2 The surety hereby stipulates and agrees that no sharp+, extension of dine, 81lWretion, or addition to the terms of the8WwMqM or the spedftsdomacoompanyhq the seine shalt in any manner atfecx Its obligations on this bond, and It does hereby waive nodoe of any such changes, extension, alteration, or addition. in witness whereof, this wobument has been duly exeWW by the prindpgd And surety above named, on 01l16 .20011. (Seal) (—�Wrllatum o Princ+D Arch Insurance Company 135 N. Robles #825 Pasadena, Ca 91101 Barry D. Nordstrom, Attorney -in -fact F202 - isobar wVd MMarW 8oW Pop 2 of 2 CALIFORNIA•ACKNOWLEDGMENT State of California ss. County of San Diego On / `16, ' O 6 , before me, Trisha A. Togonon, Notary Public Date Name and Title of Officer (e.g., "Jane Doe, Notary Public') personally appeared Barry D. Nordstrom Name(s) of Signer(s) TRIStfA A TOGONON CommiNlon 0 1447820 5 Notary Public - Colifomlo San Diego County fuy Comm. ExPITN Oaf 28, 2007 r X personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WIT ESS my hand and I offffiicseal. Place Notary Seal Above Signature of Notarthublic 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 mother document. Description of Attached Document Title or Type of Document: ; 19 4 Document Date: _ �` �[� C a Number of Pages: (51— Signer(s) Other Than Named Above: Capacity(ies)aimed b Signer(s) Signer's Name: Barry D.yNordstrom ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General • - X Attorneyin Fact t•- Top ofhumb here ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Arch Insurance Company Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact " • Top of thumb here ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: G:\✓i� �2`r%�=✓:��' �':�✓�.�✓�-:�L'✓':�S�X�/.':�t�!tiL�:!L�:�?4�:�':�=�':�✓:�y.�✓�-:�✓:�✓s,�:�3:\✓:�:�:�✓d�✓:�✓L�:n 0 2004 National Notary Association - 9350 De Soto Ave , PO. Box 2402 - Chatsworth, CA 91313-2402 Item No. 5907 Reorder: Call Toll -Free 1-800-876-6827 STATE OF CALIFORNIA } COUNTY OF SAN DIEGO } On January 16, 2006 before me, Marianne Allen, Notary Public, Personally appeared Thomas P. Dobron-------------------------------- 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. WITNESS my hand and official seal. MARIANNE ALIEN Commission # 1462983 Notary Public - Cdfomla San Diego CoWtY My Comm. E�1►esFeb 11. 2OW Signature (NOTARY SEAL) POWER OF ATTORNEY Know All Men By These Presents: That the Arch Insurance Company, a corporation organized and existing under the laws of the State of Missouri, having its principal office in Kansas City, Missouri (hereinafter referred to as the "Company") does hereby appoint Barry D. Nordstrom of La Jolla, CA its true and lawful Attorney(s)-in-Fact, to make, execute, seal, and deliver from the date of issuance of this power for and on its behalf as surety, and as its act and deed: Any and all bonds and undertakings EXCEPTION: NO AUTHORITY is granted to make, execute, seal and deliver bonds or undertakings that guarantee the payment or collection of any promissory note, check, draft or letter of credit. This authority does not permit the same obligation to be split into two or more bonds in order to bring each such bond within the dollar limit of authority as set forth herein. The Company may revoke this appointment at any time The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said Company as fully and amply to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at its principal office in Kansas City, Missouri. This Power of Attorney is executed by authority of resolutions adopted by unanimous consent of the Board of Directors of the Company on March 3, 2003, true and accurate copies of which are hereinafter set forth and are hereby certified to by the undersigned Secretary as being in full force and effect: "VOTED, That the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, or the Secretary shall have the power and authority to appoint agents and attorneys -in -fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings, obligatory in the nature thereof, and any such officers of the Company may appoint agents for acceptance of process." This Power of Attorney is signed, sealed and certified by facsimile under and by authority of the following resolution adopted by the unanimous consent of the Board of Directors of the Company on March 3, 2003: VOTED, That the signature of the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary, and the signature of the Secretary, the seal of the Company, and certifications by the Secretary, may be affixed by facsimile on any power of attorney or bond executed pursuant to the resolution adopted by the Board of Directors on March 3, 2003, and any such power so executed, sealed and certified with respect to any bond or undertaking to which it is attached, shall continue to be valid and binding upon the Company. OOML0013 00 03 03 Page 1 of 2 Printed in U.S.A. In Testimony Whereof, the Company has caused this instrument to be signed and its corporate seal to be affixed by their authorized officers, this 10th day of October , 20 03 Attested and Certified c'yanc® C 0 MRPOfATE V SEM C 1971 / Ibaeud Joseph S. L I, Corporate Secretary STATE OF CONNECTICUT SS COUNTY OF FAIRFIELD SS Arch Insurance Company Thomas P. Luckstone, Vice President I Melissa B. Gilligan, a Notary Public, do hereby certify that Thomas P. Luckstone and Joseph S. Labell personally known to me to be the same persons whose names are respectively as Vice President and Corporate Secretary of the Arch Insurance Company, a Corporation organized and existing under the laws of the State of Missouri, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they being thereunto duly authorized signed, sealed with the corporate seal and delivered the said instrument as the free and voluntary act of said corporation and as their own free and voluntary acts for the uses and purposes therein set forth. OFF0AL SEAL. M Canmist* of CDffr@CbC1A ExpiresFetxu 28 20Q5 Melissa B. Gilligan, Notary Public My commission expires 2-28-05 CERTIFICATION I, Joseph S. Labell, Corporate Secretary of the Arch Insurance Company, do hereby certify that the attached Power of Attorney dated October 10. 2003 on behalf of the person(s) as listed above is a true and correct copy and that the same has been in full force and effect since the date thereof and is in full force and effect on the date of this certificate; and I do further certify that the said Thomas P. Luckstone, who executed the Power of Attorney as Vice President, was on the date of execution of the attached Power of Attorney the duly elected Vice President of the Arch Insurance Company. IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of the Arch Insurance Company on this 16th day of Januar r 2006. Joseph S ell, Corporate Secretary This Power of Attomey limits the acts of those named therein to the bonds and undertakings specifically named therein and they have no authority to bind the Company except in the manner and to the extent herein stated. y�once C COYYOMTE O�'0 SEAL = YY sn rb�e�a Home Office: Kansas City, MO 00ML0013 00 03 03 Page 2 of 2 Printed in U.S.A. ARCH Insurance Company NOTICE — DISCLOSURE OF TERRORISM PREMIUM ARCH Surety In accordance with the Terrorism Risk Insurance Act of 2002, we are providing this disclosure notice for bonds on which Arch Insurance Company is the surety. DISCLOSURE OF PREMIUM The portion of the premium attributable to coverage for terrorist acts certified under the Act is Zero Dollars ($0.00). DISCLOSURE OF FEDERAL PARTICIPATION IN PAYMENT OF TERRORISM LOSSES The United States will pay ninety percent (90%) of covered terrorism losses exceeding the applicable insurer deductible.