2006 - 31852 Polo Estates - SIA Off-Site ImprovementsCITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 31852
OFF -SITE IMPROVEMENTS
THIS SUBDIVISION IMPROVEM T GREEMENT (the Agreement„) is made and entered into this
day of /_i-"-C C Z , 20
1_.c: rj : , by and between MA L. RINDLESBACH, TRUSTEE, 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. 31852 (the "Tract") pursuant
to the provisions of Section 66410, et sec. of the California Government Code (the "Subdivision Map
Act") .
B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and
private improvements (the "Improvements").
C. The Improvements have not been installed and accepted at this time.
D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the
Improvements as provided in Section 66462 of the Subdivision Map Act.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall
furnish original improvement plans meeting the requirements of the City Engineer.
2. Improvements. Subdivider shall construct the public and private street, drainage, utility, landscaping,
and other improvements required to be constructed or agreed to be constructed under this
Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards,
specifications, sequence, and scheduling of construction shall be as approved by the City Engineer.
3. Improvement Security.
A. One class of security to be provided by Subdivider, hereinafter referred to as "performance
security," shall assure the faithful performance of this Agreement including construction of the
Improvements, payment of Subdivider's fair share of Improvements which have been or will be
constructed by others ("Participatory Improvements"), and payment of plan check and permit
fees. A second class of security to be provided by Subdivider, hereinafter referred to as
"payment security," shall assure the payment of the cost of labor, equipment and materials
supplied to construct the Improvements. A third class of security to be provided by Subdivider,
hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the
Improvements for a period of one year following the completion and acceptance of the
Improvements. Subdivider shall furnish performance and payment security prior to and as a
condition of City Council approval of the Map. Subdivider shall provide warranty security after
Improvements are complete and accepted by the City Council and prior to or concurrently with
the final release of performance security. Warranty security shall not be required for
Monumentation or Participatory Improvements. However, the City may utilize Monumentation
Security for performance of or payment for the work in accordance with the Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty security, and in addition to the face amount of each such security, each such security
shall include and assure the payment of costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby
secured.
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B. Improvement security shall conform to Section 66499 of the California Government Code and one
or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government
Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570
(latest version).
3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or
better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange
(of the Los Angeles County Treasurer's office).
4) Irrevocable letters of credit, issued by one or more financial institutions meeting the
requirements of Paragraph (3), pledging that the funds necessary to carry out the completion
of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund
which is not subject to levy or attachment by any creditor of the depositor until released by
City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to
the letters of credit will be paid upon the written demand of City and that such written demand
need not present documentation of any type as a condition of payment, including proof of
loss. The duration of any such letter of credit shall be for a period of not less than one year
from the execution of the agreement with which it is provided and shall state, on its face, that
the letter of credit will be automatically renewed until such time that City authorizes its
expiration or until sixty (60) days after City receives notice from the financial institution of
intent to allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the
final map or Tract map for which the Improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the Improvements and shall include
the power of sale of the real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and appurtenances thereunto
belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and
profits thereof. The collateral value of the property shall be established at Subdivider's
expense through an appraisal approved by City.
6) An instrument of credit from an agency of the state, federal or local government, when any
agency of the state, federal, or local government provides at least Twenty Percent (20%) of
the financing for the Improvements.
7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in
Section 16430 of the California Government Code, deposited, at City's option, with City or a
responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal One Hundred Percent (100%) of the estimated cost of
constructing the Improvements, including payment of plan check and permit fees, as estimated by
the City Engineer or a duly authorized representative of the City Engineer. The amount of
Payment security shall equal the amount of the amount of performance security, except as
otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security
shall equal Ten Percent (10%) of the amount of performance security except as otherwise set
forth in Exhibit A.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to
the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract
map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid
separately for each different form and/or source (surety or financial institution) of security initially
submitted and for substitution of securities but shall not be required for submittal of warranty
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security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as follows-
1 ) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.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 Tract Improvements. However, if at the end
of the one-year warranty period, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the warranty, warranty
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security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer.
4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits
required for that phase of work and pay all required fees. Work performed under a permit or permits
shall comply with all provisions of the required permits.
5. Off -site Improvements. When the construction of one or more of the Improvements requires or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its
best efforts purchase such real property at a reasonable price. In the event that Subdivider is
unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider
may request in writing that City attempt to acquire such real property. City may, but is not required to,
agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and
Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said
separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%)
of the appraised fair market value of the real property. Any unexpended portion of said advance shall
be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be
paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall
the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate
Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the
Conditions of Approval.
6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety
(90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later date, as determined by the
City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of
the Improvements within the specified time periods shall constitute cause for City, in its sole
discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise
improvement security requirements as necessary to ensure completion of the improvements, and/or
to require modifications in the standards or sequencing of the Improvements in response to changes
in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdivider's obligations hereunder.
7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to
strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected
by such events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of
time for completion of the Improvements. The City Council, in its sole and absolute discretion, may
approve or deny the request or conditionally approve the extension with additions or revisions to the
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance
to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the
securities shall be sufficient to ensure the performance of and payment for Improvements that remain
incomplete at the time of the extension, and to provide warranty security on completed
Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that
the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor
setting the monuments, and intersection monument tie -outs for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall
be accompanied by any required certifications from Subdivider's engineers or surveyors, approval
letters from other agencies having jurisdiction over and approval authority for improvements required
by this Agreement or the Conditions of Approval, and any required construction quality documentation
not previously submitted.
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Upon receipt of said request, the City Engineer or a duly -authorized representative will review the
required documentation and will inspect the Improvements. If the Improvements are determined to
be in accordance with applicable City standards and specifications, and as provided herein,
obligations required by the Conditions of Approval and this Agreement have been satisfied, and
Subdivider has provided revised plans as required in Paragraph 11, hereinafter, the City Engineer
shall recommend acceptance of the Improvements by the City Council.
11. Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the
plans depict the actual Improvements constructed. When necessary revisions have been made, each
separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or
"Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the
improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to
the City Engineer.
12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one
(1) year, beginning on the date of final acceptance of the Improvements by the City Council, against
any defective work or labor done, or defective materials furnished, and shall repair or replace such
defective work or materials.
13. Release of Security. City shall retain and release securities in accordance with the provisions of
Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require
Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may
affect the amount of payment security released.
14. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not
been performed within sixty (60) days after written notice of default from City, then City may perform
the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of
suit and reasonable attorney's fees incurred by City in enforcing such obligation. In cases of
emergency or compelling public interest, as determined by the City Engineer, the requirement for
written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other
provisions of this Article shall remain in effect.
15. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives,
executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold
City and its officers, employees, agents, representatives, and assigns harmless from and against any
losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in
any way connected with Subdivider's performance herein under, including costs of suit and
reasonable attorneys' fees.
16. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Conditions of Approval. In the event that any requirement or condition of this
Agreement is inconsistent with or fails to include one or more provisions of the Conditions of
Approval, which document(s) is (are) incorporated herein by reference, the provisions in the
Conditions of Approval shall remain in effect and shall control.
17. Severability. In the event that any provision or provisions of this Agreement are held unenforceable,
all provisions not so held shall remain in full force and effect.
18. General Provisions.
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent
by registered or certified mail, return receipt requested, to the parties at their respective
addresses indicated hereon. Notices personally delivered shall be effective upon delivery.
Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of
delivery or refusal indicated on the return receipt. Either party may change its address for notices
hereunder by notice to the other given in the manner provided in this subparagraph.
B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns, and successors of the parties hereto.
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C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
D. This Agreement shall be governed by and interpreted with respect to the laws of the State of
California.
E. In the event of any dispute between the parties with respect to this Agreement, the prevailing
party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing
party.
F. Any failure or delay by either party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075 -/--
L Thomas P. Genovese, City Manager
ATTEST:
Cit
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Date
Developer: Rindlesbach Cru-Ct+pn Inc.
2489 East HAVen Lane
Holladay, lft 84117;
Atten: Malik L. Rir dlles ch
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By.
Date
Title: f '.: - �
By.
Title:
Reviewed and Approved.
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APPTVed as; to Form:
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TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Polo Estates TM 31852\OFFSITE_SIA.doc 6 of 7
Exhibit A
OFF -SITE SECURITY — TRACT MAP NO. 31852
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
Street
$
127,112
$
127,112
8' Meandering Sidewalk
$
14,985
$
14,985
10' Equestrian Trail
$
20,440
$
20,440
Perimeter Landscaping
$
108,000
$
108,000
Relocate Existing Telephone Poles
$
180,000
$
180,000
Sign & Striping
$
1,925
$
1,925
Totals
$
452,462
$
452,462
Standard 10% Contingency
$
45,246
$
45,246
Total Construction Cost
$
497,708
$
497,708
Professional Fees & Plans, Design 10%
$
49,771
$
49,771
Professional Fees, Const 10%
$
49,771
$
49,771
Bond Amount
780,618
780,618
T1Project Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Polo Estates TM 31852\OFFSITE_SIA.doc 7 of 7
OUTSTANDING BOND REPORT
Name: Mark L. Rindlebach, Trustee (Polo Estates ??)
Tract No. 31852
Date of Contract: March 15, 2006
Required Bond Amounts:
On -Site:
Grading $ 79,685 / $ 79,685
Streets $104,348 / $104,348
Water $286,572 / $286,572
Storm Drain $ 38,814 / $ 38,814
Sewer $ 67,410 /$ 67,410
Monumentation $ 2,100
Standard 10% Contingency $ 57,893 / $ 57,683
Prof. Fees Design 10% $ 63,682 / $ 63,451
Prof. Fees Construction 10% $ 63,682 / $ 63,451
Off -Site:
Streets $127,112 / $127,112
Sidewalk $ 14,985 / $ 14,985
Equestrian Trail $ 20,440 / $ 20,440
Landscaping $108,000 / $108,000
Relocate Telephone Poles $180,000 / $180,000
Sign & Striping $ 1,925 / $ 1,925
Standard 10% Contingency $ 45,246 / $ 45,246
Prof. Fees Design 10% $ 49,771 / $ 49,771
Prof. Fees Construction 10% $ 49,771 / $ 49,771
PM10 $ 17,000
Bond Company: Bond Safeguard Insurance Company
Outstanding Bonds:
Amount: Bond No. Date Cancelled/Released:
$764,186 (P) 5007405
$764,186 (L&M) same
(L&M amt. is over)
1 $780,618 (P)
$780,618 (L&M)
5007404
same
$ 17,000 (PM10) cash deposit in Finance
Released 12/07/06
Bond No: 5007404
Premium: $15,612.00
SUBDIVISION IMPROVEMENTS
Tract Map No. 31852
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Tract Map
No. 31852 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
Rindlesbach Construction, Inc. Profit Sharing Plan hereinafter designated as ("principal')
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated , 200_ , and identified as
Tract Map No 31852 , is hereby referred to and made a part hereof; and
WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and BOND SAFEGUARD INSURANCE COMPANY
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum
of************************************************** DOLLARS ($780,618.00 ) lawful
money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our
heirs, successors, executors and administrators, jointly and severally, firmly by these presents.
The condition of this obligation is such that if the above bounded principal, his or its heirs, executors,
administrators. successors or assigns, shall in all things stand to and abide by, and well and truly keep and
perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as
therein provided, on his or their part, to be kept and performed at the time and in the manner therein
specified, and in all respects according to their true intent and meaning, and shall indemnify and save
harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become
null and void, otherwise it shall be and remain in fu)) force and effect,
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there
shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
Seven Hundred Eighty Thousand Six Hundred Eighteen & 00/100***
F201 - Performance Bond Page 1 of 2
Bond No: 5007405
Premium: $15,284.00
SUBDIVISION IMPROVEMENTS
Tract Map No, 31852
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Tract Map
No, 31852 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
Rindlesbach Construction, Inc. Profit Sharing Plan hereinafter designated as ("principal")
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated , 200_ , and identified as
Tract Map No 31852 , is hereby referred to and made a part hereof; and
WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and BOND SAFEGUARD INSURANCE COMPANY
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum
Of************************************************* DOLLARS ($764,186.00 ) lawful
money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our
heirs, successors, executors and administrators, jointly and severally, firmly by these presents.
The condition of this obligation is such that if the above bounded principal, his or its heirs, executors,
administrators. successors or assigns, shall in all things stand to and abide by, and well and truly keep and
perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as
therein provided, on his or their part, to be kept and performed at the time and in the manner therein
specified, and in all respects according to their true intent and meaning, and shall indemnify and save
harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become
null and void, otherwise it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there
shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
Seven Hundred Sixty Four Thousand One Hundred Eighty Six & 00/100***
F201 - Performance Bond Page 1 of 2
Bond Number: 5007404
Premium: N/A
SUBDIVISION IMPROVEMENTS
Tract Map No. 31852
LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Tract Map
No. 31852 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Ouinte, State of California, and
Rindlesbach Construction, Inc. Profit Sharing Plan hereinafter designated as The principal" have
entered into an agreement whereby the principal agrees to install and complete certain designated public
improvements, which agreement, dated , 200 , and identified as
Tract Map No. 31852 , is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the agreement, the principal is required before entering upon the
performance of the work, to file a good and sufficient payment bond with the City of La Quinta to secure the
claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the
Civil Code of the State of California.
NOW, THEREFORE, the principal and the undersigned as corporate surety, are held firmly bound
unto the City of La Quinta and all contractors, subcontractors, laborers, materialmen, and other persons
employed in the performence of the agreement and referred to in Title 15 (commencing with Section 3082)
of Part 4 of Division 3 of the Civil Code in the sum of ***************************** **************
******** DOLLARS ($780,618.00 ), for materials furnished or labor thereon of any kind, or for
amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will
pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought
upon this bond, will pay, in addition to the face amount thereof. costs and reasonable expenses and fees,
including reasonable attorney' s fees, incurred by city in successfully enforcing this obligation, to be awarded
and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all
persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082)
of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit
brought upon this bond,
Should the condition of this bond be fully performed, then this obligation shall become null and void,
otherwise it shall be and remain in full force and effect.
Seven Hundred Eighty Thousand Six Hundred Eighteen & 00/100***
F202 - Labor and Material Bond Page 1 of 2
07/25/2007 WED 15:56 FAX 760 777 7107
La Quinta_ City Clerk
TRANSMISSION OK
JOB NO.
DESTINATION ADDRESS
PSWD/SUBADDRESS
DESTINATION ID
ST. TIME
USAGE T
PGS.
RESULT
*********************
*** TX REPORT ***
2270
919098904069
07/25 15:55
00'16
1
OK
'eat" at 4da
FAX TRANSMITTAL
TO: J. Patrick Ragan
Law Offices of J. Patrick Ragan
(909) 890-4069
FROM: Phyllis Manley, Deputy City Clerk
City of La Quinta
DATE: July 25, 2007
Page 1 of 1
cTr
4. lira
This is in response to, your faxed letter to me dated July 24, 2007,
regarding J&J Brothers Construction v. Gilger Resort Construction.
l wish to clarify that .my comments are related solely to the labor and
materials bond for off -site improvements only. The labor and materials
bond for all on -site improvements has already been released.
c&tit 4 4Quinrw
FAX TRANSMITTAL
TO: J. Patrick Ragan
Law Offices of J. Patrick Ragan
(909) 890-4069
FROM: Phyllis Manley, Deputy City Clerk
City of La Quinta
DATE: July 25, 2007
Page 1 of 1
This is in response to your faxed letter to me dated July 24, 2007,
regarding J&J Brothers Construction v. Gilger Resort Construction.
I wish to clarify that my comments are related solely to the labor and
materials bond for off -site improvements only. The labor and materials
bond for all on -site improvements has already been released.
Please let me know if we can be of any further assistance.
78-495 Calle Tampico — P.O. Box 1504, La Quinta, California 92253 • (760) 777-7000 FAX (760) 777-7107
07/24/2007 14:19 9098904069
JPATRICK RAGAN APLC PAGE 01/05
14
J. PATP.T.CK RAGAN
Law Ofilces
Of
J. PATRICK RAGAN
1881 S_ Business Center Drive, Suite 713
San Bernardino, California 92408
Telephone (909) 890-4039
Telefax (909) 890-4069
FAX COVER PAGE
Mailing Address
Post Office Box 5761
San Bernardino, CA 92412
THIS MESSAGE Is INTENDED ONLY FOR THE t1SE OF THE DW) JA . OR ENTTTS' TO 'WHICH IT )S ADDRESSED ANJ) MAY CONTAIN
INPORMATION THATIS PRII ILEGED, COMM:OVAL, AND EXEMPT FROM DISCLOSURE UNDER APPLICATION LAW- IFTHE READER
T7)EITS MESSAGE IS NOT THE?]N^!`PrNx1 1] nCJ(T` 1N;C,EM1'J DYES, ORAGEwr ktTs)'ONSrSLEDT.YSVERTNG TE1E MESSAGE TO THJ
YfTENDED MCI:PI:ENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTE N, 0X1 COPYING OIL THIS
COMMUNICATION IS STRICTLY lit o 'oTED- XP YOU HAVE RECEIVED TEO COMMUNICATION IN ERROR. P..IAASE NOTIFY US
31210DIATELY Ey TELEPHONE (COLLECT). THANK YOU.
DATE:
TO:
Mdid
Iqr5_ lli3 Ma1'Iiq
FAX NUM33ER: 1 1 f•�i 1
FROM:
RE:
COMMENTS:
J. PATRICK RAGAN. ESO.
NUMBER OF PAGES - (INCLUDING COVER PAGE): 5.
THANK YOU,
LAW OFFICES OF J. PATRICK RAGAN
A Professional Corporation
Emphtzsizing in ,Natters ,Related to 1314.ness, Real L4ste. e
and The Construction I.nductry
07/24/2007 14:19 9098904069
JPATRICK RAGAN APLC PAGE 02/05
J. PATRICK RAGAN
Law Offices
or
J. PATRICK RAGAN
1881 S. Business Center Drive, Suite 7B
San Bernardino, California 92408
Telephone (909) 890-4039
Telefax (909) 890.40i 9
July 24, 2007
Mrs. Phyllis Manley
City of La Quinta - City Clerk's Office
P.O. Box 1504
La Quinta, CA 92247
Mailing Address:
Post Office Box 5761
San Bernardino, CA 92412
VIA TELEFAX ONLY
(760) 777-7107
Re: J&J Brothers Construction Co,,, Inc. v. Wirier Resort Construction et. al,
Riverside County Superior Court Case No. INC 067261
Project: Polo Estates City of La Quinta, CA Tract # 31852
Off Site Labor and Materials Payment Bond.
Dear Mrs. Manley:
The undersigned acts as general, corporate and litigation counsel forJ&J
Brothers Construction Company, Inc. d.b.a. Jones Bros. Construction Co.
("Jones Bros.").
Jones Bros, to commence has commenced the above -styled action to
recover monies owed for labor and materials that Jones Bros. actually used and
incorporated for the off site water and sewer improvements on the Polo Estates
project. As such, Jones Bros. is a statutory claimant entitled to recover under any
Labor and Material Payment Bond in place covering its scope of work /Civil Code
§,§ 3110-3112 and §§ 3247-32521 The principal amount of Jones Bros.' claim is
$308,937.94_1
This letter shall confirm your telephone conversation with Mr. Schilling of
my office early today. You faxed to our office the attached Labor and Material
Bond #5007404 issued by Bond Safeguard Insurance Company, of which a copy
is attached.
' Jones Bros. has also sued for accrued interest and/or 2% prompt payment
penalty, costs and attorney's fees.
A Professional Corporation
Emphasizing In Matters Related to Business, Real Estate
and to The Construction Industry
07/24/2007 14:19 9098904069
JPATRICK RAGAN APLC PAGE 03/05
Mrs. Phyllis Manley
City of La Quinta - City Clerk's Office
July 24, 2007
page 2
You informed Mr. Schilling that the attached Labor and Material Bond
Number 5007404 is the payment bond that covers all offsite improvements for
the Polo Estates project. As such, this is the Payment Bond that covers the water
and sewer work performed by Jones Bros.
If the foregoing statements are in any way incorrect, or contrary to your
understanding please contact us immediately for clarification, If we do not hear
from you, we will assume that the above information is correct.
We thank you for your assistance in this regard, If this office can be of any
assistance in the above matter please do not hesitate to contact us.
JPR:js
Enclosure
cc: client
Very Truly Yours,
A Professional Corporatism
Emphasizing in Matters Related to Business,, Real Estate
and to The Construction Industry
07/24/2007 14:19 9098904069 JPATRICK RAGAN APLC
V (f ZV a U 1 TUI ii: i ¥A) au 777 7107 La Quinta, City Clerk
PAGE 04/05
001/001
13o i Number 5007404
Premium: N/A
SUBDIVISION IMPROVEMENTS
Tract Map No. 31852
LABOR AND MATERIAL BOND
x 64? kel
(91:51) gclo— 400
KNOW AL4, MIEN BY THESE PRESENTS:
'i hAT, the Clty Council of the City of La Quints has approved the Mai map for Tract Map
No• 31852 , prior to instalratlan of certain dot iiinated public improvements required by the
CDrtdftions et Approval for the s:di:iieet map, ir1 accordance with the California Map Act (Government Ced@
Sbotion 65462)
WHEREAS, the City Council of the City of La QUlnta, State of California, and
Ru dlesbacb Coxrstruotian, Inc, Profit Slim -ins Plan horeinafer tl06iansted as'Mt principal" have
entered Into an agreement whereby the principar agrees to install Bind complete certain designated pubilc
Improvements, which agreement. dated , 200 , and identified a;
Treat Map No, 3J 52 irti hereby referred to a—nd race o part hereof; and
WHEREAS, tinder the term° of the agrecrnont, the principal i required before catering upon the
perrolrriance of the work, to file a good! and Fi.rfficient pFayr-nont bond with the City of La Qulnta to s sera tho
claims to which reference to made in Title 15 (Dame rrenclng with Section 3052) of Pit 4 of Division 3 of the
Civil Code of the State of Cmlifomia
NOW, 'THEREFORE, the principal and the undorsignod as corporate surety, are held firmly brand
unto the City of La QuInte and all cgntreetorr., subcentrartars, laborers, materialrrten, and other persons
employed In the performance of the agreement and referrsd to in Title 15 (commencing with Section 3082)
of Part 4 of Division 2 of the Civil coda in the sure of """**'"**""""M*",'*a`"'"* ****""****,"*
***#"*" DOLLARS ($780,618.00 ), tor materials furnished ❑r labor th87so1 of any kind, or for
amounts due sender trte Unemployment Insurance Act with respect to work or labor, thet the surety will
pay the same in an amount not exceeding tho err,ourrt herelnebovw set forth, and WED in casFt suit' is 0rn+ight
WW1 this bond, will pay, in addition to the face sarnount thereof, costs and reasonable mcpensas and fees,
including reasonable attorney' s fee: , incurred by city in successfully Anforc`.ng this odliga5on, in br awarded
anal fiXed by the court, and to be taxed as coat:. and to be included in the judgment therein rendered.
It is haroby expressly stipulated and nomad that' this t541d shall inure trs the benefit of eery and all
persons, companies, and corporations entitled to rile claims under rtte.1$ (cars lrnencinp with section 34a )
of >:'art 4 of Division 3 of the Civil Code, so as to give a right of detlnn to them or their assigns In any suit
brought upon this bond,
Should the condition of this bond be fully performed, then this obligation shall become null and void,
Otherwise It Shall bt and tem®ln In MI force and cffoi t,
Servejii undyed Jai h rhous�ad S' I3 dxrrci & hie n EJ011 [x1**:
12202 - Labor and Metsria1 Band
Page 1 eta
0712412007 14:19 9098904069 JPATRICK RAGAN APLC
u i r c i c uu r a. uL II: D I NIA ! U '117 7107 La Olga_ City Clerk
PAGE 05/05
002l002
The vurety her y otiputates and agrees that no change, extension of lime, alteration or addition to
the terms of the agreement or to the WW1 to bo performed t ereunclur or the speollieatiafe accompanying
the same shell in any manner affect tts Cbiigakbbnn on this band, and It does hereby waive notice 0 any sSoch
change, extension of time, alteration Or addition to the terms of the agreement or to the wosit or to the
specifications,
In witness whereof, this in$trumi nt ha.. been duly faxeouted by the principal fmd surety above named,
on April: 13 2o0fi.
Rindlesb • h CQnstzuction Prai"it Sh , Plan
Frfnc'
(Seal)
Sig afar • of Prim prat
rielVS
Title of Signatory
BOND SAEEGtJMW rNSUR ANOE COMPANY
Surety -
(Seal)
sigloture of Surety
Caroline L, Brown Athstovy-in.Fact
'%#If: of signatoryy
2213 N. Green Vakloy Pkwy., Suite 101
Hende;son, NV 89014
Addra9s of Surety
702-263-9065
Phone* of Surely
Caroline L, Brawn
Cohtect Porscn For Surety
F2o1- Performance Bond
r ag12 or 2
Titf 4 4 a"
COUNCIL/RDA MEETING DATE: December 15, 2009
ITEM TITLE: Adoption of a Resolution to Extend the
Time for Completion of the Off -Site Improvements for
Tract Map No. 31852, Polo Estates, Rindlesbach
Construction, Inc.
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: _zg_
STUDY SESSION:
PUBLIC HEARING:
Adopt a resolution to extend the time for completion of the off -site improvements as
specified in the approved Subdivision Improvement Agreement (SIA) to December 31,
2010 for Tract Map No. 31852, Polo Estates, Rindlesbach Construction, Inc.
FISCAL IMPLICATIONS:
None
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Polo Estates (Tract Map No. 31852) is located on the northwest corner of Avenue 52
and Madison Street (Attachment 1).
On March 15, 2006, the City and Rindlesbach Construction, Inc. entered into an SIA
for Polo Estates. Section 6 of the SIA requires: "that the subdivision improvements
shall be complete within twelve months after the approval of the SIA. Failure by
Subdivider to begin or complete construction of the Improvements within the specified
time periods shall constitute cause for City, in its sole discretion and when it deems
necessary, to declare Subdivider in default of this SIA, to revise improvement security
requirements as necessary to ensure completion of the improvements, and/or to
149
require modifications in the standards or sequencing of the improvements in response
to changes in standards or conditions affecting or affected by the Improvements. "
On March 20, 2007, the City Council adopted a resolution granting a time extension
for the completion of the off -site improvements as specified in the approved SIA to
May 1, 2007. Staff sent letters to the developer on August 2, 2007 and June 24,
2008 requesting a status on their SIA and improvements. Staff then sent a Notice of
Default of the SIA on April 30, 2009. The developer responded to the letters on July
17, 2009 saying that there was a new owner of the project. The new owner (Gilger
Homes) has not yet signed an assignment and assumption agreement, so the bonds
are still in the name of the original developer.
In a letter from Rindlesbach Construction, Inc. (Attachment 2), the developer requests,
on behalf of the current owner of the project, Gilger Homes, a time extension for
completion of the off -site improvements. Gilger Homes has purchased the Polo
Estates project from Rindlesbach Construction, Inc.
In a letter dated July 8, 2009 from Gilger Homes (Attachment 3), Gilger Homes states
their intent to start construction of the off -site improvements in the first quarter of
2010 and be completed with the off -site improvements by the end of 2010. The off -
site improvements to be completed include relocating the existing telephone poles and
the widening of Avenue 52 and Madison Street with sidewalk, equestrian trail, and
perimeter landscaping. Staff has prepared the attached resolution which provides for
approval of the second time extension of the SIA to December 31, 2010.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
1. Adopt a Resolution of the City Council to extend the time for completion of the
off -site improvements as specified in the approved Subdivision Improvement
Agreement to December 31, 2010 for Tract Map No. 31852, Polo Estates; or
2. Do not adopt a Resolution of the City Council to extend the time for completion
of the off -site improvements time as specified in the approved Subdivision
Improvement Agreement to December 31, 2010 for Tract Map No. 31852, Polo
Estates; or
3. Provide staff with alternative direction.
150
Respectfully submitted,
T mothy R. J na n, P.E.
ublic Works Dir ctor/City Engineer
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1. Vicinity Map
2. Letter from Rindlesbach Construction, Inc.
3. Letter from Gilger Homes dated July 8, 2009
151
ATTACHMENT 1
t
Q
Z
w
W
TM 31852 POLO ESTATES
AVENUE 50
GP
SEC. 4
T. 6 S.
R.7E.
AVENUE 52
;INITY
NOT TO SCALE
CITY COUNCIL MEETING: December 15, 2009
W
AVE 51
�' � �65 ITEM TITLE: Adoption of a Resolution to Extend the Time for
./<1. r
� -- � Completion of the Off -Site Improvements for Tract Map No. 31852,
=`4' Polo Estates
�'40F'f1fi'
APPLICANT: Mr. Mark Rindlesbach, Rindlesbach Construction, Inc.
ATTACHMENT 2
Rindlesbach Constriction Profit Sharing Plan
2489 Easi Haven bane
Holladay, Utah 84117.
My 17, 2009 .
Amy Yu
Public Works Engineer
City. of La Quetta
La Quinta, California 92253
Re: Tract Map 31852, Polo Estates
Anticipated Construction Schedule
Dear Ms. Yu
As per the attached letter from Gilger Homes I am requesting an
extension for the SIA agreement to allow the current owner to
complete the improvements.
ATTACHMENT 3
GrILG M HOMES
BUILDING A B=TTFR WORLD
July 8, 2009
Amy Yu
Public Works Engineer
City of La QuInta .
La Quima, California 92M
Re: Tract Map 31852, Polo Estates
Anticipated Construction Schedule
Dear Ms. Yu
it has come to my attention that you are In need of an update regarding our
antidpated schedule to complete Tract Map 31852•
Without going Into what most of us already know about the recent past financial
difficulties we have all enjoyed, I can give you this.
It is our intent to restart construction of Off -Site and On -site improvements for this
Tract in the fe'St quarter of 2010 and to be completed with all by the and of the
fourth quarter of 2010.
we will be forwarding a detailed schedule and seeking meetings with officials of
City of La Quirrta as the actual start date approaches.
IGrhdest: Regards,
I�
IGrk Gilger
12608 S. t25 W., Suite C • Draper. Utah • 84020
On1ce:801.572000 • Fax:801.5726020 • www4V9erh0mes.c0m