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2006 12 05 CCe4 4 44tha City Council agendas are available on the City's web page @ www.la-quinta.org CITY COUNCIL AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting TUESDAY, DECEMBER 5, 2006 — 3:00 P.M. Beginning Resolution No. 2006-122 Ordinance No. 434 CALL TO ORDER Roll Call: Council Members: Henderson, Kirk, Osborne, Sniff, and Mayor Adolph PUBLIC COMMENT At this time, members of the public may address the City Council on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CLOSED SESSION - None RECONVENE AT 4:00 P.M. PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the City Council on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. GU City Council Agenda 1 December 5, 2006 CONFIRMATION OF AGENDA PRESENTATIONS - NONE BUSINESS SESSION 1. CONSIDERATION OF ADOPTION OF A RESOLUTION CERTIFYING THE OFFICIAL CANVASS OF ELECTION RETURNS FOR THE GENERAL MUNICIPAL ELECTION HELD NOVEMBER 7, 2006. A. RESOLUTION ACTION B. ADMINISTER OATH OF AFFIRMATION TO NEWLY ELECTED OFFICIALS WRITTEN COMMUNICATIONS 1. WRITTEN CORRESPONDENCE FROM DESERT SANDS UNIFIED SCHOOL DISTRICT, DATED NOVEMBER 13, 2006, REQUESTING A CONTRIBUTION TO THE PARTNERSHIP IN EDUCATION FUND APPROVAL OF MINUTES 1 . APPROVAL OF MINUTES OF NOVEMBER 15, 2006. 2. APPROVAL OF MINUTES OF NOVEMBER 21, 2006. CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. 1. APPROVAL OF DEMAND REGISTER DATED DECEMBER 5, 2006. 2. ADOPTION OF A RESOLUTION ACCEPTING A DONATION FROM NEW HORIZON MORTGAGE CONCEPTS. 3. ACCEPTANCE OF ON -SITE IMPROVEMENTS ASSOCIATED WITH PARCEL MAP 32683-3, WASHINGTON PARK RETAIL CENTER, WASHINGTON III, LTD. 4. APPROVAL OF CONTRACT CHANGE ORDER NOS. 9-15 FOR EISENHOWER DRIVE BRIDGE AND DRAINAGE IMPROVEMENTS, PROJECT NO. 2001-06. r U � City Council Agenda 2 December 5, 2006 5. APPROVAL OF AGENCY -FEDERAL MASTER AGREEMENT NUMBER 08-5433R AND PROGRAM SUPPLEMENTAL AGREEMENT NUMBER 006-N FOR FEDERAL FUNDING 'FORWARD THE AVENUE 54 PAVEMENT REHABILITATION IMPROVEMENTS, PROJECT NO. 2005-11 . 6. ACCEPTANCE OF ON -SITE IMPROVEMENTS ASSOCIATED WITH TRACT MAP 29457-1, RANCHO LA QUINTA, T.D. DESERT DEVELOPMENT. 7. ACCEPTANCE OF ON -SITE IMPROVEMENTS ASSOCIATED WITH TRACT MAP 30487, SANTA ROSA TRAILS, SANTA ROSA TRAILS, LLC. 8. ACCEPTANCE OF OFF -SITE IMPROVEMENTS ASSOCIATED WITH TRACT MAP 30487, SANTA ROSA TRAILS, SANTA ROSA TRAILS, LLC. 9. APPROVAL OF ANNUAL DISTRICT INFORMATION SHEETS FOR THE CITY OF LA QUINTA ASSESSMENT DISTRICT NOS. 92-1 AND 97-,1 FOR FISCAL YEAR END JUNE 30, 2006. 10. APPROVAL OF ANNUAL CONTINUING DISCLOSURE FOR THE CITY OF LA QUINTA 2000-1 ASSESSMENT DISTRICT FOR FISCAL YEAR END JUNE 30, 2006. 11. APPROVAL OF THE DECLARATION OF SURPLUS PROPERTY. 12. ADOPTION OF A RESOLUTION TO EXTEND THE TIME FOR COMPLETION OF THE OFF -SITE IMPROVEMENTS FOR TRACT MAP 30357, MOUNTAIN VIEW COUNTRY CLUB. 13. ADOPTION OF A RESOLUTION TO EXTEND THE TIME FOR COMPLETION OF THE ON -SITE IMPROVEMENTS FOR TRACT MAP 30357, MOUNTAIN VIEW COUNTRY CLUB. 14. ACCEPTANCE OF ON -SITE IMPROVEMENTS ASSOCIATED WITH PARCEL MAP NOS. 30903-1, 30903-2, AND 30903-3, WASHINGTON PARK RETAIL CENTER, WASHINGTON III, LTD. 15. ACCEPTANCE OF OFF -SITE IMPROVEMENTS ASSOCIATED WITH PARCEL MAP 30903-1, 30903-2, AND 30903-3, WASHINGTON PARK RETAIL CENTER, WASHINGTON III, LTD. 16. APPROVAL OF PROFESSIONAL SERVICES AGREEMENTS WITH BUREAU VERITAS, ENGINEERING RESOURCES OF SOUTHERN CALIFORNIA, INC. (ERSC), HALL & FOREMAN, INC., WILLDAN, NRO ENGINEERING, RKA CONSULTING GROUP AND RASA FOR ON -CALL ENGINEERING PLAN AND/OR MAP CHECK SERVICES. v City Council Agenda 3 December 5, 2006 17. APPROVAL OF NEW JOB DESCRIPTIONS: ASSISTANT CITY MANAGER. 18. APPROVAL OF A SUPPLEMENTAL AGREEMENT WITH RIVERSIDE COUNTY FOR THE USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR RECONSTRUCTION OF THE VILLAGE ROUNDABOUT, AND PUBLIC SERVICE FUNDS FOR THE BOYS AND GIRLS CLUB -LA QUINTA UNIT, FEE WAIVER/REDUCTION PROGRAM. 19. APPROVAL OF A HOUSING RELOCATION PLAN FOR 46-150 DUNE PALMS ROAD AND 46-130 DUNE PALMS ROAD. 20. ACCEPTANCE OF A GRANT OF EASEMENT FOR EMERGENCY INGRESS AND EGRESS AND PUBLIC UTILITY PURPOSES FROM RANCHO SANTANA HOMEOWNERS ASSOCIATION, INC., ASSOCIATED WITH TRACT MAP 31202-1 . BUSINESS SESSION 2. CONSIDERATION OF CITY COUNCIL REORGANIZATION. A. MINUTE ACTION 3. CONSIDERATION OF CITY COUNCIL STANDING COMMITTEE APPOINTMENTS. A. MINUTE ACTION 4. CONSIDERATION OF OPTIONS FOR THE HIGHWAY 1 1 1 /WASHINGTON STREET ART PIECE. A. MINUTE ACTION 5. CONSIDERATION OF SECOND READING OF ORDINANCE, ADOPTING PRE - ZONING DESIGNATIONS FOR CERTAIN LANDS PROPOSED FOR ANNEXATION, AND CONSISTING OF 11.62 ACRES LOCATED AT THE SOUTHEAST CORNER OF HIDDEN RIVER ROAD AND WASHINGTON STREET AND IDENTIFIED AS ASSESSOR'S PARCEL NUMBERS 609-040- 005, 609-040-007, AND 609-040-023. A. ADOPT ORDINANCE NO. 431 ON SECOND READING City Council Agenda 4 December 5, 2006 6. CONSIDERATION OF SECOND READING OF ORDINANCE, AMENDING CHAPTER 9, SECTION 9.140.080 - SUPPLEMENTAL REGULATIONS OF THE LA QUINTA MUNICIPAL CODE REGULATING THE DEVELOPMENT AND USAGE OF FUTURE CONDOMINIUM HOTEL UNITS IN TOURIST COMMERCIAL DISTRICTS AND LIMITING THE CONVERSION OF EXISTING HOTELS TO CONDOMINIUM HOTELS. A. ADOPT ORDINANCE NO. 432 ON SECOND READING 7. CONSIDERATION OF SECOND READING OF ORDINANCE, APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND LDD SILVERROCK, LLC. A. ADOPT ORDINANCE NO. 433 ON SECOND READING STUDY SESSION - NONE REPORTS AND INFORMATIONAL ITEMS 1. ANIMAL CAMPUS COMMISSION (HENDERSON) 2. CITY COUNCIL AD HOC COMMITTEE REPORTS 3. CVAG COMMITTEE REPORTS 4. CHAMBER OF COMMERCE WORKSHOP/INFORMATION EXCHANGE COMMITTEE (KIRK) 5. C.V. CONSERVATION COMMISSION (SNIFF) 6. C.V. MOSQUITO AND VECTOR CONTROL DISTRICT MINUTES OF MAY 9, JUNE 13, JULY 11, AUGUST 8, SEPTEMBER 12, AND OCTOBER 10, 2006 (RON PERKINS) 7. C.V. MOUNTAINS CONSERVANCY (SNIFF) 8. C.V.W.D. JOINT WATER POLICY COMMITTEE (ADOLPH) 9. JACQUELINE COCHRAN REGIONAL AIRPORT AUTHORITY (OSBORNE) 10. LEAGUE OF CALIFORNIA CITIES (HENDERSON) 11. PALM SPRINGS DESERT RESORTS CONVENTION & VISITORS AUTHORITY (HENDERSON) 12. PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION (NANCY DORIA) 13. RIVERSIDE COUNTY CHILD SAFETY COMMISSION (HENDERSON) 14. RIVERSIDE COUNTY DESERT LIBRARY ZONE ADVISORY BOARD (HENDERSON) 15. RIVERSIDE COUNTY TRANSPORTATION COMMISSION (HENDERSON) 16. SANTA ROSA/SAN JACINTO NATIONAL MONUMENT ADVISORY COMMITTEE (HENDERSON) 17. SUNLINE TRANSIT AGENCY/SUNLINE SERVICES GROUP (ADOLPH) l City Council Agenda 5 December 5, 2006 18. SILVERROCK RESORT SUBCOMMITTEE 19. SPHERE OF INFLUENCE SUBCOMMITTEE DEPARTMENT REPORTS 1. CITY MANAGER - NONE 2. CITY ATTORNEY - NONE 3. CITY CLERK A. REPORT ON UPCOMING EVENTS B. REPORT ON HISTORIC PRESERVATION COMMISSION VACANCY 4. BUILDING & SAFETY DEPARTMENT MONTHLY REPORT - NONE 5. COMMUNITY DEVELOPMENT DEPARTMENT MONTHLY REPORT - NONE 6. COMMUNITY SERVICES DEPARTMENT MONTHLY REPORT - NONE 7. FINANCE DEPARTMENT REPORT - NONE 8. PUBLIC WORKS DEPARTMENT MONTHLY REPORT - NONE 9. POLICE DEPARTMENT MONTHLY REPORT - NONE 10. FIRE DEPARTMENT QUARTERLY REPORT- NONE MAYOR'S AND COUNCIL MEMBERS' ITEMS - NONE RECESS TO REDEVELOPMENT AGENCY MEETING RECESS TO 7:00 P.M. 7:00 P.M. PUBLIC COMMENT At this time members of the public may address the City Council on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. PRESENTATIONS - NONE PUBLIC HEARINGS For all Public Hearings on the agenda, a completed "request to speak" form must be filed with the City Clerk prior to consideration of that item. City Council Agenda 6 December 5, 2006 A person may submit written comments to City Council before a public hearing or appear in support or opposition to the approval of a project. If you challenge a project in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City Clerk at, or prior to the public hearing. 1. PUBLIC HEARING ON THE ADOPTION OF A RESOLUTION TO VACATE 3,117± FEET OF AVENUE 53 WEST OF MONROE STREET. A. RESOLUTION ACTION 2. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION OF THE CITY COUNCIL INCREASING THE FEE FOR COVERAGE UNDER THE COACHELLA VALLEY FRINGE -TOED LIZARD HABITAT CONSERVATION PLAN TO $2,371 PER DISTURBED ACRE. A. RESOLUTION ACTION 3. CONTINUED JOINT PUBLIC HEARING TO CONSIDER A PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND LDD SILVERROCK, LLC FOR THE SALE AND DEVELOPMENT OF 52 ACRES OF AGENCY PROPERTY LOCATED SOUTHWEST OF THE INTERSECTION OF JEFFERSON STREET AND AVENUE 52 (SILVERROCK RESORT) IN THE LA QUINTA PROJECT AREA NO. 1. A. RESOLUTION ACTION ADJOURNMENT Adjourn to a regularly scheduled December 19, 2006, commencing session at 4:00 p.m. in the City La Quinta, CA 92253. meeting of the City Council with closed session at 3:00 Council Chambers, 78-495 to be held on p.m. and open Calle Tampico, City Council Agenda 7 December 5, 2006 DECLARATION OF POSTING I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta City Council meeting of December 5, 2006, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on December 1, 2006. DATED: December 1, 2006 VERONICA J City of La Qk C, City Clerk Public Notices The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's Office at 777-7103, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the City Council, arrangement should be made in advance by contacting the City Clerk's Office at 777- 7103. A one (1) week notice is required. If background material is to be presented to the City Council during a City Council meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the City Clerk for distribution. It is requested that this take place prior to the beginning of the meeting. City Council Agenda 8 December 5, 2006 WRITTEN CORRESPONDENCE ITEM- 0 0,jVIIE0 S Cy0 rQy s r N BERMUDA DUNES RANCHO MIRAGE • -- F INDIAN WELLS 0 yS IA OUINTAl 'AIM DESERT ,a'y - General Patton 'gyp INDIO yo Desert Training Center November 13, 2006 City of La Quinta Mayor Don Adolph 78495 Calle Tampico La Quinta, California Dear Mayor Adolph, It has been two (2) years since our last grant request. It is now time to revisit and educate our local high school students at La Quinta High. Our visit is scheduled for November 27-28,2006. The Desert Sands Unified School District in partnership with the First Composite Group, Association has created a dynamic and memorable way to teach local students about the history of World War 11. This program includes both pre and post materials including lesson plans and a DVD history of the war. The site visit portion of the program allows students the opportunity to see memorabilia first hand and to participate in interactive discussions of the war and its impact on America with historians specializing in this very important subject. This program both educates and inspires students in a way that is not possible in the classroom. Please help us by sponsoring your local schools and making a contribution of at least $2,500.00 to the Partnership for Education Fund. Your contribution should be made payable to the First Composite Group a 501-C-3 non-profit education association. IRS Tax # 22-3136778. Contributions of $2,500.00 or more will include your city logo on the signage for the school and the distribution of any promotional materials that you would like given to the students on the day the mobile classroom visits the school. Thank you, for helping make your community a better place for children and education. Regards, §11-;I *W14-L Dr. Doris Wilson Superintendent Col. Paul Kiener Chief of Staff Desert Sands Unified School District First Composite Group, Assoc. 78-365 Hwy 11;1; #299, La Quinta, CA 92253 - Phone: 760.954.4934 Fax: 760.771.305,4 oGtaERh� TT',{ 14! 1 r i T h �3 T I .�,y��K b 1 K i t= ' It °•; L�'jQuinta, CA 92253, e 760.954.4934 COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Demand Register Dated Dec. 05, 2006 RECOMMENDATION: Approve Demand Register Dated December 5, 2006 BACKGROUND: Prepaid Warrants: 70964 - 709851 45,269.19 70986 - 70986) 128.00 Voids} (212.00) Wire Transfers} 250,477.59 P/R 33538 - 33561 } 173,369.79 P/R Tax Transfers} 46,128.92 Payable Warrants: 70987 - 711041 499,485.03 $1,014,646.52 FISCAL IMPLICATIONS: Demand of Cash -City $779,336.84 Demand of Cash -RDA $235,309.68 (uxA&I_ John M. Falconer, Finance Director AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: CITY OF LA QUINTA BANK TRANSACTIONS 11/16/06 - 11/29/06 11/20/06 WIRE TRANSFER - PERS 11/20/06 WIRE TRANSFER - ICMA 11/24/06 WIRE TRANSFER - LANDMARK $44,450.86 $6,815.89 $199,210.84 TOTAL WIRE TRANSFERS OUT $250,477.59 u\M I I m N O O Q O O N O V) OQ \ I I I Y J I V) M O O V) O O P O r I u a 1 n •o o Q In o ao o 0 1 w 0 1 N A u\ V) N N O m O I S O I fMll W I I £ I 1 on 1 I O Z I I N I I ¢H I I w C I 1 6 O I I Z 1' IZ - I I -I 1 O Q 1 F I O I Z £W I 1 QN I OmV)V)OMQV10 vIM NAAAOQm OMANN 00 00 NNQ 00 00 MVI 00 V)V) O O I \ O 00 00 . . . 00 00 PP 00 U U I W U l I . . . . . .V. . . . .MONmMQV) . . . . 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Wit Hdd u.i LLv.idd id Void d.id Q� H Q O 00 .0 .0 no 1-00 V O .0 o 0 0 0 0 0 0 0 0 0 0 3 .00 Q O u O O O O o O O o O O O O W x 0 .00 W O W O W O J O o O ¢ 0 0 0 0 0 0 0 0 0 0 0 0 W d W W d W W W 6' U W > > > Q Z J H d 3 W z O Q w 6' d• W N H a a 000000000000 M m I I I I 1 1 1 1 1 1 1 1 r n n P n N m d M W N 00 N�4 P m m 0 m 0 NO, A O no NO P O N m 0 0 0 0 0 0 0 0 0 0 0 0 0 0, O OM ONA Or- N•-1 OP OON NP MAAnAnrAArAnA Om O ow 0�00 Ott 00 oww 00 Odd�fddd.t d �t v`t `* 0O O ON O,- 0, O> 0, o�00 Oddest dot �t dot �tvvv ON U I p I O1 OP W I O Or I � H 1 N O I I I N N O o I L I ¢ I M I H I Z v I w 4 I I w x I 1 I I 1 I 1 1 1 I I I 1 I I I O M M A O r O O O P I Y I O rr MOON r O O I U 1 I W z I N M POP m O O P I S O I v M m N m P M O O �O I £ 1 I ¢ I N N N K I w 1 I � I I pw1 I \H I I Y Q I I V p I I w I I 2 1 I V 1 I I I Y I I Z I 1 m I 6 I I � I I z1 1 K 1 •O 1 01 oz1 LLI J I I 6 1 W.0 1 U I£ w Z l Q Z I .I zu 1 ¢ 0 1 F I z0 I J Z I O> I PIr I O I M J I a I M O 1 W I £ I > I O Q I I J I I W I £� 1 OU I Q O 1 Z. 1 O 1 001 >zl o l- 1 pI �lZz I du1> 1 J 0 z O z > cN N N N N N N N V NNM� O O O O M 0 0 0 0 0 00000 0 0 o o o O O O O O COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Adoption of a Resolution Accepting a Donation from New Horizon Mortgage Concepts to the La Quinta Senior Center RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the City Council accepting a donation from New Horizon Mortgage Concepts to the La Quinta Senior Center. FISCAL IMPLICATIONS: New Horizon Mortgage Concepts is donating a 27-inch flat screen television to the La Quinta Senior Center to be utilized by the senior residents in the community. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: New Horizon Mortgage Concepts has a valued interest in giving back to the community. New Horizon Mortgage Concepts wanted to contribute something that would be utilized by the community of senior residents in La Quinta. The donation to the La Quinta Senior Center will be put on a roaming cart that will be utilized for various classes, meetings and seminars. U FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Adopt a Resolution of the City Council accepting a donation from New Horizon Mortgage Concepts to the La Quinta Senior Center; or 2. Do not adopt a Resolution of the City Council accepting a donation from New Horizon Mortgage Concepts to the La Quinta Senior Center; or 3. Provide staff with alternative direction. Respectfully submitted, 4Fdieo , Community Services Director Approved for submission by: Thomas P. Genovese, City Manager RESOLUTION NO. 2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ACCEPTING DONATIONS FROM NEW HORIZON MORTGAGE CONCEPTS TO THE LA QUINTA SENIOR CENTER WHEREAS, on December 5, 2006, New Horizon Mortgage Concepts generously offered a donation of a 27-inch flat screen television to be given to the La Quinta Senior Center as a contribution to the community of senior residents in La Quinta; and WHEREAS, The gift was offered for donation to the City of La Quinta and was not given to or limited to the use of any particular employee or official; and WHEREAS, it is in the best interest of the City of La Quinta to accept the donation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: The City of La Quinta hereby accepts the donation a 27-inch flat screen television from New Horizon Mortgage Concepts as a contribution to the community of senior residents in La Quinta who utilize the Senior Center. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 5th day of December, 2006, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California Resolution No. 2006- New Horizon Mortgage Concepts Adopted: December 5, 2006 Page 2 ATTEST: Veronica J. Montecino, CIVIC, City Clerk City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California .a U11 COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Acceptance of On -site Improvements Associated with Parcel Map No. 32683-3, Washington Park Retail Center, Washington III, LTD RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: a STUDY SESSION: PUBLIC HEARING: Accept on -site improvements associated with Parcel Map No. 32683-3, Washington Park Retail Center, Washington III, LTD and authorize staff to release performance securities upon receipt of warranty securities. FISCAL IMPLICATIONS: None. No public improvements will be accepted with this action. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Parcel Map No. 32683-3, Washington Park Retail Center is located on the east side of Washington Street between Simon Drive and Avenue 47 (please see Attachment 1). All obligations of the Subdivision Improvement Agreement and the Conditions of Approval have been satisfied. Attachment 2 indicates the amount of warranty security. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: Accept the on -site improvements associated with Parcel Map No. 32683- 3, Washington Park Retail Center, Washington III, LTD and authorize staff to release performance securities upon receipt of warranty securities; or 2. Do not accept the on -site improvements associated with Parcel Map No. 32683-3, Washington Park Retail Center, Washington III, LTD and do not authorize staff to release performance securities upon receipt of warranty securities; or 3. Provide staff with alternative direction. Respectfully submitted, j thy R. n sson Ec Works recto City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Warranty Security ATTACHMENT - I PARCEL MAP No. 32683-3 WASHINGTON PARK RETAIL CENTER HW'• III PROJECT SITE - 0 z w N 0 W a w z C5 O riiI AVENUE 48 AVENUE 50 0 En o: tt D VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: December 5, 2006 TO INDIO ITEM TITLE: Acceptance of On -site Improvements Associated with Parcel Map No. 32683-3, Washington Park Retail Center APPLICANT: Washington III, LTD " r Vv ATTACHMENT - 2 PARCEL MAP No. 32683-3 WASHINGTON PARK RETAIL CENTER ON -SITE IMPROVEMENTS ON -SITE IMPROVEMENTS Performance Security' Improvement Description Labor & Materials; Current Amount Proposed Reduction WARRANTY AMOUNT Landscape $196,500 $196,500 900/0 $19,650 Monumentation $0 $9,000 100% $0 No Plans Contingency $54,040 $56,510 100% $0 Professional Fees, Construction 10% $21,620 $22,610 100% $0 Professional Fees, Design 10% 1 $21,620 $22,610 1 100% $0 Standard Contingency 10% 1 $19,650 $20,550 1 100% $0 Totalsl $313,430 $327,780 1 $19,650 IRANr CITY COUNCIL MEETING: December 5, 2006 RI ITEM TITLE: Acceptance of On -site Improvements Associated with Parcel Map No. 32683-3, Washington Park Retail Center APPLICANT: Washington III, LTD U 9' COUNCIL/RDA MEETING DATE: ITEM TITLE: Approval of Contract Change Order Nos. 9-15 for Eisenhower Drive Bridge and Drainage Improvements, Project No. 2001-06; RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Approve Contract Change Order Nos. 9-15 (Attachment 1) to reimburse contractor for extra work caused by construction impacts not addressed on the project plans and specifications. FISCAL IMPLICATIONS: The following is a budget summary: Budget Total Amount spent through December 5, 2006 Amount Available Pending Contract Change Order Nos. 9-15 Remaining Fiscal Commitment $ 4,154,475 $ 4,064,667 $ 89,808 $ 198,648 $ (108,840) As can be seen, an additional appropriation in the amount of $108,840 needs to be made. The Agency will consider appropriation of $108,840 from RDA No. 1 to fund Contract Change Order Nos. 9-15 under a separate item. CHARTER CITY IMPLICATIONS: This project is partially funded with RDA Project Area No. 1 funds. As a result, the project was bid utilizing prevailing wage requirements. Therefore, there are no charter city implications. BACKGROUND AND OVERVIEW: On November 16, 2004, the City Council adopted a Resolution certifying a Mitigated Negative Declaration of environmental impact for Environmental Assessment 2004- 519; and approved the PS&E of probable construction costs, and authorized staff to advertise the Eisenhower Drive Bridge and Drainage Improvements, Project No. 2001- 06 for bid. On January 5, 2005, seven sealed bids were received for the construction of this project. Granite Construction submitted the lowest responsive bid in the amount of $2,565,565. On January 18, 2005 City Council awarded a contract for $2,565,565 to Granite Construction Company to construct the Eisenhower Drive Bridge and Drainage Improvements, Project No. 2001-06. On February 24, 2005 a Notice to Proceed was issued with a 310 consecutive calendar day contract completion time starting February 28, 2005, and ending on January 3, 2006. Contract Change Orders 9-15 reimburses the contractor for extra work caused by construction impacts not addressed on the project plans and specifications. Such work includes the construction of a retaining block wall and foundations, additional cold milling and asphalt placement; repair of a sinkhole; additional striping, construction of a slough wall and wall extensions for retaining and restoration of landscaping adjacent to the project which was impacted by the construction. Contract Change Orders 9-15 will extend the project for a total of 99 consecutive calendar days. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve Contract Change Order Nos. 9-15 (Attachment 1) to reimburse contractor for extra work caused by construction impacts not addressed on the project plans and specifications; or 2. Do not Approve Contract Change Order Nos. 9-15 (Attachment 1) to reimburse contractor for extra work caused by construction impacts not addressed on the project plans and specifications; or 3. Provide staff with alternative direction. Respectfully submitted, -zWmothy R. ona, n, P.E. Public Works Dir ctor/City Engineer Approved for submission by: l Thomas P. Genovese, City Manager Attachment: 1. Contract Change Order Nos. 9-15 try Attachment 1 Sheet 1 of 1 RACT: Eisenhower Drive Bridge and Drainage Improvements Project No. 2001-06 RACTOR: Granite Construction Company 38000 Monroe Street Indio, CA 92203-9500 CONTRACT CHANGE ORDER NO. 9 it to the terms of the original Contract Agreement, you are hereby directed to make the herein described charges or do the following ed work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, conditions, and special provisions of the original Contract. RIPTION OF CHANGE ORDER: :ontract Change Order compensates the contractor to construct foundations and retaining block wall along the dy right-of-way in back of the proposed concrete sidewalk. Included in the work is the removal of existing trees, relocation of irrigation lines, electrical service of up -lighting for landscape features and painting of ig block screen wall in back of proposed retaining wall. There were no provisions within the contract plans or ications to address the necessity of retaining the newly created excavated embankment. The total cost of ructing foundations, retaining walls and related work amounted to: $100,791.85 ison of this contract change order the time of completion Is changed. Increased 61 Calendar Days. The new completion s 611 SM. ....«�.....«��.....+.....s Witted By: Date: roved By: Date: he undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal wed, that we will provide all equipment, furnish all materials, perform all labor, exceptas maybe noted above, andpedomt all service ssary to complete the above spewed work, and hereby accept as full payment the amount shown above, which includes all dined at id overhead expenses for any delays associated to the work described in this contract change order. epted Title: ( iV67 zO,'MA/ r .- �.. VJ tOJECTSt2_CONSTRUCTION12001-06 Eisenhower BridgetConstructiontProgress Payments & CCUMCCO 9 .doc 4 44umraj F r1O RACT: Eisenhower Drive Bridge and Drainage Improvements Project No. 2001-06 'RACTOR: Granite Construction Company 38000 Monroe Street Indio, CA 92203-9500 CONTRACT CHANGE ORDER NO. 10 Sheet 1 of 1 rd to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following red work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, 1 conditions, and special provisions of the original Contract. :RIPTION OF CHANGE ORDER: contract Change Order compensates the contractor for additional pavement cold milling and placement of irized pavement near the joint of the bridge and at the intersection of Avenue 50 to match existing A.C. nent grades. This work did not become apparent until after much of the road improvements were constructed, total costs for this work amounted to: $58,932.03 F— Previous Contract Amount Through Change Order No. 91 $2,795,487.58 rson of this contract change order the time of completion is changed. Increased 12 Calendar Days. The new completion dab D106. initted By: Date: roved By: Date: the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal wed, that we will provide all equipment, furnish all materials, perform all labor, except as maybe notedabove, andperform all servta ssary to complete the above speairred work, and hereby accept as full payment the amountshown above, which includes all direct ar rct overhead expenses for any delays associated to the work described in this contract change order. opted By i:/�/I lfs��z Title: (tractor: ROJECTS\2CONSTRUCTIONt2001-06 Eisenhower Bridge\Construc iontProgress Payments & CCO'stCCO 10.doc 4a�w Flo RACT: Eisenhower Drive Bridge and Drainage Improvements Project No. 2001-06 RACTOR: Granite Construction Company 38000 Monroe Street Indio, CA 92203-9600 CONTRACT CHANGE ORDER NO. 11 Sheet 1 of 1 nt to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following ad work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, I conditions, and special provisions of the original Contract. :RIPTION OF CHANGE ORDER: :ontract Change Order compensates the contractor to explore and repair a sinkhole fronting an existing storm catch basin near the intersection of Eisenhower Drive at Avenue 50. The costs associated with the repairs of iadway amounted to:. $2,693.56 Previous Contract Amount Through Change Order No. 10 1 $2,854,420.03 Add Chance Order No. 11 2 5$ . 93.56 ison of this contract change order the time of completion is changed. Increased 21 Calendar Days. The new completion dab 1106. miffed By: Date: roved By: Date: the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, N this proposal rved, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, andperform all servia ssary to complete the above specified work, and hereby accept as full payment the amountshown above, which includes alldirecdai ;ct overhead expenses for any delays associated to the work described in this contract change order. .spied ltractor: ROJECTS�2 CONSTRUCTION\2001-06 Eisenhower Bridge\ConstructionTrogress Payments & CCO's\CCO 11.doc j o� RACT: Eisenhower Drive Bridge and Drainage Improvements Project No. 2001-06 'RACTOR: Granite Construction Company 38000 Monroe Street Indio, CA 92203-9500 CONTRACT CHANGE ORDER NO. 12 Sheet 1 of 1 int to the terms of the original Contract Agreement, you are .hereby directed to make the herein described changes or do the following red work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, it conditions, and special provisions of the original Contract. =PTION OF CHANGE ORDER: Contract Change Order compensates the contractor for additional roadway lane striping necessary tc alize traffic from the existing improvement through the newly constructed improvements. The costs for the ad striping amounted to: $1,806.26 I Previous Contract Amount Through Change Order No. 11 I $2,857,013.59 Contract ism of this contract change order the time of completion Is changed. Increased 3 Calendar Days. The new completion dat 4M. mitted By: Date: roved By: Date: the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal Dved, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, and perform all servio ssary to complete the above specified work, and hereby accept as full payment the emountshown above, which includes all direct ai .ct overhead expenses for any delays associated to the work described in this contract change onier. :opted ltractor: ROJECTSt2 CONSTRUCTION12001-06 Eisenhower BridgetConstructionv'rogress Payments & CCO'stCCO 12.doc 4 40amraj FT4�9 RACT: Eisenhower Drive Bridge and Drainage Improvements Project No. 2001-06 RACTOR: Granite Construction Company 38000 Monroe Street Indio, CA 92203-9500 CONTRACT CHANGE ORDER NO. 13 Sheet 1 of 1 utt to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following ied work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, it conditions, and special provisions of the original Contract. «....**ak :RIPTION OF CHANGE ORDER: :ontract Change Order compensates the contractor to construct a poured -in -place concrete slough wall atom astedy right-of-way behind the sidewalk on Eisenhower Drive. The need for the slough wall was not identifiec after the road improvements were constructed. The costs for this work amounted to: $12,282.21 &son of this contract change order the time of completion is changed. Increased 2 Calendar Days. The new completion dal 6106. ****a a k k a k a * mitted By: Date: iroved By: Date- ...*:.*6Ma.�0MMM**.************ the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal oved, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, and perform all servic issary to complete the above specified work, and hereby accept as full payment the amount shown above, which includes all direct a act overhead expenses for any delays associated to the work described in this contract change order. :epted By: 1Za 1 Title:zn2J/�%f�/�iF ntractor: 'ROJECTM—CONSTRUCTIOM2001-06 Eisenhower BridgetConstructionlProgress Payments & CCUMCC013.doc DQ�o • ��� F 11 V 'RACT: Eisenhower Drive Bridge and Drainage Improvements Project No. 2001-06 'RACTOR: Granite Construction Company 38000 Monroe Street Indio, CA 92203-9600 CONTRACT CHANGE ORDER NO. 14 Sheet 1 of 1 nt to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following ied work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, I conditions, and special provisions of the original Contract. :RIPTION OF CHANGE ORDER: . Contract Change Order compensates the contractor to construct a wall extension on the south end 01 ning Wall No. 2 adjacent to the bridge near the Silver Hawk Development. The plans did not make adequate Dons to retain the backfill at this location. The costs associated with this work amounted to: $6,242.81 rson of this contract change order the time of completion Is unchanged. The contract completion date remains 7126M. Wilted By: Date: - roved By: Date: he undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal wed, that we will provide all equipment, furnish all materials, perform all labor, except as may be noted above, and perform all servo ssary to complete the above specified work, and hereby accept as full payment the emountshown above, which includes all direct al ict overhead expenses for any delays associated to the work described in this contract change order. 1-61 20JECTS\2CONSTRUCTION72001-06 Eisenhower Bridge\ConstructionTrogress Payments & CCO'M=14.doc P I;9� RACT: Eisenhower Drive Bridge and Drainage Improvements Project No. 2001-06 'RACTOR: Granite Construction Company 38000 Monroe Street Indio, CA 92203-9500 CONTRACT CHANGE ORDER NO. 15 Sheet 1 of 1 nt to the terms of the original Contract Agreement, you are hereby directed to make the herein described changes or do the following ed work not included in the plans and specifications for this Contract. Unless otherwise stated all work shall conform to the terms, I conditions, and special provisions of the original Contract. :RIPTION OF CHANGE ORDER: ontract Change Order compensates the contractor to install Myoporum ground cover on the westerly side of Eisenhower Detween the bridge and Avenue 50. The cost of this work amounts to: $12,276.00 :ontract Change Order compensates the contractor to restoring landscaping damaged by the widening of Eisenhower which was not addressed in the project plans and specifications. The cost of this work amounts to: b 8,463.00 :ontract Change Order allows for the adjustment of the actual Final Quantities installed versus the Bid Amount Quantities. Dst of this work amounts to: b 4,025.15 rson of this contract change order the time of completion is unchanged. The contract completion date remains 7126106. nitted By: Date: -oved By: —Date: he undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal ved, that we will provide all equipment, furnish all materials, perform all labor, except as may be rioted above, andperfonn all servbE rsary to complete the above specified work, and hereby accept as full payment the amount shown above, which includes all directar of overhead expenses for any delays associated to the work described in this contract change order. Dpted By: Title: tractor: Date: i� OJECTSIZCONSTRUCTIONN2001-05 Eisenhower Bridge\Construction\Progress Payments & CCO's\CCO 15.doc COUNCIL/RDA MEETING DATE: December 5, 2006 AGENDA CATEGORY: ITEM TITLE: Approval of Agency -Federal Master Agreement Number 08-5433R and Program Supplemental Agreement Number 006-N for Federal Funding Toward the Avenue 54 Pavement Rehabilitation Improvements, Project No. 2005-11 RECOMMENDATION: BUSINESS SESSION: CONSENT CALENDAR: S STUDY SESSION: PUBLIC HEARING: Authorize the City Manager to execute Agency -Federal Master Agreement 08- 5433R (Attachment 1) and Program Supplemental Agreement 006-N (Attachment 2) providing Federal funding toward the construction of the Avenue 54 Pavement Rehabilitation Improvements, Project Number 2005-11. FISCAL IMPLICATIONS: The following is the project's approved funding and funding sources: State Gas Funds: Surface Transportation Program (STP) Total Funding: The following is the approved project budget: Construction: Design: Professional (Fed Docs/Env Doc) Insp/Test/Survey: Administration: Contingency: Total: $469,015 $228,000 $697,015 $543,650 $25,000 10,000 $43,000 $12,000 $63,365 $697,015 CHARTER CITY IMPLICATIONS: None. This project is partially funded with federal monies. Therefore, the project was advertised with a prevailing wage requirement included in the contract specifications. BACKGROUND AND OVERVIEW: The proposed improvements include rehabilitating the pavement within the two existing east bound travel lanes on Avenue 54, from Jefferson Street to Madison Street. The existing pavement is 30 feet wide and 5,280 feet long. In April 2005, the Riverside County Transportation Commission (RCTC) approved the Avenue 54 Pavement Rehabilitation Improvements for STP funding in the amount of $228,523. On May 17, 2005, the City Council adopted a Resolution approving the Fiscal Year 2005/2006 through 2009/2010 Capital Improvement Program (CIP). The Avenue 54 Pavement Rehabilitation Improvement is included within the adopted CIP and scheduled for funding within the Fiscal Year 2006/2007. On September 15, 2006, the City was notified by Caltrans that FHWA approved the City's funding obligation request and authorized the City to proceed to construction. On November 7, 2006, the City Council appropriated $372,134 from unreserved State Gas Tax funds and approved a Contract with the Hazard Construction Company, in the amount of $543,650 to construct the Avenue 54 Pavement Rehabilitation Improvements, Project Number 2005-11. The attached City of La Quinta/Agency Master Agreement 08-5433R provides the overall parameters for any Federal funding received from the California Department of Transportation. The attached Supplement Agreement 006-N provides for the Federal funding specifically assigned to this project. In addition to the City's execution of the original agreement, the City Clerk will be required to provide a certified "Minute Order" that clearly identifies the project and the official authorized to execute the agreement. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: U�� Authorize the City Manager to execute Agency -Federal Master Agreement 08-5433R and Program Supplemental Agreement 006-N providing Federal funding toward the construction of the Avenue 54 Pavement Rehabilitation Improvements, Project Number 2005-11; or 2. Do not authorize the City Manager to execute Agency -Federal Master Agreement 08-5433R and Program Supplemental Agreement 006-N providing Federal funding toward the construction of the Avenue 54 Pavement Rehabilitation Improvements, Project Number 2005-11; or 3. Provide staff with alternative direction. Respectfully submitted, Jrmothy R. ona n, P.E. Public Wo s Dir for/City Engineer Approved for submission by: r; ye'y�� z�" Thomas P. Genovese, City Manager Attachment: 1 . Agency/Federal Master Agreement No. 08-5433R 2. Program Supplemental Agreement No. 006-N MASTER AGREEMENT ADMINISTERING AGENCY -STATE AGREEMENT FOR FEDERAL -AID PROJECTS Attachme 08 City of La Quinta District Administering Agency Agreement No. 08-5433R This AGREEMENT, is entered into effective this day of 2006, by between the City of La Quinta, hereinafter referred to as "ADMINISTERING AGENCY," and State of California, acting by and through its Department of Transportation (Caltrans), hereina referred to as "STATE, and together referred to as "PARTIES" or individually as a "PARTY." RECITALS: 1. WHEREAS, the Congress of the United States has enacted the Intermodal Surf Transportation Efficiency Act (ISTEA) of 1991 and subsequent Transportation Authorization I to fund transportation programs. These transportation programs include, but are not limited to, Surface Transportation Program (STP), the Congestion Mitigation and Air Quality Improven Program (CMAQ), the Transportation Enhancement Program (TE), Highway Safety Improven Program (HSIP) and the Highway Bridge Program (HBP) (collectively the 'PROGRAMS'); and 2. WHEREAS, the Legislature of the State of California has enacted legislation by which cei federal -aid funds may be made available for use on local transportation related projects of pu entities qualified to act as recipients of these federal -aid funds in accordance with the inten federal law; and 3. WHEREAS, before federal -funds will be made available for a specific program proj ADMINISTERING AGENCY and STATE are required to enter into an agreement to estal terms and conditions applicable to the ADMINISTERING AGENCY when receiving federal fi for a designated PROJECT facility and to the subsequent operation and maintenance of completed facility. NOW, THEREFORE, the PARTIES agree as follows: r � q ARTICLE I - PROJECT ADMINISTRATION 1. This AGREEMENT shall have no force or effect with respect to any program project unless until a project -specific Program Supplement to this AGREEMENT for federal -aid projec hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STF and ADMINISTERING AGENCY. 2. The term "PROJECT", as used herein, means that authorized transportation related project related activities financed in part with federal -aid funds as more fully -described in "Authorization/ Agreement Summary" or "Amendment/Modification Summary", herein referre as "E-76" or "E-76 (AMOD)" document authorized by STATE or the Federal Highw Administration (FHWA). 3. The E-76/E-76(AMOD) shall designate the party responsible for implementing PROJECT, ty of work and location of PROJECT. 4. The PROGRAM SUPPLEMENT sets out special covenants as a condition for ADMINISTERING AGENCY to receive federal -aid funds from/through STATE for designa PROJECT. The PROGRAM SUPPLEMENT shall also show these Federal Funds that have b initially encumbered for PROJECT along with the matching funds to be provided ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by PARTIES shall cause ADMINISTERING AGENCY to adopt all of the terms of this AGREEMI as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expre delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with wri concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by governing body of ADMINISTERING AGENCY. 5. ADMINISTERING AGENCY agrees to execute and return each project -specific PROGR SUPPLEMENT within ninety (90) days of receipt. The PARTIES agree that STATE may susf future authorizations/obligations and invoice payments for any on -going or future federal• project performed by ADMINISTERING AGENCY if any project -specific PROGP SUPPLEMENT is not returned within that ninety (90) day period unless otherwise agree( STATE in writing. 6. ADMINISTERING AGENCY further agrees, as a condition to the release and paymer Federal Funds encumbered for the PROJECT described in each PROGRAM SUPPLEMEN' comply with the terms and conditions of this AGREEMENT and all of the agreed -upon Spe Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, Cooperative/Contribution Agreement where appropriate, defining and identifying the nature c specific PROJECT. 7. Federal, State and matching funds will not participate in PROJECT work performed in adw of the approval of the E-76 or E-76 (AMOD), unless otherwise stated in the executed proje specific PROGRAM SUPPLEMENT. ADMINISTERING AGENCY agrees that it will only pros with the work authorized for that specific phase(s) on the project -specific E-76 or E-76 (AMO ADMINISTERING AGENCY further agrees to not proceed with future phases of PROJECT pri receiving an E-76 (AMOD) from STATE for that phase(s) unless no Further Federal funds needed or for those future phase(s). 8. That PROJECT or portions thereof, must be included in a federally approved Federal Statew Transportation Improvement Program (FSTIP) prior to ADMINISTERING AGENCY submitting "Request for Authorization". 9. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedu (including those set forth in the Local Assistance Procedures Manual and the Local Assistai Program Guidelines, hereafter collectively referred to as "LOCAL ASSISTANCE PROCEDURE relating to the federal -aid program, all Title 23 federal requirements, and all applicable fede laws, regulations, and policy and procedural or instructional memoranda, unless othery specifically waived as designated in the executed project -specific PROGRAM SUPPLEMENT. 10. If PROJECT is not on STATE -owned right of way, PROJECT shall be constructed accordance with LOCAL ASSISTANCE PROCEDURES that describes minimum statewide de: standards for local agency streets and roads. LOCAL ASSISTANCE PROCEDURES for prof( off the National Highway System (NHS) allow STATE to accept either the STATE's minirr statewide design standards or the approved geometric design standards of ADMINISTERI AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGEN( approved standard specifications, standard plans, materials sampling and testing qu; assurance programs that meet the conditions described in the then current LOCAL ASSISTAIN PROCEDURES. 11. If PROJECT involves work within or partially within STATE -owned right-of-way, th PROJECT shall also be subject to compliance with the policies, procedures and standards of STATE Project Development Procedures Manual and Highway Design Manual and wt appropriate, an executed cooperative agreement between STATE and ADMINISTER AGENCY that outlines the PROJECT responsibilities and respective obligations of the PART ADMINISTERING AGENCY and its' contractors shall each obtain an encroachment pe through STATE prior to commencing any work within STATE rights of way or work which aff STATE facilities. 12. When PROJECT is not on the State Highway System but includes work to be performed I railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY o STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY., enter into an agreement with the railroad providing for future maintenance of protective device other facilities installed under the contract. 13. If PROJECT is using STATE funds, the Department of General Services, Division of the c. Architect, or its designee, shall review the contract PS&E for the construction of buildi structures, sidewalks, curbs and related facilities for accessibility and usability. ADMINISTEF AGENCY shall not award a PROJECT construction contract for these types of improvements the State Architect has issued written approval stating that the PROJECT plans and specifical comply with the provisions of sections 4450 and 4454 of the California Government Coc applicable. Further requirements and guidance are provided in Title 24 of the California Co( Regulations. 14. ADMINISTERING AGENCY will advertise, award and administer PROJECT in accord; with the current LOCAL ASSISTANCE PROCEDURES unless otherwise stated in the exec project -specific PROGRAM SUPPLEMENT. Cir� 15. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspect of each PROJECT. While consultants may perform supervision and inspection work PROJECT with a fully qualified and licensed engineer, ADMINISTERING AGENCY shall provid full-time employee to be in responsible charge of each PROJECT. 16. ADMINISTERING AGENCY shall submit PROJECT -specific contract award documents STATE's District Local Assistance Engineer within sixty (60) days after contract award. A cop) the award documents shall also be included with the submittal of the first invoice for a construct contract by ADMINISTERING AGENCY to: Department of Transportation, Division of Accouni Local Programs Accounting Branch, MS #33, PO Box 942874, Sacramento, California 942A 0001. 17. ADMINISTERING AGENCY shall submit the final report documents that collectively constii a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Fail by ADMINISTERING AGENCY to submit a "Report of Expenditures" within one hund eighty(180) days of project completion will result in STATE imposing sanctions ul ADMINISTERING AGENCY in accordance with the current LOCAL ASSISTAN PROCEDURES. 18. ADMINISTERING AGENCY shall comply with: (i) section 504 of the Rehabilitation Act of 1 which prohibits discrimination on the basis of disability in federally assisted programs; (ii) Americans with Disabilities Act (ADA) of 1990 which prohibits discrimination on the basis disability irrespective of funding; and (iii) all applicable regulations and guidelines issued purst to both the Rehabilitation Act and the ADA. 19. The Congress of the United States, the Legislature of the State of California and the Gove of the State of California, each within their respective jurisdictions, have prescribed cer nondiscrimination requirements with respect to contract and other work financed with public fui ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMI PRACTICES ADDENDUM (Exhibit A attached hereto) and the NONDISCRIMINAT ASSURANCES (Exhibit B attached hereto). ADMINISTERING AGENCY further agrees that agreement entered into by ADMINISTERING AGENCY with a third party for performance PROJECT -related work shall incorporate Exhibits A and B (with third parry's name replac ADMINISTERING AGENCY) as essential parts of such agreement to be enforced by that party as verified by ADMINISTERING AGENCY. ARTICLE II - RIGHTS OF WAY 1. No contract for the construction of a federal -aid PROJECT shall be awarded until all necess� rights of way have been secured. Prior to the advertising for construction of PROJE( ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evider that all necessary rights of way are available for construction purposes or will be available by time of award of the construction contract. 2. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liab that may result in the event the right of way for a PROJECT, including, but not limited to, be clear as certified or if said right of way is found to contain hazardous materials requiring treatm or removal to remediate in accordance with Federal and State laws. The furnishing of right of u as provided for herein includes, in addition to all real property required for the PROJECT, title I and clear of obstructions and encumbrances affecting PROJECT and the payment, as requirec applicable law, of relocation costs and damages to remainder real property not actually taken injuriously affected by PROJECT. ADMINISTERING AGENCY shall pay, from its own m matching funds, any costs which arise out of delays to the construction of PROJECT beca utility facilities have not been timely removed or relocated, or because rights of way were available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work. 3. Subject to STATE approval and such supervision as is required by LOCAL ASSISTAIN PROCEDURES over ADMINISTERING AGENCY's right of way acquisition procedu ADMINISTERING AGENCY may claim reimbursement from Federal Funds for expenditt incurred in purchasing only the necessary rights of way needed for the PROJECT after credi PROJECT with the fair market value of any excess property retained and not disposed o' ADMINISTERING AGENCY. 4. When real property rights are to be acquired by ADMINISTERING AGENCY for a PROJE said ADMINISTERING AGENCY must carry out that acquisition in compliance with all applic State and Federal laws and regulations, in accordance with State procedures as publishe State's current LOCAL ASSISTANCE PROCEDURES and STATE's Right -of -Way Mam subject to STATE oversight to ensure that the completed work is acceptable under the Fec Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amende 5. Whether or not federal -aid is to be requested for right of way, should ADMINISTERI AGENCY, in acquiring right of way for PROJECT, displace an individual, family, business, operation, or non-profit organization, relocation payments and services will be provided as forth in 49 CFR, Part 24. The public will be adequately informed of the relocation payments services which will be available, and, to the greatest extent practicable, no person la% occupying real property shall be required to move from his/her dwelling or to move hi business or farm operation without at least ninety (90) days written notice from ADMINISTEF AGENCY. ADMINISTERING AGENCY will provide STATE with specific assurances, on portion of the PROJECT, that no person will be displaced until comparable decent, safe sanitary replacement housing is available within a reasonable period of time prior to displacen and that ADMINISTERING AGENCY's relocation program is realistic and adequate to prc orderly, timely and efficient relocation of PROJECT- displaced persons as provided in 49 C Part 24. 6. ADMINISTERING AGENCY shall, along with recording the deed or instrument evidencing in the name of the ADMINISTERING AGENCY or their assignee, shall also record an Agreer Declaring Restrictive Covenants (ADRC) as a separate document incorporating the assurar included within Exhibits A and B and Appendices A, B, C and D of the AGREEMENT appropriate. rr Ui ARTICLE III - MAINTENANCE AND MANAGEMENT 1. ADMINISTERING AGENCY will maintain and operate the property acquired, develop constructed, rehabilitated, or restored by PROJECT for its intended public use until such time the parties might amend this AGREEMENT to otherwise provide. With the approval of STA' ADMINISTERING AGENCY or its successors in interest in the PROJECT property may trap: this obligation and responsibility to maintain and operate PROJECT property for that intent public purpose to another public entity. 2. Upon ADMINISTERING AGENCY's acceptance of the completed federal -aid constructi contract or upon contractor being relieved of the responsibility for maintaining and protec, PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, owners) liability, and the expense thereof, for PROJECT in a manner satisfactory to the authori; representatives of STATE and FHWA and if PROJECT falls within the jurisdictional limits another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a sepal maintenance agreement(s) between itself and the other jurisdictional Agency or Agern providing for the operation, maintenance, ownership and liability of PROJECT. Until th agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJE operations, maintenance, ownership and liability in a manner satisfactory to the authori representatives of STATE and FHWA. If, within ninety (90) days after receipt of notice fi STATE that a PROJECT, or any portion thereof, is not being properly operated and maintaii and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, approval of future federal -aid projects of ADMINISTERING AGENCY will be withheld until PROJECT shall have been put in a condition of operation and maintenance satisfactory to ST/ and FHWA. The provisions of this section shall not apply to a PROJECT that has been vaci through due process of law with STATE's concurrence. 3. PROJECT and its facilities shall be maintained by an adequate and well -trained stafl engineers and/or such other professionals and technicians as PROJECT reasonably requ Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, ano unit of government, or a contractor under agreement with ADMINISTERING AGENCY. maintenance will be performed at regular intervals or as required for efficient operation of complete PROJECT improvements. ARTICLE IV - FISCAL PROVISIONS 1. All contractual obligations of STATE are subject to the appropriation of resources by Legislature and the allocation of resources by the California Transportation Commission (CT 2. STATE'S financial commitment of Federal Funds will occur only upon the execution of I AGREEMENT, the authorization of the project -specific E-76 or E-76 (AMOD), the execution 4 each project -specific PROGRAM SUPPLEMENT, and STATE's approved finance letter. 3. ADMINISTERING AGENCY may submit signed duplicate invoices in arrears for reimbursem of participating PROJECT costs on a monthly or quarterly progress basis once the project -spec PROGRAM SUPPLEMENT has been executed by STATE. 4. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every (6) months commencing after the funds are encumbered on either the project -specific PROGRJ SUPPLEMENT or through a project -specific finance letter approved by STATE. STATE resen the right to suspend future authorizations/obligations, and invoice payments for any on-goinc future federal -aid project by ADMINISTERING AGENCY if PROJECT costs have not be invoiced by ADMINISTERING AGENCY for a six (6) month period 5. Invoices shall be submitted on ADMINISTERING AGENCY letterhead that includes the addr of ADMINISTERING AGENCY and shall be formatted in accordance with LOCAL ASSISTAI` PROCEDURES. 6. Invoices must have at least one copy of supporting backup documentation for costs incu and claimed for reimbursement by ADMINISTERING AGENCY. Acceptable bac documentation includes, but is not limited to, agency's progress payment to the contract copies of cancelled checks showing amounts made payable to vendors and contractors, and) computerized summary of PROJECT costs. 7. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursemei actual allowable PROJECT costs already incurred and paid for by ADMINISTERING AGENCY 8. An Indirect Cost Rate Proposal and Central Service Cost Allocation Plan and rel documentation are to be provided to STATE (Caltrans Audits & Investigations) annually for re, and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect cost incu within each fiscal year being claimed for federal reimbursement. 9. Once PROJECT has been awarded, STATE reserves the right to de -obligate any exc Federal Funds from the construction phase of PROJECT if the contract award amount is less the obligated amount, as shown on the PROJECT E-76 or E-76 (AMOD). 10. STATE will withhold the greater of either two (2) percent of the total of all Federal F encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGE submits the Final Report of Expenditures for each completed PROGRAM SUPPLEM PROJECT. t- 11. The estimated total cost of PROJECT, the amount of Federal Funds obligated, and required matching funds may be adjusted by mutual consent of the PARTIES hereto witt finance letter, a detailed estimate, if required, and approved E-76 (AMOD). Federal -aid fundir may be increased to cover PROJECT cost increases only if such funds are available and FH) concurs with that increase. 12. When additional federal -aid funds are not available, ADMINISTERING AGENCY agrees tl the payment of Federal Funds will be limited to the amounts authorized on the PROJECT spec E-76 / E-76 (AMOD) and agrees that any increases in PROJECT costs must be defrayed w ADMINISTERING AGENCY's own funds. 13. ADMINISTERING AGENCY shall use its own non -Federal Funds to finance the local share eligible costs and all expenditures or contract items ruled ineligible for financing with Fed( Funds. STATE shall make the determination of ADMINISTERING AGENCY's cost eligibility federal fund financing of PROJECT costs. 14. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for % performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall incli overhead assessments in accordance with section 8755.1 of the State Administrative Manual. 15. Federal and state funds allocated from the State Transportation Improvement Program (S7 are subject to the timely use of funds provisions enacted by Senate Bill 45, approved in 1997, subsequent STIP Guidelines and State procedures approved by the CTC and STATE. 16. Federal Funds encumbered for PROJECT are available for liquidation for a period of sever years from the beginning of the State fiscal year the funds were appropriated in the State Bud State funds encumbered for PROJECT are available for liquidation only for five (5) years from beginning of the State fiscal year the funds were appropriated in the State Budget. Federz state funds not liquidated within these periods will be reverted unless an Cooperative V Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the Califc Department of Finance (per Government Code section 16304). The exact date of fund revere will be reflected in the STATE signed finance letter for PROJECT. 17. Payments to ADMINISTERING AGENCY for PROJECT -related travel and subsistence diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontrac claimed for reimbursement or as local match credit shall not exceed rates authorized to be rank and file STATE employees under current State Department of Personnel Administrc (DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rc ADMINISTERING AGENCY is responsible for the cost difference, and any overpaym inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY demand within thirty (30) days of such invoice. 18. ADMINISTERING AGENCY agrees to comply with Office of Management and Budget (C Circular A-87, Cost Principles for State and Local Governments, and 49 CFR, Part 18, Unif Administrative Requirements for Grants and Cooperative Agreements to State and L Governments. 19. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors be obligated to agree that (a) Contract Cost Principles and Procedures, 48 CFR, Fed( Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine allowability of individual PROJECT cost items and (b) those parties shall comply with fed( administrative procedures in accordance with 49 CFR, Part 18, . Uniform Administra Requirements for Grants and Cooperative Agreements to State and Local Governments. Ev sub -recipient receiving PROJECT funds as a contractor or sub -contractor under tt AGREEMENT shall comply with Federal administrative procedures in accordance with 49 CI Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to Si and Local Governments. 20. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or cr that are determined by subsequent audit to be unallowable under OMB Circular A-87, 48 Cf Chapter 1, Part 31 or 49 CFR, Part 18, are subject to repayment by ADMINISTERING AGEN to STATE. Should ADMINISTERING AGENCY fail to reimburse moneys due STATE within tt 30 days of demand, or within such other period as may be agreed in writing between PARTIES hereto, STATE is authorized to intercept and withhold future payments ADMINISTERING AGENCY from STATE or any third -parry source, including but not limited the State Treasurer, the State Controller and the CTC. 21. Upon written demand by STATE, any overpayment to ADMINISTERING AGENCY of amok invoiced to STATE shall be returned to STATE. 22. Should ADMINISTERING AGENCY fail to refund any moneys due STATE as provi hereunder or should ADMINISTERING AGENCY breach this AGREEMENT by failing to comp PROJECT without adequate justification and approval by STATE, then, within thirty 30 day demand, or within such other period as may be agreed to in writing between the PART' STATE, acting through the State Controller, the State Treasurer, or any other public entit agency, may withhold or demand a transfer of an amount equal to the amount paid by or owe STATE from future apportionments, or any other funds due ADMINISTERING AGENCY from Highway Users Tax Fund or any other sources of funds, and/or may withhold approval of fL ADMINISTERING AGENCY federal -aid projects. 23. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMEN' otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a powers authority, special district, or any other public entity not directly receiving funds through State Controller, STATE is authorized to obtain reimbursement from whatever sources of fun are available, including the withholding or transfer of funds, pursuant to Article IV - 22, from th constituent entities comprising a joint powers authority or by bringing of an action ag; ADMINISTERING AGENCY or its constituent member entities, to recover all funds provide) STATE hereunder. 24. ADMINISTERING AGENCY acknowledges that the signatory party represents ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Po Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restri otherwise limit STATE's ability to recover State funds improperly spent by ADMINISTEF AGENCY in contravention of the terms of this AGREEMENT. r ARTICLE V AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS 1. STATE reserves the right to conduct technical and financial audits of PROJECT work , records when determined to be necessary or appropriate and ADMINISTERING AGENCY agre and shall require its contractors and subcontractors to agree, to cooperate with STATE by mal all appropriate and relevant PROJECT records available for audit and copying as required paragraph three (3) of ARTICLE V. 2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintair accounting system and records that properly accumulate and segregate incurred PROJECT cc and matching funds by line item for the PROJECT. The accounting system of ADMINISTERI AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accoun Principles, enable the determination of incurred costs at interim points of completion, and pro) support for reimbursement payment vouchers or invoices sent to or paid by STATE. 3. For the purpose of determining compliance with Title 21, California Code of Regulati( Chapter 21, section 2500 et seq., when applicable, and other matters connected with performance of ADMINISTERING AGENCY's contracts with third parties, ADMINISTER AGENCY, ADMINISTERING AGENCY's contractors and subcontractors, and STATE shall e maintain and make available for inspection and audit all books, documents, papers, accour records, and other evidence pertaining to the performance of such contracts, including, but limited to, the costs of administering those various contracts. All of the above referenced pai shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at i respective offices at all reasonable times during the entire PROJECT period and for three years from the date of final payment to ADMINISTERING AGENCY under any PROW SUPPLEMENT. STATE, the California State Auditor, or any duly authorized representativ STATE or the United States, shall each have access to any books, records, and documents are pertinent to a PROJECT for audits, examinations, excerpts, and transactions ADMINISTERING AGENCY shall furnish copies thereof if requested. 4. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audii of OMB Circular A-133 if it receives a total of $500,000 or more in Federal Funds in a single fi year. The Federal Funds received under a PROGRAM SUPPLEMENT are a part of Catalogue of Federal Domestic Assistance (CFDA) 20.205, Highway Planning and Research. 5. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTEF AGENCY's annual audit and in the schedule of projects to be examined under its single < prepared in accordance with OMB Circular A-133. 6. ADMINISTERING AGENCY shall not award a construction contract over $10,000 or c contracts over $25,000 (excluding professional service contracts of the type which are requir( be procured in accordance with Government Code sections 4525 (d), (e) and (f) on the basis noncompetitive negotiation for work to be performed under this AGREEMENT without the written approval of STATE. Contracts awarded by ADMINISTERING AGENCY, if intende local match credit, must meet the requirements set forth in this AGREEMENT regarding match funds. 1 7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEME shall contain all of the provisions of ARTICLE IV, FISCAL PROVISIONS, and this ARTICLE AUDITS, THIRD -PARTY CONTRACTING RECORDS RETENTION AND REPORTS, and sh mandate that travel and per diem reimbursements and third -party contract reimbursements subcontractors will be allowable as PROJECT costs only after those costs are incurred and p for by the subcontractors. 8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local ma funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in same manner as required of all other PROJECT expenditures. 9. In addition to the above, the pre -award requirements of third -party contractor/consultants w ADMINISTERING AGENCY should be consistent with LOCAL ASSISTANCE PROCEDURES. v'i ARTICLE VI -FEDERAL LOBBYING ACTIVITIES CERTIFICATION 1. By execution of this AGREEMENT, ADMINISTERING AGENCY certifies, to the best of signatory officer's knowledge and belief, that: A. No federal or state appropriated funds have been paid or will be paid, by or on behal ADMINISTERING AGENCY, to any person for influencing or attempting to influence an offices employee of any STATE or federal agency, a member of the State Legislature or United Sta Congress, an officer or employee of the Legislature or Congress, or any employee of a Membe the Legislature or Congress in connection with the awarding of any STATE or federal contra including this AGREEMENT, the making of any STATE or federal loan, the entering into of cooperative contract, and the extension, continuation, renewal, amendment, or modification of : STATE or federal contract, grant, loan, or cooperative contract. B. If any funds other than federal appropriated funds have been paid, or will be paid, to person for influencing or attempting to influence an officer or employee of any federal agency member of Congress, an officer or employee of Congress or an employee of a member Congress in connection with this AGREEMENT, grant, local, or cooperative contr, ADMINISTERING AGENCY shall complete and submit Standard Form-LLL, "Disclosure Form Rep Lobbying," in accordance with the form instructions. C. This certification is a material representation of fact upon which reliance was placed when AGREEMENT and each PROGRAM SUPPLEMENT was or will be made or entered ii Submission of this certification is a prerequisite for making or entering into this AGREEME imposed by Section 1352, Title 31, United States Code. Any party who fails to file the requi certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,1 for each such failure. 2. ADMINISTERING AGENCY also agrees by signing this AGREEMENT that the language of certification will be included in all lower tier sub -agreements which exceed $100,000 and that such sub -recipients shall certify and disclose accordingly. ARTICLE VII - MISCELLANEOUS PROVISIONS 1. ADMINISTERING AGENCY agrees to use all State funds reimbursed hereunder only transportation purposes that are in conformance with Article XIX of the California St Constitution and the relevant Federal Regulations. 2. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any star enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms funding of this AGREEMENT in any manner. 3. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENT when engaged in the performance of this AGREEMENT, shall act in an independent capacity not as officers, employees or agents of STATE or the federal government. 4. Each project -specific PROGRAM SUPPLEMENT shall separately establish the terms e funding limits for each described PROJECT funded under the AGREEMENT. No federal or s' funds are obligated against this AGREEMENT. 5. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its princiE are suspended or debarred at the time of the execution of this AGREEMENT. ADMINISTERI AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarn occurs after the execution of this AGREEMENT. 6. ADMINISTERING AGENCY warrants, by execution of this AGREEMENT, that no persor selling agency has been employed or retained to solicit or secure this AGREEMENT upor agreement or understanding for a commission, percentage, brokerage, or contingent excepting bona fide employees or bona fide established commercial or selling agen maintained by ADMINISTERING AGENCY for the purpose of securing business. For breac violation of this warranty, STATE has the right to annul this AGREEMENT without liability, only for the value of the work actually performed, or in STATE's discretion, to deduct from price of consideration, or otherwise recover, the full amount of such commission, percent, brokerage, or contingent fee. 7. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY he certifies under penalty of perjury that no more than one final unappealable finding of conteml court by a federal court has been issued against ADMINISTERING AGENCY within the immec preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply wit order of a federal court that orders ADMINISTERING AGENCY to comply with an order of National Labor Relations Board. 8. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship STATE, FHWA or FTA that may have an impact upon the outcome of this AGREEME ADMINISTERING AGENCY shall also list current contractors who may have a financial intere the outcome of this AGREEMENT. 9. ADMINISTERING AGENCY hereby certifies that it does not now have nor shall it acquire financial or business interest that would conflict with the performance of PROJECT under AGREEMENT. 10. ADMINISTERING AGENCY warrants that this AGREEMENT was not obtained or secu through rebates, kickbacks or other unlawful consideration either promised or paid to any STA employee. For breach or violation of this warranty, STATE shall have the right, in its discretion terminate this AGREEMENT without liability, to pay only for the work actually performed, of deduct from the PROGRAM SUPPLEMENT price or otherwise recover the full amount of si rebate, kickback, or other unlawful consideration. 11. Any dispute concerning a question of fact arising under this AGREEMENT that is not dispo! of by agreement shall be decided by the STATE's Contract Officer who may consider any wril or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Conti Officer, issued in writing, shall be conclusive and binding on the PARTIES on all questions of considered and determined by the Contract Officer. 12. Neither the pending of a dispute nor its consideration by the Contract Officer will exc ADMINISTERING AGENCY from full and timely performance in accordance with the terms of AGREEMENT. 13. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for injury, damage or liability occurring by reason of anything done or omitted to be done by, undo in connection with any work, authority or jurisdiction arising under this AGREEMENT. I understood and agreed that STATE shall fully defend, indemnify and save harmless ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or acti of every name, kind and description brought forth under, including, but not limited to, tortuc contractual, inverse condemnation and other theories or assertions of liability occurring by rea of anything done or omitted to be done by STATE under this AGREEMENT. 14. Neither STATE nor any officer or employee thereof shall be responsible for any injury, dam or liability occurring by reason of anything done or omitted to be done by ADMINISTER AGENCY under, or in connection with, any work, authority or jurisdiction arising under AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully deft indemnify and save harmless STATE and all of its officers and employees from all claims, suit actions of every name, kind and description brought forth under, including, but not limiter tortuous, contractual, inverse condemnation or other theories or assertions of liability occurrin reason of anything done or omitted to be done by ADMINISTERING AGENCY under AGREEMENT. 15. STATE reserves the right to terminate funding for any PROJECT upon written notic ADMINISTERING AGENCY in the event that ADMINISTERING AGENCY fails to proceed PROJECT work in accordance with the project -specific PROGRAM SUPPLEMENT, the born requirements if applicable, or otherwise violates the conditions of this AGREEMENT al PROGRAM SUPPLEMENT, or the funding allocation such that substantial performanc significantly endangered. 16. No termination shall become effective if, within thirty (30) days after receipt of a Notice Termination, ADMINISTERING AGENCY either cures the default involved or, if not reasons susceptible of cure within said thirty (30) day period, ADMINISTERING AGENCY procei thereafter to complete the cure in a manner and time line acceptable to STATE. Any si termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice Termination, which notice shall become effective not less than thirty (30) days after rece specifying the reason for the termination, the extent to which funding of work under AGREEMENT is terminated and the date upon which such termination becomes effective beyond thirty (30) days after receipt. During the period before the effective termination d+ ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the e% of such termination, STATE may proceed with the PROJECT work in a manner deemed propel STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY, STE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under PROGRAM SUPPLEMENT and/or STATE approved finance letter prior to termination, provic however, ADMINISTERING AGENCY is not in default of the terms and conditions of AGREEMENT or the project -specific PROGRAM SUPPLEMENT and that the cost of PROJE completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY. 17. In case of inconsistency or conflicts with the terms of this AGREEMENT and that of a proj( specific PROGRAM SUPPLEMENT, the terms stated in that PROGRAM SUPPLEMENT E prevail over those in this AGREEMENT. 18. Without the written consent of STATE, this AGREEMENT is not assignable ADMINISTERING AGENCY either in whole or in part. 19. No alteration or variation of the terms of this AGREEMENT shall be valid unless mad writing and signed by the PARTIES, and no oral understanding or agreement not incorpon herein shall be binding on any of the PARTIES. IN WITNESS WHEREOF, the PARTIES have executed this AGREEMENT by their authorized officers. STATE OF CALIFORNIA City of La Quints DEPARTMENT OF TRANSPORTATION Chief, Office of Project Implementation Division of Local Assistance City of La Quinta Representative Name & Title (Authorized Governing Body Representativ( Date Date EXHIBIT A FAIR EMPLOYMENT PRACTICES ADDENDUM 1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate agai any employee for employment because of race, color, sex, sexual orientation, religion, ancestry national origin, physical disability, medical condition, marital status, political affiliation, family medical care leave, pregnancy leave, or disability leave. ADMINISTERING AGENCY will ti affirmative action to ensure that employees are treated during employment without regard to tt race, sex, sexual orientation, color, religion, ancestry, or national origin, physical disability, med condition, marital status, political affiliation, family and medical care leave, pregnancy leave. disability leave. Such action shall include, but not be limited to, the following: employmi upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; re of pay or other forms of compensation; and selection for training, including apprentices) ADMINISTERING AGENCY shall post in conspicuous places, available to employees employment, notices to be provided by STATE setting forth the provisions of this Fair Employrr section. 2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with provisions of the Fair Employment and Housing Act (Government Code Section 1290-0 et sei and the applicable regulations promulgated thereunder (California code of Regulations, Titl( Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Hou: Commission implementing Government Code, Section 12900(a-f), set forth in Chapter 5 Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEME by reference and made a part hereof as if set forth in full. Each of the ADMINISTERI AGENCY'S contractors and all subcontractors shall give written notice of their obligations ur this clause to labor organizations with which they have a collective bargaining or o agreements, as appropriate. 3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provision this clause in all contracts and subcontracts to perform work under this AGREEMENT. 4. ADMINISTERING AGENCY will permit access to the records of employment, employn advertisements, application forms, and other pertinent data and records by STATE, the State Employment and Housing Commission, or any other agency of the State of California designi by STATE, for the purposes of investigation to ascertain compliance with the Fair Employn section of this Agreement. 5. Remedies for Willful Violation: (a) STATE may determine a willful violation of the Fair Employment provision to have occu upon receipt of a final judgment to that effect from a court in an action to which ADMINISTER AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Hou Commission that it has investigated and determined that ADMINISTERING AGENCY has viol the Fair Employment Practices Act and had issued an order under Labor Code Section 1 which has become final or has obtained an injunction under Labor Code Section 1429. (b) For willful violation of this Fair Employment Provision, STATE shall have the right to termin this Agreement either in whole or in part, and any loss or damage sustained by STATE in secur the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY by the surety under the performance bond, if any, and STATE may deduct from any moneys c or thereafter may become due to ADMINISTERING AGENCY, the difference between the pi named in the Agreement and the actual cost thereof to STATE to cure ADMINISTERII AGENCY's breach of this Agreement. �'i:11E3�t:3 NONDISCRIMINATION ASSURANCES ADMINISTERING AGENCY HEREBY AGREES THAT, as a condition to receiving any fed financial assistance from the STATE, acting for the U.S. Department of Transportation, it comply with Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d-42 U.S 2000d-4 (hereinafter referred to as the ACT), and all requirements imposed by or pursuant to T 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of Secretary, Part 21, "Nondiscrimination in Federally -Assisted Programs of the Department Transportation - Effectuation of Title VI of the Civil Rights Act of 1964" (hereinafter referred to the REGULATIONS), the Federal -aid Highway Act of 1973, and other pertinent directives, to end that in accordance with the ACT, REGULATIONS, and other pertinent directives, no perso the United States shall, on the grounds of race, color, sex, national origin, religion, age disability, be excluded from participation in, be denied the benefits of, or be otherwise subjecte, discrimination under any program or activity for which ADMINISTERING AGENCY rece federal financial assistance from the Federal Department of Transportation. ADMINISTERI AGENCY HEREBY GIVES ASSURANCE THAT ADMINISTERING AGENCY will promptly t any measures necessary to effectuate this agreement. This assurance is required by subsec 21.7(a) (1) of the REGULATIONS. More specifically, and without limiting the above general assurance, ADMINISTERING AGED hereby gives the following specific assurances with respect to its federal -aid Program: 1. That ADMINISTERING AGENCY agrees that each "program" and each "facility" as define subsections 21.23 (e) and 21.23 (b) of the REGULATIONS, will be (with regard to a "progrc conducted, or will be (with regard to a "facility") operated in compliance with all requirem imposed by, or pursuant to, the REGULATIONS. 2. That ADMINISTERING AGENCY shall insert the following notification in all solicitations for for work or material subject to the REGULATIONS made in connection with the federal Program and, in adapted form, in all proposals for negotiated agreements: ADMINISTERING AGENCY hereby notifies all bidders that it will affirmatively insure that in agreement entered into pursuant to this advertisement, minority business enterprises wil afforded full opportunity to submit bids in response to this invitation and will not be discrimin against on the grounds of race, color, sex, national origin, religion, age, or disabilit consideration for an award. 3. That ADMINISTERING AGENCY shall insert the clauses of Appendix A of this assuranc every agreement subject to the ACT and the REGULATIONS. 4. That the clauses of Appendix B of this Assurance shall be included as a covenant running the land, in any deed effecting a transfer of real property, structures, or improvements thereo interest therein. 5. That where ADMINISTERING AGENCY receives federal financial assistance to construc facility, or part of a facility, the Assurance shall extend to the entire facility and facilities operate( connection therewith. 6. That where ADMINISTERING AGENCY receives federal financial assistance in the form, or the acquisition, of real property or an interest in real property, the Assurance shall extend to ric to space on, over, or under such property. 7. That ADMINISTERING AGENCY shall include the appropriate clauses set forth in Appendi and D of this Assurance, as a covenant running with the land, in any future deeds, leases, perry licenses, and similar agreements entered into by the ADMINISTERING AGENCY with of parties: Appendix C; (a) for the subsequent transfer of real property acquired or improved under the federal - Program; and Appendix D; (b) for the construction or use of or access to space on, over, or under real property acquirec improved under the federal -aid Program. 8. That this assurance obligates ADMINISTERING AGENCY for the period during which fed financial assistance is extended to the program, except where the federal financial assistance i provide, or is in the form of, personal property or real property or interest therein, or structure: improvements thereon, in which case the assurance obligates ADMINISTERING AGENCY or transferee for the longer of the following periods: (a) the period during which the property is used for a purpose for which the federal final assistance is extended, or for another purpose involving the provision of similar service benefits; or (b) the period during which ADMINISTERING AGENCY retains ownership or possession o1 property. 9. That ADMINISTERING AGENCY shall provide for such methods of administration for program as are found by the U.S. Secretary of Transportation, or the official to whom he deleg specific authority, to give reasonable guarantee that ADMINISTERING AGENCY, other recipif sub -grantees, applicants, sub -applicants, transferees, successors in interest, and of participants of federal financial assistance under such program will comply with all requirem imposed by, or pursuant to, the ACT, the REGULATIONS, this Assurance and the Agreement, 10. That ADMINISTERING AGENCY agrees that the United States and the State of Calif( have a right to seek judicial enforcement with regard to any matter arising under the ACT REGULATIONS, and this Assurance. 11. ADMINISTERING AGENCY shall not discriminate on the basis of race, religion, age, disabil color, national origin or sex in the award and performance of any STATE assisted contract of the administration on its DBE Program or the requirements of 49 CFR Part 26. ADMINISTERII AGENCY shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure r discrimination in the award and administration of STATE assisted contracts. ADMINISTERI AGENCY'S DBE Race -Neutral Implementation Agreement is incorporated by reference in tl AGREEMENT. Implementation of this program is a legal obligation and failure to carry out terms shall be treated as a violation of this agreement. Upon notification to the recipient of failure to carry out its approved DBE Race -Neutral Implementation Agreement, STATE rr impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer matter for enforcement under 18 USC 1001 and/or the Program Fraud Civil Remedies Act of 1! (31 USC 3801 es seq.) THESE ASSURANCES are given in consideration of and for the purpose of obtaining any anc federal grants, loans, agreements, property, discounts or other federal financial assistai extended after the date hereof to ADMINISTERING AGENCY by STATE, acting for the l Department of Transportation, and is binding on ADMINISTERING AGENCY, other recipie subgrantees, applicants, sub -applicants, transferees, successors in interest and other participa in the federal -aid Highway Program. APPENDIX A TO EXHIBIT B During the performance of this Agreement, ADMINISTERING AGENCY, for itself, its assign and successors in interest (hereinafter collectively referred to as ADMINISTERING AGEN( agrees as follows: (1) Compliance with Regulations: ADMINISTERING AGENCY shall comply with the regulati relative to nondiscrimination in federally assisted programs of the Department of Transportat Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to tii (hereinafter referred to as the REGULATIONS), which are herein incorporated by reference made a part of this agreement. (2) Nondiscrimination: ADMINISTERING AGENCY, with regard to the work performed by it du the AGREEMENT, shall not discriminate on the grounds of race, color, sex, national on religion, age, or disability in the selection and retention of sub -applicants, including procureme of materials and leases of equipment. ADMINISTERING AGENCY shall not participate ei' directly or indirectly in the discrimination prohibited by Section 21.5 of the REGULATIO including employment practices when the agreement covers a program set forth in Appendix I the REGULATIONS. (3) Solicitations for Sub -agreements, Including Procurements of Materials and Equipment: In solicitations either by competitive bidding or negotiation made by ADMINISTERING AGENCY work to be performed under a Sub -agreement, including procurements of materials or lease: equipment, each potential sub -applicant or supplier shall be notified by ADMINISTERI AGENCY of the ADMINISTERING AGENCY's obligations under this Agreement and REGULATIONS relative to nondiscrimination on the grounds of race, color, or national origin. (4) Information and Reports: ADMINISTERING AGENCY shall provide all information and rer required by the REGULATIONS, or directives issued pursuant thereto, and shall permit acce: ADMINISTERING AGENCY's books, records, accounts, other sources of information, an( facilities as may be determined by STATE or FHWA to be pertinent to ascertain compliance such REGULATIONS or directives. Where any information required of ADMINISTEF AGENCY is in the exclusive possession of another who fails or refuses to furnish this informa ADMINISTERING AGENCY shall so certify to STATE or the FHWA as appropriate, and shal forth what efforts ADMINISTERING AGENCY has made to obtain the information. (5) Sanctions for Noncompliance: In the event of ADMINISTERING AGENCY's noncompli( with the nondiscrimination provisions of this agreement, STATE shall impose such agreer sanctions as it or the FHWA may Aetermine to be appropriate, including, but not limited to: (a) withholding of payments to ADMINISTERING AGENCY under the Agreement with reasonable period of time, not to exceed 90 days; and/or (b) cancellation, termination or suspension of the Agreement, in whole or in part 0J (6) Incorporation of Provisions: ADMINISTERING AGENCY shall include the provisions paragraphs (1) through (6) in every sub -agreement, including procurements of materials a leases of equipment, unless exempt by the REGULATIONS, or directives issued pursuant then ADMINISTERING AGENCY shall take such action with respect to any sub -agreement procurement as STATE or FHWA may direct as a means of enforcing such provisions incluc sanctions for noncompliance, provided, however, that, in the event ADMINISTERING AGEN becomes involved in, or is threatened with, litigation with a sub -applicant or supplier as a result such direction, ADMINISTERING AGENCY may request STATE enter into such litigation protect the interests of STATE, and, in addition, ADMINISTERING AGENCY may request United States to enter into such litigation to protect the interests of the United States. I .: • . ■ WIN The following clauses shall be included in any and all deeds effecting or recording the transfe PROJECT real property, structures or improvements thereon, or interest therein from the Uni States. (GRANTING CLAUSE) NOW, THEREFORE, the U.S. Department of Transportation, as authorized by law, and upon condition that ADMINISTERING AGENCY will accept title to the lands and maintain the pro constructed thereon, in accordance with Title 23, United States Code, the Regulations for Administration of federal -aid for Highways and the policies and procedures prescribed by Federal Highway Administration of the Department of Transportation and, also in accordance 1 and in compliance with the Regulations pertaining to and effectuating the provisions of Title 'v the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. 2000d to 2000d-4), does hereby remi release, quitclaim and convey unto the ADMINISTERING AGENCY all the right, title, and inte of the U.S. Department of Transportation in, and to, said lands described in Exhibit "A" attac hereto and made a part hereof. (HABENDUM CLAUSE) TO HAVE AND TO HOLD said lands and interests therein unto ADMINISTERING AGENCY its successors forever, subject, however, to the covenant, conditions, restrictions and reservatl herein contained as follows, which will remain in effect for the period during which the property or structures are used for a purpose for which federal financial assistance is extende for another purpose involving the provision of similar services or benefits and shall be bindinc ADMINISTERING AGENCY, its successors and assigns. ADMINISTERING AGENCY, in consideration of the conveyance of said lands and interes lands, does hereby covenant and agree as a covenant running with the land for itself successors and assigns, (1) that no person shall on the grounds of race, color, sex, national origin, religion, agi disability, be excluded from participation in, be denied the benefits of, or be otherwise subjectE discrimination with regard to any facility located wholly or in part on, over, or under such IC hereby conveyed (;) (and) * (2) that ADMINISTERING AGENCY shall use the lands and interests in lands so conveyer compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulati Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discriminatio federally -assisted programs of the Department of Transportation - Effectuation of Title VI of Civil Rights Act of 1964, and as said Regulations may be amended (;) and (3) that in the event of breach of any of the above -mentioned nondiscrimination conditions, U.S. Department of Transportation shall have a right to re-enter said lands and facilities on land, and the above -described land and facilities shall thereon revert to and vest in and beci the absolute property of the U.S. Department of Transportation and its assigns as such intf existed prior to this deed.* * Reverter clause and related language to be used only when it is determined that such a clau necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. APPENDIX C TO EXHIBIT B The following clauses shall be included in any and all deeds, licenses, leases, permits, or sin instruments entered into by ADMINISTERING AGENCY, pursuant to the provisions of Assura 7(a) of Exhibit B. The grantee (licensee, lessee, permittee, etc., as appropriate) for himself, his heirs, pers, representatives, successors in interest, and assigns, as a part of the consideration hereof, d hereby covenant and agree (in the case of deeds and leases add "as covenant running with land") that in the event facilities are constructed, maintained, or otherwise operated on the property described in this (deed, license, lease, permit, etc.) for a purpose for which a t Department of Transportation program or activity is extended or for another purpose involving provision of similar services or benefits, the (grantee, licensee, lessee, permittee, etc.), s maintain and operate such facilities and services in compliance with all other requirem( imposed pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportat Subtitle A, Office of Secretary, Part 21, Nondiscrimination in federally -assisted programs of Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as s Regulations may be amended. (Include in licenses, leases, permits, etc.)* That in the event of breach of any of the above nondiscrimination covenants, ADMINISTER AGENCY shall have the right to terminate the (license, lease, permit etc.) and to re-enter , repossess said land and the facilities thereon, and hold the same as if said (license, lease, pei etc.) had never been made or issued. (Include in deeds)* That in the event of breach of any of the above nondiscrimination covenants, ADMINISTER AGENCY shall have the right to re-enter said land and facilities thereon, and the abo, described lands and facilities shall thereupon revert to and vest in and become the absc property of ADMINISTERING AGENCY and its assigns. * Reverter clause and related language to be used only when it is determined that such a clau necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. APPENDIX D TO EXHIBIT B The following shall be included, in all deeds, licenses, leases, permits, or similar agreemf entered into by the ADMINISTERING AGENCY, pursuant to the provisions of Assurance 7 (b Exhibit B. The grantee (licensee, lessee, permittee, etc., as appropriate) for himself, his perE representatives, successors in interest and assigns, as a part of the consideration hereof, d hereby covenant and agree (in the case of deeds, and leases add "as a covenant running with land") that: (1) no person on the ground of race, color, sex, national origin, religion, age or disability, shal excluded from participation in, denied the benefits of, or otherwise subjected to discriminatio the use of said facilities; (2) that in the construction of any improvements on, over, or under such land and the furnishin services thereon, no person on the ground of race, color, sex, national origin, religion, ag( disability shall be excluded from participation in, denied the benefits of, or otherwise be subjec to discrimination; and (3) that the (grantee, licensee, lessee, permittee, etc.,) shall use the premises in compliance the Regulations. (Include in licenses, leases, permits, etc.)* That in the event of breach of any of the above nondiscrimination covenants, ADMINISTER AGENCY shall have the right to terminate the (license, lease, permit, etc.) and to re-enter repossess said land and the facilities thereon, and hold the same as if said (license, lease, pei etc.) had never been made or issued. (Include in deeds)* That in the event of breach of any of the above nondiscrimination covenants, ADMINISTEF AGENCY shall have the right to re-enter said land and facilities thereon, and the abo described lands and facilities shall thereupon revert to and vest in and become the abs( property of ADMINISTERING AGENCY, and its assigns. * Reverter clause and related language to be used only when it is determined that such a clau necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. G9 SUPPLEMENT NO. N006 to 'TERING AGENCY -STATE AGREEMENT FERAL -AID PROJECTS NO. 08-54331Z Date:October 31, 2006 ATTACHr Location: 08-RIV-0-LQNT Project Number:STPL-5433(007) E.A. Number:08-924943 am Supplement hereby incorporates the Administering Agency -State Agreement for Federal Aid which was entered into ie Administering Agency and the State on / / and is subject to all the terms and conditions thereof. This Program it is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. , approved by the Administering Agency on (See copy attached). nistering Agency further stipulates that as a condition to the payment by State of any funds derived from sources noted gated to this project, the Administering Agency accepts and will comply with the Special covenants or Remarks setforth owing pages. LOCATION: I lanes of 54th Avenue from Jefferson Street to Madison Street r WORK: Road rehabilitation LENGTH: 1(HILM Lted Cost Federal Funds Hatching Funds $555,881.00 L240 $228,523.00 LOCAL $327,358.00 $0.00 OTHER $0 r LA QUINTA STATE OF CALIFORNIA Department of Transportation BY Chief, Office of Project Implements.ti Division of Local Assistance Date a y certify upon my persosal haouledge that budgeted funds are availableforthis encumbrance: sting Officer Date 1?id/Ul„ $228,523 8tatutas Item Year Program SC I Category Fund Source AMOUNT 2005 2660-102-890 2005-2006 20.30.010.810 C 262040 892-F 228,523.01 Program Supplement 08-5433-M006- ISTEA cs� RIV-0-LONT 11/07/2006 'L-5433(007) SPECIAL COVENANTS OR REMARKS The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days after the project contract award. A copy of the award package shall also be included with the submittal of the ADMINISTERING AGENCY's first invoice for the construction contract to: Department of Transportation Division of Accounting Local Programs Accounting Branch, MS #33 P. O. Box 942874 Sacramento, CA 94274-0001. Failure to do so will cause a delay in the State processing invoices for the construction phase. Please refer to Section 15.7 "Award Package" of the Local Assistance Procedures Manual. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s). Any State and Federal funds that may have been encumbered for this project are only available for disbursement for a period of five (5) years and seven (7) years, respectively, from the start of the fiscal year(s) that those funds were appropriated within the State Budget Act. All project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested and is approved by the California Department of Finance per Government Code Section 16304. The exact date of each fund reversion will be reflected in the approved finance letter(s) issued for this project. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement that is not submitted to the Department on or before 60 days after that applicable fixed fund reversion date will not be paid from that fiscal year's encumbered funds because all of these unexpended funds will be irrevocably reverted by the Department's Division of Accounting on that date. Pursuant to a directive from the State Controller's Office and the Department of Finance, the last date to submit invoices for reimbursed work in each fiscal year is May 15th in order for payment to be made out of those then current appropriations. Project work performed and invoiced after May 15th will be reimbursed only out of available funding that might be encumbered in the subsequent fiscal year, and then only when those funds Program Supplement 08-5433R-N006- ISTEA " ` 0 g HIV-0-LUNT )L-5433(007) SPECIAL COVENANTS OR REMARKS 11/07/2006 are actually allocated and encumbered as authorized by the California Transportation Commission and the Department's Accounting Office. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations, and invoice payments for any on -going or future federal -aid project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period. If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures° within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual. Program Supplement 08-5433R-N006- ISTEA COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Acceptance of On -Site Improvements Associated with Tract Map No. 29457-1, Rancho La Quinta, T.D. Desert Development RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: i 711:311Ti1:1II:�:i1►Le� Accept on -site improvements associated with Tract Map No. 29457-1, Rancho La Quinta, T.D. Desert Development and authorize staff to release performance securities upon receipt of warranty securities. FISCAL IMPLICATIONS: None. No public improvements will be accepted with this action. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Tract Map No. 29457-1, Rancho La Quinta, is located on the southeast corner of Avenue 48 and Washington Street (please see Attachment 1). All obligations of the Subdivision Improvement Agreement and the Conditions of Approval have been satisfied. Attachment 2 indicates the amount of warranty security. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Accept the on -site improvements associated with Tract Map No. 29457-1, Rancho La Quinta, T.D. Desert Development and authorize staff to release performance securities upon receipt of warranty securities; or 2. Do not accept the on -site improvements associated with Tract Map No. 29457-1, Rancho La Quinta, T.D. Desert Development and do not authorize staff to release performance securities upon receipt of warranty securities; or 3. Provide staff with alternative direction. Respectfully submitted, 1 Tin othy R. Jo so r, .E. ONic Works rect City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Warranty Security F 9 1 ATTACHMENT -1 TRACT MAP No. 29457-1 RANCHO LA QUINTA r— W W W ¢ W f— ¢ N f— N N z Q a EISENH WN RANCHO DRIVE QUINTA MISSION OR. SITE- 50TH AVENUE VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: December 5, 2006 I— W W fA z 0 cc W LL LL W 7 ITEM TITLE: Acceptance of Off -site Improvements Associated with Tract Map No. 29457-1, Rancho La Quinta APPLICANT: T.D. Desert Development ATTACHMENT - 2 TRACT MAP No. 29457-1 RANCHO LA QUINTA ON -SITE IMPROVEMENTS ON -SITE IMPROVEMENTS Performance Security' Improvement Description Labor & MaterialsZ Current Amount Proposed Reduction WARRANTY AMOUNTS Grading $35,310 $35,310 90% $3,531 Street and Drainage Improvements $313,673 $313,673 90% $31,367 Domestic Water $260,860 $260,860 90% $26,086 Sanitary Sewer $149,400 $149,400 90% $14,940 Underground Electric $292,500 $292,500 1 90% $29,250 Monumentation $0 $15,000 1 100% $0 Totals $1,051,743 $1,066,743 — $105,174 WARRANTY SECURITY CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of On -site Improvements Associated with Tract Map No. 29457-1, Rancho La Quinta APPLICANT: T.D. Desert Development COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Acceptance of On -Site Improvements Associated with Tract Map No. 30487, Santa Rosa Trails, Santa Rosa Trails, LLC RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: _ CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Accept on -site improvements associated with Tract Map No. 30487, Santa Rosa Trails, Santa Rosa Trails, LLC and authorize staff to release performance securities upon receipt of warranty securities. FISCAL IMPLICATIONS: None. No public improvements will be accepted with this action. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Tract Map No. 30487, Santa Rosa Trails, is located on the north side of Avenue 58 approximately %of a mile to the west of Madison Street (please see Attachment 1). All obligations of the Subdivision Improvement Agreement and the Conditions of Approval have been satisfied. Attachment 2 indicates the amount of warranty security. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 . Accept the on -site improvements associated with Tract Map No. 30487, Santa Rosa Trails, Santa Rosa Trails, LLC and authorize staff to release performance securities upon receipt of warranty securities; or 2. Do not accept the on -site improvements associated with Tract Map No. 30487, Santa Rosa Trails, Santa Rosa Trails, LLC and do not authorize staff to release performance securities upon receipt of warranty securities; or 3. Provide staff with alternative direction. Respectfully submitted, r othy R. ass P.E. Public Worko irec /City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1 . Vicinity Map 2. Warranty Security ATTACHMENT-1 "TRACT 30487 - SANTA ROSA TRAILS l w a CgY OF Z LA OUINTA W o � AIRPORT BLVD. PROJECT 58th AVE. VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of On -site Improvements Associated with Tract Map No. ./ .: 30487, Santa Rosa Trails APPLICANT: Santa Rosa Trails, LLC 1 ATTACHMENT - 2 TRACT MAP No. 30487 SANTA ROSA TRAILS ON -SITE IMPROVEMENTS ON -SITE IMPROVEMENTS Performance Security' Improvement Description Labor & Materials? Current Amount Proposed Reduction WARRANTY AMOUNT Grading $74,900 $74,900 90% $7,490 Streets $115,596 $115,596 90% $11,560 Domestic Water $51,350 $51,350 90% $5,135 Sanitary Sewer $58,850 $58,850 90% $5,885 Storm Drain $35,176 $35,176 90% $3,518 Utilities $13,080 $13,080 90% $1,308 Monumentation $5,000 $5,000 100% $0 Standard Contingency 10% $42,474 $42,474 100% $0 Professional Fees, Construction 10% $35,395 $35,395 100% $0 No Plans Contigency 25% $35,395 $35,395 100% $0 Totalsl $467,216 $467,216 — $34,895 WARRANTY SECURITY CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of On -site Improvements Associated with Tract Map No. 30487, Santa Rosa Trails APPLICANT: Santa Rosa Trails, LLC Titf 4 4v Q" COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Acceptance of Off -Site Improvements Associated with Tract Map No. 30487, Santa Rosa Trails, Santa Rosa Trails, LLC RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: p CONSENT CALENDAR: S STUDY SESSION: PUBLIC HEARING: Accept the off -site improvements associated with Tract Map No. 30487, Santa Rosa Trails, Santa Rosa Trails, LLC and authorize staff to release performance securities upon receipt of warranty securities. The Labor & Material security will remain in place for 90 days after City Council acceptance of the off -site improvements. FISCAL IMPLICATIONS: The public improvements to be dedicated with this project include the street improvements necessary to widen Avenue 58 along the project perimeter. The Public Works Maintenance Division budget for next fiscal year will be increased to cover the additional street sweeping and other maintenance costs for these improvements. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Tract Map No. 30487, Santa Rosa Trails, is located on the north side of Avenue 58 approximately %of a mile to the west of Madison Street (please see Attachment 1). The off -site improvements include curb & gutter, sidewalk, curb ramps, signing, striping, and asphalt concrete pavement. All obligations of the Subdivision Improvement Agreement and the Conditions of Approval have been satisfied. Attachment 2 indicates the amount of warranty security. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 . Accept the off -site improvements associated with Tract Map No. 30487, Santa Rosa Trails, Santa Rosa Trails, LLC and authorize staff to release performance securities upon receipt of warranty securities and release Labor & Material security 90 days after City Council acceptance; or 2. Do not accept the off -site improvements associated with Tract Map No. 30487, Santa Rosa Trails, Santa Rosa Trails, LLC and do not authorize staff to release performance securities upon receipt of warranty securities and not release Labor & Material security 90 days after City Council acceptance; or 3. Provide staff with alternative direction. Respectfully submitted, T othy R. on ss P.E. ublic Work ire or/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Warranty Security M ATTACHMENT-1 TRACT 30487 - SANTA ROSA TRAILS uj w CITY OF z LA OUI TA w AIRPORT BLVD. PROJECT 13 58th AVE, VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: December 5, 2006 �q bap ITEM TITLE: Acceptance of Off -site Improvements Associated with Tract Map No. 30487, Santa Rosa Trails �i APPLICANT: Santa Rosa Trails, LLC 10 ATTACHMENT - 2 TRACT MAP No. 30487 SANTA ROSA TRAILS OFF -SITE IMPROVEMENTS OFF -SITE IMPROVEMENTS Performance Security' Improvement Description Labor & Materials2 Current Amount Proposed Reduction WARRANTY AMOUNT Landscaping $15,000 $15,000 90% $1,500 Streets $58,098 $58,098 90% $5,810 Domestic Water $54,170 $54,170 90% $5,417 Sanitary Sewer $39,050 $39,050 90% $3,905 Perimeter Garden Wall $120,000 $120,000 90% $12,000 Sidewalk $3,462 $3,462 90% $346 Professional Fees, Construction 10% $28,978 $28,978 100% $0 Standard Contigency 10% $31,876 $31,876 100% $0 Totals $350,634 $350,634 -- $28,978 WARRATS Y SECURITY CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of Off -site Improvements Associated with Tract Map No. 30487, Santa Rosa Trails APPLICANT: Santa Rosa Trails, LLC Fy OF TRH AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: December 5, 2006 BUSINESS SESSION: ITEM TITLE: Approval of Annual District Information CONSENT CALENDAR: Sheets for the City of La Quinta Assessment District Nos. 92-1 and 97-1 for Fiscal Year End June 30, STUDY SESSION: 2006 PUBLIC HEARING: RECOMMENDATION: Approve, receive and file the Annual District Information Sheets for the City of La Quinta Assessment District Nos. 92-1 and 97-1 for Fiscal Year End June 30, 2006 (Attachment 1). FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: In an effort to monitor the condition of the City-wide Assessment Districts and to report to the investment community the status of the City Assessment Districts, district information sheets have been prepared. Based upon staff review of the Disclosure Information Sheets and based upon discussions with MuniFinancial, who prepared the documents, adequate reserves are available to meet debt service payments for the Fiscal Year 2005/06. ��r FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve, receive and file the Annual District Information Sheets for the City of La Quinta Assessment District Nos. 92-1 and 97-1 for Fiscal Year End June 30, 2006; or 1. Do not approve, receive and file the District Information Sheets for the City of La Quinta Assessment District Nos. 92-1 and 97-1 for Fiscal Year End June 30, 2006; or 2. Provide staff with alternative direction. Respectfully submitted, c)G ..N 14t in, Qr1n..+ John M. Falcone?, Fi ance Director Approved for submission by: C; Thomas P. Genovese, City Manager Attachment: 1. 2005/06 District Information Sheets for the City of La Quinta Assessment District Nos. 92-1 and 97-1 A I I AW1111fICl District Information Sheet ssessment District No. 92-1 ity of La Quints, Riverside, CA iOND STATUS of 11/15/2006 Outstanding Principal: $240,000.00 Annual Debt Service For Amount 2006 $ 128,900.00 2007 $ 127,960.00 IISTRICT STATUS No. of Fiscal Amount Percent Parcels Range of Annual Assessments Year Assessment Delinquent Delinquent Delinquent for Fiscal Year 2006107 2004/05 $154,700.92 $2,984.35 1.93% 16 Highest Annual Assessment Per Parcel: $1,973.94 2005106 $158,926.34 $6,973.17 4.39% 41 Lowest Annual Assessment Per Parcel: $1.72 Average Annual Assessment Per Parcel: $164.31 3OND SUMMARY INFORMATION )riginal Issue Amount (Par) $1,880,891.50 Final Maturity: September 2, 2008 )ate of Issuance September 1, 1993 Bond Call Notice (days) 30 :oupon Payment Dates March 2, September 2 DISTRICT SUMMARY INFORMATION )verall Assessed Value / Lien Ratio 733.18 Total Assessed Improvements $171,817,522.00 "otal Assessed Value $229,015,456.00 Total Assessed Land $57,197,934.00 "ype of Improvements Storm drains, streets, water 4CTIVE PARCEL INFORMATION is of 06/30/06 Number Percentage of Percentage of Annual Category of Parcels Total Parcels Assessment Improved Parcels 863 93.91 % 93.55 0 6.45% Unimproved Parcels 56 919 6.09 % 100.00 % 100.00% Total FUND BALANCE INFORMATION Fund As of Date Balance Type of Investment Funds Administered By Redemption Fund September 30, 2006 $30,256.40 N/A N/A Held By City Held By City Reserve Fund September 30, 2006 $149,832.35 Approx. Reserve Requirement: $131,750.00 All assessed values are based on data obtained from the applicable county. The information pertaining to the District and its underlying security he e, but is not teed as or reformation is not in ended to be,l and should not beliconstrued as, an eeved to be lndorsement of chnsecurity noor a recommendation completeness. from sources endat oto purchase, sell or hold suc security. Compiled by: MunlFinancial 27368 Via Industda, Suite 110 Temecula, CA 92590 (951) 587-3500 www.muni.00m Page 1 of District Information Sheet ssessment District No. 92-1 ity of La Quinta, Riverside, CA )UTSTANDING DELINQUENCY INFORMATION s of 10/06/06 Total Delinquencies Delinquency Rate Delinquent No. Tax Year Assessment (current) (current) of Parcels 2000/01 $185,973.20 $0.00 0.00% 0 2001/02 $188,969.18 $287.32 0.15% 1 2002/03 $186,319.04 $487.08 0.26% 2 2003/04 $190,689.54 $1,163.26 0.61% 4 2004/05 $154,700.92 $2,984.35 1.93% 16 2005/06 $158,926.34 $6,973.17 4.39% 41 rARCEL OWNERS (REPRESENTING 5% OR MORE OF TOTAL ASSESSMENT) ased on County Property Data as of 06/30/06 Number % of Total Annual Assessment % of Annual Assessed Owner of Parcels Parcels for Fiscal Year 2006107 Assessment Value There are currently no parcel owners representing 5% or more of the total N/A N/A N/A N/A N/A assessment. Aggregate inlomaebon for each owner listed is based on owner name as shown on dre appllcaWe secured roll maintained by the county. Accordingly, "nations in the owner name shown on Me secured roll may muse multiple lisbngs for the same owner orfor the data to be incomplete. :ALL PROVISIONS Optional Redemption: )RINCIPLE UNDERWRITER M.L. Stern & Co. /ALOE TO LIEN RATIO: is of 06/30/06 Percent of Total Value to Lien No. of Percent of Aggregate Remaining Remaining Ratio Parcels Total Parcels Assessed Value Assessment Lien Principal 5,000:1 and Above 145 15.78% $54,013,124.00 $4,419.79 1.42% 1,000:1 to 4,999:1 72 7.83% $58,396,137.00 $33,841.71 10.83% 500:1to999:1 228 24.81% $59,943,229.00 $87,115.37 27.89% 100:1 to 499:1 434 47.23% $55,934,855.00 $171,679.34 54.96% Less than 100:1 40 4.35% $728,111.00 $15,301.79 4.90% Total 919 100.00% $229,015,456.00 $312,357.99 100.00% Nil assessed values are based on data obtained from the applicable county. The information pertaining to the District and its underlying security ha; )een obtained by MuniFinancial from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. The release of lhi: nformation is not intended to be, and should not be construed as, an endorsement of such security nor a recommendation to purchase, sell or hold sucl security. compiled by: MuniFinancial 27368 Via Industria, Suite 110 Temecula, CA 92590 (951) 587-3500 www.muni.com Page 2 of: 11 i'► District Information Sheet ,ssessment District No. 97-1 :ity of La Quinta, Riverside, CA IOND STATUS s of 1111612006 Outstanding Principal: $490,000.00 Annual Debt Service For Amount 2006 $ 58,460.00 2007 $ 56,990.00 )ISTRICT STATUS No. of Fiscal Amount Percent Parcels Range of Annual Assessments Year Assessment Delinquent Delinquent Delinquent for Fiscal Year 2006107 2004/05 $65,540.80 $0.00 0.00% 0 Highest Annual Assessment Per Parcel: $672.76 2005/06 $64,813.60 $630.32 0.97% 1 Lowest Annual Assessment Per Parcel: $327.70 Average Annual Assessment Per Parcel: $615.33 BOND SUMMARY INFORMATION )riginal Issue Amount (Par) $745,000.00 Final Maturity: September 2, 2018 )ate of Issuance December 3, 1998 Bond Call Notice (days) 30 )oupon Payment Dates March 2, September 2 DISTRICT SUMMARY INFORMATION Overall Assessed Value / Lien Ratio 50.44 Total Assessed Improvements $20,430,725.00 Total Assessed Value $26,955,704.00 Total Assessed Land $6,524,979.00 Type of Improvements Roads, water, sewer, landscape ACTIVE PARCEL INFORMATION as of 06/30/06 Number Percentage of Percentage of Annual Category of Parcels Total Parcels Assessment Improved Parcels 105 100.00% 100.00% Unimproved Parcels p 0 0.00 % 100.00% 0.00/o 100.00% Total 105 FUND BALANCE INFORMATION Fund As of Date Balance Type of Investment Funds Administered By Redemption Fund Reserve Fund September 30, 2006 September 30, 2006 $25,799.55 $65,432.59 N/A N/A Held By City Held By City Approx. Reserve Requirement: $61,160.00 All assessed values are based on data obtained from the applicable county. The information pertaining to the District and its underlying security N been obtained by MuniFinancial from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. The release of th information is not intended to be, and should not be construed as, an endorsement of such security nor a recommendation to purchase, sell or hold suc security. Compiled by: MuniFinancial 27368 Via Industria, Suite 110 Temecula, CA 92590 (951) 587-3500 WWW.muni.com Page 1 of 111 District Information Sheet assessment District No. 97-1 :ity of La Quints, Riverside, CA )UTSTANDING DELINQUENCY INFORMATION s of 10/06/06 Total Delinquencies Delinquency Rate Delinquent No. Tax Year Assessment (current) (current) of Parcels 2000101 $66,323.70 $0.00 0.00% 0 2001/02 $65,457.70 $0.00 0.00% 0 2002/03 $69,416.60 $0.00 0.00% 0 2003/04 $70,899.80 $0.00 0.00% 0 2004/05 $65,540.80 $0.00 0.00% 0 2005/06 $64,813.60 $630.32 0.97% 1 PARCEL OWNERS (REPRESENTING 5% OR MORE OF TOTAL ASSESSMENT) used on County Property Data as of 06/30/06 Number % of Total Annual Assessment % of Annual Assessed Owner of Parcels Parcels for Fiscal Year 2006/07 Assessment Value There are currently no parcel owners representing 5% or more of the total N/A N/A N/A N/A N/A assessment. Aggregate mrmmabon for each awner bated is based on owner name as shown on the applicable secured roll maintained by the county. Accordingly, variations m gm owner name shown an the secured rog may cause multiple listings for the some owner or for the data to be incomplete ,:ALL PROVISIONS Optional Redemption: DRINCIPLE UNDERWRITER vtiller and Schroeder Financial, Inc. iolana Beach, California VALUE TO LIEN RATIO: is of 06/30/06 eye of Total Value to Lien Ratio No. of Parcels % of Total Parcels Aggregate Assessed Value Remaining Assessment Lien Remaining Principal _ 100:1 and Above 3 2.86% $1,220,821.00 $7,975.05 1.49% 75:1 to 99.99:1 9 8.57% 3,696,641.00 44,346.35 8.30% 50:1 to 74.99:1 30 28.57% 9,419,157.00 153,777.35 28.78% 25:1 to 49.99:1 63 60.00% 12,619,085.00 328,293.00 61.43% Less than 25:1 0 0.00% 0.00 0.00 0.00% Total 105 100.00% $26,955,704.00 $534,391.75 100.00% All assessed values are based on data obtained from the applicable county. The information pertaining to the District and its underlying security ha: been obtained by MuniFinancial from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. The release of thl. information is not intended to be, and should not be construed as, an endorsement of such security nor a recommendation to purchase, sell or hold sucl security. Compiled by: MunlFlnancial 27368 Via Industna, Suite 110 Temecula, CA 92590 (951) 587-3500 www.muni.mm Page 2 of cep 4 4 Qumrry OF �9 AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 5, 2006 CONSENT CALENDAR: A) ITEM TITLE: Approval of Annual Continuing Disclosure for the City of La Quinta 2000-1 Assessment District STUDY SESSION: for Fiscal Year End June 30, 2006 PUBLIC HEARING: RECOMMENDATION: Approve, receive and file the Annual Continuing Disclosure for the City of La Quinta 2000-1 Assessment District for Fiscal Year End June 30, 2006. FISCAL IMPLICATIONS: lilrom" CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On November 10, 1994, the Securities and Exchange Commission adopted amendments to existing federal regulations (Rule 15c2-12) for bonds issued after July 3, 1995, requiring issuers of municipal securities (bond issues) to do the following annually for each bond issue: 1. Prepare official statements meeting the content requirement of Rule 15c2- 12. 11 2. File certain financial information and operating data with national and state repositories each year. 3. Prepare announcements of the significant events including payment defaults, defeasances and draws on a reserve fund as the events occur. Attachment 1 is the 2005/06 Annual Continuing Disclosure Statement for the City of La Quinta 2000-1 Assessment District - La Quinta, prepared in accordance with the three aforementioned requirements. Additionally, no announcement of significant events was necessary for Fiscal Year 2005/06. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve, receive and file the Annual Continuing Disclosure for the City of La Quinta 2000-1 Assessment District for Fiscal Year End June 30, 2006; or 2. Do not approve, receive and file the Annual Continuing Disclosure for the City of La Quinta 2000-1 Assessment District for Fiscal Year End June 30, 2006; or 3. Provide staff with alternative direction. Respectfully submitted, YAU&tA, W rat 14 4 �." er John M. Falcon, Finance Director Approved for submission by: Thomas G. Genovese, City Manager Attachment: 1. 2005/06 Annual Continuing Disclosure Statement for the City of La Quinta 2000-1 Assessment District 11 A 1 1 AGtI1VICP CITY OF LA QU/NTA ASSESSMENT DISTRICT NO. 2000-1 (PHASE VI IMPROVEMENTS) $2,285,000 LIMITED OBLIGATION IMPROVEMENT BONDS Riverside, California Dated: June 21, 2000 CUSIP: 504193 2005/2006 ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENT NOVEMBER 29, 2006 Also available at: MuniFinancial www.muni.com LIST OF PARTICIPANTS CITY OF LA QUINTA www.la-quinia.org John Falconer Finance Director P.O. Box 1504 78-495 Calle Tampico La Quinta, California 92247-1504 (760) 777-7150 DISCLOSURE CONSULTANT & DISSEMINATION AGENT MuniFinancial Temecula, CA 92590 (951) 587-3500 Report available for viewino 0 www.muni.com UNDERWRITER Miller & Schroeder Financial, Inc. BOND COUNSEL" Rutan & Tucker LLP Costa Mesa, California PAYING AGENT Brad Scarbrough U.S. Bank Trust, N.A. 633 West 5th Street, 24th Floor Los Angeles, California 90071 (213) 615-6047 ' In its role as Disclosure Consultant and Dissemination Agent, MuniFinancial has not passed upon the accuracy, completeness or fairness of the statements contained herein. 11(5 L INTRODUCTION Pursuant to an Official Statement dated June 21, 2000, the City of La Quinta, (the "City") issued $2,285,000 Assessment District No. 2000-1 (Phase VI Improvements) (the "District"), Limited Obligation Improvement Bonds (the "Bonds"). The Bonds were issued to finance the construction and acquisition of sewer improvements within the areas commonly known as Village Cove, Westward Ho Drive and Bottlebrush/Sagebrush/Saguaro Streets, which are located within the Assessment District. The City, which comprises approximately 35.05 square miles, is located in the Coachella Valley, twenty miles from Palm Springs and 127 miles from Los Angeles. The District includes three non-contiguous areas in the City. The three areas are the Village Cove section, Westward Ho Drive, and Bottlebrush/Sagebrush/Saguaro Streets. The Village Cove Section is generally located in the area bounded by Calle Tampico on the north, Calle Sinaloa on the south, Washington Street on the east, and Eisenhower Drive on the west. The Westward Ho Drive Area is bounded by Dune Palms Road on the west, Jefferson Street on the east, Westward Ho Drive on the north, and the Coachella Valley Water District (CVWD) Stormwater Channel on the south. The Bonds are limited obligation improvement bonds secured by unpaid assessments on the properties in the District. The Bonds are not a debt of the City, the State of California, or any of its political subdivisions and neither the City, the State of California, nor any of its political subdivisions is liable. The Bonds do not constitute indebtedness within the meaning of any constitutional or statutory debt limit or restriction. This Annual Continuing Disclosure Information Statement is being provided pursuant to a covenant made by the Agency for the benefit of the holders of the Bonds and includes the information specified in a Continuing Disclosure Certificate. For further information and a more complete description of the City and the Bonds, reference is made to the Official Statement. The information set forth herein has been furnished by the City and by sources, which are believed to be accurate and reliable but is not guaranteed as to accuracy or completeness. Statements contained in this Annual Continuing Disclosure Information Statement which involve estimates, forecasts, or other matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. Further, the information and expressions of opinion contained herein are subject to change without notice and the delivery of this Annual Continuing Disclosure Information Statement will not, under any circumstances, create any implication that there has been no change in the affairs of the City or any other parties described herein. Fiscal Year 2005/2006 City of La Quints, Assessment District 2000-1 13 ll. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bond Issue As of September 30, 2006 Assessment District No. 2000-1 (Phase VI Improvements) $1,210,000 Limited Obligation Improvement Bonds On March 2, 2006, $245,000 principal amount of the Bonds were called for redemption. The funds for the redemption portion of the Bonds came from surplus Construction Funds after the completion of the project and the prepayment of the assessment liens on the parcels within the District. B. FUND BALANCES Fund Name As of September 30, 2006 Redemption Fund $54,646 Reserve Fund[DM071 $238,207 Reserve Requirement(') $184,830 (1) The Reserve Requirement was calculated based on the lesser of a) maximum annual debt service on the outstanding bonds b)125% of the average annual debt service on the bonds, or c) 10% of the original issue amount of the bonds as set forth in the Official Statement. Source: City of La Quints, as compiled by MuniFinancial. Fiscal Year 200&2006 City of La Quinta, Assessment District 2000-1 2 III. OPERATING INFORMATION A. PARCEL INFORMATION BY ZONING % Of Remaining Remaining Number of Parcels Land Structure Total Assessment Lien (') Value to Lien Assessment Lien Developed Commercial 26 $2,545,397 $12,444,131 $14,989,528 $90,046 166.46 7.05% Undeveloped Commercial 28 4,010,114 0 4,010,114 97,178 _41.27 7.61% Subtotal Commercial 54 $6 551 511 $12144131 $18,999,642 $187,255 101.48 14.67% Developed Residential 350 18,981,415 54,208,020 73,189,435 915,194 79.97 71.70% Undeveloped Residential 67 5,899,814 15,300 5,915,114 174,013 33.99 13.63% Subtotal Residential 417 $24,881,229 $54,223,320 $79,104,549 $1,089,207 72.63 85.33% Grand Total 471 $31,436,740 $66,667,451 $98,104,191 $1,276,431 76.86 100.00% (1) The remaining assessment lien has been reduced as a result of the bond call performed active parcel in the District in the amount of $245,000. on March 2, 2006 proportionately on each Development Status is based on County Land Use Codes and Structure Value. Source: Riverside County 2006/07 Secured Property Roll, as compiled by MuniFinancial. B. PARCEL INFORMATION BY DEVELOPMENT STATUS 2006107 Assessed Value % Of Remaining Remaining Number of Assessment Assessment Parcels Land Structure Total Lien Value to Lien Lien Developed Commercial 26 $2,545,397 $12,444,131 $14,989,528 $90,046 166.46 7.05% Developed Residential 350 18,981,415 54208,020 73,189,435 915,194 79.97 71.70% Subtotal Developed 376 $21,526,812 $66,652,151 $88,178,963 $1,005,240 87.72 78.75% Undeveloped Commercial 28 4,010,114 0 4,010,114 97,178 41.27 7.61% Undeveloped Residential 67 5,899,814 15,300 5,915,114 174,013 33.99 13.63% Subtotal Undeveloped 95 $9,909,928 $15,300 $9,925228 $271,191 36.60 21.25% Grand Total 471 $31,436,740 $66,667,451 $98,104,191 $1,276,431 76.86 100.00% Development Status is based on County Land Use Codes and Structure Value. Source: Riverside County 2006107 Secured Property Roll, as compiled by MuniFinancial. Fiscal Year 200512006 City of La Quinta, Assessment District 2000-1 3 4 C. DELINQUENCY SUMMARY There are currently no delinquent property owners responsible for 5% or more of the total assessment levied. Number Number of Fiscal Of Parcels Annual Assessment Percent Year Parcels Delinquent Assessment Delinquent nl Delinquent 2000/01 468 1 $243,338 $512 0.21% 2001/02 464 2 $245,572 $1,122 0.46% 2002/03 463 2 $242,218 $1,041 0.43% 2003/04 464 2 $244,913 $1,102 0.45% 2004/05 452 4 $237,035 $1,805 0.76% 2005106 451 11 $235,550 $4,098 1.74% (1) Amount delinquent as of October 6, 2006 Source: Riverside County, as compiled by MuniFinancial D. VALUE TO DEBT The following table sets forth by Value to Debt, the Remaining Bonded Debt and Assessed Value for parcels within the District. % Of 2006107 2006107 2006/07 Remaining Remaining Value to Lien Number of Assessed Land Assessed Total Assessed Assessment Assessment Category Parcels Value Structure Value Value _ Lien Lien Greater than30 371 $29,159,032 $64,669,131 $93,828,163 $971,096.08 76.08% 20to29.99 32 868,218 1,517,826 2,386,044 92,101.19 7.22% 10 to 19.99 27 871,840 460,709 1,332,549 86,560.78 6.78% 5 to 9.99 13 382,605 18,404 401,009 52,463.73 4.11% 3 to 4.99 12 50,731 1,381 52,112 31,233.96 2.45% 1to2.99 9 91,175 0 91,175 23,490.10 1.84% Less than 1 7 13,139 0 13,139 19,485.40 1.53% Grand Total 471 $31,436,740 $66,667,451 $98,104,191 $1,276,431.24 100.00% Source: Riverside County 2006/07 Secured Property Roll, as compiled by MuniFinancial. Fiscal Year 200512006 City of La Quints, Assessment District 2000-1 12 o 4 4v Qumrry AGENDA CATEGORY: w cF'k OF BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 20, 2005 CONSENT CALENDAR: ITEM TITLE: Approval of the Declaration of Surplus STUDY SESSION: Property PUBLIC HEARING: RECOMMENDATION: Approve the Declaration of Surplus Property declaring the items listed in Attachment 1 as surplus and authorize staff to advertise its sale, and if unsold, to dispose of the property by other legal means. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The City has accumulated obsolete and non-functional property items over the last six months. The equipment has little or no market value and in accordance with Section 3.12.320 of the Municipal Code, the City may dispose of the equipment by auction, by sale or otherwise after receiving bids and proposals. Staff is proposing advertising the surplus equipment in The Desert Sun newspaper and receiving sealed bids. 1� FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the Declaration of Surplus Property declaring the items listed in Attachment 1 as surplus and authorize staff to advertise its sale and, if unsold, to discard of the property by other legal means; or 2. Do not approve the Declaration of Surplus Property declaring the items listed in Attachment 1 as surplus and authorize staff to advertise its sale and, if unsold, to discard of the property by other legal means; or 3. Provide staff with alternative direction. Respectfully submitted, I�Jto� 1w aria h� . fir► John M. Falcon r, Finance Director Approved for submission by: 6 Thomas P. Genovese, City Manager Attachment: 1. Declaration of Surplus Property a..aLI"mom - k C --- k kk) $k ° B§ )Lo 0LO/ k o LON 0 N Son. ■ §) E 0 $ ) � ■ s ° ««■ w� k c� k s «° ■R $ � ]�� 12S , \ -ebb Off 000 0 ozzz $\B LO \Co CO -� •LL LL U k��� B c@ }k � . ■ ._� $)0Ica ° 1 22 1� Q. `a k OF AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: December 5, 2006 BUSINESS SESSION: ITEM TITLE: Adoption of a Resolution to Extend the CONSENT CALENDAR: la Time for Completion of the Off -Site Improvements for Tract Map No. 30357, Mountain View Country Club STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Adopt a resolution to extend the time for completion of the off -site improvements as specified in the approved Subdivision Improvement Agreement (SIA) to October 1, 2007 for Tract Map No. 30357, Mountain View Country Club FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Mountain View Country Club (Tract Map No. 30357), is located south of Avenue 50, north of Avenue 52, east of Jefferson St., and west of Madison St. (please see Attachment 1). On September 17, 2002, the City Council adopted a resolution granting conditional approval of the Final Map and SIA for Mountain View Country Club. Section 6 of the SIA requires: "that the subdivision improvements shall be complete within twelve months after the approval of the SIA. Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this SIA, to revise improvement security requirements as necessary to ensure completion of the improvements, and/or to require modifications in jr)i the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. " In a letter dated November 6, 2006 (please see Attachment 2), the developer stated that currently a portion of Via Talavera is closed at the model home park, which is accessible only to pedestrian traffic. Therefore, the developer requests a time extension for the remainder of the off -site improvements to October 1, 2007. Staff has prepared the attached resolution which provides for approval of the time extension of the SIA. As the improvements are not critical, staff recommends that the time extension be granted. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 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 October 1, 2007 for Tract Map No. 30357, Mountain View Country Club. 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 October 1, 2007 for Tract Map No. 30357, Mountain View Country Club; or 3. Provide staff with alternative direction. Respectfully submitted, r imothy R. J nas n, P.E. Public Works Dir for/City Engineer Approved for submission by: 4homas P. Genovese, City Manager Attachment: 1. Vicinity Map 2. Letter from Toll Brothers, dated 11 /06/06 RESOLUTION NO. 2006-(Clerk's Office will enter) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING AN EXTENSION OF TIME FOR THE COMPLETION OF THE OFF -SITE IMPROVEMENTS AS SPECIFIED IN THE APPROVED SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP NO. 30357, MOUNTAIN VIEW COUNTRY CLUB, TOLL BROTHERS WHEREAS, the City Council approved the Subdivision Improvement Agreement (SIA) for Tract Map No. 30357, Toll Brothers on September 17, 2002; and WHEREAS, Section 6. Completion of Improvements, of the approved SIA requires that the Subdivider begin construction of the improvements within ninety days and complete the construction within twelve months after the approval of the Agreement; and WHEREAS, failure by the Subdivider to complete construction of the improvements by September 17, 2003, shall constitute cause for the City, in its sole discretion and when it deems necessary, to declare the Subdivider in default of the approved agreement; and WHEREAS, Section 8. Time Extension, of the approved SIA allows for, at the City Council's sole and absolute discretion, an extension of time for completion of the improvements with additions or revisions to the terms and conditions of the Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: Section 1. The time for the completion of improvements as required by the approved SIA to be extended to October 1, 2007. Section 2. The time extension for completing the improvements shall expire when City offices close for regular business on October 1, 2007. If the Subdivider has not completed the improvements, the City, at its sole discretion and when it deems necessary, may declare the Subdivider in default of the Agreement. Section 3. The provided security amount, as required in the approved SIA is satisfactory. No additional securities are required. Resolution No. 2006- Tract Map No. 30357 - Off -site , Mountain View Country Club, Toll Brothers Adopted: December 5, 2006 Page 2 Section 4. All other terms, responsibilities and conditions as listed in the approved SIA shall remain in full force and effect. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 51h day December 2006, by the following vote, to wit: AYES:Council Members (Clerk's Office will enter) NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: VERONICA J. MONTECINO, CMC, CITY CLERK City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California Un TI ATTACHMENT - I TRACT MAP No. 30357 MOUNTAIN VIEW COUNTRY CLUB VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of Resolution to Extend the Time of Completion of the Off -site Improvements for a period of five years for Tract Map No. 30357, Mountain View Country Club APPLICANT: Toll Brothers 1 ATTACHMENT Toll GBrothers America's Luxury Home Builder" November 6, 2006 City of La Quinta Mr. Edward Wimmer Development Services Principal Engineer P.O. Box 1504 78495 Calle Tampico La Quinta, CA 92253-1504 RE: Tract Map No.30357 Subdivision Improvement Agreement Dear Mr. Winner, RECEIVED NOV 1 ' 2006 PUBLIC WORKS We are responding to your letter dated October 24, 2006 whereas you state the requirement to complete subdivision improvements per the Subdivision Improvement Agreement associated with the above referenced Tract Map. Per the conditions of the Subdivision Improvement Agreement if the improvements are not 100% complete the Sub divider may request an extension of time to complete said improvements. This letter shall serve as our formal written request to extend the completion date of the subdivision improvements associated with Tract Map 30357 to October 1, 2007. The reason for the request is due to the fact we have closed off a portion of the street named Via Talavera to vehicular traffic to utilize as our model home park accessible only to pedestrian traffic. All other improvements are 100% complete within Tract Map 30357. But because of our model park road closure we are unable to obtain final acceptance of the improvements associated with Tract Map 30357. We anticipate dismantling the model home park and opening of the road upon completion of our marketing efforts after all homes have been sold sometime mid 2007. Therefore we respectfully request the extension of time for the completion of said improvements to October 1, 2007. New York Stock Exchange • Symbol TOL 14350 North 87th Street, Suite 310, Scottsdale, AZ 85260 480.951-0782 Fax 480-998-7269 u Should you have any questions regarding our request or require anything further to approve this extension by contact me directly @ (480) 951-0782. Sincerely, Terry g a R. Hodge Vice President Land Development Cc: Salem AI-Shatti, Toll Brothers, Inc. George Prine, MDS Consulting Allen Janisch, Toll Brothers, Inc. I COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Adoption of a Resolution to Extend the Time for Completion of the On -Site Improvements for Tract Map No. 30357, Mountain View Country Club RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a resolution to extend the time for completion of the on -site improvements as specified in the approved Subdivision Improvement Agreement (SIA) to October 1, 2007 for Tract Map No. 30357, Mountain View Country Club. FISCAL IMPLICATIONS: [fMOM CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Mountain View Country Club (Tract Map No. 30357), is located south of Avenue 50, north of Avenue 52, east of Jefferson St., and west of Madison St. (please see Attachment 1). On September 17, 2002, the City Council adopted a resolution granting conditional approval of the Final Map and SIA for Mountain View Country Club. Section 6 of the SIA requires: "that the subdivision improvements shall be complete within twelve months after the approval of the SIA. Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this SIA, to revise improvement security requirements as necessary to ensure completion of the improvements, and/or to require modifications in 1� the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. In a letter dated November 6, 2006 (please see Attachment 2), the developer stated that currently a portion of Via Talavera is closed at the model home park, which is accessible only to pedestrian traffic. Therefore, the developer requests a time extension for the remainder of the on -site improvements to October 1, 2007. Staff has prepared the attached resolution which provides for approval of the time extension of the SIA. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: Adopt a Resolution of the City Council to extend the time for completion of the on -site improvements as specified in the approved Subdivision Improvement Agreement to October 1, 2007 for Tract Map No. 30357, Mountain View Country Club. 2. Do not adopt a Resolution of the City Council to extend the time for completion of the on -site improvements time as specified in the approved Subdivision Improvement Agreement to October 1, 2007 for Tract Map No. 30357, Mountain View Country Club; or 3. Provide staff with alternative direction. Respectfully submitted, $mothyy R. o as P.E. Public Work Dir or/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachment: 1. Vicinity Map 2. Letter from Toll Brothers, dated 1 1 /06/06 RESOLUTION NO. 2006-(Clerk's Office will enter) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING AN EXTENSION OF TIME FOR THE COMPLETION OF THE ON -SITE IMPROVEMENTS AS SPECIFIED IN THE APPROVED SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP NO. 30357, MOUNTAIN VIEW COUNTRY CLUB, TOLL BROTHERS WHEREAS, the City Council approved the Subdivision Improvement Agreement (SIA) for Tract Map No. 30357, Toll Brothers on September 17, 2002; and WHEREAS, Section 6. Completion of Improvements, of the approved SIA requires that the Subdivider begin construction of the improvements within ninety days and complete the construction within twelve months after the approval of the Agreement; and WHEREAS, failure by the Subdivider to complete construction of the improvements by September 17, 2003, shall constitute cause for the City, in its sole discretion and when it deems necessary, to declare the Subdivider in default of the approved agreement; and WHEREAS, Section 8. Time Extension, of the approved SIA allows for, at the City Council's sole and absolute discretion, an extension of time for completion of the improvements with additions or revisions to the terms and conditions of the Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: Section 1. The time for the completion of improvements as required by the approved SIA to be extended to October 1, 2007. Section 2. The time extension for completing the improvements shall expire when City offices close for regular business on October 1, 2007. If the Subdivider has not completed the improvements, the City, at its sole discretion and when it deems necessary, may declare the Subdivider in default of the Agreement. Section 3. The provided security amount, as required in the approved SIA is satisfactory. No additional securities are required. �J Resolution No. 2006- Tract Map No. 30357 - On -site, Mountain View Country Club, Toll Brothers Adopted: December 5, 2006 Page 2 Section 4. All other terms, responsibilities and conditions as listed in the approved SIA shall remain in full force and effect. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 5" day December 2006, by the following vote, to wit: AYES:Council Members (Clerk's Office will enter) NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: VERONICA J. MONTECINO, CMC, CITY CLERK City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California ATTACHMENT - 1 TRACT MAP No. 30357 MOUNTAIN VIEW COUNTRY CLUB MR S t HIM ti III _1 , VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of Resolution to Extend the Time of Completion of the On -site Improvements for a period of five years for Tract Map No. 30357, Mountain View Country Club APPLICANT: Toll Brothers 1. ATTACHMEN Toll `Brothers America's Luxury Home Builder" November 6, 2006 City of La Quinta Mr. Edward Wimmer Development Services Principal Engineer P.O. Box 1504 78-495 Calle Tampico La Quinta, CA 92253-1504 RE: Tract Map No.30357 Subdivision Improvement Agreement Dear Mr. Wimmer, I[81EC EI'V ,;'1J NOV 1 ' 2006 I<DUB LIC WORKS We are responding to your letter dated October 24, 2006 whereas you state the requirement to complete subdivision improvements per the Subdivision Improvement Agreement associated with the above referenced Tract Map. Per the conditions of the Subdivision Improvement Agreement if the improvements are not 100% complete the Sub divider may request an extension of time to complete said improvements. This letter shall serve as our formal written request to extend the completion date of the subdivision improvements associated with Tract Map 30357 to October 1, 2007. The reason for the request is due to the fact we have closed off a portion of the street named Via Talavera to vehicular traffic to utilize as our model home park accessible only to pedestrian traffic. All other improvements are 100% complete within Tract Map 30357. But because of our model park road closure we are unable to obtain final acceptance of the improvements associated with Tract Map 30357. We anticipate dismantling the model home park and opening of the road upon completion of our marketing efforts after all homes have been sold sometime mid 2007. Therefore we respectfully request the extension of time for the completion of said improvements to October 1, 2007. New York Stock Exchange • Symbol TOL 14350 North 87th Street, Suite 310, Scottsdale, AZ 85260 1 .i 480-951-0782 Fax 480-998-7269 Should you have any questions regarding our request or require anything further to approve this extension by contact me directly @ (480) 951-0782. Sincerely, �� � \\ Terry R. Hodge Vice President Land Development Cc: Salem AI-Shatti, Toll Brothers, Inc. George Prine, MDS Consulting Allen Janisch, Toll Brothers, Inc. COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Acceptance of On -site Improvements Associated with Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center, Washington III, LTD RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 141 STUDY SESSION: PUBLIC HEARING: Accept on -site improvements associated with Parcel Map Nos. 30903-1, 30903-2 and 30903-3, Washington Park Retail Center, Washington III, LTD and authorize staff to release performance securities upon receipt of warranty securities. FISCAL IMPLICATIONS: None. No public improvements will be accepted with this action. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center, is located on the north side of Avenue 47 between Washington Street and Adams Street (please see Attachment 1). All obligations of the Subdivision Improvement Agreement and the Conditions of Approval have been satisfied. Attachment 2 indicates the amount of warranty securities. 1 QU FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Accept the on -site improvements associated with Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center, Washington III, LTD and authorize staff to release performance securities upon receipt of warranty securities; or 2. Do not accept the on -site improvements associated with Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center, Washington III, LTD and do not authorize staff to release performance securities upon receipt of warranty securities; or 3. Provide staff with alternative direction. Respectfully submitted, Ju othy R onas n, P.Eblic Wor Dir for/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Warranty Securities 141 ATTACHMENT -1 PARCEL MAP Nos. 30903-1, -2, & -3 WASHINGTON PARK RETAIL CENTER COUNTRY CLUB FRED WARING STATE SIMON DRIVE PARCEL MAP NO. 30903- DRIVE AVENUE Cn a 0 a VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of On -site Improvements Associated with Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center APPLICANT: Washington 111, LTD ATTACHMENT - 2 PARCEL MAP Nos. 30903-1, -2, & -3 WASHINGTON PARK RETAIL CENTER PM 309034 S -3 ON -SITE IMPROVEMENTS Performance Security' Improvement Description Labor & Materiah? Current Amount Proposed Reduction WARRANTY AMOUNTS Drainage Improvements $107,190 $107,190 900/0 $10,719 Street Improvements $144,505 $144,505 900/0 $14,451 Domestic Water $237,810 $237,810 90% $23,781 Sanitary Sewer $46,210 $46,210 90% $4,621 Perimeter Landscaping $65,000 $65,000 90% 1 $6,500 Power, Offsite & Onsite $446,000 $446,000 90% $44,600 Monumentation $9,000 $9,000 100% $0 Professional Fees, Construction (10%) $105,572 $105,572 100% $0 Standard Contingency (10%) 1 $116,129 $116,129 1000/0 $0 Totals $1,277,416 1 $1,277,416 - $1ti4,672 PM 30903-2 ON -SITE IMPROVEMENTS Performance Security' Improvement Description Labor & Materials? Current Amount Proposed Reduction WARRANTY AMOUNT Drainage Improvements $213,520 $213,520 900/0 $21,352 Street Improvements $220,510 $220,510 90% $22,051 Domestic Water $740,225 $740,225 900/0 $74,023 Sanitary Sewer $318,890 1 $318,890 900/0 $31,889 Perimeter Landscaping $166,000 $166,000 90% $16,600 Power, Offsite & Onsite $81,809 $81,809 90% $8,181 Monumentation $6,000 $6,000 100% $0 Professional Fees, Construction (10%) $174,695 $174,695 100% $0 Standard Contingency(10%) $192,165 $192,165 100% $0 Totals $2,113,814 $2,113,814 - $174,095 14TY SECURITIE'S CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of On -site Improvements Associated with Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center APPLICANT: Washington 111, LTD I COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Acceptance of Off -Site Improvements Associated with Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center, Washington III, LTD RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Accept off -site improvements associated with Parcel Map Nos. 30903-1, 30903-2 and 30903-3, Washington Park Retail Center, Washington III, LTD. and authorize staff to release performance securities upon receipt of warranty securities. The Labor & Material security will remain in place for 90 days after City Council acceptance of the off -site improvements. FISCAL IMPLICATIONS: The annual maintenance of these improvements is estimated to cost about $4,200 per year. Staff will request an adjustment to the Public Works Maintenance Division budget next fiscal year to cover the additional maintenance cost for these improvements. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Parcel Map Nos. 30903-1, 30903-2, and 30903-3 delineate the Washington Park Retail Center. It is located on the north side of Avenue 47 between Washington Street and Adams Street (please see Attachment 1). The off -site improvements include curb & gutter, storm drain improvements, landscaped medians, sidewalk, curb ramps, signing, striping, and asphalt concrete pavement. All obligations of the Subdivision 1 il,4 Improvement Agreement and the Conditions of Approval have been satisfied. Attachment 2 indicates the amount of warranty security. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Accept the off -site improvements associated with Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center, Washington III, LTD and authorize staff to release performance securities upon receipt of warranty securities and release Labor & Material security 90 days after City Council acceptance; or 2. Do not accept the off -site improvements associated with Parcel Map Nos. 30903-1, 30903-2, and 30903-3, Washington Park Retail Center, Washington III, LTD and do not authorize staff to release performance securities upon receipt of warranty securities and not release Labor & Material security 90 days after City Council acceptance; or 3. Provide staff with alternative direction. Respectfully submitted, t� imothy . o son, P.E. Public Wo s irector/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Warranty Security ATTACHMENT - 1 PARCEL MAP Nos. 30903-1, -2, & -3 WASHINGTON PARK RETAIL CENTER COUNTRY CLUB DRIVE FRED WARING STATE PARCEL MAP NO. 30903 - SIMON DRIVE EISENHOWER DRIVE�- 14f; 70 DRIVE VICINITY MAP NOT TO SCALE CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of Off -site Improvements Associated with Parcel Map Nos. 30903-1, -2, & -3, Washington Park Retail Center APPLICANT: Washington III, LTD ATTACHMENT - 2 PARCEL MAP Nos. 30903-1, -21 & -3 WASHINGTON PARK RETAIL CENTER OFF -SITE IMPROVEMENTS OFF -SITE IMPROVEMENTS Performance Security' Improvement Description Labor & MateriaW Current Amount Proposed Reduction WARRANTY ANOUNT3 Drainage Improvements $107,190 $107,190 90% $10,719 Streets $144,505 $144,505 90% $14,451 Domestic Water $237,810 $237,810 900k $23,781 Sanitary Sewer $46,210 $46,210 900/0 $4,621 Permiter Landscaping $65,000 $65,000 90% $6,500 Power, Offsite & Onsite $446,000 $446,000 90% $44,600 Monumetation $9,000 $9,000 100% $0 Professional Fees, Construction 10% $105,572 $105,572 100% $0 Standard Contingency 10% $116,129 1 $116,129 100% $0 Totals $1,277,416 1 $1,277,416 — $104,672 WARRANTY SECURITY CITY COUNCIL MEETING: December 5, 2006 ITEM TITLE: Acceptance of Off -site Improvements Associated with Parcel Map Nos. 30903-1, -2, & -3, Washington Park Retail Center APPLICANT: Washington III, LTD COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Approval of Professional Services Agreements with Bureau Veritas, Engineering Resources of Southern California, Inc. (ERSC), Hall & Foreman, Inc., Willdan, NRO Engineering, RKA Consulting Group and RASA for On -Call Engineering Plan and/or Map Check Services RECOMMENDATION: I:Tt"01MV4"O f rilltA's BUSINESS SESSION: CONSENT CALENDAR: /6 STUDY SESSION: PUBLIC HEARING: Authorize the City Manager to execute Professional Services Agreements subject to the review and approval of the City Attorney with Bureau Veritas, Engineering Resources of Southern California, Inc. (ERSC), Hall & Foreman, Inc., Willdan, NRO Engineering, RKA Consulting Group and RASA for on -call engineering plan and/or map check services, as appropriate. FISCAL IMPLICATIONS: These services will be paid for on a time and material basis for plan check fees. These services are included in the Public Works operating budget. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: On September 19, 2006, City Council authorized staff to distribute a Request for Proposals (RFP) for on -call engineering plan/map check services. The City received eighteen (18) proposals in response to the RFP. The consultant selection committee reviewed all proposals and recommended that seven (7) firms be selected to ensure the shortest turn -around time possible on plan and map checks. Staff recommends approval of Professional Services Agreements for on -call engineering plan and/or map check services with: 11S Bureau Veritas for map and plan check services; ❖ Engineering Resources of Southern California, Inc. (ERSC) for plan check services; ❖ Hall & Foreman, Inc. for map and plan check services; 44- Willdan for plan check services; A. NRO Engineering for map and plan check services; ❖ RASA for map check services; 4• RKA Consulting Group for plan check services Attachments 1 through 7 are the Professional Services Agreements for on -call engineering plan and/or map check services with the consultants listed above. The new agreements specify a two (2) year term beginning January 1, 2007 and ending December 31, 2008. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: Authorize the City Manager to execute a Professional Services Agreements subject to the review and approval of the City Attorney with Bureau Veritas, Engineering Resources of Southern California, Inc. (ERSC), Hall & Foreman, Inc., Willdan, NRO Engineering, RKA Consulting Group and RASA for on -call engineering plan and/or map check services; or 2. Do not authorize the City Manager to execute a Professional Services Agreements subject to the review and approval of the City Attorneywith Bureau Veritas, Engineering Resources of Southern California, Inc. (ERSC), Hall & Foreman, Inc., Willdan, NRO Engineering, RKA Consulting Group and RASA for on -call engineering plan and/or map check services; or 3. Provide staff with alternative direction. Respectfully submitted, Gmothy R. J na n, P.E. Public Wor Dir ctor/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1 . Bureau Veritas Professional Services Agreement 2. Engineering Resources of Southern California, Inc. (ERSC) Professional Services Agreement 3. Hall & Foreman, Inc. Professional Services Agreement 4. Willdan Professional Services Agreement 5. NRO Engineering Professional Services Agreement 6. RASA Professional Services Agreement 7. RKA Consulting Group Professional Services Agreement 1 )� PROFESSIONAL SERVICES AGREEMENT Attachment 1 THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and Bureau Veritas ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to on -call engineering map and plan check services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section. 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not exceeding five percent (5%) of the Contract Sum may be approved by'the Contract Officer. Any greater increase must be approved by the City Council. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "C" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation & Performance"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "B" (the "Schedule of Compensation & Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Maieure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when 153 and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this agreement shall commence on January, 1, 2007 and terminate on December 31, 2008. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the. services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. 154 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. The amount of insurance required hereunder shall be $250,000 per individual; $500,000 per occurrence for Personal Injury/Property Damage Coverage. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectiy out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of "A" or better and a minimum financial size VII. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to City of proposed 155 cancellation. . The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant: shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit C without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise our of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. C. General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant or any other person or entity involved by, for with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. d. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. 1J0 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any I a~ reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right , but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project conternplated by this agreement to self - insure its obligations to City, If Consultant's existing coverage includes a deductible or self - insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. IDO 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 1;53 Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of i p California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized 1GI by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the: amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES: NONDISCRIMINATION. 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she: or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any imoney or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. 1JN To City: CITY OF LA QUINTA Attention: Thomas P. Genovese City Manager 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 To Consultant: BUREAU VERITAS Attention: Roy. F. Stephenson, P.E. Principal -in -Charge 42575 Melanie Place, Suite E Palm Desert, California 92211 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent -of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be: declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 11 1103 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA O.UINTA a California municipal corporation Thomas P. Genovese, City Manager Data ATTEST: Veronica J. Montecino, CMC, City Clerk APPROVED AS TO FORM: M. Katherine Jenson, City Attorney CONSULTANT: By: Name: Title: Date: 1 )4 Exhibit A Scope of Services Consultant shall provide on -call professional engineering map and plan check services to the City. 1 G5 Exhibit B Schedule of Compensation & Performance Consultants Project Schedule is attached and made a part of this agreement. Consultant shall complete services presented within the scope of work contained within Exhibit "A" in accordance with the attached project schedule. exiiie T- S Bureau Veritas North America Inc. Schedule of Charges 2006 Community Development Billing Title Hourly Billing Rates Building Official11 $155 Deputy Building Official $140 Senior Inspector $90 Inspector $85 Inspector/Plans Exam IV $130 Inspector/Plans Exam III $120 Inspector/Plans; Exam II $110 Inspector/Plans Exam I 1 $105 Permit Technician III $90 Permit Technician II $75 Permit Technician I $70 Program Management / Engineering Billing Title Hourly Billing Rates Sr. En ineer II $145 Sr. Engineer 1 $140 Engineer V $130 Engineer IV $125 Engineer III $115 Engineer II $105 Engineer 1 $90 Engineering Asst It $85 Engineering Asst 1 $75 S ecialist/Desi ner IV $140 Specialist/Designer III $130 S ecialist/Desi ner II $120 S ecialist/Desi ner 1 $110 Construction Management / Observation Billing Title Hourly Billing Rates Resident Engineer 11 $160 Resident En ineer 1 $145 Construction Manager Director $160 Construction Manager 1 $140 Construction Observer V $120 Construction Observer IV $115 Construction Observer III $90 Construction Observer II $80 Construction Observer 1 $75 Construction Technician $75 Special Services / Administration Billing Title Hourly Billing Rates Principal $230 Sr. Project Man a er $175 Project Manager $160 Technician IV $105 Technician III $90 Technician II $75 Technician 1 $70 Administrative M mt $100 SR. Admin Assistant $90 AA III / Contracts S Ist. $75 Admin Assistant II $70 AA I/Clerical II/Facilities $55 Clerical 1 $45 exloia r.8 Bureau Veritas North America Inc. �P� PE Schedule of Charges m N soon „zs Professional Reimbursement: The hourly billing rates include the cost of salaries of the Bureau Veritas employees, plus sick leave, vacation, holiday and other fringe benefits. The percentage added to salary costs includes indirect overhead costs and fee (profit). All employees classified as "non-exempt" by the U.S. Department of Labor will be compensated at 1-1/2 times salary, as per state and Federal wage and hour laws. Billing rates will be calculated accordingly for these overtime hours. Communication Fee: Project Labor Times 3.0% which includes telecommunications, faxes, standard U.S. Mail, mobile phones, and internet access and hardware. Direct Expenses: Reimbursement for direct expenses, as listed below, incurred in connection with the work, will be at cost plus fifteen percent for items such as: a. Maps, photographs, reproductions, printing, equipment rental' and special supplies related to the work. b. Consultants, soils engineers, surveyors, contractors, and other outside services. c. Rented vehicles, local public transportation and taxis, travel and subsistence. d. Specific telecommunications and delivery charges. e. Special fees, insurance, permits, and licenses applicable to the work. f. Outside computer processing, computation, and proprietary programs purchased for the work. Reimbursement for employee -owned vehicles used in connection with the work will be at the current IRS per mile rate. Other in-house charges for prints, reproductions and equipment use, etc. will be at standard company rates. The foregoing Schedule of Charges Is incorporated into the agreement for the services provided, effective January 3, 2006 through December 31, 2006, and will be adjusted thereafter. 1r3 exw6ir e Service Term, Schedule, & Cost Proposal Consultant Bureau Veritas shall provide services for a term of twenty-four (24) months beginning January 1, 2007 and terminating on December 31, 2008. OFFICE HOURS The Consultant shall maintain normal office hours between 8:00 a.m. and 5:00 p.m., Monday through Friday. The Consultant shall be available to meet with City Staff during normal working hours with 48 hours advance notice. SCHEDULE The Consultant shall adhere to the following plan check schedule Ma Submi 1 Mao Check Tum-Around (From Receipt, from City Staff) 1 Plan Check 15 Working Days 2"d Plan Check 10 Working Days 3`d Plan Check 5 Working Days Plan Submittal Plan Check Turn -Around (From Receipt from City Staff) 1 Plate n Check 15 Working Days 2"d Plan Check 10 Working Days 3rd Plan Check 5 Working Days For larger, more complex projects such as golf course developments, one (1) additional week for the 1 st and 2"d plan check shall be provided, if necessary to complete a thorough plan check. The consultant shall advise the Contract Officer, in writing, if additional time is needed. Normal plan check operations will be conducted as follows: 1st Submittal Upon completing the 1st review, the Consultant shall submit the "red lined" plans and a copy of the applicable Plan Check List to the City. The City will provide supplemental comment as necessary and forward "red lined" plans to the applicant. 2"d and Subseouent Submittals Upon receipt of the 2" round plan checksubmittal from the applicant and upon completing the 2°d review, the Consultant shall submit "red lined" plans and a copy of the applicable 2nd review Plan Check List to the City. The City will provide supplemental comment as applicable and forward 2"d review "red lined" plans to the applicant. The process of applicant correction, Consultant review followed by City review and "red lined" plan return to applicant shall continue until approvable plans are generated and a plan approval letter is submitted to the City by the Consultant. If necessary, the Consultant shall be available to meet with City staff and/orthe applicantto review the plan check comments. The Consultant will communicate directly with the applicant regarding plan check issues and clarifications. The City desires an average of no more than 3 plan check rounds before final plan approval. 1G3 ExHI&rr B The Consultant shall also maintain a plan check log as follows to track the plan check status. The plan check log shall include the following information: 1) Receipt Date 2) Transmittal Dates 3) Who is Receiving the Information 4) Status of Plan Check 5) Project Description and City Plan Check Number 6) Plan Check Fees The Consultant she# maintain all files for a period of three years. Copies of requested files will be furnished to the City upon request. Map Check Compensation Map check payment shall be made in full at the following "fixed fee" rates as specified for Tract Maps and Parcel Maps: Tract Maps$ 2,500 base fee plus $ so per lot (including both lettered and numbered lots) Parcel Maps $ 2,500 base fee plus $ 5o per parcel (including both lettered and numbered lots) Lot Line Adjustment $ i.000 base fee plus $ so fee per lime adjusted This rate shall be compensation for up to three (3) map checks. Payment for additional map checks after the third check shall be made at the rates listed in the Schedule of Billing Rates attached herewith forthe actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the map check (after the third check) shall be made in writing to the Contract Officer for approval as specified in Section 1.6 — Additional Services of the Agreement. Compensation for the first three map checks -shall be distributed at the following schedule: First Map Check 65% of the Total Map Check Fee Second Map Check 20% of the Total Map Check Fee Third Map Check 15% of the Total Map Check Fee The Consultant shall be compensated upon the completion of each map check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed map check. If the map check process is completed prior to the third map check, 100% of the map check fee will be paid upon completion of the final map check. Consultant may be requested to provide additional map checks after the third check. Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. Consultant also may be requested to provide supplemental map checking or general map consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of. ' Hourly rate depends upon project/staff assigned. Please refer to the attached Bureau Veritas Schedule of Charges. $ per hour— no overtime, travel time, expenses or other administrative chargeswill be allowable over and above the stated hourly rate schedule. Plan Check Compensation Plan check payment shall be made in full at a "fixed fee" rate of, $ goo per sheet (submittals with 1-5 sheets in quantity) $ goo per sheet (submittals with 6-15 sheets in quantity) $ 65o per sheet (submittals with 16 or more sheets in quantity) Sheet counts are based on the number of sheets submitted for plan check. Sheets may include title and detail sheets, street plans, storm drain plans, traffic plans, meandering sidewalk and parkway grading plans, rough & precise grading plansat 30,40 or50 feet per inch scale. Consultant receives no additional compensation for review of supporting documents including, but not limited to hydrology and hydraulic calculation reports, soils reports & engineer's cost estimates, conditions of approval, tentative tract and parcel maps. Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. This rate shall be compensation for up to three (3) plan checks. Supplemental payment for additional plan checks after the third check or for special engineering reports including IAOMP Dust Control Plans, Storm Water Pollution Prevention Plans and Traffic Reports, shall be in made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the plan check (after the third plan check) or for special reports shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation forthe first three plan checks shall be distributed at the following schedule: First Plan Check 65% of the Total Plan Check Fee Second Plan Check 20%of the Total Plan Check Fee Third Plan Check 15% of the Total Plan Check Fee The Consultant shall be compensated upon the completion of each plan check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall bei compensated based on the last completed plan check. If the plan check process is completed prior to the third plan check,100% of the plan check fee will be paid upon completion of the final plan check. ��1 �XH+k�i i B The Consultant shall separately invoice per plan and per plan check. No exceptionswill be allowed to the payment schedule. Consultant also may be requested to provide general civil consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: Hourly rate depends upon project/staff assigned. Please refer to the attached Bureau Veritas Schedule of Charges. $ per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Prevailing Wage -In accordance wfth Section 1770 of the Labor Code, the City has ascertained and does hereby specify that the prevailing wage rates shall be those provided in Article 1110-20.0, WAGE RATES. The said rates shall include all employer paymentsthatare requited by Section 1773.1 of the Labor Code. The City will fumish to the Contractor, upon request, a copy of such prevailing rates. It shall be the duty of the Contractor to post a copy of such prevailing wages at the job site. CONSULTANT: By: Bureau Veritas Name: Daniel A. York, PE, PLS Title: Development Review Manager Date: October 16, 2006 Exhibit C Special Requirements None. 173 PROFESSIONAL SERVICES AGREEMENT Attachment 2 THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and Engineering Resources of Southern California, Inc. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to on -call engineering plan check services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to 1 ., w 4 perform any additional services without compensation. Any addition in compensation not exceeding five percent (5%) of the Contract Sum may be approved by the Contract Officer. Any greater increase must be approved by the City Council. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "C" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation & Performance"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "B" (the "Schedule of Compensation & Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of I1J delay, and extend the time for performing the services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this agreement shall commence on January, 1, 2007 and terminate on December 31, 2008. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. f0 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to :cervices to be performed hereunder which are reasonably available to Consultant only from or through action by City. 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. The amount of insurance required hereunder shall be $250,000 per individual; $500,000 per occurrence for Personal Injury/Property Damage Coverage. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of "A" or better and a minimum financial size VII. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to City of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit C without the written consent of the Consultant. b. Indemnification for Other Than Professional LiabiRy. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise our of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. C. General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant or any other person or entity involved by, for with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. d. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the 173 liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against: City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including i any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 1"1J 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right , but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self - insure its obligations to City, If Consultant's existing coverage includes a deductible or self - insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 191. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT, 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of ISti California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized 1S3 by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she: or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. 1;4 To City: CITY OF LA QUINTA Attention: Thomas P. Genovese City Manager 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 To Consultant: Engineering Resources of SC, Inc. Attention: J. Matthew Brudin, P.E. President 81955 Highway 111, Suite 210 Indio, California 92201 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which "are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 1JJ 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA a California municipal corporation Thomas P. Genovese, City Manager Date ATTEST: Veronica J. Montecino, CIVIC, City Clerk APPROVED AS TO FORM: M. Katherine Jenson, City Attorney CONSULTANT: By: Name: Title: Date: 150 Exhibit A Scope of Services Consultant shall provide on -call professional engineering plan check services to the City. 1;7 Exhibit B Schedule of Compensation & Performance Consultants Project Schedule is attached and made a part of this agreement. Consultant shall co mplete services presented within the scope of work contained within Exhibit "A" in accordance with the attached project schedule. 13 iNGINEERING Exwierr 8 -RESOURCES OF SOUTHERN CIWFORNIO, INC. October 17, 2006 Tim Jonasson Director of Public Works/City Engineer CITY OF LA QUINTA DEPARTMENT OF PUBLIC WORKS/ENGINEERING P.O. Box 1504 78-495 Calle Tampico La Quinta, CA 92247-1504 ON -CALL MAP AND PLAN CHECK SERVICES FEE LETTER Dear Mr. Jonasson: Engineering Resources of Southern California, Inc., (ERSQ appreciates the opportunity to provide our fee proposal to furnish consulting services for the City's Engineering Map/Plan Check Services. We are currently working with city clients who compensate their consultants for plan check and map check work on a "percent of the fee collected" basis, typically around eighty (80) percent. This leaves the remainder for city administrative work. However, some of our clients prefer to compensate strictly on a time and materials basis. We have no problem working either way with the city. Additionally, vie will make sure to provide backup documentation as requested for any billing submitted showing an accurate accounting of our time as expended on each plan check assignment for your monitoring purposes. Since we are local, we do not charge for travel to pick up and deliver plans to the city. Additionally, no time will be charged for Mr. Brudin's supervision of me. We submit this fee letter, and attached exhibit A along with our published rate schedule as part of our proposal for all on -call engineering map/plan check services. The attached rate schedule for ERSC shows billing rates for the various job classifications and is our normal billing method. This schedule is adjusted annually on January 1 � to account for inflation. The rates shown include amounts for overhead, profit and reproduction charges. However, for this assignment, we recognize that for this project, it is anticipated that a good portion of the work will be performed on a percent of the fee collected by the City of La Quinta for the specified work. There will be no mileage costs for pickup and delivery of any plan check assignments. Plan check of grading and onsite improvement plans, and tract and parcel maps will be charged at 80 percent of the fee collected by the city based upon the City's adopted fee schedule. 1P9 81955 HIGHWAY 111, SUITE 210, INDIO CALIFORNIA 92201 PHONE (760) 342-3019 - FAx (760) 342-5489 Mr. Tim Jonasson Fee Letter October 17, 2006 Page 2 The following hourly plan check rates shall apply for all other plan check work for the following individuals: Mr. Joanne Singer, P.E. $120.00 Mr. Matt Brudin, P.E. $120.00 Mr.Mo Ahmadi, P.E. $110.00 Mr. Kris Winchak, L.S. $100.00 Mr. Robert Righetti $110.00 Mr. David Merrell, P.E. $110.00 Mr. Mike Stearns, P.E. $120.00 Mr. Michael Lenz $75.00 Mr. Joe Baldino $95.00 Mr. Damien Boettcher $90.00 Other plan check technicians will be billed per their classification as shown on the attached rate schedule. However, no billing rate will exceed $120.00 per unless otherwise negotiated with the City of La Quinta. ERSC makes a firm commitment to excellence in providing the City with complete plan checking services. We look forward to the opportunity to further discuss the qualifications of ERSC and emphasize our eagerness to serve the City in the immediate future. Sincerely: Engineering Resources of Southern California, Inc- J. Matthew din, P.E. President i9O Exhibit A — Service Term, Schedule & Cost Proposal Consultant G—Ai SCE shall provide services for a term of twenty-four (24) months beginning January 1, 2007 and terminating on December 31, 2008. OFFICE HOURS The Consultant shall maintain normal office hours between 8:00 a.m. and 5:00 p.m., Monday through Friday. The Consultant shall be available to meet with City Staff during normal working hours with 48 hours advance notice. SCHEDULE The Consultant shall adhere to the following plan check schedule: Map Submittal Map Check Turn -Around (1-rom KeceipT Trom Uiw Jldfl I 1s Plate n Check 1Q Working Days 2nd Plan Check Working Days 3'd Plan Check <' Working Days Plan Submittal Plan Check Turn -Around (From Receipt from City Staff) 1s Pla— n Check 1� Working Days 2A Plan Check 57" Working Days P Plan Check 0 Working Days For larger, more complex projects such as golf course developments, one (1) additional week for the 1st and 2"d plan check shall be provided, if necessary to complete a thorough plan check. The consultant shall advise the Contract Officer, in writing, if additional time is needed. Normal plan check operations will be conducted as follows: 1st Submittal Upon completing the 1" review, the Consultant shall submit the 'red lined" plans and a copy of the applicable Plan Check List to the City. The City will provide supplemental comment as necessary and forward "red lined" plans to the applicant. 2"d and Subsequent Submittals Upon receipt of the 2" round plan check submittal from the applicant and upon completing the 2"d review, the Consultant shall submit "red lined" plans and a copy of the applicable 2nd review Plan Check List to the City. The City will provide supplemental comment as applicable and forward 2"d review `red lined" plans to the applicant. The process of applicant correction, Consultant review followed by City review and `red lined" plan return to applicant shall continue until approvable plans are generated and a plan approval letter is submitted to the City by the Consultant. If necessary, the Consultant shall be available to meet with City staff and/or the applicant to review the plan check comments. The Consultant will communicate directly with the applicant regarding plan check issues and clarifications. The City desires an average of no more than 3 plan check rounds before final plan approval. The Consultant shall also maintain a plan check log as follows to track the plan check status. The plan check log shall include the following information: 1) Receipt Date 2) Transmittal Dates 3) Who is Receiving the Information 4) Status of Plan Check 5) Project Description and City Plan Check Number 6) Plan Check Fees The Consultant shall maintain all files fora period of three years. Copies of requested files will be furnished to the City upon request. Map Check Compensation Map check payment shall be made in full at the following "fixed fee" rates as specified for Tract Maps and Parcel Maps: Tract Maps $ ISM base fee plus 5 &Oper lot (including both lettered and numbered lots) Parcel Maps $ Zez-1:(A0_ base fee plus S_gMper parcel (including both lettered and numbered lots) Lot Line Adjustment $ SQ base fee plus SZsofee per line adjusted This rate shall be compensation for up to three (3) map checks. Payment for additional map checks after the third check shall be made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the map check (after the third check) shall be made in writing to the Contract Officer for approval as specified in Section 1.6 — Additional Services of the Agreement. Compensation for the first three map checks shall be distributed at the following schedule: First Map Check 65% of the Total Map Check Fee Second Map Check 20% of the Total Map Check Fee Third Map Check 15% of the Total Map Check Fee The Consultant shall be compensated upon the completion of each map check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed map check. If the map check process is completed prior to the third map check, 100% of the map check fee will be paid upon completion of the final map check. Consultant may be requested to provide additional map checks after the third check. Consultant receives no additional compensation for delivery or postage fees necessary to 192 transmit or receive plans from City. Consultant also may be requested to provide supplemental map checking or general map consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $/oo per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Plan Check Compensation Plan check payment shall be made in full at a "fixed fee" rate of: $ jSjQQper sheet (submittals with 1-5 sheets in quantity) $ per sheet (submittals with 6-15 sheets in quantity) $ per sheet (submittals with 16 or more sheets in quantity) Sheet counts are based on the number of sheets submitted for plan check. Sheets may include title and detail sheets, street plans, storm drain plans, traffic plans, meandering sidewalk and parkway grading plans, rough & precise grading plans at 30, 40 or 50 feet per inch scale. Consultant receives no additional compensation for review of supporting documents including, but not limited to hydrology and hydraulic calculation reports, soils reports & engineer's cost estimates, conditions of approval, tentative tract and parcel maps. Consultant receives no additional compensation for delivery orlpostage fees necessary to transmit or receive plans from City. This rate shall be compensation for up to three (3) plan checks. Supplemental payment for additional plan checks after the third check or for special engineering reports including LAQMP Dust Control Plans, Storm Water Pollution Prevention Plans and Traffic Reports, shall be in made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the plan check (after the third plan check) or for special reports shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three plan checks shall be distributed at the following schedule: First Plan Check 65% of the Total Plan Check Fee Second Plan Check 20% of the Total Plan Check Fee Third Plan Check 15% of the Total Plan Check Fee The Consultant shall be compensated upon the completion of each plan check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed plan check. 11 the plan check process is completed prior to the third plan check, 100% of the plan check fee will be paid upon completion of the final plan check. 1 The Consultant shall separately invoice per plan and per plan check. No exceptions will be allowed to the payment schedule. Consultant also may be requested to provide general civil consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ /—leo per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Prevailing Wage - In accordance with Section 1770 of the Labor Code, the City has ascertained and does hereby specify that the prevailing wage rates shall be those provided in Article 1110- 20.0, WAGE RATES. The said rates shall include all employer payments that are required by Section 1773.1 of the Labor Code. The City will furnish to the Contractor, upon request, a copy of such prevailing rates. It shall be the duty of the Contractor to post a copy of such prevailing wages at the job site. CONSULTANT. - By: Date:--140--i (64 Name: KMTi 39-01> tm Title`s 2S� 1 c> ��'F -RiNNNEERING ESOURCES OF SOWN UMBBBL INS. SCHEDULE OF HOURLY BILLING RATES (EFFECTIVE JANUARY 1, 2006) PRINCIPAL/PRESIDENT .............. $ 1 75.00 PRINCIPAL PLANNER ............ $ 1 25.00 PRINCIPAL/VICE PRESIDENT ......... 165.00 SENIOR PLANNER .............. 105.00 SENIOR PRINCIPAL ENGINEER ......... 160.00 PRINCIPAL ENGINEER ................ 135.00 ENGINEER V ........................ 120.00 ADMINISTRATIVE SERVS. MANAGER $ 75.00 ENGINEER IV ........................ 105.00 EXECUTIVE SECRETARY ......... 60.00 ENGINEER III ........................ 95.00 SECRETARY ................... 50.00 ENGINEER II ........................ 80.00 ENGINEER I ......................... 70.00 SENIOR ENGINEERING TECHNICIAN .... $ 1 05.00 ENGINEERING AIDE II ............ $ 40.00 ENGINEERING TECHNICIAN 11 .......... 85.00 ENGINEERING AIDE I ............ 30.00 ENGINEERING TECHNICIAN I .......... 70.00 ENGINEERING TECHNICIAN ........... 50.00 CONSTRUCTION MANAGER ............................................ 2.6 X DIRECT SALARY RESIDENT ENGINEER ................................................. 2.6 X DIRECT SALARY SENIOR INSPECTOR .................................................. 2.6 X DIRECT SALARY 2.6 X DIRECT SALARY INSPECTOR.......................................................... $0.56/MILE MILEAGE.................................................................... COST + 15% DIRECTCOST............................................................... TESTIMONY UNDER OATH WILL BE BILLED AT $220 PER HOUR WITH A FOUR (4) HOUR MINIMUM I` Herd Drnc\FORMSV:RSC &hduh of Ilourly RJlmg Recev2006 wpd rcwcd M..h 29. 2006 ID:\ON 95 Exhibit C Special Requirements None. 1Ju PROFESSIONAL SERVICES AGREEMENT Attachment 3 THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and Hall & Foreman, Inc. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to on -call engineering map and plan check services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses Permits Fees and Assessments. Excerpt as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not j�� exceeding five percent (5%) of the Contract Sum may be approved by the Contract Officer. Any greater increase must be approved by the City Council. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "C" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements; shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation & Performance"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "B" (the "Schedule of Compensation & Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Maieure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when 193 and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this agreement shall commence on January, 1, 2007 and terminate on December 31, 2008. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. 1013 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. The amount of insurance required hereunder shall be $250,000 per individual; $500,000 per occurrence for Personal Injury/Property Damage Coverage. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall !be required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of "A" or better and a minimum financial size VII. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to City of proposed ^00 cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit C without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise our of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. C. General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant or any other person or entity involved by, for oath or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. d. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. n, �1 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has riot been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any 202' reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right , but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self - insure its obligations to City, If Consultant's existing coverage includes a deductible or self - insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 3 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records al all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of �J5 California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may stake such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized ..UU by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she: or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent,approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. J� To City: CITY OF LA QUINTA Attention: Thomas P. Genovese City Manager 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 To Consultant: Hall & Foreman, Inc. Attention, Jon E. Bourgeois, P.E. PresidentlPrincipal 9130 Anaheim Place, Suite 120 Rancho Cucamonga, California 91730 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA a California municipal corporation Thomas P. Genovese, City Manager Date ATTEST: Veronica J. Montecino, CIVIC, City Clerk APPROVED AS TO FORM: M. Katherine Jenson, City Attorney CONSULTANT: By: _ Name: Title: Date: r 0 9 Exhibit A Scope of Services Consultant shall provide on -call professional engineering map and plan check services to the City. :1J Exhibit B Schedule of Compensation & Performance Consultants Project Schedule is attached and made: a part of this agreement. Consultant shall complete services presented within the scope of work contained within Exhibit "A" in accordance with the attached project schedule. - Service Term, Schedule & Cost Proposal Consultant Hall & Foreman, Inc, shall provide services for a term of twenty-four (24) months beginning January 1, 2007 and terminating on December 31, 2008. OFFICE HOURS The'Consultant small maintain normal office hours between 8:00 a.m. and 5:00 p.m., Monday through Friday. The Consultant shall be available to meet with City Staff during normal working hours with 48 hours advance notice. SCHEDULE The Consultant shall adhere to the following plan check schedule: Map Submittal Map Check Turn -Around (From Receipt from City Staff) 1s Plate n Check j_o__ Working Days 2"d Plan Check 7_ Working Days 3rd Plan Check .7_Working Days Plan Submittal Plan Check Turn -Around (From Recut from City Staff) 1s Planck 10_ Working Days 2"d Plan Check ()_ Working Days 3`d Plan Check 7_ Working Days For larger, more complex projects such as golf course developments, one (1) additional week for the 1 stand 2"d plan check shall be provided, if necessary to complete a thorough plan check. The consultant shall advise the Contract Officer, in writing, if additional time is needed. Normal plan check operations will be conducted as follows: 1st Submittal Upon completing the 1s' review, the Consultant shall submit the "red lined" plans and a copy of the applicable Plan Check List to the City. The City will provide supplemental comment as necessary and forward "red lined" plans to the applicant. 2"d and Subsequent Submittals Upon receipt of the 2na round plan check submittal from the applicant and upon completing the 2"d review, the Consultant shall submit "red lined" plans and a copy of the applicable 2"d review Plan Check List to the City. The City will provide supplemental comment as applicable and forward 2"d review "red lined" plans to the applicant. The process of applicant correction, Consultant review followed by City review and "red lined" plan return to applicant shall continue until approvable plans are generated and a plan approval letter is submitted to the City by the Consultant. If necessary, the Consultant shall be available to meet with City staff and/or the applicant to review the plan check comments. The Consultant will communicate directly with the applicant regarding plan check issues and clarifications. The City desires an average of no more than 3 plan check rounds before final plan approval. H /r The Consultant shall also maintain a plan check log as follows to track the plan check status. The plan check log shall include the following information: 1) Receipt Date 2) Transmittal Dates 3) Who is Receiving the Information 4) Status of Plan Check 5) Project Description and City Plan Check Number 6) Plan Check Fees The Consultant shall maintain all files for a period of three years. Copies of requested files will be furnished to the City upon request. Map Check Compensation Map check payment shall be made in full at the following "fixed fee" rates as specified for Tract Maps and Parcel Maps: Tract Maps $ 850— base fee plus $_,p_ per lot (including both lettered and numbered lots) Parcel Maps $ 500_ base fee plus $7_ per parcel (including both lettered and numbered lots) Lot Line Adjustment $ 200 base fee plus $ r0_ fee per line adjusted This rate shall be compensation for up to three (3) map checks. Payment for additional map checks after the third check shall be made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the map check (after the third check) shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three map checks shall be distributed at the following schedule: First Map Check 65% of the Total Map Check Fee Second Map Check 20% of the Total Map Check Fee Third Map Check 15% of the Total Map Check Fee The Consultant shall be compensated upon the completion of each map check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed map check. If the map check process is completed prior to the third map check, 100% of the map check fee will be paid upon completion of the final map check. Consultant may be requested to provide additional map checks after the third check. Consultant receives no additional compensation for delivery or postage fees necessary to 13 transmit or receive plans from City. 6 Consultant also may be requested to provide supplemental map checking or general map consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ 135 per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Plan Check Compensation Plan check payment shall be made in full at a "fixed fee" rate of: $ 550 per sheet (submittals with 1-5 sheets in quantity) $ 550 — per sheet (submittals with 6-15 sheets in quantity) $ 50o per sheet (submittals with 16 or more sheets in quantity) Sheet counts are based on the number of sheets submitted for plan check. Sheets may include title and detail sheets, street plans, storm drain plains, traffic plans, meandering sidewalk and parkway grading plans, rough & precise grading plans at 30,40 or 50 feet per inch scale. Consultant receives no additional compensation for review of supporting documents including, but not limited to hydrology and hydraulic calculation reports, soils reports & engineer's cost estimates, conditions of approval, tentative tract and parcel maps. Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. This rate shall be compensation for up to three (3) plan checks. Supplemental paymentfor additional plan checks after the third check or for special engineering reports including LAQMP Dust Control Plans, Storm Water Pollution Prevention Plans and Traffic Reports, shall be in made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the plan check (after the third plan check) or for special reports shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three plan checks shall be distributed at the following schedule: First Plan Check 65% of the Total Plan Check Fee Second Plan Check 20% of the Total Plan Check Fee Third Plan Check 15% of the Total Plan Check Fee The Consultant shall be compensated upon the completion of each plan check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed plan check. If the plan check process is completed prior to the third plan check, 100% of the plan check fee will be paid upon 14 completion of the final plan check. ` The Consultant shall separately invoice per plan and per plan check. No exceptions will be allowed to the payment schedule. Consultant also may be requested to provide general civil consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $_ per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Prevailing Wage - In accordance with Section 1770 of the Labor Code, the City has ascertained and does hereby specify that the prevailing wage rates shall be those provided in Article 1110- 20.0, WAGE RATES. The said rates shall include all employer payments that are required by Section 1773.1 of the Labor Code. The City will furnish to the Contractor, upon request, a copy of such prevailing rates. It shall be the duty of the Contractor to post a copy of such prevailing wages at the job site. CONSULTANT: By: rr Name: Jon E. Bourgeoi _,� Date:_ 10/17106 ��� ; all & Forernanr, Inc. SCHEDULE OF HOURLY BILLING RATES Effective November 1, 2005 OFFICE: Principal $195.00/Hour Sr. Project Director/Vice President $180.00/Hour Project Director $165.00/Hour Project Manager/Mapping Manager $155.00/Hour .Senior Engineer $145.00/Hour Project Engineer/Project Surveyor $135.00/Hour Senior Designer $130.00/Hour Staff Engineer $115.00/Hour Designer/Assistant Project Manager $105.00/Hour Drafter/CADD Technician $ 95.00/Hour Project Assistant/Expeditor $ 80.00/Hour Assistant Engineer $ 75.00/Hour Principal Planner $135.00/Hour Planner $100.00/Hour Senior Analyst $ 95.00/Hour Sr. Inspector/Resident Engineer $115.00/Hour Inspector $105.00/Hour Expert Witness/Litigation Consultation $300.00/Hour SURVEY: Survey Manager $155.00/Hour Survey Analyst $105.00/Hour 3-Person Survey Crew $245.00/Hour 2-Person Survey Crew $200.00/Hour 1-Person Survey Crew $150.00/Hour 3-Person Survey Crew with GPS $270.00/Hour 2-Person Survey Crew with GPS $225.00/Hour Note 1: Client shall pay the cost, plus 15%, for any applicable governmental fees, title company charges, well monuments, outside vendor reproduction costs, in-house reproduction cost, plotting costs, mileage, and delivery or messenger services incurred on Client's behalf. If requested, HFI will provide a computer printout, which details these costs. HFI does not typically provide any additional back up for these generally nominal expenses as part of our fee. Note 2: In the event Consultant's fee schedule changes due to any increase of costs such as the granting of wage increases and/or other employee benefits to field or office employees due to the terms of any labor agreement, or increase in the cost of living, during the lifetime of this agreement, a percentage increase shall be applied to all remaining fees and charges to reflect the increased costs. Note 3: The fee stated herein does not include any sales or use tax. In the event that a sales and/or use tax is imposed by local, state, or federal authority, upon the services rendered hereunder, such sales and/or use tax shall be in addition to said fee herein, and shall be the full responsibility of the Client. tifo Exhibit C Special Requirements None. 217 PROFESSIONAL SERVICES AGREEMENT Attachment 4 THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and Willdan ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to on -call engineering plan check services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits, Fees and Assessments. Excerpt as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not exceeding five percent (5%) of the Contract Sum may be approved by the Contract Officer. Any greater increase must be approved by the City Council. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "C" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "i (the "Schedule of Compensation & Performance"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "i (the "Schedule of Compensation & Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Maieure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for 1he period of the forced delay when� and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this agreement shall commence on January, 1, 2007 and terminate on December 31, 2008. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to :services to be performed hereunder which are reasonably available to Consultant only from or through action by City. � �� 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. The amount of insurance required hereunder shall be $250,000 per individual; $500,000 per occurrence for Personal Injury/Property Damage Coverage. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of "A" or better and a minimum financial size VII. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to City of proposed 2 cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit C without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise our of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. C. General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant or any other person or entity involved by, for with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. d. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right , but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self - insure its obligations to City, If Consultant's existing coverage includes a deductible or self - insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. �n ..; 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actuai or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 225 Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the: amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES- NONDISCRIMINATION, 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. #� C) 3 r..:. To City: CITY OF LA QUINTA Attention: Thomas P. Genovese City Manager 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 To Consultant: Willdan Attention: Ronald L. Espalin, P.E. Sr. Vice President 650 Hospitality Lane, Suite 400 San Bernadino, California 92408-3317 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA a California municipal corporation Thomas P. Genovese, City Manager Date ATTEST: Veronica J. Montecino, CIVIC, City Clerk APPROVED AS TO FORM: M. Katherine Jenson, City Attorney CONSULTANT: By: Name: Title: Date: Exhibit A Scope of Services Consultant shall provide on -call professional engineering plan check services to the City. Exhibit B Schedule of Compensation & Performance Consultants Project Schedule is attached and made a part of this agreement. Consultant shall complete services presented within the scope of work contained within Exhibit "A" in accordance with the attached project schedule. n � �. s;. 41. Service Term, Schedule & Cost Proposal Consultant V/ i IIcAo 1 shall provide services for a term of twenty-four (24) months beginning January 1, 2007 and terminating on December 31, 2008. OFFICE HOURS The Consultant shall maintain normal office hours between 8:00 a.m. and 5:00 p.m., Monday through Friday. The Consultant shall be available to meet with City Staff during normal working hours with 48 hours advance notice. SCHEDULE The Consultant shall adhere to the following plan check schedule: Map Submittal Map Check Turn -Around (From Receipt from City Staff) 15 Plate n Check / { —_ Working Days 2nd Plan Check N/r1 Working Days 3rd Plan Check — Working Days Plan Submittal Plan Check Turn -Around (From Receipt from City Staff) 15 Plan n Check 15 Working Days 2nd Plan Check 10 Working Days 3rd Plan Check S Working Days For larger, more complex projects such as golf course developments, one (1) additional week for the 1 s' and 2nd plan check shall be provided, if necessary to complete a thorough plan check. The consultant shall advise the Contract Officer, in writing, if additional time is needed. Normal plan check operations will be conducted as follows: 15' Submittal Upon completing the 1s' review, the Consultant shall submit the 'red lined" plans and a copy of the applicable Plan Check List to the City. The City will provide supplemental comment as necessary and forward "red lined" plans to the applicant. 2nd and Subsequent Submittals Upon receipt of the 2na round plan check submittal from the applicant and upon completing the 2nd review, the Consultant shall submit red lined" plans and a copy of the applicable 2nd review Plan Check List to the City. The City will provide supplemental comment as applicable and forward 2nd review "red lined" plans to the applicant. The process of applicant correction, Consultant review followed by City review and "red lined" plan return to applicant shall continue until approvable plans are generated and a plan approval letter is submitted to the City by the Consultant. If necessary, the Consultant shall be available to meet with City staff and/or the applicant to review the plan check comments. The Consultant will communicate directly with the applicant regarding plan check issues and clarifications. The City desires an average of no more than 3 plan check rounds before final plan approval. ��3 The Consultant shall also maintain a plan check log as follows to track the plan check status. The plan check log shall include the following information: 1) Receipt Date 2) Transmittal Dates 3) Who is Receiving the Information 4) Status of Plan Check 5) Project Description and City Plan Check Number 6) Plan Check Fees The Consultant shall maintain all flies for a period of three years. Copies of requested files will be furnished to the City upon request. Map Check Compensation Map check payment shall be made in full at the following "fixed fee" rates as specified for Tract Maps and Parcel Maps: Tract Maps $A4base fee plus $_ numbered lots) Parcel Maps $ /� base fee plus $ num eyed lots) Lot Line Adjustment $* base fee plus $ per lot (including both lettered and per parcel (including both lettered and fee per line adjusted This rate shall be compensation for up to three (3) map checks. Payment for additional map checks after the third check shall be made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the map check (after the third check) shall be made in writing to the Contract Officer for approval as specified in Section 1.6 — Additional Services of the Agreement. Compensation for the first three map checks shall be distributed at the following schedule: First Map Check 65% of the Total Map Check Fee Second Map Check 20% of the Total Map Check Fee Third Map Check 15% of the Total Map Check Fee The Consultant shall be compensated upon the completion of each map check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed map check. If the map check process is completed prior to the third map check, 100% of the map check fee will be paid upon completion of the final map check. Consultant may be requested to provide additional map checks after the third check. Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. Consultant also may be requested to provide supplemental map checking or general map consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ / 20 per hour — no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Plan Check Compensation Plan check payment shall be made in full at a "fixed fee" rate of: $ 700 per sheet (submittals with 1-5 sheets in quantity) $ LSD per sheet (submittals with 6-15 sheets in quantity) $ k2a per sheet (submittals with 16 or more sheets in quantity) Sheet counts are based on the number of sheets submitted for plan check. Sheets may include title and detail sheets, street plans, storm drain plans, traffic plans, meandering sidewalk and parkway grading plans, rough & precise grading plans at 30,40 or 50 feet per inch scale. Consultant receives no additional compensation for review of supporting documents including, but not limited to hydrology and hydraulic calculation reports, soils reports & engineer's cost estimates, conditions of approval, tentative tract and parcel maps. Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. This rate shall be compensation for up to three (3) plan checks: Supplemental payment for additional plan checks after the third check or for special engineering reports including LAQMP Dust Control Plans, Storm Water Pollution Prevention Plans and Traffic Reports, shall be in made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the plan check (after the third plan cheek) or for special reports shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three plan checks shall be distributed at the following schedule: First Plan Check 65% of the Total Plan Check Fee Second Plan Check 20% of the Total Plan Check Fee Third Plan Check 15% of the Total Plan Check Fee The Consultant shall be compensated upon the completion of each plan check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed plan check. 11` the plan check process is 1�5 completed prior to the third plan check, 100% of the plan check fee will be paid upon completion of the final plan check. The Consultant shall separately invoice per plan and per plan check. No exceptions will be allowed to the payment schedule. Consultant also may be requested to provide general civil consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ / ZO per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Prevailing Wage - In accordance with Section 1770 of the Labor Code, the City has ascertained and does hereby specify that the prevailing wage rates shall be those provided in Article 1 1 10- 20.0, WAGE RATES. The said rates shall include all employer payments that are required by Section 1773.1 of the Labor Code. The City will furnish to the Contractor, upon request, a copy of such prevailing rates. It shall be the duty of the Contractor to post a copy of such prevailing wages at the job site. CONSULTANT: Date: OGibbt%( RG ZOCCn Name: 'Kono ,A L . Esp0.l,f� Title: Sf \,Ce- �(e—S18e4l� i.JU Exhibit C Special Requirements None. n,� PROFESSIONAL SERVICES AGREEMENT Attachment 5 THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and NRO ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to on -call engineering map and plan check services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereon to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not pp L ti J v exceeding five percent (5%) of the Contract Sum may be approved by the Contract Officer. Any greater increase must be approved by the City Council. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "C" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (tie "Schedule of Compensation & Performance"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "B" (the "Schedule of Compensation & Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Maieure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay whence and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this agreement shall commence on January, 1, 2007 and terminate on December 31, 2008. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. 1 � A 0 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. The amount of insurance required hereunder shall be $250,000 per individual; $500,000 per occurrence for Personal Injury/Property Damage Coverage. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to properly arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall The required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of "A" or better and a minimum financial size VII. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to City of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant: shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit C without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by .law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise our of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. c. eneral Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant or any other person or entity involved by, for with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. d. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City.^ 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right , but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. S. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subcontractors, .and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self - insure its obligations to City, If Consultant's existing coverage includes a deductible or self - insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. n �� 13. For purposes of applying insurance coverage only, 'this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as'to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or rennedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class maid to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. 448 To City: CITY OF LA QUINTA Attention: Thomas P. Genovese City Manager 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 To Consultant: NRO Attention: Noel Owlsley, P.E. Owner 41-945 Boardwalk, Suite H Palm Desert, California 92211 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be: declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 4.43 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA a California municipal corporation Thomas P. Genovese, City Manager ATTEST: Veronica J. Montecino, CMC, City Clerk APPROVED AS TO FORM: M. Katherine Jenson, City Attorney CONSULTANT: By: Name: Title: Date: Date Exhibit A Scope of Services Consultant shall provide on -call professional engineering map and plan check services to the City. Exhibit B Schedule of Compensation & Performance Consultants Project Schedule is attached and made a part of this agreement. Consultant shall complete services presented within the scope of work contained within Exhibit "A" in accordance with the attached project schedule. %xrFtl7 Service Term, Schedule & Cost Proposal Consultant NRO ENGINEERING shall provide services for a term of twenty-four (24) months beginning January 1, 2007 and terminating on December 31, 2008. OFFICE HOURS The Consultant shall maintain normal office hours between 8:00 a.m. and 5:00 p.m., Monday through Friday. The Consultant shall be available to meet with City Staff during normal working hours with 48 hours advance notice. SCHEDULE The Consultant shall adhere to the following plan check schedule: Map Submittal Map Check Turn -Around (From Receipt from City Staff) 15 Pla�eck 10 Working Days "d 2Plan Check _� Working Days 3rd Plan Check _ 5 Working Days Plan Submittal Plan Check Turn -Around (From Receipt from City Staff) 15 Plate n Check 1 o Working Days 2rd Plan Check _ 10 Working Days 3rd Plan Check 5 Working Days For larger, more complex projects such as golf course developments, one (1) additional week for the 1st and 2"d plan check shall be provided, if necessary to complete a thorough plan check. The consultant shall advise the Contract Officer, in writing, if additional time is needed. Normal plan check operations will be conducted as follows: 1st Submittal Upon completing the 1st review, the Consultant shall submit the 'red lined" plans and a copy of the applicable Plan Check List to the City. The City will provide supplemental comment as necessary and forward "red lined" plans to the applicant. 2"d and Subsequent Submittals Upon receipt of the 2" round plan check submittal from the applicant and upon completing the 2"d review, the Consultant shall submit "red lined" plans and a copy of the applicable 2"d review Plan Check List to the City. The City will provide supplemental comment as applicable and forward 2"d review 'red lined" plans to the applicant. The process of applicant correction, Consultant review followed by City review and 'red lined" plan return to applicant shall continue until approvable plans are generated and a plan approval letter is submitted to the City by the Consultant. If necessary, the Consultant shall be available to meet with City staff and/or the applicant to review the plan check comments. The Consultant will communicate directly with the applicant regarding plan check issues and clarifications. The City desires an average of no more than 3 plan check rounds before final plan approval. j The Consultant shall also maintain a plan check log as follows to track the plan check status. The plan check log shall include the following information: 1) Receipt Date 2) Transmittal Dates 3) Who is Receiving the Information 4) Status of Plan Check 5) Project Description and City Plan Check Number 6) Plan Check Fees The Consultant shall maintain all files for a period of three years. Copies of requested files will be furnished to the City upon request. Map Check Compensation Map check payment shall be made in full at the following "fixed fee" rates as specified for Tract Maps and Parcel Maps: Tract Maps $ 525 base fee plus $ 0 per lot (including both lettered and numbered lots) Parcel Maps $ Sys base fee plus $_g_ per parcel (including both lettered and numbered lots) Lot Line Adjustment $ 300 base fee plus $ g_ fee per line adjusted This rate shall be compensation for up to three (3) map checks. Payment for additional map checks after the third check shall be made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours Submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the map check (after the third check) shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three map checks shall be distributed at the following schedule: First Map Check 65% of the Total Map Check Fee; Second Map Check 20% of the Total Map Check Fee; Third Map Check 15% of the Total Map Check Fee: The Consultant shall be compensated upon the completion of each map check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed map check. If the map check process is completed prior to the third map check, 1000% of the map check fee will be paid upon completion of the final map check. Consultant may be requested to provide additional map checks after the third check.` tiJ�i Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. Consultant also may be requested to provide supplemental map checking or general map consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ 125 per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Plan Check Compensation Plan check payment shall be made in full at a "fixed fee" rate of: $ 525 per sheet (submittals with 1-5 sheets in quantity) $ 525 per sheet (submittals with 6-15 sheets in quantity) $ 525 per sheet (submittals with 16 or more sheets in quantity) Sheet counts are based on the number of sheets submitted for plan check. Sheets may include title and detail sheets, street plans, storm drain plans, traffic plans, meandering sidewalk and parkway grading plans, rough & precise grading plans at 30,40 or 50 feet per inch scale. Consultant receives no additional compensation for review of supporting documents including, but not limited to hydrology and hydraulic calculation reports, soils reports & engineer's cost estimates, conditions of approval, tentative tract and parcel maps. Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. This rate shall be compensation for up to three (3) plan checks. Supplemental payment for additional plan checks after the third check or for special engineering reports including LAQMP Dust Control Plans, Storm Water Pollution Prevention Plans and Traffic Reports, shall be in made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the plan check (after the third plan check) or for special reports shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three plan checks shall be distributed at the following schedule: First Plan Check 65% of the Total Plan Check Fee Second Plan Check 20% of the Total Plan Check Fee Third Plan Check 15% of the Total Plan Check Fee The Consultant shall be compensated upon the completion of each plan check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed plan check. If the plan check process is completed prior to the third plan check, 100% of the plan check fee will be paid upon �J completion of the final plan check. The Consultant shall separately invoice per plan and per plan check. No exceptions will be allowed to the payment schedule. Consultant also may be requested to provide general civil consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ 1 2 5 per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Prevailing Wage - In accordance with Section 1770 of the Labor Code, the City has ascertained and does hereby specify that the prevailing wage rates shall be those provided in Article 1110- 20.0, WAGE RATES. The said rates shall include all employer payments that are required by Section 1773.1 of the Labor Code. The City will furnish to the Contractor, upon request, a copy of such prevailing rates. It shall be the duty of the Contractor to post a copy of such prevailing wages at the job site. CONSULTANT: By Date: tb•►—►'Olo Name: Noel owcl ay - Owner n 12 ' Exhibit C Special Requirements None. PROFESSIONAL SERVICES AGREEMENT Attachment 6 THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and RASA ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to on -call engineering map check services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation iLbT)g exceeding five percent (5%) of the Contract Sum may be approved by the Contract Officer. Any greater increase must be approved by the City Council. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "C" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation & Performance"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "B" (the "Schedule of Compensation & Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when nW and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this agreement shall commence on January, 1, 2007 and terminate on December 31, 2008. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson or such other person as may be designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. /F/�a j .. d hA 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. The amount of insurance required hereunder shall be $250,000 per individual; $500,000 per occurrence for Personal Injury/Property Damage Coverage. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of "A" or better and a minimum financial size VII. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to City of proposed ^f cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit C without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise our of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. C. General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant or any other person or entity involved by, for with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive -the termination of this agreement or this section. d. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has riot been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right , but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self - insure its obligations to City, If Consultant's existing coverage includes a deductible or self - insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. err ..L�J Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at. all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes, any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized n � H by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES• NONDISCRIMINATION. 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default 'or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. r* To City: CITY OF LA QUINTA Attention: Thomas P. Genovese City Manager 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 To Consultant: RASA Attention: Eric A. Nelson, PLS Principal 534 Rancho Terrace Escondido, California 92026 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA a California municipal corporation Thomas P. Genovese, City Manager Date ATTEST: Veronica J. Montecino, CMC, City Clerk APPROVED AS TO FORM: M. Katherine Jenson, City Attorney CONSULTANT: By: Name: Title: Date: Exhibit A Scope of Services Consultant shall provide on -call professional engineering map check services to the City. Exhibit B Schedule of Compensation & Performance Consultants Project Schedule is attached and made a part of this agreement. Consultant shall complete services presented within the scope of work contained within Exhibit "A" in accordance with the attached project schedule. CXF/7011 tnp Service Term, Schedule & Cost Proposal Consultant RKA Consulting Group shall provide services for a term of twenty-four (24) months beginning January 1, 2007 and terminating on December 31, 2008. OFFICE HOURS The Consultant shall maintain normal office hours between 8:00 a.m. and 5:00 p.m., Monday through Friday. The Consultant shall be available to meet with City Staff during normal working hours with 48 hours advance notice. SCHEDULE The Consultant shall adhere to the following plan check schedule: Map Submittal Map Check Turn -Around (From Receipt from City Staff) 15 Plate n Check 10 Working Days 2"d Plan Check 10 Working Days 3`d Plan Check �5 Working Days Plan Submittal Plan Check Turn -Around (From Receipt from City Staff) 15 Plate n Check /0 Working Days 2"d Plan Check /D Working Days 3`d Plan Check 5 Working Days For larger, more complex projects such as golf course developments, one (1) additional week for the 151 and 2"d plan check shall be provided, if necessary to complete a thorough plan check. The consultant shall advise the Contract Officer, in writing, if additional time is needed. Normal plan check operations will be conducted as follows: 151 Submittal Upon completing the 15' review, the Consultant shall submit the "red lined" plans and a copy of the applicable Plan Check List to the City. The City will provide supplemental comment as necessary and forward "red lined" plans to the applicant. 2"d and Subse uent Submittals Upon receipt of the 2 no round plan check submittal from the applicant and upon completing the 2"d review, the Consultant shall submit "red lined" plans and a copy of the applicable 2nd review Plan Check List to the City. The City will provide supplemental comment as applicable and forward 2"d review "red lined" plans to the applicant. The process of " applicant correction, Consultant review followed by City review and "red lined" plan return to applicant shall continue until approvable plans are generated and a plan approval letter is submitted to the City by the Consultant. If necessary, the Consultant shall be available to meet with City staff and/or the applicant to review the plan check comments. The Consultant will communicate directly with the applicant regarding plan check issues and clarifications. The: City desires an average of no more than 3 plan check rounds before final plan approval. ,_ 273 The Consultant shall also maintain a plan check log as follows to track the plan check status. The plan check log shall include the following information: 1) Receipt Date 2) Transmittal Dates 3) Who is Receiving the Information 4) Status of Plan Check 5) Project Description and City Plan Check Number 6) Plan Check Fees The Consultant shall maintain all files for a period of three years. Copies of requested files will be furnished to the City upon request. Map Check Compensation Map check payment shall be made in full at the following "fixed fee" rates as specified for Tract Maps and Parcel Maps: Tract Maps $ 2,250 base fee plus $ 35 per lot (including both lettered and numbered lots) Parcel Maps $ 2,256 base fee plus $ er per parcel (including both lettered and numbered lots) Lot Line Adjustment $ -450 base fee plus $_Pal fee per line adjusted This rate shall be compensation for up to three (3) map checks. Payment for additional map checks after the third check shall be made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the map check (after the third check) shall be made in writing to the Contract Officer for approval as specified in Section 1.6 — Additional Services of the Agreement. Compensation for the first three map checks shall be distributed at the following schedule: First Map Check 65% of the Total Map Check Fee Second, Map Check 20% of the Total Map Check Fee Third Map Check 15% of the Total Map Check Fee The Consultant shall be compensated upon the completion of each map check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed map check. If the map check process is completed prior to the third map check, 100% of the map check fee will be paid upon completion of the final map check. Consultant may be requested to provide additional map checks after the third check. Consultant receives no additional compensation for delivenr or postage fees necessary tor - transmit or receive plans from City. Consultant also may be requested to provide supplemental map checking or general map consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ HO per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule:. Plan Check Compensation Plan check payment shall be made in full at a "fixed fee" rate of: $ (306 per sheet (submittals with 1-5 sheets in quantity) $ 275 per sheet (submittals with 6-15 sheets in quantity) $ 250 per sheet (submittals with 16 or more sheets in quantity) Sheet counts are based on the number of sheets submitted for plan check. Sheets may include title and detail sheets, street plans, storm drain plans, traffic plans, meandering sidewalk and parkway grading plans, rough & precise grading plans at 30, 40 or 50 feet per inch scale. Consultant receives no additional compensation for review of supporting documents including, but not limited to hydrology and hydraulic calculation reports, soils reports & engineer's cost estimates, conditions of approval, tentative tract and parcel maps. Consultant receives no additional compensation for delivery or postage fees necessary to transmit or receive plans from City. This rate shall be compensation for up to three (3) plan checks. Supplemental payment for additional plan checks after the third check or for special engineering reports including IAQMP Dust Control Plans, Storm Water Pollution Prevention Plans and Traffic Reports, shall be in made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the plan check (after the third plan check) or for special reports shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three plan checks shall be distributed at the following schedule: First Plan Check 65% of the Total Plan Check Fee Second Plan Check 20% of the Total Plan Check Fee Third Plan Check 15% of the Total Plan Check Fee The Consultant shall be compensated upon the completion of each plan check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed plan check. If the plan check process is completed prior to the third plan check, 100% of the plan check fee will be paid upon completion of the final plan check. The Consultant shall separately invoice per plan and per plan check. No exceptions will be allowed to the payment schedule. Consultant also may be requested to provide general civil consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ /I/0 per hour —no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Prevailing Wage - In accordance with Section 1770 of the Labor Code, the City has ascertained and does hereby specify that the prevailing wage. rates shall be those provided in Article 1 1 10- 20.0, WAGE RATES. The said rates shall include all employer payments that are required by Section 1773.1 of the Labor Code. The City will furnish to the Contractor, upon request, a copy of such prevailing rates. It shall be the duty of the Contractor to post a copy of such prevailing wages at the job site. CONSULTANT: koa__ By: ✓/ Date: 10/17/06 Name: David Gilbertson Title: Vice President rwe Exhibit C Special Requirements None. I1 w 11 M.. J PROFESSIONAL SERVICES AGREEMENT Attachment 7 THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and RKA ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to on -call engineering plan check services, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses Permits, Fees and Assessments. Excerpt as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not w -� 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation & Performance"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation may include a lump sum payment upon completion, payment in accordance with the percentage of completion of the services, payment for time and materials based upon Consultant's rate schedule, or such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses when and if specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to City no later than the tenth (10th) working day of such month, in the form approved by City's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall (1) describe in detail the services provided, including time and materials, and (2) specify each staff member who has provided services and the number of hours assigned to each such staff member. Such invoice: shall contain a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. City will pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement no later than the last working day of the month. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "B" (the "Schedule of Compensation & Performance"). Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Maieure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this agreement shall commence on January, 1, 2007 and terminate on December 31, 2008. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, except as otherwise provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. �31 Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be Timothy R. Jonasson or such other person as may be designated by the City Manager of City. 11 shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except as set forth in this Agreement, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. The amount of insurance required hereunder shall be $250,000 per individual; $500,000 per occurrence for Personal Injury/Property Damage Coverage. Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the State of California and with an A.M. Bests rating of "A" or better and a minimum financial size VII. All insurance required by this Section shall be kept in effect: during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to City of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. a. Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are cause in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit C without the written consent of the Consultant. b. Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise our of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subconsultants of Consultant. C. General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant or any other person or entity involved by, for with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. d. Indemnity Provisions for Contracts Related to Construction. Without affecting the rights of City under any provision of this agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City's active negligence accounts for only a percentage of the liability involved, the obligation of Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City. 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage uv �UII UUIU Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all contractors, and subcontractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant's employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise. 3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. �. 47� 4S 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection without City's prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right , but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. 8. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subcontractor„ is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self - insure its obligations to City, If Consultant's existing coverage includes a deductible or self - insured retention, the deductible or self -insured retention must be declared to the City. At that time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the: term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increased benefit to City. 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five (5) days of the expiration of coverages. 17. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. 6.0 RECORDS AND REPORTS. «.J0• 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.8. ti �' 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or rernedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the; same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION. 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. r r� ra ,. j J 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she: or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. To City: To Consultant: CITY OF LA QUINTA RKA Attention: Thomas P. Genovese Attention: David Gilbertson City Manager Vice President 78-495 Calle Tampico 398 Lemon Creek Drive, Suite E P.O. Box 1504 Walnut, California 91789-2649 La Quinta, California 92247-1504 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by ar instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall [)a declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. ^39 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are Formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA a California municipal corporation Thomas P. Genovese, City Manager ATTEST: Veronica J. Montecino, CMC, City Clerk APPROVED AS TO FORM: M. Katherine Jenson, City Attorney CONSULTANT: As Name: ^ �', Title: Date: ��1 Exhibit A Scope of Services Consultant shall provide on -call professional engineering plan check services to the City. Exhibit B Schedule of Compensation & Performance Consultants Project Schedule is attached and made a part of this agreement. Consultant shall complete services presented within the scope of work contained within Exhibit "A" in accordance with the attached project schedule. 93 _ CXt V11 j,5 Service Term, Schedule & Cost Proposal Consultant RRA consulting croup shall provide services for a term of twenty-four (24) months beginning January 1, 2007 and terminating on December 31, 2008. OFFICE HOURS The Consultant shall maintain normal office hours between 8:00 a.m. and 5:00 p.m., Monday through Friday. The Consultant shall be available to meet with City Staff during normal working hours with 48 hours advance notice. SCHEDULE The Consultant shall adhere to the following plan check schedule: Ma Sp ubmittal Map Check Turn-Ari 15 Plan Check 10 Working Days 2"d Plan Check 10 Working Days 3`d Plan Check 5 Working Days Plan Submittal Plan Check Turn -Around (From Recent from City Staff) 1PlaT n Check 10 Working Days 2nd Plan Check %0 Working Days P Plan Check .5 Working Days For larger, more complex projects such as golf course developments, one (1) additional week for the 1 stand 2nd plan check shall be provided, if necessary to complete a thorough plan check. The consultant shall advise the Contract Officer, in writing, if additional time is needed. Normal plan check operations will be conducted as follows: Vt Submittal Upon completing the 15t review, the Consultant shall submit the 'red lined" plans and a copy of the applicable Plan Check List to the City. The City will provide supplemental comment as necessary and forward "red lined" plans to the applicant. 2"d and Subsequent Submittals Upon receipt of the 22" round plan check submittal from the applicant and upon completing the 2"d review, the Consultant shall submit "red lined" plans and a copy of the applicable 2" review Plan Check List to the City. The City will provide supplemental comment as applicable and forward 2"d review 'red lined" plans to the applicant. The process of applicant correction, Consultant review followed by City review and 'red lined" plan return to applicant shall continue until approvable plans are generated and a plan approval letter is submitted to the City by the Consultant. If necessary, the Consultant shall be available to meet with City staff and/or the applicant to review the plan check comments. The Consultant will communicate directly with the applicant regarding plan check issues and clarifications. The City desires an average of no more than 3 plan check rounds before final plan approval. �3� The Consultant shall also maintain a plan check log as follows to track the plan check status. The plan check log shall include the following information: 1) Receipt Date 2) Transmittal Dates 3) Who is Receiving the Information 4) Status of Plan Check 5) Project Description and City Plan Check Number 6) Plan Check Fees The Consultant shall maintain all files for a period of three years. Copies of requested files will be furnished to the City upon request. Map Check Compensation Map check payment shall be made in full at the following "fixed fee" rates as specified for Tract Maps and Parcel Maps: Tract Maps $ 2,250 base fee plus $ 35 per lot (including both lettered and numbered lots) Parcel Maps $ 2,250 base fee plus $ ff per parcel (including both lettered and numbered lots) Lot Line Adjustment $ -450 base fee plus $ 0 fee per line adjusted This rate shall be compensation for up to three (3) map checks. Payment for additional map checks after the third check shall be made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the map check (after the third check) shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three map checks shall be distributed at the following schedule: First Map Check 65% of the Total Map Check Fee Second Map Check 20% of the Total Map Check Fee Third Map Check 15% of the Total Map Check Fee The Consultant shall be compensated upon the completion of each map check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed map, check. If the map check process is completed prior to the third map check, 100% of the map check fee will be paid upon completion of the final map check. Consultant may be requested to provide additional map checks after the third check. Consultant receives no additional compensation for delivery or postage fees necessary to w J transmit or receive plans from City. Consultant also may be requested to provide supplemental map checking or general map consulting services for specific development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ M per hour— no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Plan Check Compensation Plan check payment shall be made in full at a "fixed fee' rate: of: $ 306 per sheet (submittals with 1-5 sheets in quantity) $ 27.5 per sheet (submittals with 6-15 sheets in quantity) $ 250 per sheet (submittals with 16 or more sheets in quantity) Sheet counts are based on the number of sheets submitted for plan check. Sheets may include title and detail sheets, street plans, storm drain plans, traffic plans, meandering sidewalk and parkway grading plans, rough & precise grading plans at 30,40 or 50 feet per inch scale. Consultant receives no additional compensation for review of supporting documents including, but not limited to hydrology and hydraulic calculation reports, soils reports & engineer's cost estimates, conditions of approval, tentative tract and parcel maps. Consultant receives no additional compensation for delivery or postage fees necessaryto transmit or receive plans from City. This rate shall be compensation for up to three (3) plan checks. Supplemental paymentfor additional plan checks after the third check or for special engineering reports including LAQMP Dust Control Plans, Storm Water Pollution Prevention Plans and Traffic Reports, shall be in made at the rates listed in the Schedule of Billing Rates attached herewith for the actual hours submitted in conformance with Section 2.2 of the Agreement. An estimate of hours to complete the plan check (after the third plan check) or for special reports shall be made in writing to the Contract Officer for approval as specified in Section 1.6 - Additional Services of the Agreement. Compensation for the first three plan checks shall be distributed at the following schedule: First Plan Check 65% of the Total Plan Check Fee Second Plan Check 20% of the Total Plan Check Fee Third Plan Check 15% of the Total Plan Check Fee The Consultant shall be compensated upon the completion of each plan check as indicated in the above schedule and in conformance with Section 2.2 of the Agreement. If a project is suspended, either definitely or indefinitely, the Consultant shall be compensated based on the last completed plan check. If the plan check process is completed prior to the third plan check, 100% of the plan check fee will be paid upon_ completion of the final plan check. w J C The Consultant shall separately invoice per plan and per plan check. No exceptions will be allowed to the payment schedule. Consultant also may be requested to provide general civil consulting services for speck development related engineering projects for the City as applicable. Payment shall be made in full at an hourly rate of: $ /90 per hour — no overtime, travel time, expenses or other administrative charges will be allowable over and above the stated hourly rate schedule. Prevailing Wage - In accordance with Section 1770 of the Labor Code, the City has ascertained and does hereby specify that the prevailing wage rates shall be those provided in Article 1110- 20.0, WAGE RATES. The said rates shall include all employer payments that are required by Section 1773.1 of the Labor Code. The City will furnish to the Contractor, upon request, a copy of such prevailing rates. It shall be the duty of the Contractor to post a copy of such prevailing wages at the job site. . CONSULTANT: / By: 6 ✓-( kJ41L;: Date: 10/17/06 Name: David Gilbertson Title: Vice President 2w 7 Exhibit C Special Requirements None. a 04 6y oe9 AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: December 5, 2006 BUSINESS SESSION: _ ITEM TITLE: Approval of New Job Descriptions: CONSENT CALENDAR: Assistant City Manager — Development Services and Assistant City Manager — Management Services STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Approve new job descriptions for the positions of Assistant City Manager. FISCAL IMPLICATIONS: The cost for one of the positions has been incorporated into the current Fiscal Year 2006/07 budget. The proposed additional Assistant City Manager position will be incorporated into the current budget at Range 94 ($10,778-$13,101 per month). The salaries for both positions are currently under review. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff has reviewed the current position description and has determined that it would be beneficial to divide the duties of the position and create two separate Assistant City Manager positions. The first position of Assistant City Manager would have a primary assignment in the areas of economic development and Redevelopment Agency operations, and would be titled "Assistant City Manager — Development Services" (Attachment 1). The primary areas of responsibility would be in the areas of oversight and management of all economic development projects, including SilverRock Resort, as well as most of the issues that come before the Redevelopment Agency for discussion and review. The position would also be responsible for other general operational activities, and would assist with Management Services issues, as needed. The second position of Assistant City Manager would be responsible for operational and organizational management activities, and would be titled "Assistant City Manager - Management Services" (Attachment 2). The primary areas of responsibility would be in the areas of: Personnel/Risk Management, Public Information, Solid Waste, Cable Television, and Grants Administration. The position would also be involved with oversight of general operational activities and would assist with economic development and Redevelopment Agency issues, as needed. Both positions would report directly to the City Manager. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the job descriptions for the Assistant City Manager; or 2. Do not approve the job descriptions for the Assistant City Manager; or 3. Provide staff with alternative direction. Respectfully submitted, Jon uiz, Perso el/ ' c Manager Approved for submission by: TT oma�ovese City Manager r Attachments: 1. Assistant City Manager (Development Services) 2. Assistant City Manager (Management Services) 20� ATTACHMEN' THE CITY OF LA QUINTA ASSISTANT CITY MANAGER - DEVELOPMENT SERVICES GENERAL STATEMENT OF JOB Under executive direction, assists the City Manager in planning, organizing and directing the activities of all City departments; coordinates activities among and with other departments; provides highly complex staff assistance to the City Manager and City Council; provides assistance, centralized leadership and coordination for City redevelopment and economic development programs and projects; provides centralized leadership of activities and programs for existing and prospective commercial and industrial businesses desiring to relocate and/or expand in the City of La Quinta; assists in directing the activities of the Redevelopment Agency on behalf of the City Manager; coordinates activities with outside agencies and organizations; may assist in directing the administrative activities of the City. REPORTS TO: City Manager. ESSENTIAL FUNCTIONS The following duties are normal for this position. These are not to be construed as exclusive or all-inclusive. Other duties may be required and assigned. • Coordinate and perform administrative and professional duties necessary to achieve program objectives in the areas of economic development, business assistance and business financing; coordinate and promote revitalization projects, commercial and light industrial development, retail, hotels, and similar programs; • Oversee complicated negotiations with developers and property owners relative to the acquisition and disposition of property and improvements. • Oversee and manage effectively all aspects of economic development and a complex and multi -faceted Redevelopment Agency; • Participates in the development and implementation of goals, objectives, policies and procedures for the City and Redevelopment Agency; • Directs, oversees and/or prepares complex analysis relating to project proposals, sale and purchase of land, municipal financing, disposition and development agreements, owner participation agreements, joint powers agreements and other documents necessary for conducting operations in municipal government; • Assists in the budget preparation process; • Assists in the administration of all activities of the Redevelopment Agency; • Conducts activities and discussions with other governmental entities regarding regional issues; • Supervises assigned staff, including instructing, recruiting, selecting, and allocating employees, reviewing and planning work, maintaining standards, coordinating activities, and transferring or promoting employees; recommends salary increases and discipline; writes performance appraisals; • May conduct investigations into the affairs of the City and any department or division thereof and any contract or proper performance of any of the obligations of the City; and further, investigates all complaints in relation to matters concerning the administration of the city government and in regard to the services maintained by public utilities in the City; • Represents the City at meetings, organizations, clubs and may speak on behalf of the City at these meetings as requested; • Assists the City Manager in the contract administration of the City, which includes the development of new contracts as well as the ongoing renewal process of existing contract services; • Selects, supervises and evaluates professional consultant services; prepares requests for proposals; coordinates and monitors activities and services; provides technical assistance; • Assists in managing, overseeing and participating in the preparation, development, and evaluation of highly technical studies and analyses related to the Redevelopment Agency and City; • Maintains effective relationships with subordinates, other management/administrative personnel and elected officials; • Formulates and recommends policies, procedures and systems pertaining to the management of the City and Redevelopment Agency; • Participates in the preparation, coordination and presentation of the City's annual budget, capital improvement budget, annual financial management review, and resource allocation plan and other financial forecasts, including review of expenditures and revenue; • Assists with the formulation of economic development goals, objectives and policies to enhance the fiscal position of the City, implement the economic development policies of the City and coordinate and strategize these efforts with all City departments and Redevelopment Agency; coordinate City efforts with regional economic development activities; • Assists, as needed, with the City's personnel management functions, including recruitment, affirmative action, collective bargaining, classification, compensation, training and development, benefits administration and records maintenance; • Assists, as needed, in developing, planning, implementing and administering City-wide goals and objectives as well as policies and procedures necessary to provide City services; may recommend new or modified programs, systems, policies and procedures, as requested, and may coordinate inter -departmental activities, as well as City activities, with outside agencies and organizations; • Provides staff assistance to the City Manager, City Council and Redevelopment Agency; prepares and presents staff reports and other necessary correspondence; • Serve as Acting City Manager as required; • Performs various related essential duties as required. MINIMUM TRAINING AND EXPERIENCE A Bachelors degree with major course work in public administration, business administration or a closely related field; a Masters degree is desirable. At least 5 years of increasingly responsible municipal experience including significant financial and redevelopment management responsibilities; or any equivalent combination of training and experience which provides the required skills, knowledge and abilities. KNOWLEDGE AND ABILITIES REQUIRED TO PERFORM ESSENTIAL JOB FUNCTIONS Knowledge of.• • principles and practices related to municipal Redevelopment and Economic Development programs and projects; • principles and practices of public agency administration; • principles and practices of local government Redevelopment administration, including employee supervision, training, and appraisal; budget preparation and control; contract administration; legal procedures; redevelopment procedures; negotiation of disposition and development agreements; • methods and techniques of public administration research, analysis and report preparation; • modern and highly complex principles and practices of public agency accounting and finance; • Redevelopment Law. Physical Requirements: • Ability to operate a variety of automated office machines including an adding machine, copier, personal computer, and fax machine; • Ability to coordinate eyes, hands and fingers in performing semi -skilled tasks including word processing and data entry; • Ability to exert negligible physical effort in sedentary to light work involving sitting most of the time, but may involve walking or moving from one area of the office to another, and standing for brief periods of time; • Ability to exert a negligible amount of force frequently to lift, carry, push, pull, or otherwise move objects. Supervisory Responsibilities: • Ability to assign, review, plan and coordinate the work of other employees; • Ability to provide instruction and guidance to staff; and promote staff development and motivation; analyze problems that arise in the areas under supervision and recommend solutions; • Ability to recommend the discipline or discharge of staff, approve transfer or promotions of employees; • Ability to access the work of employees and write performance appraisals. Mathematical Ability: • Ability to compute and apply descriptive statistics and formulas involving variables. Judgment and Situational Reasoning Ability: • Ability to apply common sense understanding to perform semi - repetitive tasks such as word processing; • Ability to apply principles of logical functions in budgeting • Ability to use independent judgment in periodically non -routine situations, such as determining appropriate financial information needed for complex financial analysis. Language Ability and Interpersonal Communication: • Ability to comprehend and correctly use a variety of informational documents including development proposals, audited financials, pro formas and financial analyses, and special studies and reports; • Ability to prepare letters of correspondence, agenda items, and financial analysis using prescribed format and conforming to all rules of punctuation, grammar, diction and style; • Ability to comprehend a variety of reference books and manuals including financial statements, code books and ordinances, policy manuals, budget documents, maps, and professional publications; • Ability to communicate verbally and in writing and maintain effective working relationships with public officials, attorneys, consultants, developers, coworkers, supervisors, members of the public, and other City personnel; • Ability to prepare and present accurate, concise reports to Commissions, Boards, City Council and Redevelopment Agency. Environmental Adaptability: e Ability to work in an office environment. The City of La Quinta is an Equal Opportunity Employer. In compliance with the Americans With Disabilities Act, La Quinta will provide reasonable accommodations to qualified individuals with disabilities and encourages both prospective employees and incumbents to discuss potential accommodations with the employer. November 2006 ATTACHMENT THE CITY OF LA QDINTA ASSISTANT CITY MANAGER - MANAGEMENT SERVICES GENERAL STATEMENT OF JOB Under executive direction, assists the City Manager in planning, organizing and directing the activities of all City departments; coordinates activities among and with other departments; provides highly complex staff assistance to the City Manager and City Council; assists in directing the administrative activities of the City on behalf of the City Manager; participates in the development, implementation, and administration of administrative policies, procedures, and programs; coordinates activities with outside agencies and organizations; may assist with some economic development and Redevelopment Agency activities. REPORTS TO: City Manager. ESSENTIAL FUNCTIONS The following duties are normal for this position. These are not to be construed as exclusive or all-inclusive. Other duties may be required and assigned. • Participates in the development and implementation of goals, objectives, policies and procedures for the City and, when needed, the Redevelopment Agency; • Directs, oversees and/or prepares complex analysis relating to project proposals, joint powers agreements and other documents necessary for conducting operations in municipal government; • Assists in the budget preparation process; • Conducts activities and discussions with other governmental entities regarding regional issues; • Supervises assigned staff, including instructing, recruiting, selecting, and allocating employees, reviewing and planning work, maintaining standards, coordinating activities, and transferring or promoting employees; recommends salary increases and discipline; writes performance appraisals; • May conduct investigations into the affairs of the City and any department or division thereof and any contract or proper performance of any of the obligations of the City; and further, investigates all complaints in relation to matters concerning the administration of the city government and in regard to the services maintained by public utilities in the City; • Responds to and resolves difficult and sensitive complaints and inquiries from the public; prepare draft responses; review with City Manager as appropriate; e Represents the City at meetings, organizations, clubs and may speak on behalf of the City at these meetings as requested; • Assists the City Manager in the contract administration of the City, which includes the development of new contracts as well as the ongoing renewal process of existing contract services; • Selects, supervises and evaluates professional consultant services; prepares requests for proposals; coordinates and monitors activities and services; provides technical assistance; • Formulates and recommends policies, procedures and systems pertaining to the management of the City; • Oversees the City's personnel management functions, including recruitment, affirmative action, collective bargaining, classification, compensation, training and development, benefits administration and records maintenance; • Resolves a wide variety of difficult administrative and technical problems; maintains effective relationships with subordinates, other management/administrative personnel and elected officials; • Supervises the conduct of studies, surveys, and the collection of information on difficult operational and administrative problems; analyzes findings and prepares reports of practical solutions for review; e Oversees/conducts review and analysis of legislation impacting the City; • Assist in developing, planning, implementing and administering City- wide goals and objectives as well as policies and procedures necessary to provide City services; recommends new or modified programs, systems, policies and procedures and coordinates inter- departmental activities, as well as City activities, with outside agencies and organizations; • Provides staff assistance to the City Manager and City Council; prepares and presents staff reports and other necessary correspondence; • Oversees risk management; • Acts as the City's Public Information Officer and Employee Relations Officer; • Oversees all activities involving Cable TV, solid waste, and grants administration; • Serve as Acting City Manager as required; • Performs various related essential duties as required. MINIMUM TRAINING AND EXPERIENCE A Bachelors degree with major course work in public administration, business administration or a closely related field; a Masters degree is desirable. At least 5 years of increasingly responsible municipal experience including significant financial management and human resources responsibilities; or any equivalent combination of training and experience which provides the required skills, knowledge and abilities. KNOWLEDGE AND ABILITIES REQUIRED TO PERFORM ESSENTIAL JOB FUNCTIONS Knowledge of.• • principles and practices of public agency administration; • methods and techniques of public administration research, analysis and report preparation; • public relations techniques; • principles and practices of labor negotiations; • principles of grant application and proposal preparation and grant monitoring and reporting techniques; • modern and highly complex principles and practices of public agency accounting and finance; • principles of human resources. Physical Requirements: • Ability to operate a variety of automated office machines including an adding machine, copier, personal computer, and fax machine; • Ability to coordinate eyes, hands and fingers in performing semi -skilled tasks including word processing and data entry; • Ability to exert negligible physical effort in sedentary to light work involving sitting most of the time, but may involve walking or moving from one area of the office to another, and standing for brief periods of time; • Ability to exert a negligible amount of force frequently to lift, carry, push, pull, or otherwise move objects. Supervisory Responsibilities: • Ability to assign, review, plan and coordinate the work of other employees; • Ability to provide instruction and guidance to staff; promote staff development and motivation; analyze problems that arise in the areas under supervision and recommend solutions; • Ability to recommend the discipline or discharge of staff, approve transfer or promotions of employees; • Ability to access the work of employees and write performance appraisals. Mathematical Ability: • Ability to compute and apply descriptive statistics and formulas involving variables. Judgment and Situational Reasoning Ability: • Ability to apply common sense understanding to perform semi - repetitive tasks such as word processing; • Ability to apply principles of logical functions in budgeting; • Ability to use independent judgment in periodically non -routine situations, such as determining appropriate financial information needed for complex financial analysis. Language Ability and Interpersonal Communication: • Ability to comprehend and correctly use a variety of informational documents including development proposals, audited financials, pro formas and financial analyses, and special studies and reports; • Ability to prepare letters of correspondence, agenda items, and financial analysis using prescribed format and conforming to all rules of punctuation, grammar, diction and style; • Ability to comprehend a variety of reference books and manuals including financial statements, code books and ordinances, policy manuals, budget documents, maps, and professional publications; • Ability to communicate verbally and in writing and maintain effective working relationships with public officials, attorneys, consultants, developers, coworkers, supervisors, members of the public, and other City personnel; • Ability to prepare and present accurate, concise reports to Commissions and City Council. Environmental Adaptability: • Ability to work in an office environment. The City of La Quinta is an Equal Opportunity Employer. In compliance with the Americans With Disabilities Act, La Quinta will provide reasonable accommodations to qualified individuals with disabilities and encourages both prospective employees and incumbents to discuss potential accommodations with the employer. November 2006 COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Approval of a Supplemental Agreement with Riverside County for the Use of Community Development Block Grant (CDBG) Funds for Reconstruction of the Village Round -About and Public Service Funds for the Boys and Girls Club - La Quinta Unit, Fee Waiver/Reduction Program RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: _n CONSENT CALENDAR: 8 STUDY SESSION: PUBLIC HEARING: Approval of a Supplemental Agreement with Riverside County for the Use of Community Development Block Grant (CDBG) Funds for the Reconstruction of the Village Round -About, and Public Service Funds for the Boys and Girls Club - La Quinta Unit, Fee Waiver/Reduction Program. FISCAL IMPLICATIONS The City will receive reimbursement of $190,911 in CDBG Entitlement Funds for the improvements on Calle Tampico ($160,911), and public service funds for the Boys and Girls Club - La Quinta Unit, Fee Waiver/Reduction Program ($30,000). CHARTER CITY IMPLICATIONS None. BACKGROUND AND OVERVIEW The purpose of this Supplemental Agreement, between the City and Riverside County, is to authorize the use of CDBG funds for Fiscal Year 2006-2007 in the amount of $190,911 in accordance with the Housing and Community Development Act of 1974. This allocation reflects a proportional share of the Riverside County's entitlement allocation and a 10% across-the-board cut in grant funds by H.U.D. The City submitted CDBG applications to the County for the projects in January, 2006 for $202,600 which included $172,600 for the reconstruction of the Village Round -About and $30,000 for the Boys and Girls Club - La Quinta Unit Fee Waiver/Reduction Program. The applications were subsequently approved, as submitted, by the Board of Supervisors. J , This Supplemental Agreement is for projects which have been approved by the City Council on January 17, 2006 under Resolution 2006-009 and are available with the beginning of the new Federal Fiscal Year which begins October 1, 2006. Monies become available for reimbursement to the City upon approval of this Agreement by the City and the Riverside County Board of Supervisors. For the past 22 years, the City of La Quinta has been participating in the Urban Counties CDBG program with Riverside County. Entitlement Funds for CDBG prior Program Years have been expended for projects such as: Senior Center construction, La Fonda Street construction and public service funds for the Boys and Girls Club - La Quinta Unit. The City has previously entered into Supplemental Agreements with the County for the use of CDBG funds. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the Supplemental Agreement and authorize the Mayor to sign the Agreement to utilize the sum of $ 190,911 in CDBG Entitlement Funds for the reconstruction of the Village Round -About ($160,911), and public service funds for the Boys and Girls Club - La Quinta Unit, Fee Waiver/Reduction Program ($30,000); or 2. Do not Approve the Supplemental Agreement and authorize the Mayor to sign the Agreement to utilize the sum of $190,911 in CDBG Entitlement Funds for the reconstruction of the Village Round -About ($160,911), and public service funds for the Boys and Girls Club — La Quinta Unit, Fee Waiver/Reduction Program ($30,000); or 3. Provide staff with alternative direction. Respectfully submitted, Douglas R vans Commun ty Development Director Approved for submission by: Thomas P. Genovese, City Manager Attachment : 1. CDBG Agreement ATTACHMENT #1 i 7 3 File: 4.LQ036 — 4.LQ037 SUPPLEMENTAL AGREEMENT FOR THE USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS The COUNTY OF RIVERSIDE of the State of California, herein called, "COUNTY," and the CITY OF LA QUINTA, herein called "CITY," mutually agree as follows: 1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement dated July 12, 2005, whereby CITY elected to participate with COUNTY, which has qualified as an "Urban County" for purposes of receiving Community Development Block Grant (CDBG) funds, and to assist and undertake essential community development and housing assistance activities pursuant to the Housing and Community Development Act of 1974, as amended, hereinafter referred to as "Act". Said Cooperation Agreement dated July 12, 2005, is incorporated herein by reference and made a part of this Agreement as if each and every provision was set forth herein. 2. PURPOSE. CITY promises and agrees to undertake and assist with the community development activities, within its jurisdiction, by utilizing the sum of $190,911, CDBG Entitlement Funds, as specifically identified in Exhibits A and B are attached hereto and by this reference are incorporated herein, for the projects: 4 LQ036 Round -A -Bout Intersection Reconstruction, $160,911. 4 LQ037 Membershiv Fees Waiver/Reduction Pro¢ram, $30,000. 3. TERM OF AGREEMENT. The term of this Agreement for the projects shall be for a period of one (1) year from July 1, 2006 to June 30, 2007, and proceed consistent with the completion schedule set forth in Exhibits A and B. In the event that the projects are not substantially completed by the time set forth in the completion schedule due to unforeseen or uncontrollable causes, the COUNTY may consider extending the schedule for the completion of the project. Times of performance for other activities may also be extended in writing by COUNTY. If substantial progress toward completion in conformance with the completion schedule, as determined by COUNTY, of the projects are not made during the term of the 3 D 1 2 3 4 15 !6 >.7 Zg upplemental Agreement, COUNTY may suspend or terminate this agreement by the procedures ,t forth in the Section titled "Termination", of this agreement and the entitlement funds ssociated with the projects may be reprogrammed by COUNTY after appropriate notice is ,iven. 4. DISPOSITION OF FUNDS. COUNTY's Board of Supervisors shall determine he final disposition and distribution of all funds received by COUNTY under the Act consistent vith the provisions of Paragraphs 2 and 3 of this Agreement. COUNTY, through its Economic Development Agency, shall: (1) Make payment of the grant funds to CITY as designated in Exhibits A and B; (2) It is the CITY's responsibility to monitor all project activities of Exhibits A and B to ensure compliance with applicable federal regulations and the terms of this Agreement. CITY shall comply with timely drawdown of funds by submitting monthly requests for reimbursement. All disbursements of grant funds will be on a reimbursement basis and made within thirty (30) days after the CITY has submitted its letter identifying payments and documentation which supports expenditures. All authorized obligations incurred in the performance of the Agreement for projects eligible under the following regulations must be reported to COUNTY no later than by June 5, 2007: a. Public Services [24 CFR 570.201 (e)] b. Acquisition [24 CFR 570.201 (a)] C. Clearance Activities [24 CFR 570.201 (d)] d. Interim Assistance [24 CFR 570.201 (f)] e. Code Enforcement [24 CFR 570.202 (c)] All other eligible activities under this Agreement must be implemented, completed, and obligations reported by the CITY no later than the completion schedules set forth in the Exhibits to this Agreement. 5. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with COUNTY in undertaking essential community development and housing assistance activities, specifically urban renewal and public assistance housing, and shall assist COUNTY in carrying 1 5 6 7 8 )ut its Strategic Plan of the Consolidated Plan and other requirements of the Community development Block Grant Program. 6. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA 'NVIRONMENTAL QUALITY ACT (CEOA). Pursuant to Section 15051(d) of Title 14 of the California Administrative Code, CITY is designated as the lead agency for the projects that are [he subject matter of this Agreement. 7. HOLD HARMLESS AND INDEMNIFICATION. CITY shall comply with all applicable laws, rules and regulations, and shall indemnify, save and hold harmless COUNTY and its agency members and their respective agents, servants and employees of and from any and all liabilities, claims, debt, damages, demands, suits, actions and causes of action of whatsoever kind, nature or sort including, but not by way of limitation, wrongful death, expenses of the defense of said parties, and the payment of attorney's fees, arising out of or in any manner connected with the performance by CITY under this Agreement. 8. RECORDS AND INSPECTIONS. a. CITY shall establish and maintain records in accordance with 24 CFR Part 570, Part 85, OMB Circular A-87, and 24 CFR 91.105, as applicable, and as they relate to the acceptance and use of federal funds under this Agreement. b. CITY shall maintain a separate account for CDBG Entitlement funds f received as set forth in Exhibits (A and B). C. CITY shall, during the normal business hours, make available to COUNTY, the U.S. Department of Housing and Urban Development (HUD), or other authorized representative, for the examination and copying all of its records and other materials with respect to matters covered by this Agreement. d. CITY shall not retain any program income as defined in Section 570.500 of Title 24 of the Federal Code of Regulations. Said program income shall be used only for the activities that are the subject of this Agreement. Further, all provisions of this Agreement shall apply to such activities. e. The CITY shall ensure that at least fifty-one percent (51%) of the persons 3 3 3 1 2 3 4 5 :6 '7 r8 enefiting from all CDBG-funded activities or projects designated as serving limited clientele 570.208(a)(2)(i)]are of low and moderate income and meet the program income guidelines Lttached as Exhibits (A and B). The CITY must provide the required direct benefit locumentation. 9. FEDERAL REQUIREMENTS. CITY shall comply with all applicable federal, ,tate and local laws, regulations and ordinances and any amendments thereto and the federal :egulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY is to comply with those regulations found in Part 85 and Part 570 of Title 24 of the Code of Federal Regulations. CITY is to comply with OMB Circular A-87, or any subsequent replacement. CITY is to abide by the provisions of the Community Development Block Grant Manual, prepared by COUNTY and cited in the above -mentioned Cooperation Agreement. CITY will comply with Section 3 of the Housing & Urban Development Act of 1968, as amended, attached hereto as Exhibit "S". CITY will comply with the provisions of 24 CFR Part 570.200 6), attached as Exhibit "R," pertaining to inherently religious activities. 10. INDEPENDENT CONTRACTOR. CITY and its agents, servants and employees shall act at all times in an independent capacity during the term of this Agreement, and shall not act as, shall not be, nor shall they in any manner be construed to be agents, officers or employees of the COUNTY. 11. TERMINATION. a. CITY. CITY may not terminate this Agreement except upon express written consent of COUNTY. b. COUNTY. Notwithstanding the provisions of Paragraph I Ia, COUNTY may suspend or terminate this Agreement upon written notice to CITY of action being taken and the reason for such action: (1) In the event CITY fails to perform the covenants herein contained at such times and in such manner as provided in this Agreement; and (2) In the event there is a conflict with any federal, state or local law, ordinance, regulation or rule rendering any of the provisions of this Agreement invalid or 1 2 3 4 .5 16 t7 N ntenable; or (3) In the event the funding from the Department of Housing and Jrban Development referred to in Paragraphs 1 and 2 above is terminated or otherwise becomes navailable. C. Upon suspension of this Agreement, CITY agrees to return any mencumbered funds which it has been provided by COUNTY. In accepting said funds, OUNTY does not waive any claim or cause of action it may have against CITY for breach of his Agreement. d. Upon suspension of this Agreement, CITY agrees not to incur any additional cost with regard to the projects that are cited in the written notice as necessitating the suspensions. 12. NONDISCRIMINATION. CITY shall abide by Sections 570.601 and 570.602 of Title 24 of the Federal Code of Regulations which requires that no person in the United States shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with Community Development funds. 13. PROHIBITION AGAINST CONFLICTS OF INTEREST a. CITY and its assigns, employees, agents, consultants, officers and elected and appointed officials shall become familiar with and shall comply with the CDBG regulations prohibiting conflicts of interest contained in 24 CFR 570.611, attached hereto as Exhibit "Cl" and by this reference incorporated herein. b. CITY and its assigns, employees, agents, consultants, officers, and elected and appointed officials shall become familiar with and shall comply with Section A-11 of the County's CDBG Policy manual, attached hereto as Exhibit "Cl" and by this reference incorporated herein. C. CITY understands and agrees that no waiver of exception can be granted to the prohibition against conflict of interest except upon written approval of HUD pursuant to 24 CFR 570.611 (d). Any request by CITY for an exception shall first be reviewed by 11 1 5 5 7 8 ;OUNTY to determine whether such request is appropriate for submission to HUD. In letermining whether such request is appropriate for submission to HUD, COUNTY will consider he factors listed in 24 CFR 570.611 (e). d. Prior to any funding under this Agreement, CITY shall provide COUNTY with a list of all employees, agents, consultants, officers and elected and appointed officials who ire in a position to participate in a decision making process, exercise any functions or -esponsibilities, or gain inside information with respect to the CDBG activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential conflict, including -ven the appearance of conflict, that may arise with respect to the CDBG activities funded under this Agreement. e. Any violation of this section shall be deemed a material breach of this Agreement, and the Agreement shall be immediately terminated by the COUNTY. 14. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no liability for any later determination by the United States Government, the Department of Housing and Urban Development or any other person or entity that CITY is or is not eligible under 24 CFR Part 570 to receive CDBG funds. 15. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in whole or in part, for the purchase of equipment or personal property, the property shall not be transferred from its originally funded use, by CITY or subrecipient, for a period of five (5) years from the close-out date of the grant from which CDBG assistance was provided. The CITY shall maintain a current inventory for COUNTY monitoring and review. 16. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to notify and to require any lessee or assignee to notify Riverside County Workforce Development Center of any and all job openings that are caused by this project. 17. PUBLICITY. Any publicity generated by CITY for the project funded pursuant to this Agreement, during the term of this Agreement, will make reference to the Contribution of the County of Riverside, the Economic Development Agency, and the Community Development Block Grant Program in making the project possible. a J 2 3 A 15 ?6 t7 N 18. PROGRAM MONITORING AND EVALUATION. CITY and its subrecipients hall be monitored and evaluated in terms of its effectiveness and timely compliance with the irovisions of this Agreement and the effective and efficient achievement of the Program )bjectives. Quarterly reports shall be due on the last day of the month immediately following he end of the quarter being reported. The quarterly written reports shall include, but shall not be imited to, the following data elements: a. Title of program, listing of components, description of activities/operations. b. The projected goals, indicated numerically, and also the goals achieved (for each report period). In addition, identify by percentage and description, the progress achieved towards meeting the specified goals and identify any problems encountered in meeting goals. C. If the CDBG-funded Activity meets a National Objective under 24 CFR 570.208 (a)(2)(i), CITYwill report the following: household incomes at: 1) Total number of direct beneficiaries (clientele served) with • Above 80% MHI • Between 50% and 80% MHI (Low -Income) • Between 30% and 50% MHI (Very Low -Income) • Less than 30% MHI (Extremely Low -Income) 2) Total number and percent (%) of the clientele served that have `household incomes at or below 80% MHI 3) Racial ethnicity of clientele 4) Number of Female -Headed Households CITY and its subrecipients shall report beneficiary statistics monthly to EDA on the pre - approved Direct Benefit Form and Self -Certification Form (certifying income, family size, and racial ethnicity) as required by HUD. Updated forms are to be provided to CITY by EDA should HUD implement changes during the term of this agreement. r 1 I 3 4 5 6 7 8 CITY and subrecipients will collect and provide all necessary data required by HUD iertaining to the Specific Outcome Indicators as identified in the CPD Outcome Performance vleasurement System. 19. ENTIRE AGREEMENT. It is expressly agreed that this Agreement together with he cooperation Agreement between the parties, embodies the entire agreement of the parties in -elation to the subject matter thereof, and that no other Agreement or understanding, verbal or )therwise, relative to this subject matter, exists between the parties at the time of execution. 20. MINISTERIAL ACTS. The Assistant County Executive Officer/EDA or designee(s) are authorized to take such ministerial actions as may be necessary or appropriate to implement the terms, provisions, and conditions of this Agreement as it may be amended from time to time by COUNTY. 21. PRIOR AUTHORIZATION. CITY shall obtain COUNTY's written approval from the Economic Development Agency prior to implementing the following "high risk" activities funded with CDBG assistance: a. Construction of public facilities (project plans and specifications); b. Acquisition of real property; // // // // C. Historic Preservation; d. Relocation; and e. Economic Development 22. MODIFICATION OF AGREEMENT. This Agreement may be modified or amended only by a writing signed by the duly authorized and empowered representative of COUNTY and CITY respectively. I DATED: I COUNTY OF RIVERSIDE I Bv: Deputy Director SH:JT:MT:sj CITY OF LA QUINTA By: Mayor S TDBGWb 7 CDBG Mnw TrukengTity -U Qumh\SuppietnenWi Ageement u Quin. mind dm I n J Prohibition Against Conflicts of Interest EXHIBIT CI , page 1 of 4 41 Conflict of interest. Applicability. (1) In the procurement of supplies, equipment, construction, and services by recipients, and by ipients (including those specified at § 570.204(c)), the conflict of interest provisions in 24 CFR 85.36 and --ircular A 110, respectively, shall apply. (2) In all cases not governed by 24 CFR 85.36 and OMB Circular A-110, the provisions of thi: i shall apply. Such cases include the acquisition and disposition of real property and the provision o: nce by the recipient, by its subrecipients, or to individuals, businesses and other private entities unde e activities which authorize such assistance (e.g., rehabilitation, preservation, and other improvements o properties or facilities pursuant to § 570.202, or grants, loans and other assistance to businesses duals and other private entities pursuant to § 570-203, § 570.204 or § 570.455). Conflicts prohibited. Except for the use of CDBG funds to pay salaries and other related administrativ sonnel costs, the general rule is that no persons described in paragraph (c) of this section who exercise c -xercised any functions or responsibilities with respect to CDBG activities assisted under this part or wh a position to participate in a decision making process or gain inside information with regard to suc ties, may obtain a personal or financial interest or benefit from a CDBG assisted activity, or have a st in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either fr >elves or those with whom they have family or business ties, during their tenure or for one year thereafte ie UDAG program, the above restrictions shall apply to all activities that are a part of the UDAG projec hall cover any such interest or benefit during, or at any time after, such person's tenure. Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any pers( is an employee, agent, consultant, officer, or elected official or appointed official of the recipient, or of ar ;Hated public agencies, or subrecipients which are receiving funds under this part. Exceptions: threshold requirements. Upon the written request of the recipient, HUD may grant ption to the provisions of paragraph (b) of this section on a case -by -case basis when it determines that sw xception will serve to further the purposes of the Act and the effective and efficient administration of t )ient's program or project. An exception may be considered only after the recipient has provided t swing: (1) A disclosure of the nature of the conflict, accompanied by an assurance that there has be iic disclosure of the conflict and a description of how the public disclosure was made; and (2) An opinion of the recipient's attorney that the interest for which the exception is sought woul( Violate State or local law. Prohibition Against Conflicts of Interes EXHIBIT Cl, page 2 of I Factors to be considered for exceptions. In determining whether to grant a requested exception after th( ;nt has satisfactorily met the requirements of paragraph (d) of this section, HUD shall consider th( ative effect of the following factors, where applicable: (1) Whether the exception would provide a significant cost benefit or an essential degree o :ise to the program or project which would otherwise not be available; (2) Whether an opportunity was provided for open competitive bidding or negotiation; (3) Whether the person affected is a member of a group or class of low or moderate incom as intended to be the beneficiaries of the assisted activity, and the exception will permit such person t ,e generally the same interests or benefits as are being made available or provided to the group or class; (4) Whether the affected person has withdrawn from his or her functions or responsibilities, or th ion making process with respect to the specific assisted activity in question; (5) Whether the interest or benefit was present before the affected person was in a position a ibed in paragraph (b) of this section; (6) Whether undue hardship will result either to the recipient or the person affected when weighe st the public interest served by avoiding the prohibited conflict; and (7) Any other relevant considerations. 17 .J Prohibition Against Conflicts of Interesl Exhibit Cl, page 3 of 4 CONFLICT OF INTEREST CODED RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY October 1989 Conflict of Interest Code is written to comply with Federal Regulations (24 CFR Part 85). Then ations. Administrative Requirements for Grants and Cooperative Agreements to State, Local an( ally Recognized Indian Tribal Governments" require that grantees and sub -grantees will maintain ; n code of standards of conduct governing the performance of their employees engaged in the award am rstration of contracts. No employee, officer or agent of the grantee shall participate in the selection, in the award or in th castration of a contract supported by Federal Funds if a conflict of interest, real or apparent, would b ved. Such a conflict will arise when: i) The employee, officer or agent; ii) Any member of the immediate family; iii) His/Her partners, or; iv) An organization which employs, or is about to employ any of the above has a financial or oth( interest in the firm's selection for award. The grantee's or sub -grantee's officers, employees or agents will neither solicit nor accept gratuitie rs or anything of monetary value from contractors or parties to sub -agreements except as noted in Sectic A grantee's or sub -grantee's officers, employees or agents will be presumed to have a financial intere business if their financial interest exceeds the following: i) Any business entity in which the official has a direct or indirect investment worth one thousand dollars ($1,000) or more. ii) Any real property in which the official has a direct or indirect interest worth one thousand dollars ($1,000) or more. Prohibition Against Conflicts of Interes Exhibit Cl, page 4 of � CONFLICT OF INTEREST CODE RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY October 1989 iii) Any source of income, other than gifts and other than loans by a commercial lending institutio: in the regular course of business on terms available to the public without regard to offick status, aggregating two hundred fifty dollars ($250) or more in value provided to, received by c promised to the official within 12 months prior to the time when the decision is made. iv) Any business entity in which the official is a director, officer, partner, trustee, employee, ( holds any position of management. v) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating M hundred fifty dollars ($250) or more in value provided to, received by, or promised to tt official within 12 months prior to the time when the decision is made. For purposes of Section 4, indirect investment or interest means any investment or interest owned 1 pouse or dependent child of an official, by an agent on behalf of an official, or by a business entity or tru rhich the official, the official's agents, spouse, and dependent children own directly, indirectly, ficially a 10-percent interest or more. EXHIBIT 'B CONSTITUTIONAL PROHIBITIO. Page 1 of accordance with First Amendment Church/State Principles, as a general rule, CDBG/ESG assistance ay not be used for religious activities or provided to primarily religious entities for any activities, .eluding secular activities. The following restrictions and limitations therefore apply to the use of DBG/ESG funds. (1) CDBG/ESG funds may not be used for the acquisition of property or the construction or ;habilitation (including historic preservation and removal of architectural barriers) of structures to be sed for religious purposes or which will otherwise promote religious interests. This limitation includes ie acquisition of property for ownership by primarily religious entities and the construction or -habilitation (including historic preservation and removal of architectural barriers) of structures owned y such entities (except as permitted under paragraph 6) (2) of this section with respect to rehabilitation nd under paragraph 0) (4) of this section with respect to repairs undertaken in connection with public ervices) regardless of the use to be made of the property or structure. Property owned by primarily eligious entities may be acquired with CDBG/ESG funds at no more than fair market value for a non- eligious use. (2) CDBG/ESG funds may be used to rehabilitate buildings owned by primarily religious ;ntities to be used for a wholly secular purpose under the following conditions: (i) The building (or portion thereof) that is to be improved with the CDBG/ESG issistance has been leased to an existing or newly -established wholly secular entity (which may be an -ntity established by the religious entity); (ii) The CDBG/ESG assistance is provided to the lessee (and not the lessor) to make the improvements; (iii) The leased premises will be used exclusively for secular purposes available to persons regardless of religion; (iv) The lease payments do not exceed the fair market rent of the premises as they were before the improvements are made; (v) The portion of the cost of any improvements that also serve a non -leased part of the building will be allocated to and paid for by the lessor; (vi) The lessor enters into a binding agreement that unless the lessee, or a qualified successor lessee, retains the use of the leased premises for a wholly secular purpose for at least the useful life of the improvements, the lessor will pay to the lessee an amount equal to the residual value of the improvements; (vii) The lessee must remit the amount received from the lessor under subparagrapl (2)(vi) of this section to the recipient or subrecipient from which the CDBG/ESG funds were derived. EXHIBIT "R CONSTITUTIONAL PROHIBITIOl Page 2 of ie lessee can also enter into a management contract authorizing the lessor religious entity to use the iilding for its intended secular purpose, e.g., homeless shelter, provision of public services. In such ise, the religious entity must agree in the management contract to carry out the secular purpose in a ,anner free form religious influences in accordance with the principles set forth in paragraph 0)(3) of its section. (3) As a general rule, CDBG/ESG funds may be used for eligible public services to be rovided through a primarily religious entity, where the religious entity enters into an agreement with to recipient or subrecipient from which the CDBG/ESG funds are derived that, in connection with the rovision of such services: (i) It will not discriminate against any employee or applicant for employment on the ,asis of religion and will not limit employment or give preference in employment to persons on the basis if religion. (ii) It will not discriminate against any person applying for such public services on he basis of religion and will not limit such services or give preference to persons on the basis of cligion; (iii) It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services; (iv) The portion of a facility used to provide the public services shall contain no religious symbols or decorations, other than those permanently affixed to or part of the structure. (4) Where the public services provided under paragraph 6)(3) of this section are carried out on property owned by the primarily religious entity, CDBG/ESG funds may also be used for minor repairs to such property which are directly related to carrying out the public services where the cost constitutes in dollar terms only an incidental portion of the CDBG/ESG expenditure for the public services. n EXHIBIT "S", page 1 of I onomic Opportunities for Section 3 Residents and Section 3 Business Concerns c. 135.38 Section 3 clause. a section 3 covered contracts shall include the following clause (referred to as the section 3 clause): The work to be performed under this contract is subject to the requirements of section 3 of the ousing and Urban Development Act of 1968, as amended, 12 U.S.C. 170lu (section 3). The purpose of oction 3 is to ensure that employment and other economic opportunities generated by HUD assistance : HUD -assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low - id very low-income persons, particularly persons who are recipients of HUD assistance for housing. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which nplement section 3. As evidenced by their execution of this contract, the parties to this contract certify iat they are under no contractual or other impediment that would prevent them from complying with ie part 135 regulations. The contractor agrees to send to each labor organization or representative of workers with which he contractor has a collective bargaining agreement or other understanding, if any, a notice advising the abor organization or workers' representative of the contractor's commitments under this section 3 Jause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the >ection 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with section 3 covered Indian housing assistance section 7(b) of the Indian Self -Determination and Education Assistance Act (25 U.S.C. 450e) alsc applies to the work to be performed under this contract. Section 7(b) requires that to the greatest exten feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 am section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation o compliance with section 7(b). EXHIBIT A Page 1 of 6 4.LQ036 CDBG SUPPLEMENTAL AGREEMENT SCOPE OF WORK (NON-PUBLIC SERVICE) I. GENERAL INFORMATION CITY NAME: City of La Quinta ADDRESS: PO Box 1504 La Quinta,CA 92247 PROGRAM CONTACTS: Fred Baker, Community Development Director PHONE: (760) 777-7065 FAX: E-MAIL: PROJECT NAME: xo rn A Bout intersection Reconstructs on 9 L0036 PROJECT LOCATION: Avenida Montezuna & Avenida Navarro LEVEL OF ENVIRONMENTAL CLEARANCE: Categorical Exclusion 58.35 (a)(I) CDBG ELIGIBILITY CODE: 570.201 (c) Public Facilities 03K PROJECT FUNDING SUMMARY 1ST District $0 4 h District $0 2nd District $0 5 h District $0 3rd District $0 City Funding $162,274 Project to be administered by County (EDA) on behalf of City: YES ❑ NO 0 II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2006-2007 Community Development Block Grant for the Round -A -Bout Intersection Reconstruction in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity 41 The City will use CDBG funds for the engineering and design of street improvements to improve traffic flow and pedestrian safety at the intersection of Avendia Montezuma and Avenida Navarro. EXHIBIT A Page 2 of 6 4.LQ036 B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: Low Mod Area CFR Reference: 570 208(b)(1) — C. Levels of Accomplishment — Goals and Performance Measures The City agrees to implement and complete the following activity (ies): Activity #1 Design and engineering of street improvements. To improve traffic flow and pedestrian safety. CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): O Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability/Accessibility ❑ Affordability O Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County EXHIBIT A Page 3 of 6 4.LQ036 E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. F. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $162,274. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CFR 84.21. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City. Line Item Amount: Design/Engineering Costs $162,274 Project Administration Costs Construction Costs Acquisition Costs Relocation Costs Capital Equipment Costs Code Enforcement Clearance Interim Assistance Other TOTAL CDBG BUDGET EXHIBIT A Page 4 of 6 4.LQ036 III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non -Profit Organizations," A-21, "Cost Principles for Educational Institutions," or OMB Circular A-87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis C. Documentation and Record Keeping Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. 2. Records Retention The City shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, EXHIBIT A Page 5 of 6 4.LQ036 audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five- year period, whichever occurs later. 3. Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Close-outs The City's obligation to the County shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. 6. Audits & Insnections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A-133. nnr EXHIBIT A Page 6 of 6 4.LQ036 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre -approved by County, City will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Implement Project Activities Execute Supplemental Agreement & Notice to Incur Cost Submit Quarterly Performance Reports to County County Monitoring of City Program/Performance City Submits Reimbursement Requests Monthly Submittal ❑ Other Schedule CDBG-funded Project Complete Upon Notification from EDA November 2006 October 15, 2006 November 2006 April 30, 2008 To be determined by Program Manager TBD V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS May 15.2008 EXHIBIT B Page I of 6 4.LQ037 SUPPLEMENTAL AGREEMENT SCOPE OF WORK — PUBLIC SERVICE I. GENERAL INFORMATION CITYNAME: City of La Quinta ADDRESS: PO Box 1504 La Quinta,CA 92247 CITY PROGRAM CONTACTS: Fred Baker, Community Development SUBRECIPIENTNAME: Boys & Girls Club of Coachella Valley - La Quinta Unit ADDRESS: 49 995 Park Avenue La Quinta CA 92253 PROGRAM CONTACT: Jim Ducatte, (760) 836-1160 PHONE: (760) 777-7065 FAX: E-MAIL: PROJECT NAME: Membership Fees Waiver/Reduction Program, 4.LQ037 PROJECT LOCATION: 49-995 Park Ave., La Quinta, CA 92253 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)] CDBG ELIGIBILITY CODE: 24 CFR 570.201(e) Public Services PROJECT FUNDING SUMMARY: 1ST District $0 4s' District $0 2nd District $0 5 h District $0 3rdDistrict $0 City Funding $28,637 Project to be administered by County (EDA) on behalf of CITY: YES ❑ NO IT II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2006-2007 Community Development Block Grant for the Membership Fee Waiver/Reduction Program in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these fupds. , Such program will include the following activities eligible under the Community Development Block Grant program: EXHIBIT B Page 2 of 6 4.LQ037 Activity #1 Sponsor will utilize CDBG funds to provide financial assistance to families that are low/ mod income to lower the cost for their child to attend and participate in Boys and Girls Club events and facilities. B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certifies that the activity (ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: Low Mod Limited Clinetele Income Certification CFR Reference: 570.208 (a)(2)(i)(B) C. Levels of Accomplishment — Goals and Performance Measures The City agrees to provide the following levels of program services: Activity Units Total Total per Month Units/Year Unduplicated Persons Activity #1 75 75 Unit of Service is defined as: Number of Children enrolled in the Boys and Girls Club program using the Fee waiver. CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): O Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability/Accessibility x❑Affordability ❑ Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. a EXHIBIT B Page 3 of 6 4.LQ037 E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. F. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $28,637. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CFR 84.21. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City. Line Item Amount: Direct Program Expenses Salaries $ Fringe Office Space (Program only) Utilities Communications Reproduction/Printing Supplies and Materials Mileage Equipment (Program Only) Audit Transportation Other (Fee Waivers) 28,637 Total Direct Program Costs Indirect Costs (Specify)* Total Indirect Costs TOTAL CDBG BUDGET All indirect costs must be pre -approved by the County. City must submit an Indirect Cost Allocation Plan to County, in a form specified by County, demonstrating the appropriate share of general and administrative costs. EXHIBIT B Page 4 of 6 4.LQ037 III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non -Profit Organizations," A-21, "Cost Principles for Educational Institutions," or OMB Circular A-87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis C. Documentation and Record Keeping I. Records to be Maintained The City and its subrecipients will maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. 2. Records Retention The City shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retentigiz period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five- year period, whichever occurs later. EXHIBIT B Page 5 of 6 4.LQ037 Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Close-outs The City's obligation to the County shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. 6. Audits & Insnections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A-133. EXHIBIT B Page 6 of 6 4.LQ037 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre -approved by County, CITY will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Execute Subrecipient Agreements July 1, 2006 --- (EDA must approve) Implement Program Activities July 1, 2006 TBD Execute Supplemental Agreement November 2006 November 2006 & Notice to Incur Cost City Submit Quarterly October 15, 2006 July 31, 2007 Performance Reports to County County Monitoring of City Ongoing Ongoing Performance City submit Monthly September 2006 July 2007 Direct Benefit Reports City Submits Reimbursement Requests Monthly Submittal ® September 2006 May 15, 2007 Other Schedule ❑ CDBG Program Services Complete V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS June 30, 2007 Sponsor must provide monthly requests for reimbursement and submit direct benefit reports. a `u"dQ 0`` cFM OF T1'� COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Approval of a Housing Relocation Plan for 46-150 Dune Palms Road and 46-130 Dune Palms Road RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: /9 Approve the Relocation Plan for 46-150 Dune Palms Road and 46-130 Dune Palms Road and authorize the City Manager to begin the 30-day review period. FISCAL IMPACT: Implementing the Relocation Plan will result in the expenditure of up to $150,000 for resident relocation costs. Funds are available from the Unreserved Fund Balances in Low- and Moderate -Income Fund Project Area 2. BACKGROUND AND OVERVIEW: In September 2005, the Agency Board directed staff to contact property owners in the Dune Palms Road corridor (north of the Whitewater River and south of Westward Ho Drive) to ascertain their interest in selling their property to the Agency Board. The Agency Board would like to assemble six parcels located along the Dune Palms Road corridor so that the properties may be assembled to accommodate an affordable housing development. Four of the property owners contacted by staff initially expressed interest in selling their property. To date, staff has successfully negotiated purchase agreements with two owner -occupied single-family residences. The Relocation Plan for the Dune Palms Road Project approved by the City Council on March 21, 2006, was used to successfully relocate the two owner -occupied single-family residents. Attachment 1 is a map illustrating the properties staff has acquired to date and properties that need to be acquired'. The County of Riverside Assessor's Office changed parcel map book number 649-04 to 600-03 beginning in fiscal year,2006-07 to accommodate for an increase of parcel numbers in that area. The owners of Assessor Parcel Number 600-030-002 and 600-030-003 have also expressed interest in relocating. Prior to considering property purchase agreements with these parties, the California Community Redevelopment Law and the California Relocation and Real Property Acquisition Guidelines require the Agency to prepare and submit a Relocation Plan for City Council review and approval. Attachment 2 is the Relocation Plan for 46-130 and 46-150 Dune Palms Road for Council consideration. The Relocation Plan presents: o Household demographic characteristics and relocation needs based on personal interview survey data o An assessment of the availability of comparable replacement housing within the City of La Quinta and the surrounding community o The steps and procedures the Agency will follow to ensure a fair and equitable relocation program o An estimate of the potential relocation costs. The data presented in the Relocation Plan was compiled by interviews conducted in October and November of 2006. When interviewed, the household at 46-130 expressed a desire to relocate along California State Highway 74 south of Palm Desert. The owner -occupied household is a very low—income family, consisting of three adults and one child, and is English speaking. The household at 46-150 is occupied by owner occupants, consisting of two adults and one child. The household is a low-income family and is English speaking. When interviewed, the household indicated a desire to relocate to another La Quinta property within the Amelia Earhart School District. The Relocation Plan also details the relocation assistance program and the scope of the relocation benefits. The relocation assistance program generally entails: o Informing residents of their relocation rights and the scope of the relocation benefits; o Determining each household's specific housing needs; o Identifying and updating information on replacement housing opportunities; e Identifying Federal, State and other governmental agency housing program assistance; o Assisting each person with completing relocation assistance applications; o Assisting each displace with finding replacement housing opportunities; o Providing relocation payments in accordance with all State standards; o Establishing an appeal procedure with respect to disputes over relocation benefits. J' The scope of relocation benefits needed for the household entails: Providing moving expense payments based upon the actual cost of using a professional mover or based upon a fixed payment schedule if residents elect to move themselves; A home purchase price differential payment based upon the difference between the appraised value of the resident's home and the cost to purchase a comparable replacement dwelling; Incidental expense payments including legal, closing cost title and other costs related to purchasing a comparable replacement dwelling. The total relocation costs are estimated to range from $120,000 to $150,000. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Approve the Relocation Plan for 46-130 and 46-150 Dune Palms Road and authorize the City Manager begin 30 day review period; or 2. Do not approve the Relocation Plan for 46-130 and 46-150 Dune Palms Road; or 3. Provide staff with alternative direction. Respectfully submitted, -- fiOWW4"�!� Doug as JVEvans Community Development Director Approved for submission, Thomas P. Genovese, City Manager Attachments: 1 . Dune Palms Road Corridor Acquisition Status Map 2. Relocation Plan ATTACHMEW Dune Palms Road Corridor Acquisition Status Map Acquired Parcels Acquisition & Relocation Initiated ® Presently Not Sought Previously Acquired for Well Site = Rejected Offers J ATTACHMEN 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA QUINTA REDEVELOPMENT AGENCY RSG INTELLIGENT COMMUNITY DEVELOPMEN 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA QUINTA REDEVELOPMENT AGENCY CONTENTS OF THIS RELOCATION PLAN i_ INTRODUCTION................................................................................................1 A. ASSESSMENT OF NEEDS................................................................................1 B. REPLACEMENT HOUSING RESOURCES........................................................2 C. CONCURRENT RESIDENTIAL DISPLACEMENT.............................................3 D. TEMPORARY HOUSING....................................................................................3 E. PROGRAM ASSURANCES AND STANDARDS................................................3 F. RELOCATION ASSISTANCE PROGRAM......................................................... 4 G. CITIZEN PARTICIPATION/PLAN REVIEW........................................................4 H. RELOCATION BENEFIT CATEGORIES............................................................4 I. PAYMENT OF RELOCATION BENEFITS..........................................................6 J. APPEALS POLICY.............................................................................................6 K. PROJECTED DATES OF DISPLACEMENT....................................................... 7 L. ESTIMATED RELOCATION COSTS.................................................................. 7 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA QUINTA REDEVELOPMENT AGENCY I. INTRODUCTION The La Quinta Redevelopment Agency ("Agency') established Project Area No. 2 in May, 1989 to provide a mechanism to remove impediments to commercial and residential development, to address public infrastructure and facility deficiencies, and to increase and improve the community's supply of affordable housing. The properties along Dune Palms Road ("Project Site") are within Project Area No. 2 and are being considered by the Agency as a site for the development of affordable housing. This action may result in the purchase and development of properties within the Project Site and as a result, two households will have to be permanently displaced. The acquisition of the Project Site will be pursued pursuant to negotiated acquisition by the property owners. The location of the housing, which is the subject of this plan, is generally described as being located near the southeast corner of Dune Palms Road and Westward Ho Drive and is more particularly described as Assessor Parcel Number 600-030-002 and 600-030-003. The location is displayed on Attachment I and 1b. This Relocation Plan ("Plan") describes the affected buildings and occupants and discusses the Relocation Assistance that will be made available to the occupants. Rosenow Spevacek Group, Inc. ("RSG") has prepared and will administer the Plan under the direction of the Agency and will act as the relocation consultant for this Plan. This Plan provides the results of a needs assessment survey, a housing resource study, and details of the Agency's proposed relocation assistance program. Furthermore, this Plan sets forth policies and procedures necessary to conform with statutes and regulations established by the California Relocation Assistance Law, California Government Code section 7260 et seq. ("CRAL") and the California Relocation Assistance and Real Property Acquisition Guidelines, Title 25, California Code of Regulations, chapter 6, section 6000 et seq. ("Guidelines"). No displacement activities will take place prior to the required reviews and approval of this Plan. A. ASSESSMENT OF NEEDS To obtain information for the preparation of this Plan, personal interviews were conducted with the households living in the Project Site. The inquiries made of the households concerned household size and composition, income, length and type of occupancy, ethnicity, home language, disabilities/health problems, and replacement housing preferences. The interviews were conducted on -site during October and November of 2006. The descriptive data in this Plan is based solely on the responses provided by the households. No attempt was made to qualify income or other information provided by residents. occupancy/Overcrowding There are two households encompassed in this Plan. One household is composed of three residents residing in a two -bedroom home. The second household is composed of four residents residing in a three -bedroom home. ))RSG Page 1 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA QUINTA REDEVELOPMENT AGENCY Income Income information was provided by the households. According to income standards for the County of Riverside (Attachment 2), adjusted for family size as published by the United States Department of Housing and Urban Development ("HUD"), one household is categorized as very low income and the other as low income. Ethnicity/Language The Project Site households identified themselves as Caucasian (6) and Hispanic (1). All members of the households reported the primary language as English. Senior/Handicapped Households There are no seniors (62 years or older) and no handicapped individuals. None of the households indicated that they require any special accommodations or have any specific facility needs. Table 1 shows some of the households' characteristics and needs. Table 1: Housing Description Occu nc Houshold Size Room Count Ethnii Lanqua a Seniors Income Levels Owners Tenant Adults Children Bedrooms Bath Total Caucasian Hispanic En lish S apish Its n/a 3 3 2 7 4 0 4 0 Na veryLow Income Yes n/a 2 1 2 1 6 2 1 3 0 Na I Low Income Sou,ce Survey of propertyowners The Project Site The Project Site is situated on the southeast corner of Dune Palms Road and Westward Ho Drive. La Quinta High School is directly in front of the Project Site and Amelia Earhart Elementary School, and John Glen Middle School are within short driving distance. The Project Site is located within close proximity to a community park, a Fire Station, shopping centers, and grocery stores. Preferred Relocation Areas and Location Needs One Project Site household expressed a desire to remain in La Quinta within the Amelia Earhart School District, and the other a desire to leave La Quinta and relocate along California State Highway 74 south of Palm Desert. Both households are only interested in home ownership. No other additional or special relocation needs (i.e. proximity to public transportation, employment, medical facilities, public/social services and agencies, recreational services, parks, community centers, and shopping) were expressed by the households. A. REPLACEMENT HOUSING RESOURCES A resource survey was conducted in October and November of 2006 to identify available comparable, decent, safe, and sanitary units available in close proximity to the Project Site. One two -bedroom unit and one three -bedroom unit are required to adequately relocate the Project Site households. Replacement property was identified in consultation with a local realtor, through internet research, and MLS searches. 07RSG Page 2 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA QUINTA REDEVELOPMENT AGENCY The survey focused on confirming the availability of comparable, decent, safe, and sanitary units, which contain the required minimum number of bedrooms, an area of adequate size for the households, and an area comparable with respect to the number of rooms and habitable living space. Attachment 3a provides a list of comparables (as defined in Guideline section 6008) in La Quinta based on the results of the homeowner surveys. The replacement houses have a similar lot size and living area to the homeowner's original property. B. CONCURRENT RESIDENTIAL DISPLACEMENT There are no other known projects currently underway that will compete for similar replacement housing in the City of La Quinta. C. TEMPORARY HOUSING There is no anticipated need for temporary housing because relocation will not occur until the Agency has entered binding agreements to acquire the property from the owners and it is expected that the owners shall acquire replacement housing prior to moving from the Project Site. Should such a need arise, the Agency will respond appropriately and in accordance with all applicable laws and requirements. D. PROGRAM ASSURANCES AND STANDARDS Adequate funds are and will be made available to accommodate the payment of all required relocation benefits. Services will be provided to ensure that displacement does not result in different or separate treatment of households based on race, nationality, color, religion, national origin, sex, marital status, familial status, disability or any other basis protected by the federal Fair Housing Amendments Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the California Fair Employment & Housing Act, and the Unruh Act, as well as any other arbitrary or unlawful discrimination. No one will be displaced without 90 days notice and unless "comparable" replacement housing can be located and is available. "Comparable" housing includes standards such as: decent, safe, and sanitary (as defined in § 6008(d) of the Guidelines); comparable as to the number of bedrooms, living space, and type and quality of construction of the acquired unit but not lesser in rooms or living space than necessary to accommodate the displaced households; in an area that does not have unreasonable environmental conditions; not generally less desirable than the acquired unit with respect to location to schools, employment, health and medical facilities, and other public and commercial facilities and services; and within the financial means of the displaced households as defined in section 6008, subdivision (c)(5) of the Guidelines. The relocation program to be implemented by the Agency conforms to the standards and provisions set forth in Government Code section 7260 et seq., the Guidelines, California Health and Safety Code section 33410 et seq., if applicable, and all other applicable regulations and requirements. *JRSG Page 3 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA OUINTA REDEVELOPMENT AGENCY E. RELOCATION ASSISTANCE PROGRAM Staff is available to assist any displaced households with questions about relocation and/or assistance in relocating. Jon McMillen, the Acquisition Coordinator, can be contacted at (760) 212-2322 from 8:30 am to 5:00 pm, Monday through Friday. A comprehensive relocation assistance program, with technical and advisory assistance, will be provided to the households being displaced. Close contact will be maintained with the households. Specific activities will include: Distribution of an informational brochure. (see Attachment 4) 2. Timely referrals to at least three comparable replacement units as defined above and, if necessary, transportation will be provided to inspect potential replacement units. 3. Assistance with completion and filing of relocation claims, loan applications, and appeals forms, if necessary. F. CITIZEN PARTICIPATION/PLAN REVIEW This Plan will be provided to the households and will be made available to the public for the mandatory thirty (30) day review period. Comments to this Plan will be included as a Plan addendum prior to submission for approval before the Agency. A copy of the approved Plan will be forwarded to the California Department of Housing and Community Development ("HCD"). G. RELOCATION BENEFIT CATEGORIES Relocation benefits will be provided in accordance with the CRAL, the Guidelines, and all other applicable regulations and requirements. Benefits will be paid upon submission of required claim forms and documentation in accordance with approved procedures. The Agency will provide appropriate benefits for the displaced households as required by law. Residential Moving Expense Payments The subject households will be eligible to receive a payment for moving expenses. Payments will be made based upon either a fixed room count schedule or an invoice for actual reasonable moving expenses from a licensed professional mover. The method of moving expense payments may be selected by the households. 1)p RSG Fixed Payment - A fixed payment for moving expenses based on the number of rooms containing furniture or other personal property to be moved. The fixed moving payment will be based upon the most recent Federal Highway Administration schedules maintained by the California Department of Transportation. (See Attachment 5) Ima Actual Reasonable Movino Expense Payments - The displaced households may elect to have a licensed, professional mover perform the move; if so, the Agency will pay for the �r Page 4 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA OUINTA REDEVELOPMENT AGENCY actual cost of the move up to 50 miles and all reasonable charges for packing, unpacking, insurance, and utility connection charges. The payment will be made directly to the mover or as reimbursement to the displaced households. Assistance to Homeowners It is anticipated that two homeowner households will be displaced. Displaced homeowners will be eligible for relocation replacement housing payments if the following conditions are met: a. The households has owned and occupied their unit for not less than 180 days prior to the "Initiation of Negotiations." and b. The households purchases and occupies a replacement unit within one year from: (i) the date that the households receives the final payment from the Agency for all the costs of the acquired unit - or- (ii) the date that the households vacates the acquired unit, whichever is later. Displaced homeowner households will receive assistance in locating a "comparable replacement" unit and will be eligible for the following benefits: &�RSG 1. Purchase Price Differential: The displaced households will be entitled to receive an amount equal to the difference between the price paid for the acquired unit and the amount required to purchase a "comparable replacement" unit. The Agency will utilize a Comparative Method (as explained in section 6102 of the Guidelines) to calculate any price differential. Comparative Method: On a case -by -case basis, the Agency will determine the price of a "comparable replacement" unit, which is most representative of the acquired unit, by selecting and considering the listing price of at least three (whenever possible) "comparable replacement" units. (25 Cal. Code Regs. Sec. 6102 (c)(1)(A)(1).) The Price Differential is the difference between the acquisition cost of the displacement dwelling and the lesser of the following two amounts: • The price the displaces actually paid for the replacement dwelling; or The price of a comparable dwelling as determined by the Agency. 2. Other Payments: Moreover, displaced homeowners will receive the following assistance: (a) Payments to cover the cost between the difference of the household's current debt or mortgage service and any increase in debt or mortgage costs necessary to acquire a "comparable replacement" housing unit; and Page 5 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA QUINTA REDEVELOPMENT AGENCY (b) Incidental and reasonable one-time costs for acquiring a replacement unit, such as escrow costs, and recording and credit reporting fees. 3. Rental Assistance Option: If a displaced homeowner households, which has purchased and occupied its current unit at least 180 days prior to the "initiation of negotiations," desires to rent instead of purchase a replacement unit, the households is eligible for all the benefits and assistance that is available to tenant households. However, such replacement housing payments may not exceed the payments the households would have been entitled to if it had elected to purchase a replacement unit. 4. Last Resort Housing Payments: There is currently sufficient comparable replacement housing for homeowner households and the Agency does not anticipate a lack of sufficient comparable replacement housing in the near future. However, should such a situation arise, the Agency will respond appropriately and in conformance with all applicable laws and requirements. H. PAYMENT OF RELOCATION BENEFITS Relocation benefit payments will be made expeditiously. Claims and supporting documentation for relocation benefits must be filed with the Acquisition Coordinator within eighteen (18) months from: (i) the date the claimant moves from the acquired property; -or- (ii) the date on which final payment for the acquisition of real property is made, whichever is later. The Acquisition Coordinator will then submit the relocation benefit claim form to the City Finance Department for review and payment, if appropriate. Failure to submit claims within the 18 month period will prevent the Agency from paying such claims. No households will be displaced until "comparable" housing is located as defined above and in section 6008, subdivisions (c) and (d) of the Guidelines. Relocation staff will inspect any replacement units to which referrals are made to verify that they meet all the standards of decent, safe, and sanitary as defined in section 6008, subdivision (d) of the Guidelines. However, no households will be denied benefits if it chooses to move to a replacement unit which does not meet the standards of decent, safe, and sanitary housing. 1. APPEALS POLICY The appeals policy will follow the standards described in section 6150 et seq. of the Guidelines as supplemented by the Agency's approved Grievance Procedures (See Attachment 6). Briefly stated, the displaced households will have the right to ask for a review when there is a complaint regarding any of its rights to relocation and relocation assistance, such as a determination as to eligibility, the amount of payment, or the failure to provide a comparable replacement housing referral. The request for review must be made within eighteen (18) months from: (i) the date the claimant moves from the acquired property; -or- (ii) the date on which final payment for the acquisition of real property is made, whichever is later. Failure to make a timely request for review will result in your request being denied. , j)RSG Page 6 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA QUINTA REDEVELOPMENT AGENCY J. PROJECTED DATES OF DISPLACEMENT Households will receive a 90 day notice to vacate before they are required to move. These notices are expected to be issued on or about April 1, 2007. Relocation is expected to be completed on or about July 1, 2007. K. ESTIMATED RELOCATION COSTS The Agency anticipates using the following funds for the Project: Project Area No. 2, Low and Moderate Housing Funds The following estimates are for budgeting purposes only. These figures should not be interpreted as firm, "not to exceed" or actual entitlement costs. These figures are based on the data obtained through occupant interviews, replacement site availability, market rate research, and the judgment of the Agency staff. They do not include payments to consultants or to contractors. Any and all required financial assistance will be provided. The budget estimate is: Table 2: Project Cost Estimate Low Estimate High Estimate $120,000 $150,000 R5G Page 7 46130 & 46150 DUNE PALMS ROAD RELOCATION PLAN LA QUlNTA REDEVELOPMENT AGENCY INDEX OF TABLES & ATTACHMENTS TABLES Table 1: Housing Description Table 2: Estimated Relocation Costs ATTACHMENTS Attachment la: Regional Site Map Attachment 1b: Project Site Map Attachment 2: HUD Income Category Limits for Riverside County Attachment 3: Housing Resource Survey — Two and Three Bedroom Comparables Attachment 4: Relocation Assistance To Displaced Homeowner Occupants (Brochure) Attachment 5: Fixed Payment Moving Schedule Attachment 6: Grievance Process R5G Page 8 Attachment 1a: Regional Site Map � Waadhav�r� 12nd Ave palm .... ._.... {: � 4 serrpuda Oun Desert :. CbwtYt'Y %my Rd COVO(y Ctub ' a> 2m MapC ww' Irw *) RSG Frc fWaranq�Dr w i t Mlles Ave _ rripr�,t «4jSYfllif5 ' sau 6 COfnoy i �rhrb �4, v ue Aven.48 w._ ... �. _ EI �'• � 42nd_Arrt...____...... . E b Avenue 46 5 02006 NRVTEQ Page 9 Attachment 1b: Project Site Map .... i 604480028 ...... .. .. 80#570037� !t 60457004/ 804570038, 004570035 8044800804570040 004570038.��,,,,,� 80#87_0038��� 30 804480029 804A800#8 ..�J'". 894570040 �80448003 .. . i WWTWARD#O DR 600030001 600030002 600030003 81M030009 b 6) RSG ON030005 600030008 ' ' 800030911 ... 600030010 Approx scale 1.1810 0 1958 Page 10 1 H Z Z) O U W 0 L. W 71 O v T � l0 Ifl O CO N O O ^ L � ¢ W O 2 61 a E c o o 0 E c c ao N .o m V � C a C T 3 « v as o o � E G C ro y O V � O v T11 N O ro m � io O O iR w N L w d VI 7 O E o 0 0 2 y c o m v O GO ¢ c w w w i u d � E rn 3 v V > f N O O ro c v n O � � L W N _ O O ro o f O O O x y � o o co N ¢ C N M N y iA M W W C C v 0 3 « N N f6 E o 0 3 A a V c ro V v > o f O v T ro co v in m M v in � v_ a o w L d E c o O M m ¢ w w O u c «» L = - a e A T v _ J V > O f v O T 1) W Y1 O ro c V 01 V M O Q w L N N W O O O 0 p 2 U c o Q C E c c n M o 0 O 0 0 L C 41 — a c v 3 m L o E rn J 3 ro v V ? f O v TL W W C ^ N N � L w w N C 2 d c o `° `oo C M l(1 W d e a- T « f� p E c ro v o W O ro c a (n ip V s � ¢ N N 2 y c o - C c c m v o00 0 i u � C 0 v o A W o« c ti J v u > f v O O O� 0 L w ro N V C � a c E 3 N rn- v z 2 Q f' 2 LL W a E O b C Q KI Gl .� N M 4 Attachment 3: Housing Resource Survey Two and Three Bedroom Comparables Address Type Sales Price Bedroom/Baths 79935 Independence Way, La Quinta Sin le Famil $364,900 3/2 45430 Sunn brook Lane, La Quinta Single Family $379,000 3/2 79956 Independence Way, La Quinta Sin le Family $395,500 3/2 Note Based on the assessed value of subject property, listings of comparable sales within the target price range were comprised of three -bedrooms. Available two -bedroom dwelling did not meet square footage and sales price criteria ))RSGe " . .1 Page 12 Attachment 4 City of La Quinta Redevelopment Agency RELOCATION ASSISTANCE TO DISPLACED HOMEOWNER OCCUPANTS Introduction This booklet describes the relocation payments and other relocation assistance provided under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended ("URA") to most homeowners whose home is acquired by the City of La Quinta Redevelopment Agency ("Agency'). To be eligible for the assistance described in this booklet, you must have owned and occupied your home for at least 180 days before the Agency offered to buy it. If you are notified that your home will be acquired and you will be displaced, it is important that you do not move before you learn what you must do to receive the relocation payments and other assistance to which you are entitled. This booklet may not answer all of your questions. If you have more questions, contact the Agency. (Check the back of this booklet for the name of the person to contact at the Agency.) Ask your questions before you move. Afterwards, it may be too late. Summary of Relocation Assistance As an eligible displaced homeowner occupant, you will be offered the following advisory and financial assistance: Advisory Services. This includes referrals to comparable replacement homes, the inspection of replacement housing to ensure that it meets established standards, help in preparing claim forms for relocation payments and other assistance to minimize the impact of the move. Payment for Moving Expenses. You may choose either a: ❖ Payment for Your Actual Reasonable Moving and Related Expenses, or ❖ A Fixed Moving Payment, or ❖ A combination of both, based on circumstances. Replacement Housing Payment. To enable you to buy or, if you prefer, rent a comparable replacement home, you may choose either: ❖ Purchase Assistance, or *)RSG Page 13 ❖ Rental Assistance. If you disagree with the Agency's decision as to the relocation assistance for which you are eligible, you may appeal that decision as provided by the Agency's Grievance Procedures and state HCD Grievance Guidelines. General Questions Will I Be Paid For My Property Before I Have To Move? If you reach an agreement to sell your property to the Agency, you will not be required to move before you receive the agreed purchase price. If the property is acquired through an eminent domain proceeding, you cannot be required to move before the estimated fair market value of the property has been deposited with the court. (You should be able to withdraw this amount immediately, less any amounts necessary to pay off any mortgage or other liens on the property and to resolve any special ownership problems. Withdrawal of your share of the money will not affect your right to seek additional compensation for your property.) Will I Have To Pay Rent To The Agency Before I Move? You may be required to pay a fair rent to the Agency for the period between the acquisition of your property and the date that you move. The rent will not exceed that charged for the use of comparable property. How Will I Know I Am Eligible For Relocation Assistance? You should receive a written notice explaining your eligibility for relocation assistance. You will become eligible for relocation assistance on the date you receive the Agency's written offer of "just compensation" to purchase your home. You should not move before receiving that purchase offer. If you do, you may not receive relocation assistance. How Will The Agency Know How Much Help I Need? You will be contacted at an early date and personally interviewed by a representative of the Agency to determine your relocation needs and preferences for replacement housing and advisory services. The interviewer will ask certain questions about you and other members of your households. It is to your advantage to provide the information so that the Agency can assist you in moving with a minimum of hardship. The information you give will be kept in confidence. How Soon Will I Have To Move? 9) RSG Page 14 If possible, a mutually agreeable date for the move will be worked out. You will be given enough time to make plans for moving. Unless there is a Ihealth or safety emergency, you will not be required to move without at least 90 days advance written notice of (1) at least one 'comparable replacement home" that is available to you and (2) the earliest date by which you must move. What Is A Comparable Replacement Home? A comparable replacement home is: • Decent, safe, and sanitary. • Functionally equivalent to your present home. • Actually available for you to buy. • Affordable. • Reasonably accessible to your place of employment. • Generally as well located with respect to public and commercial facilities, such as schools and shopping, as your present home. • Not subject to unreasonable adverse environmental conditions. • Available to all persons regardless of race, color, religion, sex, or national origin. What is Decent, Safe, and Sanitary Housing? Decent, safe, and sanitary housing is housing that: Meets local housing and occupancy requirements. Additionally, it is housing that: • Is structurally sound, weather tight, and in good repair. • Contains a safe, adequate electrical wiring system. • Has adequate living space for the occupants. • Has a kitchen with a sink, hot and cold running water, and connections for a stove and refrigerator. • Has a separate, complete bathroom with hot and cold running water and sewage system. • Has heating as required by climatic conditions. • Has an unobstructed exit to safe, open space at ground) level. • Is free of any barriers that would preclude your reasonable use of the unit, if you are a person with a physical disability. Will The Agency Help Me Find A Replacement Home? RSG Page 15 Yes. You will be provided with referrals to comparable replacement housing. If possible, you will be referred to at least three comparable replacement homes. The maximum financial assistance for which you may qualify will be based on the cost of the most representative comparable replacement home that is available to you. When the Agency gives you its initial written purchase offer, it will typically inform you at that time, or shortly thereafter, of your eligibility for relocation assistance, identifying the most comparable replacement home and explain the maximum amount of relocation assistance available to you. Once the Agency representative has a clear understanding of your needs and preferences, he or she will work with you to assure that you are given the best possible choice of housing and offer you transportation to inspect these units. If there is a mortgage on your present home, the Agency will refer you to lenders that can provide mortgage financing for your new home. If the money paid for your old home is applied to the purchase of your new home, there should not be any increase in the number or amount of your monthly payments for mortgage interest and principal. What If I Find My Own Replacement Housing? You have every right to find your own replacement housing. However, before you buy or rent, ask the Agency to inspect the unit to make sure that it is decent, safe, and sanitary. If the housing unit is not decent, safe, and sanitary, you will not receive a replacement housing payment. What If I Encounter A Problem In Obtaining Housing Of My Choice? If you encounter a problem in buying or renting housing of your choice, notify the Agency immediately. The Agency will look into the matter and try to resolve it. You will receive this help whether you were referred to the housing unit or found it yourself. If you are unable to buy or rent a housing unit because of discriminatory practices on the part of a real estate broker, rental agent, lender, or a property owner, the Agency will help you file a formal housing discrimination complaint with the U.S. Department of Housing and Urban Development or the appropriate State or local fair housing agency. What Other Services Will I Receive? In addition to help in obtaining a comparable replacement home, other assistance, as necessary, will be provided in order to minimize the impact of your move. This assistance may include referral to appropriate public and private agencies that provide services concerning housing financing, employment, health, welfare, or legal assis- tance. The range of services depends on the needs of the person being displaced. You should ask the Agency representative to tell you about the specific services that will be available to help you and your family. 6) RSG Page 16 What Is a Payment For Actual Reasonable Moving And Related Expenses? You are entitled to a relocation payment to cover the actual reasonable cost of your move. If you choose a Payment For Actual Reasonable Moving And Related Expenses, you may include in your claim the reasonable costs for: Transportation for you and your family. Packing, moving and unpacking your households goods. Disconnecting and reconnecting households appliances and other personal property (e.g., telephone and cable TV). Storage of households goods, as may be necessary. Insurance for the replacement value of your property during the move and necessary storage. The replacement value of property lost, stolen or damaged in the move (but not through your neglect) if insurance is not reasonably available. The Agency will explain all eligible moving costs, as well as those which are not eligible. You must be able to account for any costs that you incur, so keep all your receipts. Select your mover with care. The Agency can help you select a reliable and reputable mover. You may elect to pay your moving costs yourself and be repaid by the Agency or, if you prefer, you may have the Agency pay the mover. In either case, let the Agency know before you move. What Is A Fixed Moving Payment? If you choose a Fixed Moving Payment, you will receive a payment based on the number of rooms of furniture you will be moving, as shown on the Fixed Residential Moving Cost Schedule. The Agency has a copy of the schedule and will help you decide whether choosing this payment is in your best interest. If you do not have an unusually large amount of personal property to move and are capable of moving yourself, this payment should be more advantageous to you. No special documentation is required to support your claim. You need only move your personal property and complete the appropriate claim form in order to receive your payment. I Want To Buy Another Home. How Much Purchase Assistance Will I Receive? To help you buy a comparable replacement home, you will receive Purchase Assistance equal to the sum of the following three costs: Purchase Price Differential. If the cost of replacement housing exceeds the amount the Agency pays for your present home, you may be eligible for a payment to cover the difference. The Agency will inform you in writing of the location and O) RSG Page 17 cost of comparable replacement housing (and explain the basis of its determination) so that you will know in advance how much assistance you may receive. That information should help you decide how much you wish to pay for replacement housing. You are free to purchase any decent, safe and sanitary housing unit of your choice. If the purchase price is less than the cost of a comparable replacement home, the payment will be limited to the actual difference. If it exceeds the cost of a comparable replacement home, the payment will be based on the cost of a comparable home. Examples: Let's say that the Agency pays $120,000 to purchase your home and that a comparable replacement home costs $130,000. ❖ If you pay $129,000 for a replacement home, you would receive a $9,000 differential payment (the difference between the Agency's payment for the acquisition of your home and the cost of your replacement home). •S If you pay $132,000 for the replacement home, you would receive a $10,000 differential payment (the difference between the Agency's acquisition payment and the cost of the comparable replacement home). Mortgage Interest Differential Payment. This amount covers the "present value" of the additional costs required to finance the purchase of a replacement home that result if the interest rate you must pay for a new mortgage is higher than the interest rate on the mortgage on your present home. It also covers other debt service costs. The payment is based on the lesser of: the mortgage balance on your present home or your new mortgage amount. To be eligible, the mortgage on your home must have been a valid lien for at least 180 days before the Agency's initial written purchase offer for your home. You should provide the Agency with a copy of your mortgage(s) as soon as possible. Based on that information and the prevailing terms and conditions of new mortgage financing, the Agency will compute the approximate mortgage interest differential payment for which you will be eligible, inform you of that amount and explain the conditions on which it is based. The payment will be made available with the purchase price differential in a timely manner to reduce the amount you must borrow to buy your new home. Incidental Expenses. This amount covers those extra costs typically charged when one buys real property, such as the cost of preparing the deed and recording fees; the cost of title insurance, revenue stamps and transfer taxes (not to exceed the cost for comparable replacement housing); loan application, loan origination and appraisal fees; the cost of a credit report; and for other costs such as certification of structural soundness, home inspection and termite inspection. It does not cover prepaid expenses, such as property taxes and insurance. RSG Page 18 Remember, your total replacement housing payment is the sum of the purchase price differential, mortgage interest differential, and incidental expenses. To qualify for the payment, you must purchase and occupy a decent, safe and sanitary replacement home within one year after the later of: the date you move or the date you receive the final payment for the acquisition of your present home. However, the Agency will extend this period for good cause. If I Decide To Rent, Rather Than Buy, Another Home, How Much Assistance Will I Receive? If you decide to rent rather than buy a replacement home, you may be eligible to receive Rental Assistance. The assistance covers a 42-month period and is computed in the following manner. The assistance needed for one month is based on the difference between the market rent for your present home (including utilities), as determined by the agency, compared to a comparable rental dwelling available on the market (including utilities). That monthly need, if any, is multiplied by 42 to determine the total amount that you will receive. This amount will be paid directly to you in monthly installments or other periodic payments. Examples: Let's say that the monthly "market rent" and average cost for utilities for your present home are $250 and the monthly rent and estimated average utility costs for a comparable replacement home are $350. If you rent a replacement home for $360 per month, including estimated utility charges, you will receive $4,200. That amount is 42 times $100 (the difference between the market rent for your present home ($250) and the cost for a comparable replacement home ($350)). ❖ If you rent a replacement home for $310, including estimated average monthly utility charges, you will receive $2,520. That amount is 42 times $60 (the difference between the "base monthly rent" for your present home ($250) and the actual cost of your new home ($310)). To qualify for rental assistance, you must rent and occupy a decent, safe, and sanitary home within one year after the later of: the date you move or the date you receive the final payment for the acquisition of your present home. However, the Agency will extend this period for good cause. The amount of rental assistance cannot exceed the computed purchase price differential. Must I File A Claim To Obtain A Relocation Payment? RSG Page 19 Yes. You must file a claim for each relocation payment. The Agency will provide you with the required claim forms, help you to complete them, and explain the type of documentation, if any, that you must submit in order to receive your relocation pay- ments. If you must pay any relocation expenses before you move (e.g., a deposit when you contract for the purchase of a new home), discuss your financial needs with the Agency. You will be able to obtain an advance payment to meet these costs. An advance payment to purchase a home may be placed in "escrow." An advance payment for moving expenses may be paid directly to the moving contractor to ensure that the move will be completed on a timely basis. You must file your claim within 18 months after the date you move or receive the final payment for the acquisition of your present home. However, it is to your advantage to file as soon as possible after you move. The sooner you submit your claim, the sooner it can be processed and paid. If you are unable to file your claim within 18 months, ask the Agency to extend this period; however the Agency is not obligated to extend this 18 month period.. Be careful not to confuse this 18-month period with the 12-month period within which you must buy or rent and occupy a replacement dwelling in order to be eligible for a replacement housing payment. You will be paid promptly after you file an acceptable claim. If there is any question regarding your right to a relocation payment or the amount of the payment, you will be notified, in writing, of the problem and the action you may take to resolve the matter. Do I Have To Pay Federal Income Taxes On My Relocation Payments? No. Section 216 of the URA states that you need not report relocation payments as part of your gross income for Federal tax purposes. For information on State or local income taxes, you should check with the State or local income tax office in your area or with your personal tax advisor. What If I Don't Receive The Required Assistance. Can I Appeal? If you disagree with the Agency's decision as to your right to relocation assistance or the amount of a payment, or the adequacy of the housing to which you have been referred, you may appeal the decision to the Agency. The appeal procedure is spelled out in the HCD Grievance Procedure Guidelines and the Agency's Grievance Procedures. A copy of the Agency's procedures has been attached to the Relocation Plan. The Agency will inform you of its appeal procedures. Your appeal must be in writing. However, if you need help, the Agency will assist you in preparing your appeal. RSG J Page 20 If you are a low- or moderate -income person and are dissatisfied with the Agency's determination on your appeal, you may have an additional right to request administrative review of that decision (e.g., by HUD or the State). The Agency will explain whether this option is available. You can expect a fair decision on any appeal. However, if you are not satisfied with the final administrative decision on your appeal, you may seek review of the matter by the courts. I Have More Questions. Who Will Answer Them? If you have any questions after reading this booklet, contact the Agency and discuss your concerns with an Agency representative. Agency: City of La Quinta Redevelopment Agency Address: 78-495 Calle Tampico La Quinta, CA 92253 Office Hours: 8:30 AM through 5:00 PM; Monday through Friday Telephone Number: (760) 212-2322 Person to Contact: Jon McMillen *)R5G Page 21 J Attachment 5: Fixed Moving Schedule Schedule A (Occupant Owns Furniture Number of Rooms Payments 1 $ 625 2 $ 800 3 $ 1,000 4 $ 1,175 5 $ 1,425 6 $ 1,650 7 $ 1,900 8 $ 2,150 Each additional room $ 225 Source: California Department of Transportation, Federal Highway Administration Schedules R)RSG Page 22 Attachment 6 City of La Quinta Redevelopment Agency GRIEVANCE PROCEDURES Purpose: The purpose of the Grievance Procedures is to attempt to resolve disputes between the claimant and the Agency at the lowest possible administrative level while affording the claimant an opportunity to have a full and fair review of his/her case. Therefore, all relevant evidence should be presented at the lowest level of these proceedings. In any case where such evidence could have been presented at a lower level and the claimant failed to do so, the relevant hearing body may, at its discretion, refer the matter back to the lower level for consideration and determination prior to their considering such evidence. A failure to provide evidence at a lower level of proceedings may prevent the issue or evidence from being further reviewed, including, without limit, in judicial review for failure to exhaust remedies. These procedures are supplemented by HCD Guidelines sections 6150-6176. A. Right of Review Initial Determination: Any displaced person or business who is not satisfied with a determination as to eligibility, amount of payment, and failure by the Agency to provide comparable permanent or adequate temporary replacement housing or the Agency's property management practices, or not properly applying appropriate regulations, at his/her election, may have his/her claim reviewed and reconsidered by the Agency's relocation consultant in accordance with the following procedures. To obtain an initial determination from the Agency's relocation consultant, claimant must complete a Relocation Complaint form and submit it to the Agency's relocation consultant and the City Clerk within (540) days from the date he/she moves from the acquired property or receives final compensation for displacement from the property, whichever is later. The Agency's relocation consultant shall provide the claimant with a full written explanation of the determination and the basis therefore, which explanation shall be provided within three weeks from the date of receipt of the request. The written explanation shall include a statement of claimant's right to seek within ten (10) days further review of his/her claim by either formal or informal review and an explanation of the steps the claimant must take to obtain this review. The right to an informal oral presentation as provided in section B below or a formal hearing as provided in section C below shall not be conditioned upon first obtaining an initial determination from the Agency's relocation consultant. B.Informal Oral Presentation Agency Review: If the claimant feels that the written explanation provided in section A above is incorrect or inadequate, or if the claimant desires to proceed directly to informal review, he/she may request an informal hearing with the Community Development Director or Designee ("Director"). (1) To obtain an informal hearing before the Director the claimant must request in writing that the Director schedule such a hearing. Such written request shall be .J}R�`'� SG �� Page 23 made (i) within ten (10) days from the date of the written initial determination or, if the claimant does not wish to request an initial determination, (ii) by submitting a Relocation Complaint form within five hundred forty (540) days from the date he/she moves from the acquired property or receives final compensation from the property, whichever is later. (a) Within fifteen (15) days from the date of receipt of claimant's Relocation Complaint form for an informal hearing, he/she will be afforded an opportunity to make an oral presentation, or to request a written review by the Director of the relevant documents and written materials submitted by the claimant. (b) The claimant may be represented by an attorney or other person of his/her choosing at the oral presentation hearing (at the cost of the claimant). (c) The Director shall prepare a summary of the matters discussed and determinations made during the informal hearing, or written review, and serve a copy thereof upon the claimant. (d) The Director shall review and reconsider the determination of the claimant's case in light of: - All material upon which the Agency based its original determination including all applicable rules and regulations; - The reasons given by the claimant for requesting review and reconsideration of his/her claim; - Whatever additional written material has been submitted by the claimant; and - Any further information which the Director may, in his/her discretion, obtain by request, investigation or research, to ensure fair and full review of the claim. - The proceedings shall not be bound by any formal rules of evidence. (2) The final determination on review by the Director shall include, but is not limited to: (a) The Agency relocation consultant's initial determination, if applicable; (b) The factual and legal basis upon which the decision is based, including any pertinent explanation or rationale; and (c) A statement of claimant's right to seek within ten (10) days further review of his/her claim by the City Manager and Assistant City Manager and an explanation of the steps the claimant must take to obtain this review. (3) The right to a formal hearing as provided in section C below shall not be conditioned upon first obtaining an informal hearing by the Director. �RSG ��" Page 24 C. Request for Formal Review The City Manager and the Assistant City Manager Review: If the claimant feels that the initial determination by the Agency's relocation consultant, the Director's determination following the informal oral hearing, or written review by the Director is incorrect or inadequate, or if the claimant desires to proceed directly to formal review, he/she may request a formal hearing before the City Manager and the Assistant City Manager (or, if there is no Assistant City Manager, such other person as the City Manager may designate), acting as the Appeals Board ("Appeals Board"). To obtain a formal hearing before the Appeals Board the claimant must request in writing that the Director schedule such a hearing. Such request shall be made (i) within ten (10) days from the date of the Agency relocation consultant's initial determination, the Director's determination following the informal hearing or the Director written review or, if the claimant does not wish to request an informal hearing (ii) within five hundred forty (540) days from the date he/she moves fro the acquired property or receives final compensation from the property, whichever is later. (1) Within fifteen (15) days from the date of receipt of claimants written request, he/she will be notified of the formal hearing date. If the claimant requests additional time to prepare material for consideration and shows good cause therefore, the hearing date shall be continued to another date. (2) The Appeals Board shall, at the time it gives notice of the formal hearing date, notify the claimant that he/she has the right to be represented by an attorney or others at his/her own expense, to present his/her case by oral or documentary evidence; the right to submit oral or documentary evidence; the right to submit rebuttal evidence to conduct such cross-examination as may be required for full and true disclosure of facts; and the right to seek judicial review after having exhausted all administrative appeal remedies. (3) The Appeals Board shall review and reconsider the initial determination and/or the determination made at an informal hearing taking into consideration all material upon which the challenged determination was made, all applicable rules and regulations, the reasons given by the claimant for requesting review, any additional relevant evidence, oral or documentary, submitted by either the claimant or the Agency's representatives. No evidence may be relied upon by the Appeals Board where the claimant has been improperly denied an opportunity to rebut evidence or cross-examine a witness. The proceedings of the Appeals Board shall not be bound by any formal rules of evidence. (4) The Appeals Board shall make its determination within six weeks from the date on which the formal hearing is concluded or the date of receipt of the last material submitted, whichever is later. (5) The Appeals Board's determination shall be made in writing and shall contain its decision, the factual and legal basis upon which the decision is made and a statement informing the claimant of his/her right to appeal the decision to the Agency Board as provided below. � J RSG Page 26 (6) The claimant shall be promptly served with a copy of the Appeals Board's determination. Review by Redevelopment Agency. Any person who believes himself/herself to be aggrieved by any final decision of the Appeals Board may, within five (5) days after that date on the Appeal Board's notice of such ruling or act, appeal the Appeals Board's determination to the Redevelopment Agency Board of Directors (the "Agency') by filing with the Community Development Director a written statement of the rulings or acts complained of and the reasons for taking such appeal. The Director shall thereupon refer such appeal to the Agency at its next regular meeting and the Agency shall thereupon fix a time for the hearing of said matter, which time shall be not less than thirty (30) days from the time said appeal is presented to the Agency by the Director. On the date thus fixed, or on the date to which said hearing shall have been continued, the Agency shall proceed to hear and consider the evidence relating to said matter and shall make and enter on its minutes its final determination therein. The Agency may confirm, modify or set aside the findings of the Appeals Board, and the Agency's determination in the matter shall be final and conclusive. No proceeding or action shall lie against the City, the Agency, the Community Development Director, the City Manager, the Assistant City Manager (or such appointed designee) or any member of either thereof, nor against any officer, agent or employee of the Agency or City to review or enjoin the enforcement of its determination or orders of the Agency made pursuant hereto, or to recover damages for carrying out such orders in a lawful and reasonable manner, unless such action is commenced within ninety days (90) from and after service of notice of the findings and determination of the Agency. Notice of the determination of the Agency shall be served by the Community Development Director upon the person, or persons, taking the appeal. The effect of any order from which an appeal is taken as herein provided shall be suspended and of no force or effect until such appeal is fully determined. The claimant shall be deemed to have exhausted his/her administrative remedies upon filing timely appeals and the Agency taking action upon his/her complaint. E.Time Limits General: The Community Development Director may extend any of the time limits as permitted by HCD Guidelines section 6162 upon a showing of good cause; provided, however, that the time periods established by these Grievance Procedures within which to timely appeal a decision from a lower body shall not be extended. Any refusal to waive a time limit may be reviewed in accordance with the procedures set forth in Section C above; provided, however, any request to review shall be made within thirty (30) days from the date of receipt by claimant of written notice that the request to extend time has been denied. F. Review of Files By Claimant The claimant may inspect all files and records bearing upon his/her claim or the prosecution of the claimant's grievance, except to the extent the confidentiality of the material sought or the disclosure thereof is protected or prohibited by law. G.Effect of Determination I)p RSG Page 26 Determinations made by the Agency Board pursuant to the paragraph entitled "Review by Redevelopment Agency" in section C shall be applicable to all eligible persons in similar situations regardless of whether any such eligible person seeks a review. All written determinations shall be filed in the records of the Agency and available for public inspection. H. Right to Counsel Any claimant has the right to be represented by an attorney at his/her expense at any and all stages of the proceedings set forth in this Article. I. Stay of Displacement Pending Review If claimant seeks to prevent displacement, the Agency shall not require the claimant to move until at least 20 days after it has made a determination and the claimant has had an opportunity to seek judicial review. In all cases the Agency shall notify the claimant in writing 20 days prior to the proposed new date of displacement. J. Further Review If the Agency denies the eligibility of a claimant for a payment, or disapproves the full amount claimed, or refuses to consider the claim on its merits because of untimely filing, or any other ground, the Agency's notification to the claimant of its determination shall inform the claimant of its reasons therefore, and shall also inform the claimant of the applicable procedures for obtaining further review of this determination. These regulations prescribe the City of La Quinta procedures for granting administrative relief to any person aggrieved by a determination as to eligibility for a payment authorized by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the State of California Government Code Section 7260, et. seq., with regard to the obligation of the Agency to refer such person to an adequate replacement dwelling or to any person aggrieved by a determination as to eligibility for a payment authorized by the above legislation to provide the opportunity for his/her application to be reviewed by the appropriate department responsible for administering such payments. O) RSG Page 27 i I I COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Acceptance of a Grant of Easement for Emergency Ingress and Egress and Public Utility Purposes from Rancho Santana Homeowners Association, Inc. Associated with Tract Map No. 31202-1 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: OLD CONSENT CALENDAR: C> STUDY SESSION: PUBLIC HEARING: Accept a Grant of Easement for emergency ingress and egress and public utility purposes from Rancho Santana Homeowners Association, Inc. associated with Tract Map No. 31202-1. FISCAL IMPLICATIONS: None at this time. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The Rancho Santana Development, Tract Map No. 31202-1 is located on the south side of Avenue 52 and west of Monroe Street (Attachment 1). A secondary emergency access was required by the Fire Department per the Conditions of Approval for Tract Map No. 31202. Said emergency access originally was dedicated on Tract Map No. 31202-2 over Lot E. However, subsequent development on the west, Madison Club, required purchasing of lots and said easement at the northwest corner of Tract Map No. 31202-2, and adjustment of the emergency easement. Partial emergency access was finally dedicated on Parcel Map No. 34653 but subsequent additional dedication is required over Lot J of Tract Map No. 31202-1 to complete the access from Avenue 52 to Rancho Santana Drive. J The Rancho Santana Homeowners Association, Inc. desires at this time to dedicate, by Grant of Easement (Attachment 2), the additional right-of-way to the City of La Quinta. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Accept a Grant of Easement for emergency ingress and egress and public utility purposes from Rancho Santana Homeowners Association, Inc. associated with Tract Map No. 31202-1 and authorize the City Manager to sign the certificate of acceptance for the same; or 2. Do not Accept a Grant of Easement for emergency ingress and egress and public utility purposes from Rancho Santana Homeowners Association, Inc. associated with Tract Map No. 31202-1 and do not authorize the City Manager to sign the certificate of acceptance for the same; or 3. Provide staff with alternative direction. Respectfully submitted, Jublic othy R. n ss ereP. on E. Work ct ity Engineer Approved for submission by: homas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Grant of Easement { ATTACHMENT 'I HWY 111 r W f PTi' n AVENUE 48TH I CQJ' kN I ru t W W Q N AVENUE 50TH 0 0 0 c O U Q AVENUE 52ND �a AVENUE 54TH VICINITY A SEC. 10, TOSo R7E N.T.S. ATTACHMENT RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of La Quints, City Clerk P.O. Box 1504 La Quinta, CA 92247-1504 FOR RECORDER'S USE ONLY GRANT OF EASEMENT RW-D 2006-067 For valuable consideration, receipt of which is hereby acknowledged, Rancho Santana Homeowners Association, Inc., hereby GRANTS to the City of La Quinta, an easement for emergency ingress and egress and public utility purposes over, under, through and across the following described strip of land: SEE ATTACHED "EXHIBIT A" LEGAL DESCRIPTION AND `°EXHIBIT B" PLAT Rancho Santana Homeowners Association, Inc. Dated: By: Dated: By: STATE OF CALIFORNIA _ COUNTY OF RIVERSIDE } S.S. on before me, A Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names) islam subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hiaftwdtheir authorized capadity(ies), and that by his/her/their signature(s) on the instrument the petson(s), or the entity upon behalf of which the person(s) acted, executed the instrument WITNESS my hand and official =1 Signature MM AaF.I FOR OFFICW.NOiA LSFAL) 1:\2005\051104 Lennar Emergency Access Essement.doc A 373 EXHIBIT "A" GRANT OF EASEMENT LEGAL DESCRIPTION THE SOUTHERLY 30 FEET OF THE FOLLOWING DESCRIBED PROPERTY: THE SOUTHERLY 165.075 FEET OF THAT PORTION OF THE SOUTH ONE-HALF OF THE SOUTHWEST ONE -QUARTER OF THE SOUTHEAST ONE -QUARTER OF SECTION 8, TOWNSHIP 2 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST ONE -QUARTER OF SAID SECTION 8: THENCE NORTH 0°29'35" WEST, 330.15 FEET; THENCE AT RIGHT ANGLES WESTERLY A DISTANCE OF 275 FEET; THENCE SOUTH 0°23'20" EAST TO THE POINT OF BEGINNING. EXCEPT THE WESTERLY RECTANGULAR 30 FEET AS CONVEYED TO THE COUNTY OF RIVERSIDE BY DEED RECORDED DECEMBER 28, 1959 IN BOOK 2606 PAGE 354, OFFICIAL RECORDS, RIVERSIDE COUNTY. nw C:\Documents and SetttngsUoMLLocal Settings\TemporaryInternet Files\OI,KSIUtanclw Santana Grant of Easemen[.doc - J { Ir +IAR R 11'1"'RING, INC. PROJECT: 1 CNRENGINEERING - LANUSURVEYING - PLANNING 6e4e7 Highway 111. Butte as SHEET: Cdlhedral City. CA 92234 > Rxm: (760)202-ISM Fa:c oem 2o2-M7 CALCD: \/ oVimer®hacker nglneefing.com W.O.: EXHIBIT "By LOT J TRACT M. 612O2-1 UE TABLE LINE LENGTH BEARING L 1 20.00 N89-47.58-E L2 20.00 S0001142'T L3 20.00 S89'47'58"W L4 20.00 N00' ' 2 W LOT 72 -OVA 0 0 z Z3 s. 1 OF: 1 TCP CHIM D.H- 051104 DATE: 08/ LVA 559/54--61 L3 N 89-4758' E --� I 79.98' ^I l Q ` I LOT 92 �oiI N e� i � \ SWANA T-Vf 4 4 a" COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Consideration of Adoption of a Resolution Certifying the Official Canvass of Election Returns for the General Municipal Election held November 7, 2006 RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a resolution certifying the official canvass of election results for the General Municipal Election held November 7, 2006. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: At the May 6, 2006 meeting, the City Council adopted Resolution No. 2006-043, giving notice of a General Municipal Election to be held on Tuesday, November 7, 2006, for the election of certain officers as required by the provisions of the laws of the State of California. On July 5, 2006, the City Council adopted Resolution No. 2006-066, ordering the submission of a ballot measure validating, re-enacting and approving the City's transient occupancy tax rate and the definition of group hotels to the qualified electors of the City at the November 7, 2006 General Municipal Election. The Certification of Election Results for the election of certain officers and the ballot measure is anticipated to be provided by the Riverside County Registrar of Voters on December 5, 2006 and will be included as Exhibit A to the resolution. (Certification of Election Results will be distributed upon receipt from the County Registrar.) „ ,7 FINDINGS AND ALTERNATIVES: The Alternatives available to the City Council include: 1. Adopt a resolution certifying the official canvass of election returns for the General Municipal Election held on November 7, 2006; or 2. Do not adopt a resolution certifying the official canvass of election returns for the General Municipal Election held on November 7, 2006; or 3. Provide staff with alternative direction. Respectfully submitted, �i//%ij i � , %'�/// ;:: - City Clerk Approved for submission by: rlxzI 2a+"o�&�P� Thomas P. Genovese, City Manager RESOLUTION NO. 2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON THE SEVENTH DAY OF NOVEMBER, 2006, DECLARING THE RESULTS AND SUCH OTHER MATTERS AS PROVIDED BY LAW WHEREAS, a General Municipal Election was held and conducted in the City of La Quinta, California, on Tuesday, November 7, 2006, as require by law; and WHEREAS, notice of election was given in time, form and manner as provided by law/ candidates were nominated to fill the vacancy or vacancies as provided by law; the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the laws of the State of California relating to General Law cities and the Charter of the City of La Quinta; and WHEREAS, the Riverside County Registrar of Voters canvassed the returns of the election and has certified the results to the City of La Quinta, and said results are received, attached and made a part hereof as Exhibit "A"; and WHEREAS, On July 5, 2006, the City Council adopted Resolution No. 2006-066, ordering the submission of a ballot measure validating, re-enacting and approving the City's transient occupancy tax rate and the definition of group hotels to the qualified electors of the City at the November 7, 2006 General Municipal Election. WHEREAS, said General Municipal election was held for the purpose of electing the following officers and ballot measure of said City as required by the laws relating to cities in the State of California, to wit: One (1) Mayor of the City Council of said City for the full term of two years; Two (2) Members of the City Council of said City for the full term of four years; Measure J: Shall Ordinance No. 428 be adopted to validate, re-enact, and approve the existing transient occupancy tax rate of 11 % for group hotels and 10% for all other hotels, as such rates are established by the first sentence of Municipal Code Section 3.24.030 and as group hotels are defined in Municipal 0 Resolution No. 2006- November 7, 2006 Election Results Adopted: December 5, 2006 Page 2 Code Section 3.24.020.1, which provisions were passed in September of 1992 in Ordinance No. 211 ? NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1 That the name of person voted for at said election for Mayor of the City Council of said City is as follows: DON ADOLPH SECTION 2 That the names of persons voted for at said election for Members of the City Council are as follows: TERRY B. HENDERSON TOM KIRK KEN NAPPER LARRY PUGHE LARRY F. SYLK SECTION 3 The City Council does declare and determine that Don Adolph was elected as Mayor for the full term of two (2) years; and Terry B. Henderson and Tom Kirk were elected as Members of the City Council for the full term of four (4) years. SECTION 4 That the City Clerk shall immediately make and deliver to each of the persons so elected, a Certificate of Election signed by the City Clerk and authenticated; that the City Clerk shall also administer to each person elected, the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the Office of the City Clerk. Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected. SECTION 5 That the ballot measure voted for at said election is as follows: Ivteasure j: Shall Ordinance No. 428 be adopted to validate, re-enact, and approve the existing transient occupancy tax rate of 11 % for YES group hotels and 10% for all other hotels, as such rates are established by the first sentence of Municipal Code Section 3.24.030 and as group hotels are defined in Municipal Code NO Section 3.24.020.1, which provisions were passed in September of 1992 in Ordinance No. 211 ? �J Resolution No. 2006- November 7, 2006 Election Results Adopted: December 5. 2006 Page 3 SECTION 6 That the City Council does declare that the Riverside County Registrar of Voters has certified to the passage of Measure J and shall take effect 10 days after adoption of this resolution. The Mayor shall sign Ordinance No. 428 as provided therein. SECTION 6 That the City Clerk shall immediately make and deliver to each of the persons so elected, a Certificate of Election signed by the City Clerk and authenticated; that the City Clerk shall also administer to each person elected, the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the Office of the City Clerk. Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected. SECTION 7 That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. SECTION 8 The City Clerk shall cause Ordinance No. 428 to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause Ordinance No. 428 and its certification, together with proof of posting to be entered into the BOOK of ORDINANCES of the City of La Quinta. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 5`h day of December, 2006, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California 383 Resolution No. 2006- November 7, 2006 Election Results Adopted: December 5, 2006 Page 4 ATTEST: VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California (SEAL) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California .;94 grIo COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Consideration of City Council Reorganization RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: That the City Council select a member to serve as Mayor Pro Tempore for a term as provided by Resolution No. 98-109. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The provisions of Resolution No. 98-109 require the Council to meet on the Tuesday after each general municipal election and choose one of its members as Mayor Pro Tempore, in accordance with Government Code Section 36801. Each selection shall be by three or more affirmative votes; a failure to achieve such total of affirmative votes shall be deemed a selection of the incumbent to remain in office. Each person so selected shall serve until a successor is chosen (at any time) by three or more affirmative votes, provided that at the second regular meeting in November of each odd numbered year, the office of Mayor Pro Tempore shall automatically be reconsidered by the Council. Due to the fact that the Riverside County Registrar of Voters provides the certified results of the canvass for the November 7, 2006 General Election in early December, the selection of Mayor Pro Tempore is being presented to the City Council at this time. J �, FINDINGS AND ALTERNATIVES: The Alternatives available to the City Council include: 1. Select a Mayor Pro Tempore to serve a term as provided by Resolution No. 98-109; or 2. Provide staff with alternative direction. Respectfully submitted, Veronica i ontecino, CIVIC City Clerk Approved for submission by: r- �PALI� Thomas P. Genovese, City Manager J C&tyof 4 4 a" COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Consideration of City Council Standing Committee Appointments RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: �7 CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Select representatives of the City Council to serve on various committees for the year 2007. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Each year the City Council selects Council Members to serve on a number of committees which provide regional and local representation for the City of La Quinta. Attachment 1 is a complete list of committees and the appointments made last year for the Council's consideration. At the November 21, 2006 meeting, the City Council appointed Mayor Don Adolph to the Coachella Valley Association of Government's Homeless Task Force to represent the Council at the December 6, 2006 Task Force meeting. The City Council requested this item be brought back at the December 5, 2006 Council meeting for reconsideration of appointment. The Task Force has been added to the list of Council committee assignments as a standing committee. 330 FINDINGS AND ALTERNATIVES: The Alternatives available to the City Council include: 1. Select representatives of the City Council to serve on various committees for the year 2007; or 2. Do not select representatives of the City Council to serve on various committees for the year 2007; or 3. Provide staff with alternative direction. Respectfully submitted, Veronica City Clef Approved for submission by: Thomas P. Genovese, City Manager Attachment: 1. List of Existing City Council Committee Assignments � J13 ATTACHEMENT1 CITY OF LA QUINTA CITY COUNCIL APPOINTMENTS COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS 41MAL CAMPUS COMMISSION: Member: Terry Henderson, Council Member Alternate: Lee Osborne, Council Member Bets every other second Thursday at 9:30 a.m. (ECUTIVE COMMITTEE: Member: Don Adolph, Mayor Alternate: Stanley Sniff, Mayor Pro Tem Non -Voting Member: City Manager eets last Monday of each month at 6:00 p.m. NVIRONMENTAL AND ENERGY RESOURCES COMMITTEE: Member: Stanley Sniff, Mayor Pro Tern Alternate: Lee Osborne, Council Member Staff Support: Community Development Director or Designee Teets second Thursday of each month at 12:00 p.m. ALLEY -WIDE HOMELESS TASK FORCE: Member: Don Adolph, Mayor Alternate: Staff Support: IUMAN AND COMMUNITY RESOURCES COMMITTEE: Member: Lee Osborne, Council Member Alternate: Tom Kirk, Council Member Staff Support: Community Services Director Meets fourth Wednesday of each month at 11:45 a.m. Jpdated: March 8, 2006 IBLIC SAFETY COMMITTEE: Member: Tom Kirk, Council Member Alternate: Terry Henderson, Council Member Staff Report: Building & Safety Dir. or Community Safety Mgr. Bets second Monday of each month at 10.00 a.m. 3ANSPORTATION COMMITTEE: Member: Tom Kirk, Council Member Alternate: Terry Henderson, Council Member Staff Support: Public Works Director/City Engineer eets third Monday of each month at 12:00 p.m. ECHNICAL ADVISORY COMMITTEE: Member: City Manager leets second Friday of each month at 10:00 a.m. ECHNICAL PLANNING SUB -COMMITTEE: Member: Community Development Designee Alternate: Community Development Director Teets third Monday of each month at 8:30 a.m. 'RANSPORTATION TECHNICAL ADVISORY SUB -COMMITTEE: Member: Public Works Director/City Engineer Alternate: Senior Engineer sleets fourth Thursday of each month at 1:30 p.m. >M10 TECHNICAL WORKING GROUP: Member: Community Development Director or Designee Alternate: Associate Planner Meets first Monday of each month at 1:30 p.m. Jpdated: March 8, 2006 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY: Member: Lee Osborne, Council Member (Appointed 117103) Alternate: Personnel/Risk Manager CALIFORNIA STATE UNIVERSITY SAN BERNARDINO LIAISON: Member: Appointed by: Authorized by Council: Management Analyst City Manager October 1, 1996 CHAMBER OF COMMERCE WORKSHOP/INFORMATION EXCHANGE COMMITTEE Member: Tom Kirk, Council Member (Rotated: September 2006) Staff Support: Tom Genovese, City Manager Staff Support: Doug Evans, Community Development Dir. Staff Support: Maria Casillas, Management Analyst Teets every other month / Rotate after 3 consecutive meetings CIVIC CENTER ART PURCHASE COMMITTEE Members: Terry Henderson, Council Member (appointed March 20( Tom Kirk, Council Member (appointed March 2006) otates Annually COACHELLA VALLEY ECONOMIC PARTNERSHIP Board Member: Don Adolph, Mayor Alternate: Lee Osborne, Council Member Staff Support: Management Analyst COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT LQ Representative: Ron Perkins (Board Member) Term: Four (4) Years Term Expires: June 30, 2008 (Re -appointed: 712196; 5/18/00; 1/7/03; 5118104) (Continuing to Serve: 317/06) Staff Support: City Manager Meets second Tuesday of each month at 7:00 p.m. Jpdated: March 8, 2006 COACHELLA VALLEY MOUNTAINS CONSERVANCY Ex. Board Member: Stanley Sniff, Mayor Pro Tern Alternate: Terry Henderson, Council Member Staff Support: Community Development Director eets second Monday of every other month at 3:00 p.m. JACQUELINE COCHRAN REGIONAL AIRPORT Member: Lee Osborne, Council Member Alternate: Terry Henderson, Council Member Staff Support: Community Development Director eets last Wednesday of each month at 4:00 p.m. at Thermal Airport COACHELLA VALLEY WATER DISTRICT JOINT WATER POLICY COMMITTEE Member: Don Adolph, Mayor Alternate: Terry Henderson, Council Member (Appointed. September 22, 2004) IMPERIAL IRRIGATION DISTRICT - POWER CONSUMER ADVISORY COMMITTEE Member: Vacant - No La Quinta Representative at Present osition appointed by l.l.D. Board - City may present a nomination when vacancy occurs LEAGUE OF CALIFORNIA CITIES - RIVERSIDE DIVISION Delegate: Terry Henderson, Council Member Alternate: Don Adolph, Mayor (Appointed: December 16, 1997) (Reappointed: January 7, 2003) (Reappointed: January 6, 2004) LIBRARY SERVICE ZONE ADVISORY BOARD Member: Terry Henderson, Council Member (Appointed: 1011196 Alternate: Don Adolph, Mayor (Appointed: 1011196) Jpdated: March 8, 2006 PALM SPRINGS DESERT RESORTS CONVENTION & VISITORS AUTHORITY Ex. Board Member: Terry Henderson, Council Member Alternate: Don Adolph, Mayor Staff Support: City Manager -ets third Tuesday of each month at 9:00 a.m. at Palm Desert City Hall PALM SPRINGS INTERNATIONAL AIRPORT COMMISSION LQ Representative: Nancy Doria (79-448 Calle Prospero /Appointed: 917104) Alternate: Michael Mastrogiuseppe (78-895 Via Trieste 1917104) 4-Year Term expires June 30, 2008 eets the first & third Wednesday of each month at 8:00 a.m. RIVERSIDE COUNTY CHILD SAFETY COMMISSION Member: Terry Henderson, Council Member Alternate: Tom Kirk, Council Member RIVERSIDE COUNTY FREE LIBRARY SYSTEM ADVISORY COMMITTEE Member: Terry Henderson, Council Member Term: Two-year Term Expiration: February 1, 2006 RIVERSIDE COUNTY TRANSPORTATION COMMISSION Commission Member: Terry Henderson, Council Member Commission Alternate: Don Adolph, Mayor (Both Appointed: January 7, 2003 / no expiration date) fleets second Wednesday of each month at 9:00 a.m, in Riverside SANTA ROSA & SAN JACINTO NATIONAL MONUMENT ADVISORY COMMITTEE Commission Member: Terry Henderson,, Council Member (Appointment expires: March 16, 2007) Meetings held ls` Saturday of every other month �.3 Jpdated: March 8, 2006 JNLINE TRANSIT AGENCY Board Member Alternate: Staff Support: Don Adolph, Mayor Lee Osborne, Council (Member City Manager =ets last Wednesday of each month at 12:00 p.m. Member: Member: Member: Member: Member: Member: SCHOOL AD HOC COMMITTEE Lee Osborne, Council Member Stanley Sniff, Mayor Pro Tem SILVERROCK RESORT SUB -COMMITTEE Lee Osborne, Council Member Don Adolph, Mayor SPHERE OF INFLUENCE SUBCOMMITTEE Tom Kirk, Council Member Lee Osborne, Council Member S' 4 Ipdated: March 8, 2006 AGENDA CATEGORY: BUSINESS SESSION: COUNCIL/RDA MEETING DATE: December 5, 2006 CONSENT CALENDAR: _ ITEM TITLE: Consideration of Options for the Highway STUDY SESSION: 1 1 1 /Washington Street Art Piece PUBLIC HEARING: RECOMMENDATION: Approve the relocation of the "Oasis 1 1 1 " (or "Gem of the Desert") art piece to the front of the new maintenance facility at Fritz Burns Park and appropriate $65,900 from the General Fund to the Community Services Administration Special Projects account and direct the City Attorney to prepare and the City Manager to sign an addendum to the Art Purchase Agreement. FISCAL IMPLICATIONS: Unallocated funding for this project is available in the Art in Public Places Fund, Account No. 270.0000.451.74-80. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The art piece "Oasis 1 1 1 " (also known as "Gem of the Desert") ("Artwork") was purchased through an Art Purchase Agreement on September 6, 1996 between the City of La Quinta, and Washington/Adams, L.L.C., and artist Louis De Martino. J� On September 5, 2006, City Council directed staff to review the Art Purchase Agreement for the Artwork and bring it back to Council to discuss possible removal or relocation. The City Attorney has reviewed the Art Purchase Agreement and has concluded that the Artwork may be relocated with the consent of the Owner/Developer. The Artwork may not be destroyed or defaced. If the City Council approves the relocation of the art piece, the City Attorney would draft an addendum to the Art Purchase Agreement to be signed by the City of La Quinta, and Washington/Adams, L.L.C., and the Artist defining the terms of the relocation. Staff contacted contractors for estimates on relocating the Artwork. The cost to remove the Artwork from the corner of Washington and Highway 111 is approximately $11,000. This would include the demolition of the concrete foundation, which is not salvageable. This estimate does not include re- landscaping the vacant pad. Landscaping of the pad will cost approximately $3,400. The reinstallation of the Artwork in front of the new maintenance facility at Fritz Burns Park is estimated to be $51,500, which includes the construction of a new concrete foundation and installation of the top metal portion and lights. Currently, staff is in the process of developing a Master Plan for the new maintenance facility at Fritz Burns Park. If the relocation is approved, the new location for the Artwork will be included in the Master Plan. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1 . Approve the relocation of the "Oasis 1 1 1 " (or "Gem of the Desert") art piece to the front of the new maintenance facility at Fritz Burns Park and appropriate $65,900 from the General Fund to the Community Services Administration Special Projects account and direct the City Attorney to prepare and the City Manager to sign an addendum to the Art Purchase Agreement; or 2. Do not approve the relocation of the "Oasis 1 1 1 " (or "Gem of the Desert") Artwork to the front of the new maintenance facility at Fritz Burns Park; or 3. Provide staff with alternative direction. 3J6 Respectfully submitted, Edie A. Hy on, Community Services Director Approved for submission by: < Thomas P. Genovese, City Manager BUSINESS SESSION ITEM: ORDINANCE NO. 431 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ADOPTING PRE -ZONING DESIGNATIONS FOR CERTAIN LANDS PROPOSED FOR ANNEXATION, AND CONSISTING OF 11.62 ACRES LOCATED AT THE SOUTHEAST CORNER OF HIDDEN RIVER ROAD AND WASHINGTON STREET, AND IDENTIFIED AS ASSESSOR'S PARCEL NUMBERS 609- 040-005, 609-040-007 AND 609-040-023 WHEREAS, the Planning Commission, at its regularly scheduled meeting of October 17, 2006, considered the request of the City of La Quinta for pre -annexation zoning of 11.62 acres of land at the southeast corner of Hidden River Road and Washington Street, and identified as assessor's parcel numbers 609-040-005, 609-040-007 and 609-040-023, to High Density Residential; and WHEREAS, after consideration of all written and oral testimony presented at the hearing, the Planning Commission recommended adoption of a pre -zoning ordinance by the City Council; and WHEREAS, the City Council, at its regularly scheduled meeting of November 21, 2006, considered the Planning Commission's recommendation at a public hearing, including all written and oral testimony; and WHEREAS, after careful consideration, the City Council found that the High Density Residential zoning district is consistent with the zoning designations in place on surrounding lands, the goals and policies of the General Plan, and the character of the area; and WHEREAS, an Initial Study was prepared to consider the pre -zoning of the properties, and the City determined that the proposed pre -annexation zoning would not have a significant environmental impact as described in the California Environmental Quality Act, and a Negative Declaration was prepared. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of La Quinta does as follows: SECTION 1. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption. Ordinance No. 431 Annexation 18 Adopted: December 5, 2006 Page 2 SECTION 2. POSTING: The City Clerk shall cause this Ordinance to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the Book of Ordinances of the City of La Quinta. SECTION 3: Certain property located at the southeast corner of Hidden River Road and Washington Street, and identified as Annexation Number 18 is hereby zoned according to Exhibit A, attached to this Ordinance. PASSED, APPROVED and ADOPTED by the City Council of the City of La Quinta at a regular meeting thereof held on the 51h day of December, 2006, by the following vote: AYES: NOES: ABSENT: ABSTAIN DON ADOLPH, Mayor City of La Quinta California ATTEST: VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California (CITY SEAL) Ordinance No. 431 Annexation 18 Adopted: December 5, 2006 Page 3 APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California 100 Ordinance No. 431 Annexation 18 Adopted: December 5, 2006 Page 4 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE ► ss. CITY OF LA QUINTA 1 I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 431 which was introduced at a regular meeting on the 21" day of November, 2006, and was adopted at a regular meeting held on the 5" day of December, 2006, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution 98-109. VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California DECLARATION OF POSTING I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on pursuant to Council Resolution. VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California t / 1 COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Consideration of Second Reading of an Ordinance Amending Chapter 9, Section 9.140.080 - Supplemental Regulations of the La Quinta Municipal Code Regulating the Development and Usage of Future Condominium Hotel Units in Tourist Commercial Districts and Limiting the Conversion of Existing Hotels to Condominium Hotels RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt Ordinance No. on second reading adding Section 9.140.080 - Supplemental Regulations to the Municipal Code with the additional change. FISCAL IMPLICATIONS: Positive, but unquantifiable at this time, as it will be dependent on the number of condominium hotels built in the future. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Staff has incorporated the change to Section 9.140.080. I, as requested by Council at the last meeting. The change is as follows: " I. Conversions. An express purpose of these regulations is to preserve and enhance the City of La Quinta's existing Hotel inventory. All existing Hotels are prohibited from converting to Condominium Hotels from and after the Effective Date. Thereafter, no other conversions to Condominium Hotels shall be allowed in any zone, except that existing hotels with less than 20 units may apply to convert, provided that the Hotel after conversion, would generate an equivalent, or greater amount of municipal revenue, and provided that the City Council finds that such conversion is in the best interest of the City." 40) Per City Council discussion, staff will conduct a study of appropriate criteria for defining a condominium hotel unit. Staff will initiate the study and report back to the City Council after the first of the year. In addition, if an informal or formal request is made for the conversion of a small hotel, staff will utilize this Ordinance as the basis for project review relative to the entitlement process and other Ordinance requirements noting that a small hotel may not be able to comply with all operational criteria. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Adopt Ordinance No. on second reading adding Section 9.140.080 - Supplemental Regulations to the Municipal Code with the additional change. 2. Do not adopt Ordinance No. on second reading adding Section 9.140.080 - Supplemental Regulations to the Municipal Code with the additional change. 3. Provide staff with alternative direction. Respectfully submitted, 1po'tA Douglas vans Communi Development Director Approved for submission by: Thomas P. Genovese, City Manager ORDINANCE NO. 432 A ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ADDING SECTION 9.140.080 TO THE LA QUINTA MUNICIPAL CODE REGULATING CONDOMINIUM HOTEL DEVELOPMENT AND USAGE AND PROHIBITING CONVERSION OF EXISTING HOTELS INTO CONDOMINIUM HOTELS ZONING TEXT AMENDMENT 2006-088 WHEREAS, the City of La Quinta has proposed this Condominium Hotel Zoning Ordinance ("Condominium Hotel Zoning Ordinance" or this "Ordinance") to add Section 9.140.080 to Chapter 9.140, Supplemental Special Purpose Regulations, to establish regulations for the development and operation of all future Condominium Hotel projects and to prevent the conversion of existing hotels into Condominium Hotels; and WHEREAS, the City Council has given careful consideration to the staff report and all of the information, evidence and testimony presented at a public hearing on the proposed Ordinance, which public hearing was held on November 21, 2006; and WHEREAS, the City has vacant land zoned and with General Plan designations which provide for the development of new hotels; and WHEREAS, the current trend, both nationally and in California, in the hotel industry is the development and construction of condominium hotels as well as the conversion of existing hotels to condominium hotels, which conversion the City wishes to prohibit; and WHEREAS, with this Condominium Hotel Zoning Ordinance, the City will establish minimum requirements pertaining to the development, operation and usage standards for condominium hotels while at the same time preserving existing hotels and safeguarding hotel worker jobs and protecting the City's tourism economy; and WHEREAS, the passage of the proposed Ordinance is not a project because it addresses ownership structure and operational requirements, and does not address physical structure or development, and thus it can be seen with certainty that it will not have a significant effect on the environment. Therefore, the proposed amendments are exempt from the provisions of the California Environmental Quality Act ("CEQA"), and no further environmental review is necessary. G5 Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 2 THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Section 9.140.080 is added to the La Quinta Municipal Code to read as follows. A. Purpose. The specific purposes of these regulations are to assure that Condominium Hotel projects are conditioned at the time of development approval in such a way as to ensure appropriate public health, safety, welfare and land use classifications and standards; to mitigate potential impacts of Condominium Hotels on traffic congestion, air quality, building design and safety, police, fire and emergency services; to assure other adequate public facilities; to allow Condominium Hotel development projects some financial flexibility subject to the approval of the City Council; to prohibit conversion of existing hotels to Condominium Hotels; and to provide the City with appropriate development and operational controls over Condominium Hotels. B. Definitions. The following definitions shall govern the construction and interpretation of this Section. 1. Condominium Hotel. A "Condominium Hotel" shall mean a "Hotel" or "Group Hotel" all or part of which constitutes a condominium project in which one or more of the Units are individually owned, but are intended to be available for "Transient" use (as those terms are defined in Section 3.24.020 of the La Quinta Municipal Code), when not being used by the Unit Owner. 2. Development Agreement. For purposes of this Section, the term "Development Agreement" shall mean any of the following: (1) a statutory development agreement entered into pursuant to Government Code sections 65864 et seq.; (2) a disposition and development agreement entered into between an applicant and the City's Redevelopment Agency; or (3) an owner participation agreement entered into between an applicant and the City's Redevelopment Agency. 3. Effective Date. The "Effective Date" shall mean the date on which the ordinance adopting this Section becomes effective. Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 3 4. First Class Condominium Hotel. A "First Class Condominium Hotel" shall mean a Condominium Hotel where both of the following apply: (1) the Condominium Hotel has a brand Operator or an independent Operator that is experienced in the "Upscale Segment" or "Luxury Segment" of the hospitality industry as defined by J.D. Power and Associates; and (2) the Condominium Hotel satisfies the published requirements that will be sufficient for a ranking of no fewer than Three Stars in the most recent annual awards list published from time to time by AAA Travel Guides or by the Mobil Travel Guide. 5. Operator. "Operator" shall mean the entity designated by the owner of the Condominium Hotel or, if all of the common area of a Condominium Hotel is owned by a condominium owners' association, designated by such association, to manage the Condominium Hotel. 6. Personal Use. "Personal Use" shall mean the use or occupancy of a Unit by an Owner or any non-paying guest of an Owner for whom the Owner may, and does, reserve its Unit. Use of a Unit arising out of an exchange program with an affiliated hotel property shall be considered Personal Use by the Owner. 7. Unit. "Unit" shall mean a condominium unit, as shown on a recorded condominium plan, which is located within a Condominium Hotel. 8. Unit Owner. "Unit Owner" or "Owner" shall mean an individual or entity that acquires any ownership interest in, and holds title to, one or more Units. C. Condominium Hotel Regulations. No person or entity shall construct or operate a Condominium Hotel within the City without first obtaining all necessary entitlements pursuant to this Section and pursuant to other applicable provisions of the La Quinta Municipal Code. All other provisions of the La Quinta Municipal Code, including, without limitation, Title 8 (Buildings and Construction), Title 13 (Subdivisions), and Title 9 (Zoning Code) shall be applicable to the construction and maintenance of Condominium Hotels; provided however, that the more specific provisions contained in this Section shall prevail over any general provisions set forth in the La Quinta Municipal Code. A Condominium Hotel shall be allowed as a conditionally permitted use, subject to the terms of this Section, and only within those zoning districts in which Hotels or similar tourist and vacation accommodations are expressly permitted either conditionally or as of right, pursuant to the terms of Title 9 (Zoning Code) and/or any applicable specific plan. Each application for a Condominium Hotel will be reviewed by the City's Planning Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 4 Commission and City Council. If the Planning Commission recommends granting approval of the application, the City Council shall set notice of a public hearing to be held within forty five (45) days thereafter or such later date as may be set by the City Council. Approval shall be subject to required conditions necessary to carry out the provisions of this Section. D. Application for Condominium Hotel. An application for a Condominium Hotel shall include the following six (6) requirements, in addition to any other information that the City may determine is necessary to review the application. No Condominium Hotel may be approved without approval of all of the following requirements: 1. Development Agreement. A proposed Development Agreement application, which shall provide for enforcement of all conditions and standards required by this Section. In addition to any other provisions that may properly be included within the Development Agreement, the parties may agree to terms and conditions that are different from, or in addition to, and supersede, the provisions and requirements of this Section. The City shall include such terms as it deems necessary to ensure that the Condominium Hotel operates as the equivalent of a traditional hotel. The Development Agreement shall also include a draft Declaration of Covenants, Conditions and Restrictions pursuant to paragraph G below. 2. Conditions, Covenants and Restrictions ("CC&R's"). The proposed CC&R's for the Units. 3. Environmental Assessment. Information necessary for the City to perform an environmental assessment of the proposed Condominium Hotel project, pursuant to the California Environmental Quality Act (Public Resources Code, § § 21080-21094 and its implementing regulations). 4. Subdivision Application. Each Condominium Hotel application shall be accompanied by an application for a tentative or vesting tentative map pursuant to Title 13 of the La Quinta Municipal Code. 5. Specific Plan. Each Condominium Hotel application shall be accompanied by an application for a specific plan or be within an approved specific plan area which permits such use, pursuant to Government Code sections 65450 et seq. Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 5 6. Site Development Permit. Each Condominium Hotel application shall be accompanied by an application for a site development permit pursuant to Section 9.210 of the Zoning Code. E. Development Standards. The Condominium Hotel shall comply with all the development, use, area, parking and other applicable standards of the zone or applicable specific plan in which the project is located. F. Condominium Hotel Standards Conditions and Requirements. In addition to the standards referenced in this Section, each Condominium Hotel is required to meet the following additional standards, conditions and requirements: 1. No Unit may be used as a full-time or permanent residence, except as set forth in the next paragraph. 2. No more than one (1) Unit in each Condominium Hotel may be used for the full-time or permanent residential occupancy by a person or family serving as the on -site manager of the Condominium Hotel. Such Unit must be owned by the owner or operator of the Condominium Hotel or the owners' association, and shall not be used for homestead purposes. 3. At its sole cost and expense, each individual Unit Owner may choose to hire any rental agent of its selection, or the Operator or an affiliate, for the purpose of advertising the rental availability of, and procuring potential renters for, the Owner's Unit. Unit Owners may also rent their Units themselves. When not being used for Personal Use, each Unit shall be available for rental as a Hotel accommodation. The Operator shall have the right, working through the Unit Owner or its designated rental agent, to book any unbooked room to fulfill demand, and to charge a reasonable booking fee for each such booking. 4. Hotel guests (whether Transient or Personal Use and not including any on -site manager) are prohibited from occupying or remaining in any Unit for more than twenty-nine (29) consecutive days, with a minimum seven (7) day period intervening between each twenty-nine (29) consecutive day use period. 5. Personal Use shall not exceed (i) thirty (30) days in the aggregate during the period of November 1 through April 30; or (ii) sixty (60) days in any calendar year, unless the owner engaging in such Personal Use satisfies all requirements for such excess use as set forth in the Declaration. Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 6 6. All Units shall be completely furnished with furniture, fixtures and equipment to the standards established by the owner or operator of the Condominium Hotel. A furniture, fixtures and equipment reserve account shall be established and maintained in order to maintain and, when necessary, replace the furniture, fixtures and equipment within the Units to maintain the facility in its First Class Condominium Hotel standard. 7. The proposed location, use, and design of the Condominium Hotel shall be consistent with the City's general plan, zoning ordinances, and any specific plan covering the area in question. 8. In accordance with the existing provisions of Chapter 3.24 of the La Quinta Municipal Code, every Condominium Hotel shall be subject to the City's transient occupancy tax requirements, as may be amended from time to time. The Owner of a Condominium Hotel Unit shall receive golf and other benefits which are available to residents of La Quinta on the same terms, and subject to the same conditions, as are applicable to such residents. 9. Any proposed Condominium Hotel that will not, as proposed, qualify as a First Class Condominium Hotel shall not be eligible to operate as a Condominium Hotel in the City of La Quinta. G. Provisions for Declaration. The Development Agreement submitted with the Condominium Hotel application shall include a draft Declaration of Covenants, Conditions and Restrictions ("Declaration") (which shall be separate and apart from the CC&Rs required to create the Units as condominiums pursuant to California law) which must be approved by the Community Development Director and the City Attorney prior to final approval of the Condominium Hotel application, and thereafter recorded against the Condominium Hotel in the Riverside County Recorder's Office. The Declaration shall include the following provisions: 1. The Declaration shall require the Units to be included within a Hotel, and (other than the Unit occupied by an on -site manager) made available as a Hotel accommodation when not being used for Personal Use. 2. The Declaration shall require that the Operator manage the Units for the Unit Owners pursuant to the Operator's then -standard form of agreement, and provide to the Condominium Hotel, the Property, and the Occupants and Owners of the Units, on a seven (7) day a week basis, any or all "on property" services commonly provided at First Class Condominium Hotels Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 7 and Resorts, including without limitation, such services as front desk check -in and check-out services (including electronic keys), routine housekeeping, laundry and dry cleaning, room service, catering and other food and beverage services, spa services, concierge services, parking and bellman services to the Unit Owner and the Unit Owner's guests. The availability and right to use such services shall be conditioned upon payment of such charges or fees as may be imposed generally on hotel guests. As to the availability and right to use services such as front desk check -in and use of resort pools, lobbies, recreational facilities, etc., which are not separately charged to Hotel guests, use will be conditioned upon the payment of such fees as are determined by the Operator to be appropriate to reflect the allocable costs of such services and facilities attributable to each Unit within the Hotel. The Operator shall have the exclusive right to restrict and control access to any and all shared facilities within the Condominium Hotel, provided the same does not restrict a Unit Owner's right of access to her, his or its Unit, except that Unit access shall be subject to mandatory registration at the Hotel front desk to obtain a key to the Unit, which key shall be an electronic key. The Operator's management obligations shall also include upkeep and repair of the interior of each Unit, and monitoring and managing repair and replacement of furniture, fixtures and equipment, both at the Unit Owner's sole cost and expense. 3. The Declaration shall require the Operator to provide a quarterly report to the City that contains all of the following information on each Unit: (a) the number of said Unit; (b► the name, address and telephone number of the Owner of the Unit; (c) whether the Operator is and has been the rental agent for said Unit during the immediately preceding calendar quarter; (d) the Personal Use during the immediately preceding calendar quarter; (a) the name and address of any occupant of the Unit (other than the Owner) whose occupancy exceeded the twenty-nine (29) day maximum; and (f) the TOT that has been collected by the Operator and remitted to the City for use of said Unit during the immediately preceding calendar quarter. 4. The Declaration shall require the Condominium Hotel owner or, if none, the Condominium Hotel's owner's association to hire a qualified professional Operator to manage, maintain and operate all portions of the Condominium Hotel in a manner consistent with the First Class Condominium Hotel Standard required by this Section. The Operator shall have at least five (5) consecutive years of experience in the hotel management business in hotels that meet the First Class Condominium Ordinance No. 432 Usage I Condominium Hotel Units Limiting Conversion I Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 8 Hotel standard and have no fewer than ten (10) other properties (each in separate cities, or distinct and separate projects in any given city, nationally or internationally) under current management. The Condominium Hotel Owner or owner's association, as the case may be, shall provide the City with appropriate documentation to demonstrate that the proposed Operator meets the requirements of this Subsection, to be approved by City staff prior to issuance of a certificate of occupancy for the Condominium Hotel. Upon request by the applicant, the City Manager may waive the experience standards required above upon finding that the proposed Operator has comparable substitute experience and qualifications. The Declaration shall include provisions regarding proposed changes in the Operator. 5. The Declaration shall give the Condominium Hotel Owner, Operator, and the City the right, power and obligation to enforce the First Class Condominium Hotel standard including, without limitation, the right to enter any portion of the Condominium Hotel, and any individual Condominium Hotel Units, to cure, or cause the Unit Owner to cure, any failure to meet the First Class Condominium Hotel standard; and shall permit the enforcement by the City, in its discretion, of this Section and the Declaration. 6. The Declaration shall provide that Hotel guests (whether Transient or Personal Use and not including any on -site manager) are prohibited from occupying or remaining in any Unit for more than twenty-nine (29) consecutive days, with a minimum seven (7) day period intervening between each twenty-nine (29) consecutive day use period. 7. The Declaration shall provide that Personal Use shall not exceed (i) thirty (30) days in the aggregate during the period of November 1 through April 30; or (ii) sixty (60) days in any calendar year, unless provisions for such excess use are provided for in the Development Agreement and are complied with by the Unit Owner. 8. Subject to applicable California general law and Department of Real Estate regulations, and unless otherwise provided in the Development Agreement, the Declaration shall provide that the obligation too pay any fees or changes provided for in the Development Agreement shall be secured by a lien in favor of the City encumbering the Units for the amount owed, including any permitted penalties or interest, and that the City shall have the right, but not the duty, to foreclose on any such liens through equitable or legal proceedings. r Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 9 9. The Declaration shall provide that it shall not be amended without the prior written consent of the City. H. Reporting and Inspection. Upon request of the City Manager, each Owner, the Condominium Hotel association and the Operator shall maintain, on -site, and regularly make available to the City and its employees and agents such information, books, records, and documentation, including all records relating to Personal Use and Transient use of each Unit, and also shall allow reasonable access to individual Units, as the City finds necessary to have or review in order to ensure that the City may determine and enforce the Condominium Hotel's compliance with this Section and other applicable City laws, regulations, the Condominium Hotel conditions, the Development Agreement, and the Declaration. The original and, upon each change, every subsequent Operator shall immediately advise the Community Development Director of its name, qualifications, address, telephone number and the name of a contact person. I. Conversions. An express purpose of these regulations is to preserve and enhance the City of La Quinta's existing Hotel inventory. All existing Hotels are prohibited from converting to Condominium Hotels from and after the Effective Date. Thereafter, no other conversions to Condominium Hotels shall be allowed in any zone, except that existing hotels with less than 20 units may apply to convert, provided that the Hotel, after conversion, would generate an equivalent, or greater amount of municipal revenue, and provided that the City Council finds that such conversion is in the best interest of the City." J. Prohibited Units. No provision herein shall be deemed to permit a timeshare, fractional or other vacation ownership unit if otherwise prohibited by the La Quinta Municipal Code. SECTION 2. SEVERABILITY. The provisions of this Ordinance shall be severable, and if any clause, sentence, paragraph, subdivision, section, or part of this Ordinance shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section, or part thereof directly involved in the controversy in which such judgment shall have been rendered. . �r Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 10 SECTION 3. LEGAL CONSTRUCTION. The provisions of this Ordinance shall be construed as necessary to effectively carry out its purposes, which are hereby found and declared to be in furtherance of the public health, safety and welfare. SECTION 4. All ordinances or parts of ordinances in conflict with the provisions of this Condominium Hotel Zoning Ordinance are hereby superseded by this Ordinance, to the extent they are inconsistent with this Ordinance. SECTION 5. EFFECTIVE DATE. This Ordinance shall take full force and effect and be in force 30 days after passage. SECTION 6. PUBLICATION. The City Clerk is directed to publish this Ordinance in the manner and in the time required by law. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 5`n day of December, 2006, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California „y Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 11 APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California Ordinance No. 432 Usage / Condominium Hotel Units Limiting Conversion / Hotels to Condominium Hotels Zoning Text Amendment 2006-088 Page 12 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE 1 ss. CITY OF LA QUINTA 1 I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 432 which was introduced at a regular meeting on the 21at day of November, 2006, and was adopted at a regular meeting held on the 5th day of December, 2006, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution 98-109. VERONICA J. MONTECINO, CIVIC, City Clerk City of La Quinta, California DECLARATION OF POSTING I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on pursuant to Council Resolution. VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: December 5, 2006 BUSINESS SESSION: ITEM TITLE: Consideration of Second Reading of Ordinance Approving a Development Agreement by and CONSENT CALENDAR: Between the City of La Quinta and LDD SilverRock, STUDY SESSION: LLC. PUBLIC HEARING: RECOMMENDATION: Adopt Ordinance Number _, on second reading approving Development Agreement 2006-012, as depicted in Exhibit A, with the additional changes. FISCAL IMPLICATIONS: In addition to the Transient Occupancy Tax (TOT) which the project will generate, the Development Agreement establishes fees for condo hotels and fractional/timeshare units. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The City, at its November 21, 2006 meeting, conducted a public hearing on the Development Agreement and introduced the Ordinance for first reading. During the public hearing, the staff report identified a number of modifications that would be incorporated into the Development Agreement. In addition, several final adjustments were made to ensure the Development Agreement and proposed Disposition and Development Agreement would be consistent. FINDINGS AND ALTERNATIVES: Findings necessary to approve the Development Agreement are included in the attached ordinance. 411 The alternatives available to the City Council include: 1. Adopt Ordinance Number _, on second reading approving Development Agreement 2006-012, as depicted in Exhibit A, with the additional changes; or 2. Do not take up the Ordinance; or 3. Provide staff with alternative direction. Respectfully submitted, �u Dougl R. vans Community Development Director Approved for submission by: Thomas P. Genovese, City Manager 413 ORDINANCE NO. 433 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA QUINTA AND LDD SILVERROCK, LLC DEVELOPMENT AGREEMENT 2006-012 WHEREAS, the Planning Commission, at its regularly scheduled meeting of November 14, 2006, considered the request of the City of La Quinta to enter into a Development Agreement with LDD SILVERROCK, LLC, establishing the fees associated with Condo Hotel occupancy at the proposed hotels at SilverRock Resort; and WHEREAS, after consideration of all written and oral testimony presented at the hearing, the Planning Commission recommended approval of the Development Agreement by the City Council; and WHEREAS, the City Council, at its regularly scheduled meeting of November 21, 2006, considered the Planning Commission's recommendation at a public hearing, including all written and oral testimony; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons wanting to be heard, said City Council did make the following mandatory findings recommending approval of said Development Agreement: 1. The proposed Development Agreement is consistent with the objectives, policies, general land uses and programs of the City of La Quinta General Plan and Specific Plan 06-080. 2. The land uses authorized and regulations prescribed for the Development Agreement are compatible with the zoning and its related regulations applicable to the property. 3. The proposed Development Agreement conforms to public convenience and the general welfare by providing for extensive public improvements and conforms to good land use practice by encouraging a long-range, comprehensive approach to the development of major hotel services and commercial development. Ordinance No. 433 LDD SilverRock / Development Agreement Adopted: December 5, 2006 Page 2 4. Approval of this Development Agreement will not be detrimental to the health, safety, and general welfare since adequate provisions has been made in previous City approvals to provide for necessary and desirable improvements which are incorporated herein. 5. Approval of this Development Agreement will not adversely affect the orderly development of the subject or surrounding property nor the preservation of area -wide property values, but rather will enhance them by encouraging planned, phased growth. 6. Consideration of the Development Agreement has been accomplished pursuant to California Government Code Section 65864 et seq. and the City of La Quinta Municipal Code Section 9.250.030, which governs Development Agreements. WHEREAS, said Development Agreement has complied with the requirements of "The Rules to Implement the California Environmental Quality Act of 1970" as amended (Resolution 83-63) in that the La Quinta Community Development Department has determined that the proposed Development Agreement was previously reviewed as part of the Mitigated Negative Declaration for the SilverRock Resort Specific Plan (EA No. 2002-453) and its Addendum, approved by the City Council under Resolution No. 2066-082, and that conditions have not changed, the project is in substantial conformance with the Specific Plan, and no further environmental review is required (PRC Section 21166). THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. FINDINGS AND APPROVAL: The above recitals are adopted as the findings of the City Council and the City Council approves the Development Agreement and authorizes the City Manager to execute the Agreement. SECTION 2. EFFECTIVE DATE AND RECORDATION: This Ordinance shall be in full force and effect thirty (30) days after its adoption. Within 10 days after the effective date of this Ordinance, the City Clerk shall cause the fully executed Development Agreement to be recorded in the office of the Riverside County Recorder. Ordinance No. 433 LDD SilverRock / Development Agreement Adopted: December 5, 2006 Page 3 SECTION 3. POSTING: The City Clerk shall cause this Ordinance to be posted in at least three public places designated by resolution of the City Council, shall certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting to be entered into the Book of Ordinances of the City of La Quinta. PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City Council held this 5th day of December, 2006 by the following vote: AYES: Council Members NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: VERONICA J. MONTECINO, CIVIC, City Clerk City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California w Ordinance No. 433 LDD SilverRock / Development Agreement Adopted: December 5, 2006 Page 4 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss. CITY OF LA QUINTA ) I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify the foregoing to be a full, true, and correct copy of Ordinance No. 433 which was introduced at a regular meeting on the 215S day of November, 2006, and was adopted at a regular meeting held on the 5`h day of December, 2006, not being less than 5 days after the date of introduction thereof. I further certify that the foregoing Ordinance was posted in three places within the City of La Quinta as specified in City Council Resolution 98-109. VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California DECLARATION OF POSTING I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California, do hereby certify that the foregoing ordinance was posted on pursuant to Council Resolution. VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California 422 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103 and 27383) DEVELOPMENT AGREEMENT by and between CITY OF LA QUINTA and LDD SILVERROCK, LLC 423 '82/015610-0084 750537 08 a12/01/06 -1- TABLE OF CONTENTS Pate 1.0 GENERAL........................................................................................................................3 1.1 Term......................................................................................................................3 1.2 Effective Date.......................................................................................................3 1.3 Amendment or Cancellation.................................................................................3 1.4 Termination...........................................................................................................3 1.5 Definitions.............................................................................................................4 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT...........................................................................7 2.1 Right to Develop...................................................................................................7 2.2 Additional Applicable Codes and Regulations.....................................................8 2.3 Permitted Density, Height and Use Limitations...................................................9 2.4 Developer Impact Fees.........................................................................................9 3.0 DEVELOPER'S OBLIGATIONS....................................................................................9 3.1 Development and Operation of the Project...........................................................9 3.2 Conditions of Approval; Mitigation Monitoring Program..................................10 3.3 Declaration of Covenants, Conditions and Restrictions.....................................11 3.4 Sign Agreements.................................................................................................11 3.5 Maintenance Agreements....................................................................................11 3.6 Water Agreements..............................................................................................12 3.7 Other Fees and Charges; Assessment Appeals...................................................12 3.8 Dedications and Improvements...........................................................................12 3.9 Indemnification...................................................................................................12 3.10 Insurance.............................................................................................................13 3.11 Transient Occupancy Tax Obligations................................................................15 4.0 CITY'S OBLIGATIONS................................................................................................15 4.1 Scope of Subsequent Review/Confirmation of Compliance Process.................15 4.2 Project Approvals Independent...........................................................................15 4.3 Review for Compliance......................................................................................15 5.0 DEFAULT; REMEDIES................................................................................................16 5.1 Notice of Default.................................................................................................16 5.2 Cure of Default...................................................................................................16 5.3 City Remedies.....................................................................................................16 5.4 Developer's Exclusive Remedy..........................................................................17 6.0 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE.................................17 6.1 Encumbrances on the Project Site......................................................................17 6.2 Mortgage Protection............................................................................................17 6.3 Mortgagee Not Obligated....................................................................... :........... 17 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure ............................18 882/01561M084 750537 08 a12/01/06 '1' Page 7.0 TRANSFERS OF INTEREST IN SITE, AGREEMENT, OR MANAGEMENT............................................................................................................18 7.1 Transfers of Interest in Site, Agreement, or Management..................................18 7.2 Successors and Assigns.......................................................................................20 7.3 Assignment by City.............................................................................................20 8.0 MISCELLANEOUS.......................................................................................................21 8.1 Notices................................................................................................................21 8.2 Binding Effect.....................................................................................................21 8.3 Independent Entity..............................................................................................22 8.4 Agreement Not to Benefit Third Parties.............................................................22 8.5 Covenants............................................................................................................22 8.6 Nonliability of City Officers and Employees.....................................................22 8.7 Covenant Against Discrimination.......................................................................22 8.8 Amendment of Agreement..................................................................................22 8.9 No Waiver...........................................................................................................23 8.10 Severability......................................................................................................... 23 8.11 Cooperation in Carrying Out Agreement............................................................23 8.12 Estoppel Certificate.............................................................................................23 8.13 Construction........................................................................................................24 8.14 Recordation.........................................................................................................24 8.15 Captions and References.....................................................................................24 8.16 Time....................................................................................................................24 8.17 Recitals & Exhibits Incorporated; Entire Agreement.........................................24 8.18 Exhibits...............................................................................................................24 8.19 Counterpart Signature Pages...............................................................................25 8.20 Authority to Execute; Representations and Warranties......................................25 8.21 City Approvals and Actions................................................................................25 8.22 Governing Law; Litigation Matters....................................................................25 8.23 No Brokers..........................................................................................................26 "2/015610-0084 750537 08 a12/01106 -11- DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement') is entered into as of the 5`h day of December, 2006 ("Reference Date"), by and between the CITY OF LA QUINTA, a California municipal corporation and charter city organized and existing under the Constitution of the State of the California (the "City"), and LDD SILVERROCK, LLC, a Delaware limited liability company (the "Developer"), with reference to the following: RECITALS: A. Government Code Sections 65864-65869.5 ("Development Agreement Act') authorize the City to enter into a binding development agreement for the development of real property within its jurisdiction with persons having legal or equitable interest in such real property. B. Pursuant to Section 65865 of the Government Code, the City has adopted its Development Agreement Ordinance (La Quinta Municipal Code Section 9.250.030) establishing procedures and requirements for such development agreements ("Development Agreement Ordinance"). C. Prior to or concurrently with the execution of this Agreement, Developer has entered into a Disposition and Development Agreement (the "DDA") with the La Quinta Redevelopment Agency ("Agency"), pursuant to which (1) the Agency, subject to the terms and conditions set forth in the DDA, has agreed to sell to the Developer, in multiple phases, certain real property located within the City at the southwest intersection of Jefferson Street and Avenue 52 which is legally described in Exhibit A-1 attached hereto and shown on the Site Map attached hereto as Exhibit A-2 (the "Site"); and (2) the Developer has agreed to construct on the Site the "Project," which will consist of a commercial development, and other permitted uses. The Project is more fully described in, and subject to (i) this Agreement, (ii) the SilverRock Resort Specific Plan, also known as Specific Plan 06-080, which was amended by Resolution No. 2006-083, which resolution was duly adopted by the City Council on July 18, 2006 (the "Specific Plan"); (iii) the DDA, (iv) the Mitigated Negative Declaration prepared for the Project, approved by the Agency on May 15, 2002, by Agency Resolution 2002-09, as updated by the Addendum to Mitigated Negative Declaration, approved by the City Council on July 18, 2006, by City Council Resolution No. 2006-082 (collectively, the "Updated Mitigated Negative Declaration"); (v) any future Site Development Permits issued for the Project, including all conditions of approval attached thereto (collectively, the "Project Site Development Permits"); (vi) Parcel Map No. 33367 and any further parcel or subdivision maps to be recorded on the Site and the conditions of approval thereon; and (vii) the conditions of approval associated with each and all of the foregoing approvals (collectively, the "Conditions of Approval'). The documents, permits, approvals, and conditions described in the foregoing clauses (i)-(vii) are collectively referred to herein as the "Development Plan," and are, or when approved or issued shall be, on file with the City Clerk. D. By virtue of the DDA, as of the execution of this Agreement, the Developer has an equitable interest in the Site. By its execution of the consent form attached to this Agreement, the Agency consents to recordation of this Agreement against the Site. 882/015610-0084 75053708 a] 2/01/06 h/ C E. Consistent with Section 9.250.030 of the La Quinta Municipal Code, City and Developer desire to enter into a binding agreement for purposes of (i) obligating Developer to enter into and record, against each Parcel a City Declaration of CC&Rs that sets forth certain requirements of the owners of (a) the Condominium Hotel Units to pay certain resort fees if their Unit fails to generate specified levels of Transient Occupancy Tax, and (b) all of the Fractional Units to pay a resort fee; (ii) requiring the Developer to enter into maintenance agreements with the Agency or City obligating the Developer to maintain certain portions of the golf course lakes located or to be located adjacent to the Site and certain landscaped parkways, sidewalks, and trails, all as depicted on Exhibit "B" hereof, which is attached hereto and incorporated herein by this reference (collectively, the "Public Improvements"); (iii) requiring the Developer to enter into water agreements and signage agreements; and (iv) setting forth the manner in which Developer shall construct, develop, use and operate the Project, if Developer purchases the site as provided in the DDA. F. Among other purposes, this Agreement is intended to be, and shall be construed as, a development agreement within the meaning of the Development Agreement Act. This Agreement will eliminate uncertainty in planning for and secure the orderly development of the Project, ensure a desirable and functional community environment, provide effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, and assure attainment of the maximum effective utilization of resources within the City, by achieving the goals and purposes of the Development Agreement Act. In exchange for these benefits to City, Developer desires to receive the assurance that if it acquires the Site in accordance with the DDA, it may proceed with development of the Project in accordance with the terms and conditions of this Agreement and the Development Plan, all as more particularly set forth herein. G. The Planning Commission and the City Council have determined that the Project and this Agreement are consistent with the City's General Plan and the Specific Plan, including the goals and objectives thereof. H. All actions taken by City have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) ("CEQA"), and all other requirements for notice, public hearings, findings, votes and other procedural matters. I. On December 5, 2006, the City Council adopted its Ordinance No. 433 approving this Agreement. AGREEMENT. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the parties do hereby agree as follows: - 4'7 882/015610-0084 750537.08 a12/01/06 -2- 1.0 GENERAL 1.1 Term. The term of this Agreement shall commence on the Effective Date hereof and shall continue for thirty (30) years thereafter, unless said term is otherwise terminated, modified, or extended as set forth in this Agreement or by mutual consent of the parties hereto, after the satisfaction of all applicable public hearing and related procedural requirements. 1.2 Effective Date. This Agreement shall be effective, and the obligations of the parties hereunder shall be effective, as of January 4, 2007, which is the date that Ordinance No. 433 takes effect ("Effective Date"). 1.3 Amendment or Cancellation. Except as expressly stated to the contrary herein, this Agreement may be amended or canceled in whole or in part only by mutual consent of the parties and in the manner provided for in Government Code Section 65867-65868 and the City's Development Agreement Ordinance. Notwithstanding the foregoing, in the event that one or more Parcels are under different ownership at some time during the Term hereof, the City and the then -owner of any Parcel may amend the terms of this Development Agreement and the Development Plan with respect to said Parcel, without obtaining the approval or consent of the owners of the other Parcels. 1.4 Termination. Unless terminated earlier, pursuant to the terms hereof, this Agreement shall automatically terminate and be of no further effect upon the expiration of the Term of this Agreement as set forth in Section 1.1. Termination of this Agreement, for any reason, shall not, by itself, affect any right or duty arising from entitlements or approvals set forth under the Development Plan, and shall have no effect on the obligations imposed under the City Declaration of CC&Rs. Notwithstanding anything herein to the contrary, in the event the "Initial Escrow" (as that term is defined in the DDA) fails to close within the time period set forth in the DDA, as such time may be extended pursuant to the terms of the DDA, this Agreement shall automatically terminate. Within 30 days after the opening of the Initial Escrow, Developer shall deliver to the Escrow Officer, in a form acceptable to the City Attorney and the "Title Company" (as that term is defined in the DDA), a quitclaim deed, releasing of all of Developer's interest in this Agreement in a form which may be recorded (the "Quitclaim") in the event that the Initial Escrow fails to close within the time set forth in the DDA, as such time may be extended pursuant to the terms of the DDA (the "Initial Escrow Closing Date"). In such event, within ten (10) days after the Initial Escrow Closing Date, Developer agrees to execute and submit to the Title Company or the City joint escrow instructions authorizing the Escrow Officer to record the Quitclaim. The Developer and City agree to execute and record such additional document(s) as the Title Company reasonably requires to remove this Agreement of record. 882/015610-0084 750537.08 a12/01/06 -3- If the Initial Escrow does close, but one or more of the subsequent escrows described in the DDA fail to close within the time period set forth in the DDA, as such time may be extended pursuant to the terms of the DDA, this Agreement shall automatically terminate with regard to the Parcels involved in the escrow or escrows which failed to close, and Developer and City agree to execute and record such document(s) as the Title Company reasonably requires to remove this Agreement of record with respect to such Parcels. 1.5 Definitions. 1.5.1 "Agency" shall have the meaning ascribed in Recital C hereof. 1.5.2 "Authorized Manager" shall have the meaning ascribed in Section 3.1 hereof. 1.5.3 "Black Box Parcel' shall mean that certain real property designated as Lot 4 on the Parcel Map. The Black Box Parcel is comprised of approximately .78 acres. 1.5.4 `Boutique Hotel Parcel' shall mean that certain real property designated as Lot 19 on the Parcel Map. The Boutique Hotel Parcel is comprised of approximately 13.79 acres. The Boutique Hotel Parcel may be subdivided into two or more legal parcels after the Effective Date. In such event, when used herein, the terms "Boutique Hotel Parcel' shall refer to all such legal parcels. 1.5.5 "City" shall mean the City of La Quinta, a California municipal corporation and charter city organized and existing under the Constitution of the State of California. 1.5.6 "City Declaration of CC&Rs" shall have the meaning ascribed in Section 3.3.1 hereof. 1.5.7 "Conditions of Approval' shall have the meaning ascribed in Recital C hereof. 1.5.8 "Condominium Hotel Unit' means a Unit which is sold to a third party owner, but which, when not in use by such owner, is part of the inventory of rooms available for transient occupancy within the Project. 1.5.9 "CV WD" shall have the meaning ascribed in Section 3.6 hereof. 1.5.10 "DDA" shall have the meaning ascribed in Recital C hereof. 1.5.11 "Developer" shall mean LDD SilverRock, LLC, a Delaware limited liability company. 1.5.12 "Developer CC&Rs" shall have the meaning ascribed in Section 3.3.2 hereof. i 1.5.13 "Development Agreement Act' shall have the meaning ascribed in Recital A hereof. 882/015610-0084 750537 08 a12/01/06 -4- 1.5.14 "Development Agreement Ordinance" shall have the meaning ascribed in Recital B hereof. hereof. 1.5.15 "Development Plan" shall have the meaning ascribed in Recital C 1.5.16 "DHR" shall have the meaning ascribed in Section 3.1 hereof. 1.5.17 "Effective Date" shall have the meaning ascribed in Section 1.2 hereof. 1.5.18 "Existing Development Regulations" shall have the meaning ascribed in Section 2.1 hereof. 1.5.19 "Fee Transfer Release Date" shall have the meaning ascribed in Section 7.1.1 hereof. 1.5.20 "Four Star Quality" means that the applicable component of the Project offers and provides the services, facilities and amenities listed in Exhibit "C", which is attached hereto and incorporated herein by this reference. 1.5.21 "Fractional Unit' means a Unit that is either (a) a condominium, the ownership of which is divided into multiple fractional interests, including, without limitation, timeshare interests, each of which can either be owned by a separate owner or by single owner, and each of which gives such owner the right to use such Unit for a different period of time; or (b) a Unit that is owned in fee by the Developer, DHR, or a successor in interest that is authorized or permitted pursuant to Section 7.1 hereof, and in which memberships are sold to third parties giving such parties the right to use and occupy the Unit for certain periods of time. 1.5.22 "Golf Casitas Parcel' shall mean that certain real property designated as Lot 11 on the Parcel Map. The Golf Casitas Parcel is comprised of approximately eight and sixty-three one hundredths (8.63) acres. 1.5.23 "Hotel Unit' means the Units in the Project that will be owned in fee by Developer or any successor authorized pursuant to Section 7.1.1 hereof and managed by DHR or any successor hotel management entity authorized or approved by the City pursuant to Section 7.1.2 hereof. None of the Hotel Units may be sold as Condominium Hotel Units or as Fractional Units. 1.5.24 "Initial Escrow Closing Date" shall have the meaning ascribed in Section 1.4 hereof. 1.5.25 "Lake Casitas Parcel' shall mean that certain real property designated as Lot 23 on the Parcel Map. The Lake Casitas Parcel is comprised of approximately 3.82 acres. 1.5.26 "Lowe Enterprises" means Lowe Enterprises, Inc., a California corporation, which is an affiliate of Developer. 882/015610-0084 750537.08 a12/01/06 -5- 1.5.27 "Management Transfer" shall have the meaning ascribed in Section 7.1.2 hereof. 1.5.28 "Management Transfer Release Date" shall have the meaning ascribed in Section 7.1.2 hereof. 1.5.29 "New Laws" shall have the meaning ascribed in Section 2.1 hereof. 1.5.30 "Operating Covenant Release Date" shall have the meaning ascribed in Section 3.1.7 hereof. 1.5.31 "Parcel' shall mean any of the Boutique Hotel Parcel, Black Box Parcel, Resort Hotel Parcel, Resort Retail Village Parcel, Golf Casitas Parcel, or Lake Casitas Parcel. 1.5.32 "Parcel Map" means Parcel Map No. 33367, which has been prepared by the Agency for recordation in the Official Records of Riverside County, California, prior to or concurrently with the closing of the Initial Escrow. A copy of the Parcel Map is attached to the DDA as Attachment No. 11. 1.5.33 "Performance Audit' shall have the meaning ascribed in Section 3.1 hereof. 1.5.34 "Performance Consultant' shall have the meaning ascribed in Section 3.1 hereof. 1.5.35 "Performance Default Payment' shall have the meaning ascribed in Section 3.1 hereof. 1.5.36 "Phase of Development' shall mean the component of the Project to be constructed on a particular Parcel, as further described in the DDA. 1.5.37 "Project' shall have the meaning ascribed in Recital C hereof. 1.5.38 "Project Site Development Permits" shall have the meaning ascribed in Recital C hereof. 1.5.39 "Quitclaim" shall have the meaning ascribed in Section 1.4 hereof. 1.5.40 "Ranch Villas Parcel" means that certain real property designated as Lot 22 on the Parcel Map. The Ranch Villas Parcel is comprised of approximately 2.43 acres. 1.5.41 "Reference Date" shall have the meaning ascribed in the preamble hereof. 1.5.42 "Resort Hotel Parcel' means that certain real property designated as Lot 3 on the Parcel Map. The Resort Hotel Parcel is comprised of approximately 19.65 acres. 882/015610-0084 ~ 750537.08 a12/01/06 -6- �� v 1.5.43 "Resort Retail Village Parcel" means that certain real property designated as Lot 5 on the Parcel Map. The Resort Retail Village Parcel is comprised of approximately 11.88 acres. 1.5.44 "SilverRock Resort Area" means the real property included in and covered by the Specific Plan. 1.5.45 "Site" shall have the meaning ascribed in Recital C hereof. 1.5.46 "Specific Plan" shall have the meaning ascribed in Recital C hereof. 1.5.47 "Term" shall have the meaning ascribed in Section 1.1 hereof. 1.5.48 "Transfer" shall have the meaning ascribed in Section 7.1.1 hereof. 1.5.49 "Transient Occupancy Tax" shall have the meaning ascribed in Chapter 3.24 of the La Quinta Municipal Code. 1.5.50 "Unit" shall mean one of the approximately six hundred eighty (680) guest units comprising the Project. All Units shall be developed as Condominium Hotel Units, Fractional Units, and/or Hotel Units, and all such development shall be in accordance with the requirements of the Specific Plan. 1.5.51 "Updated Mitigated Negative Declaration" shall have the meaning ascribed in Recital C hereof. 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT 2.1 Right to Develop. Subject to the terms, conditions, and covenants of this Agreement, Developer's right to develop the Project in accordance with the Development Plan (and subject to the Conditions of Approval) shall be deemed vested upon approval of all of the components that comprise the Development Plan, which vesting shall expire upon the earlier of the following occurrences: (a) termination of this Agreement; (b) termination of the DDA; (c) an uncured material default by Developer of this Agreement or of the DDA; or (d) as to a particular Phase of Development, or a particular Parcel, the earlier of the final approved City inspection of the completed development of such Phase of Development or Parcel, or the issuance by City of a final certificate of occupancy for such Phase of Development or Parcel. Except for the expiration set forth in clause (a) of the preceding sentence, the expiration of the vesting right set forth in the preceding sentence shall not terminate the obligations of Developer under this Agreement, nor shall the expiration of said vesting right cancel or terminate any recorded City Declaration of CC&Rs, regardless of the expiration of clause (a) above. Notwithstanding anything in this Agreement to the contrary, the Site and the Project shall remain subject to: (i) all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees existing on the Effective Date of this Agreement, including, without limitation, 862/015610-0084 750537 08 al2/01106 -7- Section 9.140.080 of the La Quinta Municipal Code (collectively, the "Existing Development Regulations"); (ii) all amendments or modifications to Existing Development Regulations after the Effective Date of this Agreement and all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees enacted or adopted after the Effective Date of this Agreement (collectively, "New Laws"), except such New Laws which would prevent or materially impair Developer's ability to develop the Project in accordance with the Development Plan, and as to such New Laws that would prevent or materially impair Developer's ability to develop the Project, they will not apply to the Project unless such New Laws are: (A) adopted by the City on a City-wide basis and applied to the Site in a non-discriminatory manner and are necessary to protect the public's health and safety and do not result in a moratorium on development of the Site, (B) required by a non -City entity to be adopted by or applied by the City (or if optional the failure to adopt or apply such non -City law or regulation would cause City to sustain a loss of funds or loss of access to funding or other resources), or (C) New Laws the City expressly reserves the right to apply under this Agreement, including but not limited to those in Sections 2.2 and 3.7; (iii) all subsequent development approvals and the conditions of approval associated therewith, including but not limited to Site Development Permits and building permits, (iv) the payment of all fees or exactions in the categories and in the amounts as required at the time such fees are due and payable which may be at the time of issuance of building permits, or otherwise as specified by applicable law, as existing at the time such fees are due and payable, and (v) the reservation or dedication of land for public purposes or payment of fees in lieu thereof as required at the time such reservations or dedications or payments in lieu are required under applicable law to be made or paid. 2.2 Additional Applicable Codes and Regulations Notwithstanding any other provision of this Agreement, City also reserves the right to apply the following to the Site and to the development of the Project: 2.2.1 Building, Electrical, Mechanical, Fire and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, as existing on the Effective Date of this Agreement or as may be enacted or amended thereafter, so long as they are applied to the Project in a nondiscriminatory manner. 2.2.2 In the event of fire or other casualty requiring reconstruction of more than fifty (50%) percent of any building previously constructed hereunder, nothing herein shall prevent the City from applying to such reconstruction all requirements of the City's Building, Electrical, Mechanical, Fire, and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, solely to the extent applicable to all development projects in the City. ti 4 882/015610-0084 750537.08 al2/01/06 -8- 2.2.3 This Agreement shall not prevent the City from establishing any new City fees, including new development impact fees, or increasing any existing City fees, including existing development impact fees, including but not limited to the resort fees described in and required pursuant to the City Declaration of CC&Rs, and to apply such new or increased fees to the Project or applicable portion thereof where such new or increased fees may be charged, so long as such fees are applicable City-wide. 2.3 Permitted Density, Height and Use Limitations. The permitted uses, density and intensity of use, location of uses, maximum height and size of proposed buildings, minimum setbacks, and other standards applicable to the Project shall be those set forth in the Development Plan. 2.4 Developer Impact Fees. For purposes of calculating required Developer Impact Fees, all Units in the Project shall be deemed to be, and shall pay fees as, a hotel project, and shall not be treated as, nor charged Developer Impact Fees as, residential units. 3.0 DEVELOPER'S OBLIGATIONS 3.1 Development and Operation of the Project. Developer shall construct the Project on the Site in accordance with the Development Plan, including, without limitation, all of the timeframes set forth in the DDA. Developer shall enter into the necessary agreements to ensure that Destination Hotels & Resorts, Inc., a California corporation ("DHR"), shall initially manage and operate the Phases of Development developed on the Boutique Hotel Parcel, the Resort Hotel Parcel, the Lake Casitas Parcel, the Golf Casitas Parcel, and the Ranch Villas Parcel all in accordance with the requirements of this Section 3.1. Notwithstanding anything herein to the contrary, until the Management Transfer Release Date for each Phase of Development that includes Units, DHR or a successor entity authorized pursuant to Section 7.1.2 (DHR or such permitted successor entity, an "Authorized Manager") shall retain full management and operational control over all components of such Phase of Development. The Authorized Manager of the hotel and Units to be developed on the Resort Hotel Parcel shall also be the Authorized Manager for the Units to be developed on the Golf Casitas Parcel and the Lake Casitas Parcel. The Authorized Manager of the hotel and Units to be developed on the Boutique Hotel Parcel shall also be the Authorized Manager for the Units to be developed on the Ranch Villas Parcel, regardless of whether the Boutique Hotel Parcel is subsequently subdivided into two or more Parcels. Developer, on behalf of itself and any Authorized Manager, covenants and agrees that each of the Phases of Development that include Units shall, upon its completion, be operated in a Four Star Quality condition until the twentieth (201h) anniversary of the date the Agency issues a Release of Construction Covenants for such Phase of Development (the "Operating Covenant Release Date"). No more than once per year after completion of any of the Phases of Development that include Units, the City may select an independent consultant (the "Performance Consultant") to perform a quality audit of such Phase(s) of Development for purposes of determining that the applicable Phase of Development is operating at a Four Star Quality (the "Performance Audit"). The then -owner of the applicable n 882/015610-0084 .. 404 750537 08 al2/01/06 -9- Phase of Development shall reimburse the City for the reasonable costs of the Performance Audit. In the event that the Performance Audit concludes that the Phase of Development is not operating at a Four Star Quality, Developer shall pay to the City the sum of One Thousand Dollars ($1,000) per day, as liquidated damages (the "Performance Default Amount"), for each day that passes until the items noted in the Performance Audit have been corrected, as determined by the Performance Consultant. All of the costs and fees charged by the Performance Consultant for any follow-up inspections shall be paid by Developer. LIQUIDATED DAMAGES. IF THE PERFORMANCE AUDIT CONCLUDES THAT A PHASE OF DEVELOPMENT IS NOT OPERATING AT A FOUR STAR QUALITY, THEN AND IN SUCH EVENT, NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, CITY AND DEVELOPER AGREE THAT CITY WILL INCUR DAMAGES BY REASON OF SUCH DEFAULT BY DEVELOPER, WHICH DAMAGES SHALL BE IMPRACTICAL AND EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE, TO ASCERTAIN. CITY AND DEVELOPER, IN A REASONABLE EFFORT TO ASCERTAIN WHAT CITY'S DAMAGES WOULD BE IN THE EVENT OF SUCH DEFAULT BY DEVELOPER, HAVE AGREED BY PLACING THEIR INITIALS BELOW, THAT CONSIDERING ALL OF THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, INCLUDING THE RELATIONSHIP OF THE SUM TO THE RANGE OF HARM TO CITY THAT REASONABLY COULD BE ANTICIPATED, INCLUDING WITHOUT LIMITATION THE POTENTIAL LOSS OF TAX REVENUE TO THE CITY, AND THE ANTICIPATION THAT PROOF OF ACTUAL DAMAGES WOULD BE COSTLY OR INCONVENIENT, THE PERFORMANCE DEFAULT AMOUNT SHALL BE DEEMED TO CONSTITUTE A REASONABLE ESTIMATE OF CITY'S DAMAGES UNDER THE PROVISIONS OF SECTION 1671 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IN THE EVENT OF AND FOR SUCH DEFAULT BY DEVELOPER, DEVELOPER SHALL BE REQUIRED TO PAY TO CITY THE PERFORMANCE DEFAULT AMOUNT AS LIQUIDATED DAMAGES AND AS CITY'S SOLE DAMAGE REMEDY AGAINST DEVELOPER FOR A DEFAULT UNDER THIS SECTION 3.1; PROVIDED, HOWEVER, THAT CITY RETAINS AND RESERVES THE RIGHT TO EXERCISE ANY OTHER LEGAL OR EQUITABLE REMEDIES AVAILABLE TO CITY HEREUNDER, INCLUDING, WITHOUT LIMITATION, THE RIGHT TO BRING AN ACTION FOR SPECIFIC PERFORMANCE. CITY AND DEVELOPER SPECIFICALLY ACKNOWLEDGE THIS LIQUIDATED DAMAGES PROVISION BY THEIR SIGNATURES BELOW: CITY DEVELOPER 3.2 Conditions of Approval; Mitigation Monitoring Program. Developer shall comply with all Conditions of Approval. The Developer shall also comply with the mitigation monitoring program set forth in Exhibit "D" attached hereto, which includes and incorporates the mitigation measures of the Updated Mitigated Negative Declaration to ensure that significant environmental effects will be mitigated or avoided (the "Mitigation Monitoring Program"). 882/01561M084 4 3 750537 08 al2/01/06 -10- 3.3 Declaration of Covenants, Conditions and Restrictions. 3.3.1 Recordation of City Declaration of CC&Rs. As one of the Agency's conditions to closing under the DDA for any Parcel that will be developed with Condominium Hotel Units and/or Fractional Units, Developer shall have entered into with the City and recorded against the underlying Parcel a Declaration of Covenants, Conditions and Restrictions in the form attached hereto and incorporated herein as Exhibit "E" (a "City Declaration of CC&Rs"), the covenants of which shall bind all of the Parcels on which Units will be developed and each and every Condominium Hotel Unit, Fractional Unit, and Hotel Unit developed thereon in perpetuity and shall survive the termination of this Agreement. 3.3.2 Recordation of Developer CC&Rs. Prior to and as a condition to the City's issuance of a temporary or final certificate of occupancy for any Parcel that will be developed with Condominium Hotel Units and/or Fractional Units, Developer shall have submitted to City, obtained City's approval of, and recorded against the underlying Parcel, a declaration of covenants, conditions, and restrictions that (i) establishes a homeowners' association, (ii) is necessary to create a condominium regime for the condominiums described on the Condominium Plan to be recorded in accordance with all applicable laws; (iii) clearly sets forth the maintenance obligations of the owners of the Condominium Hotel Units and Fractional Units; (iv) sets forth the obligations of the owners of the Condominium Hotel Units and Fractional Units to pay certain resort fees, as further set forth in the City Declaration of CC&Rs, and requires all such resort fees to be paid and brought current prior to any sale by the owner thereof, and (v) includes a disclosure regarding the public ownership and control of the existing golf course and any future golf course that may be developed in the SilverRock Resort Area and a statement that Developer does not and cannot guarantee that the City will not make changes to such golf course(s) or change the use of the underlying real property (the "Developer CC&Rs"). The Developer CC&Rs shall provide that the City is a third party beneficiary thereof with the right, but not the obligation, to enforce the terms thereof which are required hereby, and shall require the written approval of the City prior to any amendments thereto to any of the provisions which are required hereby. 3.4 Sign Agreements. As one of Agency's conditions to closing under the DDA for the Boutique Hotel Parcel, Resort Hotel Parcel, and Resort Retail Village Parcel, Developer shall enter into with the City or the Agency (as applicable) a signage agreement for such Parcel. Notwithstanding other signage locations to be determined during the site development permit process, the signage agreement for the Boutique Hotel Parcel shall provide for signage along Avenue 52, at the entry point to the development; the signage agreement for the Resort Hotel Parcel shall provide for signage on Jefferson Street, at the Resort Hotel entry point; the signage agreement for the Resort Retail Village Parcel shall provide for signage at the corner of Avenue 52 and Jefferson Street, Avenue 54 and Jefferson Street, and on Avenue 54, at the entry into the SilverRock Resort Area. 3.5 Maintenance Agreements. As one of Agency's conditions to closing for each Parcel under the DDA, Developer shall enter into with the City or the Agency (as applicable) a maintenance agreement requiring the Developer to maintain the Public Improvements located adjacent to such Parcel. 882/015610-0084 ' 75053708 a12/01/06 -11- ` J V 3.6 Water Agreements. City has entered into with the Coachella Valley Water District ("CVWD") that certain Domestic Water and Sanitation Systems Installation and Irrigation Service Agreement dated on or about June 11, 2005, and recorded in the Official Records of the County of Riverside, as Instrument No. 2005-0852063, on June 14, 2005 (the "CVWD Agreement"). Pursuant to the CVWD Agreement, the owner/developer of each Parcel is required to execute and record a Domestic Water and/or Sanitation Systems Installation Agreement, substantially in the form attached to the CVWD Agreement as Exhibit C (a "Water Agreement"), prior to obtaining domestic water service for each said Parcel. As one of Agency's conditions to closing for each Parcel under the DDA, Developer shall execute and record against such Parcel at the Closing therefor a Water Agreement. 3.7 Other Fees and Charges; Assessment Appeals. Nothing set forth in this Agreement is intended to or shall be construed to limit or restrict the City's authority to impose its existing, or any new or increased, fees, charges, levies, or assessments for the development of the Site, or to impose or increase, subject to the required procedure, any taxes applicable to the Site including but not limited to transient occupancy taxes, provided nothing set forth herein, subject to the following two sentences, is intended or shall be construed to limit or restrict whatever right Developer might otherwise have to challenge any fee, charge, levy, assessment, or tax imposed. Developer agrees on behalf of itself and on behalf of all persons or entities that may own an interest in the Site or the Units in the future that no action shall be taken, including any assessment appeal, to decrease the assessed value of any of the Site or any portion thereof below the final assessed value at the time the development of the Site or separate Parcel thereof is completed. Developer agrees on behalf of itself, and on behalf of all persons or entities that may own an interest in the Site or the Units in the future that during the term hereof no action shall be taken to challenge, cancel, reduce, or otherwise negate the payments required to be made to the City pursuant to the City Declaration of CC&Rs. Developer shall timely pay all applicable fees, charges, levies, assessments, and special and general taxes validly imposed in accordance with the Constitution and laws of the State of California, including without limitation school impact fees in accordance with Government Code §§ 65995, et seq. 3.8 Dedications and Improvements. Developer shall offer dedications to the City or other applicable public agency, or complete those public improvements in connection with the Project, as specified in the Conditions of Approval. 3.9 Indemnification. a. The Developer agrees to and shall indemnify, hold harmless, and defend, the City and the Agency and their respective officers, officials, members, agents, employees, and representatives, from liability or claims for death or personal injury and claims for property damage which may arise from the negligent or grossly negligent acts, errors, and/or omissions of the Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf in relation to the Project and/or this Agreement. The foregoing indemnity applies to all 882/015610.0084 4Ji 750537.08 a12/01106 -12- deaths, injuries, and damages, and claims therefor, suffered or alleged to have been suffered by reason of the negligent or grossly negligent acts, errors, and/or omissions referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications, or both, and regardless of whether or not the insurance policies referred to in this Agreement are applicable. hi the event of litigation, the City agrees, at no cost to the City, to cooperate with the Developer. The Developer shall have the obligation to provide the defense of the City and/or Agency in the litigation, either by providing for legal counsel or, at the City's or Agency's option, timely paying the legal costs incurred by the City and or the Agency in the defense of litigation, even though negligence or gross negligence of the Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf has not been established at the time that the defense is provided. b. hi the event of any court action or proceeding challenging the validity of this Agreement or the Development Plan, the Developer shall indemnify, hold harmless, pay all costs and provide defense for the City in said action or proceeding with counsel chosen by Developer and reasonably approved by the City. The City shall, at no cost to the City, cooperate with the Developer in any such defense as Developer may reasonably request. In the event the Developer fails or refuses to provide such defense of any challenge to this Agreement or the Development Plan, or any component thereof, City shall have the right not to defend such challenge, and to resolve such challenge in any manner it chooses in its sole discretion, including terminating this Agreement. 3.10 Insurance. Before beginning construction on the Site, the Developer shall cause the insurance required under this paragraph to be issued and thereafter to be maintained until one (1) year following the later of (i) the date City issues the last certificate of occupancy needed for the initial occupancy of the last portion of the Project, or (ii) the date the City signs off on the last final inspection of the last of the Project improvements. Developer shall procure and maintain: A policy of commercial general liability insurance written on a per occurrence basis in an amount not less than Three Million Dollars ($3,000,000.00) per occurrence and Three Million Dollars ($3,000,000.00) in the aggregate. A policy of workers' compensation insurance in such amount as will fully comply with the laws of the State of California against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by Developer in the course of carrying out the work or services contemplated in this Agreement. A policy of commercial automobile liability insurance written on a per occurrence basis in an amount not less than Three Million Dollars ($3,000,000.00). Said policy shall include coverage for owned, non -owned, leased, and hired cars. The following additional requirements shall apply to all of the above policies of insurance: 882/015610-0084 v 750537.08 a12/01/06 -13- All of the above policies of insurance shall be primary insurance and, except the Worker's Compensation insurance, shall name City, Agency, and their respective officers, officials, members, employees, agents, and representatives as additional insureds, using a pre- 2004 additional insured endorsement (or equivalent). The insurer shall waive all rights of subrogation and contribution it may have against City, Agency, and their officers, officials, members, employees, agents, and representatives, and their respective insurers. All of said policies of insurance shall provide that said insurance may not be materially amended or cancelled without providing thirty (30) days' prior written notice to City and Agency. In the event any of said policies of insurance are cancelled, the Developer shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the City Manager. Not later than the Effective Date, Developer shall provide the City Manager with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders shall be subject to the reasonable approval of the City Manager. Upon the request of the City Manager, Developer shall provide City with complete copies of each policy of insurance required by this Agreement. The policies of insurance required by this Agreement shall be satisfactory only if issued by companies (i) licensed and admitted to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, or (ii) authorized to do business in California, rated "A+" or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Registry and only if they are of a financial category Class XV. Notwithstanding the foregoing, in the event that the policies required hereunder are not available from such insurers at commercially reasonable rates, the City Manager shall have the authority, in his or her sole and absolute discretion, to waive one or more of such requirements provided the proposed policies will adequately protect the City's interests hereunder. City may reasonably require coverage increases, provided that the percentage increase in coverage shall not be required to exceed the percentage increase in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics, for Urban Wage Earners and Clerical Workers, Los Angeles -Riverside -Orange County Average, All Items (1984 = 100) (the "Index"), from and after the date of this Agreement, or, if said Index is discontinued, such official index as may then be in existence and which is most nearly equivalent to said Index (the "CPI Adjustment"). Unless otherwise approved in advance by the City Manager, the insurance to be provided by Developer may provide for a deductible or self -insured retention of not more than Fifty Thousand Dollars ($50,000), with such maximum amount to increase at the same rate as the periodic increases in the minimum amount of total insurance coverage set forth above. Developer agrees that the provisions of this Section shall not be construed as limiting in any way the extent to which Developer may be held responsible for the payment of damages to any persons or property resulting from the Developer's activities or the activities of any person or persons for which the Developer is otherwise responsible. Developer agrees that the provisions of this Section shall not be construed as limiting in any way Developer's indemnity obligations set forth in Section 3.9 or the extent to which Developer may be held responsible for the payment of damages to any persons or property 4� v 882/015610-0084 750537.08 a12/01/06 —14— resulting from the Developer's activities or the activities of any person or persons for which the Developer is otherwise responsible. 3.11 Transient Occupancv Tax Obligations. Developer acknowledges and agrees that all of the Units in the Project are Units in a "Group Hotel," as that term is defined in Section 3.24.020 of the La Quinta Municipal Code, for purposes of collecting and remitting to the City Transient Occupancy Tax. 4.0 CITY'S OBLIGATIONS 4.1 Scope of Subsequent Review/Confirmation of Compliance Process. Nothing set forth herein shall impair or interfere with the right of the City to require the processing of building permits as required by law pursuant to the applicable provisions of the La Quinta Municipal Code and the provisions of City's Fire Codes and ordinances, Health and Safety Codes and ordinances, and Building, Electrical, Mechanical, and similar building codes. Prior to each request for a building permit, Developer shall provide City with a Compliance Certificate ("Certificate") in a form created by Developer and approved by the City, which shall describe how all applicable Conditions of Approval have been fully complied with. The Certificate shall be distributed to relevant City departments for checking the representations made by Developer on the Certificate. 4.2 Project Approvals Independent. All approvals required for the Project which may be or have been granted, and all land use entitlements or approvals generally which have been issued or will be issued by the City with respect to the Project, constitute independent actions and approvals by the City. If any provision of this Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid or unenforceable, or if this Agreement terminates for any reason, then such invalidity, unenforceability or termination of this Agreement or any part hereof shall not affect the validity or effectiveness of any such Project approvals or other land use approvals and entitlements. In such cases, such approvals and entitlements will remain in effect pursuant to their own terns, provisions, and the Conditions of Approval. It is understood by the parties to this Agreement that pursuant to existing law, if this Agreement terminates or is held invalid or unenforceable as described above, such approvals and entitlements shall not remain valid for the term of this Agreement, but shall remain valid for the term of such approvals and entitlements. 4.3 Review for Compliance. The City shall review this Agreement at least once during every twelve (12) month period following the Effective Date of this Agreement, in accordance with the City's procedures and standards for such review set forth in the City's Development Agreement Ordinance. During such periodic review by the City, the Developer, upon written request from City, shall be required to demonstrate, and hereby agrees to furnish, evidence of good faith compliance with the terms hereof. The failure of the City to conduct or complete the annual review as provided herein or in accordance with the Development Agreement Act shall not impact the validity of this Agreement. If, at the conclusion of the annual review provided for herein, Developer shall 41 882/015610-0084 750537.08 a12/01W6 -15- have been found in compliance with this Agreement, City, through the City's Community Development Director, shall, at Developer's written request, issue a Certificate of Compliance to Developer stating that (1) this Agreement remains in full force and effect and (2) Developer is in compliance with this Agreement. The Certificate of Compliance shall be in recordable form, and shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer, at its option and sole cost, may record the Certificate of Compliance. 5.0 DEFAULT; REMEDIES. 5.1 Notice of Default. In the event of failure by either party hereto substantially to perform any material term or provision of this Agreement, the non -defaulting party shall have those rights and remedies provided herein, provided that such non -defaulting party has first provided to the defaulting party a written notice of default in the manner required by Section 8.1 hereof identifying with specificity the nature of the alleged default and the manner in which said default may satisfactorily be cured. A default of Developer under the DDA shall be deemed to be a default hereunder and shall give rise to all of City's remedies for a default hereunder. 5.2 Cure of Default. Upon the receipt of the notice of default, the alleged defaulting party shall promptly commence to cure, correct, or remedy the identified default at the earliest reasonable time after receipt of the notice of default and shall complete the cure, correction or remedy of such default not later than five (5) days [or thirty (30) days for non -monetary defaults] after receipt of the notice of default, or, for such defaults that cannot reasonably be cured, corrected or remedied within five (5) days [or thirty (30) days for non -monetary defaults], such party shall commence to cure, correct, or remedy such default within such five (5) day period [or thirty (30) day period for non -monetary defaults], and shall continuously and diligently prosecute such cure, correction or remedy to completion. 5.3 City Remedies. In the event of a default by Developer or its successors in interest of the terms of this Agreement that has not been cured within the timeframe set forth in Section 5.2 above, or of the terms of the DDA that has not been cured within the timeframe set forth therein for curing defaults, the City, at its option, may institute legal action in law or in equity to cure, correct, or remedy such default, enjoin any threatened or attempted violation, or enforce the terms of this Agreement; provided, however, that in no event shall City be entitled to consequential damages for any Developer default. For purposes of this Agreement the term "consequential damages" shall include, but not be limited to, potential loss of anticipated tax revenues from the Project or any portion thereof. Furthermore, the City, in addition to or as an alternative to exercising the remedies set forth in this Section 5.3, in the event of a material default by Developer, may give notice of its intent to terminate, cancel, or modify this Agreement pursuant to the City's Development Agreement Ordinance and/or the Development Agreement Act, in which event the matter shall be scheduled for consideration and review by the City Council in the manner set forth in the City's Development Agreement Ordinance or the Development Agreement Act. 44 882/015610-0084 750537.08 a12/01/06 -16- 5.4 Developer's Exclusive Remedy. The parties acknowledge that the City would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or any of the matters referred to herein including but not limited to the Development Plan, Conditions of Approvals, the Existing Development Regulations or any future amendments or enactments thereto, or the Project, except as provided in this Section. Accordingly, Developer covenants on behalf of itself and its successors and assigns, including the owners of the Units, not to sue the City for damages or monetary relief for any breach of this Agreement by City or arising out of or connected with any dispute, controversy, or issue between Developer and City regarding this Agreement or any of the matters referred to herein including but not limited to the application, interpretation, or effect of this Agreement, the Development Plan, the Conditions of Approval, the Existing Development Regulations or any future amendment or enactments thereto, or any land use permit or approval sought in connection with the development of the Project or any component thereof, or use of a parcel or any portion thereof, the parties agreeing that declaratory and injunctive relief, mandate, and specific performance shall be Developer's sole and exclusive judicial remedies. 6.0 MORTGAGEE PROTECTION: CERTAIN RIGHTS OF CURE 6.1 Encumbrances on the Project Site. This Agreement shall not prevent or limit the Developer from encumbering the Site or any portion thereof or any improvements thereon with any mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Site, or a portion thereof or interest therein, is pledged as security, and contracted for in good faith and fair value (a "Mortgage") securing financing with respect to the construction, development, use or operation of the Project. 6.2 Mortgage Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a holder of a beneficial interest under a Mortgage, or any successor or assignee to said holder (a "Mortgagee") [whether pursuant to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination or otherwise] shall be subject to all of the terms and conditions of this Agreement. 6.3 Mortgagee Not Obligated. No Mortgagee will have any obligation or duty under this Agreement to perform the obligations of the Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that (i) the Mortgagee shall have no right to develop or operate the Site, and (ii) to the extent that any covenant to be performed by the Developer is a condition to the performance of a covenant by the City, the performance thereof shall continue to be a condition precedent to the City's performance hereunder. 862/015610-0084 44 4 2 750537.08 a12/01/06 "17" 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure. City shall, upon written request therefor to the City, deliver to each Mortgagee a copy of any notice of default given to Developer under the terms of this Agreement, at the same time of sending such notice of default to Developer. The Mortgagee shall have the right, but not the obligation, within five (5) days [or thirty (30) days for non -monetary defaults] after the receipt of such notice from City, to cure, correct, or remedy the default, or, for such defaults that cannot reasonably be cured, corrected, or remedied within five (5) days [thirty (30) days for non - monetary defaults], to commence to cure, correct, or remedy the default within such five (5) day period [or thirty (30) day period for non -monetary defaults], and to continuously and diligently prosecute such cure to completion. If the default is of a nature which can only be remedied or cured by such Mortgagee upon obtaining possession of the Site, such Mortgagee shall have the right to seek to obtain possession with diligence and continuity through foreclosure, a receiver or otherwise, and shall be permitted thereafter to remedy or cure the default within such time as is reasonably necessary to cure or remedy said default but in no event more than thirty (30) days after obtaining possession. If any such default cannot, with diligence, be remedied or cured within such thirty (30) day period, then such period shall be extended to permit the Mortgagee to effect a cure or remedy so long as Mortgagee commences said cure or remedy during such thirty (30) day period, and thereafter diligently pursues and completes such cure. 7.0 TRANSFERS OF INTEREST IN SITE AGREEMENT, OR MANAGEMENT 7.1 Transfers of Interest in Site, Agreement, or Management. The qualifications and identity of the Developer as the developer and DHR as the operator of high quality commercial resort developments are of particular concern to the City. Furthermore, the parties acknowledge that the City has negotiated the terms of this Agreement in contemplation of the development and operation of the Project on the Site and the property tax increment and Transient Occupancy Tax revenues to be generated by the operation of the Project on the Site. 7.1.1 Transfers of Interest in Site or Agreement Prior to Agency's Issuance of a Release of Construction Covenants. Except as provided in this Section 7.1, until the date the Agency issues a "Release of Construction Covenants" (as that term is defined in the DDA) for a particular Phase of Development (the "Fee Transfer Release Date"), (1) no voluntary successor in interest of the Developer shall acquire any rights or powers under this Agreement with respect to said Phase of Development; (2) the Developer shall not make any total or partial sale, transfer, conveyance, assignment, or lease of the whole or any part of the applicable Parcel or the Phase of Development thereon; and (3) no changes shall occur with respect to the ownership and/or control of Developer or of Lowe Enterprises, including, without limitation, stock transfers, sales of issuances, or transfers, sales or issuances of membership or ownership interests, or statutory conversions (any of the above, a "Transfer"). Prior to the Fee Transfer Release Date for a particular Phase of Development, the City may approve or disapprove a proposed Transfer in its sole and absolute discretion. Notwithstanding the foregoing, City approval of a Transfer prior to the Fee Transfer Release Date for a particular Phase of Development shall not be required in connection with any of the following: 882/015610-0084 -18- 4.113 750537.08 a12/01/06 a. The conveyance or dedication of any portion of the Site to an appropriate governmental agency, or the granting of easements or permits to facilitate construction of the Project. b. Any assignment for financing purposes (subject to such financing being permitted pursuant to Section 311 of the DDA), including the grant of a deed of trust to secure the funds necessary for land acquisition, construction and permanent financing of the Project or of a Phase of Development. C. The Transfer by Developer to an entity whose managing member, manager, or managing general partner is Developer or an entity in which Lowe Enterprises owns and controls at least fifty-one percent (51 %), and has day-to-day control of the development of the Phase of Development. d. The sale by Developer of Condominium Hotel Units to third party buyers. C. The sale, transfer or issuance of stock or membership interests of Lowe Enterprises so long as a minimum of fifty-one percent (51%) of the outstanding and voting stock, membership and/or ownership interests of Lowe Enterprises, and control of Lowe Enterprises, is held, directly or indirectly, by Robert J. Lowe or his estate or a member of his family. 7.1.2 Transfers of Operational Obligations. Notwithstanding anything in Section 7.1.1 to the contrary, until the tenth (10a) anniversary of the date the Agency issues a Release of Construction Covenants for each Phase of Development (the "Management Transfer Release Date"), (i) neither Developer nor DHR (or any permitted successor in interest) shall make any Transfer of the operational and/or managerial control, including, but not limited to, financial and managerial decisionmaking, of such Phase of Development; and (ii) no changes shall occur with respect to the ownership and/or control of DHR, or of Lowe Enterprises, including, without limitation, stock transfers, sales of issuances, or transfers, sales or issuances of membership or ownership interests, or statutory conversions (either of the above, a "Management Transfer") without the prior written approval of the City; provided, however, that transfers of the stock, ownership and/or membership interests of DHR or of Lowe Enterprises may be made so long as a minimum of fifty-one percent (51%) of the outstanding and voting stock, ownership, and/or membership interests of DHR and of Lowe Enterprises is held, directly or indirectly, by Robert J. Lowe or his estate or a member of his family. Notwithstanding the foregoing, City approval shall not be required for a Management Transfer to any of the entities listed on Exhibit "F," which is attached hereto and incorporated herein by this reference; provided, however, that if any of the entities on Exhibit "F" operate under a "flag" name, the flag shall be a flag that operates at a Four Star Quality. To the extent that the operating character or quality of any of the entities listed on Exhibit "F" substantially changes between the Effective Date and the date of the proposed Management Transfer, Developer or Developer's successor in interest shall demonstrate that the listed entity satisfies the requirements for transferee entities not listed on Exhibit "F", as outlined below in this Section 7.1.2. No Management Transfer or Transfers, individually or collectively, shall be made that results in different entities operating and managing the hotels and Units on the Resort Hotel Parcel, the Lakes 882/015610-0080 750537.08 a12/01/06 -19- 4,44 Casitas Parcel, and the Golf Casitas Parcel, and no Management Transfer or Transfers, individually or collectively, shall be made that results in different entities operating and managing the hotels and Units on the Boutique Hotel Parcel, regardless of whether the Boutique Hotel Parcel is subdivided into two or more legal parcels, and the Ranch Villas Parcel. City shall not unreasonably withhold, delay, or condition approval of a proposed Management Transfer to an entity that is not listed on Exhibit "F", provided that Developer or Developer's successor in interest demonstrates that the proposed operator has experience and reputation for operating luxury hotels at a Four Star Quality equivalent to the experience and reputation of DHR, Rosewood Hotels and Resorts, Vail Resorts, Inc., Loews Corporation, and Kimpton Hotel and Restaurant Group, LLC. Developer or Developer's successor in interest shall provide such information as may reasonably requested by the City to enable the City to review and approve (or disapprove) any proposed operator, and shall reimburse the City for the City's costs incurred in considering any such request. 7.1.3 Assignment and Assumption of Obligations. Except for the sale of individual Condominium Hotel Units, any Transfer by Developer of any interest in the Site or of any interest in this Agreement and all Management Transfers shall require the execution of an assignment and assumption of obligations in a form reasonably acceptable to the City Attorney. Transfers of Developer's rights and/or obligations under this Agreement made without an City -approved assignment and assumption agreement are null and void. This requirement shall apply regardless of whether City approval is required for the Transfer. Developer agrees that at least thirty (30) days prior to such Transfer it shall give written notice to City of such assignment and satisfactory evidence that the assignee has assumed in writing through an assignment and assumption agreement all applicable obligations under this Agreement. A party proposing to assign its obligations under this Agreement (i) shall remain liable for the obligations until and unless the City has received a fully executed assignment and assumption agreement in the form approved by the City Attorney, and (ii) shall remain liable for any default hereunder that occurred prior to the effective date of the assignment. Developer or Developer's successor in interest shall reimburse the City for any costs (other than staff time) the City incurs in reviewing any assignment and assumption agreement required hereunder. 7.2 Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon the Developer and its permitted successors and assigns. Whenever the term "Developer" is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided, and the term "Developer shall only mean the owner of a Phase of Development from time to time during the period of such entity's ownership, provided that the procedures set forth in this Agreement for that entity's acquisition and or disposition of the ownership have been followed, including, without limitation, the provisions of Section 7.1. 7.3 Assignment by City. City may assign or transfer any of its rights or obligations under this Agreement with the approval of the Developer, which approval shall not be unreasonably withheld. 4 15 882/015610-0084 750537 08 a12/01/06 -20- 8.0 MISCELLANEOUS 8.1 Notices. All notices permitted or required hereunder must be in writing and shall be effected by (i) personal delivery, (ii) first class mail, registered or certified, postage fully prepaid, or (iii) reputable same -day or overnight delivery service that provides a receipt showing date and time of delivery, addressed to the following parties, or to such other address as any party may from time to time designate in writing in the manner as provided herein: To City: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Attn: City Manager Telephone: (760) 777-7031 Facsimile: (760) 777-7101 With a copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92626 Attn: M. Katherine Jenson Telephone: (714) 641-5100 Facsimile: (714) 546-9035 To Developer: LDD SilverRock, LLC 74-001 Reserve Drive Indian Wells, California 92210 Attn: Theodore R. Lennon, Jr. Telephone: (760) 674-2200 Facsimile: (760) 779-1646 With a copy to: Manatt, Phelps & Phillips, LLP 11355 W. Olympic Boulevard Los Angeles, CA 90064 Attn: Timi Anyon Hallem Telephone: (310) 312-4217 Facsimile: (310) 312-4224 Any written notice, demand or communication shall be deemed received immediately if personally delivered or delivered by delivery service to the addresses above, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 8.2 Binding Effect. Except as otherwise provided in this Agreement, this Agreement, and all of the terms and conditions hereof, shall be binding upon and inure to the benefit of the parties, any subsequent owner of all or any portion of the Project or the Site, and their respective assigns, heirs or 862/015610-0084 -21- ,� 446 750537 08 a12/01/06 successors in interest, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Project or the Site. 8.3 Independent Entity. The parties acknowledge that, in entering into and peribrming this Agreement, each of the Developer and the City is acting as an independent entity and not as an agent of the other in any respect. No joint venture is formed by this Agreement. 8.4 Agreement Not to Benefit Third Parties. This Agreement is made for the sole benefit of the parties, and no other person shall be deemed to have any privity of contract under this Agreement nor any right to rely on this Agreement to any extent for any purpose whatsoever, nor have any right of action of any kind on this Agreement nor be deemed to be a third party beneficiary under this Agreement. Notwithstanding the immediately preceding sentence, the Agency shall be an intended third party beneficiary to this Agreement. 8.5 Covenants. The provisions of this Agreement shall constitute mutual covenants which shall run with the land comprising the Site for the benefit thereof, and for the benefit of the City's and the Agency's adjoining properties, and the burdens and benefits hereof shall bind and inure to the benefit of each of the parties hereto and all successors in interest to the parties hereto for the term of this Agreement. 8.6 Nonliability of City Officers and Employees. No official, officer, employee, agent or representative of City, acting in his/her official capacity, shall be personally liable to Developer, or any successor or assign, for any loss, costs, damage, claim, liability, or judgment, arising out of or in connection to this Agreement, or for any act or omission on the part of City. 8.7 Covenant Against Discrimination. Developer and City covenant and agree, for themselves and their respective successors and assigns, that there shall be no discrimination against, or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, or any other impermissible classification, in the performance of this Agreement. Developer shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, et seq.). 8.8 Amendment of Agreement. This Agreement may be amended from time to time by mutual consent of the original parties or such party to which the Developer assigns all or any portion of its interest in this Agreement, in accordance with the provisions of the City's Development Agreement Ordinance and Government Code Sections 65867 and 65868. Developer shall be required to reimburse City for all costs City incurs in negotiating, preparing, and processing any such alterations, changes, 882/015610-0084 -22- 750537 09 a12/01106 or modifications. In connection with any request for an alteration, change or modification, Developer shall deposit with the City the sum of Ten Thousand Dollars ($10,000). Notwithstanding the foregoing, the City Manager shall have the discretion to authorize a lesser deposit, in the event he or she determines the proposed alteration, change or modification is minor. In the event the funds on deposit are depleted, City shall, notify Developer of the same, and Developer shall deposit with the City an additional Five Thousand. Dollars ($5,000) to complete processing of the requested alteration, change or modification. Developer shall make additional deposits to City, as needed, pursuant to the foregoing process, until the requested alteration, change, or modification is finalized. Within sixty (60) days after such alteration, change or modification is finalized, City shall reimburse the Developer any unused sums. 8.9 No Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought and referring expressly to this Section. No delay or omission by either party in exercising any right or power accruing upon non-compliance or failure to perform by the other party under any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof, except as expressly provided herein. No waiver by either party of any of the covenants or conditions to be performed by the other party shall be construed or deemed a waiver of any succeeding breach or nonperformance of the same or other covenants and conditions hereof. 8.10 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, to the extent that the invalidity or unenforceability does not impair the application of this Agreement as intended by the parties. 8.11 Cooperation in Carrying Out Agreement. Each party shall take such actions and execute and deliver to the other all such further instruments and documents as may be reasonably necessary to carry out this Agreement in order to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. 8.12 Estoppel Certificate. Any party hereunder may, at any time, deliver written notice to any other party requesting such party to certify in writing that, to the best knowledge of the certifying party, (i) this Agreement is in full force and effect and a binding obligation of the parties, (ii) this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, (iii) the requesting party is not in default in the performance of its obligations under this Agreement, or if in default, describing the nature and amount of any such defaults, and (iv) any other reasonable information requested. A party receiving a request hereunder shall execute and return such certificate within ten (10) days following approval of the proposed estoppel certificate by the City Attorney, which approval shalt not be unreasonably withheld or delayed. The City Manager, Assistant City Manager, and Community Development Director are 882/015610-0064 750537.08 a12/O1/06 -23- 413 Q - } each authorized to sign and deliver an estoppel certificate on behalf of the City. City acknowledges that a certificate hereunder may be relied upon by transferees and Mortgagees. 8.13 Construction. This terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction that might otherwise apply. As used in this Agreement, and as the context may require, the singular includes the plural and vice versa, and the masculine gender includes the feminine and vice versa. 8.14 Recordation. This Agreement shall be recorded with the County Recorder of Riverside County at Developer's cost, if any, within the period required by Government Code Section 65868.5. Amendments approved by the parties, and any cancellation or termination of this Agreement, shall be similarly recorded. 8.15 Captions and References. The captions of the paragraphs and subparagraphs of this Agreement are solely for convenience of reference, and shall be disregarded in the construction and interpretation of this Agreement. Reference herein to a paragraph or exhibit are the paragraphs, subparagraphs and exhibits of this Agreement. 8.16 Time. Time is of the essence in the performance of this Agreement and of each and every term and condition hereof as to which time is an element. 8.17 Recitals & Exhibits Incorporated; Entire Agreement. The Recitals to this Agreement, all of the exhibits and attachments to this Agreement, and the DDA are, by this reference, incorporated into this Agreement and made a part hereof. This Agreement, including all Exhibits attached hereto, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement, and this Agreement supersedes all previous negotiations, discussions and agreements between the parties, and no parole evidence of any prior or other agreement, other than the DDA, shall be permitted to contradict or vary the terms hereof. 8.18 Exhibits. Exhibits "A" — "F" to which reference is made in this Agreement are deemed incorporated herein in their entirety. Said exhibits are identified as follows: 882/01561M084 -24- 750537.08 al2/01/06 A-1 Legal Description of Site A-2 Site Map B Depiction of Public Improvements C Four Star Quality Requirements D Mitigation Monitoring Program E Form of City Declaration of CC&Rs F List of Pre -Approved Operators 8.19 Counterpart Signature Pages. For convenience the parties may execute and acknowledge this agreement in counterparts and when the separate signature pages are attached hereto, shall constitute one and the same complete Agreement. 8.20 Authority to Execute• Representations and Warranties. Developer warrants and represents that (i) it is duly organized and existing, (ii) it is duly authorized to execute and deliver this Agreement, (iii) by so executing this Agreement, Developer is formally bound to the provisions of this Agreement, (iv) Developer's entering into and performance of its obligations set forth in this Agreement do not violate any provision of any other agreement to which Developer is bound, and (v) there is no existing or threatened litigation or legal proceeding of which Developer is aware which could prevent Developer from entering into or performing its obligations set forth in this Agreement. 8.21 City Approvals and Actions. Whenever a reference is made in this Agreement to an action or approval to be undertaken by the City Manager, his or her authorized designee is authorized to act on behalf of the City unless specifically provided otherwise or the law otherwise requires. 8.22 Governing Law; Litigation Matters. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement without regard to conflicts of law principles. Any action at law or in equity brought by any party hereto for the purpose of enforcing, construing, or interpreting the validity of this Agreement or any provision hereof shall be brought in the Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in said county, and the parties hereto waive all provisions of law providing for the filing, removal, or change of venue to any other court. Service of process on City shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside of California. In the event of any action between the parties hereto seeking enforcement of any of the terms of this Agreement or otherwise arising out of this Agreement, the prevailing party in such litigation shall be awarded, in addition to such relief to which such party is entitled, its reasonable attorney's fees, expert witness fees, and litigation costs and expenses. 450 '82/015610-0084 -25- 750537 08 a12/01106 8.23 No Brokers. Each of the City and the Developer represents to the other party that it has not engaged the services of any finder or broker and that it is not liable for any real estate commissions, broker's fees, or finder's fees which may accrue by means of this Agreement, and agrees to hold harmless the other party from such commissions or fees as are alleged to be due from the party making such representations. [end — signature page follows] '82/015610-0084 -26_ 750537 08 at 2/01/06 IN WITNESS WHEREOF, the Developer and the City have executed this Agreement as of the Reference Date. ATTEST: City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP City Attorney "CITY" CITY OF LA QUINTA, a California municipal corporation City Manager "DEVELOPER" LDD SILVERROCK, LLC, a Delaware limited liability company LIM Its: .—t 882/015610-0084 _Z7_ �4 a% 4 750537.08 a12/01/06 STATE OF CALIFORNIA ) ) ss COUNTY OF ) On , before me, a Notary Public, personally appeared personally known to me (or 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. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, a Notary Public, personally appeared personally known to me (or 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. Witness my hand and official seal. Notary Public [SEAL] 45: '82/015610-0084 -28- 750537.08 al2/01/06 EXHIBIT "A-1" LEGAL DESCRIPTION OF sin [To be inserted] 4 ,J 882/015610-0084 EXHIBIT A-1 750537.08 a12/01/06 EXHIBIT "A-2" SITE MAP [To be inserted] 882/015610-0084 EXHIBIT A-2 150537 08 al2/01/06 EXHIBIT `B" DEPICTION OF PUBLIC IMPROVEMENTS [To be inserted] �2 r /� `j u 882/01561M084 EXHIBIT B 750537 08 al2/O1106 n NE CM Of to WWtk O MW Or aMa= STAW Or '%Mo M REVISED TENTATIVE PARCEL MAP NO. 33367 The following areas depicted on Exhibit '13' shall be sut�ject to a Maintenance Agreement: 1. The north and south areas adjacent to Lot 'F' (main entry roadway) between Jefferson Street and the intersection of Lots 'G' and 'H'. 2. The west portion of Lot 'H', south of the main entry and adjacent to Lots 3, 4, and 6. 3 h side of Lot'G' adjacent to Lots 3, 11, and 23. 4. The entirety of Lot 'I' adjacent to Lot 11 b. All lake ff,Qyli,4,gg,adjacent to Lots 3, 5, 11, 19, and 23. EXHIBIT "C" FOUR STAR QUALITY REQUIREMENTS Four -Star Quality under this agreement indicates an outstanding hotel providing the guest with a luxury experience in a distinctive setting, including expanded amenities and exceptional service. Guests can expect an exceptional experience, where no less than ninety five (95) percent of the following detailed characteristics are consistently met or exceeded: Services Detail • Staff is well-groomed with professional, neat and well -maintained attire. • All staff encountered are pleasant and professional in their demeanor. • Front desk staff are articulate, smile and make eye contact. • The front desk is staffed twenty-four hours. • Restaurant on -site serving three meals daily. • Valet parking is available. • Baggage assistance is automatic. • Complimentary newspapers are delivered to room automatically. • Complete room service is available. • Workstation is available where guest can access Internet. • Basic fitness equipment is provided, including treadmills and cycles. • Written confirmation is automatic or offered, either by mail, fax or e-mail. • Guests name is used effectively, but discreetly, as a signal of recognition. • The time from arriving at the reception area until registration is complete does not exceed five minutes (includes queuing). • Bed is plush and inviting with oversized or numerous pillows. • Bedcovers are elegant and stylish and with linens of exceptional quality and comfort. • All written information is provided on good quality paper or pads, custom -printed or logoed. • Bathroom presentation and placement of amenities and linens is thoughtful, careful, and elegant. EXHIBIT C '82/015610-0084 Page 1 of 7 750537 08 al2/01/06 g • Fresh ice is provided during evening service or at another time during the day. • Turndown service is automatically provided. • During turndown service, guest clothing is neatly handled and guest toiletries are neatly arranged and displayed on a cloth or shelf. • Room service is delivered within 30 minutes. • Room service order is delivered within five minutes of quoted time. • Two hour pressing available • Same day laundry and dry cleaning is available seven days/week. • Wake-up call is personalized with guest's name and time of day. • Wake-up call is delivered within two minutes of requested time. • Special service desk identified as concierge/guest service is situated apart from reception/front desk. • If spa services are present, treatments are begun and ended on schedule, within five minutes of expected or booked time. • If spa services are present, during treatment, therapist appears to be genuinely expert, moving seamlessly through the treatment as described and expected. Facilities Details Self parking area is free of debris, good condition; surfaces, curbs, paths. All outdoor walkways and approaches are well -maintained and cleaned. • Outdoor awnings, signs, marquees, flags, and plantings are clean and in good condition. • Public spaces are free of obvious hazards. • Elevator landings, cars and doors/tracks are clean and in good condition. • Guest room corridor floors, walls and ceilings are free of debris, marks, and damage. • All furniture, fixtures and equipment are clean, neat and well -maintained. • Ashtrays throughout public areas are well -maintained and free of excessive debris. • Temperature in all interior public areas are maintained in general comfort range. Public washrooms very hygienic and neat, with well -stocked paper and soap. • Public washroom fixtures, walls and floors are in very good condition. EXHIBIT C 4 882/015610-0084 Page 2 Of 7 750537.08 al2/01/06 g • Meeting rooms are well -signed so that it is easy to find and arrive at a specific room. • Meeting room doors are in good condition, free of nicks and damage. • Meeting room interiors are in generally good condition, including walls, floors and ceiling. • Lobby provides a comfortable seating area. • Lobby floors, walls and ceiling are free of debris, marks and damage. • Lobby areas feature elegant live plants and/or fresh floral displays. • Notices are professional, matching decor, not "homemade". • Vending and/or ice machines are located on each guest floor. • Vending and/or ice areas and equipment are clean, well -lit, and well -maintained. • Service doors are clean, free of marks and damage, and closed. • A variety of different sized and appointed rooms available in hotel. • High quality, varied, and major brand sundry selections are available in an on -site store. • Suite (separate bedroom and living areas) accommodations are available. • A dedicated and secure luggage storage area is available. • Public phones are convenient, and equipped with seats, privacy panels and pad/pens. • Public washrooms are furnished with upgraded materials and appointments/luxurious design. • Televisions feature premium cable TV (two movie channels, two all -news, two financial). • Pay -Movie selections are available through television. • Guest room telephones have two lines. • Guest rooms equipped with data ports (guest can connect laptop to the Internet). • Direct dial phones with direct long distance dialing are available in each guest room. • If public phonebook present, it is displayed in attractive cover. Guest Room Detail Hardware and hangings (door locks, racks, artwork, etc.) are secure and in good condition. • Carpet/floor is free of debris, stains, wear, loose threads, open seams, etc. EXHIBIT C 882/015610-0084 Page 3 of 7 750537.08 al2/01/06 g • Walls and ceilings are free of marks, stains and damage. • Drapes are free of stains, damage; pull easily and hang properly. • Furniture is free of dust, marks and damage. • All printed material including collateral, phonebooks and stationery are neat, crisp and current. • Drawers and shelves arc clean, free of dust and debris. • All light bulbs operate; all light fixtures and lamps are in good condition, clean. • Mirrors and windows are free of smudges and damage throughout. • If safe is provided, it is clean, functional and convenient. • Room equipped with accurate, functional clock and radio/stereo. • Color television works and is equipped with remote control, and is minimum 19". • All bedding and linens are free of debris, hairs, damage and stains. • Room heating and air conditioning is easily controlled by guest and is quiet. • Air is fresh and clean, no stuffiness or odors. • Sink, tub, shower, toilet, bidet are very clean, free of hairs, stains and discoloration. • Bathroom tile and grouting is clean, not discolored, cracked or mildewed. • Faucets and drains operate smoothly and easily. • Minimum bath linen is present: one bathmat; two each of facecloth, hand towel and bath towel. • If robes are provided, they are free of spots, stains and loose threads. • Guest room door and frame free of marks, scratches and scuffs. • Comfortable seating for two people (other than bed). • Guest service directory, pad and pen/pencil present and conveniently placed. • Enclosed closets (means closets must have doors). • There are three spacious drawers or enclosed shelves (inside closet). • A Luggage rack or bench provided; and adequate space to leave suitcase. • Extra clean and hygienic blanket and pillow provided in room. • Lighting throughout the room is adequate. 4 EXHIBIT C 882/015610-0084 Page 4 of 7 750537.08 a12/01/06 g `t L • The room can be fully darkened. • Full-length mirror present in room. • A hairdryer present in room, clean and functional. • Each guest room has two phones (one could be in the bathroom). • Comfortable desk and chair are available for working, complete with telephone, data port, and light. • Insulated ice bucket, vinyl or better, as well as glass glassware; clean and hygienic are present in room. • Minibar is present (defined as selection of several beverages and snacks). It is non auto - charge, and premium products are attractively displayed. • Minibar is hygienic, free of spills and damage, all products are sealed, price list present. • If coffeemaker is present, it is hygienic, and ceramic mugs and napkins are available. • Pillows are plush and full, no foam. • Framed artwork or interesting architectural features exist. in room. • Excellent lighting is provided in bathroom for makeup and shaving. • Hygienic soap, shampoo and four other bath amenities are provided. Amenities are presented attractively, thoughtfully (not simply lined up on counter). • Towels are of absorbent quality, with soft nap and no discoloration. • Towels are free of spots, stains, tears and obvious frays. • Guest room is of generous size, and provides ample seating for more than two persons. • Selection of at least 10 hangers including a variety of bars, clips and padded. • In -room safe,is present. • Bed is triple sheeted or features washable duvets. • Live plants are present in guest rooms. • Shaving/makeup, lighted magnifying mirror is present. Specialized Facility Detail • Pool/beach furniture is clean, hygienic and well -maintained. • Pool deck or beach/sand is clean and free of excessive debris. ,e,1 EXHIBIT C J 882/015610-0084 Page 5 of 7 750537.08 al2/01/06 g • Pool deck and tiling are in good condition, free of excessive damage or wear. • Pool water is clean, free of debris and free of notable odors. • Pool fittings and equipment (ladders, dive boards) are secure and in good condition. • If tennis exists on site under same management, court surfaces are in good condition, free of damage and well -marked. • Tennis courts and surrounding areas are clean and free of debris. • Fixtures, nets, lights, fences are well -maintained and good condition. • If golf exists on site under same management, pro shop/clubhouse interior are clean and well -maintained; displays and counters neat and tidy. • Pro shop/clubhouse and surrounding areas are clean with well -maintained appearance. • Golf carts are clean, well -organized and maintained. • Rental equipment is clean and good condition, including bags. • Guest can pick up e-mail and access the Internet from a Business Center workstation. • Business Center working areas are clean, tidy and professional. • Comfortable office -style chairs at the Business Center guest workstations. • All fitness, treatment and relaxation areas are hygienic, neatly organized and maintained. • Spa reception area is well-defined, neat and professional. • Fitness equipment is clean, in very good condition, conveniently laid out. • Fitness/workout area is well -ventilated, with comfortable temperature. • Fitness equipment is available with personal headphones/televisions. • Sound system or television provided in fitness/workout areas. • Towels are provided in locker and fitness areas. • Grooming area equipped with hairdryers; soap and shampoo conveniently placed. • All amenities are neatly and professionally presented; very hygienic. • Locker room, showers, sauna and hot tub extremely clean, hygienic appearance. • If Business Center is present, a semi -private working area with workstation and telephone is available for guests. • If a spa exists on site, robes and slippers or spa sandals are available in variety of sizes, and they are clean and in good condition. EXHIBIT C a 882/01SMM084 Page 6 of 7 4 () 750537.08 a12/01/06 g • If spa or fitness center exists on site, complimentary amenities to include body lotion, shower caps, talc/deodorant and combs. • If spa exists on site, at least two types of massage and either body treatments or facials are also offered. • If tennis is available on site, water is available courtside. • If pool or beach service is present, ample towels are available poolside or at the beach. • Current newspapers and national -title magazines are provided in fitness and locker areas. • If spa, treatment rooms are equipped with individually controlled temperature and sound systems. ti v EXHIBIT C 882/015610-0084 Page 7 of 7 750537.08 a12/01/06 g EXHIBIT "D" MITIGATION MONITORING PROGRAM PROJECT MONITORING CHECKLIST (CEQA Mitigation Measures) [To be inserted] 882/01561M084 EXHIBIT D 750537.08 al2/01/06 •a° �aG kk 5 m 5 9610 E r. ya E �€ a�� E d �w O% a� a k G H m {i� 9 E d o 3 « g0�o Q C� •L• .O $ N ia O o L O E ((JC a > G 5 a N y y a a Q9k'b;O �E�. 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Tishman Hotel Corporation 2. Rosewood Hotels and Resorts, LLC 3. Gemstone Resorts International, LLC 4. Noble House Hotels and Resorts 5. Intercontinental Hotels Group 6. Marriott International, Inc. 7. Starwood Hotels and Resorts Worldwide, Inc. 8. Global Hyatt Corporation 9. Fairmont Raffles Holdings 10. Four Seasons Hotels, Inc. 11. Loews Corporation 12. West Paces Hotel Group 13. Mandarin Oriental Hotel Group 14. The Hong Kong and Shanghai Hotels 15. Vail Resorts, Inc. 16. Hilton Hotels Corporation 17. Ritz Carlton Hotel Company, LLC 18. Kimpton Hotel and Restaurant Group, LLC '82/015610-00a4 EXHIBIT F 750537 08 a12/01 /06 AGENCY CONSENT TO RECORDATION THE LA QUINTA REDEVELOPMENT AGENCY HEREBY CONSENTS TO THE RECORDATION OF THE FOREGOING DEVELOPMENT AGREEMENT AGAINST THE REAL PROPERTY DESCRIBED IN EXHIBIT "A" TO SAID DEVELOPMENT AGREEMENT. LA QUINTA REDEVELOPMENT AGENCY Its: STATE OF CALIFORNIA ) ) ss COUNTY OF ) On , before me, a Notary Public, personally appeared personally known to me (or 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. Witness my hand and official seal. Notary Public [SEAL] 882/015610-0084 750537 08 al2/01/06 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 1 of 5 REPORT/INFORMATIONAL ITEM: 66 COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Board of Trustees' Meeting May 9, 2006 all To Order: resident Perkins called the meeting to order at 6:00 p.m. ledge of Allegiance: rustee Laflin led the Pledge of Allegiance. oil Call: hose present at roll call: President Perkins, Vice President Fuschetti, Secretary/Treasurer uran, Trustees Godecke, Laflin, Lock, Marchand, McKay, and Nigosian. Also present were eneral Manager Donald Gomsi, Assistant to the General Manager David Munro, dministrative Services Manager Brian Passaro, finance consultant Susan Marie Weber, dministrative Assistant Anita Jones, Public Information Officer Robert Mann, Operations lanager James Saulnier, Field Supervisors Phil Boeing, Rodney Chamberlain and Victor Teran, id Legal Counsel Lisa Copeland. Trustee De Lara arrived at 6:05 p.m. Trustee Steier was )sent. Confirmation of Agenda: Trustee Marchand made the motion to confirm the Agenda. The motion was seconded by Trustee Laflin and carried unanimously. Approval of Minutes for April 11 2006 Board Meeting. Trustee Marchand made the motion to approve the Minutes for the April 11, 2006 Board Meeting. The motion was seconded by Trustee Godecke and carried unanimously. Public Comment: None Announcements: President Perkins presented a plaque to Vice President Fuschetti thanking him for his exemplary service during the President's absence. General Manager Gomsi announced the new Landscape and Janitorial companies have started. New employees Victor Teran, RIFA Field Supervisor, and David Munro, Assistant to the General Manager, were introduced. An inspection was held by the Riverside County Environmental Health, Hazardous Materials section with a very positive report provided on hazardous materials storage and record keeping procedures. Additionally, an audit was performed by the Department of Health Services for the $200,000 grant the District received for West Nile Virus work. Everything is in order and a full audit will be performed when the fiscal year is complete. Coachella Valley Association of Governments is having their General Assembly Dinner on June 26th at the Palm Springs Spa Hotel. Any Trustee interested in attending should notify the General Manager so that the item can be placed on the June agenda. General Manager Gomsi reported that he attended the Mosquito and Vector Control Association of California (MVCAC) Legislative Day and discussed vector issues 4{ ttp://www.cvmvcd.org/agenda/minutes/June%2006/May%209%202006%2OMinutes.htm 10/31/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 2 of 5 with Senators Jim Battin and Denise Ducheny, and Assemblymembers Bonnie Garcia, John Benoit, and Russ Bogh. He also attended the American Mosquito Control Association (AMCA) Legislative Meeting in Washington, D.C. and met with representatives from Senator Feinstein's office, Congressman Ken Calvert, Darrell Issa, Jerry Lewis, Bob Filner, and Congresswoman Mary Bono. Correspondence: As in Board Packet. Handouts included a letter from MVCAC and a letter from the Vector Control Joint Powers Authority. Trustee Marchand made the motion to approve the Expenditures for April 12-30, 2006 and May 1-9, 2006. The motion was seconded by Trustee De Lara and carried unanimously. Committee Reports A. Finance Committee: Trustee Duran reported that the Committee met and worked on the proposed 2006/2007 budget which will be discussed later in the Agenda. B. Rules, Regulations and Procedures Committee: Trustee Nigosian reported that in the absence of Christine Hammond, who started the committee a year ago, a revision of the Trustees Manual has been completed. He requested that the committee members be dismissed from the committee. Trustee Fuschetti complimented the committee on their hard work in revising the manual. President Perkins disagreed with disbanding the committee at this time. Trustee Marchand made a motion to direct staff to provide copies of the manual to the Board of Trustees and then take an up or down vote at the next meeting on adopting the manual. The motion was seconded by Trustee Nigosian and carried unanimously. C. Personnel Committee: Trustee Fuschetti reported that the committee met and discussed the Finance Administrator position and the draft Organization Chart. The Committee recommends retaining the original chart with the Finance Administrator reporting to the Administrative Services Manager. A discussion ensued. D. Nomination Committee: Trustee Laflin requested discussing their meeting under Item 12F. 9. Report of District Activities: Items are noted in the Manager's Report. Operations Manager Saulnier reported there were five positive mosquito pools for West Nile Virus at the Northshore marsh habitats. The week before, the District had started a preliminary precautionary control program of doing aerial adulticiding in that very area, and applying an aerial larvicide using a long- term control product. When the report came in, they responded by intensifying the ground surveillance in the entire marsh habitat, they expanded the aerial adulticiding program to encompass the six mile linear area which the five traps encompassed, barrier spraying was done at the Salton Sea Park, and they also treated Adohrs Duck Club. In http://www.cvmvcd.org/agenda/minutes/June%2006/May%209%202006%2OMinutes.htm 10/31/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 3 of 5 addition, ground fogging was started. The District hit it with everything they had to control the possible expansion and magnification of the disease and try to contain it in that location. A discussion ensued. Informational Items: A. Copepods B. Information on the new Malaria Research and Control Group Included in Board Packet. 0. Consent Calendar: A. Approval for the General Manager and Trustees desiring so to attend the Special District and Local Government Institute Administration Seminar, June 1-2, 2006 in San Diego. Funds to come from Fund 6110.1.200, Conference Expense, and Fund 6120.1.250, Trustee Support. Trustee Marchand requested that in the future a "not to exceed" amount be attached to Consent items. Trustee Marchand made the motion to approve at an amount not to exceed $7,200. The motion was seconded by Trustee De Lara and carried unanimously. I. Old Business: A. Discussion and/or approval to provide $5,000, as the District's portion, to the Riverside Local Agency Formation Commission (LAFCO) to prepare a study of Vector Control Sphere of Influence issues within Riverside County from Fund #2965.1.000, Reserves. General Manager Gomsi reported that the Sphere of Influence has been discussed with LAFCO and a study would cost $12,000. They are asking that each of the two districts pay $5,000 and the County pay $2,000 towards the study. Trustee Laflin made the motion to approve. The motion was seconded by Trustee Fuschetti and carried unanimously. B. Presentation on FY 2004/2005 audit and continuation of discussion on audit. A presentation was given by Administrative Services Manager Passaro on the 2004/2005 audit. A discussion ensued. 12. New Business: A. Discussion and approval to incorporate into the FY 2006/2007 Budget the Research proposals from UC Riverside and UC Davis for an amount not to exceed $198,864.00 from Fund #8510.1.600, Research Contracts. Trustee Laflin made the motion to approve. The motion was seconded by Trustee Marchand and carried with nine (9) approved and one (1) opposed (Marchand). Trustee Marchand requested that the record reflect he is voting no because he is not satisfied with the manner in which the information was presented in the report. `_ 47. http://www.cvmvcd.org/agenda/minutes/June%2006/May%209%202006%2OMinutes.htm 10/31/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 4 of 5 B. Approval of Resolution No. 2006-02 clarifying per diem payment and expense reimbursement to Trustees and adoption of ethics training requirements. Legal Counsel Copeland reported that AB1234 was adopted to require mandatory ethics training. Two things required by the law are (1) a Resolution that establishes a reimbursement policy and (2) the Ethics and Reimbursement Policy itself. New in the law are two hours of ethics training, advance approval of trips by the Board to be eligible for reimbursement, use of District forms required in order to request reimbursement, expenses be in line with the Internal Revenue Service requirements, and a report to the Board be made on any trainings attended. Trustee Laflin made the motion to approve. The motion was seconded by Trustee McKay and carried unanimously. C. Approval of Resolution No. 2006-03 revising "Line Item" expenditures for the annual budget for fiscal year 2005/2006. Trustee De Lara made the motion to approve. The motion was seconded by Trustee Marchand and carried unanimously. D. Presentation and discussion of draft budget for Fiscal Year 2006/2007. Administrative Services Manager Passaro reported that the draft has been recommended for approval by the Finance Committee. Trustee Lock asked about putting actuals in the budget that were not used in the previous year. A discussion ensued. Trustee Marchand requested more updated figures be provided at the next Board meeting. He also stated that it would be helpful if the Finance Committee prepared a formal budget presentation for the next Board meeting before calling for a vote. E. Discussion and approval of organizational changes of District staff. Trustee Fuschetti reported the Personnel Committee thinks that one additional person reporting directly to the General Manager is too many. They believe there should not be more than five. The Committee recommends keeping the current Organizational Chart in tact. A discussion ensued. Trustee Marchand made a motion to commit and to give the Personnel Committee direction to return to the next meeting with a written report and recommendations. The motion was seconded by Trustee Lock and failed with three (3) approved (Marchand, Lock, Perkins) and seven (7) opposed. Trustee De Lara made the motion to approve the recommendation by the Personnel Committee to keep the current Organizational Chart with the Finance Administrator reporting to the Administrative Services Manager. The motion was seconded by Trustee Duran and carried with eight (8) approved, one (1) opposed (Marchand), and one (1) abstained (Lock). F. Nomination of officers. Trustee Laflin reported that the Nomination Committee recommends the following slate of officers: http://www.cvmvcd.org/agenda/minutes/June%2006/May%209"/0202006%20Minutes.htm 10/31/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 5 of 5 President: John Fuschetti Vice President: Juan De Lara Secretary/Treasurer: Mike Duran Trustee Marchand asked when was the formation of the Nominating Committee brought to the Board for a vote on its creation and why there are no minutes reflecting the creation of the committee. Legal Counsel Copeland responded that the President established the Nominating Committee after the last Board meeting, which is his prerogative. Trustee Marchand objected to the process of the formation of the Nominating Committee. A discussion ensued. President Perkins called for additional nominations. Trustee Lock nominated Trustee Marchand. Trustee Marchand declined. 3. Closed Session: A. None 4. Trustee Comments: Trustee Duran thanked the General Manager and staff. They are given a lot of responsibility and are constantly having more added. They are doing a fantastic job. President Perkins agreed. .5. A_diournmeM: The meeting adjourned at 8:15 p.m. 4 http://www.cvmvcd.org/agenda/minutes/June%2006/May%209%202006%20Minutes.htm 10/31/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 1 of 5 COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Board of Trustees' Meeting June 13, 2006 'all To Order: resident Perkins called the meeting to order at 6:00 p.m. 'ledge of Allegiance: Irustee Fuschetti led the Pledge of Allegiance. toll Call: 'hose present at roll call: President Perkins, Vice President Fuschetti, Secretary/Treasurer )uran, Trustees Godecke, Laflin, Lock, Marchand, McKay, Nigosian, and Steier. Also present were General Manager Donald Gomsi, Administrative Services Manager Brian Passaro, finance onsultant Susan Marie Weber, Administrative Assistant Anita Jones, Public Information )fficer Robert Mann, Operations Manager James Saulnier, Field Supervisors Rodney ,hamberlain and Peter Bonkrude, Vector Control Technician Michael Martinez, and Legal ;ounsel Lisa Copeland. Trustee De Lara arrived at 6:07 p.m. 'rustee Marchand announced that it would be necessary for him to leave the meeting after the ;onclusion of Item I IA. Confirmation of Agenda: Trustee Godecke made the motion to confirm the Agenda. The motion was seconded by Trustee Nigosian and carried unanimously. Approval of Minutes for May 9, 2006 Board Meeting Trustee Lock stated that the Minutes did not reflect discussions regarding the resignation of the Finance Administrator, exit interviews, or a request to discuss these items in Closed Session at this meeting. Trustee Lock made a motion to approve the Minutes for the May 9, 2006 Board Meeting with changes to reflect discussions. The motion was seconded by Trustee Marchand and carried unanimously. 3. Public Comment: None 3. Announcements: General Manager Gomsi presented Trustee Paul Steier and Trustee Dennis Godecke with a District plaque thanking them for their service on the Board. General Manager Gomsi displayed other insect repellants, aside from DEET, that have been found to be effective. Public Information Officer Mann will be distributing packets of insect repellant at the Palm Desert High School graduation ceremony which is in the vicinity where a mosquito pool was found positive for West Nile virus. More will be passed out at Fourth of July celebrations and other community events. Trustee Fuschetti and General Manager Gomsi attended a workshop by the Special District Institute and took the required AB 1234 training. Trustee Fuschetti reported that the training was very beneficial and shared the http://www.cvmvcd.org/agenda/minutes/July%2006/June%2013,%202006%2OMinutes.htm 11/9/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 2 of 5 topics covered. Correspondence: As in Board Packet. Handouts included a letter from the City of Indian Wells appointing Dr. Underwood as the new Trustee representing the city and an email from Susan Weisbert announcing the appointment. Approval of Expenditures for May 10-31, 2006 and June 1-13, 2006: Trustee Duran made the motion to approve the Expenditures for May 10-31, 2006 and June 1-13, 2006. The motion was seconded by Trustee De Lara and carried unanimously. Committee Reports A. Finance Committee: Trustee Duran reported that the Committee has submitted a budget for approval. He thanked Trustee Godecke for his service on the Finance Committee. B. Rules, Regulations and Procedures Committee: Trustee Laflin reported that the Committee was continuing to work on the Trustees Manual. Resort of District Activities: Items are noted in the Manager's Report. General Manager Gomsi reported that several television news interviews were given regarding the West Nile virus positive findings in Palm Desert. Scientific Operations Manager Lothrop reported that to date there are six positive mosquito pools, five from Northshore and one from Palm Desert. The District will begin in-house testing of mosquitoes which will shorten the time between collection and reporting. The first flooding of the tadpole shrimp pond took place and produced the first hatchings. Operations Manager Saulnier reported the aerial and ground foggings in the North Shore area have stopped because there have been no positive mosquito pools for five weeks. The Palm Desert area is now being fogged in response to the positive findings there. Informational Items: A. Bird Flu May Spread Along Migratory Routes Included in Board Packet. l0. Consent Calendar: A. Approval for the General Manager and Trustees desiring so to attend the Coachella Valley Association of Governments Annual General Assembly on June 26, 2006 in Palm Springs. Amount not to exceed $200.00 from Fund 6200.1.200, Meetings Expense, and Fund 6120.1.250, Trustee Support. B. Approval for the General Manager and Trustees desiring so to attend the California Special Districts Association 2006 Annual Conference in Lake Tahoe/Squaw Creek, September 25-28, 2006. Amount not to exceed $7,000.00 from Fund 6110.1.200, Conference Expense, and Fund 6120.1.250, Trustee Support. http://www.cvmvcd.orglagenda/minutes/July%2006/June%2013 %202006%2OMinutes.htm 11/9/2006 'OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 3 of 5 C. Approval to translate and print five District brochures into Spanish in an amount not to exceed $8,500.00 from Fund #6060.1.215, Public Education Materials. D. Reimbursement to Gudgel Aero-Ag Services for payment of airplane insurance for airplane that is located in Thermal and used by the District for aerial ULV applications in the amount of $6,563.00 from account # 6000. 1.225, Property and Liability Insurance. Trustee Marchand made the motion to approve the Consent Calendar. The motion was seconded by Trustee De Lara. Trustee Godecke asked if the term of the policy in Item D is for one year. General Manager Gomsi replied in the affirmative. The motion carried unanimously. 1. Old Business: A. Approval of Fiscal Year 2006-2007 Budget. Administrative Services Manager Passaro reported that the Budget being presented for approval was reviewed by the Finance Committee. Trustee Lock stated that the budget is significantly different from the Budget presented a month ago. It asks for two million dollars more in revenue than it asked for in the past. The District has used less than 50% of monies budgeted for this year and is now asking for over a million dollars more. A discussion ensued. Trustee Marchand stated that some of the questions might be answered by having a clear narrative and break down on what the monies are used for. A discussion ensued. Trustee Laflin stated that the problem is we have to be prepared for disease control and possible epidemics. Our role is to prevent these things. General Manager Gomsi stated that this document does not stand alone. Much of the detail is in the prior year's budget which had been distributed before. Trustee Godecke stated that it is important to understand that the current document is just the latest draft of the Finance Committee. Also, the Finance Committee meetings are open and anyone is welcome to attend. A discussion ensued. Trustee Steier: Made a motion to continue this item to the next Board of Trustees meeting. The motion was seconded by Trustee Marchand. By roll call vote, the Motion failed with seven (7) opposed and four (4) approved (De Lara, Fuschetti, Marchand, Steier). Trustee De Lara made a motion to accept the budget as presented. The motion was seconded by Trustee Godecke and passed with nine (9) approved and two (2) opposed (Lock and Marchand). Trustee Marchand was excused from the meeting. 12. New Business: A. Approval to purchase an Argo Conquest Tundra from Points West Argo in an amount not to exceed $18,000.00 from Fund #8415.1.500, Field Operations Capital Outlay. http://www.cvmvcd.orglagenda/minutes/July%2006/June%2013,%202006%2OMinutes.htm 11/9/2006 'OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 4 of 5 Trustee Fuschetti made the motion to approve. The motion was seconded by Trustee McKay and carried unanimously. B. Discussion and approval of Resolution #2006-04, intention to levy assessments for fiscal year 2006-07, preliminarily approving engineer's report, and providing for notice of hearing for the CVMVCD mosquito, fire ant and disease control assessment Trustee Steier made the motion to approve. The motion was seconded by Trustee De Lara and carried with nine (9) approved and one (1) opposed (Lock). C. Approval of Resolution #2006-05 authorizing Secretary/Treasurer Mike Duran to attend and vote at the Special District Association of Riverside County meeting to be held June 15, 2006 at PGA of Southern California in Beaumont. The General Manager will also attend but not vote. No cost to the District. Trustee Godecke made the motion to approve. The motion was seconded by Trustee Steier and carried unanimously. D. Discussion and/or approval for District to put in a bid to host the American Mosquito Control Association 2011 Annual Conference. Trustee Steier made the motion to approve. The motion was seconded by Trustee Nigosian and carried unanimously. E. Approval to purchase 100 gallons of Pyrenone 25-5 and 150 gallons of Aqua Resilin for adult mosquito control from the lowest bidder in an amount not to exceed $45,000.00 from Fund #7800.1.500, Control Products. Trustee Steier made the motion to approve. The motion was seconded by Trustee Lock and carried unanimously. F. Approval to conduct an aerial reconnaissance of the urban areas of Coachella Valley for backyard green pools. Not to exceed $30,000.00 from Fund #7850.1.500, Aerial Application. Trustee Duran made the motion to approve. The motion was seconded by Trustee Godecke and carried unanimously. G. Approval to purchase a Polaris Sportsman 500 EFI all terrain vehicle equipped with 14 gallon sprayer mounted tank and spray wand in an amount not to exceed $8,500.00. From Fund #8415.1.500. Capital Outlay — Field. Trustee Laflin made the motion to approve. The motion was seconded by Trustee McKay and carried unanimously. H. Approval of COLA for non -represented employees in the amount of the increase http://www.cvmved.orglagenda/minutes/July%2006/June%2013,'I0202006%2OMinutes.htm 11/9/2006 'OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 5 of 5 in the Consumer Price Index for All Urban Consumers in the Los Angeles -Riverside County -Orange County area as of May 2006 (figure not available until June 15) capped at 3.0% for fiscal year 2006-2007, effective July 1, 2006. This equals the amount that represented employees will receive. Trustee Fuschetti made the motion to approve. The motion was seconded by Trustee De Lara and carried unanimously. I. Election of officers. Trustee Laflin reported that the Nomination Committee had recommended the following slate of officers: President: John Fuschetti Vice President: Juan De Lara Secretary/Treasurer: Mike Duran Trustee Godecke made the motion to elect the slate of officers as recommended by the Nominating Committee. The motion was seconded by Trustee McKay and carried unanimously. .3. Closed Session: A. CLOSED SESSION — Public employment pursuant to Government Code Section 54957 — Finance Administrator and Assistant to the General Manager. B. CLOSED SESSION — Conference with Legal Counsel pursuant to Government Code section 54956.9 (a), Coachella Valley Mosquito and Vector Control District v. Highland Partnership et al. pending in Riverside County Superior Court as Case No. INC048734. No reportable action. 14. Trustee Comments: Trustee Nigosian commented that both President Perkins and Vice President Fuschetti did a great job during their term of office. Trustee Godecke thanked the Board members and commented that being a member of the Board was really enjoyable. He thinks Secretary/Treasurer Duran is doing a great job. Trustee Steier said goodbye and thanked the President and Board members for their patience and thanked the staff for being consummate professionals. It is important work that the District does and he enjoyed the opportunity. 15. Adjournment: The meeting adjourned at 7:55 p.m. http://www.cvmvcd.orglagenda/minutes/July%2006/June%2013%202006%2OMinutes.htm 11/9/2006 'OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 1 of 5 COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Board of Trustees' Meeting July 11, 2006 ;all To Order: 'resident Fuschetti called the meeting to order at 6:00 p.m. 'ledge of Allegiance: 'rustee Duran led the Pledge of Allegiance. toll Call: 'hose present at roll call: President Fuschetti, Secretary/Treasurer Duran, Trustees Baker, Lock, darchand, McKay, Perkins, and Underwood. Also present were General Manager Donald iomsi, Administrative Services Manager Brian Passaro, Scientific Operations Manager Branka ,othrop, PhD, Administrative Assistant Anita Jones, Public Information Officer Robert Mann, )perations Manager James Saulnier, Field Supervisors Rodney Chamberlain, Peter Bonkrude, 'hilippe Boeing and Victor Teran, Vector Control Technician Michael Martinez, and Legal :ounsel Lisa Copeland. Vice President De Lara arrived at 6:03 p.m. Trustee Laflin and Trustee Jigosian were absent. Confirmation of Agenda: Trustee Marchand made the motion to confirm the Agenda with the modification that Items 12D-F be moved to Consent. General Manager Gomsi stated Item 12E reflects Ben Laflin as a signer twice and the second listing should reflect adding Ron Perkins as a signer. Also, requested that Item 12A be moved up to Item 5A. Trustee Marchand amended his motion to reflect the changes. The motion was seconded by Trustee De Lara and carried unanimously. C. Amroval of Minutes for June 132006 Board Meehne: Trustee Duran made the motion to approve the Minutes for the June 13, 2006 Board Meeting. The motion was seconded by Trustee De Lara and carried with eight (8) approved and one (1) abstained (Baker). 3. Public Comment: None �. Announcements: President Fuschetti welcomed Trustee Karl Baker representing the City of Desert Hot Springs and Trustee Bruce Underwood representing the City of Indian Wells to the Board. President Fuschetti presented President Perkins a plaque recognizing him for his outstanding service during his tenure as President. General Manager Gomsi presented recognition certificates to Premises Inspectors Don Lomas and Robert Stoaks for their excellent work. The new accounting system has been installed. Also, in the Society for Vector Ecology newsletter, there is an article regarding the dedication of the Bio-Control Facility to Dr. Mulla. i http://www.cvmvcd.orglagendalminuteslAug%2006/July%2011%202006%2OMinutes.htm 10/31/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 2 of 5 Correspondence: As in Board Packet. A. Public hearing and approval of Resolution #2006-06 approving Engineer's Report, confirming diagram and assessment, and ordering the levy of assessments for fiscal year 2006-07 for the mosquito, fire ant and disease control assessment President Fuschetti announced the public hearing is to discuss the continuation of a benefit assessment in fiscal year 2006-2007 that funds the District's mosquito, fire ant, vector control, and disease prevention services and projects in the Coachella Valley. This hearing gives the residents and property owners another opportunity to obtain additional information about the assessment and services and provides an opportunity for property owners and residents to provide any additional inputs and comments to the District. General Manager Gomsi reported that it had been a monumental year for the District. The Bio-Control Facility was completed which grows various bio-control organisms to enhance disease control; West Nile virus was treated by land, sea and air, and there were no deaths or serious cases in the Coachella Valley; and the Red Imported Fire Ant program is up and running. The benefit assessment funds have helped the District enhance the goals of the District. President Fuschetti opened the Public Hearing. No public comments were made. President Fuschetti closed the Public Hearing. Trustee Marchand made the motion to approve the Engineer's Report. The motion was seconded by Trustee De Lara and passed by roll call vote seven (approved), one (1) opposed (Trustee Lock), and one (1) abstained (Baker). Approval of Expenditures for June 14-30, 2006 and July 1-11, 2006: Continued to later in the Agenda. Committee Reports A. Finance Committee: Trustee Duran reported that the Committee had met and thanked Trustee Lock for being in attendance. Trustee Baker asked if the fixed assets included the property across the street and when that property was last appraised. A discussion ensued. Trustee Baker requested that this discussion be put on a future Agenda. i. Report of District Activities: Items are noted in the Manager's Report. Operations Manager Saulnier reported that treatment for West Nile virus is still at a high surveillance and intensity to protect public health and will continue. The Red Imported Fire Ant (RIFA) program is very active. The heat is causing some problems for the staff during the peak of the day, but they continue to survey and treat. Trustee Baker asked if the golf courses are still exempt from treatment of the RIFA program. Operations Manager Saulnier responded that the golf courses were maintained by the California Department of Food and Agriculture but the District works closely with them to get compliance and support to coordinate their treatment with the District's. Trustee Lock commented that she has had nothing but good reports regarding the work that RIFA did in Cathedral Canyon. Scientific Operations Manager Lothrop reported there is not much change since the last Board meeting. President Fuschetti asked if the low detection is common in the State. Scientific ittp://www.cvmved.orglagendalminuteslAug%2006/July%2011%202006%2OMinutes.htm 10/31/2006 !OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 3 of 5 Operations Lothrop reported that things may be postponed because of the weather, but the season is not over. But it does look quieter than last year. Public Information Officer Mann reported that improvements had been implemented on the fogging page of the District's website. Also, the District provided insect repellant towelettes to the cities for distribution on the Fourth of July. Informational Items: A. Stormwater Vegetation Management B. Last Quarterly Reports for University of California Riverside and Davis for fiscal year 2005/2006. Included in Board Packet. 0. Consent Calendar: A. Approval for Finance Administrator and Trustees desiring so to attend the Special District and Local Government Institute seminar on Finance in Monterey, October 12-13, 2006. Amount not to exceed $4,000.00 from Fund 6110.1.200, Conference Expense, and Fund 6120.1.250, Trustee Support. B. Approval of a $2,000.00 contribution to help sponsor the cost to provide lunch for the Coachella Valley Fanners Educational Meetings from Fund #6210.1.215, Public Education. C. Approval of Associate of Arts degree program through tuition reimbursement for Administrative Clerk Crystal Garcia in an amount not to exceed $4,500.00. From Fund 5250.1.225, Tuition Reimbursement. D. Approval of Resolution #2006-07 establishing signature approval for checks written by the District. This resolution will supersede Resolution #2003-11. E. Approval of Resolution #2006-08 adopting budgets for FY 05/06 and FY 06/07. This resolution will supersede Resolution #2004-12. Trustee Marchand made the motion to approve the Consent Calendar. The motion was seconded by Trustee De Lara. Trustee Underwood asked what the standard was for tuition reimbursement. A discussion ensued. Trustee Baker requested putting a Tuition Reimbursement policy discussion on a future Agenda. The motion carried unanimously. 11. Old Business: A. Discussion of retreat for District Trustees. President Fuschetti reported that it would not be a problem to get a facility in which to hold a retreat. The real question is what type of facilitator to hire and how much the Board would like to spend. A discussion ensued. Trustee Perkins made a motion to continue this Item and bring it back in front of the Board in six months. The motion was seconded by Trustee Baker. Trustee Marchand commented that if it was to be continued, it should not be continued for more than one month. The motion failed with_one (l http://www.cvmvcd.org/agendalminutes/Aug%2006/July%2011,°/`202006%2OMinutes.htm 10/31/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 4 of 5 approved (Perkins) and eight (8) opposed. Trustee Marchand made a motion to continue this item to the next meeting and for staff to provide a list of facilitators and venues, along with budgetary issues and impacts. Trustee Baker recommended in an amount not to exceed $10,000. The motion was seconded by Trustee Baker and carried unanimously. resident Fuschetti announced a ten (10) minute break. Trustee Marchand and Trustee Perkins ;ft the meeting. 6. Approval of Expenditures for June 14-30, 2006 and July 1-11, 2006 (continued from earlier in the Agenda): Trustee De Lara made the motion to approve the Expenditures for June 14-30, 2006 and July 1-11, 2006. The motion was seconded by Trustee Lock and carried unanimously. 2. New Business: A. See Item 5A. B. Approval to purchase two (2) golf carts in an amount not to exceed $20,000 from Fund #8415.1.590, RIFA Capital Outlay. Trustee De Lara made the motion to approve. The motion was seconded by Trustee Duran and carried unanimously. C. Approval to renew Insurance Policy for non -owned commercial aircraft coverage with AvQuest in an amount not to exceed $10,125 from Fund #6000.1.225, Property and Liability Insurance. Scientific Operations Manager Lothrop reported that this is an annual renewal of insurance. Trustee Duran made the motion to approve. The motion was seconded by Trustee Baker and carried unanimously. D. See Item IOC. E. See Item IOD. F. See Item 10E. G. Approval to install and modify lights for aquaculture in the tank room. Award of contract will go to lowest responsible bidder. Funds not to exceed $25,000.00 from Fund #8484.1.700, Interior Equipment Bio-Control Facility. $65,000 is available in this fund. Scientific Operations Manager Lothrop reported that if there is not enough light, the mosquitofish will drop in production. Trustee Baker made the motion to approve. The motion was seconded by Trustee Lock and carried unanimously. http://www.cvmvcd.orglagendalminutes/Aug%2006/July%2011%202006%20Minutes.htm 10/31/2006 :OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 5 of 5 H. Approval to purchase six RIFA vehicles in an amount not to exceed $120,000.00 from lowest priced available dealer stock from Fund #8415.1.590. Trustee De Lara made the motion to approve. The motion was seconded by Trustee Duran. Trustee Baker asked if the vehicles from the state grant program were kept. Administrative Services Passaro responded that the District did still have those vehicles and were being used, but they are old and worn. A discussion ensued. The motion carried unanimously. I. Approval to renew Vector Control Joint Powers Agency (VCJPA) coverages in an amount not to exceed $106,030.00 from Fund 6000.1.225, Property and Liability Insurance and Fund #6001.1.225, Workers Compensation Insurance. Trustee De Lara made the motion to approve. The motion was seconded by Trustee Duran and carried unanimously. J. Discussion and/or approval of change to healthcare benefits. Administrative Services Manager Passaro gave a presentation on the proposed change to healthcare benefits. Legal Counsel Copeland reported that a key difference between CalPERS and the present plan is that Ca1PERS requires that a retiree health benefit program be offered. GASB 45 requires budgeting for retiree health care and that funds be encumbered to cover the expense for twenty years. A discussion ensued. Vector Control Operator Mike Martinez, representing union employees, stated that over the last few years, they have not only taken lower health care plans, but some have even taken family members off. Trustee Duran asked Mr. Martinez if the Ca1PERS plan is what the union employees want. Mr. Martinez responded that yes, the union employees feel that the Ca1PERS plan is a good plan. A discussion ensued. Trustee Duran made the motion to approve. The motion was seconded by Trustee De Lara and by roll call vote carried with four (4) approved and three (3) opposed (Lock, McKay, Underwood). 3. Closed Session: A. CLOSED SESSION — Pursuant to Government Code section 54957.6 — Conference with labor negotiators. Agency designated representatives: Lisa Copeland, Don Gomsi and Brian Passaro, and California School Employees Association Chapter 2001. There was no need to meet in closed session. l4. Trustee Comments: None l5. Adjournment: The meeting adjourned at 8:37 p.m. ittp://www.cvmvcd.org/agendalminutes/Aug%2006/July%2011,%202006%2OMinutes.htm 10/31/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 1 of 5 COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Board of Trustees' Meeting August 8, 2006 .all To Order: resident Fuschetti called the meeting to order at 6:00 p.m. 'ledge of Allegiance: rustee Marchand led the Pledge of Allegiance. 'oll Call: 'hose present at roll call: President Fuschetti, Vice President De Lara, Trustees Baker, Lock, larchand, Nigosian, Perkins, and Underwood. Also present were General Manager Donald iomsi, Administrative Services Manager Brian Passaro, Scientific Operations Manager Branka othrop, PhD, Public Information Officer Robert Mann, Operations Manager James Saulnier, ield Supervisors Rodney Chamberlain, Peter Bonkrude, and Philippe Boeing, Vector Control echnicians Rene Delgado and Michael Martinez, Premises Inspector Don Lomas, and Legal .ounsel Lisa Copeland. Secretary/Treasurer Duran and Trustees Laflin and McKay were bsent. Confirmation of Agenda: Trustee Baker requested moving Public Comment to Item IA. The motion was seconded by Trustee De Lara and failed with four (4) approved (De Lara, Lock, Marchand and Baker) and four (4) opposed (Nigosian, Perkins, Underwood and Fuschetti). Trustee De Lara made the motion to confirm the Agenda as is. The motion was seconded by Trustee Marchand and carried with seven (7) approved (De Lara, Baker, Marchand, Nigosian, Perkins, Underwood and Fuschetti) and one (1) opposed (Lock). Approval of Minutes for July 11, 2006 Board Meeting: Trustee De Lara made the motion to approve the Minutes for the July 11, 2006 Board Meeting. The motion was seconded by Trustee Fuschetti and carried with seven (7) approved (De Lara, Baker, Lock, Nigosian, Perkins, Underwood and Fuschetti) and one (1) opposed (Marchand). Public Comment: Karl Baker made comments on his appointment to the Coachella Valley Mosquito and Vector Control District Board representing the City of Desert Hot Springs. Trustee Baker made a request to place on the next Agenda, appropriateness of District staff and or counsel to recommend, advocate on behalf of, or disapprove or advocate against any candidate for Trustee of the District. 1. _Announcements: The Local Agency Formation Commission (LAFCO) has issued a Request for Proposals to hire a consultant for the sphere of influence study. The hearing on the matter has.beenn y, ittp://www.cvmvcd.org/agenda/minutes/Sept%2006/Aug%208_2006 Minutes.htm 10/27/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 2 of 5 delayed until at least October. The District has submitted two hotels, the Desert Springs Marriott and the La Quinta Resort, as possible venues for the AMCA Conference to be held in 2011. Quotes received were for certain weeks in January. Other cities are also submitting proposed venues. The General Manager will not be attending the California Special District Association (CSDA) conference in Squaw Creek as previously approved by the Board. The University of California, Riverside featured a picture of the Bio- Control Grand Opening in their newsletter. A Finance Administrator has been hired and has started working part-time. He will start working full-time in a few weeks. Correspondence: As in Board Packet. An additional handout was a letter from the University of California, Davis thanking the District for the grant monies. Approval of Expenditures for July 12-31, 2006 and August 1-8, 2006: Trustee Lock inquired about check number 26925 in the amount of $9,867.77 for an expenditure for U.S. Bank Visa. Administrative Services Manager Passaro explained that the cards are used by management staff for travel expenses and minor purchases. Trustee Lock stated that the cities actually attach those statements to the financial reports. Trustee Baker stated that all expenses should be broken out so that Trustees can see what the charges are for. A discussion ensued. General Manager Gomsi reported that prior Boards have authorized that all of the back-up for the credit cards be attached to the check and reviewed and authorized by the two trustees that sign the checks. No staff member signs any of the checks. Trustee Lock requested copies of the statements from the second quarter and July. A discussion ensued. Trustee Nigosian made the motion to approve the expenditures for July 12-31, 2006 and August 1-8, 2006. The motion was seconded by Trustee De Lara and carried by roll call vote of five (5) approved (De Lara, Nigosian, Perkins, Underwood and Fuschetti) and three (3) opposed (Lock, Marchand and Baker). �. Committee Reports A. Finance Committee: General Manager Gomsi reported that since the Secretary/Treasurer was the only Committee member in attendance, the meeting was an informational one only; the status of the finances were discussed. The next meeting is set for August 30, 2006 at 12:00 noon. L Report of District Activities: Items are noted in the Manager's Report. Scientific Operations Manager Lothrop reported that there have been no positive mosquito pools detected for over a month, one positive chicken detected in May and none since that time, no positive dead birds in this area, and no positive human cases detected. Next month, fly surveillance will be added to the reporting. Regarding biocontrol, mosquito fish production has increased. Operations Manager Saulnier reported that treatment for mosquito control is still very active. The results from the green pool surveillance project have been received and evaluated. Pools with potential for mosquito breeding are being actively pursued to effect correction. The Red Imported Fire Ant (RIFA) program is very active. Currently, two products are being used that reduce the use of Amdro. Two additional Premises http://www.cvmvcd.org/agenda/minutes/Sept%2006/Aug%2082006_Minutes.htm 10/27/2006 'OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 3 of 5 Inspectors have been hired. Trustee Baker asked if the District is included in the distribution of Environmental Assessment Reports (EAR) for communities that build storm water retention basins and similar basins which can result in drainage problems. Operations Manager Saulnier confirmed that they are working with the planners and code enforcement personnel of the cities to address this issue. Trustee Lock asked when reports will be generated by the new financial software. Administrative Services Manager Passaro responded that the reporting will be generated by the new software in the September Board packet. Informational Items: A. Vector of the Month — Garbage Flies B. Green Swimming Pool Mosquito Breeding Surveillance C. Tri-Agency Nuisance Water Abatement Program Included in Board Packet D. Presentation by Field Supervisor Peter Bonkrude on the District's operations in rural areas. Field Supervisor Peter Bonkrude gave a PowerPoint presentation on vector control operations in the rural areas of the Coachella Valley. 0. Consent Calendar: A. Approval for General Manager, Scientific Operations Manager, and Assistant Vector Ecologist to attend the Society of Vector Ecology Annual Meeting in Anchorage, AK, September 29 — October 3, 2006. Amount not to exceed $7,000.00 from Fund 6110.1.200, Conference Expense. B. Approval six (6) staff members to attend the Mosquito and Vector Control Association of California Quarterly Meeting in South Lake Tahoe, October 25-27, 2006. Amount not to exceed $4,000.00 from Fund 6110.1.200, Conference Expense. Trustee De Lara made the motion to approve the Consent Calendar. The motion was seconded by Trustee Nigosian. The motion carried by roll call vote of six (6) approved (De Lara, Lock, Nigosian, Perkins, Underwood and Fuschetti), one (1) opposed (Marchand) and one (1) abstained (Baker). 1. Old Business: A. Discussion of retreat for District Trustees. General Manager Gomsi reported that four (4) facilitators had been identified for the retreat. Information was presented to the Board of Trustees. Trustee Marchand commented that the advantage of having facilitators that are not specifically familiar with vector control is that they may challenge the participants to think outside the box and to think about the processes in ways that have not been thought of before. A discussion ensued. Trustee Baker made a motion to schedule the retreat for the second weekend in [ttp://www.cvmved.org/agenda/minutes/Sept%2006/Aug%208_2006_Minutes.htm 10/27/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 4 of 5 November. The motion was seconded by Trustee De Lara. A discussion ensued. Trustee De Lara suggested the 13th and 14th of October. Trustee Baker amended his motion to schedule the retreat for the 13th (half -day) and 14th (full day) of October with further details to be provided. The motion carried by roll call vote unanimously. Trustee Lock made a motion to hire Linda and Milan Hamilton as facilitators for the retreat and to hold it at the Courtyard by Marriott for under $700.00 for one day. The motion was seconded by Trustee Marchand. General Manager Gomsi requested including senior staff in the retreat and holding another session for all staff. 'Trustee Lock amended her motion to include senior staff and after evaluating the results of the retreat, deciding if an additional retreat should be held for all staff. Trustee Lock inquired if senior staff included any union represented employees. A discussion ensued. Trustee Lock amended her motion to also include a union representative. The motion was seconded by Trustee Marchand and carried by roll call vote unanimously. 2. New Business: A. Discussion of Grand Jury Report and authorization for General Manager to respond. General Manager Gomsi requested authorization from the Board to respond to the Grand Jury Report to correct some erroneous facts. A discussion ensued. Trustee Marchand made a motion to give the General Manager direction to prepare a draft response to the Grand Jury report to be presented to the Board for the Board's review and comment at the next Board meeting, to prepare a memorandum to the District addressing the issues that may be confronted if this District is to expand including, but not limited to, expansion of the District's Board to seat representatives from Blythe and/or mid -county cities that may be annexed to the District as well as possible tribal representation, and ascertaining if Supervisorial appointments are made by individual Supervisors or are in fact an appointment of the entire body. The motion was seconded by Trustee Baker and carried unanimously. B. Approval of benefit levels and resolutions as required by Ca1PERS to move to Ca1PERS health insurance. Administrative Services Manager Passaro stated that this item is necessary to follow through with the decision by the Board at the last meeting to change to Ca1PERS health insurance. Trustee Baker stated that in talking to representatives of his city, he was surprised that a public hearing was not held in approving the 1 million dollar expense that was included in the passing of the change to CalPERS. Legal Counsel Copeland stated that she was not aware of any requirement for a public hearing other than opportunity for public comment, which was provided. It is not technically an expenditure; it is a GASB requirement that the million dollars be set aside in reserve. A discussion ensued. Trustee Marchand made the motion to approve the resolutions. The motion was seconded by Trustee De Lara and carried by roll call vote of five (5) approved (De Lara, Marchand, Nigosian, Perkins and Fuschetti) and three (3) opposed (Lock, Underwood and Baker). 3. Closed Session: A. None 5 [ttp://www.cvmvcd.org/agenda/minutes/Sept%2006/Aug%208_2006_Minutes.htm 10/27/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 5 of 5 4. Trustee Comments: Trustee Perkins requested to have staff look into having monitors at the table to be shared by two trustees to facilitate viewing the presentations. Also, he is sensing an attempt to tear the Board apart, although in the past the Board operated on very friendly and warm terms. As a courtesy, if information is desired, a list should be presented to the staff before the meeting. The Board and the staff in the past years have done an excellent job. He is not sensing the spirit of cooperation that should be present. All Board members need to take a long hard look at how they treat the others on the Board and the staff. Trustee Fuschetti remarked operations have really improved for the District since the move to Indio. He concurs with Trustee Perkins. 5. Adjournment: Trustee Marchand requested standing for a moment of silence in memory of former Trustee Gary Bosworth. The meeting adjourned at 8:30 p.m. ttp://www.cvmvcd.org/agenda/minutes/Sept%2006/Aug%208_2006 Minutes.htm 10/27/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 1 of 5 COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Board of Trustees' Meeting September 12, 2006 'all To Order: resident Fuschetti called the meeting to order at 6:05 p.m. ledge of Allegiance: rustee Duran led the Pledge of Allegiance. MI Call: hose present at roll call: President Fuschetti, Secretary/Treasurer Duran, Trustees Baker, aflin, Marchand, McKay, Nigosian, Perkins, and Underwood. Also present were General tanager Donald Gomsi, Administrative Services Manager Brian Passaro, Scientific Operations tanager Branka Lothrop, PhD, Public Information Officer Robert Mann, Operations Manager umes Saulnier, Field Supervisors Rodney Chamberlain, and Victor Teran, Vector Control echnicians Rene Delgado, Michael Martinez and Mario Montez, Premises Inspector Don omas, and Legal Counsel Lisa Copeland. Excused absences for Vice President De Lara and rustee Lock. Confirmation of Agenda: Trustee Perkins made the motion to confirm the Agenda. The motion was seconded by Trustee McKay and carried unanimously. Approval of Minutes for August 8.2006 Board Meeting: Trustee Baker stated that during the confirmation of the Agenda, he made the motion and the vote was 4 to 4, but counsel ruled that his vote was out of order because in her opinion he was not a duly authorized Trustee. Therefore, she changed the vote to 4 to 3 and said the vote failed. Also, under Item #3, Ms. Lock questioned under what authority the counsel for the District had to speak on behalf or against a Trustee nomination from a city. The response from counsel was that once she is requested by the chair, then she has unlimited authority to do that. Trustee Baker would like these corrections to be reflected in the minutes. Trustee Marchand made a motion to continue approval of the minutes pending review of the tapes. The motion was seconded by Trustee Duran and carried unanimously. Public Comment: None Announcements: President Fuschetti announced that Trustee Lock would not be in attendance due to medical problems. The District wishes her a speedy recovery. President Fuschetti asked Trustee Marchand to say a few words regarding September 11, 2001. Trustee Marchand announced that September 11, 2001 was a regular Board meeting night and the Board of Trustees met to do the business of the Board, as announced that night, and did not allow themselves to be moved by fear or panic. In the five years since, much has changed,. but ,ttp://www.cvmvcd.org/agenda/minutes/oct%2006/October%202006%2OMinutes.htm 11/21/2006 'OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 2 of 5 this Board continues to do the people's business. He asked for a moment of silence to remember the thousands of Americans murdered on September 1 lth by the terrorists. A moment of silence was held. General Manager Gomsi announced new employees David I'Anson, Finance Administrator, Diane Glanz, Assistant to the General Manager, Maria Espinoza, Community Educator, Cortney Heilman, Administrative Clerk, and Jeff Boucher and Jose Arriaga, RIFA Premises Inspector Trainees. Legal Counsel Copeland will present a training for AB 1234 prior to the next Board meeting at 3:00 p.m. If any Trustee has received the training elsewhere, they were asked to provide the District with a letter of proof. President Fuschetti encouraged all Trustees who need the training to attend. Trustee Baker announced that the AB 1234 training will also be available at the Coachella Valley Association of Governments (CVAG) conference room on October 4th from 6:00 to 8:00 p.m. Trustee Baker announced that the presentation by Public Information Officer Mann and Community Educator Espinoza to the Desert Hot Springs Community Task Force was excellent and sparked a lot of interest. Correspondence: As in Board Packet. Trustee Marchand commented that the letter from the City of Cathedral City was a housekeeping issue only and will not have any affect on the District. Approval of Expenditures for August 9-31, 2006 and September 1-12, 2006: Trustee Duran made the motion to approve the expenditures for August 9-31, 2006 and September 1-12, 2006. The motion was seconded by Trustee Underwood and carried with seven (7) approved (Duran, Laflin, McKay, Nigosian, Perkins, Underwood and Fuschetti) and two (2) opposed (Marchand and Baker). Trustee Baker inquired if it was possible to receive the green sheet of expenditures sometime before the Board meeting. General Manager Gomsi responded that it is prepared an hour before the meeting and could not be given out any earlier. Committee Reports A. Finance Committee: Trustee Duran thanked Trustee Lock for her time and the General Manager and staff for providing all of the information needed to address the issues that she had. Trustee Baker commented that a few months ago the Board approved an expenditure for the purchase of some gasoline powered pick up trucks for the RIFA Program. There is a State law that requires all governmental agencies to purchase alternate fuel vehicles unless they have a waiver from Air Quality Management District (AQMD). His city could use some inexpensive vehicles for their Community on Patrol program and asked if there is any way that the City of Desert Hot Springs can acquire the used vehicles. General Manager Gomsi responded it is incorrect that the District was required to purchase alternate fuel vehicles for the RIFA Program. They purchased those vehicles for the State run program because it was good for the environment and good for the Coachella Valley. It turns out that those trucks were impractical for use by the District. The trucks will be going back to the California Department of Food and Agriculture shortly. Report of District Activities: Items are noted in the Manager's Report. Scientific Operations Manager Lothrop ttp://www.cvmvcd.org/agenda/minutes/oct%2006/October"/o2O2006"/o2OMinutes.htm 11/21/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 3 of 5 reported that there have been nine (9) positive mosquito pools with the latest being detected at the West Shore on August 29th. There are no positive dead birds, five (5) positive chickens for West Nile Virus and two (2) for Western Equine, and no positive Hantavirus rodents. In Bio-control, the number of laid eggs has increased since the first flooding. They are preparing this week to stock a pond at the Duck clubs. Researchers from U.C. Riverside will be visiting this week to help establish a colony of nematodes. Operations Manager Saulnier reported that aerial surveillance detected 265 pools, of which 189 were green pools wherein dozens were breeding. The District has obtained compliance from all, except for five (5) absentee owners. Operations is active in the duck club campaign and has increased surveillance adjacent to the Salton Sea. RIFA staff has treated 2,249 acres for the month and is continuing to evaluate Top Choice which is showing promise. President Fuschetti asked how the pesticide Top Choice is better than the other pesticides being used. Operations Manager Saulnier replied that top choice is enhanced by the use of water and lasts a full year. Public Information Officer Mann reported that the District will participate in a higher level of local sponsorships. Field Supervisor Rodney Chamberlain gave a PowerPoint presentation on vector control operations in the urban areas of the Coachella Valley. Informational Items: A. Lethocerus americanus (Giant Water Bug) — A Potential Biological Control Agent Against Mosquito Larvae Included in Board Packet 0. Consent Calendar: A. Approval of vacation for General Manager September 18-22, 2006. Assistant to the General Manager Glanz will be working to address any issues that may arise. Trustee Nigosian made the motion to approve Item 10A. The motion was seconded by Trustee Underwood and carried unanimously. B. Approval of subordination of Statutory Pass -through payments which the Redevelopment Agency for the County of Riverside ("Agency") is required to pay in connection with the Desert Communities Redevelopment Project Area. General Manager Gomsi stated that Item lOB is a formality and will delay receipt of a small amount of pass through money. Trustee Duran made the motion to approve Item IOB. The motion was seconded by Trustee Baker and carried with eight (8) approved (Baker, Duran, Laflin, McKay, Nigosian, Perkins, Underwood and Fuschetti) and one (1) opposed (Marchand). 1. Old Business: A. Approval of draft letter to Grand Jury correcting items contained in the 2005- 2006 report regarding the Riverside mosquito and vector control districts. Trustee Marchand made the motion to approve. The motion was seconded by Trustee', ttp://www.cvmvcd.org/agenda/minutes/oct%2006/October"/o2O2006%2OMinutes.htm 11/21/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 4 of 5 Nigosian. A discussion ensued. The motion carried unanimously. 2. New Business: A. Approval to purchase pesticides from lowest responsible bidder in an amount not to exceed $300,000.00. From Fund #7800.01.500, Control Products Field, and Fund #7800.01.590, Control Products RIFA. Trustee Marchand made the motion to approve, not to exceed $300,000. The motion was seconded by Trustee Duran. Trustee Baker inquired if this was an annual approval. General Manager Gomsi replied that it is not annual. It is purchased 2 or 3 times a year. Trustee Baker asked what percent of the budget that this purchase represents. Trustee Marchand requested a budget breakdown be provided in the future showing how much of the budget is left for this item so that it will not be over -allocated. The motion carried unanimously. B. Selection (if any) of nominee for Alternate Special District Member of the Local Agency Formation Commission. Trustee Marchand stated that elected members of the Board should not be considered for nomination because it might be a conflict of interest. Trustee Marchand nominated Trustee Baker. The motion was seconded by Trustee Duran and carried unanimously. C. Approval to go out to bid and purchase from lowest responsible bidder one (1) pick-up truck for Bio-Control for fish truck in an amount not to exceed $30,000 from Fund 8415.01.220, Bio-Control Capital Outlay. Trustee Marchand made the motion to approve not to exceed $30,000.00 with the request to look into hybrid vehicles as well. Trustee Baker commented that the bid needs to meet the AQMD requirements. The motion was seconded by Trustee Duran and carried unanimously. 3. Closed Session: A. None 4. Trustee Comments: Trustee Underwood commented that he would like to volunteer his assistance with the wellness health plan. Trustee Nigosian congratulated Administrative Assistant Anita Jones for taking advantage of the District's Tuition Reimbursement program. Trustee Perkins commented that it is extremely difficult for him to turn around and see what is happening on the screen. He suggested that a mirror be mounted on the opposite wall in order to be able to see the reflection of the screen. Trustee Nigosian offered to give up his seat for Trustee Perkins. Trustee Baker suggested having screens on both sides of the room. Trustee Marchand recommended using a dual projector that can deploy to both sides of the room. Public Information Officer Mann reported that staff is currently researching solutions to this problem. Trustee Baker commented regarding statements that appeared in an article in the August 30, 2006 issue of the Desert Sun. Two comments were attributed to residents of this District. Mr. Fuschetti was quoted as saying ittp://www.cvmvcd.org/agenda/minutes/oct%2006/October%202006%2OMinutes.htm 11/21/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 5 of 5 "the majority of the Board does not favor the appointment of Mr. Baker." Trustee Baker hopes this is not a correct statement as it would constitute a blatant violation of the Brown Act. PIO Mann was quoted as saying, and Trustee Baker paraphrased, "if the City of Desert Hot Springs City Counsel approves the appointment of Mr. Baker, the District should move forward and go about the primary purpose of the District, protecting the Coachella Valley against the health hazards of mosquitoes and other vectors." Trustee Baker wholeheartedly agrees with Mr. Mann and would welcome the opportunity to put behind this expensive challenge to his appointment. Trustee Duran commented that the Trustees serve the Board for one purpose only, to serve all the residents of their cities. The District has a very good General Manager and the staff, trucks, and operations are first class. Everywhere he goes he gets nothing but compliments. Personal feelings should not be involved and the Trustees thoughts should remain on serving the residents. President Fuschetti commented that the Board must work together. This District has done very well in the 18 years he has been on the Board and it has been very progressive. President Fuschetti stated that it has turned into a beautiful district and is top notch. 5. Adjournment: Trustee Marchand made the motion to adjourn. The motion was seconded by Trustee Duran and the meeting adjourned at 7:28 p.m. r .J 1tp://www.cvmvcd.org/agenda/minutes/oct%2006/October%202006%20Minutes.htm 11/21/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 1 of 4 COACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Board of Trustees' Meeting October 10, 2006 :all To Order: resident Fuschetti called the meeting to order at 6:00 p.m. ledge of Allegiance: rustee Underwood led the Pledge of Allegiance. Ml Call: hose present at roll call: President Fuschetti, Vice President De Lara, Secretary/Treasurer Duran, Trustees Baker, Laflin, Lock, Marchand, Nigosian, Perkins, and Underwood. Also resent were General Manager Donald Gomsi, Administrative Services Manager Brian Passaro, cientific Operations Manager Branka Lothrop, PhD, Administrative Assistant Anita Jones, inance Administrator David I'Anson, Public Information Officer Robert Mann, Operations tanager James Saulnier, Field Supervisors Rodney Chamberlain, and Philippe Boeing, Vector ontrol Technician Michael Martinez, Premises Inspector Don Lomas, and Legal Counsel Lisa opeland. Excused absence: Trustee McKay. Confirmation of Agenda: Trustee Duran made the motion to confirm the Agenda. The motion was seconded by Trustee Nigosian and carried unanimously. Minutes A. Approval of Minutes for August 8, 2006 Board Meeting Trustee Lock stated that when she was asking about the authority to instruct legal counsel to expend funds on an investigation, the question was regarding "unlimited" funds without a vote. That answer was yes, that the President and Legal Counsel had authority for unlimited funds. Trustee Baker concurred with Trustee Lock and that the President did not respond directly; that Legal Counsel responded to the question. Trustee Marchand made the motion to approve the Minutes for the August 8, 2006 Board Meeting as corrected. The motion was seconded by Trustee Lock and carried unanimously. B. Approval of Minutes for September 12, 2006 Board Meeting Trustee Perkins made the motion to approve the Minutes for the September 12, 2006 Board Meeting. The motion was seconded by Trustee Laflin and carried with nine (9) approved (Baker, De Lara, Duran, Fuschetti, Laflin, Marchand, Nigosian, Perkins, Underwood, and Fuschetti) and one (1) abstained (Lock). Public Comment: None ttp://www.cvmvcd.org/agenda/minutes/nov%2006/October%2O2006%2OMinutes.htm 11/21/2006 OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 2 of 4 Announcements: Scientific Operations Manager Lothrop, Assistant Vector Ecologist Snelling, and General Manager Gomsi attended the Society for Vector Ecology meeting in Alaska. It was very informative and a good part of the first day of the proceedings talked about biological control methods for mosquito control, corroborating the direction that the District is moving in. Additionally, there were three awards presented at the conference. Two of those awards were received by researchers for this District: Dr. William Reisen and Dr. Mir Mulla. The District had three visitors from Thailand and two visitors from Colorado tour the District's facilities and review its programs. Correspondence: As in Board Packet. Trustee Marchand asked if the District had responded to the letter from Keith Metheny of The Desert Sun. A discussion ensued. Trustee Marchand requested copies of all correspondence (not the production) between the District and the requesting parties. Additional correspondence included a clarification letter from the City of Desert Hot Springs regarding the appointment of Trustee Baker and a report on Eye Gnats and Tadpole Shrimp from Dr. Mir Mulla. Approval of Expenditures for September 13-30, 2006 and October 1-10, 2006: Trustee Duran made the motion to approve the expenditures for September 13-30, 2006 and October 1-10, 2006. The motion was seconded by Trustee Perkins. Trustee Baker stated that the Expenditures for September 30 — October 10, commonly referred to as the "green sheet", do not comply with the 72 hour agenda notification required by the Brown Act. Legal Counsel Copeland stated that the Brown Act requires the agenda to have all items on it. The green sheet is information provided to expand upon the item that is on the agenda. Receiving it at the Board meeting does not conflict with the Brown Act. It becomes a public record that is available to the public at the time it is generated. A discussion ensued. By roll call vote, the motion carried with seven (7) approved (De Lara, Duran, Laflin, Nigosian, Perkins, Underwood and Fuschetti) and three (3) opposed (Lock, Marchand, and Baker). Committee Reports A. Finance Committee: Trustee Duran reported that the reports are in the packet. Trustee Baker stated that he is currently not assigned to any committee positions and would be interested in serving on this committee. President Fuschetti stated that the Finance Committee has the right number of personnel on it and would like to hold off for now. Trustee Baker asked if that meant that he would not be serving on any committee. President Fuschetti clarified that he meant just this particular committee. B. Personnel Committee: No report. Report of District Activities: A. Update on District Programs Short program updates given by Operations Manager James Saulnier, Finance Administrator David I'Anson, and Public Information Officer Robert Mann. ttp://www.cvmvcd.org/agenda/minutes/nov%2006/0ctober%2O2006%2OMinutes.htm 11/21/2006 :OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 3 of 4 B. Presentation on disease Surveillance at CVMVCD. Scientific Operations Manager Lothrop gave a presentation on Disease Surveillance at the District. Informational Items: A. Vector of the Month — Flesh Flies B. Vehicles compliance with Air Quality Management District requirements. C. Reimbursement for State mandated programs (Brown Act meeting Requirements) D. University of California at Davis Research in the Coachella Valley Quarterly Report for July -September 2006 E. University of California at Riverside Quarterly Report on Red Imported Fire Ants and The Influence of Water Quality on Production of Mosquitoes from Constructed Treatment Wetlands Included in Board Packet. 0. Consent Calendar: A. Approval for Finance Administrator to attend the Local Agency Investment Fund Annual Conference in Sacramento, November 30 — December 1, 2006. Amount not to exceed $2,000.00 from Fund 6110.01.200, Conference Expense. B. Approval to purchase a Cisco Catalyst 3750 48 port SMI switch for the Operations Department in an amount not to exceed $6,500.00 from Fund #8415.01.210, IT Capital Outlay. Trustee Nigosian made a motion to approve the Consent Calendar. The motion was seconded by Trusted De Lara. Trustee Baker asked if the Cisco Catalyst purchase was due to increased employees. General Manager Gomsi responded it was to expand upon the District's network. A discussion ensued. Trustee Marchand stated that he did not see a staff report for the LAIF Annual Conference giving background recommendations and fiscal impact. A discussion ensued. Trustee Marchand stated that when the question is called, he would vote no on Item A and yes on Item B. The motion carried for Item l0A with eight (8) approved (De Lara, Duran, Laflin, Lock, Nigosian, Perkins, Underwood and Fuschetti) and two (2) opposed (Marchand, and Baker). The motion carried for Item 10B with nine (9) approved (Duran, Laflin, Lock, Marchand, McKay, Nigosian, Perkins, Underwood and Fuschetti) and one (1) opposed (Baker). 1. Old Business: A. Update on Local Agency Formation Commission (LAFCO) Study. General Manager Gomsi reported that at this time he does not know if LAFCO has hired a company to do the studies. The study will probably be conducted by mail. 2. New Business: A. Proposals for AN for Board room not to exceed $90,000.00 from Fund #8487.01.800. J ttp://www.cvmvcd.org/agenda/minutes/nov%2006/October%202006%2OMinutes.htm 11/21/2006 'OACHELLA VALLEY MOSQUITO AND VECTOR CONTROL DISTRICT Page 4 of 4 Administrative Services Manager Passaro stated that as a result of a request by several Trustees regarding the inability to see the screen when images are projected onto it, preliminary proposals were gathered to address the issue. Three options are: 1) to place monitors on the Board table, 2) to provide monitors and, in addition, mount a projector on the ceiling and motorize the current screen, and 3) eliminate putting monitors at the Board table and add a screen to the back of the room in addition to motorized screens and a new projector mounted on the ceiling. A discussion ensued. Trustee Marchand made a motion to give direction to staff to pursue option 3 and to put it out to bid at a cost of not to exceed $78,000. The motion was seconded by Trustee De Lara and carried with nine (9) approved (De Lara, Duran, Laflin, Lock, Marchand, Nigosian, Perkins, Underwood and Fuschetti) and one (1) opposed (Baker). (5 minute break) B. Approval of up to $6,000 for President's Luncheon to come from Fund #6120.01.250. Public Information Officer Mann reported that the President's Luncheon is an annual event hosted by the President of the Board. Three sites were investigated: 1) District premises, 2) The Living Desert in Palm Desert, and 3) The La Quinta Hotel. A discussion ensued. Trustee Duran made the motion to approve The La Quinta Hotel as the location for the President's Luncheon to be held on December 14, 2006. The motion was seconded by Trustee Baker and carried unanimously. 3. Closed Session: A. CLOSED SESSION — Potential Litigation — Conference with Legal Counsel pursuant to Government Code 54956.9 (b)(1) (one potential case). Returning from Closed Session, Legal Counsel Copeland announced there was no reportable action. 4. Trustee Comments: Trustee Baker requested a copy of the first half hour of the meeting tape for August 8, 2006. Trustee Nigosian announced that the Economic Development Agency was putting on an air show at the Jackie Cochran Airport on November 4th, free of charge. Trustee Duran acknowledged the staff and thanked them for their good work. 5. Adjournment: Trustee Baker made the motion to adjourn. The motion was seconded by Trustee Marchand and the meeting adjourned at 8:30 p.m. ittp://www.cvmvcd.org/agenda/minutes/nov%2006/October%202006%2OMinutes.htm 11/21/2006 DEPARTMENT REPORT: 3- � k" -t yy CITY 19 IY i { 4 ' COUNCIUS UPCOMING EVENTS k DECEMBER 7 DECEMBER 9 19 JANUARY 2 JANUARY 15-21 JANUARY 16 f���I��I�T.il•� FEBRUARY 20 CITY COUNCIL MEETING HOLIDAY OPEN HOUSE 11:30 TO 1:30 PM EMPLOYEE RECOGNITION BANQUET CITY COUNCIL MEETING CITY COUNCIL MEETING BOB HOPE CHRYSLER CLASSIC GOLF TOURNAMENT CITY COUNCIL MEETING CITY COUNCIL MEETING CITY COUNCIL MEETING " - J LA QUINTA CITY COUNCIL MONTHLY CALENDAR December 2006 Su'nday,i M ... Wednesday .. .... rtee< I:'d e'7d'§§$5". �F1:ie 2 et 'i .3N FM1nlpa: 5. 1$ YP rtil.e'E: 2` 3 4 5 6 7 8 9 6:00 PM Exec. Cmte: 2:00 PM Special RDA 10:00 AM ALRC 11:30 AM 1:30 PM 6:00 PM Employee Adolph Meeting 12:00 PM Human.IComn, Holiday Open House Recognition Banque 3:00 PM City Council Osborne Meeting 10 11 12 13 14 15 16 10:00 AM Pub. Sf1y-Kirk 7:00 PM Planning 9:00 AM RCTC- 9:30 AM Animal Campus- 9:00 AM CVA-Henderson 6:00 PM League- Commission Henderson Henderson Henderson 5:30 PM Investment 7:00 PM Community Advisory Board Services Commission 17 18 19 20 21 22 23 3:00 PM City Council 3:00 PM Historic Preser. Meeting vation Commmssion 24 25 26 27 28 29 30 7:00 PM Planning Commission 12:00 PM Sunline-Adolph 9:00 AM LAFCO- Henderson Christmas Eve Christmas Day - CITY HALL CLOSED <fi 31 November 06 'a's' January 07 ' .� S M T W T F S <','g'•�'' if' 1 2 3 4 S M T W T F S 1 2 3 4 5 6. 11 1 ' 6 7 8 9 0 11 12 13 14 15 16 17 18 °•xe '`, I 13 7 8 9 ID 11 2 14 15 16 17 18 19 20 New Years Eve '' s�;<t'^-':,'yj''+''+'�,', �'�)'hn; sF',,,,,;'� 19 20 21 22 23 24 25 ";[r•E; 3 ', "��J 21 22 23 24 25 26 27 ,'fi', Jp 26 27 28 29 30 rt'y fi,�'5',� 26 29 30 31 hY�'1 Printed 9 al - Calendar Creator '. •; s ° / 6 J b Calend r Plus on 12/1 200 LA QUINTA CITY COUNCIL MONTHLY CALENDAR January 2007 .. onday TuesdaiVi.. ..Friday.. 1 2 3 4 5 6 3:00 PM City Council 10:00 AM ALRC 12:00 PM Mayors Lunch 9:00 AM - 4:00 PM S NO. Mnmt-Hendersi Meeting New Years Day - CITY HALL CLOSED 7... • 8 9 10 11 12 13 10:00 AM Pub. Sfty-Kirk 7:00 PM Planning 9:00 AM RCTC- 9:30 AM Animal Campus- 12:00 PM Transp Kirk Commission Henderson Henderson 3:00 PM Mtns. Con -Sniff 5:30 PM Investment 11:00 AM CVCC-Sniff 6:00 PM League. Advisory Board 12:00 PM Energyl Henderson Environs Sniff 7:00 PM Community Services Commission 14 15 16 17 18 19 20 3:00 PM City Council 3:00 PM Historic Preser. 9:00 AM CVA-Hendersen Meeting vation Commission Martin Luther Kin9's Birthday ICITY HALL CLOSED) �— Bob Hoe Chr sler Classic 21 22 23 24 25 26 27 10:30 AM RCTC Budget - 7:00 PM Planning 12:00 PM HumanlComm 9:00 AM LAFCO Henderson Commission Osborne Henderson 12DO PM Sardine Adolph 4:00 PM J.Cochran Reg. Aup Osborne ab Hepe Chrysler CI. 28 29 30 31 :`' ,M 6:00 FM Exec Conte: Te� ,1 DecemberFebruary 07 e ber06 TF 5.: ;,:•''''S Adolph(;'''•...5•�::M IN S 1 2 1 2 3 3 4 5 6 7 8 9 4 5 6 7 8 9 10 10 11 12 13 14 15 16 11 12 13 14 15 16 17 17 18 19 20 21 22 23 18 19 20 21 22 23 24 24 25 25 27 28 29 30 31 25 26 27 26 q Printed by Calendar Creator Plus on 11/29/2006 7 LA QUINTA CITY COUNCIL MONTHLY CALENDAF February 2007 January5< e March S M T W T F S ;:', S M T W T F S 1 2 3 4 5 fi i 1 2 3 7 8 9 10 11 12 13 + 4 5 6 7 8 9 10 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 i, 18 19 20 21 22 23 24 28 29 30 31 ;'`s'•;� 25 26 27 28 29 30 31 •k a'�YI� 61,<S"r' %kc ':d tva �:k''•51'x Le'¢•5 sf3' F'Ss liz;'I;;ee.(Y'g'ilebY'<r;'?;P<F;.`w'i£=•1;3;7rk,"'.s:�<;:,;:4?ik,;' 4 5 6 7 3:00 PM City Council ZOO AM ALHC Meeting 11 12 13 10:00 AM Pub. Sfty-Kirk 7:00 PM Planning 12:00 PM Transp-Kirk Commission 6:00 PM League. Henderson 7:00 PM Community Services Commission 18 19 20 A 3:00 PM City Council AM Meeting 7!( President's Day (CITY HALL CLOSE0) 25 26 127 10:30 AM BCTC Budget 7:00 PM Planning Henderson Commission 6:00 PM Exec Crate: Adolph 14 00 AM HCTC- Hendersen 30 PM Investment Advisory Board A* Valentines Day 21 8 9 9:30 AM Animal Campus - Henderson 11:00 AM CVCC-Sniff 12:00 PM Energyl Environs Sniff 15 16 00 PM Historic Preser. 9:010AM CVA Henderson vation Commission 22 1:00 AM LAFCO Henderson 28 12:00 PM HumanlComm 2� Osborne 12:00 PM Sunline-Adolph'lli; Printed by Calendar Creator Plus on 11/29/2006 23 3 We] 17 24 s k` yr+s .1 Department Report: 3—B 1411 y OF tl TO: The Honorable Mayor and Members of the City Council FROM: Veronica J. Montecino, City Clerkj� DATE: December 5, 2006 SUBJECT: Department Report - Historic Preservation Commission Vacancy On November 1, 2006, the City Clerk received a letter (via email) from Leslie Mouriquand requesting acceptance of her resignation from the Historic Preservation Commission effective November 17, 2006. She indicated the resignation is due to her recent appointment as Riverside County Archaeologist. At the November 21, 2006 meeting, the City Council requested information on the residency requirement of City Commissions and the qualifications of applicants on file. On August 3, 2004, the City Council adopted Ordinance No. 407 which states all members of City Boards, Commissions and Committees appointed by the City Council shall be a resident and a registered voter of the City of La Quinta. The City Clerk Department currently has two unsuccessful applications on file from the recruitment held in June 2006. Both applicants are residents and registered voters. However, they had applied as lay members. Ms. Mouriquand was appointed as a professional member of the Historic Preservation Commission. The City Clerk's Office is seeking direction regarding advertisement for applications to fill the unexpired term ending June 30, 2007. i(n Q FM OF'LK4'O AGENDA CATEGORY: COUNCIL/RDA MEETING DATE: December 5, 2006 BUSINESS SESSION: ITEM TITLE: Public Hearing on the Adoption of a CONSENT CALENDAR: Resolution to Vacate a ± 3,117-Foot Length of Avenue 53 West of Monroe Street STUDY SESSION: _ PUBLIC HEARING: RECOMMENDATION: Conduct a public hearing and then adopt a Resolution of the City Council to vacate a ± 3,117-Foot length of Avenue 53 west of Monroe Street. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: The right-of-way for this portion of Avenue 53 west of Madison Street currently is a "paper street" within the Madison Club and Carmela development projects. Originally this section of road was granted to the Board of Supervisors of Riverside County for public highways in the 5`h Road District. However, no street improvements were constructed. This portion of right-of-way is 843 feet west of Monroe Street to 3,960 feet west of Monroe Street (Attachment 1); is specifically described in Attachment 2; and 3; and is not needed by other property owners for access, or improved accessibility. East of Madison, LLC., the developer of The Madison Club through which Avenue 53 traverses, requested vacation of the said portion of Avenue 53 pursuant to California Street and Highways Code Part 3 for Public Streets, Highways, and Service Easements Vacation Law, Section 8320-8325. The portion to be vacated will be incorporated in 511 the Madison Club Development and the Carmela Development, Tract Map No. 31784. No access to Avenue 53 is required by the Madison Club or Carmela Development along the north and south side of the street within the proposed street vacation area. The portion of Avenue 53 to be vacated terminates at the easterly extent of a previously vacated portion of Avenue 53 by City Council Resolution 2000-164 for The Hideaway, Tract Map No. 29894 and begins at the entrance to Tract No. 31874, the Carmela Development. Avenue 53 will remain a public street from the Carmela entrance on the north side of Avenue 53 to Monroe Street. The City mailed out first and second notification letters to all potentially effected public agencies or utilities, setting October 6, 2006 as the final deadline for comments. No public agency or utility has responded with negative comments. Coachella Valley Water District (CVWD) has requested that a Bureau of Reclamation Irrigation Lateral No. 119.65 be relocated and maintained (Attachment 4). A Relocation Agreement and Grant of Easement was executed on June 13, 2006 between the Bureau of Reclamation, CVWD and East of Madison, LLC. The application was considered by the Planning Commission on November 14, 2006. The Planning Commission found the proposed vacation to be consistent with the La Quinta General Plan. The Planning Commission iterated that the aforementioned easement on Avenue 53 be maintained. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Conduct a public hearing and then adopt a Resolution of the City Council to vacate a ± 3,1 17-foot length of Avenue 53 west of Monroe Street; or 2. Conduct a public hearing and do not adopt a Resolution of the City Council to vacate a ± 3,1 17-foot length of Avenue 53 west of Monroe Street; or 3. Provide staff with alternative direction. Respectfully submitted, 4 Timothy R na P.E. Public Wor it for/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Legal Description 3. Right -of -Way Vacation Plat 4. CVWD Letter :l� RESOLUTION NO. 2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, VACATING A ± 3,117-FOOT LENGTH OF AVENUE 53 WEST OF MONROE STREET CASE NO. RW-V 2005-014 SV 2006-042 WHEREAS, pursuant to Sections 8322 and 8323 of the Public Streets, Highways and Service Easement Vacation Law, due notice of the Public Hearing was given by public posting in the time and manner prescribed by law; and WHEREAS, following its discussion of the street vacation application on November 14, 2006, the Planning Commission of the City of La Quinta has determined that the vacation of said length of Avenue 53 west of Monroe Street, is not in conflict with the Circulation Element or other policies of the General Plan of the City of La Quinta; and WHEREAS, the City Council of the City of La Quinta has conducted the required public hearing upon due notice and, upon hearing and considering all testimony and arguments of all interested parties and persons desiring to be heard, did find the facts to exist justifying the approval and adoption of said length of Avenue 53 west of Monroe Street vacation, as follows: 1. Vacation of the subject length of Avenue 53 west of Monroe Street will not adversely affect the City of La Quinta or adversely impact the Circulation Element of the City of La Quinta General Plan. 2. The affected length of Avenue 53 west of Monroe Street is unnecessary for either present or prospective public use or purposes, including use as a non - motorized transportation facility. 3. No local public agency or utility has submitted an objection to the proposed vacation of the length of Avenue 53 west of Monroe Street. 4. Approval and adoption of the proposed vacation of a length of Avenue 53 west of Monroe Street will not cause a significant negative impact upon the environment, due, in part, to the fact that extinguishment of the right-of-way will restore possession of the vacated length of Avenue 53 west of Monroe Street to the vested owners of the abutting parcel of real property. Resolution No. 2006- Vacating Length of Avenue 53 Adopted: December 5, 2006 Page 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AS FOLLOWS: SECTION 1: The City Council, having elected to proceed under the provisions of Chapter 3 of the Public Streets, Highways and Service Easement Vacation Law of the State of California, and having held a public hearing upon due notice as provided therein, hereby finds from all evidence submitted that the length of Avenue 53 west of Monroe Street, specifically described in Attachments 1-2, attached hereto and incorporated herein, is unnecessary for either present or prospective public use or purposes, including use as non -motorized transportation facilities. SECTION 2: The City Council hereby orders the vacation of the length of Avenue 53 west of Monroe Street, as shown in Attachments 1-2 attached hereto and incorporated herein. SECTION 3: The City Council hereby determines that adoption of the vacation will cause no significant negative environmental impact. SECTION 4: The City Council hereby orders that the vacation shall not be effective until a certified copy of this Resolution has been recorded with the Riverside County Recorder. SECTION 5: The City Council hereby determines and orders that the City Clerk is hereby authorized and directed to record a certified copy of this Resolution in the Office of the County Recorder of Riverside County, California. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City Council held on this 5th day of December, 2006, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: - J. Resolution No. 2006- Vacating Length of Avenue 53 Adopted: December 5, 2006 Page 2 Don Adolph, Mayor City of La Quinta, California ATTEST: VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. Katherine Jenson, City Attorney City of La Quinta, California Y II ..wt AP all 1 1 I y 11 'vim- aY y\ y` �rt . '�d`,a ay • .>, '� �' �' } it n l r � I / b \ y v 7 / 1 r d I I' �p...� 4 D P 1i i• I [ ir'' _ rx 'It 1 �t,t3'�•�, 4 d A. 14 F MONROE STRET' �� . ✓ s kV I � ., I �� sw #s#s',a2+'i i. 4' pq �,y e• ATTACHMENT 2 EXHIBIT "A" PARCEL A (STREET VACATION) THOSE PORTIONS OF SECTION 10, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN ON TRACT MAP NO. 29894-1 FILED IN BOOK 305, PAGES 14 THROUGH 22, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: THE SOUTH 30.00 FEET OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 10, TOGETHER WITH THE NORTH 30.00 FEET OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 10, TOGETHER WITH THE SOUTH 30.00 FEET OF THE NORTHEAST QUARTER OF SAID SECTION 10, TOGETHER WITH THE NORTH 30.00 FEET OF THE SOUTHEAST QUARTER OF SAID SECTION 10, TOGETHER WITH LOT 'B' OF TRACT NO. 31874-1 AS SHOWN ON A MAP FILED IN BOOK 372, PAGES 34 THROUGH 37, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, EXCEPT THEREFROM THOSE PORTIONS LYING EASTERLY OF THE FOLLOWING DESCRIBED LINE: BEGINNING AT THE MOST WESTERLY CORNER OF LOT 'V' OF TRACT NO. 33076-1 AS SHOWN ON A MAP FILED IN BOOK 388, PAGES 57 THROUGH 79, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, SAID POINT BEING THE NORTHWESTERLY TERMINUS OF THAT CERTAIN CURVE IN THE GENERALLY SOUTHERLY LINE OF SAID PARCEL'V', CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 49.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 55001'01" EAST; THENCE NORTHWESTERLY, NORTHERLY, AND NORTHEASTERLY ALONG THE NORTHWESTERLY, NORTHERLY, AND NORTHEASTERLY PROLONGATION OF SAID CURVE THROUGH A CENTRAL ANGLE OF 75037'53" AN ARC LENGTH OF 64.68 FEET TO THE NORTH LINE OF SAID SOUTH 30.00 FEET OF THE NORTHEAST QUARTER OF SECTION 10; THENCE LEAVING SAID NORTH LINE NORTH 63051'33" WEST, 15.76 FEET TO THE MOST SOUTHWESTERLY CORNER OF LOT'C' OF SAID TRACT NO. 31874-1. THE ABOVE DESCRIBED PARCEL CONTAINS 4.379 ACRES, MORE OR LESS. ALL AS MORE PARTICULARLY SHOWN ON EXHIBIT "B', ATTACHED HERETO AND MADE A PART HEREOF. THE REAL PROPERTY DESCRIBED HEREIN HAS BEEN PREPARED BY ME, OR UNDER MY DIRECTION, IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYOR'S ACT. DEAN J. BOULDIN- P.L.S. 7842 REGISTRATION EXPIRES 12/31/0 \ PL LAND O 6 2 -�- a � No. 7842 * Exp. 12/31/06 �9Te OF CA4\FOQ 10�ii /O[a DATE ATTACHMENT 3 Ix 0 Z FQ- U a C 0 'S O PI V J mO V1 > o U y� w W W > N30 z 0 0 U 13381S 308NOW 3J � w — — ,ot I,oc I p �p II I aow W O N N u IN W N I� o I) ,or 00 00 N M io w I N z II°ICI r � I JZ z z Q II ,0, 101 V� 0 tT' 1 w 02tlltld I 1 1 a p zav�io V� warm ,-j Z\U WC=_7pM 14 = W cn W\ 000Z 1 F �ina VIA K woo OUWN L r�aw? l Or o fn 40 p w O z 0 Nsi N w N 0 \ Z Z 00 v VI U w r0 w N obm w 00 00 ?A) b N w — W j `p� U WQ OyWu 00 Q d Q J a z p u. wW a '�Dcq rN N w\ 03 w N '�r to `Y ap in � oo z a ('� � u �M ���11 3ZVs � N J ATTACHMENT 4 V4 AT E q ESTABLISHED IN 1918 AS A PUBLIC AGENCY COACHELLA VALLEY WATER DISTRICT POST OFFICE BOX 1058 • COACHELLA, CALIFORNIA 92236 • TELEPHONE (760) 398-2651 • FAX (760) 398-3711 DIRECTORS. OFFICERS: PETER NELSON, PRESIDSW: STEVEN 8, ROBBINS. PATRICIA A. LARSON. Y."..E PRESIDENT GENERAL MANAGER -CHIEF ENGINEER TELLIS CODEKAS MARX BEUHLER, JOHN W. MCFADDEN ASST. GENERAL MANAGER RUSSELL KITAHARA July 272006 JULIA FERNANDEZ, SECRETARY y, DAN PARKS, ASST. TO GENERAL MANAGER RHAYINE AND SHERRILL, ATTORNEYS File: 0652.41 Brian A. Ching, Associate Engineer City of La Quinta Public Works Department RE, CLI IVED Post Office Box 1504 0 > 2006 La Quinta, CA 92247-1504 AUG Dear Mr. Ching: PUBLIC WORKS Subject: Proposed Vacating of RW-V 2005-014 and SV 2006-042, Vacate a Portion of Avenue 53 The Coachella Valley Water District (District) has no objections to the vacating of that portion of Avenue 53 lying west of Monroe Street and east of Madison Street in the City of La Quinta, providing the abandonment resolution provide for easement reservation to the United States Department of the Interior Bureau of Reclamation and the District as provided in Section 8340(c) of the California Streets and Highways Code. The United States Department of the Interior Bureau of Reclamation owns Irrigation Lateral No. 119.65, located within easement recorded as Instrument No. 2006-0507001 on July 12, 2006 in Riverside County. The District operates and maintains this lateral. Access and all easement rights must be maintained. If you have any questions or need additional information, please contact Chris Morley, Right -of -Way Specialist, extension 2523. Yours very truly, t CfI � Mark L. Johnson Director of Engineering CM:IM\eng\m\06\JuW, hing 060710-1 TRUE CONSERVATION 060710-z o6o7w-a USE WATER WISELY - .1.. �. 060710-4 / Q 4 4 Qum& E`N OF COUNCIL/RDA MEETING DATE: November 7, 2006 ITEM TITLE: Public Hearing to Consider Adoption of a Resolution of the City Council Increasing the Fee for Coverage Under the Coachella Valley Fringe -Toed Lizard Habitat Conservation Plan to $2,371 Per Disturbed Acre RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the City Council approving the fee increase for coverage under the Coachella Valley Fringe -toed Lizard (CVFTL) Habitat Conservation Plan (HCP) to $2,371 per disturbed acre. FISCAL IMPLICATIONS: The current CVFTL HCP fee is $600 per disturbed acre. The revised fee determined by the Nexus Study (Attachment 1) is $2,371 per disturbed acre. It is estimated that 1,331 acres would develop and pay the fee each year within the Coachella Valley, making the Valley -wide annual revenue from the revised fee $3,155,801. The fees are paid by private developments. While the City incurs staff time in determining and collecting the CVFTL HCP fee, loss of the Consistency Determination would require a significant increase in staff time to review individual projects with regard to impacts to the CVFTL. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: In 1986, CVFTL HCP was approved and resulted in the issuance of an ESA Section 10(a) incidental take permit ("Permit") by the U.S. Fish and Wildlife Service (USFWS) to the Cities and County to authorize take of CVFTL resulting from land development and other activities covered by the HCP. The California Department of Fish and Game (CDFG) did not sign the HCP or authorize incidental take of CVFTL associated with the HCP because a permitting process had not been established under the California Endangered Species Act (CESA) at the time the HCP was .developed, but CDFG nonetheless participated in implementation of the HCP. The Cities and the County entered a Memorandum of Understanding with USFWS and CDFG on March 21, 2001 (2001 MOU) whereby CDFG made a Consistency Determination pursuant to Section 2080.1 of the Fish and Game Code finding that the FWS permit in combination with the mitigation provided in the Memorandum of Understanding is consistent with CESA. The Parties to the 2001 MOU agreed that the CVFTL can best be protected by inclusion of the species in the Multi -Species Habitat Conservation Plan (MSHCP), and included in the MOU certain measures to be implemented on an interim basis to protect the CVFTL until the MSHCP is in place. The 2001 MOU, as subsequently amended, expired June 30, 2006; however, the MSHCP has not been implemented because it was not approved by the City of Desert Hot Springs. The Cities and the County desire to maintain the Permit for the CVFTL in effect until the revised MSHCP and related documents can be prepared and incidental take permits issued by the FWS and CDFG. Loss of the Consistency Determination would have several ramifications: 1. CESA- Projects that may "take" the lizard will be required to obtain individual permits from DFG. 2. Litigation on the federal permit - The federal lizard permit is vulnerable to litigation as the federal permit only permits "take" that is "incidental to an otherwise lawful activity". The Center for Biological Diversity, in a letter to FWS dated May 30, 2006, threatened litigation on the CVFTL HCP. 3. California Environmental Quality Act (CEQA) - Projects in potential lizard habitat may now be required to do full environmental impact reports because of the CEQA "mandatory findings of significance" provision for endangered species. As the CVFTL HCP fee mitigation area is quite large, the CEQA ramifications are potentially significant. CDFG informed the Cities and the County through the Coachella Valley Association of Governments (CVAG) that it would extend the Consistency Determination for the CVFTL Permit under certain conditions, including that the Cities and the County consider a revised CVFTL mitigation fee based on a Nexus Study. A revised fee is appropriate because USFWS and CDFG have previously expressed concern relative to the adequacy of the original CVFTL HCP, and the existing fee has not been adjusted. The MSHCP is intended to address those concerns. To maintain the CVFTL Permit in effect until completion of the MSHCP, a new fee is needed to ensure acquisition of the lands needed to adequately conserve the CVFTL until the MSHCP can be completed and implemented. This report documents the legal and policy basis to support adoption of the revised CVFTL mitigation fee by the Cities and the County of Riverside. A Nexus Study intended to satisfy the requirements of California Government Code 66000 et seq. with respect to the establishment of a new fee or increase in the amount of an existing fee was performed by Muni -Financial under contract to CVAG. This Nexus Study determined the new fee to be $2,371 per disturbed acre. i Public Notice A notice regarding the proposed adoption of the Coachella Valley Fringe -Toed Lizard Habitat Mitigation Fee Nexus Study and fee increase was advertised in The Desert Sun newspaper on November 22, 2006. To date, no correspondence has been received. Any comments received will be handed out at the meeting. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Adopt a Resolution of the City Council approving the fee increase for coverage under the Coachella Valley Fringe -toed Lizard (CVFTL) Habitat Conservation Plan (HCP) to $2,371 per disturbed acre; or 2. Do not adopt a Resolution of the City Council approving the fee increase for coverage under the Coachella Valley Fringe -toed Lizard (CVFTL) Habitat Conservation Plan (HCP) to $2,371 per disturbed acre; or 6. Provide staff with alternative direction. Respectfully submitted, 4Douga4s.vans Community Development Director Approved for submission by: Thomas P. Genovese, City Manager Attachment: 1. CVAG Nexus Study RESOLUTION NO. 2006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA INCREASING THE FRINGE - TOED LIZARD MITIGATION FEE FOR DEVELOPMENT WITHIN HISTORICAL HABITAT AS IDENTIFIED IN THE COACHELLA VALLEY FRINGE -TOED LIZARD HABITAT CONSERVATION PLAN WHEREAS, the Cities of the Coachella Valley, County of Riverside, Coachella Valley Association of Governments, California Department of Fish and Game, U.S. Fish and Wildlife Service and The Nature Conservancy cooperated in the preparation of the Coachella Valley Fringe -Toed Lizard ("CVFTL") Habitat Conservation Plan ("HCP"), which was implemented through agreements and other documents signed by the parties (collectively the "HCP Agreement"); WHEREAS, all new development projects within certain designated historical habitat areas of the CVFTL as identified in the HCP Agreement ("designated mitigation fee area") will have direct and cumulative impacts on the CVFTL, its potential habitat or the ecological processes necessary to sustain that habitat such that mitigation is necessary in order to preserve the species; WHEREAS, all new development within the designated mitigation fee area will directly or indirectly benefit by funding a comprehensive approach to habitat mitigation; WHEREAS, the HCP Agreement has identified, as a priority, critical sand source area that must be purchased for conservation in order to adequately protect the CVFTL and its habitat; WHEREAS, each newly developed acre within the designated mitigation fee area has approximately the same proportionate impact on the loss of habitat so that each proposed acre to be disturbed is proportionate to the total cost of acquiring the priority sand source areas identified in the HCP Agreement; WHEREAS, the HCP Agreement provides for the acquisition and protection of designated priority sand source areas and provides that acquisition be funded primarily through a mitigation fee last established at $600 per disturbed acre, to be collected from land owners who obtain grading or building permits from the Cities or County for projects within the designated mitigation fee area; WHEREAS, substantial evidence exists that the current $600/acre fee is insufficient to acquire all priority sand source areas previously identified as necessary to insure viable preserves capable of perpetuating the species; r City Council Resolution 2006-_ Fringe -Toed Lizard Mitigation Fee Increase Adopted: December 5, 2006 WHEREAS, an increase in the fee is needed to insure acquisition of the priority sand source area needed to adequately conserve the CVFTL; WHEREAS, an updated Nexus Study has now been completed, a copy of which has been available for public review for more than ten (10) days, and the City published a public hearing notice on November 22, 2006; and WHEREAS, the Nexus Study has considered the remaining acreage of priority sand source areas to be purchased for conservation, the projected cost of acquisition, and the anticipated amount of acreage within the designated mitigation fee area to be developed, which data demonstrates that the mitigation fee must be increased to $2,371 per disturbed acre in order to meet the above -referenced goals of the HCP; WHEREAS, the formula for determining the increase in the mitigation fee is calculated on a per acre basis relative to each proposed project as its size is measured in acres such that there is a reasonable relationship between the increased fee to be charged for each proposed project and the corresponding impact of that project on the proportionate cost of conservation of priority sand source area necessary for habitat protection; WHEREAS, notice of the public hearing on the adoption of this Resolution has been given as required by law; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California that the Fringe -Toed Lizard mitigation fee imposed through the HCP Agreement shall be raised to $2,371/acre effective February 1, 2007. PASSED, APPROVED and ADOPTED at a regular meeting of the City Council, held this 5th day of December, 2006, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor r City of La Quinta, California ` City Council Resolution 2006-_ Fringe -Toed Lizard Mitigation Fee Increase Adopted: December 5, 2006 ATTEST: VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California FRINGE -TOED LIZARD HABITAT MITIGATION FEE FINAL AS APPROVED BY THE CVAG EXECUTIVE COMMITTEE SEPTEMBER 25, 2006 COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS Oakland Office 1700 Broadway 6" Floor Oakland, CA 94612 Tel: (510) 832-0899 Fax: (510) 832-0898 aMuniFinancial Corporate Office 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (800) 755-MUNI (6864) Fax: (909) 587-3510 www.muni.com Other Regional Offices Lancaster, CA Sacramento, CA San Diego, CA Phoenix, AZ Bellevue, WA Lake Alfred, FL TABLE OF CONTENTS INTRODUCTION...................................................................................... 1 COACHELLA VALLEY FRINGE -TOED LIZARD MITIGATION FEE AREA............ 3 NEED FOR HABITAT CONSERVATION....................................................... 6 COST OF HABITAT ACQUISITION............................................................. 8 COST ALLOCATION AND FEE SCHEDULE ................................................ 10 MITIGATION FEE ACT FINDINGS............................................................ 11 Purpose of Fee 11 Use of Fee Revenues 11 Benefit Relationship 12 Burden Relationship 12 Proportionality 13 INTRODUCTION This study develops a nexus between new development and the need for a fee to purchase undeveloped land in the Coachella Valley for the purposes of protecting the habitat of the Coachella Valley Fringe -toed Lizard (CVFTL). In 1986, a Coachella Valley Fringe -toed Lizard Habitat Conservation Plan (HCP) was approved and resulted in the issuance of a federal Endangered Species Act Section 10(a) incidental take permit C Permit') by the U.S. Fish and Wildlife Service (USFWS). The Permit enabled the participating cities and Riverside County to authorize take of CVFFL habitat resulting from land development and other activities covered by the HCP.1 The California Department of Fish and Game (CDFG) did not sign the HCP or authorize incidental take of CVFFL associated with the HCP because a permitting process had not been established under California Endangered Species Act (CESA) at the time the HCP was developed. Regardless, CDFG participated in implementation of the HCP. The cities and the County entered a Memorandum of Understanding with USFWS and CDFG on March 21, 2001 (2001 MOU) whereby CDFG made a determination finding that the FWS permit in combination with the mitigation provided in the Memorandum of Understanding is consistent with CFSA.2 The parties to the 2001 MOU agreed that the CVFTL can best be protected by inclusion of the species in a Multiple Species Habitat Conservation Plan (MSHCP). The MOU included certain measures to be implemented on an interim basis to protect the CVFTL until an MSHCP is in place. The MOU, as subsequently amended, expired June 30, 2006. The Coachella Valley Association of Governments (CVAG) prepared an MSHCP but it was not completed because the City of Desert Hot Springs did not approve it. The cities and the County desire to maintain the Permit for the CVFrL in effect until the revised MSHCP excluding Desert Hot Springs can be prepared and incidental take permits issued by the FWS and CDFG. CDFG informed the cities and the County through CVAG that it would extend its consistency funding for the CVFTL Permit under certain conditions. One such condition was that the cities and the County adopt a revised CVFM mitigation fee based on a nexus study. A revised fee is appropriate because USFWS and CDFG have previously expressed concern with the adequacy of funding for the original CVFTL HCP. The MSHCP is intended to address those concerns. To maintain the Permit in effect until completion of the MSHCP, a new fee is needed to ensure acquisition of the lands needed to adequately conserve CVFFL habitat This report documents the legal and policy basis to support adoption of the revised CVFTL habitat mitigation fee by the cities and the County of Riverside. The report is intended to satisfy the 1 Participating cities: Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, ladian Wells, La Quints, Indo and Coachella 2 Detennination pursuant to Section 2080.1 of the Fish and Game Code. EMtutiFmantd 1 Fringe -toed Ljw d Habitat Mikgation Fre Goaebetla YatlryAuoaation ajGovemmentr requirements of Mitigation Fee Act (California Government Code 66000 et seg.), the statutory authority that governs the development and implementation of impact fees in California. a COACHELLA VALLEY FRINGE -TOED LIZARD MITIGATION FEE AREA The CVFM mitigation fee area was delineated in the 1986 HCP as the blowsand ecosystem in the historic range of the CVFrL As stated in the HCP, `Because the CVFM depends on continuance of the natural blowsand process, conservation of the lizard requires that its blowsand habitat be conserved not only the sandy areas actually occupied by the lizard, but sand source areas as well" The HCP stated that as of 1986, "about 81,500 acres of the Valley are undisturbed occupiable habitat". Of this, "the fee assessment area will apply to about 70,000 acres of historic CVFTL habitat, of which 51,000 acres will be developable without any restriction." Since 1986, a significant portion of this area, approximately 39,260 acres, has developed and paid the fee established in conjunction with the HCP. The entire mitigation fee area is shown in Figure 1 The acreage to which the CVFM Mitigation Fee would be applied is 13,477 acres. This was calculated as follows: • CVAG identified all privately -owned vacant parcels in the CVFTL fee area outside the areas proposed for conservation under the MSHCP using aerial photo analysis. The date of the aerial photo is September 15, 2005. • Based on GIS analysis, CVAG staff estimates that ten percent of private vacant land within MSHCP Conservation Areas, net of acreage to be acquired for habitat (see next section), will be developed • Where general plan designations limit development to one unit per five acres or a lesser density, it was assumed based on historical development patterns that the fee paid would be based on 0.5 acres of a parcel actually being disturbed. This was factored into the calculation of the acres on which the fee would be collected. • The acreage was further adjusted to account for development/disturbance in the CVFFL fee area since the date of the aerial photo. This was derived from the fee payment records maintained by CNLM from the date of the aerial photo. Table 1 displays the calculation of the remaining acres to be developed within the mitigation fee area. Y d S } o � t 1 I I Sx i Fnego-toed ligwd Hab"M,gation Fee C�&& ValkyAnodatioa ofGwrenrmrtr Table 1: Vacant Land To Be Developed Outiside MSHCP Conservaation Areas Residential (> 1 unit per 5 acres) and all nonresidential 12,617 Residential (<=1 unit per 5 acres)' 1,012 Inside MSHCP Conservaation Areas 1,570 Subtotal - Projected Development 15,199 Acres developed September 2005 to September 2006 (1,7221 Remaining Acres To Be Developed 13,477 Note: Development potential on vancant land based on General Plan designations and aerial photograpiry as of September 15, 2005. ' Based on disturbance of 0.5 acres for each parcel. `Based on 10 percent of vacant private land designated for development. Sources: Coachella Valley Association of Governments; MuniRnancial. �fRf�'�Iriffi16101 S �� v NEED FOR HABITAT CONSERVATION The HCP noted that nearly half of the 81,500 acres of habitat that could be occupied by the CVFTL is already undergoing irreversible degradation due to man's interference with the wind blown sand transport system" In the late 1990s, USFWS and CDFG noted concerns regarding the adequacy of the HCP preserves for the preservation of the CVFTL. Certain sand source and sand transport areas had either not been adequately delineated in the 1986 HCP or were being threatened with more intense development than anticipated. As a result, the 2001 MOU identified additional sand source areas in the Willow Hole, and Thousand Palms areas to be conserved through an interim acquisition program and, in the long-term, through inclusion of the CVFTL in the MSHCP. At the same time, the CVFIL HCP was amended to remove these high priority acquisition areas from the area covered by the CVFTL Permit. Figure 2 shows these two high priority acquisition areas. The total of undeveloped private land in these areas is approximately 2,260 acres, comprised of 930 acres in the Thousand Palms area and 1,330 acres in the Willow Hole area (acres rounded to the nearest ten). j3MunFi wcW 6 =r . i^ ' < �! ': .- COST OF HA®ITAT ACQUISITION The cost to acquire the high priority acquisition areas in the Willow Hole and Thousand Palms areas is based on the following factors: • Land values (purchase price for these acres) are based on the 2005 Market Study prepared for the MSHCP (AMmketStudy ofi wd Vahw, Belated to SetxralAnar of Pmrpccare Acgaiaition, Arroaakd miib the Coatbella Valley Mtr/apk Speau Habitat Conn wtion Plan, Scarcella, July 2005). The 2005 values have been increased by a 3% inflation factor to provide 2006 values. The total land value is $31,170,100. • Implementation costs which include improvements, appraisals, site inspections, escrow fees, and other costs incurred in the acquisition of the land, maintenance of habitat, and implementation of the fee. The implementation costs are estimated to be 2.5 percent of the total land costs based on experience with the CVFIZ mitigation fee program to date. Should the actual costs differ from 2.5 percent the total land costs, the fee should be revised Table 2 on the following page shows land costs based on the 2005 Market Study. Total costs for land acquisition are based on low medium and high values estimated for each area and the percent of total acres likely to be acquired at each cost level. Total costs are inflated three percent to estimate in today's (2006) dollars. Table 3 shows the total costs to be funded by the mitigation fee including implementation costs.. n&H781 8 - r FdngedoedLJZ-dHab"MiBg mFee Cmdv&V4LLyAmodahemofGaveramentr Table 2: Market Value of Habitat Conservation Land Acquisition Low -Range Mid42ange HighAange Priority Area Per Acre Per Acre Per Acre Total Willow Hole Total Acres (A): 1.330 1.330 1,330 Percent of Total Aces (13): ,10% 70° , Aaes (C = A x El): 133 931 268 Average cost per acre (D): S 2,500 S If- ; 20,000 Cost (E = C x D): $ 332,500 $ 10,473.750 $ 5.320,000 $ 16,126,250 Vtal Total Acres (A): 930 930 930 Percent of Total Acres(8): 50% 45% a Acres (C = A x 8): 465 418.5 46.5 Average cost per ace (D): S 2,000 S 26.000 ; 50.000 Cost (E = C x D): $ 930.000 S 10.881,000 $ 2.325.000 S 14,136,000 Market Value of Habitat Conservation Lend (2005) $ 30,262.250 Inflation Factor (2005 to 2006) 1.03 Market Value of Habitat Conservation Land (2006) $ 31,170.100 Scums A Mahel ShdyoYLaad VMm, Fk*W b SewnlAnme a(Pmp*C&m Aelasib4 Asaxbled wah 6. Coaq,elk Vabynu6yb Spades HWbWC-,wveam pion, So c-1h. ,hy 2005. MwSinandg Table 3: Total Cost of Habitat Average Unix Inventory Cost Value Land Z260 acres $ 13,800 $ 31,170.100 2.5% Implementation Costs' NA NA 779,300 Total 31,949,400 Implementation costs include land acquisition costs and improvement costs. Sources: Coachella valley Association of Govemnrerds; Table 2; MradFinandal. Nfwlmanaat 9 .. COST ALLOCATION AND FEE SCHEDULE The cost of the acquisition program is allocated to all the potentially developable land in the CVFIT, mitigation fee area as calculated in Table 1 and shown in Figure 2. As previously described, the total disturbed acreage on which the fee would be imposed is 13,477 acres. Spreading the total cost equally across this acreage results in a per acre fee of $2,371. If this fee were to be in place for more than one year, it is recommended that it be adjusted annually for inflation. The CVFITL fee is expected to be replaced by the MSHCP fee when the MSHCP is implemented. The MSHCP fee would provide mitigation for the CVFTT, and all other covered species and natural communities included in the MSHCP. Table 4: Fee Calculation Cost of habitat acquisition $ 31,949,400 Acreage to be developed 13.477 Fee per acre of new development $ 2,371 Smmes: Tables 1 and 3; MuniRnamial. tUkml 10 r MITIGATION FEE ACT FINDINGS Fees are assessed and typically paid when a building permit is issued and imposed on new development projects by local agencies responsible for regulating land use (cities and counties). To guide the imposition of facilities fees, the California State Legislature adopted the Mitigation Fee Act with Assembly Bill 1600 in 1487 and subsequent amendments. The Mitgation Fee At, contained in California Gorrrnment Cade §§66000 — 66025, establishes requirements on local agencies for the imposition and administration of fees. The Act requires local agencies to document five statutory findings when adopting fees. The five findings in the Aa required for adoption of the maximum justified fees documented in this report are: 1) Purpose of fee, 2) Use of fee Revenues, 3) Benefit Relationship, 4) Burden Relationship, and 5) Proportionality. They are each discussed below and are supported throughout the rest of this report. PURPOSE OF FEE • Identfy the purpose of the fee (166001(a)(1) of the Act). The purpose of the CVFTL fee is to provide a funding source from new development for the acquisition of habitat and related implementation costs to mitigate development impacts to the CVFTL. The fee advances a legitimate public interest by funding habitat conservation necessary to keep the CVFTL Permit in effect until the MSHCP can be completed USE OF FEE REVENUES • Identify the use to mhicb the fees ndll be put If the use isf wnang fad&tiu, the faikft s sbad be idendfud. That dwhfication may, but need not, be made by reform to a capital LVmmmentplan as.pedited in 565403 or166002, may be made in applicable general or spa#cplan requirements, or may be made in otberpubb'c documents that idantify the facilidesfor wl icb the fees are cbmged (1Tf66001(a)(2) of t1k Aa). The revenue from the CVFI'L fee will be used to fund the acquisition of land for the conservation of CVFTL habitat, and will facilitate public and private project compliance with federal and state endangered species laws. The revenue would provide most of the funding necessary to acquire an estimated 2,260 acres of habitat, and pay for related program implementation costs. This habitat acquisition program mitigates the loss of CVFTL individuals and habitat caused by all development in the historic habitat of the species. The original CVFM HCP, supplemented by the 2001 MOU among the cities, the County, USFWS, CDFG, and the Center for Natural Lands Management (CNLM) represents the public documents referenced in the statute that adequately identify the amount, type, and general location of land to be acquired with CVFTL fees. 118tatiFnancial 11 � *' FriogrraedlitwdHa&AdAioiad nFee Cwbdh VatkyAuoaatiex ofGooe =xU The agencies responsible for implementing the CVFTL fee will restrict the use of fee revenues to one-time costs associated with the habitat acquisition program. These costs include: Purchase price of acquired land. Implementation costs including, but not limited to: acquisition -related costs, appraisals, escrow fees, hazardous materials site inspections and land improvements such as fencing to protect habitat from human impacts. BENEFIT RELATIONSHIP • Detemine the reasonable nladonrhip betaeen thefear' use and the type of dexhpmentpmjecton which the fees an imposed (16600 1 (a) (3) of the Act). All new development within the CVFTL mitigation fee area will directly or indirectly benefit from the'CVFrL fee by funding a comprehensive approach to habitat mitigation. The approximately 2,260 acres to be acquired in part with fee revenues were identified as high priority acquisition areas in the 2001 MOU to protect the CVFTL until the implementation of the MSHCP. The acquisition of these lands will mitigate for the impacts on CVF1L of all new development and associated public infrastructure projects within the CVFTL mitigation fee area during the term of the CVFTL Permit Each type of project leads to the elimination of habitat Thus, there is a reasonable relationship between the use of CVFTL fee revenue .and all types of new residential and nonresidential development that will pay the fee. The use of CVFTL fee revenues is described in the section of this report titled Cott of Habitat Acquudtiom It C '■ ► � ■ E • Detanne the traronaM relationship between the need for thepubhcfaah&es and the rypet of derelapment on Aieb the fees an imposed (§66001 (a) (4) of the Act). Allvacant lands in the historic habitat of the CVF1'L, as defined in the CVFTL HCP, including vacant lands or partially vacant lands in urban areas, represent current or potential habitat for the CVFTL. All new development projects on vacant or partially vacant lands regardless of location will have direct and cumulative impacts on the CVFTL, its potential habitat; or the ecological processes necessary to sustain that habitat. New development also ecauses a need for, and benefits from, the installation of public infrastructure. Wrthout new development, no further habitat conservation to mitigate for development impacts would be needed. Therefore, there is a reasonable relationship between the need for habitat conservation and all types of residential and nonresidential development throughout the CVFTL historic habitat area that will pay the fee. Habitat needs are described in the section of this report tided Needfor Habitat Conservation. 12 FtMrtbed U,Z d HabitatMikgadm Fa Cmd&B. V.&l A,raaaAioe ofGorrmmenrr PROPORTIONALITY • Detamne how that is a twonable relationrlup hetawn the fees amount and the cost of the fadhtiet orportion of the faah&es attributabk to the dembpment on which the fee is imposed (166001(b) of the Ad). Each newly developed acre has appro�imateiy the same proportionate impact by causing the direct, indirect, or cumulative, loss of an acre of potential habitat for CVFTL. For each developed acre, another acre must be acquired in the habitat conservation area to mitigate the effects of that development. The CVFTL fee is calculated on a per acre basis and the total fee for a specific project is based on its size as measured in acres. Thus there is a reasonable relationship between the fee fora specific development project and the direct indirec% or cumulative impact of that project on the need for habitat protection. See the Section of this report tided Coadxlla Talky Fringe -Toed Lirnd Mitigation Fee Ana for a description of the amount of new development that is projected. See the section of this report tided CostAllocation and Fee Scbeduk for a presentation of the mitigation fee schedule. MMtm Finaraal 13 r. r. 0'J0 i dr COUNCIL/RDA MEETING DATE: December 5, 2006 ITEM TITLE: Continued Joint Public Hearing to Consider a Proposed Disposition and Development Agreement by and Between the La Quinta Redevelopment Agency and LDD SilverRock, LLC for the Sale and Development of 52 Acres of Agency Property Located Southwest of the Intersection of RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: _ PUBLIC HEARING: Adopt a Resolution of the City Council approving the Disposition and Development Agreement by and between the La Quinta Redevelopment Agency and LDD SilverRock, LLC. FISCAL IMPLICATIONS: The Disposition and Development Agreement ("DDA") is structured as a series of seven distinct sale and development transactions, including: 1) the 13.79-acre Boutique Hotel Parcel; 2) the 2.43-acre Ranch House parking parcel ("Annex Parcel"); 3) the 19.6 acre Resort Hotel Parcel; 4) the 3.82-acre "Lake Casitas Parcel" located north of the Resort Hotel Parcel; 5) the 8.7-acre "Golf Casitas Parcel" located east of the Resort Hotel Parcel; 6) the 11.8-acre Resort Retail Parcel; and 7) the .78 acre "Black Box" Theater Parcel. Sale of each parcel is generally envisioned to occur in the above -listed order. Accordingly, the first parcel to be sold to LDD SilverRock, LLC ("LDD") will be the Boutique Hotel Parcel, for a purchase price of $3,309,600. Initial purchase prices have been established in the DDA for the remaining six parcels; however, because development will be phased and parcels sold over time, the final purchase prices will be determined by an appraisal that shall be conducted every three years on or before the effective date of the DDA. (This is further explained in Attachment No. 3 of the DDA). The initial purchase prices are as follows: Parcel/ Use Acres Per Acre Total Boutique Hotel 13.79 240,000 3,309,600 Ranch House Parking 2.43 - 585,000 Lake Casita 3.82 200,000 764,000 Golf Casita 8.63 200,000 1,726,000 Resort Hotel 19.65 200,000 3,930,000 Black Box 0.78 200,000 156,000 Total 49.10 $10,470,600 Additionally, as a guarantee of LDD's commitment to develop the project, LDD will deposit a series of five "Option Payments" with an Escrow Agent. The Option Payments will be used to reimburse LDD for costs incurred for the planning, designing, processing entitlements, and environmental review for each project component. LDD must request these reimbursements in writing, and the Agency shall approve the release of requested funds. The initial Option Payment of $825,000 will be deposited with the Escrow Agent no later that 30 days after the DDA effective date. (If the DDA were approved on December 5, 2006, the first Option Payment would be due on January 4, 2007). The second Option Payment of $825,000 would be due one year after the initial Option Payment (i.e., January 2008); the third Option Payment of $700,000 would be due in January 2009; the fourth Option Payment of $700,000 would be due in January 2010; and the fifth Option Payment of $200,000 would be due in January 2011. BACKGROUND AND OVERVIEW In July 2002, the Agency purchased the 525-acre site, which was once the Howard Ahmanson family ranch, with the goal of developing golf and resort/retail amenities for visitors and residents that would provide ongoing revenues to the City in the form of sales tax and transient occupancy tax. Phase I of SilverRock Resort was completed in February 2005, when the Arnold Palmer Classic Course and Ahmanson Retreat and Clubhouse (temporary clubhouse) were opened to the public. In March 2005, the Agency entered into an Exclusive Negotiation Agreement (ENA) with DDC Desert Development, Inc. (now known as LDD SilverRock, LLC) for the development of a boutique hotel, resort hotel, resort retail, and casitas units on approximately 55 acres within SilverRock Resort. Because of the project's complexity, the ENA was extended three times, with the current expiration date being December 31, 2006. During the ENA period, LDD created a development plan, which was adopted by the Agency Board on July 19, 2005. Agency staff, with the guidance and direction of the Agency Board, has been negotiating a very complex DDA, which establishes purchase prices, sales terms, project phasing and schedule of performance, level of hotel services (i.e., "Four Star"), hotel operations convenants, etc. The Summary Report (Attachment 1) and draft DDA (Attachment 2) are included for City Council and Agency Board consideration. 552 Development Program Boutique Hotel. The first project component to be developed is the Boutique Hotel, which is defined in the DDA as an intimate, Four -Star quality hotel containing no more than two hundred twenty-five (225) units, a sit-down restaurant that seats up to 80 persons concurrently inside and up to 40 persons concurrently outside, a first-class spa and fitness facility, a pool, at least ten thousand square feet (10,000 s.f.) of interior meeting space, and a parking structure containing at least one hundred fifty (150) parking spaces. A development plan for the Ranch House parking parcel is being developed by LDD, and it is assumed that development will generally track with the Boutique Hotel, depending upon when the permanent clubhouse is completed. Preliminary site planning efforts indicate that this parcel would be developed with 55 boutique hotel units. Resort Hotel. Four Star Quality or higher luxury hotel containing approximately 283 Units, with associated amenities, including, but not limited to, a sit-down restaurant that serves up to 100 persons concurrently inside and up to 60 persons concurrently outside, a first-class spa and fitness center, a parking structure containing not fewer than one hundred fifty (150) parking spaces, pools, and at least twenty thousand square feet (20,000 s.f.) of interior meeting space. At least ninety (90) of the Units in the Resort Hotel will be "traditional" Hotel Units (i.e., not individually owned). Resort Retail. Approximately eighty-one thousand square feet (81,000 s.f.) of space, with approximately forty thousand square feet (40,000 s.f.) of such space developed for and dedicated to retail uses, fifteen thousand square feet (15,000 s.f.) of such space developed for and designated to restaurant use, and twelve thousand square feet 0 2,000 s.f.) of such space to be developed for and dedicated to residential uses (i.e., resort -oriented office, live -work loft units, and multi -family residential units). Lake Casitas. Approximately fifty units located to the north of the Resort Hotel parcel. Golf Casitas. Approximately seventy-two units located to the east of the Resort Hotel parcel. Black Box Theater. A multi -purpose theater, cinema, or conference hall building, containing approximately 7,000-7,500 square feet, with theater capacity for approximately 250-300 persons. LDD is working on details regarding organizational structure, fundraising, and operations for the black box theater. The development plan will come before the City Council/Agency Board at a future date. Schedule of Performance A Schedule of Performance for each project component is included in the DDA as Attachment 9. The Schedule of Performance shows the outside timeframe for the various activities within each project component. Condo-Hotel/Fractional Concept It is anticipated that the majority of the hotel units will be condo -hotel units. Additionally, the DDA also allows up to 30% of the total units to be fractional units. Condo -Hotel Units are sold to an individual, third party owner, but, when not in use by such owner, are included in the inventory of rooms available for transient occupancy within the Project. Fractional Units are divided into multiple fractional interests, including, without limitation, timeshare interests, each of which can either be owned by a separate owner or by single owner, and each of which gives such owner the right to use such Unit for a different period of time. The Development Agreement approved by the City Council on November 21, 2006, creates the program that regulates the amount of time owners can occupy their units on an annual basis, and establishes the daily fee for stays beyond 29 days (the period under which TOT would be charged), which will be paid to the City, based on the size of the unit. In addition, the Condo - Hotel Units will be required to pay annual fees to the extent they did not generate Transient Occupancy Tax (TOT) in the specified amounts. The fractional units will be required to pay annual fees, regardless of occupancy and any TOT tax collected. Revenue to the Agency/City The Development will generate a combination of tax increment revenue that accrues to the Agency, and transient occupancy, development permit fee, and sales tax revenue that accrues to the City. The chart below presents the projected City/Agency income, and the present value of this income, for the first 10 years of operation. CITY INCOME: First 10 Years $ 50,468,910 AGENCY INCOME: First 10 Years $ 34,347,734 NET PRESENT VALUE $ 32,539,149 NET PRESENT VALUE $ 23,512,955 (6.5% discount rate) (6.5% discount rate) In addition, staff conservatively projects that the Development will annually generate 26,000 rounds of golf. Accompanying the staff report is a Summary Report that further details this transaction. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Adopt a Resolution of the City Council approving the Disposition and Development Agreement by and between the La Quinta Redevelopment Agency and LDD SilverRock, LLC; or 2. Do not adopt a Resolution of the City Council approving the Disposition and Development Agreement by and between the La Quinta Redevelopment Agency and LDD SilverRock, LLC; or 3. Provide staff with alternative direction. 554 Respectfully submitted, '� �Zxzz'� zz�zyr'�� Thomas P. Genovese City Manager Attachments: 1 2 Summary Report Disposition and Development Agreement RESOLUTION 2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND LDD SILVERROCK, LLC FOR THE PROPERTY LOCATED SOUTHWEST OF THE INTERSECTION OF JEFFERSON STREET AND AVENUE 52 DISPOSITION AND DEVELOPMENT AGREEMENT LDD SILVERROCK, LLC WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code ' 33000 et seq.) ("CRL"); and WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta ("City" or "City Council", as applicable) approved and adopted the Redevelopment Plan ("Redevelopment Plan") for La Quinta Project Area No. 1 ("Project Area"), on November 29, 1983, by Ordinance No. 43; and WHEREAS, the Agency staff has negotiated a Disposition and Development Agreement ("Agreement") with LDD SilverRock, LLC, a Delaware limited liability company ("Developer"), pursuant to which the Agency is to convey to the Developer approximately 58.97 acres of real property located within the Project Area (the "Property") for Twelve Million Five Hundred Forty Thousand Five Hundred Seventy -One Dollars ($12,540,571) for the Developer's subsequent development thereon of a resort commercial project containing a luxury four -star quality boutique hotel, a luxury four -star quality resort hotel, condominium hotel units, a retail village, resort units, and associated amenities, all as more particularly described in the Agreement (collectively, the "Project"); and WHEREAS, the Agreement provides that Agency may reacquire any undeveloped portion of the Property that is then owned by the Developer in the event the Developer fails to commence construction of any particular phase of the Project within certain specified time frames, interrupts construction of a particular phase of the Project for a specified period of time, or transfers a particular phase of the Project in violation of the Agreement, all as more particularly described in the Agreement; and WHEREAS, the Agreement requires the Developer to execute a Development Agreement concurrently with execution of the Agreement, which requires the recordation of restrictive covenants concerning the operation of the units and the payment of annual resort fees by the owners thereof; and WHEREAS, the Agreement requires that the Project be operated by Destination Hotels & Resorts, Inc., which is an entity related to Developer, or another operator with experience operating four -star quality hotels, for a period of ten years F City Council Resolution 2006- Disposition and Development Agreement LDD SilverRock, LLC Adopted: December 5, 2006 (10), and that the Project be operated in a four -star quality condition for a period of twenty (20) years, and requires the payment of liquidated damages in the event any portion of the Project is not operated at a four -star quality; and WHEREAS, the Agreement provides the Agency with discretion to lease the retail portion of the Property to Developer or to the City, for subsequent lease to the Developer, rather than selling such portion to Developer; and WHEREAS, Health and Safety Code Section 33433 requires that the Agency prepare a Summary Report to consider the Agency's proposed sale of the Property as set forth in the Agreement, that the Agency Board and the City Council conduct a noticed joint public hearing with respect to the Agreement, and that the approval of the Agreement be accompanied by certain findings and determinations as set forth herein; and WHEREAS, a Summary Report for the Agreement has been prepared and the joint public hearing has been conducted in accordance with applicable requirements of law; and WHEREAS, the City Council and the Redevelopment Agency have considered all the information and evidence set forth in the Summary Report presented by the City/Agency staff and presented by persons wishing to appear and be heard concerning the impact of the Agreement on the Project Area and the City as a whole; and WHEREAS, the Agreement is in accordance with the Redevelopment Plan and is of benefit to the Project Area and the City of La Quinta; and WHEREAS, the City Council hereby determines that the Agency's sale of the Property pursuant to the Agreement is necessary to effectuate the purposes of the Redevelopment Plan; WHEREAS, the City Council has complied with the requirements of the California Environmental Quality Act, Public Resources Code Section 21000, et seq., prior to considering this Agreement. Specifically, the project to be implemented through this Agreement was previously analyzed in the Mitigated Negative Declaration for the SilverRock Project (EA No. 2002-453) and the Addendum thereto approved by the City Council in Resolution No. 2006-082 in connection with the SilverRock Resort Specific Plan, and that the circumstances and conditions have not changes, and the project to be implemented is in substantial conformance with said Specific Plan, and no further environmental review is required under Public Resources Code 21166. S:\CityMgr\STAFF REPORTS ONLY\PH 2 CC Reso Approving LDD ODA.DOC City Council Resolution 2006- Disposition and Development Agreement LDD SilverRock, LLC Adopted: December 5, 2006 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA QUINTA AS FOLLOWS: That the above recitals are true and correct and incorporated herein. 2. That the City Council of the City of La Quinta hereby resolves as follows: A. The Agreement effectuates the purposes of the Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) and of the Redevelopment Plan and is in the best interests of the citizens of the City of La Quinta. B. The Agency's sale of the Property will eliminate blight and is consistent with the Agency's Five -Year Implementation Plan, based on the findings and conclusions of the Summary Report, which is incorporated herein. C. The Agency's sale of the Property will eliminate blight based on the findings and conclusions of the Summary Report D. The consideration the Developer will pay for the Property is not less than the fair market value of the Property at its highest and best use in accordance with the Redevelopment Plan, based on the findings and conclusions of the Summary Report. 3. The Agreement, a copy of which is on file with the Agency Secretary, is hereby approved. The City Council consents to the Agency's authorization and direction to its Executive Director and Agency Counsel to make final modifications to the Agreement that are consistent with the substantive terms of the Agreement approved hereby, and to thereafter sign the Agreement on behalf of the Agency. 4. The City Council consents to the Agency's authorization and direction to its Executive Director to (i) sign such other and further documents, including but not limited to subordination agreements and escrow instructions that require the Agency's signature, and (ii) take such other and further actions, as may be necessary and proper to carry out the terms of the Agreement. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of La Quinta held this 51'' day of December, 2006, by the following vote: S:\CityMgr\STAFF REPORTS ONMPH 2 CC Reso Approving LDD DDA.DOC City Council Resolution 2006- Disposition and Development Agreement LDD SilverRock, LLC Adopted: December 5, 2006 AYES: NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: VERONICA J. MONTECINO, CMC, City Clerk City of La Quinta, California APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California !'r"I S:\CityMgr\STAFF REPORTS ONLY\PH 2 CC Peso Approving LDD DDA.DOC ATTACHMENT1 SECOND REVISED SUMMARY REPORT Disposition and Development Agreement La Quinta Redevelopment Agency And LDD SILVERROCK, LLC. A Delaware Limited Liability Company November 30, 2006 INTRODUCTION This is the Second Revised Summary Report ("Second Revised Report") for the Disposition and Development Agreement ("Agreement") by and between the La Quinta Redevelopment Agency ("Agency") and LDD SilverRock, LLC. ('Developer"). An initial Report was prepared, dated November 7, 2006, that was subsequently updated and replaced by the Revised Summary Report dated November 17, 2006. The Revised Summary Report updated the financial aspects of this transaction as a result of the following: Adding a 2.43 acre parcel that the Agency would sell to the Developer per the Agreement; this parcel adjoins the Ahmanson Ranch House and currently is developed with parking for the Arnold Palmer Classic Golf Course Temporary Clubhouse ('Ranch House Parking"). When the Agency builds the permanent clubhouse, the 2.43 acre parcel will no longer be needed exclusively for parking and may be developed with additional resort uses. Revised site acreage due to the completion of the Tentative Tract Map. Revised financial analysis due to the additional land (2.43 acre parcel), the revised acreage, and the addition of site grading costs the Agency incurred. Since November 17, the Agency and the Developer have been refining the Agreement to accommodate development schedules, an Agency repurchase option, and final adjustments to the Tentative Tract Map. In order to accurately report and track these changes, the Agency prepared this Revised Summary Report. The updates from the Revised Summary Report are indicated in bold type. The Agreement facilitates the sale of up to 60.98 acres versus 58.97 acres to the Developer and the development of 780 versus 775 hotel rooms, 157,433 square feet of hotel operating assets, and 80,000 square feet of resort retail uses ('Development'). This transaction involves the SilverRock Resort, a 525 golf resort located southwest of the Avenue 52 and Jefferson Street intersection in La Quinta Redevelopment Project Area No. 1 ("Site"). J J V 12/1 /2006 This Second Revised Report has been prepared pursuant to Section 33433 of the California Community Redevelopment Law ("Redevelopment Law") and presents the following: • A summary of the proposed Development. • The cost of the Agreement to the Agency. • The estimated value of the interest to be conveyed, determined at the highest and best uses permitted by the Agency's Redevelopment Plan. • The estimated value of the interest to be conveyed, determined at the use with the conditions, covenants, and development costs required by the Agreement. • An explanation of why the sale of the property pursuant to the Agreement will assist in the elimination of blight. DEVELOPMENT SUMMARY Background In 2002, the Agency purchased the Site from KSL Land Holdings to develop municipal golf courses that would provide affordable golf opportunities for La Quinta residents, and to facilitate resort hotel and retail development. Two of the blighting conditions cited for establishing La Quinta Redevelopment Project Area No. 1 were the lack of recreation facilities and the lack of enterprises that stimulate business activity. The Agency purchased the Site in order to develop municipal/public golf and other passive recreation uses, and to provide the Agency with the means to facilitate resort, hospitality, and related development that will attract patrons to Project Area No. 1 and generate additional demand for local businesses. In 2003 the Agency approved the SilverRock Master Plan for the Site and retained Palmer Course Design to design a tournament quality golf course. Mass grading and golf course construction commenced in January 2004, with the Arnold Palmer Classic Course opening in March 2005. During this period Agency staff met with various resort developers and operators to evaluate interest in building one or more hotel and resort complexes adjacent to the Palmer Classic Course. A Request for Qualifications was circulated to 15 hotel development and operator companies in August 2004. Qualifications statements were received from 10 firms in October 2004 and the Agency Board approved an Exclusive Negotiation Agreement with DDC Desert Development, Inc. (the Developer) on March 15, 2005. The Developer is affiliated with Lowe Enterprises, a firm that develops, acquires and manages resorts and resort residential communities nationwide. The Exclusive Negotiation Agreement initially covered the approximately 85 acres of property designated in the SilverRock Master Plan for resort and retail uses. In June 2006, the Exclusive Negotiation Agreement was extended until November 30, 2006 and the scope of the Exclusive Agreement was reduced to encompass the 60.98 acres that are the subject of the Agreement. The Exclusive Negotiation Agreement was subsequently extended until December 31, 2006 on November 21, 2006. 12/1/2006 2 Land Sale/Lease The Agreement provides that the Agency will sell or lease 60.98 acres of land at SilverRock Resort to the Developer at fair market land value, as further discussed below. The Developer will then construct resort hotel, condominium resort hotel, hotel core facilities, and retail uses over a 6 year period. The sale or lease of 60.98 acres to the Developer would result in the following land allocation for the Site: Developer. 11.6% of the total Site acreage; the 60.98 acres would be developed as follows: ➢ 13.79 acres for the Boutique Hotel ➢ 2.43 acres for the Ranch House Parking boutique hotel units ➢ 32.88 acres for the Resort Hotel, Black Box, and Lake and Golf Casitas units ➢ 11.80 acres for the Resort Retail. City/Agencv. The City/Agency will retain 88.4°/a of the total Site acreage; the 464.02 acres are or are proposed to be developed as follows: ➢ 367.13 acres for the golf courses and associated uses ➢ 35 acres for a future civic park ➢ 30 acres for roads, trails and domestic water well sites ➢ 1.5 acres for the Ahmanson Ranch House ➢ 30.39 acres for future resort hotel land sale and development The Agreement provides that the Developer will purchase and/or lease approximately 60.98 acres in 7 phases. The Developer would purchase the land designated for the Boutique Hotel, the Ranch House Parking boutique hotel units, Resort Hotel, Lake Casitas, Golf Casitas, and Black Box Theater. The Resort Retail land may be sold or leased to the Developer as determined by market conditions when the Resort Retail site is scheduled to be developed. If the land is purchased, the Agency would sell the property to the Developer at fair market value. If the land is leased, the Agency would transfer the property to the City of La Quinta, who would then lease the land to the Developer for a 55 year term at a fair market lease value. The Agreement also provides that if market conditions warrant a faster absorption schedule and if the Developer can demonstrate that it has financing to purchase and develop the Resort Hotel, Resort Retail, the Lake Casitas, the Golf Casitas, and the Black Box Theater parcels per the Specific Plan and the Agreement, then the Agency's Executive Director may authorize the sale of these parcels in advance of completing the respective development programs outlined above. Option Payments The Developer will pay the Agency $3,250,000 in option payments as follows: $825,000 upon Agreement execution • $825,000 the first year after Agreement execution $700,000 the second year after Agreement execution $700,000 the third year after Agreement execution 12/1 /2006 • $200,000 the forth year after Agreement execution. The Option Payments may be used by the Developer to fund design, engineering and environmental specialist costs, and up to 35% of Developer management costs. The Option Payments will be deposited into an escrow fund; fund disbursement would occur after Agency receipt and approval of funding draw requests. Remaining option payment funds may be applied to the land acquisition price. Development Program The Agreement provides that the Developer shall build the development program established by the SilverRock Resort Specific Plan as follows: Boutique Hotel & Ranch House Parking Boutique Hotel Units ➢ Up to 280 condominium hotel units with 310 keys ➢ 46,080 SF hotel operating asset: 12,000 SF meeting space, spa/fitness facility, restaurant/lounge, retail, lobby, office/support ➢ 300 parking spaces ➢ At least 150 trellis covered parking ➢ 150-space parking structure ➢ 4 star quality hotel operating asset, guest room and service levels Resort Hotel & Lake and Golf Casitas Units ➢ Up to 405 hotel rooms with 520 keys ➢ A minimum of 90 pure hotel rooms ➢ 157,433 SF hotel operating asset: 20,000 SF meeting space, spa/fitness facility, restaurant/lounge, retail, lobby, office/support ➢ 750 parking spaces ➢ At least 30% of surface parking shall be covered with a trellis ➢ At least 150 spaces shall be housed in a parking structure ➢ Room count includes Resort Lake and Golf Casitas units ➢ 4 star quality hotel operating asset, guest room and service levels Resort Retail ➢ Up to 80,000 SF in two story structures • 40,000 SF retail • 12,000 SF restaurant • 7,000 SF office or additional retail • 12,000 SF residential ➢ 350 parking spaces with at least 30% covered • Black Box Theater ➢ A multi -purpose theater, cinema, or conference hall building, containing approximately 7,000-7,500 square feet, with theater capacity for approximately 250-300 persons. This use designated for a parcel that will be located between the Resort Hotel and Resort Retail. 12/1 /2006 Environmental Review The Agency processed the SilverRock Specific Plan which established the land use and development standards for the Site. As part of the Specific Plan process, the Agency processed an Addendum to the Mitigated Negative Declaration (MND) the Agency adopted for the acquisition and development of the Site in May 2002. The Addendum was adopted in July 2006. THE COST OF THE AGREEMENT TO THE AGENCY The total cost of the Agreement to the Agency is estimated to be $1,687,458 if the Resort Retail land is transferred to the City and leased to the Developer. The Agency would receive net income of $382,513 if the Agency sells the Resort Retail land to the Developer. The Agency's land purchase cost for the 60.98 acres was $80,952 per acre or $4,936,476. Series 2003 Taxable Tax Allocation Bond proceeds (wherein bond holders pay federal and state income tax on bond interest earnings) were used to purchase the 60.98 acres; bond interest expense, assumed to be a weighted average of 6% per annum for the 29 year bond term, is projected to be $6,477,471. The total principal and interest cost related to the land purchase would be $11,413,947. The Agency also paid $744,111 for site planning and grading activities associated with the Boutique Hotel, Ranch House Parking boutique hotel, and Resort Retail parcels. These costs were funded through the Series 2003 Taxable Tax Allocation Bond proceeds; bond interest expense, assumed to be a weighted average of 6% per annum for the 29 year bond term, is projected to be $873,521. The total principal and interest cost related to the planning and grading costs would be $1,617,632. The total land purchase, site planning and grading costs (principal and interest) will be $13,031,579. The chart below itemizes these costs on a per parcel basis. Parcel/ Use Acres Acquisition Design/ Grading Intererst Carry Total Boutique Hotel 13.79 $ 1,116.333 $ 168,273 $1,464,813 $ 2,749,420 Ranch House Parking 2.43 196,714 29,652 258,122 484,488 Lake Casita 3.82 309,238 46,614 405,771 761,623 Golf Casita 8.63 698,619 105,308 916,703 1,720,630 Resort Hotel 19.65 1,590,714 239,780 2,087,280 3,917,774 Black Box 0.78 63,143 9,518 82,854 155,515 Resort Retail 11.88 961,714 144,966 1,261,928 2,368,608 Total 60.98 $ 4,936,476 $ 744,111 $ 6,477,471 $12,158,058 If the Resort Retail land is transferred to the City, the Agency would receive land sale income from the Boutique Hotel, the Ranch House Parking boutique hotel, the Resort Hotel, the Lake and Golf Casitas parcels and the Black Box Theater parcel. Total land r- J 1211/2006 sale income would be $10,470,600. When applied to the total cost of $13,031,579, the net cost to the Agency would be $1,687,458. If the Resort Retail land is sold to the Developer, the Agency would receive land sale income from the Boutique Hotel, the Ranch House Parking boutique hotel, Resort Hotel, the Lake and Golf Casitas, the Resort Retail parcel, and the Black Box Theater parcel. Total land sale income would be $12,540,571. When applied to the total cost of $13,031,579, the Agency would receive net income of $382,513. The Agreement provides that the land shall be reappraised 36 months after the effective date of the Agreement, if the Developer has not acquired the 60.98 acres prior to this date. This provision was included in order to insure that the land is sold to the Developer at fair market value. If the reappraisal results in an increase or decrease in land values, the resulting cost of the Agreement to the Agency would either decrease or increase. ESTIMATED VALUE OF INTEREST TO BE CONVEYED The estimated value of the interest to be conveyed entails the fair market value of the 60.98 acres of land. The Agency commissioned two real property appraisals, prepared by Michael A. Scarcella, MAI, of Capital Realty Advisors, that present an opinion of the market value of the fee simple estate of the 60.98 acres. The first appraisal, established the following sale and lease value as of August 1, 2006 all parcels except the Ranch House Parking boutique hotel property; an opinion of the market value of the fee simple estate of this parcel was established on November 20, 2006. The chart below presents these values. Parcel/ Use Acres Per Acre Total Boutique Hotel 13.79 240,000 3,309,600 Ranch House Parking 2.43 240,741 585,000 Lake Casita 3.82 200,000 764,000 Golf Casita 8.63 200,000 1,726,000 Resort Hotel 19.65 200,000 3,930,000 Black Box 0.78 200,000 156,000 Resort Retail 11.88 174,240 2,069,971 Total 60.98 $12,540,571 If the Resort Retail land is sold to the Developer, then the total value of the interest to be conveyed is $12,540,571. If the Resort Retail land is transferred to the City and then leased to the Developer, then the total value of the interest to be conveyed is $10,470,600. 12/1/2006 The Agreement provides that the 60.98 acres of land be sold to the Developer at fair market value. This value was established by the aforementioned real property appraisal. This appraisal was prepared using the permitted land uses and development requirements set forth in the July 18, 2006 SilverRock Resort Specific Plan. The Agreement does not establish additional conditions, covenants and development costs other than those imposed by the Specific Plan. The Site is located in La Quinta Redevelopment Project Area No. 1 which was established in December 1983. Two of the blighting conditions cited for establishing Project Area No. 1 were the lack of recreation facilities and the lack of enterprises that stimulate business activity. The land sale and development transactions facilitated by the Agreement will result in additional resort and retail venues that will attract patrons to Project Area No. 1 and generate additional demand for local businesses. This Development contemplated by this Agreement was identified in the Agency's Third Implementation Plan adopted in June 2005. A copy of the proposed Agreement is attached to this Second Revised Report or available for review at the City Hall. The proposed Agreement will be the subject of a continued joint public hearing of the Agency and the La Quinta City Council on December 5, 2006 at 7:00 PM or thereafter in the City Council Chambers located at 78-495 Calle Tampico, La Quinta, California. r. 12/1 /2006 ATTACHMENT 2 DRAFT DISPOSITION AND DEVELOPMENT AGREEMENT By and Between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic, and LDD SILVERROCK, LLC, a Delaware limited liability company 882/015610-0084 737414.05 a12/01/06 TABLE OF CONTENTS Page 100. DEFINITIONS..................................................................................................................I 200. CONVEYANCE OF THE PROPERTY...........................................................................9 201. Disposition of the Property ................................................................................... 9 201.1 The Initial Escrow.....................................................................................9 201.2 The Second Escrow...................................................................................9 201.3 The Third Escrow...................................................................................10 201.4 The Fourth Escrow..................................................................................10 202. Escrow.................................................................................................................11 202.1 Costs of Escrow......................................................................................11 202.2 Payment of Purchase Price......................................................................11 202.3 Escrow Instructions.................................................................................11 202.4 Authority of Escrow Agent.....................................................................12 202.5 Closing....................................................................................................12 202.6 Termination.............................................................................................13 202.7 Closing Procedure...................................................................................13 203. Review of Title of Property................................................................................13 204. Title Insurance....................................................................................................15 205. Conditions of Closing.........................................................................................15 205.1 Agency's Conditions of Closing.............................................................15 205.2 Final Phasing Plan ...................................................................................18 205.3 Developer's Conditions of Closing.........................................................18 206. Studies and Reports.............................................................................................19 206.1 Access to Property ..................................................................................19 206.2 Indemnification.......................................................................................20 207. Condition of the Property ....................................................................................21 207.1 Disclosure...............................................................................................21 207.2 Investigation of Property.........................................................................21 207.3 No Further Warranties As To Property; Release of Agency ..................21 207.4 Developer Precautions After the Closing...............................................22 207.5 Developer Indemnity..............................................................................22 208. Deposit Payments...............................................................................................23 208.1 Schedule of Payments.............................................................................23 208.2 Release of Deposit Payment Funds to Developer...................................23 208.3 Agency Retention of Deposit Payment Funds........................................25 209. Right of First Refusal..........................................................................................25 300. DEVELOPMENT OF THE PROJECT..........................................................................27 301. Scope of Development........................................................................................27 302. Design Review....................................................................................................27 302.1 Developer Submissions...........................................................................27 302.2 City Review and Approval......................................................................27 302.3 Revisions.................................................................................................27 �- r Page 302.4 Defects in Plans.......................................................................................27 302.5 Land Use Approvals...............................................................................28 303. Schedule of Performance....................................................................................28 304. Indemnity and Insurance Requirements..............................................................28 305. Indemnity ............................................................................................................29 306. Rights of Access.................................................................................................30 307. Compliance With Laws; Payment of Taxes........................................................30 307.1 Compliance with Laws...........................................................................30 307.2 Taxes and Assessments...........................................................................30 308. Release of Construction Covenants....................................................................31 309. Financing of the Project......................................................................................31 309.1 Approval of Financing............................................................................31 309.2 Changes Requested by Lenders..............................................................32 309.3 Notice of Default to Mortgagee or Deed of Trust Holders; Right toCure.....................................................................................................32 309.4 Failure of Holder to Complete Project....................................................32 309.5 Right of the Agency to Cure Mortgage or Deed of Trust Default ..........33 309.6 Holder Not Obligated to Construct Project.............................................33 310. Developer CC&Rs..............................................................................................33 311. Interference with Municipal Golf Course...........................................................34 312. Infrastructure Improvements...............................................................................34 312.1 The cost of any and all curb cuts necessary to connect any portions of the Project to the backbone infrastructure within the SilverRockResort Area..........................................................................34 312.2 The cost to restore or replace any of backbone infrastructure within the SilverRock Resort Area Developer believes should be altered once the City has completed the same...................................34 312.3 The cost to repair any damage to the backbone infrastructure within the SilverRock Resort Area caused by Developer's construction activities.............................................................................34 312.4 Reconnecting the water and sewer lines for the comfort station located on the Boutique Hotel Parcel......................................................34 312.5 Relocating any above -ground utility if such relocation becomes necessaryin the future............................................................................34 312.6 Constructing and installing on -site water and sewer laterals and/or loops.............................................................................................34 312.7 Installing and paying electricity costs for all on -site lighting needs....................................................................................................... 35 400. DEVELOPMENT AGREEMENT; RESORT RETAIL VILLAGE PARCEL GROUNDLEASE..........................................................................................................35 401. Tenn....................................................................................................................35 402. Rent Schedule.....................................................................................................35 403. No Assignment....................................................................................................35 404. Permitted Uses....................................................................................................35 882/015610-0084 737414.05 a12/01/06 -11- Paee 500. USE AND OPERATION OF THE PROPERTY...........................................................35 501. Use in Accordance with Redevelopment Plan ....................................................37 502. Maintenance Covenants......................................................................................37 503. Nondiscrimination Covenants.............................................................................37 504. Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction......................................................................38 505. Representations and Warranties..........................................................................39 505.1 Agency Representations..........................................................................39 505.2 Developer's Representations..................................................................40 600. DEFAULTS AND REMEDIES.....................................................................................41 601. Default Remedies................................................................................................41 602. Institution of Legal Actions................................................................................41 603. Termination Prior to the Close of the Initial Escrow..........................................41 603.1 Termination by Developer......................................................................42 603.2 Termination by Agency..........................................................................42 604. Termination Prior to Subsequent Parcel Conveyance........................................42 604.1 Termination by the Developer................................................................42 604.2 Termination by the Agency....................................................................43 605. Agency Option to Acquire Plans........................................................................43 606. Option Agreement...............................................................................................43 607. Right to Reverter and Power of Termination......................................................44 608. Acceptance of Service of Process.......................................................................44 609. Rights and Remedies Are Cumulative................................................................44 610. Inaction Not a Waiver of Default........................................................................44 611. Applicable Law...................................................................................................44 612. Non -Liability of Officials and Employees of the Agency..................................44 613. Attorneys' Fees...................................................................................................45 700. GENERAL PROVISIONS.............................................................................................45 701. Notices, Demands and Communications Between the Parties ...........................45 702. Enforced Delay; Extension of Times of Performance........................................46 703. Transfers of Interest in Property, Agreement, or Management ..........................46 703.1 Transfers of Interest in Property or Agreement Prior to Agency's Issuance of a Release of Construction Covenants ..................46 703.2 Transfers of Operational Obligations......................................................47 703.3 Assignment and Assumption of Obligations..........................................48 703.4 Successors and Assigns...........................................................................48 703.5 Assignment by Agency...........................................................................49 704. Relationship Between Agency and Developer...................................................49 705. Agency Approvals and Actions..........................................................................49 706. Counterparts........................................................................................................49 707. Integration........................................................................................................... 49 708. Real Estate Brokerage Commission....................................................................50 709. Titles and Captions............................................................................................. 50 710. Interpretation....................................................................................................... 50 \- 57 882/015610-0084 -111- 737414 05 a12/01/06 Pape 711. No Waiver...........................................................................................................50 712. Modifications......................................................................................................50 713. Severability .........................................................................................................50 714. Computation of Time..........................................................................................50 715. Legal Advice.......................................................................................................51 716. Time of Essence..................................................................................................51 717. Cooperation.........................................................................................................51 718. Conflicts of Interest.............................................................................................51 719. Time for Acceptance of Agreement by Agency ................................................. 51 ATTACHMENTS Attachment No. 1 - Legal Description of Property Attachment No. 2 - Site Map Attachment No. 3 - Purchase Price Attachment No. 4 - Form of Grant Deed Attachment No. 5 - Scope of Development Attachment No. 6 - Form of Development Agreement Attachment No. 7 - Form of Option Agreement Attachment No. 8 - Release of Construction Covenants Attachment No. 9 - Schedule of Performance Attachment No. 10 - Memorandum of DDA Attachment No. 11 - Form of Parcel Map Attachment No. 12 - Four Star Quality Requirements Attachment No. 13 - List of Public Improvements Attachment No. 14 - List of Authorized Managers Attachment No. 15 - Rent Schedule for Resort Retail Village Parcel 882/015610-0084 J 1 737414.05 al2/01/06 -iv- DRAFT DISPOSITION AND DEVELOPMENT AGREEMENT THIS DISPOSITION AND DEVELOPMENT AGREEMENT (this "Agreement") is entered into as of , 2006 ("Effective Date"), by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), and LDD SilverRock, LLC, a Delaware limited liability company (the "Developer"). RECITALS The following recitals are a substantive part of this Agreement: A. Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (Health & Safety Code Section 33000, et seq.). B. Developer is an affiliate of a national real estate development company which, including its affiliates, specializes in the development and management of luxury hotels, resort condominiums, and related amenities. C. Agency owns fee title to that certain real property located at the southwest intersection of Jefferson Street and Avenue 52 in the City of La Quinta, California 92253 (the "Property"). The Property is located in La Quinta Redevelopment Project Area No. I (the "Project Area"), which Project Area is located in the City of La Quinta, California. D. The Agency and the Developer desire by this Agreement for Developer to purchase the Property from Agency and to construct, complete, and operate thereon a commercial project containing a luxury four -star quality or higher boutique hotel and a four -star quality or higher luxury resort hotel, a retail village, condominium hotel units, resort units, and associated amenities, all as further described herein. E. The Agency's disposition of the Property to the Developer, and the Developer's subsequent construction, completion and operation of the "Project" (as that term is defined in Section 100 below) thereon, pursuant to the terms of this Agreement, are in the vital and best interest of the City of La Quinta and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state, and local laws and requirements. NOW, THEREFORE, the Agency and Developer hereby agree as follows: 100. DEFINITIONS "Agency" means the La Quinta Redevelopment Agency, a public body, corporate and politic, exercising governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California, Health and Safety Code, Section 33000, et seq., and any assignee of or successor to its rights, powers and responsibilities. "Agency's Conditions Precedent to Closing" means the conditions precedent to a Closing to the benefit of Agency, as set forth in Section 205.1 hereof. r 882/015610-0084 _ 737414.05 al2/01/06 Vol MA "Agreement" means this Disposition and Development Agreement between the Agency and the Developer. "Authorized Manager" is defined in Section 502. "Best Knowledge" or "Actual Knowledge" means, for purposes of a representation or warranty given hereunder, that such party has conducted a reasonable review of its files and has made reasonable inquiry of its employees and agents responsible for the acquisition, development and disposition of the Boutique Hotel Parcel, the Resort Hotel Parcel, the Lake Casitas Parcel, the Resort Retail Village Parcel, or the Golf Casitas Parcel. "Black Box" means a multi -purpose theater, cinema, or conference hall building, containing approximately 7,000-7,500 square feet, with theater capacity for approximately 250- 300 persons, and required parking, as further described in the Specific Plan, Scope of Development, and Development Agreement. "Black Box Parcer' means that certain real property designated as Lot 4 on the Parcel Map. The Black Box Parcel is comprised of approximately .78 acres. "Boutique Hotel" means the component of the Project that consists of Developer's construction and subsequent operation of an intimate, Four -Star Quality hotel containing no more than two hundred twenty-five (225) Units, a sit-down restaurant that up to 80 persons concurrently inside and up to 40 persons concurrently outside, a first-class spa and fitness facility, a pool, at least ten thousand square feet (10,000 sf) of interior meeting space, a parking structure containing at least one hundred fifty (150) parking spaces, and other related amenities, all as further described in the Scope of Development and Specific Plan. Developer shall develop the Boutique Hotel on the Boutique Hotel Parcel. "Boutique Hotel Parcel" means that certain real property designated as Lot 19 on the Parcel Map. The Boutique Hotel Parcel is comprised of approximately 13.79 acres. The Boutique Hotel Parcel may be subdivided into two or more legal parcels after the Effective Date. In such event, when used herein, the terms "Boutique Hotel Parcel" shall refer to all such legal parcels. The City has installed a pipeline across portions of the Boutique Hotel Parcel. The Parcel Map depicts the location of the easement required for the City to access, maintain, and repair such pipeline. Developer hereby acknowledges that Agency's conveyance of the Boutique Hotel shall be subject to the foregoing easement. "Casita Unit" means a Unit that is not located in a main hotel building. "City" means the City of La Quinta, a California municipal corporation. "City Declaration of CC&Rs" means a Declaration of Covenants, Conditions and Restrictions substantially in the form attached to the Development Agreement as Exhibit "E". "Closing" means the close of escrow for the conveyance from the Agency to the Developer of one or more Parcels as set forth in Section 202.5 hereof. � ar/ 882/015610-0084 -2- 737414.05 al2/01/06 "Closing Date" means the date Escrow closes for the conveyance from the Agency to the Developer of one or more Parcels as set forth in Section 202.5 hereof. "Completion of Construction Date" is defined in Section 304 hereof. "Condition of Property Title" is defined in Section 203 hereof. "Condominium Hotel Unit" means a Unit which is sold to a third party owner, but which, when not in use by such owner, is part of the inventory of rooms available for transient occupancy within the Project. "Contractor Bonds" means payment and performance bonds ensuring the completion of a subcontractor's work in a Phase of Development. "Default" means the failure of a party to perform any action or covenant required by this Agreement within the time periods provided herein following notice and opportunity to cure, as set forth in Section 601 hereof. "Deposit Payment" or "Deposit Payments"' is defined in Section 208 hereof. "Design/Construction Development Drawings" means those plans and drawings to be submitted to the City with respect to the development of each Phase of Development, as set forth in Section 302 hereof. "Developer" means LDD SilverRock, LLC, a Delaware limited liability company, and its successors and assigns. "Developer CC&Rs" is defined in Section 310 hereof. "Developer Representatives" means, collectively, Developer's managers, directors, engineers, analysts, officials, employees, agents, contractors, representatives, attorneys, advisers, and consultants, including an Environmental Consultant. "Developer's Conditions Precedent to Closing" means the conditions precedent to a Closing to the benefit of Developer, as set forth in Section 205.2. "Development Agreement" means the Development Agreement, substantially in the form attached hereto and incorporated herein as Attachment No. 6, which Developer and City are required to execute as a condition to the effectiveness of this Agreement. "DHR" means Destination Hotels & Resorts, Inc., a California corporation. "Effective Date" means the date inserted into the Preamble hereof, which is the date both parties have executed this Agreement. "Environmental Consultant" means a consultant engaged by Developer, at Developer's sole cost and expense, which conducts the environmental investigations of the Property pursuant to Section 207.2 hereof. r, v 882/015610-0084 737414.05 al2/01/06 DRAFT "Escrow" is defined in Section 201 hereof. "Escrow Agent" is defined in Section 202 hereof. "Evidence of Financial Capability" means evidence reasonably satisfactory to Agency's Executive Director that Developer has the financial resources necessary for the acquisition of each Parcel and the subsequent development of each respective Phase of Development, as further described in Section 311. "Fee Transfer Release Date" is defined in Section 703.1. "FIRPTA" means the Foreign Investment in Real Property Transfer Act. "Four Star Quality" means that the applicable Phase of Development provides all of the services, amenities and facilities listed on Attachment No. 12, which is attached hereto and incorporated herein by this reference. "Fractional Unit" means a Unit that is either (a) a condominium, the ownership of which is divided into multiple fractional interests, including, without limitation, timeshare interests, each of which can either be owned by a separate owner or by single owner, and each of which gives such owner the right to use such Unit for a different period of time; or (b) a Unit that is owned in fee by the Developer, Developer's successor in interest, DHR, or a successor in interest that is authorized or permitted pursuant to Section 703.2 hereof, and in which memberships are sold to third parties giving such parties the right to use and occupy the Unit for certain periods of time. "Golf Casitas Development" means the component of the Project that consists of Developer's construction and subsequent operation of approximately seventy-two (72) Casita Units. Developer shall develop the Golf Casitas Development on the Golf Casitas Parcel, in conformance with the Scope of Development and Specific Plan. "Golf Casitas Parcel" means that certain real property designated as Lot 11 on the Parcel Map. The Golf Casitas Parcel is comprised of approximately 8.63 acres. "Good Funds" means a confirmed wire transfer of immediately available funds, cashier's or certified check drawn on or issued by the office of a financial institution located in Riverside County, or cash. "Governmental Requirements" means all laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State of California, the County of Riverside, the City, or any other political subdivision in which the Property, or any portion thereof, is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over the Developer, and/or the Property, or any portion thereof. "Grant Deed" means a grant deed, substantially in the form attached hereto and incorporated herein by this reference as Attachment No. 4, pursuant to which Agency shall convey to Developer title to one or more Parcels. 882/015610-0084� --4- 737414.05 42/01/06 "Hazardous Materials" means any substance, material, or waste which is, or becomes, regulated by any local or regional governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", "extremely hazardous waste", or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated byphenyls, (viii) methyl tertiary butyl ether, (ix) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (x) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (xi) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (xii) defined as "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601 et seq. "Hotel Unit" means the Units in the Project that will be owned in fee by Developer or any successor authorized pursuant to Section 703 hereof and managed by DHR or any successor hotel management entity authorized or approved by the Agency pursuant to Section 703 hereof. None of the Hotel Units may be sold as Condominium Hotel Units or as Fractional Units. "Initial Escrow" is defined in Section 201.2. "Initial Purchase Price" means the fair market value of each Parcel as of the Effective Date. The Initial Purchase Price for each Parcel is set forth in Attachment No. 3. "Lake Casitas Development" means the component of the Project that consists of Developer's construction and subsequent operation of approximately fifty (50) Casita Units. Developer shall develop the Lake Casitas Development on the Lake Casitas Parcel in conformance with the Scope of Development and Specific Plan. "Lake Casitas Parcel" means that certain real property designated as Lot 23 on the Parcel Map. The Lake Casitas Parcel is comprised of approximately 3.82 acres. "Land Use Approvals" is defined in Section 302.5. "Lock -Off Feature" means a feature that enables one of the bedroomsibathrooms in a Unit to be closed off from the remainder of the Unit and rented as a separate Unit. "Lowe Enterprises" means Lowe Enterprises, Inc., a California corporation, which is an affiliate of Developer. "Management Transfer" is defined in Section 703.2. r. 'J 882/015610-0084 -5- 737414.05 aIV01/06 DRAFT "Management Transfer Release Date" is defined in Section 703.2. "Memorandum of DDA" means the Memorandum of Disposition and Development Agreement substantially in the form attached hereto and incorporated herein as Attachment No. 10. "Notice" means a notice in the form prescribed by Section 701 hereof. "Option Agreement" means the Option Agreement substantially in the form attached hereto and incorporated herein as Attachment No. 7. The Option Agreement shall be recorded against each Parcel at the Close of Escrow that includes such Parcel. "Outside Date for Closing" means the last date Escrow may close for the conveyance from Agency to Developer of each Parcel. The Outside Date for Closing is referenced in Section 202.5 hereof and the Outside Date for Closing for each Parcel is set forth in the applicable Schedule of Performance for each Parcel. "Parcel" means any of the following: Black Box Parcel, Boutique Hotel Parcel, Golf Casitas Parcel, Lake Casitas Parcel, Ranch Villas Parcel, Resort Hotel Parcel, or Resort Retail Village Parcel. The term "Parcels" means all of the Parcels described in the immediately preceding sentence. "Parcel Map" means Parcel Map No. 33367, which has been prepared by the Agency. The Parcel Map shall be recorded prior to or concurrently with the first Closing hereunder. A copy of the Parcel Map is attached hereto and incorporated herein as Attachment No. 11. "Performance Default Amount" is defined in Section 502. "Phase of Development" means any of the following components of the Project: Black Box, Boutique Hotel, Golf Casitas Development, Lake Casitas Development, Ranch Villas Development, Resort Hotel, or Resort Retail Village Development. "Phase of Development Owner" is defined in Section 502. "Phase One of Boutique Hotel" is defined in Section 201.2. "Phase One of Resort Hotel" is defined in Section 201.4. "Preliminary Title Report" means the preliminary title report issued by the Title Company that covers the Property, as described in Section 203. "Project" means the commercial development to be constructed on the Property that consists of the Black Box, Boutique Hotel, the Golf Casitas Development, the Lake Casitas Development, the Resort Hotel, and the Resort Retail Village Development. "Project Area" means the La Quinta Redevelopment Project Area No. 1, adopted by the City pursuant to the Redevelopment Plan. o17 882/015610-0084 _6_ 737414.05 a12101106 F t 09" "Property" means that approximately 58.97 acres of real property located at the southwest intersection of Jefferson Street and Avenue 52 in the City of La Quinta, California 92253. The Property is legally described in the Property Legal Description and depicted in the Site Map. "Property Environmental Reports" means the collective environmental investigations of the Property conducted pursuant to Section 207.2 hereof. "Property Exceptions" is defined in Section 203. "Property Legal Description" means the description of the Property which is attached hereto as Attachment No. 1 and incorporated herein by this reference. "Purchase Price" means the price to be paid by Developer to the Agency in consideration of the Agency's conveyance to Developer of fee title to a Parcel. The Purchase Price is referenced in Section 202.2 hereof. The Purchase Price for each Parcel shall be determined as set forth in Attachment No. 3 hereto. "Ranch Villas Development" means the component of the Project that consists of Developer's construction and operation of approximately fifty (50) Casita Units. Developer shall develop the Ranch Villas Development on the Ranch Villas Parcel in compliance with the Scope of Development and Specific Plan. "Ranch Villas Parcel" means that certain real property designated as Lot 22 on the Parcel Map. The Ranch Villas Parcel is comprised of approximately 2.43 acres. "Redevelopment Plan" means the Redevelopment Plan for the Project Area, adopted on November 29, 1983, by Ordinance No. 43, of the City Council of the City of La Quinta, which Redevelopment Plan is incorporated herein by reference. "Release of Construction Covenants" means the document which evidences the Developer's satisfactory completion of a Phase of Development, as set forth in Section 310 hereof, substantially in the form of Attachment No. 8 hereto which is incorporated herein by this reference. "Resort Hotel" means the component of the Project that consists of Developer's construction and operation of a Four Star Quality or higher luxury hotel containing approximately Two hundred eighty-three (283) Units, with associated amenities, including, but not limited to, a sit-down restaurant that serves up to 100 persons concurrently inside and up to 60 persons concurrently outside, a first-class spa and fitness center, a parking structure containing not fewer than one hundred fifty (150) parking spaces, pools, and at least twenty thousand square feet (20,000 sf) of interior meeting space, all as further described in the Scope of Development and Specific Plan. At least ninety (90) of the Units in the Resort Hotel shall be Hotel Units. Developer shall develop the Resort Hotel on the Resort Hotel Parcel. "Resort Hotel Parcel" means that certain real property designated as Lot 3 on the Parcel Map. The Resort Hotel Parcel is comprised of approximately 19.65 acres. 882/015610-0084 -7- 737414.05 a12/01/06 DRAFT "Resort Retail Village Development" means the component of the Project that consists of Developer's construction and subsequent operation of approximately eighty-one thousand square feet (81,000 sf) of space, with approximately forty thousand square feet (40,000 sf) of such space developed for and dedicated to retail uses, fifteen thousand square feet (15,000 sf) of such space developed for and designated to restaurant use, and twelve thousand square feet (12,000 sf) of such space to be developed for and dedicated to residential uses, all as further described in the Scope of Development and Specific Plan. Developer shall develop the Resort Retail Village Development on the Resort Retail Village Parcel. "Resort Retail Village Parcel" means that certain real property designated as Lot 5 on the Parcel Map. The Resort Retail Village Parcel is comprised of approximately 11.88 acres. "Resort Retail Village Parcel Ground Lease" means the form of ground lease pursuant to which (i) the Agency contemplates leasing to Developer the Resort Retail Village Parcel and then the Agency conveys its fee interests in such Parcel to the City, which would become the lessor; or (ii) the Agency contemplates leasing to Developer the Resort Retail Village Parcel if the Agency elects not to convey its interests in such Parcel to the City but instead elects to enter into the Resort Retail Village Parcel Ground Lease with Developer and to subsequently assign its interests in said ground lease to the City. As further provided herein, nothing herein shall be deemed a predetermination by Agency with respect to the Resort Retail Village Parcel, and Agency retains complete and unfettered discretion to elect either of the options set forth in clauses (i) and (ii) above or, alternatively, to sell such Parcel to Developer. The form of the Resort Retail Village Parcel Lease shall be acceptable to the Agency in the Agency's sole and absolute discretion. "Schedule of Performance" means the Schedule of Performance attached hereto and incorporated herein as Attachment No. 9, setting out the dates and/or time periods by which certain obligations set forth in this Agreement must be accomplished. "Scope of Development" means the Scope of Development attached hereto and incorporated herein as Attachment No. 51 which describes the scope, amount and quality of development of the Project to be constructed by the Developer pursuant to the terms and conditions of this Agreement. "SilverRock Resort Area" means the real property included in and covered by the Specific Plan. "Site Map" means the map of the Property, which is attached hereto as Attachment No. 2 and incorporated herein by this reference. "Specific Plan" means the SilverRock Resort Specific Plan, which was approved by the City Council of the City on July 18, 2006. Developer's development and operation of the Project shall be in strict conformance with the Specific Plan. In the event this Agreement is inconsistent with the Specific Plan, the terms of the Specific Plan shall prevail. 46Title Company" is defined in Section 203 hereof. "Title Policy" is defined in Section 204 hereof. r 882/015610-0084 737414.05 al2/01/06 DRAFT "Transfer" is defined in Section 703.1 hereof. "Unit" means one of the approximately six hundred eighty (680) guest units comprising the Project. All Units shall be developed as Condominium Hotel Units, Fractional Units, and/or Hotel Units, and all such development shall be in accordance with the requirements of the Specific Plan. "Updated Report" means an update to the Preliminary Title Report, as described in Section 203 hereof. 200. CONVEYANCE OF THE PROPERTY 201. Disposition of the Property. Developer agrees to purchase the Property from the Agency, and the Agency agrees to sell to the Developer the Property, in accordance with and subject to all of the terms, covenants, and conditions of this Agreement. The purchase price for each of the individual Parcels is set forth in Attachment No. 3 hereof (each, a "Purchase Price"). Each such Purchase Price represents the fair market value of the Parcel. Developer shall be entitled to purchase the Parcels, and commence construction thereon of the applicable Phase of Development, in the order set forth in this Section 201; provided, however, that nothing herein is intended to permit Developer to elect not to purchase any or all of the Parcels. Notwithstanding anything herein to the contrary, each conveyance by Agency to Developer of one or more Parcels shall be effected through an escrow ("Escrow") in accordance with the provisions of Section 202 hereto. With the exception of the "Initial Escrow" (as that term is described in paragraph (a) below), which shall be opened within the time set forth in the Schedule of Performance, each such Escrow shall be opened within the time reasonably required to affect each applicable conveyance, as set forth in the Schedule of Performance. 201.1 The Initial Escrow. Within the time set forth in the Schedule of Performance, Developer and Agency shall open an escrow for Agency's conveyance to Developer of the Boutique Hotel Parcel and the Ranch Villas Parcel (the "Initial Escrow"). Notwithstanding the use of the term "Initial Escrow" in this Section 201.1, all of the general requirements for each Escrow, as set forth in Section 202, shall apply to the Initial Escrow, and each reference to an "Escrow" in this Agreement shall be deemed to include the Initial Escrow. 201.2 The Second Escrow. Upon Developer's (i) completion and opening of, and receipt of a temporary or permanent certificate of occupancy for, the core operating facilities of the Boutique Hotel, including, without limitation, the lobby, guest check -in area and facilities, administration, restaurant, and pool; and (ii) completion of (including furnishings), and receipt of a temporary or permanent certificate of occupancy for, fifty percent (50%) of the Units to be developed in the Boutique Hotel and fifty percent (50%) of the Units to be developed in the Ranch Villas Development, with all of such completed Units operational and made available for rental, all as determined by City's Community Development Director and Director of Building and Safety, Developer shall have the right to purchase the Resort Hotel Parcel, the Black Box Parcel, and the Resort Retail Village Parcel. The obligations set forth in clauses (i), (ii), and (iii) above shall be collectively referred to as "Phase One of Boutique Hotel." 882/015610-0084 -9_ 737414 05 a12/01/06 J DRAFT Notwithstanding anything to the contrary in this Agreement, (x) Agency's Board of Directors may, in its sole and absolute discretion, elect to (a) convey the Resort Retail Village Parcel to the City for the City's subsequent lease of such Parcel to Developer, or (b) lease such Parcel to Developer and subsequently assign its leasehold interests to the City; and (y) Developer shall acquire fee title to or a leasehold interest in (as applicable) the Resort Retail Village Parcel within one (1) year after Developer's acquisition of the Resort Hotel Parcel.. In the event Agency elects to lease the Resort Retail Village Parcel to Developer or to convey such Parcel to the City, such lease or conveyance shall occur at the same time designated in this Section 201.2 for the Agency's conveyance of the Resort Retail Village Parcel to Developer. The terms of the Resort Retail Village Parcel Ground Lease shall govern the leasehold transaction between the City and Developer or between the Agency and Developer (as applicable). 201.3 The Third Escrow. Upon Developer's (i) acquisition of the Boutique Hotel Parcel, the Ranch Villas Parcel, the Resort Hotel Parcel, and the Resort Retail Village Parcel; (ii) satisfaction of all of the requirements of the Initial Escrow, as set forth in Section 201.1 above; (iii) completion of Phase One of Boutique Hotel, as set forth in Section 201.2 above; and (iv) completion of the second floor deck structure at the Resort Hotel, all as determined by City's Community Development Director and Director of Building and Safety, Developer shall have the right to purchase the Lake Casitas Parcel. Notwithstanding anything to the contrary in this Agreement, no certificate of occupancy shall be issued for any Unit in the Lake Casitas Development until the certificate of occupancy for the core operating facilities of the Resort Hotel, including, without limitation, the lobby, guest check -in area and facilities administration, restaurant, and pool has been issued. 201.4 The Fourth Escrow. Upon Developer's (i) acquisition of the Lake Casitas Parcel; (ii) satisfaction of the requirements for the Initial Escrow, as set forth in Section 201.1 and Section 201.3 above; (iii) completion of Phase One of Boutique Hotel, as set forth in Section 201.2 above; (iv) completion and opening of, and receipt of a temporary or permanent certificate of occupancy for, the core operating facilities of the Resort Hotel, including, without limitation, the lobby, guest check -in area and facilities, administration, restaurant, and pool; and (v) completion of, and receipt of a temporary or permanent certificate of occupancy for, fifty percent (50%) of the Units to be developed in the Resort Hotel and fifty percent (50%) of the Units to be developed in the Lake Casitas Development with all of such completed Units operational and made available for rental, Developer shall have the right to purchase the Golf Casitas Parcel. The obligations set forth in clauses (iv) and (vi) above shall be collectively referred to as "Phase One of Resort Hotel." Notwithstanding any of the foregoing, (a) Agency's Executive Director shall have the authority, in its sole and absolute discretion, to permit Developer to purchase any or all of the Resort Hotel Parcel, Lake Casitas Parcel, and the Golf Casitas Parcel at any time if Agency's Executive Director determines that Developer has the necessary financial resources to develop such Phase(s) of Development earlier than scheduled, and that permitting such early acquisition is in the best interests of the Agency and the Project; and (b) in the event Developer has not acquired the Ranch Villas Parcel solely as a result of a failure to satisfy the requirement set forth in Section 205.1(o), all of the requirements in this Section 201 pertaining to the acquisition and development of the Ranch Villas Parcel shall be waived until such time as the requirement set forth in Section 205.1(o) has been satisfied, or waived by the Agency. 882/015610-0084 -10- 737414.05 al2/01/06 DRAFT 202. Escrow. The parties shall open each Escrow with First American Title Company, at its office located at 3625 Fourteenth Street, Riverside, California 92502-0986, or another escrow company mutually satisfactory to both parties (the "Escrow Agent"). 202.1 Costs of Escrow. (i) Agency shall pay the premium attributable to the CLTA standard form policy of title insurance for the Property or the applicable Parcel(s), as set forth in Section 204 hereof, (ii) Developer shall pay for any extended policy, coverages, or endorsements requested by Developer, as set forth in Section 204 hereof, (iii) Developer shall pay for the documentary transfer taxes, if any, due with respect to the conveyance of the Property or said Parcel(s), as applicable, (iv) Developer shall pay all recording fees, and (v) Developer and Agency each agree to pay one-half of all other usual fees, charges, and costs which arise from the Escrow. 202.2 Payment of Purchase Price. On or before 5:00 p.m. on the business day preceding the applicable Closing Date (or such earlier time as required by Escrow) for a Parcel, Developer shall deposit with Escrow Agent the applicable Purchase Price in Good Funds, and such additional funds as may be required to meet Developer's portion of the closing costs as hereinafter provided; provided, however, that if Agency elects to lease the Resort Retail Village Parcel to Developer or to City rather than selling such Parcel to Developer, Developer shall not be required to pay to Agency the Purchase Price for the Resort Retail Village Parcel. In that event, Developer's financial obligations with respect to acquiring a leasehold interest in and to such Parcel shall be to pay to City or Agency (as applicable) any and all sums required under the Resort Retail Village Parcel Ground Lease. Notwithstanding that the "Closing" for the Resort Retail Village Parcel may not result in a fee conveyance to Developer, such "Closing" shall not occur until all of Agency's Conditions Precedent to the Closing and Developer's Conditions Precedent to the Closing as set forth in Section 205 have been satisfied or waived by the respective parties. 202.3 Escrow Instructions. This Agreement constitutes the joint escrow instructions of Developer and Agency for each Escrow described herein, and the Escrow Agent to whom instructions are delivered is hereby empowered to act under this Agreement. Insurance policies for fire or casualty are not to be transferred, and Agency will cancel its own policies after the applicable Closing. All funds received in the Escrow shall be deposited with other escrow funds in a general escrow account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by check from such account. If in the opinion of either party and/or the construction lender it is necessary or convenient in order to accomplish the Closing of the Property, or of any of the Parcels, such party may require that the parties sign supplemental escrow instructions; provided that if there is any inconsistency between this Agreement and the supplemental escrow instructions, then the provisions of this Agreement shall control. The parties agree to execute such other and further documents as may be reasonably necessary, helpful or appropriate to effectuate the provisions of this Agreement. Each Closing hereunder shall take place within thirty (30) days after the date when both the Agency's Conditions Precedent to the Closing and the Developer's Conditions Precedent to the Closing as set forth in Section 205 have been satisfied or waived by the 882/015610-0084 -11- 737414.05 a12/01/06 DRAFT respective parties. Escrow Agent is instructed to release Agency's escrow closing and Developer's escrow closing statements to the respective parties. 202.4 Authority of Escrow Agent. At each Closing, Escrow Agent is authorized to, and shall: (a) Pay and charge Developer and Agency for their respective shares of the premium of the applicable Title Policy and any endorsements thereto as set forth in Section 204 and any amount necessary to place title in the condition necessary to satisfy Section 203 of this Agreement. (b) Pay and charge Developer and Agency for their respective shares of any escrow fees, charges, and costs payable under Section 202.1 of this Agreement. (c) Disburse funds, deliver one or more executed Option Agreement(s) to the Agency, and deliver and record the applicable Grant Deed(s) and the applicable Option Agreement(s) when both the Developer's Conditions Precedent to the Closing and the Agency's Conditions Precedent to the Closing have been fulfilled or waived by Developer and Agency. (d) At the Closing for the Initial Escrow only, deliver the executed Development Agreement and Memorandum to the Agency, and deliver and record the Development Agreement and Memorandum when both the Developer's Conditions Precedent to the Closing and the Agency's Conditions Precedent to the Closing have been fulfilled or waived by Developer and Agency. (e) Do such other actions as necessary, including obtaining the applicable Title Policy, to fulfill its obligations under this Agreement. (f) Within the discretion of Escrow Agent, direct Agency and Developer to execute and deliver any instrument, affidavit and statement, and to perform any act reasonably necessary to comply with the provisions of the Foreign Investment in Real Property Transactions Act ("FIRPTA") and any similar state act and regulation promulgated thereunder. Agency agrees to execute a Certificate of Non -Foreign Status by individual transferor and/or a Certification of Compliance with Real Estate Reporting Requirement of the 1986 Tax Reform Act as may be required by Escrow Agent, on the form to be supplied by Escrow Agent. (g) Prepare and file with all appropriate governmental or taxing authorities a uniform settlement statement, closing statement, tax withholding forms including an IRS 1099-5 form, and be responsible for withholding taxes, if any such forms are provided for or required by law. 202.5 Closin . Each transaction shall close ("Closing") within thirty (30) days after the parties' satisfaction of all of Agency's Conditions Precedent to the Closing and all of the Developer's Conditions Precedent to the Closing as set forth in Section 205 hereof, but in no event later than the applicable Outside Date for Closing, which is set forth in the Schedule of Performance for the applicable Phase of Development. The Outside Date for Closing for each Parcel, may be extended for up to six (6) months, by mutual agreement of the Executive Director of the Agency and Developer. Subject to the provisions in this Section 202.5, Closing shall 53 882/015610-0084 -12- 737414.05 a12/01106 DRAFT occur at a time reasonably agreed on by the parties. A "Closing" shall mean the time and day the applicable Grant Deed(s) is recorded with the Riverside County Recorder. A "Closing Date" shall mean the day on which the applicable Closing occurs. 202.6 Termination. If an Escrow is not in condition to close by the applicable Outside Date for Closing, then either party which has fully performed under this Agreement may, in writing, demand the return of money or property and terminate such Escrow. If either party makes a written demand for return of documents or properties, the Escrow shall not terminate until ten (10) business days after Escrow Agent shall have delivered copies of such demand to all other parties at the respective addresses shown in this Agreement. If any objections are raised within said ten (10) business day period, Escrow Agent is authorized to hold all papers and documents until instructed by a court of competent jurisdiction or by mutual written instructions of the parties. Developer, however, shall have the sole option to withdraw any money deposited by it with respect to the Closing less Developer's share of costs of the Escrow and cancellation fees. Termination of said Escrow shall be without prejudice as to whatever legal rights either party may have against the other arising from this Agreement. If no demands are made, the Escrow Agent shall proceed with the applicable Closing as soon as possible. 202.7 Closing Procedure. Escrow Agent shall close each Escrow as follows: (a) (i) Record, in the following order, the applicable Grant Deed(s), the applicable Option Agreement(s), the applicable City Declaration of CC&Rs, at the Initial Escrow only, the Memorandum of DDA, the applicable Maintenance Agreement, the applicable Water Agreement, and deeds of trust and other security instruments securing Developer's acquisition and construction financing, and (ii) deliver copies of each of the documents listed in clauses (i) above, showing recording information to Agency and Developer; (b) Deliver the Option Agreement(s) City Declaration of CC&Rs, Maintenance Agreement, Water Agreement, and, at the Initial Escrow only, the Memorandum of DDA, to the Agency and a copy to Developer; (c) Deliver the applicable Title Policy and Grant Deed(s) to Developer, (d) File any informational reports required by Internal Revenue Code Section 6045(e), as amended and any other applicable requirements; and (e) Deliver the FIRPTA Certificate, if any, to Developer; and (f) Forward to both Developer and Agency a separate accounting of all funds received and disbursed for each party and copies of all executed and recorded or filed documents deposited into the Escrow, with such recording and filing date and information endorsed thereon. 203. Review of Title of Property. The Agency shall cause First American Title Insurance Company, or another title company mutually agreeable to both parties (the "Title Company"), to deliver to Developer a standard preliminary title report dated no earlier than the 882/015610-0084 -13- 737414.05 a12/01/06 ` DRAFT Effective Date (the "Preliminary Title Report") with respect to the title to the Property, together with legible copies of the documents underlying the exceptions ("Property Exceptions") set forth in the Preliminary Title Report, within thirty (30) days after the Effective Date. The Developer shall have the right to approve or disapprove the Property Exceptions and any proposed encumbrances to the Property in the exercise of its sole discretion; provided, however, that the Developer hereby approves the following Property Exceptions: (a) The Redevelopment Plan. (b) The lien of any non -delinquent property taxes and assessments (to be prorated at close of each respective Escrow. (c) All documents to be recorded at the close of the applicable Escrow. Developer shall have thirty (30) days after the later of (i) the date of its receipt of the Preliminary Title Report, or (ii) the date Developer receives the documents underlying the Property Exceptions to give written notice to Agency and Escrow Holder of Developer's approval or disapproval of any of such Property Exceptions. Developer's failure to give written approval of the Preliminary Title Report within such time limit shall be deemed disapproval of the Preliminary Title Report. If Developer notifies Agency of its disapproval of any Property Exceptions in the Preliminary Title Report or is deemed to have disapproved the Preliminary Title Report, Agency shall have the right, but not the obligation, to remove any disapproved Property Exceptions within thirty (30) days after (a) receiving written notice of Developer's disapproval or (b) the date Developer is deemed to have disapproved the Preliminary Title Report, or provide assurances satisfactory to Developer that such Property Exception(s) will be removed on or before the applicable Closing. If Agency cannot or does not agree to remove any of the disapproved Property Exceptions before the applicable Closing, Developer shall have fifteen (15) days after the expiration of such thirty (30) day period to either give the Agency written notice that Developer elects to proceed with the purchase of the Property subject to the disapproved Property Exceptions or to give the Agency written notice that the Developer elects to terminate this Agreement. Developer's failure to give written notice of its election within such fifteen (15) day period shall be deemed to be an election not to proceed with the purchase of the Property. Anything herein to the contrary notwithstanding, Agency shall remove from title all monetary encumbrances other than the lien referred to in (b) above in this Section 203. The condition of title, including all of the Property Exceptions to title approved by Developer as provided herein shall hereinafter be referred to as the "Condition of Property Title". From and after the Effective Date hereof, and continuing until the earlier of (i) the Close of Escrow for the last portion of the Property Developer intends to acquire from Agency, or (ii) termination of this Agreement, Agency shall not further encumber the Property with additional Property Exceptions without the Developer's prior written consent; provided, however, that Agency's election to convey the Resort Retail Village Parcel to the City shall not be construed as a Property Exception and shall be expressly permitted hereunder. Developer shall have the right to approve or disapprove any further Property Exceptions (which are not created by Developer) reported by the Title Company after Developer has approved the Condition of Property Title. Developer and the Executive Director of the Agency, on behalf of the Agency, shall have the authority to extend the foregoing fifteen (15) day period by written agreement for an additional fifteen (15) days. 982/015610-0084 -14- 737414 05 a12/01/06 DRAFT 204. Title Insurance. Concurrently with recordation of the applicable Grant Deed(s) conveying title to one or more of the Parcels, there shall be issued to Developer an ALTA owner's policy of title insurance (the "Title Policy"), together with such endorsements as are reasonably requested by the Developer, issued by the Title Company insuring that the title to the applicable Parcel is vested in Developer in the Condition of Property Title approved by Developer pursuant to Section 203 of this Agreement (except that such Title Policy shall only reflect the'applicable Parcel and the Property Exceptions applicable thereto). Agency shall pay the title insurance premium attributable to the ALTA owner's form policy of title insurance up to the Purchase Price for the applicable Parcel. The Title Company shall, if requested by Developer, increase the amount of the title insurance policy or provide the Developer with an extended policy, coverages, or endorsements. Developer shall pay the portion of the premium associated with such extended or additional coverages or endorsements, and the costs of preparation of a current survey of the Property, if requested by Developer. The Title Company shall provide the Agency with a copy of the Title Policy. 205. Conditions of Closing. Each Closing is conditioned upon the satisfaction of the following terns and conditions within the times designated below: 205.1 Agency's Conditions of Closing. Agency's obligation to proceed with each Closing is subject to the fulfillment or waiver by Agency of each and all of the conditions precedent (a) through (w), inclusive, described below ("Agency's Conditions Precedent to the Closing"), which are solely for the benefit of Agency, and which shall be fulfilled or waived by the time periods provided for herein: (a) No Default. Prior to the close of each Escrow, neither Developer nor any entity that has assumed the Developer's or DHR's obligations hereunder with respect to the development and/or operation of one or more Phases of Development shall be in default of any of its obligations under the terms of this Agreement with respect to said Escrow and all representations and warranties of Developer contained herein shall be true and correct in all material respects. (b) Execution of Documents. Developer shall have executed and delivered into the Escrow the applicable Grant Deed(s), the applicable Option Agreement(s), the applicable City Declaration of CC&Rs, the applicable Maintenance Agreement, the applicable Water Agreement, and any other documents required hereunder, and, at the Initial Escrow only, the Memorandum of DDA. The Development Agreement shall have been fully executed and recorded in the Official Records of Riverside County. (c) Payment of Funds. Prior to each Closing, Developer shall have paid all of its required costs of the Closing into the applicable Escrow in accordance with Section 202 hereof. (d) Design Approvals. Developer shall have obtained approval by the City of the Design/Construction Development Drawings for the Phase of Development applicable to each Parcel to be acquired at the Closing, as set forth in Section 302 hereof. 882/015610-0084 -15- 737414.05 a12/01/06 DRAFT (e) Phasing Requirements. All of the conditions and requirements described in Section 201.2, 201.3, and 201.4 that are applicable to the Escrow have been satisfied. (fj City Declaration of CC&Rs. Prior to each Closing that includes a Parcel that will be developed with Condominium Hotel Units and/or Fractional Units, Developer shall have entered into with the City and recorded against the underlying Parcel a City Declaration of CC&Rs, the covenants of which shall bind the Parcel and each and every Condominium Hotel Unit, Fractional Unit, and Hotel Unit developed thereon in perpetuity and shall survive the termination of this Agreement and of the Development Agreement. (g) Land Use Approvals. Developer shall have received all Land Use Approvals required for the Phase of Development applicable to each Parcel to be acquired at the Closing, pursuant to Section 302.5 hereof. (h) Insurance. Developer shall have provided proof of insurance as required by Section 304 hereof and Agency shall have approved of the same. (i) Financing. The Agency shall have approved Developer's financing for the Phase of Development applicable to each Parcel to be acquired at the Closing, pursuant to Section 309.1 hereof, and such financing shall close concurrently with the Closing and be available to the Developer upon the Closing. 0) Environmental. The Developer shall have approved the environmental condition of the Property and shall not have elected to terminate this Agreement with respect to the Property pursuant to Section 207.2 hereof. (k) Grading Plans and Permits. Developer shall have obtained City approval of its precise grading plans for the Phase of Development applicable to each Parcel to be acquired at the Closing, and grading permits shall be ready to be issued (on payment of necessary fees, posting of required security, and similar items). (1) Building Plans and Permits. Developer shall have obtained City approval of its building plans for the Phase of Development applicable to each Parcel to be acquired at the Closing, and building permits shall be ready to be issued (on payment of necessary fees, posting of required security, and similar items). (m) Construction Costs and Contract. The Developer shall have provided the Agency's housing and economic development consultant, or such other person as the Executive Director may designate, a copy of the proposed contract, certified by the Developer to be a true and correct copy thereof, between the Developer and one or more duly licensed general contractors reasonably acceptable to the Agency for the construction of the Phase of Development applicable to each Parcel to be acquired at the Closing. Such proposed contract shall provide for the complete development of the Phase of Development. No material changes shall have been made to such proposed contract without the prior approval of the Agency's housing and economic development consultant or the Executive Manager's designee. 882/015610-0084 -16- 737414.05 a12/01/06 DRAFT (n) Performance Bond. The Developer shall have obtained from each subcontractor whose work on a Phase of Development (in the aggregate) will cost $500,000 or more, and delivered to the Agency evidence, in a form satisfactory to Agency, that said subcontractor has obtained lien and completion Contractor Bonds for the completion of such contractor's work in the construction of the Phase of Development applicable to each Parcel to be acquired at the Closing. Said Contractor Bonds shall provide that the Agency is authorized to enforce the same as a third party beneficiary. (o) Permanent Clubhouse. For the Escrow that includes the Ranch Villas Parcel only, the City shall have completed and opened a permanent clubhouse in the SilverRock Resort Area and determined, in its sole and absolute discretion, that the Ranch Villas Parcel is not necessary for any Golf Course related purpose.. (p) Operating Agreement. Developer shall have submitted to Agency and Agency shall have approved, an operating agreement with DHR that obligates DHR to operate the Phase of Development at a Four Star Quality or higher, and in accordance with all applicable requirements set forth herein and in the Development Agreement (an "Operating Agreement") (applicable only to Escrows that include the Boutique Hotel Parcel, Ranch Villas Parcel, Resort Hotel Parcel, Lake Casitas Parcel, and/or Golf Casitas Parcel). (q) Deposit Payments. Developer shall have deposited into Escrow all Deposit Payments then due. (r) Water Agreement. Developer shall have entered into a standard Domestic Water and/or Sanitation Installation Agreement with the Coachella Valley Water District ("CVWD"), substantially in the form attached as Exhibit C to that certain Domestic Water and Sanitation System Installation and Irrigation Service Agreement entered into by and between the City and CVWD on or about June 11, 2005, and recorded in the Official Records of the County of Riverside, as Instrument No. 2005-0852063, on June 14, 2005. (s) Completion Guarantee. Lowe Enterprises has executed a completion guarantee in substantially the form and substance of the completion guarantee provided to Developer's construction lender, in favor of the Agency, for the lien -free completion of construction of the improvements in the applicable Phase of Development for the Project. (t) Maintenance Agreement. Developer shall have entered into a maintenance agreement with the City or Agency regarding maintenance of certain portions of the golf course lakes located or to be located adjacent to the property and certain landscaped parkways, sidewalks, and trails (collectively, the "Public Improvements") all as depicted on Attachment No. 13 hereof which is attached hereto and incorporated herein by this reference (each, a "Maintenance Agreement"). At all Closings subsequent to the Closing for the Boutique Hotel Parcel, the Maintenance Agreement shall be substantially in the form of the Maintenance Agreement executed and recorded at the Closing for the Boutique Hotel. (u) Signage Agreement. Developer shall have entered into with the City or the Agency (as applicable) a signage agreement (applicable only to the Closings for the Boutique Hotel Parcel, Resort Hotel Parcel, and Resort Retail Village Parcel). Notwithstanding 882/015610-0084 -17- 737414.05 a12/01/06 DRAFT other signage locations to be determined during the site development permit process, the signage agreement for the Boutique Hotel Parcel shall provide for signage along Avenue 52, at the entry point to said Phase of Development, the signage agreement for the Resort Hotel Parcel shall provide for signage on Jefferson Street, at the Resort Hotel entry point; the signage agreement for the Resort Retail Village Parcel shall provide for signage at the corner of Avenue 52 and Jefferson Street, Avenue 54 and Jefferson Street, and Avenue 54, at the entry into SilverRock. (v) Parcel Man. Agency shall have recorded or shall, concurrently with the Closing for the Initial Escrow, record the Parcel Map in the Official Records of Riverside County. (w) Compatibility. Developer shall have delivered to Agency written acknowledgement that the Project is compatible with other development within the Parcel Map. 205.2 Final Phasing Plan. Developer shall have submitted to Agency's Executive Director and obtained approval therefrom of a final phasing plan for the Phase(s) of Development to be constructed on the Parcel(s) to be conveyed pursuant to the Escrow. 205.3 Developer's Conditions of Closine. Developer's obligation to proceed with the purchase of each Parcel is subject to the fulfillment or waiver by Developer of each and all of the conditions precedent (a) through 6), inclusive, described below ("Developer's Conditions Precedent to the Closing"), which are solely for the benefit of Developer, and which shall be fulfilled or waived by the time periods provided for herein: (a) No Default. Prior to the applicable Closing, Agency shall not be in default of any of its obligations under the terms of this Agreement and all representations and warranties of Agency contained herein shall be true and correct in all material respects. (b) Execution of Documents. Agency shall have executed and delivered into Escrow, the applicable Grant Deed(s), the applicable Option Agreement(s), the applicable City Declaration of CC&Rs, the applicable Maintenance Agreement, and any other documents required hereunder, and at the Initial Escrow only, the Memorandum of DDA. The Development Agreement shall have been fully executed and recorded in the Official Records of Riverside County. (c) Review and Approval of Title. Developer shall have reviewed and approved the Condition of Property Title, as provided in Section 203 hereof. (d) Title Policv. The Title Company shall, upon payment of Title Company's regularly scheduled premium, have agreed to provide to the Developer a Title Policy at the applicable Closing, in accordance with Section 204 hereof. (e) Environmental. The Developer shall have approved the environmental condition of the Property and shall not have elected to terminate this Agreement with respect to the Property pursuant to Section 207.2 hereof. 03 882/015610-0084 _18_ 737414.05 a12/01/06 DRAFT (f) Design Approvals. Developer shall have obtained approval by the City of the Design/Construction Development Drawings for the Phase of Development applicable to each Parcel to be acquired at the Closing, as set forth in Section 302 hereof. (g) Land Use Approvals. Developer shall have received all Land Use Approvals required for the Phase of Development applicable to each Parcel to be acquired at the Closing, pursuant to Section 302.5 hereof. (h) Grading and Building Permits. All grading and building permits required for the construction of the Phase of Development applicable to each Parcel to be acquired at the Closing shall be available for issuance upon the payment of applicable permit fees, posting of required security, and similar items. (i) Financing. As provided in Section 311.1 hereof, Developer shall have obtained and the Agency shall have approved Developer's financing for the Phase of Development applicable to each Parcel to be acquired at the Closing, and such financing shall close and be available to the Developer upon the applicable Closing. 0) Parcel Man. Agency shall have recorded or shall, concurrently with the Closing for the Initial Escrow, record the Parcel Map in the Official Records of Riverside County. 206. Studies and Reports. 206.1 Access to Property. Prior to the Closing for the Initial Escrow, Agency shall provide representatives of Developer the right of access to all portions of the Property for the purpose of obtaining data and making surveys and tests necessary to carry out this Agreement, including without limitation the investigation of the environmental condition of the Property pursuant to Section 207 hereof. Any preliminary work undertaken on the Property by Developer prior to the Closing for the Initial Escrow shall be done at the sole expense of the Developer. In no event shall Developer conduct any intrusive testing procedures on the Property without the prior written consent of Agency, which consent shall not be unreasonably withheld. Developer shall also have the right to investigate all matters relating to the zoning, use and compliance with other applicable laws, codes, and ordinances which relate to the use and occupancy of the Property. Agency shall cooperate to assist Developer in completing such inspections and special investigations at no cost or expense to Agency other than the time of Agency's personnel and incidental photocopying and like costs. Such inspections and investigations shall be conducted only (a) upon no less than forty-eight (48) hours' notice to Agency, (b) between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, and (c) but only at such times and in such a manner as to minimize any disruption to the Property. Agency shall have the right, but not the obligation, to accompany Developer during such investigations and/or inspections. As a condition to any such entry, Developer shall (i) conduct all work or studies in a diligent, expeditious and safe manner and not allow any dangerous or hazardous conditions to occur on the Property during or after such investigation; (ii) comply with all applicable laws and governmental regulations; (iii) keep the Property free and clear of all materialmen's liens, lis pendens and other liens arising out of the entry and work performed under this paragraph; (iv) maintain or assure maintenance of workers' compensation insurance 882/0156IM084 -19- 737414.05 al2/01/06 DRAFT (or state approved self-insurance) on all persons entering the property in the amounts required by the State of California; (v) provide to Agency prior to initial entry a certificate of insurance evidencing that Developer and/or the persons entering the Property have procured and have in effect the insurance required by Section 306; and (vi) repair any damage it causes to the Property during the course of such investigations and/or inspections, as such damage occurs, and restore the Property to the condition existing prior to the investigations and/or inspections, including, without limitation, restabilizing any portions of the Property on which Developer's work removed or caused the removal of the soil stabilizer present on the Property, to the satisfaction. Any work undertaken pursuant to this Section 206 shall be undertaken only after securing any necessary permits from the appropriate governmental agencies. The Developer's approval of the environmental and soils condition of the Property shall be a Developer's Condition Precedent to the Closing, as set forth in Section 205.2 hereof. If the Developer, based upon the above tests, reports, and review, disapproves the environmental or soils condition of the Property, in its sole and absolute discretion, then the Developer may (x) at its sole cost and with prior written approval of the Agency of any remediation proposal, remediate the Property, or any specific contaminated portion thereof, to an acceptable condition, or (y) terminate this Agreement by written Notice to the Agency pursuant to Section 603 hereof. From and after the Effective Date hereof, and continuing until the earlier of (1) the Close of Escrow for the last portion of the Property Developer intends to acquire from Agency, or (2) termination of this Agreement, Agency shall not take any affirmative action to affect the condition of the Property without the Developer's prior written consent. Agency may revoke the foregoing right of access upon two (2) days written notice to Developer delivered in accordance with Section 701 below in the event: (I) in the reasonable judgment of Agency, such revocation is necessary to protect the public health, safety, or welfare pursuant to the exercise of Agency's police powers; or (II) Developer is in violation of the terms of this Agreement or any applicable law, statute, ordinance, rule, or regulation pertaining to the preliminary work permitted hereunder or Developer's or the Developer Representative's entry upon the Property pursuant to this Agreement, and Developer has failed to cure such violation within two (2) days following Developer's receipt of written notice of such violation from Agency. 206.2 Indemnification. Developer shall protect, defend, indemnify and hold harmless Agency and City and Agency's and City's respective officers, officials, members, employees, agents, and representatives (any of the foregoing shall be known individually as "Indemnitee" and collectively as "Indemnitees"), and each of them, jointly and severally, against and from any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity, of every kind or nature whatsoever, including attorneys' fees and expert witness fees, but excluding those resulting from environmental contamination of the Property or other defects on the Property existing prior to Developer's entry thereon or not otherwise caused by Developer or any of the Developer Representatives, but including, without limitation, injury to or death of any person or persons and damage to or destruction of any property, threatened, brought or instituted ("Claims"), arising out of or in any manner directly or indirectly connected with the entry upon the Property by Developer or any of the Developer Representatives pursuant to this Section or Section 207, below, including without limitation: (a) any damage to the Property and any liability to any third party incurred by reason of any acts or omission of, including, but not limited to, any commission of any negligent or tortious acts, by Developer or the Developer Representatives, or any of them; 882/015610-0084 _20_ y `� 737414.05 a12/01/06 DRAFT (b) any mechanics' or materialmen's liens, claims, demands, actions or suits arising (directly or indirectly) from (i) any work performed or materials supplied to or for Developer, or (ii) any activities of Developer or any of the Developer Representatives, or any of them, on or relating to the Property (including, without limitation, any claims by any of such Developer Representatives); and (c) any costs of removing Developer or the Developer Representatives from the Property after the expiration of the term hereof unless Developer is otherwise entitled to possession of the Property at such time. 207. Condition of the Property 207.1 Disclosure. The Agency shall, within the time set forth in the Schedule of Performance, provide to the Developer copies of any environmental studies and reports with respect to the Property of which it has actual knowledge, without any duty of investigation or inquiry. 207.2 Investigation of Property. Pursuant to Section 206 hereof, the Developer may engage an Environmental Consultant to make such investigations as Developer deems necessary, including any "Phase 1" and/or "Phase 2" investigations of the Property, and the Agency shall promptly be provided a copy of all final reports and test results provided by the Environmental Consultant (the "Property Environmental Reports"). The Developer shall be permitted to make such inspections of the Property pursuant to the requirements of Section 206. The Developer shall approve or disapprove of the environmental condition of the Property in the Developer's sole discretion, not later than thirty (30) days prior to the scheduled date for the Closing of the Initial Escrow. The Developer's approval of the environmental condition of the Property shall be one of Agency's Conditions Precedent to the Closing and one of Developer's Conditions Precedent to the Closing, as set forth in Section 205 hereof. If the Developer, based upon the Property Environmental Reports, disapproves the environmental condition of the Property for any reason, in the Developer's sole discretion, then the Developer may (i) at its sole cost and with prior written approval of the Agency of any remediation proposal, remediate the Property, or any specific contaminated portion thereof, to an acceptable condition, or (ii) terminate this Agreement by written Notice to the Agency pursuant to Section 603 hereof. 207.3 No Further Warranties As To Property Release of Agency. The physical condition, possession, and title of the Property is and shall be delivered from Agency to Developer in an "AS -IS" "WHERE IS" "WITH ALL FAULTS" condition, with no warranty expressed or implied by Agency, including without limitation, the presence of Hazardous Materials or the condition of the soil, its geology, the presence of known or unknown seismic faults, or the suitability of the Property for the development purposes intended hereunder. Upon the Agency's conveyance of fee title to each Parcel comprising the Property to Developer, Developer shall be deemed to have waived, released and discharged forever the Agency and the City, and their employees, officers, agents, members and representatives, from all present and future claims, demands, suits, legal and administrative proceedings and from all liability for damages, losses, costs, liabilities, fees and expenses, present and future, arising out of or in any way connected with the condition of such Parcel, any Hazardous Materials on the 892/015610-0084 -21 737414.05 a]2/01/06 DRAFT Parcel, or the existence of Hazardous Materials contamination due to the generation of Hazardous Materials from the Parcel or any other real property, however they came to be placed there, except that arising out of the sole negligence or intentional misconduct of the Agency, the City, or their employees, officers, agents or representatives. The Developer acknowledges that it is aware of and familiar with the provisions of Section 1542 of the California Civil Code which provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." Only with respect to the condition of the Property as set forth in this Section 207.31 the Developer hereby waives and relinquishes all rights and benefits which it may have under Section 1542 of the California Civil Code. Developer's Initials Notwithstanding anything herein to the contrary, the release set forth in this Section 207.3 shall become effective as to the individual Parcels comprising the Property on the date Developer acquires fee title to each of said Parcel(s). 207.4 Developer Precautions After the Closing. Upon the Closing for the one or more Parcels, the Developer shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials which are located in, on or under such Parcels, or placed in, on, or under such Parcel(s) after the Close of Escrow for such Parcel(s). Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, the Developer shall install and utilize such equipment and implement and adhere to such procedures as are consistent with commercially reasonable standards as respects the disclosure, storage, use, removal and disposal of Hazardous Materials. 207.5 Developer Indemnity. Upon the Closing for one or more Parcels, Developer agrees to indemnify, defend and hold Agency harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in, or about, or the transportation of any such Hazardous Materials to or from, the Parcel(s) which first occurs after the Closing for such Parcel(s), or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in, or about, or to or from, the applicable Parcel(s) by Developer or by Developer's contractors, subcontractors, agents, consultants, or representatives which occurs after the Closing for such Parcel(s). This indemnity shall include, without limitation, any damage, liability, fine, penalty, cost or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, 882/015610-OO84 -22- 737414.05 al2/01/06 DRAFT damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment. At the request of the Developer, the Agency shall cooperate with and assist the Developer in its defense of any such claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense; provided that the Agency shall not be obligated to incur any expense in connection with such cooperation or assistance. 208. Deposit Payments. Developer shall be required to deposit with Escrow Agent certain payments, to serve as a guarantee of Developer's commitment to develop the Project, in accordance with the schedule set forth in Section 208.1 below (individually, a "Deposit Payment," and collectively, the "Deposit Payments"). 208.1 Schedule of Payments (a) Initial Deposit Payment: Developer shall deposit Eight Hundred Twenty -Five Thousand Dollars ($825,000) (the "Initial Deposit Payment Date"), with Escrow Agent no later than the thirtieth (30`h) day after the Effective Date; (b) Second Deposit Payment: Developer shall deposit Eight Hundred Twenty -Five Thousand Dollars ($825,000) with Escrow Agent no later than the one (1) year anniversary of the Initial Deposit Payment Date; (c) Third Deposit Payment: Developer shall deposit Seven Hundred Thousand Dollars ($700,000) with Escrow Agent no later than the second (2"d) anniversary of the Initial Deposit Payment Date; (d) Fourth Deposit Payment: Developer shall deposit Seven Hundred Thousand Dollars ($700,000) with Escrow Agent no later than the third (P) anniversary of the Initial Deposit Payment Date; (e) Fifth Deposit Payment: Developer shall deposit Two Hundred Thousand Dollars ($200,000) with Escrow Agent no later than the fourth (4 ) anniversary of the Initial Deposit Payment Date. 208.2 Release of Deposit Payment Funds to Developer. Upon the written request of Developer that has been approved, in writing, by Agency, in Agency's reasonable discretion, Escrow Agent shall release portions of the funds comprising Deposit Payments, to the extent such payments have been made by Developer, to reimburse Developer for costs Developer incurs after the Effective Date for planning, designing, processing entitlements, and environmental review, including staff costs to the extent such costs do not comprise more than thirty-five percent (35%) of the requested disbursement, but not including legal fees and costs, that are related to the Project (the "Eligible Costs"), in accordance with the terms of this Section 208.2. (a) Boutique Hotel Portion of the Deposit Payments. Escrow Agent shall pay up to Five Hundred Thousand Dollars ($500,000) from the Initial Deposit Payment, and up to Five Hundred Thousand Dollars ($500,000) from the Second Deposit Payment to Developer to reimburse Developer for Eligible Costs related to the Boutique Hotel (the 882/015610-0084 -23- 737414.05 al2/01/06 FO::_1 "Boutique Hotel Portion of the Deposit Payments"). To the extent Escrow Holder has not paid to Developer all of the Boutique Hotel Portion of the Deposit Payments it has received, pursuant to the process set forth above by the Closing for the Boutique Hotel Parcel, all remaining portions thereof shall be applied towards the Purchase Price for the Boutique Hotel Parcel. (b) Ranch Villas Development Portion of the Deposit Payments. Escrow Agent shall pay up to Twenty -Five Thousand Dollars ($25,000) from the Initial Deposit Payment, and up to Twenty -Five Thousand Dollars ($25,000) from the Second Deposit Payment to Developer to reimburse Developer for Eligible Costs related to the Ranch Villas Development (the "Ranch Villas Development Portion of the Deposit Payments"). To the extent Escrow Holder has not paid to Developer all of the Ranch Villas Development Portion of the Deposit Payments it has received, pursuant to the process set forth above by the Closing for the Ranch Villas Parcel, all remaining portions thereof shall be applied towards the Purchase Price for the Ranch Villas Parcel (c) Resort Hotel and Lake Casitas Development Portion of the Deposit Payments. Escrow Agent shall pay up to Two Hundred Thousand Dollars ($200,000) from the Initial Deposit Payment, up to Two Hundred Thousand Dollars ($200,000) from the Second Deposit Payment, up to Four Hundred Thousand Dollars ($400,000) from the Third Deposit Payment, and up to the Four Hundred Thousand Dollars ($400,000) from the Fourth Deposit Payment, to Developer to reimburse Developer for Eligible Costs related to the Resort Hotel and the Lake Casitas Development (the "Resort Hotel and Lake Casitas Development Portion of the Deposit Payments"). To the extent Escrow Holder but has not paid to Developer all of the Resort Hotel and Lake Casitas Development Portion of the Deposit Payments it has received, pursuant to the process set forth above by the Closing for the Resort Hotel Parcel or the Lake Casitas Parcel (whichever occurs earlier), all remaining portions thereof shall be applied towards the Purchase Price for the Resort Hotel Parcel or Lake Casitas Parcel (as applicable). (d) Resort Retail Village Development Portion of the Deposit Payments. Escrow Agent shall pay up to Fifty Thousand Dollars ($50,000) from the Initial Deposit Payment, up to Seventy -Five Thousand Dollars ($75,000) from the Second Deposit Payment, up to One Hundred Fifty Thousand Dollars ($150,000) from the Third Deposit Payment, and up to the One Hundred Fifty Thousand Dollars ($150,000) from the Fourth Deposit Payment to Developer to reimburse Developer for Eligible Costs related to the Resort Retail Village Development (the "Resort Retail Village Development Portion of the Deposit Payments"). To the extent Escrow Holder has not paid to Developer all of the Resort Retail Village Development Portion of the Deposit Payments it has received, pursuant to the process set forth above by the time Developer is required to pay to City or Agency (as applicable) Developer's initial payment under the Resort Retail Village Parcel Ground Lease, then Escrow Agent shall pay to the City or Agency (as applicable) an amount of the remaining portions thereof to be applied to such initial lease payment. To the extent that any portions of the Resort Retail Village Development Portion of Deposit Payments remain after Developer's initial lease payment has been paid to the City or Agency (as applicable), Escrow Agent shall pay such remaining portions to Developer. (e) Golf Casitas Development Portion of the Deposit Payments. Escrow Agent shall pay up to Fifty Thousand Dollars ($50,000) from the Initial Deposit 882/015610-0084 -24- 737414.05 a12/01/06 DRAFT Payment, up to Twenty -Five Thousand Dollars ($25,000) from the Second Deposit Payment, up to One Hundred Thousand Dollars ($100,000) from the Third Deposit Payment, up to the One Hundred Thousand Dollars ($100,000) from the Fourth Deposit Payment, and up to Two Hundred Thousand Dollars ($200,000) from the Fifth Deposit Payment to Developer to reimburse Developer for Eligible Costs related to the Golf Casitas Development (the "Golf Casitas Development Portion of the Deposit Payments"). To the extent Escrow Holder has not paid to Developer all of the Golf Casitas Portion of the Deposit Payments it has received, pursuant to the process set forth above by the Closing for the Golf Casitas Parcel, all remaining portions thereof shall be applied towards the Purchase Price for the Golf Casitas Parcel. 208.3 Agency Retention of Deposit Payment Funds. Subject to Section 603 below, in the event this Agreement is terminated prior to the Initial Escrow for any reason other than as a result of a Default by the Agency which is not cured within the applicable cure period, Escrow Agent shall, within ten (10) days thereafter, deliver to Agency, and Agency shall be entitled to retain, all unreleased portions of any Deposit Payments delivered to Escrow Agent pursuant to this Section 208. Subject to Section 604 below, in the event the Initial Escrow closes, but a subsequent Escrow fails to close and is terminated for any reason other than as a result of a Default by the Agency which is not cured within the applicable cure period, Escrow Agent shall, within ten (10) days thereafter, deliver to Agency, and Agency shall be entitled to retain, all unreleased portions of the Deposit Payments delivered to Escrow Agent pursuant to this Section 208. 209. Right of First Refusal. Right of First Refusal. Agency hereby grants to Developer a right of first refusal to purchase that certain real property designated as Lot 6 on the Parcel Map ("Lot 6") and/or that certain real property designated as Lot 8 on the Parcel Map ("Lot 8"), in accordance with the following terms and conditions ("Developer's Right of First Refusal"): (a) Developer, during the period Developer's Right of First Refusal is effective pursuant to the terms of this Section 209, shall have the right to exercise Developer's Right of First Refusal with respect to each of Lot 6 and Lot 8 the first time, and only the first time, Agency has determined to sell the applicable lot for hotel use and provided that at the time of "Agency's Sale Notice" (as defined below) Developer and any and all of Developer's successors in interest are not then in default under this Agreement, the Development Agreement, or the City Declaration of CC&Rs. (b) Prior to concluding any sale with a third party for either or both of Lot 6 or Lot 8 for hotel use, Agency shall provide Developer with written notice of Agency's intent to sell said lot(s) for hotel use ("Agency's Sale Notice"). Agency's Sale Notice shall include a copy of the agreement that contains the terms of the proposed sale (the "Proposed Sale Agreement"). Developer shall have thirty (30) days after receiving Agency's Sale Notice to notify Agency, in writing, of Developer's election to exercise Developer's Right of First Refusal to acquire the applicable lot(s) in accordance with the terms set forth in the Proposed Sale Agreement ("Developer's Election to Exercise"). In the event that before the expiration of Developer's Election to Exercise, the economic terms of the Proposed Sale Agreement are subsequently revised in a manner that makes the Proposed Sale Agreement materially more favorable to the third party purchaser, Agency shall resubmit the Proposed Sale Agreement, as revised, to Developer, and Developer shall have the right to exercise Developer's Right of First Refusal in 882/015610-0084 -25- J 737414.05 a12101/06 DRAFT accordance with the process, including the timeframes, outlined above in this Section 209. For purposes of this Section 209, a reduction in the consideration paid to Agency by twenty-five cents ($0.25) or less per square foot of property involved shall be deemed not to be materially more favorable to the third party purchaser. (c) Developer's failure to deliver to Agency Developer's Election to Exercise within such thirty (30) day period shall be deemed Developer's election not to exercise Developer's Right of First Refusal and Developer's Right of First Refusal with respect to Lot 6 and/or Lot 8, as applicable, shall then terminate and Developer shall have no further right of first refusal with respect to such lot(s). If Developer elects not to exercise (or is deemed to have elected not to exercise) Developer's Right of First Refusal then Agency may sell Lot 6 and/or Lot 8 (as applicable) to the third party purchaser, in accordance with the terms of the Proposed Sale Agreement. (d) If Developer elects to exercise Developer's Right of First Refusal by delivering to Agency Developer's Election to Exercise, the parties shall promptly open an escrow with the Escrow Agent, and provide the Escrow Agent with a copy of the Proposed Sale Agreement that has been assigned to Developer, accompanied by an executed assignment agreement, or an executed purchase and sale agreement substantially in the form of the Proposed Sale Agreement, and the parties shall endeavor to close the escrow in accordance with the terms of the applicable agreement. Developer's election to exercise Developer's Right of First Refusal. as to Lot 6 and/or Lot 8, as applicable, shall terminate Developer's Right of First Refusal as to such lot(s) and Developer shall have no further right of first refusal with respect to such lot(s). Failure of such escrow to close for any reason other than a default by Agency shall not effect the foregoing termination of Developer's Right of First Refusal with respect to the applicable lot(s). (e) Notwithstanding the foregoing or anything in this Agreement to the contrary, Developer's Right of First Refusal as to both Lot 6 and Lot 8 shall terminate and be of no further force or effect on the earlier of (a) the date this Agreement is terminated by either Developer or Agency, or (b) the fifth (5a') anniversary of the Effective Date. M Upon the termination of Developer's Right of First Refusal as to each of Lot 6 and Lot 8, or both, as set forth in this Section 209, Developer shall execute a termination or quitclaim document reasonably requested by Agency and/or reputable title company to remove Developer's Right of First Refusal as a cloud on title as to such lot(s). (g) This Section 209 and Developer's Right of First Refusal set forth herein shall not apply to an "Internal Agency Transfer." For purposes of this Section 209, an Internal Agency Transfer is defined as a conveyance, from time to time and one or more times, of Lot 6 and/or Lot 8 by Agency to the City or to any joint powers authority or similar entity in which Agency or City is a member, or to subsequent conveyances of Lot 6 and/or Lot 8 between and among the Agency, City, and such joint powers authorities or similar entities. The transferee of an Internal Agency Transfer shall take conveyance of Lot 6 and/or Lot 8 subject to, and shall be bound by, the terms of this Section 209 until Developer's Right of First Refusal is terminated pursuant to the terms of this Section 209. 882/015610-0084 -26- 737414.05 a12/01/06 DRAFT 300. DEVELOPMENT OF THE PROJECT 301. Scope of Development. The Developer shall develop or cause the development of the Project in accordance with the Scope of Development, the Specific Plan, the City Municipal Code, Governmental Requirements, Land Use Approvals, and the plans, drawings and documents submitted by the Developer and approved by the Agency as set forth herein. Prior to commencement of construction of any Phase of Development the Developer shall obtain and deliver to the Agency evidence of the Contractor Bonds required pursuant to Section 205.1(n) covering the applicable Phase of Development, and which provide that the Agency is authorized to enforce such completion bond as a third party beneficiary. 302. Design Review. 302.1 Developer Submissions. Before commencement of construction of any Phase of Development, and as one of Agency's Conditions Precedent to the Closing pursuant to Section 205.1(d), at or prior to the time set forth herein, the Developer shall submit to the City any plans and drawings (collectively, the "Design/Construction Development Drawings") which may be required by the City with respect to any permits and entitlements which are required to be obtained to develop a Phase of Development, and such plans for the Phase of Development as required by the City in order for the Developer to obtain building and grading permits for the Phase of Development. Within thirty (30) days after the City's disapproval or conditional approval of such plans, the Developer shall revise the portions of such plans identified by the City as requiring revisions and resubmit the revised plans to the City. All such Design/Construction Development Drawings shall be consistent with the designs set forth in the SilverRock Resort Project Summary prepared by Lowe Enterprises dated June 15, 2005, and the SilverRock Resort Vision Summary 2005, prepared by 02 Architects, Inc., dated June 15, 2005, and Agency reserves the right to request that the City disapprove any plans or designs that Agency's Executive Director believes has too few Units. 302.2 City Review and Approval. The City shall have all rights to review and approve or disapprove all Design/Construction Development Drawings and other required submittals in accordance with the City Municipal Code, and nothing set forth in this Agreement shall be construed as the City's approval of any or all of the Design/Construction Development Drawings or other required submittals. 302.3 Revisions. Any and all change orders or revisions required by the City and its inspectors which are required under the City Municipal Code and all other applicable Uniform Codes (e.g. Building, Plumbing, Fire, Electrical, etc.) and under other applicable laws and regulations shall be included by the Developer in its Design/Construction Development Drawings and other required submittals and shall be completed during the construction of the applicable Phase of Development. 302.4 Defects in Plans. The Agency and the City shall not be responsible either to the Developer or to third parties in any way for any defects in any of the Design/Construction Development Drawings, nor for any structural or other defects in any work done according to the approved Design/Construction Development Drawings, nor for any delays reasonably caused by the review and approval processes established by this Section 302. 6. 882/015610-0084 _27_ 737414.05 al2/O1/06 DRAFT 302.5 Land Use Approvals. Before commencement of construction of any Phase of Development or other works of improvement upon the Property, the Developer shall, at its own expense, secure or cause to be secured any and all land use and other entitlements, permits and approvals which may be required for the applicable Phase of Development or work of improvement by the City or any other governmental agency affected by such construction or work, including but not limited to, site development permits, conditional use permits, temporary use permits, minor use permits, and any environmental studies and documents required pursuant to the California Environmental Quality Act (collectively, the "Land Use Approvals"). 303. Schedule of Performance. The Developer shall submit all Design/Construction Development Drawings, commence and complete all construction of the Project, and satisfy all other obligations and conditions of this Agreement, within the times established therefor in the Schedule of Performance. 304. Indemnity and Insurance Requirements. The Developer shall indemnify, defend, and hold harmless the Agency and the City, and their respective officers, officials, members, employees, agents, and representatives, from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including expert witness fees, attorneys fees, and costs), which may be caused by any of the Developer's activities under this Agreement. Commencing with the Effective Date hereof and ending on the date Agency issues a Release of Construction Covenants for the final Phase of Development to be constructed on the Property (the "Completion of Construction Date"), Developer shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to the Executive Director, the following policies of insurance: A policy of commercial general liability insurance written on a per occurrence basis in an amount not less than Three Million Dollars ($3,000,000.00) per occurrence and Three Million Dollars ($3,000,000.00) in the aggregate. A policy of workers' compensation insurance in such amount as will fully comply with the laws of the State of California against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by Developer in the course of carrying out the work or services contemplated in this Agreement. A policy of commercial automobile liability insurance written on a per occurrence basis in an amount not less than Three Million Dollars ($3,000,000.00). Said policy shall include coverage for owned, non -owned, leased, and hired cars. The following additional requirements shall apply to all of the above policies of insurance: All of the above policies of insurance shall be primary insurance and, except the Worker's Compensation insurance, shall name Agency, City, and their respective officers, officials, members, employees, agents, and representatives as additional insureds, using a pre- 2004 additional insured endorsement (or equivalent). The insurer shall waive all rights of subrogation and contribution it may have against Agency, City, and their respective officers, officials, members, employees, agents, and representatives, and their respective insurers. All of 8821015610-0084 -28- 737414.05 a12/01/06 DRAFT said policies of insurance shall provide that said insurance may not be materially amended or cancelled without providing thirty (30) days' prior written notice to Agency and City. In the event any of said policies of insurance are cancelled, the Developer shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the Executive Director. Not later than the Effective Date of this Agreement, Developer shall provide the Executive Director with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders shall be subject to the reasonable approval of the Executive Director. Upon the request of the Executive Director, Developer shall provide Agency with complete copies of each policy of insurance required by this Agreement. The policies of insurance required by this Agreement shall be satisfactory only if issued by companies (i) licensed and admitted to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, or (ii) authorized to do business in California, rated "A+" or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Registry and only if they are of a financial category Class XV. Notwithstanding the foregoing, in the event that the policies required hereunder are not available from such insurers at commercially reasonable rates, the Executive Director shall have the authority, in his or her sole and absolute discretion, to waive one or more of such requirements provided the proposed policies will adequately protect the Agency's interests hereunder. Agency may reasonably require coverage increases, provided that the percentage increase in coverage shall not be required to exceed the percentage increase in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics, for Urban Wage Earners and Clerical Workers, Los Angeles -Riverside -Orange County Average, All Items (1984 = 100) (the "Index"), from and after the date of this Agreement, or, if said Index is discontinued, such official index as may then be in existence and which is most nearly equivalent to said Index (the "CPI Adjustment"). Unless otherwise approved in advance by the Executive Director, the insurance to be provided by Developer may provide for a deductible or self -insured retention of not more than Fifty Thousand Dollars ($50,000), with such maximum amount to increase at the same rate as the periodic increases in the minimum amount of total insurance coverage set forth above. Developer agrees that the provisions of this Section shall not be construed as limiting in any way the extent to which Developer may be held responsible for the payment of damages to any persons or property resulting from the Developer's activities or the activities of any person or persons for which the Developer is otherwise responsible. 305. Indemni . Commencing on the Effective Date and ending on the Completion of Construction Date, the Developer shall defend, indemnify, assume all responsibility for, and hold the Agency and the City, and their respective representatives, volunteers, officers, officials, members, employees and agents, harmless from all claims, demands, damages, defense costs or liability of any kind for damage to property or injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any acts or omissions of the Developer under this Agreement, whether such activities or performance thereof be by the Developer or by anyone directly or indirectly employed or contracted with by the Developer and 882/01561M084 -29- 737414.05 .12/0 t/06 10:. whether such damage shall accrue or be discovered before or after termination of this Agreement including, but not limited to, Developer's failure to pay, if required, prevailing wages on the construction and development of any Phase of Development. The Developer shall not be liable for property damage or bodily injury occasioned by the sole negligence or willful misconduct of the Agency, the City or their respective agents or employees. 306. Rights of Access. Prior to the Completion of Construction Date, for purposes of assuring compliance with this Agreement, representatives of the Agency shall have the right of access to the Property, without charges or fees, at normal construction hours during the period of construction for the purposes of this Agreement, including but not limited to, the inspection of the work being performed in constructing the Project so long as Agency representatives comply with all safety rules and do not interfere with construction. The Agency (or its representatives) shall, except in emergency situations, notify the Developer prior to exercising its rights pursuant to this Section 308. Agency shall indemnify, defend, and hold Developer harmless from and against all costs, claims, liability and judgments arising from the Agency's exercise of its right of access hereunder. 307. Compliance With Laws• Payment of Taxes. 307.1 Compliance with Laws. The Developer shall carry out the design, construction and operation of the Project and each Phase of Development in conformity with all applicable laws, including all applicable state labor standards, the City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 11135, at seq., and the Unruh Civil Rights Act, Civil Code Section 51, at seq. Nothing herein constitutes a representation or warranty by Agency that the construction of the Project is (i) not a "public work" or (ii) not otherwise subject to California Health and Safety Code Sections 33423 through 33426, or Chapter 1 of Part 7 of the California Labor Code (commencing with section 1720), and all applicable statutory and regulatory provisions related thereto, and Developer, on behalf of itself and its contractors and subcontractors, expressly waives any right of reimbursement for any "increased costs" under California Labor Code Section 1781 or otherwise with respect to the Property or Project. Developer shall indemnify, defend, and hold Agency harmless, including but not limited to litigation costs, expert witness fees, and reasonable attorneys' fees, from and against any and all claims pertaining to the payment of wages for the Property or Project or failure to comply with federal or state labor laws, regulations, or standards. 307.2 Taxes and Assessments. The Developer shall pay prior to delinquency all ad valorem real estate taxes and assessments on the Property (after such time that Developer acquires fee title to or becomes the ground lessee of each of the Parcels composing the Property), subject to the Developer's right to contest in good faith any such taxes. Developer agrees on behalf of itself, and on behalf of all persons or entities that may own an interest in the Property or in the Units in the future, that during the term of the Declaration neither Developer nor any such person or entity shall (i) apply for or receive any exemption from the payment of property taxes 8821015610-0084 _30_ 737414.05 a12/01/06 4t: I or assessments on any interest in or to the Project or any of the Parcels composing the Property, or (ii) take action, including any assessment appeal, to decrease the assessed value of any of the Property (including the value of each respective Phase of Development) below the final assessed value at the time the development of the Property or a Phase of Development (as applicable) is completed. 308. Release of Construction Covenants. Upon the City's issuance of the last and final certificate of occupancy for a Phase of Development, the Developer may request that the Agency furnish the Developer with a Release of Construction Covenants for the applicable Phase of Development. The Agency shall not unreasonably withhold any such Release of Construction Covenants, and if the Developer is entitled thereto shall furnish to Developer a recordable Release of Construction Covenants for the applicable Phase of Development within fifteen (15) days after Developer's request thereof. The Release of Construction Covenants shall be a conclusive determination of satisfactory completion of the applicable Phase of Development and the Release of Construction Covenants shall so state. Any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the real property for which a Release Construction Covenants has been issued shall not (because of such ownership, purchase, lease or acquisition) incur any obligation or liability under this Agreement except for those continuing covenants as described in Article 400 of this Agreement. If the Agency refuses or fails to furnish a Release of Construction Covenants after written request from the Developer, the Agency shall, within fifteen (15) days after written request therefor, provide the Developer with a written statement of the reasons the Agency refused or failed to furnish a Release of Construction Covenants. The statement shall also contain the Agency's opinion of the actions the Developer must take to obtain a Release of Construction Covenants for the applicable Phase of Development. A Release of Construction Covenants shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of any mortgage, or any insurer of a mortgage securing money loaned to finance the applicable Phase of Development, or any part thereof. The Release of Construction Covenants is not a notice of completion as referred to in Section 309.3 of the California Civil Code. 309. Financing of the Project. 309.1 A_nyroval of Financing. Within the times set forth in the Schedule of Performance, and as one of Agency's Conditions Precedent to the Closing for each Escrow, Developer shall submit to Agency evidence that Developer (i) has obtained or will have obtained as of the Closing, construction financing from a commercial lender necessary to undertake the acquisition of the applicable Parcel, and the construction of the applicable Phase of Development, in accordance with this Agreement which may be in the form of a commitment, a term letter, or such other form, with all such forms to be approved by Agency in Agency's reasonable discretion (a "Construction Loan"); (ii) if desired by Developer, has obtained "Mezzanine" financing in a form reasonably acceptable to Agency; and (iii) has obtained sufficient equity capital to cover the difference between (a) the sum of the Construction Loan and the Mezzanine financing and (b) the total cost of acquiring the applicable Parcel and developing the applicable Phase of Development ("Developer's Equity Contribution"). The Agency shall approve or disapprove such evidence of financing within thirty (30) days after - 6 882/015610-0-0084 -31- 737414.05 a12/01/06 receipt of a complete submission for the applicable Phase of Development. Approval shall not be unreasonably withheld, delayed, or conditioned. If Agency shall disapprove any such evidence of financing, Agency shall do so by Notice to Developer stating with reasonable specificity the reasons for such disapproval and Developer shall promptly obtain and submit to Agency new evidence of financing. Agency shall approve or disapprove such new evidence of financing in the same manner and within the same times established in this Section 311.1 for the approval or disapproval of the evidence of financing as initially submitted to Agency. Developer shall close each approved Construction Loan prior to or concurrently with the real estate closing for the applicable Parcel. Such evidence of financing shall include the following: (a) a copy of a loan commitment(s) or term letter(s), obtained by Developer from one or more financial institutions for the Construction Loan, subject to such lenders' reasonable, customary and normal conditions and terms, and (b) documentation reasonably satisfactory to the Agency as evidence of the "Mezzanine" financing and Developer's Equity Contribution. 309.2 Changes Requested by Lenders. In the event that a lender which has been approved pursuant to Section 311.1 hereof requires one or more amendments to this Agreement, or any of the attachments hereto, which amendments are reasonably acceptable to the Agency Executive Director and do not materially affect Agency's interest hereunder, the Agency Executive Director or his or her designee is hereby authorized to make such amendments without further authorization from the Agency Board; provided, however, that the foregoing is not intended to restrict or limit the Agency's legislative discretion. 309.3 Notice of Default to Mortgagee or Deed of Trust Holders; Right to Cure. With respect to any mortgage or deed of trust granted by Developer, whenever the Agency may deliver any notice or demand to Developer with respect to any breach or default by the Developer in completion of construction of the Project or any Phase of Development, the Agency shall at the same time deliver a copy of such notice or demand to each holder of record of any mortgage or deed of trust which has previously requested such notice in writing. Each such holder shall (insofar as the rights granted by the Agency are concerned) have the right, at its option, within sixty (60) days after the receipt of the notice, to cure or remedy or commence to cure or remedy and thereafter to pursue with due diligence the cure or remedy of any such default and to add the cost thereof to the mortgage debt and the lien of its mortgage. It is understood that a holder shall be deemed to have satisfied the sixty (60) day time limit set forth above for commencing to cure or remedy a Developer default which requires title and/or possession of the Property (or portion thereof) if and to the extent any such holder has within such sixty (60) day period commenced proceedings to obtain title and/or possession and thereafter the holder diligently pursues such proceedings to completion and cures or remedies the default. 309.4 Failure of Holder to Complete Project. In any case where, sixty (60) days after the holder of any mortgage or deed of trust creating a lien or encumbrance upon the Property or any part thereof receives a notice from Agency of a default by the Developer in completion of construction of the Project, or any Phase of Development under this Agreement, and such holder has not elected to commence a cure of such default as set forth in this Section 311, or if it has elected to commence such a cure but thereafter defaults hereunder and failed to timely cure such default, the Agency may purchase the mortgage or deed of trust by payment to the holder of the amount of the unpaid mortgage or deed of trust debt, including principal and 882/015610-0084 -32- 737414.05 a12/01/06 DRAFT interest and all other sums secured by the mortgage or deed of trust, including without limitation, any prepayment fees and costs. If the ownership of the Property or any part thereof has vested in the holder, the Agency, if it so desires, shall be entitled to a conveyance from the holder to the Agency upon payment to the holder of an amount equal to the sum of the following: (a) The unpaid mortgage or deed of trust debt at the time title became vested in the holder (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings); (b) All expenses with respect to foreclosure including reasonable attorneys' fees; (c) The net expense, if any (exclusive of general overhead), incurred by the holder as a direct result of the subsequent management of the Property or part thereof, (d) The costs of any improvements or expenditures made by such holder; (e) An amount equivalent to the interest that would have accrued on the aggregate of the amounts set forth in (a) through (d) above had all such amounts become part of the mortgage or deed of trust debt and such debt had continued in existence to the date of payment by the Agency; and (f) Any customary prepayment charges imposed by the lender pursuant to its loan documents and agreed to by the Developer. 309.5 Right of the Agency to Cure Mortgage or Deed of Trust Default. hi the event of a mortgage or deed of trust default or breach by the Developer prior to the completion of the construction of the Project or any Phase of Development, Developer shall immediately deliver to Agency a copy of any mortgage holder's notice of default. If the holder of any mortgage or deed of trust has not elected to cure any default by Developer under this Agreement, the Agency shall have the right but no obligation to cure the default. In such event, the Agency shall be entitled to reimbursement from the Developer of all costs and expenses incurred by the Agency in curing such default. The Agency shall also be entitled to a lien upon the Property, or portion of the Property against which the mortgage or deed of trust is recorded, to the extent of such costs and disbursements actually made by Agency. 309.6 Holder Not Obligated to Construct Project. The holder of any mortgage or deed of trust encumbering the Property shall not be obligated by the provisions of this Agreement to construct or complete the Project, or any portion thereof, or to guaranty such construction or completion; nor shall any such covenant or any other provision in this Agreement be construed so to obligate such holder. 310. Developer CC&Rs. Prior to the Agency's issuance of a Release of Construction Covenants for any Phase of Development that contains Condominium Hotel Units and/or Fractional Units, Developer shall have submitted to City, obtained City's approval of, and recorded against the underlying Parcel a declaration of covenants, conditions, and restrictions that (i) establishes a homeowners' association, (ii) is necessary to create a condominium regime '82/015610-0084 -33- 737414.05 al2/01/06 DRAFT for the condominiums described on the Condominium Plan to be recorded in accordance with all applicable laws; (iii) clearly sets forth the maintenance obligations of the owners of the Condominium Hotel Units and Fractional Units; (iv) sets forth the obligations of the owners of the Condominium Hotel Units and Fractional Units to pay certain resort fees, as further set forth in the City Declaration of CC&Rs; and requires all such resort fees to be paid and brought current prior to any sale by the owner thereof, and (v) includes a disclosure regarding the public ownership and control of the existing golf course and any future golf course that may be developed in the SilverRock Resort Area and a statement that Developer does not and cannot guarantee that the City will not make changes to such golf course(s) or change the use of the underlying real property (the "Developer CC&Rs"). 311. Interference with Municipal Golf Course: Developer shall carry out the construction of the Project so as to minimize interference with the municipal golf course located in the SilverRock Resort Area (the "Golf Course"), including, without limitation, taking all necessary actions to ensure that dust (i) does not blow off or leave any Parcel under development and enter onto any portion of the Golf Course; or (ii) is not tracked from any Parcel under development onto any of the roadways within the SiverRock Resort Area. Developer shall screen any Parcel under development to minimize the visual impacts of such development on persons using the Golf Course. Developer acknowledges that the City has entered into a Use Agreement with the Desert Classic Charities, dba Bob Hope Chrysler Classic, pursuant to which the Golf Course may be utilized for the Bob Hope Chrysler Classic annual tournament. In any year when the tournament is held at the Golf Course, no construction activities shall take place during the televised portion of the tournament unless authorized, in writing, by the City Manager, and Developer and Developer's contractors and subcontractors shall ensure that during the tournament all construction sites are left in a neat and orderly condition. Developer additionally agrees to coordinate with the tournament officials to ensure that construction activities do not interfere with the tournament. 312. Infrastructure Improvements. Developer shall be responsible for all of the following: 312.1 The cost of any and all curb cuts necessary to connect any portions of the Project to the backbone infrastructure within the SilverRock Resort Area. 312.2 The cost to restore or replace any of backbone infrastructure within the SilverRock Resort Area Developer believes should be altered once the City has completed the same. 312.3 The cost to repair any damage to the backbone infrastructure within the SilverRock Resort Area caused by Developer's construction activities. 312.4 Reconnecting the water and sewer lines for the comfort station located on the Boutique Hotel Parcel. in the future. 312.5 Relocating any above -ground utility if such relocation becomes necessary 312.6 Constructing and installing on -site water and sewer laterals and/or loops. 882/015610-0094 -34- 737414.05 a12/01/06 DRAFT 312.7 Installing and paying electricity costs for all on -site lighting needs. In addition to the foregoing, Developer hereby acknowledges and agrees that no alterations shall be permitted to the roadway and/or sewer alignment in the SilverRock Resort Area once the City submits its first plan review to the Coachella Valley Water District. In the event any such alterations are unavoidable, Developer acknowledges that City cannot guarantee that the altered connections will be available to Developer at the time the Boutique Hotel is completed and opened. 400. DEVELOPMENT AGREEMENT; RESORT RETAIL VILLAGE PARCEL GROUND LEASE The City of La Quinta and Developer have entered into or will enter into, concurrently herewith, the Development Agreement. hi the event Agency elects, in Agency's sole and absolute discretion, to convey the Resort Retail Village Parcel to City, the parties contemplate that City will enter into with Developer the Resort Retail Village Parcel Ground Lease, pursuant to which City will subsequently lease to Developer such Parcel. hi the event Agency elects, in Agency's sole and absolute discretion, to retain the fee interest in and to such Parcel, Developer and Agency contemplate entering into the Resort Retail Village Parcel Ground Lease, and Agency contemplates assigning its interests in said lease to City. As set forth herein, in the Development Agreement, and in the Resort Retail Village Parcel Ground Lease (if applicable), Developer shall be required to construct and operate on the Resort Retail Village Parcel the Resort Retail Village Development. Any default of Developer under the Resort Retail Village Parcel Ground Lease or under the Development Agreement which has not been cured within the applicable cure period shall be deemed a Default hereunder, and shall give rise to all of Agency's remedies set forth herein. Notwithstanding anything herein to the contrary, the Resort Retail Village Parcel Lease, if entered, shall have the following terms: 401. Term. The term of the Resort Retail Village Parcel Lease shall be fifty-five (55) years. 402. Rent Schedule. The rent schedule for the Resort Retail Village Parcel is attached hereto and incorporated herein as Attachment No. 15. 403. No Assi ng ment. The Developer may not assign its interest in the Resort Retail Village Parcel Lease until the Agency issues a Release of Construction Covenants for the Resort Retail Village Development. 404. Permitted Uses. The Developer shall use the Resort Retail Village Parcel only for the uses and purposes permitted pursuant to the Specific Plan and pursuant to any applicable Site Development Permit. 500. USE AND OPERATION OF THE PROPERTY Operation of the Project. Developer shall enter into the necessary agreements to ensure that DHR shall initially manage and operate the Phases of Development developed on the '821015610-0084 737414.05 a12/01/06 -35- DRAFT Boutique Hotel Parcel, the Resort Hotel Parcel, the Lake Casitas Parcel, the Golf Casitas Parcel, and the Ranch Villas Parcel all in accordance with the requirements of this Section 500. Notwithstanding anything herein to the contrary, until the Management Transfer Release Date for each Phase of Development that includes Units, DHR or a successor entity authorized pursuant to Section 703.2 (DHR or such permitted successor entity, an "Authorized Manager") shall retain full management and operational control over all components of such Phase of Development. The Authorized Manager of the hotel and Units to be developed on the Resort Hotel Parcel shall also be the Authorized Manager for the Units to be developed on the Golf Casitas Parcel and the Lake Casitas Parcel. The Authorized Manager of the hotel and Units to be developed on the Boutique Hotel Parcel shall also be the Authorized Manager for the Units to be developed on the Ranch Villas Parcel, regardless of whether the Boutique Hotel Parcel is subsequently subdivided into two or more Parcels. Developer, on behalf of itself and any Authorized Manager, covenants and agrees that each of the Phases of Development that include Units shall, upon its completion, be operated in a Four Star Quality condition until the twentieth (20a') anniversary of the date the Agency issues a Release of Construction Covenants for such Phase of Development. No more than once per year after completion of any of the Phases of Development that include Units, the Agency may select an independent consultant (the "Performance Consultant") to perform a quality audit of such Phase(s) of Development for purposes of determining that the applicable Phase of Development is operating at a Four Star Quality (the "Performance Audit'). The then -owner of the applicable Phase of Development (the "Phase of Development Owner") shall reimburse the Agency for the reasonable costs of the Performance Audit. In the event that the Performance Audit concludes that the Phase of Development is not operating at a Four Star Quality, the Phase of Development Owner shall pay to the Agency the sum of One Thousand Dollars ($1,000) per day, as liquidated damages (the "Performance Default Amount'), for each day that passes until the items noted in the Performance Audit have been corrected, as determined by the Performance Consultant. All of the costs and fees charged by the Performance Consultant for any follow-up inspections shall be paid by the Phase of Development Owner. LIQUIDATED DAMAGES. IF THE PERFORMANCE AUDIT CONCLUDES THAT A PHASE OF DEVELOPMENT IS NOT OPERATING AT A FOUR STAR QUALITY, THEN AND IN SUCH EVENT, NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, AGENCY AND DEVELOPER AGREE THAT AGENCY WILL INCUR DAMAGES BY REASON OF SUCH DEFAULT BY DEVELOPER OR DEVELOPER'S SUCCESSOR IN INTEREST, WHICH DAMAGES SHALL BE IMPRACTICAL AND EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE, TO ASCERTAIN. AGENCY AND DEVELOPER, IN A REASONABLE EFFORT TO ASCERTAIN WHAT AGENCY'S DAMAGES WOULD BE IN THE EVENT OF SUCH DEFAULT BY DEVELOPER OR DEVELOPER'S SUCCESSOR IN INTEREST, HAVE AGREED BY PLACING THEIR INITIALS BELOW, THAT CONSIDERING ALL OF THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, INCLUDING THE RELATIONSHIP OF THE SUM TO THE RANGE OF HARM TO AGENCY THAT REASONABLY COULD BE ANTICIPATED, AND THE ANTICIPATION THAT PROOF OF ACTUAL DAMAGES WOULD BE COSTLY OR INCONVENIENT, THE PERFORMANCE DEFAULT AMOUNT SHALL BE DEEMED TO CONSTITUTE A REASONABLE ESTIMATE OF AGENCY'S DAMAGES UNDER THE PROVISIONS OF SECTION 1671 OF THE CALIFORNIA CODE OF CIVIL 882/015610-0094 -36- 737414.05 al2/01/06 DRAFT PROCEDURE. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IN THE EVENT OF AND FOR SUCH DEFAULT BY DEVELOPER OR DEVELOPER'S SUCCESSOR IN INTEREST, THE PHASE OF DEVELOPMENT OWNER SHALL BE REQUIRED TO PAY TO AGENCY THE PERFORMANCE DEFAULT AMOUNT AS LIQUIDATED DAMAGES AND AS AGENCY'S SOLE DAMAGE REMEDY AGAINST THE PHASE OF DEVELOPMENT OWNER FOR A DEFAULT UNDER THIS SECTION 500; PROVIDED, HOWEVER, THAT AGENCY RETAINS AND RESERVES THE RIGHT TO EXERCISE ANY OTHER LEGAL OR EQUITABLE REMEDIES AVAILABLE TO AGENCY HEREUNDER, INCLUDING, WITHOUT LIMITATION, THE RIGHT TO BRING AN ACTION FOR SPECIFIC PERFORMANCE. AGENCY AND DEVELOPER SPECIFICALLY ACKNOWLEDGE THIS LIQUIDATED DAMAGES PROVISION BY THEIR SIGNATURES BELOW: AGENCY DEVELOPER Notwithstanding anything herein to the contrary, the Phase of Development Owner shall not be required to pay to Agency the liquidated damages required hereunder if the Phase of Development Owner is obligated to pay the City liquidated damages in the same amount as required hereunder pursuant to the Development Agreement or the applicable City Declaration of CC&Rs. 501. Use in Accordance with Redevelopment Plan. 501.1 The Developer covenants and agrees for itself, its successors, assigns, and every successor in interest to the Property or any part thereof, that upon the Developer's acquisition of the Property and during construction and operation of the Project, and thereafter, the Developer shall devote the Property to the uses specified in the Redevelopment Plan and this Agreement for the term of the land use controls of the Redevelopment Plan. 501.2 All uses conducted on the Property, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall conform to the Redevelopment Plan and all applicable provisions of the City Municipal Code. The foregoing covenants shall run with the land until the expiration of the land use controls of the Redevelopment Plan. 502. Maintenance Covenants. The Developer shall maintain the Property and all improvements thereon, including all landscaping, in a first class condition, and in compliance with the terms of the Redevelopment Plan, and all applicable provisions of the City Municipal Code. 503. Nondiscrimination Covenants. The Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any part thereof, nor shall the Developer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with 882/015610-0054 _37_ 737414.05 al2/01/06 DRAFT reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land. The Developer shall refrain from restricting the rental, sale or lease of the Property or portion thereof on the basis of race, color, religion, sex, marital status, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land". (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased". (c) In contracts relating to the disposition of the realty: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises". 504. Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction. The Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right, without regard to whether the Agency has been, remains or is an owner of any land or interest therein in the Property or the Project Area. The Agency shall have the right, if this Agreement or the covenants herein are breached, to exercise all rights and remedies, and to maintain any actions or 882/015610-0084 _38_ 737414.05 a12101/06 suits at law or in equity or other proper proceedings to enforce the curing of such breaches and to avail itself of the rights granted herein to which it may be entitled, except as may be otherwise set forth in this Agreement. The covenants contained in this Agreement shall not benefit or be enforceable by any owner of any other real property within or outside the Project Area, or any person or entity having an interest in such other real property. The covenants contained in this Agreement shall remain in effect for the periods described herein, specifically including, without limitation, the following: (a) The environmental covenants set forth in Sections 207.3, 207.4, and 207.5 shall remain in effect in perpetuity. (b) The covenants pertaining to use of the Property which are set forth in Section 503 shall remain in effect until the expiration of the land use controls of the Redevelopment Plan. (c) The covenants pertaining to maintenance of the Property, and all improvements thereon, as set forth in Section 502 and in Section 504, shall remain in effect until the expiration of the land use controls of the Redevelopment Plan. (d) The covenants against discrimination, as set forth in Section 505, shall remain in effect in perpetuity. (e) The indemnity obligations, as set forth in Section 307 hereof, shall remain in effect for the time period set forth in Section 307. (f) The indemnity obligations, as set forth in Section 207.5 and in Section 307.1 hereof, shall remain in effect in perpetuity. 505. Representations and Warranties. 505.1 Agency Representations. Agency represents and warrants to Developer as follows: (a) Authori . Agency is a public body, corporate and politic, existing pursuant to the California Community Redevelopment Law (California Health and Safety Code Section 33000), which has been authorized to transact business pursuant to action of the City. Agency has full right, power and lawful authority to acquire, grant, sell and convey the Property as provided herein, and the execution, performance and delivery of this Agreement by Agency has been fully authorized by all requisite actions on the part of Agency. (b) FIRPTA. Agency is not a "foreign person" within the parameters of FIRPTA or any similar state statute, or is exempt from the provisions of FIRPTA or any similar state statute, or has complied and will comply with all the requirements under FIRPTA or any similar state statute. (c) No Conflict. To the Agency's best knowledge, Agency's execution, delivery and performance of its obligations under this Agreement will not constitute a 882/015610-0084 _39_ 737414.05 aIZ/01/06 DRAFT default or a breach under any contract, agreement or order to which Agency is a party or by which it is bound. (d) Conformance with Redevelopment Plan. The development and use of the Project as required hereunder is in conformance with the Redevelopment Plan. Until the Closing for any of the Parcels, Agency shall, upon learning of any fact or condition which would cause any of the warranties and representations in this Section 507.1 not to be true as of the respective Closing, immediately give written notice of such fact or condition to Developer. Such exception(s) to a representation shall not be deemed a breach by Agency hereunder, but shall constitute an exception which Developer shall have a right to approve or disapprove. If Developer elects to close the applicable Escrow following disclosure of such information, Agency's representations and warranties contained herein shall be deemed to have been made as of the applicable Closing, subject to such exception(s). If, following the disclosure of such information, Developer elects to not close the applicable Escrow, then this Agreement as to the applicable Escrow shall automatically terminate, Developer shall be reimbursed the theretofore undisbursed balance of any deposits made into Escrow, and neither party shall have any further rights, obligations or liabilities hereunder; provided, however, that in the event the Initial Escrow closes, a failure to close any subsequent Escrow shall not terminate this Agreement. In the event the Initial Escrow fails to close, this Agreement shall automatically terminate and neither party shall have any further rights or obligations hereunder, except that both parties agree to take whatever actions are reasonably necessary to terminate any other agreements that may have been executed in furtherance hereof. The representations and warranties set forth in this Section 507.1 shall survive each of the real estate Closings provided for herein. 505.2 Developer's Representations. Developer represents and warrants to Agency as follows: (a) Authori . Developer is a duly organized limited liability company formed within and in good standing under the laws of the State of Delaware. Developer has full right, power and lawful authority to purchase and accept the conveyance of each of the Parcels, and to undertake all obligations as provided herein and the execution, performance and delivery of this Agreement by Developer has been fully authorized by all requisite actions on the part of the Developer. (b) Experience. The Developer is experienced in the development of the type of commercial projects which would satisfy the development requirements set forth herein. (c) No Conflict. To the best of Developer's knowledge, Developer's execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which the Developer is a party or by which it is bound. (d) No Developer Bankruptcy. Developer is not the subject of a current or pending bankruptcy proceeding. 882/015610-0084 -40- 737414.05 a12/01/06 Vol 6VAWI Until the Closing for any of the Parcels, Developer shall, upon learning of any fact or condition which would cause any of the warranties and representations in this Section 507.2 not to be true as of the respective Closing, immediately give written notice of such fact or condition to Agency. Such exception(s) to a representation shall not be deemed a breach by Developer hereunder, but shall constitute an exception which Agency shall have a right to approve or disapprove. If Agency elects to close the applicable Escrow following disclosure of such information, Developer's representations and warranties contained herein shall be deemed to have been made as of the applicable Closing, subject to such exception(s). If, following the disclosure of such information, Agency elects to not close the applicable Escrow, then this Agreement as to the applicable Escrow shall automatically terminate, and neither party shall have any further rights, obligations or liabilities hereunder; provided, however, that in the event the Initial Escrow closes, a failure to close any subsequent Escrow shall not terminate this Agreement. In the event the Initial Escrow fails to close, this Agreement shall automatically terminate and neither party shall have any further rights or obligations hereunder, except that both parties agree to take whatever actions are reasonably required to terminate any other agreements that may have been executed in furtherance hereof. The representations and warranties set forth in this Section 507.2 shall survive each of the real estate closings provided for herein. 600. DEFAULTS AND REMEDIES 601. Default Remedies. Subject to the extensions of time set forth in Section 702 of this Agreement, failure by either party to perform any action or covenant required by this Agreement within the time periods provided herein following notice and failure to cure as described hereafter, constitutes a "Default" under this Agreement. A party claiming a Default shall give written notice of Default to the other party specifying the Default complained of. Except as otherwise expressly provided in this Agreement, the claimant shall not institute any proceeding against any other party, and the other party shall not be in Default if such party cures such default within thirty (30) days from receipt of such notice, or if the nature of such default is that it cannot reasonably be expected to be cured within such thirty (30) day period, if such party, with due diligence, commences to cure, correct or remedy such failure or delay within thirty (30) days from receipt of such notice, and completes such cure, correction or remedy with diligence. 602. Institution of Legal Actions. In addition to any other rights or remedies and subject to the restrictions otherwise set forth in this Agreement, either party may institute an action at law or equity to seek specific performance of the terms of this Agreement, or to cure, correct or remedy any Default, or to obtain any other remedy consistent with the purpose of this Agreement. Agency shall also have the right to pursue damages for Developer's defaults. Notwithstanding the foregoing, however, in no event shall the Developer be entitled to damages of any kind from Agency, including damages for economic loss, lost profits, or any other losses or consequential damages of any kind. Such legal actions must be instituted in the Superior Court of the County of Riverside, State of California, in an appropriate municipal court in that county, or in the District of the United States District Court in which such county is located. 603. Termination Prior to the Close of the Initial Escrow. 882/015610-0094 -41- 737414.05 a12/01/06 603.1 Termination by Developer. In the event that prior to the close of the Initial Escrow (a) one or more of the Developer's Conditions Precedent to the Closing for the Initial Escrow is not fulfilled on or before the time set forth in the Schedule of Performance and such failure is not caused by the Developer, (b) any default of the Agency under this Agreement prior to the close of the Initial Escrow is not cured within the time set forth in Section 601 hereof, after written demand by the Developer, (c) the Developer timely disapproves the environmental condition of the Property pursuant to Section 207 hereof, or (d) Developer reasonably determines that development of the Project would not be compatible with the other development within the Parcel Map, then this Agreement may, at the option of the Developer, be terminated by written Notice thereof to the Agency. From the date of the written Notice of termination of this Agreement by the Developer to the Agency and thereafter this Agreement shall be deemed terminated and there shall be no further rights or obligations between the parties with respect to the Property, or any portion thereof, by virtue of or with respect to this Agreement. Upon termination as a result of clause (b) above or as a result of Developer's failure to obtain City's approval of plans that are consistent with this Agreement and with the Specific Plan, after diligent efforts by Developer to so obtain, any then-undisbursed amounts deposited into Escrow by Developer shall be paid to Developer. 603.2 Termination by Aeencv. In the event that prior to the close of the Initial Escrow (a) the Developer (or any successor in interest) assigns this Agreement or any rights herein or in any of the Parcels in violation of this Agreement, or assigns the Development Agreement or any rights therein; or (b) one or more of the Agency's Conditions Precedent to the Closing is not fulfilled on or before the Outside Date for Closing (as it may be extended) and such failure is not caused by the Agency; or (c) the Developer is otherwise in default of this Agreement and fails to cure such default within the time set forth in Section 601 hereof, after written demand by the Agency; or (d) the Developer is the subject of a bankruptcy proceeding, whether voluntarily or involuntarily commenced, then this Agreement shall, at the option of the Agency, be terminated by the Agency by written Notice thereof to the Developer. From the date of the written Notice of termination of this Agreement by the Agency to the Developer and thereafter this Agreement shall be deemed terminated and there shall be no further rights or obligations between the parties, except that Agency shall be entitled to retain all then- undisbursed portions of the Deposit Payments and shall have any and all rights available to the Agency as set forth in Section 605, Section 606, and Section 607 hereof. 604. Termination Prior to Subsequent Parcel Conveyance. 604.1 Termination by the Developer. In the event that, after the close of the Initial Escrow but prior to the close of any subsequent Escrow (a) one or more of the Developer's Conditions Precedent to the Closing for the applicable Escrow is not fulfilled on or before the time set forth in the Schedule of Performance and such failure is not caused by the Developer, (b) any default of the Agency under this Agreement prior to the Closing is not cured within the time set forth in Section 601 hereof, after written demand by the Developer, or (c) Developer reasonably determines that development of the Project would not be compatible with the other development within the Parcel Map, then this Agreement with respect to that Escrow and all contemplated subsequent Escrows (if any) may, at the option of the Developer, be terminated by written Notice thereof to the Agency. From the date of the written Notice of termination of this Agreement by the Developer to the Agency, this Agreement shall be deemed 892/015610-0084 -42- 737414.05 al2/01/06 terminated with respect to such Escrow and there shall be no further rights or obligations between the parties with respect to said Parcel(s) by virtue of or with respect to this Agreement. Upon termination as a result of clause (b) above or as a result of Developer's failure to obtain City's approval of plans that are consistent with this Agreement and with the Specific Plan, after diligent efforts by Developer to so obtain, any then-undisbursed portions of the Deposit Payments shall be paid to Developer. 604.2 Termination by the Agencv. In the event that, after the close of the Initial Escrow but prior to the close of any subsequent Escrow (a) the Developer (or any successor in interest) assigns this Agreement or any rights herein or in the applicable Parcel(s) in violation of this Agreement, or assigns the Development Agreement or any rights therein; or (b) one or more of the Agency's Conditions Precedent to the Closing for the applicable Escrow is not fulfilled on or before the applicable Outside Date for Closing (as it may be extended) and such failure is not caused by the Agency; or (c) the Developer is otherwise in default of this Agreement and fails to cure such default within the time set forth in Section 601 hereof, after written demand by the Agency; or (d) the Developer is the subject of a bankruptcy proceeding, whether voluntarily or involuntarily commenced, then this Agreement with respect to that Escrow and all contemplated subsequent Escrows (if any) shall, at the option of the Agency, be terminated by the Agency by written Notice thereof to the Developer. From the date of the written Notice of termination of this Agreement by the Agency to the Developer, this Agreement with respect to such Escrow(s) shall be deemed terminated and there shall be no further rights or obligations between the parties with respect to said Parcel(s) by virtue of or with respect to this Agreement. 605. Agency Option to Acquire Plans. If, at any time after the close of the Initial Escrow this Agreement is terminated by the Agency as a result of a default by the Developer, at the option of the Agency and without any additional consideration, which option may be exercised in the Agency's sole and absolute discretion, the Developer shall deliver to the Agency an executed assignment in a form reasonably acceptable to the Agency of the Developer's right to use all plans, blueprints, drawings, sketches, specifications, tentative or final subdivision maps, landscape plans, utilities plans, soils reports, noise studies, environmental assessment reports, grading plans and any other materials relating to the construction of the Project on the Property (the "Plans"), together with copies of all of the Plans, as have been prepared for the development of the Project to date of the termination. Notwithstanding the foregoing, however, Developer does not covenant to convey to the Agency the copyright or other ownership rights of third parties. Agency understands and agrees that the assignment to Agency under this Section 605 is subject and subordinate to any assignment which Developer may make to a lender providing financing for the project, and Agency agrees to execute any documents required by such lender acknowledging and effectuating such subordination of Agency's rights in and to the assignment. Agency's acquisition or use of the Plans or any of them shall be without any representation or warranty by Developer as to the accuracy or completeness of any such Plans, and Agency shall assume all risks in the use of the Plans. 606. Option n Agreement. In addition to any other rights and remedies available to Agency hereunder, Agency shall be entitled, in its sole and absolute discretion, to repurchase the Property, or any Parcel, with all of the improvements thereon, from Developer in the event that, (i) Developer fails to commence construction of a Phase of Development within certain specified timeframes, (ii) after commencement of construction, Developer fails to continuously proceed F. 882/015610-0094 -43- 737414.05 a12/01/06 DRAFT with, and complete, construction of a Phase of Development within certain specified timeframes, or (iii) Developer transfers or suffers an involuntary transfer of the Property, or a portion thereof, in violation of the terms hereof. Said repurchase rights shall be as set forth in an option agreement to be recorded at each Closing, against the applicable Parcel. The form of the Option Agreement is attached hereto and incorporated herein as Attachment No.7 ("Option Agreement'). 607. Rinht to Reverter and Power of Termination. In addition to any other rights and remedies available to Agency hereunder, Agency shall be entitled, in its sole and absolute discretion, to reenter and take possession of the Property, or any Parcel, subject to all liens and other matters of record, with all of the improvements thereon, from Developer in the event that (i) Developer fails to commence construction of a Phase of Development within certain specified timeframes, (ii) after commencement of construction, Developer fails to continuously proceed with and complete, construction of the Phase of Development within certain, specified timeframes, or (iii) Developer transfers or suffers an involuntary transfer of the Property, or a portion thereof, in violation of the terms hereof. Said rights shall be as set forth in each Grant Deed pursuant to which Agency shall convey a Parcel to Developer. 608. Acceptance of Service of Process. In the event that any legal action is commenced by the Developer against the Agency, service of process on the Agency shall be made by personal service upon the Executive Director of the Agency or in such other manner as may be provided by law. In the event that any legal action is commenced by the Agency against the Developer, service of process on the Developer shall be made by personal service upon any officer of the Developer, whether made within or outside the State of California, or in such other manner as may be provided by law. 609. Rights and Remedies Are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 610. Inaction Not a Waiver of Default. Any failures or delays 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, or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 611. Applicable Law. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement, without regard to conflict of law principles. 612. Non -Liability of Officials and Employees of the Agency. No member, official or employee of the Agency or the City shall be personally liable to the Developer, or any successor in interest, in the event of any Default or breach by the Agency (or the City) or for any amount which may become due to the Developer or its successors, or on any obligations under the terms of this Agreement. 882/015610-0094 -44- 777414.05 a12/01/06 DRAFT 613. Attorneys' Fees. In any action between the parties to interpret, enforce, reform, modify, rescind, or otherwise in connection with any of the terms or provisions of this Agreement, the prevailing party in the action shall be entitled, in addition to damages, injunctive relief, or any other relief to which it might be entitled, reasonable costs and expenses including, without limitation, litigation costs, reasonable attorneys' fees and expert witness fees. 700. GENERAL PROVISIONS 701. Notices Demands and Communications Between the Parties. Any approval, disapproval, demand, document or other notice ("Notice") which either party may desire to give to the other party under this Agreement must be in writing and may be given by any commercially acceptable means to the party to whom the Notice is directed at the address of the party as set forth below, or at any other address as that party may later designate by Notice. To Agency: La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, California 92253 Phone No.: 760-777-7031 Facsimile No.: 760-777-7101 Attention: Assistant Executive Director With a copy to: Rutan & Tucker, LLP 611 Anton, Suite 1400 P.O. Box 1950 Costa Mesa, California 92628 Phone No.: 714-641-5100 Facsimile No.: 714-546-9035 Attention: M. Katherine Jenson, Esq. To Developer: LDD SilverRock, LLC 74-001 Reserve Drive Indian Wells, California 92210 Phone No.: 760-674-2200 Facsimile No.: 760-779-1469 Attention: Theodore R. Lennon, Jr. With a copy to: Manatt, Phelps & Phillips, LLP 11355 W. Olympic Boulevard Los Angeles, California 90064 Phone No.: 310-312-4217 Facsimile No.: 310-312-4224 Attention: Timi A. Hallem 882/015610-0084 -45- 737414.05 a12101/06 DRAFT and to: Lowe Enterprises, Inc. 11777 San Vicente Blvd., Suite 900 Los Angeles, California 90049 Attn: Corporate Counsel Phone No.: 310-820-6661 Facsimile No.: 310-820-8131 Any written notice, demand or communication shall be deemed received upon delivery if delivered by hand, including by reputable delivery service providing a receipt with the date and time of delivery, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 702. Enforced Delay' Extension of Times of Performance. hi addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays or Defaults are due to causes beyond the control or without the fault of the party claiming an extension of time to perform, which may include the following: war; insurrection; acts of terrorism; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; acts or omissions of the other party; or acts or failures to act of the City or any other public or governmental agency or entity (other than the acts or failures to act of the Agency which shall not excuse performance by the Agency). Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of Agency and Developer. Notwithstanding any provision of this Agreement to the contrary, the lack of funding to commence or complete the Project or any Phase of Development shall not constitute grounds of enforced delay pursuant to this Section 702. 703. Transfers of Interest in Property Agreement or Management. The qualifications and identity of the Developer as the developer and DHR as the operator of high quality commercial resort developments are of particular concern to the Agency. Furthermore, the parties acknowledge that the Agency has negotiated the terms of this Agreement in contemplation of the development and operation of the Project on the Property and the property tax increment and Transient Occupancy Tax revenues to be generated by the operation of the Project on the Property. 703.1 Transfers of Interest in Property or Agreement Prior to Agency's Issuance of a Release of Construction Covenants. Except as provided in this Section 703.1, until the date the Agency issues a Release of Construction Covenants for a particular Phase of Development .. E 882/015610-0094 -46- 737414.05 a12/01/06 DRAFT (the "Fee Transfer Release Date'), (1) no voluntary successor in interest of the Developer shall acquire any rights or powers under this Agreement with respect to said Phase of Development; (2) the Developer shall not make any total or partial sale, transfer, conveyance, assignment, or lease of the whole or any part of the applicable Parcel or the Phase of Development thereon; and (3) no changes shall occur with respect to the ownership and/or control of Developer or of Lowe Enterprises, including, without limitation, stock transfers, sales of issuances, or transfers, sales or issuances of membership or ownership interests, or statutory conversions (any of the above, a "Transfer"). Prior to the Fee Transfer Release Date for a particular Phase of Development, the Agency may approve or disapprove a proposed Transfer in its sole and absolute discretion. Notwithstanding the foregoing, Agency approval of a Transfer prior to the Fee Transfer Release Date for a particular Phase of Development shall not be required in connection with any of the following: a. The conveyance or dedication of any portion of the Property to an appropriate governmental agency, or the granting of easements or permits to facilitate construction of the Project. b. Any assignment for financing purposes (subject to such financing being permitted pursuant to Section 311 of this Agreement), including the grant of a deed of trust to secure the funds necessary for land acquisition, construction and permanent financing of the Project or of a Phase of Development. C. The Transfer by Developer to an entity whose managing member, manager, or managing general partner is Developer or an entity in which Lowe Enterprises owns and controls at least fifty-one percent (51 %), and has day-to-day control of the development of the Phase of Development. d. The sale by Developer of Condominium Hotel Units to third party buyers. e. The sale, transfer or issuance of stock or membership interests of Lowe Enterprises so long as a minimum of fifty-one percent (51%) of the outstanding and voting stock, membership and/or ownership interests of Lowe Enterprises, and control of Lowe Enterprises, is held, directly or indirectly, by Robert J. Lowe or his estate or a member of his family. , 703.2 Transfers of Operational Obligations. Notwithstanding anything in Section 703.1 to the contrary, until the tenth (10th) anniversary of the date the Agency issues a Release of Construction Covenants for each Phase of Development (the "Management Transfer Release Date"), (i) neither Developer nor DHR (or any permitted successor in interest) shall make any Transfer of the operational and/or managerial control, including, but not limited to, financial and managerial decisionmaking, of such Phase of Development; and (ii) no changes shall occur with respect to the ownership and/or control of DHR, or of Lowe Enterprises, including, without limitation, stock transfers, sales of issuances, or transfers, sales or issuances of membership or ownership interests, or statutory conversions (either of the above, a "Management Transfer") without the prior written approval of the Agency; provided, however, that transfers of the stock, ownership and/or membership interests of DHR or of Lowe 882/015610-0084 737414 05 a12/01/06 -47- ITMM Enterprises may be made so long as a minimum of fifty-one percent (51%) of the outstanding and voting stock, ownership, and/or membership interests of DHR and of Lowe Enterprises is held, directly or indirectly, by Robert J. Lowe or his estate or a member of his family. Notwithstanding the foregoing, Agency approval shall not be required for a Management Transfer to any of the entities listed on Attachment No. 15, which is attached hereto and incorporated herein by this reference; provided, however, that if any of the entities on Attachment No. 14 operate under a "flag" name, the flag shall be a flag that operates at a Four Star Quality. To the extent that the operating character or quality of any of the entities listed on Attachment No. 14 substantially changes between the Effective Date and the date of the proposed Management Transfer, Developer or Developer's successor in interest shall demonstrate that the listed entity satisfies the requirements for transferee entities not listed on Attachment No. 14, as outlined below in this Section 703.2. No Management Transfer or Transfers, individually or collectively, shall be made that results in different entities operating and managing the hotels and Units on the Resort Hotel Parcel, the Lakes Casitas Parcel, and the Golf Casitas Parcel and no Management Transfer or Transfers, individually or collectively, shall be made that results in different entities operating and managing the hotels and Units on the Boutique Hotel Parcel, regardless of whether the Boutique Hotel Parcel is subdivided into two or more legal parcels, and the Ranch Villas Parcel. Agency shall not unreasonably withhold, delay, or condition approval of a proposed Management Transfer to an entity that is not listed on Attachment No. 14, provided that Developer or Developer's successor in interest demonstrates that the proposed operator has experience and reputation for operating luxury hotels at a Four Star Quality equivalent to the experience and reputation of DHR, Rosewood Hotels and Resorts, Vail Resorts, Inc., Loews Corporation, and Kimpton Hotel and Restaurant Group, LLC. Developer or Developer's successor in interest shall provide such information as may reasonably requested by the Agency to enable the Agency to review and approve (or disapprove) any proposed operator, and shall reimburse the Agency for the Agency's costs incurred in considering any such request. 703.3 Assignment and Assumption of Obligations. Except for the sale of individual Condominium Hotel Units, any Transfer by Developer of any interest in the Property or of any interest in this Agreement and all Management Transfers shall require the execution of an assignment and assumption of obligations in a form reasonably acceptable to the Agency's counsel. Transfers of Developer's rights and/or obligations under this Agreement made without an Agency -approved assignment and assumption agreement are null and void. This requirement shall apply regardless of whether Agency approval is required for the Transfer. Developer agrees that at least thirty (30) days prior to such Transfer it shall give written notice to Agency of such assignment and satisfactory evidence that the assignee has assumed in writing through an assignment and assumption agreement all applicable obligations under this Agreement. A party proposing to assign its obligations under this Agreement (i) shall remain liable for the obligations until and unless the Agency has received a fully executed assignment and assumption agreement in the form approved by the Agency's counsel, and (ii) shall remain liable for any default hereunder that occurred prior to the effective date of the assignment. Developer or Developer's successor in interest shall reimburse the Agency for any costs (other than staff time) the Agency incurs in reviewing any assignment and assumption agreement required hereunder. 703.4 Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon the Developer and its permitted successors and assigns. 882/015610-0084 -48- U 1 737414 05 a12/01/06 DRAFT Whenever the term "Developer" is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided, and the term "Developer shall only mean the owner of a Phase of Development from time to time during the period of such entity's ownership, provided that the procedures set forth in this Agreement for that entity's acquisition and or disposition. 703.5 Assignment by Agency. The Agency may assign or transfer any of its rights or obligations under this Agreement with the approval of the Developer, which approval shall not be unreasonably withheld; provided, however, that the Agency may assign or transfer any of its interests hereunder to the City or to a joint powers authority in which Agency or the City is a member at any time without the consent of the Developer. 704. Relationship Between Agency and Developer. It is hereby acknowledged that the relationship between the Agency and the Developer is not that of a partnership or joint venture and that the Agency and the Developer shall not be deemed or construed for any purpose to be the agent of the other. Accordingly, except as expressly provided herein or in the Attachments hereto, the Agency shall have no rights, powers, duties or obligations with respect to the development, operation, maintenance or management of the Project. 705. Agency Approvals and Actions. The Agency shall maintain authority of this Agreement and the authority to implement this Agreement through the Agency Executive Director (or his duly authorized representative). Any reference to the Agency Executive Director herein shall be deemed to include such authorized representative. The Agency Executive Director, or his or her designee, shall have the authority to make approvals, issue interpretations, waive provisions, and/or enter into amendments of this Agreement on behalf of the Agency so long as such actions do not materially or substantially change the uses or development permitted on the Property, or materially or substantially add to the costs incurred or to be incurred by the Agency as specified herein, and such approvals, interpretations, waivers and/or amendments may include extensions of time to perform as specified in the Schedule of Performance. All other material and/or substantial interpretations, waivers, or amendments shall require the consideration, action and written consent of the Agency Board. 706. Counterparts. This Agreement may be signed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement. This Agreement is executed in two (2) originals, each of which is deemed to be an original. 707. Integration. This Agreement contains the entire understanding between the parties relating to the transaction contemplated by this Agreement, notwithstanding any previous negotiations or agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged in this Agreement and shall be of no further force or effect. Each party is entering this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such parry deems material. This Agreement includes Attachment Nos. 1 through 11, which are incorporated herein. 882/015610-0084 _49_ 737414.05 a12/01/06 DRAFT 708. Real Estate Brokerage Commission. The Agency and the Developer each represent and warrant to the other that no broker or finder is entitled to any commission or finder's fee in connection with the Developer's acquisition of the Property from the Agency. The parties agree to defend and hold harmless the other party from any claim to any such commission or fee from any other broker, agent or finder with respect to this Agreement which is payable by such party as a result of the actions of the indemnifying party. 709. Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or of any of its terms. Reference to section numbers are to sections in this Agreement, unless expressly stated otherwise. 710. Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word "including" shall be construed as if followed by the words "without limitation". This Agreement shall be interpreted as though prepared jointly by both parties. 711. No Waiver. A waiver by either party of a breach of any of the covenants, conditions or agreements under this Agreement to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this Agreement. 712. Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each party. Developer shall be required to reimburse Agency for all costs Agency incurs in negotiating, preparing, and processing any such alterations, changes, or modifications. In connection with any request for an alteration, change or modification, Developer shall deposit with the Agency the sum of Ten Thousand Dollars ($10,000). Notwithstanding the foregoing, Agency's Executive Director shall have the discretion to authorize a lesser deposit, in the event he or she determines the proposed alteration, change or modification is minor. In the event the funds on deposit are depleted, Agency shall notify Developer of the same, and Developer shall deposit with the Agency an additional Five Thousand Dollars ($5,000) to complete processing of the requested alteration, change or modification. Developer shall make additional deposits to Agency, as needed, pursuant to the foregoing process, until the requested alteration, change, or modification is finalized. Within sixty (60) days after such alteration, change or modification is finalized, Agency shall reimburse the Developer any unused sums. 713. Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. 714. Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day (such as the day escrow opens), and including n� 0 882/015610-0094 _50_ 737414.05 a12/01/06 DRAFT the last day, unless the last day is a holiday or Saturday or Sunday, and then that day is also excluded. The term "holiday" shall mean all holidays as specified in Section 6700 and 6701 of the California Government Code. If any act is to be done by a particular time during the day, that time shall be Pacific Time Zone time. 715. Legal Advice. Each party represents and warrants to the other the following: they have carefully read this Agreement, and in signing this Agreement, they do so with full knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement; and, they have freely signed this Agreement without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise. 716. Time of Essence. Time is expressly made of the essence with respect to the performance by the Agency and the Developer of each and every obligation and condition of this Agreement. 717. Cooperation. Each party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements. 718. Conflicts of Interest. No member, official or employee of the Agency shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. 719. Time for Acceptance of Agreement by Agency. This Agreement, when executed by the Developer and delivered to the Agency, must be authorized, executed and delivered by the Agency on or before forty-five (45) days after signing and delivery of this Agreement by the Developer or this Agreement shall be void, except to the extent that the Developer shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. [signatures on next page] 882/015610-0084 -51- 737414.05 al2/01/06 DRAFT IN WITNESS WHEREOF, the Agency and the Developer have executed this Disposition and Development Agreement as of the date set forth above. ATTEST: Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP M. Katherine Jenson Agency Counsel AGENCY: LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic 0 Executive Director DEVELOPER: LDD SILVERROCK, LLC, a Delaware limited liability company am Its: 882/015610-0084 -52- 737414.05 al2/01/06 DRAFT ATTACHMENT NO.1 PROPERTY LEGAL DESCRIPTION [To be Inserted] 882/015610-0084 737414 05 a12/01/06 DRAFT ATTACHMENT NO.2 SITE MAP [To be Inserted] 882/015610-0084 737414.05 a12/01/06 I0 -RAW ATTACHMENT NO.3 PURCHASE PRICE Parcel Purchase Price Boutique Hotel Parcel $3,309,600 Ranch Villas Parcel $585,000 Parcel Initial Purchase Price Resort Hotel Parcel $3,930,000 Black Box Parcel $156,000 Resort Retail Village Parcel $2,069,971 Golf Casitas Parcel $1,726,000 Lake Casitas Parcel $764,000 The Purchase Price for each of the Golf Casitas Parcel, Lake Casitas Parcel, Resort Hotel Parcel, Resort Retail Village Parcel (if sold to Developer), and Black Box Parcel shall be determined in the following manner: On or before the third anniversary of the Effective Date of the DDA, and on or before the close of each subsequent three (3) year period until all Parcels have been sold and conveyed to Developer, Developer and Agency shall select an appraiser reasonably acceptable to both parties and commission an updated appraisal reflecting the fair market value of any of the Parcels that have not, as of said date, been sold to Developer (each, an "Appraisal"). Except as provided below, Agency shall be responsible for all of the costs associated with each of said Appraisals. The Purchase Price for each Parcel (except the Boutique Hotel Parcel and the Ranch Villas Parcel) shall be the fair market value of the Parcel, as set forth in the most recent Appraisal. Subject to the following sentence, the Purchase Price for the Boutique Hotel Parcel and for the Ranch Villas Parcel shall be as set forth above. Notwithstanding anything herein to the contrary, in the event any of the Parcels, including, without limitation, the Boutique Hotel Parcel and the Ranch Villas Parcel, are sold to Developer within three (3) years after the Effective Date, and the acreage of the Parcel, as indicated by the final and recorded Parcel Map, differs from the acreage set forth herein, then the Purchase Price for said Parcel shall be recalculated, based on the following price per acre: (i) Two Hundred Forty Thousand Dollars ($240,000) per acre for the Boutique Hotel Parcel; (ii) Two Hundred Forty Thousand Seven Hundred Forty -One Dollars ($240,741) per acre for the Ranch Villas Parcel; 882/015610-0084 " 737414.05 al2/01/06 DRAFT (iii) Two Hundred Thousand Dollars ($200,000) per acre for the Lake Casitas Parcel, Golf Casitas Parcel, Resort Hotel Parcel, and Black Box Parcel; and (iv) One Hundred Seventy -Four Thousand Two Hundred Forty Dollars ($174,240) per acre for the Resort Retail Village Parcel. Notwithstanding anything herein to the contrary, in the event Michael A. Scarcella is still an MAI appraiser at the time of an Appraisal, Mr. Scarcella shall be retained to perform any Appraisal required hereunder. hi the event Michael A. Scarcella is no longer an MAI appraiser providing ,appraisal services at the time of an Appraisal or is not available to perform the Appraisal, and Agency and Developer cannot agree on an appraiser, either Developer or Agency may notify the other party, in writing, that they are invoking the following process, and such process shall then apply: Developer shall select, and shall be responsible for all of the costs for, an independent and qualified MAI appraiser to perform the Appraisal. Within five (5) business days after Developer's receipt of the Appraisal, Developer shall deliver to Agency a copy thereof. If Agency does not agree with Developer's Appraisal, Agency shall notify Developer in writing within five (5) business days after receipt thereof. Within sixty (60) days thereafter, or such additional time reasonably necessary for completion, Agency, at its cost, shall deliver to Developer an Appraisal prepared by an independent and qualified MAI appraiser. If Developer's Appraisal is higher than Agency's Appraisal, then Developer's Appraisal shall be used to determine the Purchase Price for any Parcels not yet purchased. If Developer's Appraisal is lower than Agency's Appraisal, but less than or equal to five percent (5%) lower, the average of Developer's Appraisal and Agency's Appraisal shall be used to determine the Purchase Price of any Parcels not yet purchased. If Developer's Appraisal is lower than Agency's Appraisal, and is more than five percent (5%) lower, Agency and Developer shall appoint, and shall share the cost of, a third independent and qualified MAI appraiser who shall perform a review Appraisal and shall render a determination of the fair market value of the Parcels not yet purchased. If Agency and Developer cannot agree on a third appraiser, then an amount equal to seventy-five percent (75%) of the difference between Agency's Appraisal and Developer's Appraisal shall be added to Developer's Appraisal and said amount shall be used to determine the Purchase Price of any Parcels not yet purchased. Notwithstanding anything herein to the contrary, the Purchase Price for the Resort Retail Village Parcel shall be applicable only if said Parcel is sold in fee to Developer. If said Parcel is instead leased to Developer, the leasehold payments shall be as set forth in the Resort Retail Village Parcel Ground Lease. 882/015610-0084 _2- 737414 05 a12/01/06 ATTACHMENT NO.4 FORM OF GRANT DEED [See Following Pages] 21 882/015610-0084 737414.05 a12/01106 DRAFT RECORDING REQUESTED BY, MAIL TAX STATEMENTS TO AND WHEN RECORDED MAIL TO: LDD SilverRock, LLC 74-001 Reserve Drive Indian Wells, California 92210 Attn- Theodore R. Lennon, Jr. iocument is exempt from paymenr or a recuru, fee pursuant to Government Code Section 273 GRANT DEED (Parcel __) For valuable consideration, receipt of which is hereby acknowledged, The LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), acting to cant' out the Redevelopment Plan ("Redevelopment Plan") for the La Quinta Redevelopment Project Area No. 1 (the "Project Area"), under the Community Redevelopment Law of California, hereby grants to LDD SILVERROCK, LLC, a Delaware limited liability company ("Developer"), the real property hereinafter referred to as the "Parcel," described in Exhibit A attached hereto and incorporated herein, subject to the existing easements, restrictions and covenants of record described there. 1. Reservation of Mineral Rights. Agency excepts and reserves from the conveyance herein described all interest of the Agency in oil, gas, hydrocarbon substances and minerals of every kind and character lying more than five hundred (500) feet below the surface, together with the right to drill into, through, and to use and occupy all parts of the Parcel lying more than five hundred (500) feet below the surface thereof for any and all purposes incidental to the exploration for and production of oil, gas, hydrocarbon substances or minerals from said Parcel or other lands, but without, however, any right to use either the surface of the Parcel or any portion thereof within five hundred (500) feet of the surface for any purpose or purposes whatsoever, or to use the Parcel in such a manner as to create a disturbance to the use or enjoyment of the Parcel. 2. Parcel Conveyance in Accordance With Redevelopment Plan, Disposition and Development Agreement. The Parcel is conveyed in accordance with and subject to the Redevelopment Plan for the La Quinta Redevelopment Project Area No. 1 ("Redevelopment Plan") which was approved and adopted by Ordinance No. 43, on November 29, 1983, of the City Council of the City of La Quinta, and a Disposition and Development Agreement entered into between Agency and Developer dated , 2006 (the "DDA"), a copy of which is on file with the Agency at its offices as a public record and which is incorporated herein by reference. The DDA generally requires the Developer to construct and operate on the Parcel a [Project Description] (the "Phase Development'), and other requirements as set forth therein. All terms used herein shall have the same meaning as those used in the DDA. 3. Permitted Uses. The Developer covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Parcel or any part thereof, that upon the date of this f 882/015610.0084 737414.05 a]2/01/06 Grant Deed ("Grant Deed") and during construction through completion of development and thereafter, the Developer shall devote the Parcel to the uses specified in the Redevelopment Plan for the periods of time specified therein. All uses conducted on the Parcel, including, without limitation, all activities undertaken by the Developer pursuant to the DDA, shall conform to the DDA, the Redevelopment Plan, and all applicable provisions of the City Municipal Code. The foregoing covenants shall run with the land. 4. Restrictions on Transfer. The Developer further agrees that, except as permitted or approved by the Agency pursuant to Section 703 of the DDA, (i) until the Developer obtains a Release of Construction Covenants for the Phase of Development, no voluntary or involuntary successor in interest of the Developer shall acquire any rights or powers under the DDA or this Grant Deed, nor shall the Developer make any total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the Parcel or the Phase of Development thereon, and (ii) for a period of ten (10) years, commencing upon the date Developer obtains a Release of Construction Covenants for the Phase of Development, Developer shall retain full managerial and operational control of the Phase of Development. 5. Binding on Successors. All of the terms, covenants and conditions of this Grant Deed shall be binding upon the Developer and the permitted successors and assigns of the Developer. Whenever the term "Developer" is used in this Grant Deed, such term shall include any other successors and assigns as herein provided. 6. Nondiscrimination. The Developer herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the Developer itself or any person claiming under or through Developer, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land. The Developer shall refrain from restricting the rental, sale or lease of the Parcel on the basis of race, color, religion, sex, marital status, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land". = E. 882/015610-0085 _'L_ 737414.05 a12/01/06 (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased". (c) In contracts relating to the disposition of the realty: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises". 7. Agency's Right of Reverter and Power of Termination. The Agency has the right, at its election, to reenter and take possession of the Parcel, with all improvements thereon, and terminate and revest in the Agency the estate conveyed to the Developer, subject to all liens and other matters of record, if after the closing and prior to the Agency's issuance of the Release of Construction Covenants for the Phase of Development, the Developer (or its successors in interest) shall: a. fail to start construction of the Phase of Development as required by the DDA for a period of ninety (90) days after written notice thereof from the Agency; or b. abandon or substantially suspend construction of the Phase of Development required by the DDA and fail to resume construction within ninety (90) days after written notice thereof from the Agency; or C. contrary to the provisions of Section 703 of the DDA Transfer or suffer any involuntary Transfer in violation of the DDA, and such Transfer is not rescinded within sixty (60) days of notice thereof from the Agency. For purposes of this Grant Deed, the term "construction" shall mean excavation work or physical construction, but shall not include any grading work completed by Developer on the Parcel prior to the execution date hereof. Such right to reenter, terminate and revest shall be subject to and be limited by, shall not defeat, render invalid or limit, and shall be subordinate to: 1. Any mortgage or deed of trust permitted by the DDA; or 882/015610-0094 _3_ 737414.05 a12/01/06 2. Any rights or interests provided in the DDA for the protection of the holders of such mortgages or deeds of trust. Upon the revesting in the Agency of title to the Parcel as provided in this Section 71 the Agency shall, pursuant to its responsibilities under state law, use its reasonable efforts to resell the Parcel as soon and in such manner as the Agency shall find feasible and consistent with the objectives of such law and of the Redevelopment Plan, as it exists or may be amended, to a qualified and responsible party or parties (as determined by the Agency) who will assume the obligation of making or completing the Phase of Development, or such improvements in their stead as shall be satisfactory to the Agency and in accordance with the uses specified for such Parcel or part thereof in the Redevelopment Plan. Upon such resale of the Parcel, the net proceeds thereof after repayment of any mortgage or deed of trust encumbering the Parcel which is permitted by the DDA, shall be applied: i. First, to reimburse the Agency, on its own behalf or on behalf of the City, all costs and expenses incurred by the Agency, excluding City and Agency staff costs, but specifically, including, but not limited to, any expenditures by the Agency or the City in connection with the recapture, management and resale of the Parcel or part thereof (but less any income derived by the Agency from the Parcel or part thereof in connection with such management); all taxes, assessments and water or sewer charges with respect to the Parcel or part thereof which the Developer has not paid; any payments made or necessary to be made to discharge any encumbrances or liens existing on the Parcel or part thereof at the time or revesting of title thereto in the Agency, or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the improvements or any part thereof on the Parcel, or part thereof; and any amounts otherwise owing the Agency, and in the event additional proceeds are thereafter available, then ii. Second, to reimburse the Developer, its successor or transferee, up to the amount equal to the sum of (a) the costs incurred by Developer for the acquisition and development of the Parcel and for the improvements existing on the Parcel at the time of the reentry and possession, less (b) any gains or income withdrawn or made by the Developer from the Parcel or the improvements thereon. Any balance remaining after such reimbursements shall be retained by the Agency as its property. The rights established in this Section 7 are not intended to be exclusive of any other right, power or remedy, but each and every such right, power, and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy authorized herein or now or hereafter existing at law or in equity. These rights are to be interpreted in light of the fact that the Agency will have conveyed the Parcel to the Developer for redevelopment purposes, particularly for development of the Phase of Development, and not for speculation in undeveloped land. 8. Violations Do Not Impair Liens. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or 882/015610-0084 _4_ 737414.05 al2/01/06 L" render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest permitted by Section 703 of the DDA. 9. Covenants Run With Land. All covenants contained in this Grant Deed shall be covenants running with the land. All of Developer's obligations hereunder, except as otherwise provided hereunder, shall terminate and shall become null and void upon the expiration of the effectiveness of the Redevelopment Plan. Every covenant contained in this Grant Deed against discrimination contained in paragraph 6 of this Grant Deed shall remain in effect in perpetuity. 10. Covenants For Benefit of Agency. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency, and such covenants shall run in favor of the Agency for the entire period during which such covenants shall be in force and effect, without regard to whether the Agency is or remains an owner of any land or interest therein to which such covenants relate. The Agency, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. The covenants contained in this Grant Deed, without regard to technical classification, shall not benefit or be enforceable by any owner of any other real property within or outside the Project Area, or any person or entity having any interest in any other such realty. 11. Amendments to Redevelopment Plan. No amendment to the Redevelopment Plan shall require the consent of the Developer, but no such amendment shall diminish or restrict the Developer's rights or expand the Developer's obligations hereunder or under the DDA without the Developer's consent, except as required by State law. AGENCY: LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic Date: By. Executive Director ATTEST: Secretary of the Agency APPROVED AS TO FORM: RUTAN & TUCKER, LLP M. Katherine Jenson Agency Counsel 882/015610-0064 _5_ 737414.05 al2/01/06 � IM Date: DEVELOPER: LDD SILVERROCK, LLC, a Delaware limited liability company 0 Its: 882/015610-0084 6 ' 737414.05 a12/01/06 AMI STATE OF CALIFORNIA ) ) ss COUNTY OF On a Notary Public, personally appeared before me, personally known to me (or 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. Witness my hand and official seal. [SEAL] STATE OF CALIFORNIA ) ) ss COUNTY OF On a Notary Public, personally appeared Notary Public before me, personally known to me (or proved to me on the basis of satisfactory evidence) to oe me 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. Witness my hand and official seal. Notary Public [SEAL] 882/015610-0084 _7_ 737414.05 a12101/06 DRAFT EXHIBIT A LEGAL DESCRIPTION OF PARCEL [TO BE INSERTED] 882/015610-0084 737414 05 a12/01/06 DRAFT ATTACHMENT NO.5 SCOPE OF DEVELOPMENT L GENERAL SUMMARY This document outlines the general requirements for the improvements to be constructed on the Property. Specific details are addressed in the SilverRock Specific Plan 2006-080, as amended by Resolution No. 2006-083, which was duly adopted by the City Council on July 18, 2006 ("Specific Plan"), and in the construction plans that will be prepared for the development. The Property is identified as APN , located at the southwest intersection of Jefferson Street and Avenue 52 in the City of La Quinta, and is approximately 58.97 acres in size. The Specific Plan provides for the development of a commercial development project that contains all of the following: a luxury boutique hotel and related amenities, a resort hotel and related amenities, resort -style condominium/casitas units, two parking structures, and a resort retail village. The Specific Plan sets forth the maximum number of Units that may be developed in (i) the Boutique Hotel, (ii) the Ranch Villas Development, and (iii) the Resort Hotel, Golf Casitas Development, and Lake Casitas Development. Notwithstanding that this Agreement does not set forth a "minimum" number of Units that must be developed in each Phase of Development, Developer acknowledges that the Agency's intent in entering into this Agreement is to achieve the maximum number of Units that may be designed and developed pursuant to the Specific Plan in each Phase of Development. H. PROJECT COMPONENTS A. Boutique Hotel The Boutique Hotel shall be a Four Star Quality or higher luxury hotel with expanded amenities, a high level of service and a unique architectural theme. The Boutique Hotel shall provide an exceptional and personalized level of accommodation, services, and facilities. Facilities shall be designed for short-term stay and shall include a management program to encourage rental of any Condominium Hotel Units when not in use by their owners. The Boutique Hotel shall contain not more than 225 Units. All Units in the Boutique Hotel may be sold as Condominium Hotel Units. All Units will have full access to resort amenities and services. A minimum of 35 of the Units shall have a Lock -Off Feature. The public spaces in the Boutique Hotel, including restrooms, restaurants and meeting spaces, shall be furnished with upgraded materials such as granite, marble, specialty lighting, and custom millwork. Distinctive and authentic architectural details such as clay tile, iron gates, fountains, and pavers shall be included throughout. Lobby areas shall feature elegant live plants and floral displays. Services offered shall include, but are not limited to, on -site sales efforts that solicit and/or serve group meetings, turndown service, room service, laundry service, personalized wake up calls, concierge and bell services, secure luggage storage facilities, and covered valet parking. '82/015610-0084 737414.05 a12/01/06 Amenities shall include at least one signature dining restaurant with minimum seating for 80 indoor and 40 outdoor, a well appointed lounge/bar with minimum seating for 40, guest registration lobby of at least 1,500 square feet, a first-class spa and fitness facility of at least 8,000 square feet (sf), at least one fully amenitized pool offering food service and cabanas, and at least 10,000 sf of interior meeting space. A highly upgraded Presidential Suite shall also be included of at least 2,500 sf. Landscaping shall include distinctive entry water features, use of fountains throughout, and substantial landscaping material. Hardscape materials shall include tumbled pavers and tile in courtyard areas. At least 50 percent of required parking shall be provided in covered or trellised parking areas. At least 150 parking spaces shall be included in a parking structure to be developed on -site. When not in use by the owners, all Units (except Fractional Units) in the Boutique Hotel shall be offered for rental as a part of the Boutique Hotel. Such rental may be offered by the owner of the Unit, a third party rental agent or an agent affiliated with the operator of the Boutique Hotel. All use of all of the Units in the Boutique Hotel, including by the owners thereof, shall be through the Boutique Hotel front desk check -in and check-out procedure, using electronic keys controlled by the operator of the Boutique Hotel. The operator shall have the ability to book all unbooked Units (except Fractional Units) as demand dictates within 2 weeks of the date being requested, and may charge a booking fee for such bookings. All Units in the Boutique Hotel shall be finished with upgraded materials such as stone, wood, and tile flooring, upgraded carpet and pad, granite or tile counters, tile and/or marble baths, decorative wood beam ceilings where applicable, flat screen televisions, LodgeNet or equal services, 2 telephones, kitchenette with top -of -the -line or equal appliances, custom fireplaces in some units, luxurious bedding, and top-quality furnishings, uniformity of units/furnishings. B. Ranch Villas Development The Ranch Villas Development shall contain approximately fifty (50) Units, and all of such Units shall have a Lock -Off Feature. All Units in the Ranch Villas Development may be sold as Condominium Hotel Units. Resort pool area(s) shall be provided for the Units in the Ranch Villas Development. No pools shall be owned by an individual Unit. When not in use by the owners, all Units (except Fractional Units) in the Ranch Villas Development shall be offered for rental as a part of the Boutique Hotel. Such rental may be offered by the owner of the Unit, a third party rental agent or an agent affiliated with the operator of the Boutique Hotel. All use of all of the Units in the Ranch Villas Development, including by the owners thereof, shall be through the Boutique Hotel front desk check -in and check-out procedure, using electronic keys controlled by the operator of the Boutique Hotel. The operator shall have the ability to book all unbooked Units (except Fractional Units) as demand dictates within 2 weeks of the date being requested, and may charge a booking fee for such bookings. All Units in the Ranch Villas Development are to be finished with upgraded materials such as stone, wood, and tile flooring, upgraded carpet and pad, granite or tile counters, tile and/or marble baths, decorative wood beam ceilings where applicable, flat screen televisions, 882/015610-0084 -2- 737414.05 a12/01/06 LodgeNet or equal services, 2 telephones, kitchenette with top -of -the -line appliances, custom fireplaces in some Units, luxurious bedding, and top quality furnishings. C. Resort Hotel/Golf Casitas Development/Lake Casitas Development 1. Resort Hotel The Resort Hotel shall be a Four -Star Quality or higher luxury hotel with expanded resort amenities, specifically designed to create a single source location for guests to enjoy their stay. The Resort Hotel shall contain at least ninety (90) Hotel Units that are owned and operated by Developer or an entity authorized or approved by the Agency pursuant to Section 703. The public spaces in the Resort Hotel, including restrooms, restaurants and meeting spaces shall be furnished with upgraded materials such as granite, marble, specialty lighting, and custom millwork. Distinctive and authentic architectural details consistent with the resort theme shall be included throughout. Lobby areas shall be expansive and shall feature elegant live plants, floral displays, and outstanding views. Services offered shall include, but are not limited to, on -site sales efforts that solicit and/or serve group meetings, turndown service, room service, laundry service, personalized wake up calls, pool services, activities center, kids clubs, excursions, concierge and bell services, secure luggage storage facilities, and covered valet parking. Amenities shall include at least one signature dining restaurant with minimum seating for 80 indoor and 30 outdoor, a well appointed lounge/bar with seating for a minimum of 40, a three -meal dining option seating at least 100 indoor and 60 outdoor, guest registration lobby of at least 3,500 sf, a first-class spa and fitness facility of at least 12,000 sf, a kids club and teen center of at least 2,500 sf, at least two fully amenitized resort pools offering food service, cabanas and swim areas for children, one adult pool, and at least 20,000 sf of interior meeting space. Landscaping shall include distinctive entry features, use of themed elements, and mature landscaping material. At least 30 percent of the required parking shall be provided in covered or trellised parking areas. At least 150 parking spaces shall be provided in a parking structure to be developed on -site. All Units are to be finished with upgraded materials such as stone, wood, and tile flooring, upgraded carpet and pad, granite or tile counters, tile and/or marble baths, decorative wood beam ceilings where applicable, flat screen televisions, LodgeNet or equal services, 2 telephones, kitchenette with top -of -the -line appliances, custom fireplaces in some units, luxurious bedding, and top quality furnishings. 2. Lake Casitas Development and Golf Casitas Development The Lake Casitas Development shall contain approximately fifty (50) Units; the Golf Casitas Development shall contain approximately 72 Units; and all of such Units shall have a Lock -Off Feature. All Units in the Lake Casitas Development and in the Golf Casitas Development may be sold as Condominium Hotel Units. Resort pool area(s) shall be provided 882/015610-0084 -3- 737414.05 al2/01/06 for the Units in the Lake Casitas Development and for the Units in the Golf Casitas Development. No pools shall be owned by an individual Unit. When not in use by the owners, all Units (except Fractional Units) in the Lake Casitas Development and in the Golf Casitas Development shall be offered for rental as a part of the Resort Hotel. Such rental may be offered by the owner of the Unit, a third party rental agent or an agent affiliated with the operator of the Resort Hotel. All use of all of the Units in the Lake Casitas Development and in the Golf Casitas Development, including by the owners thereof, shall be through the Resort Hotel front desk check -in and check-out procedure, using electronic keys controlled by the operator of the Resort Hotel. The operator shall have the ability to book all unbooked Units (except Fractional Units) as demand dictates within 2 weeks of the date being requested, and may charge a booking fee for such bookings. All Units in the Lake Casitas Development and in the Golf Casitas Development are to be finished with upgraded materials such as stone, wood, and tile flooring, upgraded carpet and pad, granite or tile counters, tile and/or marble baths, decorative wood beam ceilings where applicable, flat screen televisions, LodgeNet or equal services, 2 telephones, kitchenette with top -of -the -line appliances, custom fireplaces in some Units, luxurious bedding, and top quality furnishings. 3. Unit/Lock-Off Feature Requirements. The Resort Hotel, Golf Casitas Development, and Lake Casitas Development, collectively, shall contain not more than 405 Units, and at least 115 of such Units shall have a Lock -Off Feature. 4. Fractional Units. Up to 30% of all Units which are developed, other than those which must be retained as Hotel Units, may be sold as Fractional Units, of which no more than ten percent (10%) of the aggregate number of Fractional Units may be developed within the main building of the Resort Hotel. D. Resort Retail Village Development The Resort Retail Village Development shall consist of specialty retail development intended to provide a variety of additional retail, restaurant, and entertainment options to hotel guests and members of the local community. This mixed -use village may also include resort - oriented office, live -work loft units, and multi -family residential units. The design of the Resort Retail Village Development shall be complimentary to the Resort Hotel, the Golf Casitas Development and the Lake Casitas Development in terms of both quality and aesthetics. Pedestrian access shall be designed to encourage a seamless flow between resort accommodations and resort retail village. Tenants permitted in the Resort Retail Village Development shall include, but not be limited to, themed or signature national presence restaurants, local and national retailers, banks, 882/015610-0084 -4- 737414.05 al2/01/06 general store, brokerage, art galleries, gourmet market and resort -oriented offices. Other uses may be approved in writing by the Director of Community Development III. DEVELOPMENT CONCEPT The Property shall be improved by the Developer in accordance with the provisions of this Agreement, the Specific Plan, and all applicable codes, ordinances, and statutes including requirements and procedures set forth in the La Quinta Municipal Code, and the Redevelopment Plan regulations adopted in conjunction with or subsequent to execution of this Agreement. IV. ON -SITE DEVELOPMENT AND IMPROVEMENTS Developer shall prepare such plans, reports, and studies, and obtain such permits and approvals as required, including, but not limited to, grading plans for construction of the Project. Plans shall be prepared by a licensed civil engineer in good standing and subject to the approval of the Director of Public Works. Developer shall grant and permit all necessary and appropriate utility easements and rights for the development of the Project, including but not limited to sanitary sewers, storm drains, water, electrical power, telecommunications, natural gas, cable television, etc. V. LANDSCAPING Developer shall be responsible to fully landscape the Project in accordance with the Specific Plan and landscape plans approved by the City. VI. ON -SITE INFRASTRUCTURE IMPROVEMENTS Developer shall be responsible for the construction of all on -site infrastructure improvements that may be identified per the Specific Plan including, but not limited to, all required internal utilities. All such construction shall be done to City standards. Additionally, Developer shall be responsible for obtaining and delivering to the City such bonds or other improvement security as City may require in accordance with applicable law, including but not limited to payment and performance bonds. VIL DEVELOPMENT STANDARDS All development on the Property shall conform to the development standards set forth in the Specific Plan, and other applicable City codes and development standards. 882/015610-0084 737414.05 a14/01/06 DRAFT ATTACHMENT NO.6 DEVELOPMENT AGREEMENT [See following Document # 750537] 882/015610-0084 737414.05 a12/01/06 6 DRAFT ATTACHMENT NO.7 FORM OF OPTION AGREEMENT [See following Document # ] 882/015610-0084 737414.05 a12/01/06 DRAFT ATTACHMENT NO.8 RELEASE OF CONSTRUCTION COVENANTS [See Following Pages] 882/015610-0084 737414.05 a12/01/06 DRAFT RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: LDD SilverRock, LLC 74-001 Reserve Drive Indian Wells, CA 92210 Attn: Theodore R. Lennon, Jr. This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383 RELEASE OF CONSTRUCTION COVENANTS THIS RELEASE OF CONSTRUCTION COVENANTS (the "Release") is made by the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), in favor of LDD SILVERROCY, LLC, a Delaware limited liability company (the "Developer"), as of RECITALS A. The Agency and the Developer have entered into that certain Disposition and Development Agreement (the "DDA") dated , 2006 concerning the redevelopment of certain real property situated in the City of La Quinta, California, a portion of which is more fully described in Exhibit "A" attached hereto and made a part hereof (the "Property"). B. As referenced in Section 310 of the DDA, the Agency is required to furnish the Developer or its successors with a Release of Construction Covenants upon Developer's completion of construction of the [Insert applicable Phase of Development, as that term is described in Section 100 of the DDA] (as defined in Section 100 of the DDA), which Release is required to be in such form as to permit it to be recorded in the Recorder's office of Riverside County. This Release is conclusive determination of satisfactory completion of the construction and development required by the DDA. C. The Agency has conclusively determined that such construction and development has been satisfactorily completed. NOW, THEREFORE, the Agency hereby certifies as follows: 1. The [Insert applicable Phase of Development, as that term is described in Section 100 of the DDA]to be constructed by the Developer has been fully and satisfactorily completed in conformance with the DDA. Any operating requirements and all use, maintenance or nondiscrimination covenants contained in the DDA and other documents executed and recorded pursuant to the DDA shall remain in effect and enforceable according to their terms. 4 �i j 862/015610-00&t 737414.05 a12/01/06 DRAFT 2. This Release of Construction Covenants does not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of a mortgage or any insurer of a mortgage security money loaned to finance the work of construction if improvements and development of the Property, or any part hereof. 3. This Release of Construction Covenants does not denote completion of any work required to be completed, other than on the Property. 4. This Release of Construction Covenants is not a notice of completion as referred to in Section 3093 of the California Civil Code. 5. Nothing contained in this instrument shall modify in any other way any other provisions of the DDA. 982/015610-0084 _2_ 737414.05 a17101/06 DRAFT IN WITNESS WHEREOF, the Agency has executed this Release as of the date set forth above. ATTEST: Agency Secretary LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic Its: APPROVED BY DEVELOPER: LDD SILVERROCK, LLC, a Delaware limited liability company M Its: 882/015610-0094 _3_ 737414.05 .12/01/06 DRAFT EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY [TO BE ATTACHED] F 882/015610-0094 _4_ 737414.05 a@/01/06 DRAFT STATE OF CALIFORNIA ) ) ss COUNTY OF On a Notary Public, personally appeared before me, personally known to me (or proved to me on the basis of satistactory eviaence) to De LIM 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. Witness my hand and official seal. [SEAL] STATE OF CALIFORNIA ) ss COUNTY OF ) On a Notary Public, personally appeared Notary Public before me, personally known to me (or 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. Witness my hand and official seal. Notary Public [SEAL] 882/015610-0084 _5_ 737414.05 a12101/06 DRAFT ATTACHMENT NO.9 SCHEDULE OF PERFORMANCE [See attached individual schedules for each of the (i) Boutique Hotel, (ii) Ranch Villas Development, (iii) Resort Hotel, (iv) Resort Retail Village Development, (v) Black Box, (vi) Lake Casitas Development, and (vi) Golf Casitas Development] This Schedule of Performance describes each of the Ranch Villas Development, Resort Retail Village Development, Black Box, Lake Casitas Development, and Golf Casitas Development as constructed in a single phase. In the event Developer desires to construct the foregoing Phases of Development in more than one phase, Developer shall submit to the Executive Director and obtain his or her approval of, a Phasing Plan. 1 All days are calendar days in this Schedule of Performance. 882/015610-0084 737414.05 a12/01/06 DRAFT SCHEDULE OF PERFORMANCE FOR BOUTIQUE HOTEL 982/015610-0084 737414.05 .12101/06 DRAFT SCHEDULE OF PERFORMANCE FOR BOUTIQUE HOTEL Item of Performance Time for Completion 1. Developer execution of DDA. Prior to Agency's approval of final draft. 2. Developer and Agency open Escrow. Within 10 days after Effective Date. 3. Developer's submission of complete Site Within 4 months after Effective Date of DDA. Development Permit Application "SDPA", which will include: • Detailed Site Plan • Floor Plans and Layout • Elevations • Conceptual Landscaping • Preliminary Grading Plan 4. Review of SDPA by all applicable City* Agency will use reasonable efforts to cause such departments. review within 45 days after Developer's submission of SDPA. 5. Agency response to Developer as to City Within 14 days after receipt of final comments from comments on SDPA. city. 6. Developer and City responses. Developer will respond to any request within 14 days and Agency will use reasonable efforts to cause City to respond to any submission within 14 days. 7. Agency publishes Notice of Public Hearing Within 10 days after Developer responds to all of for SDPA before the Planning City's comments in the preceding section. Commission. 8. Planning Commission Public Hearing and Approximately 10 days after publication. consideration of SDPA. 9. City Council Public Hearing and Approximately 30 days after approval by Planning consideration of SDPA Commission. 10. City's issuance of SDPA and conditions. Within 7 da s after approval by City Council. 11. Developer's preparation of final grading Within 180 days after City's issuance of SDPA. plans and Design/Construction Development Drawings for Boutique Hotel. 12. Developer's submission of evidence of Within 20 days after Developer's completion of financing necessary to complete the Design/Construction Development Drawings for Boutique Hotel. Boutique Hotel. 13. Agency review and approval, approval with Within 30 days after Agency's receipt of evidence of conditions, or denial of Developer's financing. evidence of financing for Boutique Hotel. 14. Review of final grading plans and Agency will use reasonable efforts to cause such Design/Construction Development review within 45 days after Developer's submittal. Drawings by all applicable City* departments. 882/015610-0084 737414 05 al2/01/06 DRAFT Item of Performance Time for Completion 15. Developer conducts its inspections of Not later than 30 days prior to scheduled date for physical and environmental condition of Closing. property and procures commercial general insurance. 16. _jjLbj[ity Agency response to Developer as to City Within 7 days after receipt of final comments from comments on final grading plans and City. Design/Construction Development Drawings. 17. Developer and City responses. Developer will respond to any request within 15 days and Agency will use reasonable efforts to cause City to respond to any submittal within 7 days. 18. Developer obtains bids for construction of Within 1 month after City approves final grading the Boutique Hotel. plans and Design/Construction Development Drawin s. 19. Developer and Agency execute and deposit Three (3) days prior to the scheduled Closing Date. into escrow the City Declaration of CC&Rs, Option Agreement, Grant Deed, Water Agreement, Maintenance Agreement, Memorandum of DDA, and all additional funds and documents required under this Agreement in order to close the Escrow, including the closing costs for which each party is responsible to pa. 20. Developer deposits into Escrow the Three (3) days prior to the scheduled Closing Date. Purchase Price for the Boutique Hotel Parcel. 21. Escrow closes and Developer acquires fee After completion of Items 1-20 and the satisfaction or title to Boutique Hotel Parcel. waiver of all of Agency's Conditions Precedent to the Closing and Developer's Conditions Precedent to the Closing, but in no event later than the date that is 20 months after the Effective Date; provided, however, that (i) the Executive Director of the Agency may extend such date by up to six (6) additional months, pursuant to Section 202.5, and (ii) if the Agency's or City's review time in any of the foregoing Items exceeds the time allotted for such review, then such date shall automatically be extended by the number of days by which the Agency or City exceeded its allotted time. 22. Developer pulls grading permit for Within 15 days after Close of Escrow. Boutique Hotel and commences Eading 23. Developer pulls building permit for Within 15 days after Close of Escrow. Boutique Hotel and commences building. 24. Developer commences construction of Within 60 days after Close of Escrow. Bouti ue Hotel. 882/015610-0084 _ 5 3737414.05 al2/01/06 _2 DRAFT Item of Performance Time for Completion 25. Developer submits Developer CC&Rs to Within 90 days prior to anticipated date for City's Agency for approval. issuance of first temporary or final certificate of occul)ancy for Boutique Hotel. 26. Agency reviews Developer CC&Rs. Within 30 days after submittal. 27. Developer's completion of Phase One of Within 24 months after commencement of Boutique Hotel. construction for Boutique Hotel. 28. Developer's completion of Boutique Hotel. Within 36 months after commencement of construction for Boutique Hotel. * Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. 882/015610-OO8-t -3- 737414.05 a12101/06 DRAFT SCHEDULE OF PERFORMANCE FOR RANCH VILLAS DEVELOPMENT 882/0I5610-008-t 737414.05 ai2/01/06 DRAFT SCHEDULE OF PERFORMANCE FOR RANCH VILLAS DEVELOPMENT Item of Performance Time for Completion 1. Developer execution of DDA. Prior to Agency's approval of final draft. 2. Developer and Agency open Escrow. Within 10 days after Effective Date. 3. Developer's submission of complete Site Within 4 months after Effective Date of DDA. Development Permit Application "SDPA", which will include: • Detailed Site Plan • Floor Plans and Layout • Elevations • Conceptual Landscaping • Prelimiriml Grading Plan 4. Review of SDPA by all applicable City* Agency will use reasonable efforts to cause such departments. review within 45 days after Developer's submission of SDPA. 5. Agency response to Developer as to City Within 14 days after receipt of final comments from comments on SDPA. city. 6. Developer and City responses. Developer will respond to any request within 14 days and Agency will use reasonable efforts to cause City to respond to an submission within 14 days. 7. Agency publishes Notice of Public Hearing Within 10 days after Developer responds to all of for SDPA before the Planning City's comments in the preceding section. Commission. 8. Planning Commission Public Hearing and Approximately 10 days after publication. consideration of SDPA. 9. City Council Public Hearing and Approximately 30 days after approval by Planning consideration of SDPA Commission. 10. City's issuance of SDPA and conditions. Within 7 days after approval by Ci Council. 11. Developer's preparation of final grading Within 180 days after City's issuance of SDPA. plans and Design/Construction Development Drawings for Ranch Villas Develo ment. 12. Developer's submission of evidence of Within 20 days after Developer's completion of financing necessary to complete the Ranch Design/Construction Development Drawings for Villas Develo ment. Ranch Villas Development. 13. Agency review and approval, approval with Within 30 days after Agency's receipt of evidence of conditions, or denial of Developer's financing. evidence of financing for Ranch Villas Develo ment. 14. Review of final grading plans and Agency will use reasonable efforts to cause such Design/Construction Development review within 45 days after Developer's submittal. Drawings by all applicable City* departments. 892/015610-0084 _2_ 737414.05 al2/01/06 DRAFT Item of Performance Time for Completion 15. Developer conducts its inspections of Not later than 30 days prior to scheduled date for physical and environmental condition of Closing. property and procures commercial general liability insurance. 16. Agency response to Developer as to City Within 7 days after receipt of final comments from comments on final grading plans and City. Design/Construction Development Drawin s. 17. Developer and City responses. Developer will respond to any request within 15 days and Agency will use reasonable efforts to cause City to respond to any submittal within 7 days. 18. Developer obtains bids for construction of Within 1 month after City approves final grading the Ranch Villas Development. plans and Design/Construction Development Drawings. 19. Developer and Agency execute and deposit Three (3) days prior to the scheduled Closing Date. into escrow the City Declaration of CC&Rs, Option Agreement, Grant Deed, Water Agreement, Maintenance Agreement, Memorandum of DDA, and all additional funds and documents required under this Agreement in order to close the Escrow, including the closing costs for which each party is responsible to pa. 20. Developer deposits into Escrow the Three (3) days prior to the scheduled Closing Date. Purchase Price for the Ranch Villas Development Parcel. 21. Escrow closes and Developer acquires fee After completion of Items 1-20 and the satisfaction or title to Ranch Villas Development Parcel. waiver of all of Agency's Conditions Precedent to the Closing and Developer's Conditions Precedent to the Closing, but in no event later than the date that is 20 months after the Effective Date; provided, however, that (i) the Executive Director of the Agency may extend such date by up to six (6) additional months, pursuant to Section 202.5, and (ii) if the Agency's or City's review time in any of the foregoing Items exceeds the time allotted for such review, then such date shall automatically be extended by the number of days by which the Agency or City exceeded its allotted time. 22. Developer pulls grading permit for Ranch Within 15 days after Close of Escrow. Villas Development and commences adin 23. Developer pulls building permit for Ranch Within 15 days after Close of Escrow. Villas Development and commences buildin . 24. Developer commences construction of �Wiithindays after Close of Escrow. Ranch Villas Develo ment. 882/015610-0084 _3- �11 657 737414.05 al2/01/06 DRAFT Item of Performance Time for Completion 25. Developer submits Developer CC&Rs to Within 90 days prior to anticipated date for City's Agency for approval. issuance of temporary or final certificate of occupancy. 26. Agency reviews CC&Rs. Within 30 days after submittal. 27. Developer's completion of Phase One of Within 24 months after commencement of Ranch Villas Development. construction for Ranch Villas Development. 28. Developer's completion of Ranch Villas Within 36 months after commencement of Development. construction for Ranch Villas Development. * Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. 882/015610-0084 _4_ 737414.05 a12/01/06 o.. SCHEDULE OF PERFORMANCE FOR RESORT HOTEL 882/015610-0084 737414 05 a12/01/06 DRAFT SCHEDULE OF PERFORMANCE FOR RESORT HOTEL Item of Performance Time for Completion 1. Developer execution of DDA. Prior to Agency's approval of final draft. 2. Developer and Agency open Escrow. Within 10 days after the Effective Date. 3. Developer's submission of complete Site Within 8 months after Closing for Boutique Hotel Development Permit Application "SDPA", Parcel. which will include: • Detailed Site Plan • Floor Plans and Layout • Elevations • Conceptual Landscaping • Preliminary Grading Plan 4. Review of SDPA by all applicable City* Agency will use reasonable efforts to cause such departments. review within 45 days after Developer's submission of SDPA. 5. Agency response to Developer as to City Within 14 days after receipt of final comments from continents on SDPA. city. 6. Developer and City responses. Developer will respond to any request within 14 days and Agency will use reasonable efforts to cause City to respond to any submission within 14 days. 7. Agency publishes Notice of Public Hearing Within 10 days after Developer responds to all of for SDPA before the Planning City's comments in the preceding section. Commission. 8. Planning Commission Public Hearing and Approximately 10 days after publication. consideration of SDPA. 9. City Council Public Hearing and Approximately 30 days after approval by Planning consideration of SDPA Commission. 10. Ci 's issuance of SDPA and conditions. Within 7 days after approval b CityCouncil. 11. Developer's preparation of final grading Within 240 days after City's issuance of SDPA. plans and Design/Construction Development Drawings for Resort Hotel. 12. Developer's submission of evidence of Within 20 days after Developer's completion of financing necessary to complete the Resort Design/Construction Development Drawings for Hotel. Resort Hotel. 13. Agency review and approval, approval with Within 30 days after Agency's receipt of evidence of conditions, or denial of Developer's financing. evidence of financing for Resort Hotel. 14. Review of final grading plans and Agency will use reasonable efforts to cause such Design/Construction Development review within 45 days after Developer's submittal. Drawings by all applicable City* departments. 882/015610-0084 737414.05 a12/01/06 II AM Item of Performance Time for Completion 15. Developer conducts its inspections of Not later than 30 days prior to scheduled date for physical and environmental condition of Closing. property and procures commercial general liabilitv insurance. 16. Agency response to Developer as to City Within 7 days after receipt of final comments from comments on final grading plans and City. Design/Construction Development Drawin s. 17. Developer and City responses. Developer will respond to any request within 15 days and Agency will use reasonable efforts to cause City to respond to any submittal within 7 days. 18. Developer obtains bids for construction of Within 2 months after City approves final grading the Resort Hotel. plans and Design/Construction Development Drawings. 19. Developer and Agency execute and deposit Three (3) days prior to the scheduled Closing Date. into escrow the City Declaration of CC&Rs, Option Agreement, Grant Deed, Water Agreement, Maintenance Agreement, and all additional funds and documents required under this Agreement in order to close the Escrow, including the closing costs for which each party is res onsible to a . 20. Developer deposits into Escrow the Three (3) days prior to the scheduled Closing Date. Purchase Price for the Resort Hotel Parcel. 21. Escrow closes and Developer acquires fee After completion of Items 1-20 and the satisfaction or title to Resort Hotel Parcel. waiver of all of Agency's Conditions Precedent to the Closing and Developer's Conditions Precedent to the Closing, but in no event later than the date that is 30 months after the Closing for the Boutique Hotel Parcel; provided, however, that (i) the Executive Director of the Agency may extend such date by up to six (6) additional months, pursuant to Section 202.5, and (ii) if the Agency's or City's review time in any of the foregoing Items exceeds the time allotted for such review, then such date shall automatically be extended by the number of days by which the Agency or City exceeded its allotted time. 22. Developer pulls grading permit for Resort Within 15 days after Close of Escrow. Hotel and commences gradin 23. Developer pulls building permit for Resort Within 15 days after Close of Escrow. Hotel and commences buildin . 24. Developer commences construction of Within 60 days after Close of Escrow. Resort Hotel. 882/015610-0084 -2- 737414.05 al2/01/06 Item of Performance Time for Completion 25. Developer submits Developer CC&Rs to Within 90 days prior to anticipated date for City's Agency for approval. issuance of first temporary or final certificate of occupancy for Resort Hotel. 26. Agency reviews Developer CC&Rs. Within 30 days after submittal. 27. Developer's completion of Phase One of Within 24 months after commencement of Resort Hotel. construction for Resort Hotel. 28. Developer's completion of Phase One of Within 36 months after commencement of Resort Hotel. construction for Resort Hotel. 29. Developer's completion of Resort Hotel. Within 36 months after commencement of construction for Resort Hotel. * Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. j0 882/015610-0084 737414.05 al2/01/06 SCHEDULE OF PERFORMANCE FOR RESORT RETAIL VILLAGE DEVELOPMENT '82/015610-0084 737414.05 al2/01/06 DRAFT SCHEDULE OF PERFORMANCE FOR RESORT RETAIL VILLAGE DEVELOPMENT Item of Performance Time for Completion 1. Developer execution of DDA. Prior to Agency's approval of final draft. 2. Developer and Agency open Escrow. Within 1Oda s after Effective Date. 3. Developer's submission of complete Site Within 8 months after Closing for Boutique Hotel Development Permit Application "SDPA", Parcel. which will include: • Detailed Site Plan • Floor Plans and Layout • Elevations • Conceptual Landscaping • Preliminary Grading Plan 4. Review of SDPA by all applicable City* Agency will use reasonable efforts to cause such departments. review within 45 days after Developer's submission of SDPA. 5. Agency response to Developer as to City Within 14 days after receipt of final comments from comments on SDPA. city. 6. Developer and City responses. Developer will respond to any request within 14 days and Agency will use reasonable efforts to cause City to respond to any submission within 14 days. 7. Agency publishes Notice of Public Hearing Within 10 days after Developer responds to all of for SDPA before the Planning City's comments in the preceding section. Commission. 8. Planning Commission Public Hearing and Approximately 10 days after publication. consideration of SDPA. 9. City Council Public Hearing and Approximately 30 days after approval by Planning consideration of SDPA. Commission. 10. City's issuance of SDPA and conditions. Within 7 days after approval by Ci Council. 11. Developer's preparation of final grading Within 240 days after City's issuance of SDPA. plans and Design/Construction Development Drawings for Resort Retail Village Development. 12. Developer's submission of evidence of Within 20 days after Developer's completion of financing necessary to complete Resort Design/Construction Development Drawings for Retail Village Develo ment. Resort Retail Village Development. 13. Agency review and approval, approval with Within 30 days after Agency's receipt of evidence of conditions, or denial of Developer's financing. evidence of financing for Resort Retail Village Development. 14. Review of final grading plans and Agency will use reasonable efforts to cause such Design/Construction Development review within 45 days after Developer's submittal. Drawings by all applicable City* departments. u� 682/015610-0084 737414.05 aIV(11106 DRAFT Item of Performance Time for Completion 15. Developer conducts its inspections of Not later than 30 days prior to scheduled date for physical and environmental condition of Closing. property and procures commercial general liability insurance. 16. Agency response to Developer as to City Within 7 days after receipt of final comments from comments on final grading plans and City. Design/Construction Development Drawin s. 17. Developer and City responses. Developer will respond to any request within 15 days and Agency will use reasonable efforts to cause City to respond to any submittal within 7 days. 18. Developer obtains bids for construction of Within 2 months after City approves final grading the Resort Retail Village Development. plans and Design/Construction Development Drawings. 19. Developer and Agency execute and deposit Three (3) days prior to the scheduled Closing Date. into escrow the Option Agreement, Grant Deed, Water Agreement, Maintenance Agreement, and all additional funds and documents required under this Agreement in order to close the Escrow, including the closing costs for which each party is responsible to pay. 20. Developer deposits into Escrow the Three (3) days prior to the scheduled Closing Date. Purchase Price for the Resort Retail Village Parcel. 21. Escrow closes and Developer acquires fee After completion of Items 1-20 and the satisfaction or title to Resort Retail Village Parcel. waiver of all of Agency's Conditions Precedent to the Closing and Developer's Conditions Precedent to the Closing, but in no event later than the date that is 30 months after the Closing for the Boutique Hotel Parcel; provided, however, that (i) the Executive Director of the Agency may extend such date by up to six (6) additional months, pursuant to Section 202.5, and (ii) if the Agency's or City's review time in any of the foregoing Items exceeds the time allotted for such review, then such date shall automatically be extended by the number of days by which the Agency or City exceeded its allotted time. 22. Developer pulls grading permit for Resort Within 15 days after Close of Escrow. Retail Village Development and commences grading 23. Developer pulls building permit for Resort Within 15 days after Close of Escrow. Retail Village Development and commences building. 24. Developer commences construction of TW7Ahi�6O a�after�ofrow. Resort Retail Village Development. 882/015610-0084 737414.05 a12/01/06 "tAM Item of Performance Time for Completion 25, Developer's completion of Resort Retail Within 18 months after commencement of Village Development. construction for Resort Retail Village Development. • Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. 6 882/015610-0064 737414.05 a12/01/06 DRAFT SCHEDULE OF PERFORMANCE FOR BLACK BOX HOTEL 882/015610-0084 737414 05 a12/01/06 w :.xw SCHEDULE OF PERFORMANCE FOR BLACK BOX HOTEL Item of Performance Time for Completion 1. Developer execution of DDA. Prior to Agency's approval of final draft. 2. Developer and Agency open Escrow. Within 10 days after Closing for Boutique Hotel Parcel. 3. Developer's submission of funding Within 4 months after Closing for Boutique Hotel development and operation plan for Black Parcel. Box "Black Box Ian"). 4. Review of Black Box Plan by City and Agency will review and will use reasonable efforts to Agency. cause City to review within 30 days of Developer's submittal of Black Box Plan. 5. Agency response to Developer as to City Within 14 days after receipt of final comments from and Agency comments on Black Box Plan. Ci . 6. Agency, City and Developer responses. Developer will respond to any request within 14 days and Agency will respond and will use reasonable efforts to cause City to respond to any submission within 14 days. 7. Developer's submission of complete Site Within 6 months after Closing for Boutique Hotel Development Permit Application "SDPA", Parcel. which will include: • Detailed Site Plan • Floor Plans and Layout • Elevations • Conceptual Landscaping • Preliminary Grading Plan 8. Review of SDPA by all applicable City* Agency will use reasonable efforts to cause such departments. review within 45 days after Developer's submission of SDPA. 9. Agency response to Developer as to City Within 14 days after receipt of final comments from comments on SDPA. city. 10. Developer and City responses. Developer will respond to any request within 14 days and Agency will use reasonable efforts to cause City to respond to my submission within 14 days. 11. Agency publishes Notice of Public Hearing Within 10 days after Developer responds to all of for SDPA before the Planning City's comments in the preceding section. Commission. 12. Planning Commission Public Hearing and Approximately 10 days after publication. consideration of SDPA. 13. City Council Public Hearing and Approximately 30 days after approval by Planning consideration of SDPA. Commission. 14. Cit 's issuance of SDPA and conditions. Within 7 days after approval by City Council. GG 882/015610-0084 737414 05 a12/01/06 DRAFT Item of Performance Time for Completion 15. Developer's preparation of final grading Within 240 days after City's issuance of SDPA. plans and Design/Construction Drawings for Black Box. -Development 16. Developer's submission of (i) evidence of Within 20 days after Developer's completion of financing necessary to complete the Black Design/Construction Development Drawings for Box and (ii) management and operation Black Box. plan, including proposed transfer to the City or a non-profit public benefit corporation approved by the Ci . 17. Agency review and approval, approval with Within 30 days after Agency's receipt of evidence of conditions, or denial of Developer's financing and Developer's management and operation evidence of financing for Black Box and of plan. Developer's management and operation lan. 18. Review of management and operation plan Agency will review and will use reasonable efforts to by City and Agency. cause City to review within 30 days of Developer's submittal. 19. Agency response to Developer as to City Developer will respond to any request within 14 days and Agency comments on management and and Agency will respond and will use reasonable operation plan. efforts to cause City to respond to any submission within 14 days. 20. Review of final grading plans and Agency will use reasonable efforts to cause such Design/Construction Development review within 45 days after Developer's submittal. Drawings by all applicable City* de artments. 21. Developer conducts its inspections of Not later than 30 days prior to scheduled date for physical and environmental condition of Closing. property and procures commercial general liabilitv insurance. 22. Agency response to Developer as to City Within 7 days after receipt of final comments from comments on final grading plans and City. Design/Construction Development Drawin s. 23. Developer and City responses. Developer will respond to any request within 15 days and Agency will use reasonable efforts to cause City to respond to any submittal within 7 days. 24. Developer obtains bids for construction of Within 2 months after City approves final grading the Black Box. plans and Design/Construction Development Drawings. 25. Developer and Agency execute and deposit Three (3) days prior to the scheduled Closing Date. into escrow the Option Agreement, Grant Deed, Water Agreement, and all additional funds and documents required under this Agreement in order to close the Escrow, including the closing costs for which each paily is res onsible to pay. 882/015610-0084 -2_ 737414.05 al2/01/06 DRAFT Item of Performance Time for Completion 26. Developer deposits into Escrow the Three (3) days prior to the scheduled Closing Date. Purchase Price for the Black Box Parcel. 27. Escrow closes and Developer acquires fee After completion of Items 1-20 and the satisfaction or title to Black Box Parcel. waiver of all of Agency's Conditions Precedent to the Closing and Developer's Conditions Precedent to the Closing, but in no event later than the date that is 30 months after the Closing for the Boutique Hotel Parcel; provided, however, that (i) the Executive Director of the Agency may extend such date by up to six (6) additional months, pursuant to Section 202.5, and (ii) if the Agency's or City's review time in any of the foregoing Items exceeds the time allotted for such review, then such date shall automatically be extended by the number of days by which the Agency or City exceeded its allotted time. 28. Developer pulls grading permit for Black Within 15 days after Close of Escrow. Box and commences grading 29. Developer pulls building permit for Black Within 15 days after Close of Escrow. Box and commences building. 30. Developer commences construction of Within 60 days after Close of Escrow. Black Box. 31. Developer's completion of Black Box. Within 24 months after commencement of construction for Black Box. * Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. r 882/015610-0084 -3- 737414 05 al2/01/06 DRAFT SCHEDULE OF PERFORMANCE FOR LAKE CASITAS DEVELOPMENT 671 882/015610-0084 737414.05 al2/01/06 DRAFT SCHEDULE OF PERFORMANCE FOR LAKE CASITAS DEVELOPMENT Item of Performance Time for Completion 1. Developer execution of DDA. Prior to A enc 's approval of final draft. 2. Developer and Agency open Escrow. Within IOda s after Effective Date. 3. Developer's submission of complete Site Within 19 months after Closing for Boutique Hotel Development Permit Application "SDPA", Parcel. which will include: • Detailed Site Plan • Floor Plans and Layout • Elevations • Conceptual Landscaping • Preliminary Grading Plan 4. Review of SDPA by all applicable City* Agency will use reasonable efforts to cause such departments. review within 45 days after Developer's submission of SDPA. 5. Agency response to Developer as to City Within 14 days after receipt of final comments from comments on SDPA. city. 6. Developer and City responses. Developer will respond to any request within 14 days and Agency will use reasonable efforts to cause City to respond to any submission within 14 days. 7. Agency publishes Notice of Public Hearing Within 10 days after Developer responds to all of for SDPA before the Planning City's comments in the preceding section. Commission. 8. Planning Commission Public Hearing and Approximately 10 days after publication. consideration of SDPA. 9. City Council Public Hearing and Approximately 30 days after approval by Planning consideration of SDPA. Commission. 10. City's issuance of SDPA and conditions. Within 7 da s after approval by City Council. 11. Developer's preparation of final grading Within 180 days after City's issuance of SDPA. plans and Design/Construction Development Drawings for Lake Casitas Develo ment. 12. Developer's submission of evidence of Within 20 days after Developer's completion of financing necessary to complete the Lake Design/Construction Development Drawings for Lake Casitas Development. Casitas Development. 13. Agency review and approval, approval with Within 30 days after Agency's receipt of evidence of conditions, or denial of Developer's financing. evidence of financing for Lake Casitas Develo ment. 14. Review of final grading plans and Agency will use reasonable efforts to cause such Design/Construction Development review within 45 days after Developer's submittal. Drawings by all applicable City* departments. r 882/015610-00&1 _ l 737414.05 al2/01/06 Item of Performance Time for Completion 15. Developer conducts its inspections of Not later than 30 days prior to scheduled date for physical and environmental condition of Closing. property and procures commercial general liability insurance. 16. Agency response to Developer as to City Within 7 days after receipt of final comments from comments on final grading plans and City. Design/Construction Development Drawings. 17. Developer and City responses. Developer will respond to any request within 15 days and Agency will use reasonable efforts to cause City to respond to any submittal within 7 days. 18. Developer obtains bids for construction of Within 1 month after City approves final grading the Lake Casitas Development. plans and Design/Construction Development Drawings. 19. Developer and Agency execute and deposit Three (3) days prior to the scheduled Closing Date. into escrow the City Declaration of CC&Rs, Option Agreement, Grant Deed, Water Agreement, Maintenance Agreement, and all additional funds and documents required under this Agreement in order to close the Escrow, including the closing costs for which each party is responsible to pay. 20. Developer deposits into Escrow the Three (3) days prior to the scheduled Closing Date. Purchase Price for the Lake Casitas Development Parcel. 21. Escrow closes and Developer acquires fee After completion of Items 1-20 and the satisfaction or title to Lake Casitas Development Parcel. waiver of all of Agency's Conditions Precedent to the Closing and Developer's Conditions Precedent to the Closing, but in no event later than the date that is 42 months after the Closing for the Boutique Hotel Parcel; provided, however, that (i) the Executive Director of the Agency may extend such date by up to six (6) additional months, pursuant to Section 202.5, and (ii) if the Agency's or City's review time in any of the foregoing Items exceeds the time allotted for such review, then such date shall automatically be extended by the number of days by which the Agency or City exceeded its allotted time. 22. Developer pulls grading permit for Lake Within 15 days after Close of Escrow. Casitas Development and commences grading 23. Developer pulls building permit for Lake Within 15 days after Close of Escrow. Casitas Development and commences buildin . 24. Developer commences construction of Within 60 days after Close of Escrow. Lake Casitas Development. r w 882/015610-0084 -2_ 737414.05 a12/01/06 DRAFT Item of Performance Time for Completion 25. Developer submits Developer CC&Rs to Within 90 days prior to anticipated date for City's Agency for approval. issuance of first temporary or final certificate of occupancy for Lake Casitas Development. 26. Agency reviews Developer CC&Rs. Within 30 days after submittal. 27. Developer's completion of Lake Casitas Within 24 months after commencement of Develo ment. construction for Lake Casitas Development. * Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. n rr 882/015610-0094 ur 737414.05 a12/01/06 DRAFT SCHEDULE OF PERFORMANCE FOR GOLF CASITAS DEVELOPMENT 882/015610-0064 737414.05 a12/01/06 G DRAFT SCHEDULE OF PERFORMANCE FOR GOLF CASITAS DEVELOPMENT Item of Performance Time for Completion 1. Developer execution of DDA. Prior to Agency's approval of final draft. 2. Developer and Agency open Escrow. Within 10 days after Effective Date. 3. Developer's submission of complete Site Within 25 months after Closing for Boutique Hotel Development Permit Application "SDPA", Parcel. which will include: • Detailed Site Plan • Floor Plans and Layout • Elevations • Conceptual Landscaping • Preliminary Grading Plan 4. Review of SDPA by all applicable City* Agency will use reasonable efforts to cause such departments. review within 45 days after Developer's submission of SDPA. 5. Agency response to Developer as to City Within 14 days after receipt of final comments from comments on SDPA. City. 6. Developer and City responses. Developer will respond to any request within 14 days and Agency will use reasonable efforts to cause City to respond to any submission within 14 days. 7. Agency publishes Notice of Public Hearing Within 10 days after Developer responds to all of for SDPA before the Planning City's comments in the preceding section. Commission. 8. Planning Commission Public Hearing and Approximately 10 days after publication. consideration of SDPA. 9. City Council Public Hearing and Approximately 30 days after approval by Planning consideration of SDPA. Commission. 10. City's issuance of SDPA and conditions. Within 7 days after approval by City Council. 11. Developer's preparation of final grading Within 180 days after City's issuance of SDPA. plans and Design/Construction Development Drawings for Golf Casitas Development. 12. Developer's submission of evidence of Within 20 days after Developer's completion of financing necessary to complete the Golf Design/Construction Development Drawings for Golf Casitas Development. Casitas Development. 13. Agency review and approval, approval with Within 30 days after Agency's receipt of evidence of conditions, or denial of Developer's financing. evidence of financing for Golf Casitas Develo ment. 14. Review of final grading plans and Agency will use reasonable efforts to cause such Design/Construction Development review within 45 days after Developer's submittal. Drawings by all applicable City* departments. r 882/015610-0084 737414.05 a12/01/06 DRAFT Item of Performance Time for Completion 15. Developer conducts its inspections of Not later than 30 days prior to scheduled date for physical and environmental condition of Closing. property and procures commercial general liability insurance. 16. Agency response to Developer as to City Within 7 days after receipt of final comments from comments on final grading plans and City. Design/Construction Development Drawings. 17. Developer and City responses. Developer will respond to any request within 15 days and Agency will use reasonable efforts to cause City to respond to any submittal within 7 days. 18. Developer obtains bids for construction of Within 1 month after City approves final grading the Golf Casitas Development. plans and Design/Construction Development Drawings. 19. Developer and Agency execute and deposit Three (3) days prior to the scheduled Closing Date. into escrow the City Declaration of CC&Rs, Option Agreement, Grant Deed, Water Agreement, Maintenance Agreement, and all additional funds and documents required under this Agreement in order to close the Escrow, including the closing costs for which each party is res onsible to pay. 20. Developer deposits into Escrow the Three (3) days prior to the scheduled Closing Date. Purchase Price for the Golf Casitas Parcel. 21. Escrow closes and Developer acquires fee After completion of Items 1-20 and the satisfaction or title to Golf Casitas Parcel. waiver of all of Agency's Conditions Precedent to the Closing and Developer's Conditions Precedent to the Closing, but in no event later than the date that is 48 months after the Closing for the Boutique Hotel Parcel; provided, however, that (i) the Executive Director of the Agency may extend such date by up to six (6) additional months, pursuant to Section 202.5, and (ii) if the Agency's or City's review time in any of the foregoing Items exceeds the time allotted for such review, then such date shall automatically be extended by the number of days by which the Agency or City exceeded its allotted time. 22. Developer pulls grading permit for Golf Within 15 days after Close of Escrow. Casitas Development and commences grading 23. Developer pulls building permit for Golf Within 15 days after Close of Escrow. Casitas Development and commences buildin . 24. Developer commences construction of Golf Within 60 days after Close of Escrow. Casitas Development. r 882/015610-0084 -2- 737414.05 a12/01106 DRAFT Item of Performance Time for Completion 25. Developer submits Developer CC&Rs to Within 90 days prior to anticipated date for City's Agency for approval. issuance of first temporary or final certificate of occupancy for Golf Casitas Development. 26. Agency reviews Developer CC&Rs. Within 30 days after submittal. 27. Developer's completion of Golf Casitas Within 24 months after commencement of Develo ment. construction for Golf Casitas Development. * Nothing herein shall be construed to limit the City's legislative authority, which City may exercise, in City's sole and absolute discretion. In all cases where City action is required, Agency shall use reasonable efforts to cause City to take such action in the time prescribed herein. r rr� 882/015610-0084 _3_ 737414.05 al2/01/06 DRAFT ATTACHMENT NO.10 MEMORANDUM OF DISPOSITION AND DEVELOPMENT AGREEMENT 882/015610-0084 737414.05 a12/01/06 DRAFT RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: La Quinta Redevelopment Agency, 78-495 Calle Tampico La Quinta, CA 92253 Attn: Executive Director (Space Above For Recorder's Use) This Memorandum of Disposition and Development Agreement is recorded at the request and for the benefit of the La Quinta Redevelopment Agency and is exempt from the payment of a recording fee pursuant to Government Code § 27383. MEMORANDUM OF DISPOSITION AND DEVELOPMENT AGREEMENT This MEMORANDUM OF DISPOSITION AND DEVELOPMENT AGREEMENT ("Memorandum") is entered into this _ day of 2006, by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), and LDD SILVERROCK, LLC, a Delaware limited liability company ("LDD"). This Memorandum is made with reference to the following: 1. On or about Agency and LDD entered into that certain Disposition and Development Agreement (the "Agreement") which provides for (i) Agency to sell to LDD that certain real property located in the City of La Quinta, County of Riverside, State of California, more particularly described in the legal description attached hereto as Exhibit "A" and incorporated herein by this reference (the "Property"), and (ii) LDD to develop and operate on the Property a luxury hotel with related amenities. The definitions of all terms contained in the Agreement shall apply to this Memorandum. 2. On or about the date of this Memorandum, LDD acquired from Agency fee title to a portion of the Property. 3. The Agreement provides for Agency and LDD to enter into this Memorandum and to record the same in the Official Records of the County of Riverside to provide notice to all persons of the existence of said Agreement and to cause the Agreement to run with the Property and be binding on LDD and LDD's successors -in -interest as to the Property. 4. This Memorandum may be executed in several counterparts, and all so executed shall constitute one agreement binding on both parties hereto, notwithstanding that both parties are not signatories to the original or the same counterpart. 882/015610-0084 737414 05 al2/01/06 DRAFT IN WITNESS WHEREOF, Agency and LDD have entered into this Memorandum as of the date first set forth above. ATTEST: Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP Attorneys for the La Quinta Redevelopment Agency "Agency" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic Lo Its: Executive Director "LDD" LDD SILVERROCK, LLC, a Delaware limited liability company an Its: f3 882/015610-0084 _2_ 737414.05 a12/01/06 ":am STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) On , before me, a Notary Public, personally appeared personally known to me (or 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. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) On , before me, a Notary Public, personally appeared personally known to me (or 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. Witness my hand and official seal. Notary Public [SEAL] G32 882/015610-0084 _3_ 737414.05.12/01/06 DRAFT EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY E33 882/O15610-0084 _4_ 737414.05 al2/01/06 Rter ATTACHMENT NO.11 PARCEL MAP [See following pages] 882/015610-0084 737414.05 .12/01/06 u� rc: ATTACHMENT NO.12 FOUR STAR QUALITY REQUIREMENTS [See following pages] Four -Star Quality under this agreement indicates an outstanding hotel providing the guest with a luxury experience in a distinctive setting, including expanded amenities and exceptional service. Guests can expect an exceptional experience, where no less than ninety five (95) percent of the following detailed characteristics are consistently met or exceeded: Services Detail Staff is well-groomed with professional, neat and well -maintained attire. • All staff encountered are pleasant and professional in their demeanor. • Front desk staff are articulate, smile and make eye contact. • The front desk is staffed twenty-four hours. • Restaurant on -site serving three meals daily. • Valet parking is available. • Baggage assistance is automatic. • Complimentary newspapers are delivered to room automatically. • Complete room service is available. • Workstation is available where guest can access Internet. • Basic fitness equipment is provided, including treadmills and cycles. • Written confirmation is automatic or offered, either by mail, fax or e-mail. • Guests name is used effectively, but discreetly, as a signal of recognition. • The time from arriving at the reception area until registration is complete does not exceed five minutes (includes queuing). • Bed is plush and inviting with oversized or numerous pillows. • Bedcovers are elegant and stylish and with linens of exceptional quality and comfort. • All written information is provided on good quality paper or pads, custom -printed or logoed. 882/015610-0084 737414.05 al2/01/06 • Bathroom presentation and placement of amenities and linens is thoughtful, careful, and elegant. • Fresh ice is provided during evening service or at another time during the day. • Turndown service is automatically provided. • During turndown service, guest clothing is neatly handled and guest toiletries are neatly arranged and displayed on a cloth or shelf. • Room service is delivered within 30 minutes. • Room service order is delivered within five minutes of quoted time. • Two hour pressing available • Same day laundry and dry cleaning is available seven days/week. • Wake-up call is personalized with guest's name and time of day. • Wake-up call is delivered within two minutes of requested time. • Special service desk identified as concierge/guest service is situated apart from reception/front desk. • If spa services are present, treatments are begun and ended on schedule, within five minutes of expected or booked time. • If spa services are present, during treatment, therapist appears to be genuinely expert, moving seamlessly through the treatment as described and expected. Facilities Details • Self parking area is free of debris, good condition; surfaces, curbs, paths. • All outdoor walkways and approaches are well -maintained and cleaned. • Outdoor awnings, signs, marquees, flags, and plantings are clean and in good condition. • Public spaces are free of obvious hazards. • Elevator landings, cars and doors/tracks are clean and in good condition. • Guest room corridor floors, walls and ceilings are free of debris, marks, and damage. All furniture, fixtures and equipment are clean, neat and well -maintained. • Ashtrays throughout public areas are well -maintained and free of excessive debris. • Temperature in all interior public areas are maintained in general comfort range. Public washrooms very hygienic and neat, with well -stocked paper and soap. 61T 882/015610-0084 -2- 737414.05 al2/01/06 DRAFT • Public washroom fixtures, walls and floors are in very good condition. • Meeting rooms are well -signed so that it is easy to find and arrive at a specific room. • Meeting room doors are in good condition, free of nicks and damage. • Meeting room interiors are in generally good condition, including walls, floors and ceiling. • Lobby provides a comfortable seating area. • Lobby floors, walls and ceiling are free of debris, marks and damage. • Lobby areas feature elegant live plants and/or fresh floral displays. • Notices are professional, matching decor, not "homemade". • Vending and/or ice machines are located on each guest floor. • Vending and/or ice areas and equipment are clean, well -lit, and well -maintained. Service doors are clean, free of marks and damage, and closed. • A variety of different sized and appointed rooms available in hotel. • High quality, varied, and major brand sundry selections are available in an on -site store. Suite (separate bedroom and living areas) accommodations are available. A dedicated and secure luggage storage area is available. • Public phones are convenient, and equipped with seats, privacy panels and pad/pens. • Public washrooms are furnished with upgraded materials and appointments/luxurious design. • Televisions feature premium cable TV (two movie channels, two all -news, two financial). Pay -Movie selections are available through television. Guest room telephones have two lines. Guest rooms equipped with data ports (guest can connect laptop to the Internet). • Direct dial phones with direct long distance dialing are available in each guest room. • If public phonebook present, it is displayed in attractive cover. Guest Room Detail Hardware and hangings (door locks, racks, artwork, etc.) are secure and in good condition. 882/015610-0084 -3- 737414 05 al2/01/06 DRAFT • Carpet/floor is free of debris, stains, wear, loose threads, open seams, etc. • Walls and ceilings are free of marks, stains and damage. • Drapes are free of stains, damage; pull easily and hang properly. • Furniture is free of dust, marks and damage. • All printed material including collateral, phonebooks and stationery are neat, crisp and current. • Drawers and shelves are clean, free of dust and debris. • All light bulbs operate; all light fixtures and lamps are in good condition, clean. • Mirrors and windows are free of smudges and damage throughout. • If safe is provided, it is clean, functional and convenient. • Room equipped with accurate, functional clock and radio/stereo. • Color television works and is equipped with remote control, and is minimum 19". • All bedding and linens are free of debris, hairs, damage and stains. • Room heating and air conditioning is easily controlled by guest and is quiet. Air is fresh and clean, no stuffiness or odors. Sink, tub, shower, toilet, bidet are very clean, free of hairs, stains and discoloration. Bathroom tile and grouting is clean, not discolored, cracked or mildewed. • Faucets and drains operate smoothly and easily. • Minimum bath linen is present: one bathmat; two each of facecloth, hand towel and bath towel. If robes are provided, they are free of spots, stains and loose threads. Guest room door and frame free of marks, scratches and scuffs. • Comfortable seating for two people (other than bed). • Guest service directory, pad and pen/pencil present and conveniently placed. • Enclosed closets (means closets must have doors). • There are three spacious drawers or enclosed shelves (inside closet). • A Luggage rack or bench provided; and adequate space to leave suitcase. Extra clean and hygienic blanket and pillow provided in room. 882/015610-0094 _4_ 737414.05 al2/01/06 DRAFT Lighting throughout the room is adequate. The room can be fully darkened. Full-length mirror present in room. • A hairdryer present in room, clean and functional. • Each guest room has two phones (one could be in the bathroom). • Comfortable desk and chair are available for working, complete with telephone, data port, and light. • Insulated ice bucket, vinyl or better, as well as glass glassware; clean and hygienic are present in room. • Minibar is present (defined as selection of several beverages and snacks). It is non auto - charge, and premium products are attractively displayed. • Minibar is hygienic, free of spills and damage, all products are sealed, price list present. • If coffeemaker is present, it is hygienic, and ceramic mugs and napkins are available. Pillows are plush and full, no foam. Framed artwork or interesting architectural features exist in room. • Excellent lighting is provided in bathroom for makeup and shaving. • Hygienic soap, shampoo and four other bath amenities are provided. Amenities are presented attractively, thoughtfully (not simply lined up on counter). • Towels are of absorbent quality, with soft nap and no discoloration. Towels are free of spots, stains, tears and obvious frays. • Guest room is of generous size, and provides ample seating for more than two persons. • Selection of at least 10 hangers including a variety of bars, clips and padded. • In -room safe is present. • Bed is triple sheeted or features washable duvets. • Live plants are present in guest rooms. • Shaving/makeup, lighted magnifying mirror is present. Specialized Facility Detail Poolibeach furniture is clean, hygienic and well -maintained. Pool deck or beach/sand is clean and free of excessive debris. 882/015610-0054 -5_ 737414.05 a12/01/06 Pool deck and tiling are in good condition, free of excessive damage or wear. Pool water is clean, free of debris and free of notable odors. • Pool fittings and equipment (ladders, dive boards) are secure and in good condition. • If tennis exists on site under same management, court surfaces are in good condition, free of damage and well -marked. Tennis courts and surrounding areas are clean and free of debris. • Fixtures, nets, lights, fences are well -maintained and good condition. • If golf exists on site under same management, pro shop/clubhouse interior are clean and well -maintained; displays and counters neat and tidy. Pro shop/clubhouse and surrounding areas are clean with well -maintained appearance. Golf carts are clean, well -organized and maintained. • Rental equipment is clean and good condition, including bags. • Guest can pick up e-mail and access the Internet from a Business Center workstation. Business Center working areas are clean, tidy and professional. • Comfortable office -style chairs at the Business Center guest workstations. • All fitness, treatment and relaxation areas are hygienic, neatly organized and maintained. • Spa reception area is well-defined, neat and professional. • Fitness equipment is clean, in very good condition, conveniently laid out. • Fitness/workout area is well -ventilated, with comfortable temperature. • Fitness equipment is available with personal headphones/televisions. • Sound system or television provided in fitness/workout areas. • Towels are provided in locker and fitness areas. • Grooming area equipped with hairdryers; soap and shampoo conveniently placed. • All amenities are neatly and professionally presented; very hygienic. Locker room, showers, sauna and hot tub extremely clean, hygienic appearance. • If Business Center is present, a semi -private working area with workstation and telephone is available for guests. • If a spa exists on site, robes and slippers or spa sandals are available in variety of sizes, and they are clean and in good condition. u� 882/015610-0084 -6- 737414.05 al2/01/06 DRAFT If spa or fitness center exists on site, complimentary amenities to include body lotion, shower caps, talc/deodorant and combs. If spa exists on site, at least two types of massage and either body treatments or facials are also offered. If tennis is available on site, water is available courtside. • If pool or beach service is present, ample towels are available poolside or at the beach. • Current newspapers and national -title magazines are provided in fitness and locker areas. If spa, treatment rooms are equipped with individually controlled temperature and sound systems. iJJA 892/015610-0084 _7- 737414.05 al2/01/06 ATTACHMENT NO.13 LIST OF PUBLIC IMPROVEMENTS [See following pages] 892/015610-0084 737414.05 al2/01/06 ATTACHMENT NO.14 LIST OF AUTHORIZED MANAGERS 1. Tishman Hotel Corporation 2. Rosewood Hotels and Resorts, LLC 3. Gemstone Resorts International, LLC 4. Noble House Hotels and Resorts 5. Intercontinental Hotels Group 6. Marriott International, Inc. 7. Starwood Hotels and Resorts Worldwide, Inc. 8. Global Hyatt Corporation 9. Fairmont Raffles Holdings 10. Four Seasons Hotels, Inc. 11. Loews Corporation 12. West Paces Hotel Group 13. Mandarin Oriental Hotel Group 14. The Hong Kong and Shanghai Hotels 15. Vail Resorts, Inc. 16. Hilton Hotels Corporation 17. Ritz Carlton Hotel Company, LLC 18. Kimpton Hotel and Restaurant Group, LLC 882/015610-0084 737414.05 a12/01/06 ATTACHMENT NO.15 RENT SCHEDULE FOR RESORT RETAIL VILLAGE PARCEL [See following pages] i 882/015610-0084 737414.05 .12/01/06