2021 - 37730 SilverRock Phase I, LLC - SIA On-SiteMEMORANDUM
DATE:
TO:
FROM:
RE:
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or
amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
___ Approved by City Council on ___________________________________________
___ City Manager’s signing authority provided under the City’s Purchasing Police
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
___ Department Director’s or Manager’s signing authority provided under the City’s
Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
___ Bid ___ RFP ___ RFQ ___ 3 written informal bids
___ Sole Source ___ Select Source ___ Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
___ Agreement payment will be charged to Account No.: _____________________
___ Agreement term: Start Date ________________ End Date ________________
___ Amount of Agreement, Amendment, Change Order, etc.: $____________________
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
___ Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: ______________________________ Date: _______________
___ Bonds (originals)as required by the Agreement (Performance, Payment, etc.)
___ Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
NOTE: Review the “Form 700 Disclosure for Consultants” guidance to determine if a Form 700 is
required pursuant FPPC regulation 18701(2)
___ Business License No. __________________; Expires: __________________
___ Requisition for a Purchase Order has been prepared (Agreements over $5,000)
June 16, 2021
Monika Radeva, City Clerk
Bryan McKinney, P.E., Public Works Director / City Engineer
Subdivision Improvement Agreement for TM 37730, Montage Residences
✔June 15, 2021 - consent #4
✔
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CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 37730
ON-SITE IMPROVEMENTS
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this 17th
day of May, 2021 by and between SilverRock Phase I, LLC, a Delaware limited liability company,
hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of
California, hereinafter referred to as "City."
RECITALS:
A. Subdivider has prepared and submitted to City for final approval and recordation a final map or Tract
map (the "Map") of a unit of land in the City of La Quinta, County of Riverside, which unit of land is
known as Tract No. 37730 (the "Tract") pursuant to the provisions of Section 66410, et seq. of the
California Government Code (the "Subdivision Map Act"). The Subdivision Map Act and City
ordinances and regulations relating to the filing, approval and recordation of subdivision maps are
sometimes collectively referred to in this Agreement as the “Subdivision Laws.”
B. A tentative map of the Tract has been approved subject to the Subdivision Laws and to the
requirements and conditions contained in Planning Commission Resolution No. 2019-012 (the
“Resolution of Approval”). The Resolution of Approval is on file in the office of the City Clerk and is
incorporated into this Agreement by reference.
C. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and
private improvements (the "Improvements").
D. The Improvements have not been installed and accepted at this time.
E. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the
Improvements as provided in Section 66462 of the Subdivision Map Act. In consideration of approval
of a final map for the Tract by the City Council, Subdivider desires to enter into this Agreement,
whereby Subdivider promises to install and complete, at Subdivider’s own expense, all the public
improvement work required by City in connection with the proposed Tract. Subdivider has secured
this Agreement by improvement security required by the Subdivision Laws and approved by the City.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall
furnish complete original improvement plans for the construction, installation and completion of the
Improvements meeting the requirements of the City Engineer. The Improvement Plans for the Tract
shall be maintained on file in the office of the City Engineer and shall be incorporated into this
Agreement by reference. All references in this Agreement to the Improvement Plans shall include
reference to any specifications for the Improvements as approved by the City Engineer.
2. Improvements. Subdivider shall construct the Improvements required to be constructed on the
Improvement Plans or agreed to be constructed under the Resolution of Approval and this Agreement
as more specifically described in Exhibit "A." attached hereto and expressly made a part hereof by
this reference and shall bear the full cost thereof. The methods, standards, specifications, sequence,
and scheduling of construction shall be as approved by the City Engineer.
3. Improvement Security. Subdivider shall at all times guarantee Subdivider’s performance of this
Agreement by furnishing to City, and maintaining, good and sufficient security as required by the
Subdivision Laws on forms and in the amounts approved by City for the purposes as follows:
A. One class of security to be provided by Subdivider, hereinafter referred to as "performance
security," shall assure the faithful performance of this Agreement including construction of the
Improvements, payment of Subdivider’s fair share of Improvements which have been or will be
constructed by others (“Participatory Improvements”), and payment of plan check and permit
fees. The performance security shall also include good and sufficient security in the amount of
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one hundred percent (100%) of the estimated cost of setting subdivision monuments as stated
hereafter in this Agreement (“Monumentation Security”). A second class of security to be
provided by Subdivider, hereinafter referred to as "payment security," shall assure the payment of
the cost of labor, equipment and materials supplied to construct the Improvements. A third class
of security to be provided by Subdivider, hereinafter referred to as "warranty security," shall serve
as a guarantee and warranty of the Improvements for a period of one year following the
completion and acceptance of the Improvements. Subdivider shall furnish performance and
payment security prior to and as a condition precedent to City Council approval of the Map.
Subdivider shall provide warranty security after Improvements are complete and prior to
acceptance of the Improvements by the City Council. Warranty security shall not be required for
Monumentation or Participatory Improvements. However, the City may utilize Monumentation
Security for performance of or payment for the work in accordance with the Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty security, and in addition to the face amount of each such security, each such security
shall include and assure the payment of costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby
secured.
B. Improvement security shall conform with Section 66499 of the California Government Code and
may be one or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government
Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570
(latest version).
3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or
better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange
(of the Los Angeles County Treasurer's office).
4) Irrevocable letters of credit, in a form acceptable to and approved by the City Attorney, issued
by one or more financial institutions meeting the requirements of Paragraph (3), pledging that
the funds necessary to carry out the completion of the Improvements are on deposit,
guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment
by any creditor of the depositor until released by City. Letters of credit shall guarantee that all
or any portion of the funds available pursuant to the letters of credit will be paid upon the
written demand of City and that such written demand need not present documentation of any
type as a condition of payment, including proof of loss. The duration of any such letter of
credit shall be for a period of not less than one year from the execution of the agreement with
which it is provided and shall state, on its face, that the letter of credit will be automatically
renewed until such time that City authorizes its expiration or until sixty (60) days after City
receives notice from the financial institution of intent to allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the
final map or Tract map for which the Improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the Improvements and shall include
the power of sale of the real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and appurtenances thereunto
belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and
profits thereof. The collateral value of the property shall be established at Subdivider's
expense through an appraisal approved by City.
6) An instrument of credit from an agency of the state, federal or local government, when any
agency of the state, federal, or local government provides at least twenty percent (20%) of
the financing for the Improvements.
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7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in
Section 16430 of the California Government Code, deposited, at City's option, with City or a
responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal one hundred percent (100%) of the estimated cost of
constructing the Improvements, including payment of plan check and permit fees, as estimated by
the City Engineer or a duly authorized representative of the City Engineer. The amount of
Payment security shall equal the amount of the amount of performance security, except as
otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security
shall equal Ten Percent (10%) of the amount of performance security except as otherwise set
forth in Exhibit A. The securities required by this Agreement shall be kept on file with the City
Clerk. The terms of the security documents specified in this Agreement are incorporated into this
Agreement by this reference. If any security is replaced by another approved security, the
replacement shall be filed with the City Clerk and, upon filing, shall be deemed to have been
made a part of and incorporated into this Agreement. Upon filing of a replacement security with
the City Clerk, the former security may be released. The City Engineer shall approve replacement
of security.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to
the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract
map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid
separately for each different form and/or source (surety or financial institution) of security initially
submitted and for substitution of securities but shall not be required for submittal of warranty
security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as follows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.B., which require the establishment of evidence of the reliability of the
surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars
($150.00).
2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will
prepare lien agreements and subordination agreements, administer valuation of the real
property and administer the agreements over the life of the lien, all of which require legal
assistance and financial advice, Subdivider shall pay to City an administration fee of One Half
of One Percent (0.5%) of the estimated cost of the improvements secured but not less than
Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory
Improvements shall remain in place until the Participatory Improvements are constructed and
actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost
of the Participatory Improvements and shall guarantee the reimbursement by Subdivider of
Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty
security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in
replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit
said cash within 30 days of the date of the written demand from City, City may present a written
demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City
the lesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or become wholly or partially invalid for any reason,
including non-payment of premiums, modifications of this Agreement and/or expiration of the time
for performance stated in this Agreement.
G. Security shall be released in the following manner:
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1) Performance security shall be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of Section 10 of
this Agreement.
2) The City Engineer may authorize partial reduction of performance security as work
progresses, upon application by Subdivider. However, no such reduction shall be for an
amount less than Ten Percent (10%) of the total performance security provided for the faithful
performance of the act or work. In no event shall security be reduced below that required to
guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%).
The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) Participatory Improvement security shall be released upon payment by Subdivider of
Subdivider's share of the cost or estimated cost of the Participatory Improvements.
4) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the
Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision
Map Act shall apply.
5) No security given for the guarantee or warranty of work shall be released until the expiration
of the warranty period and until any claims filed during the warranty period have been settled.
As provided in paragraph 13 of this Agreement, the warranty period shall not commence until
final acceptance of all the work and improvements by the City pursuant to Paragraph 10.
Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Improvements. However, if at the end of the
one-year warranty period, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the warranty, warranty
security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer.
6) City may retain from any security released an amount sufficient to cover costs and
reasonable expenses and fees, including reasonable attorneys’ fees.
4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits
required for that phase of work and pay all required fees. Work performed under a permit or permits
shall comply with all provisions of the required permits.
5. Off-site Improvements. When the construction of one or more of the Improvements requires or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its
best efforts purchase such real property at a reasonable price. In the event that Subdivider is
unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider
may request in writing that City attempt to acquire such real property. City may, but is not required to,
agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and
Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said
separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%)
of the appraised fair market value of the real property. Any unexpended portion of said advance shall
be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be
paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall
the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate
Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the
Conditions of Approval.
6. Completion of Improvements; Inspection.
6.1 Construction of Improvements. Subdivider shall begin construction of the Improvements within
ninety (90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later date, as determined by the
City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of
the Improvements within the specified time periods shall constitute cause for City, in its sole
discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise
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improvement security requirements as necessary to ensure completion of the improvements, and/or
to require modifications in the standards or sequencing of the Improvements in response to changes
in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdivider's obligations hereunder.
6.2 Inspection. Subdivider shall at all times maintain proper facilities and safe access for inspection
of the public improvements by City and to the shops wherein any work is in preparation. Upon
completion of the work, the Subdivider may request a final inspection by the City Engineer or the City
Engineer’s authorized representative. If the City Engineer or the designated representative
determines that the work has been completed in accordance with this Agreement, then the City
Engineer shall certify the completion of the public improvements to the City Council. No
improvements shall be finally accepted unless all aspects of the work have been inspected and
determined to have been completed in accordance with the Improvement Plans and City standards
and accepted by the City as described in Paragraph 10 of this Agreement. Subdivider shall bear all
costs of plan check, inspection and certification.
7. Force Majeure. In the event that Subdivider is unable to perform within the time limits herein due to
strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected
by such events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of
time for completion of the Improvements. The City Council, in its sole and absolute discretion, may
approve or deny the request or conditionally approve the extension with additions or revisions to the
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance
to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the
securities shall be sufficient to ensure the performance of and payment for Improvements that remain
incomplete at the time of the extension, and to provide warranty security on completed
Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that
the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor
setting the monuments, and intersection monument tie-outs for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall
be accompanied by any required certifications from Subdivider's engineers or surveyors, approval
letters from other agencies having jurisdiction over and approval authority for improvements required
by this Agreement or the Conditions of Approval, and any required construction quality documentation
not previously submitted.
Upon receipt of said request, the City Engineer or a duly authorized representative will review the
required documentation and will inspect the Improvements. If the Improvements are determined to
be in accordance with applicable City standards and specifications, and as provided herein,
obligations required by the Conditions set forth in the Resolution of Approval and this Agreement
have been satisfied, and Subdivider has provided revised plans as required in Paragraph 12,
hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council.
11. Injury to Improvements. Until such time as the Improvements are accepted by City in accordance
with Paragraph 10, Subdivider shall be responsible for and bear the risk of loss to any of the
improvements constructed or installed. Until such time as all Improvements required by this
Agreement are fully completed and accepted by City, Subdivider will be responsible for the care,
maintenance of, and any damage to such improvements. City shall not, nor shall any officer or
employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause,
happening or occurring to the work or improvements specified in this Agreement prior to the
completion and acceptance of the work or improvements. All such risks shall be the responsibility of
and are hereby assumed by Subdivider.
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12. Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Subdivider shall make any necessary revisions to the original plans held by City, so the
plans depict the actual Improvements constructed. When necessary revisions have been made, each
separate sheet of the plans shall be clearly marked with the words "As-Built," "As-Constructed," or
"Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the
improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to
the City Engineer.
13. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one
(1) year, beginning on the date of final acceptance of the Improvements by the City Council, against
any defective work or labor done, or defective materials furnished, and shall repair or replace such
defective work or materials. If within the warranty period any work or improvement or part of any
work or improvement done, furnished, installed, constructed or caused to be done, furnished,
installed or constructed by Subdivider fails to fulfill any of the requirements of this Agreement or the
improvement plans and specifications referred to herein, Subdivider shall without delay and without
any cost to City, repair or replace or reconstruct any defective or otherwise unsatisfactory part or
parts of the work or structure. Should Subdivider fail to act promptly or in accordance with this
requirement, Subdivider hereby authorizes City, at City’s sole option, to perform the work twenty (20)
days after mailing written notice of default to Subdivider and to Subdivider’s Surety and agrees to pay
the cost of such work by City. Should City determine that an urgency requires repairs or replacements
to be made before Subdivider can be notified, City may, in its sole discretion, make the necessary
repairs or replacement or perform the necessary work and Subdivider shall pay to City the cost of
such repairs.
14. Release of Security. City shall retain and release securities in accordance with the provisions of
Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require
Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may
affect the amount of payment security released.
15. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not
been performed, or commenced and diligently pursued, within sixty (60) days after written notice of
default from City, then City may perform the obligation, and Subdivider shall pay the entire cost of
such performance by City including costs of suit and reasonable attorney's fees incurred by City in
enforcing such obligation. In cases of emergency or compelling public interest, as determined by the
City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall
be deemed waived and all other provisions of this Article shall remain in effect.
16. Injury to Public Improvements, Public Property or Public Utility Facilities. Subdivider shall replace or
have replaced, or repair or have repaired, as the case may be, all public improvements, public utilities
facilities and surveying or subdivision monuments which are destroyed or damaged as a result of any
work performed under this Agreement. Subdivider shall bear the entire cost of replacement or repairs
of any and all public or public utility property damaged or destroyed by reason of any work done
under this Agreement, whether such property is owned by the United States or any agency thereof, or
the State of California, or any agency or political subdivision thereof, or by City or any public or
private utility corporation or by any combination of such owners. Any repair or replacement shall be to
the satisfaction, and subject to the approval, of the City Engineer.
17. Indemnification.
a. Neither City nor any and all of its officials, employees and agents (“Indemnified Parties”) shall be
liable for any injury to persons or property occasioned by reason of the acts or omissions of
Subdivider, its agents or employees in the performance of this Agreement. Subdivider further agrees
to protect and hold harmless Indemnified Parties form any and all claims, demands, causes of action,
liability or loss of any sort, including, but not limited to, attorney fees and litigation expenses, because
of, or arising out of, acts or omissions of Subdivider, its agents or employees in the performance of
this Agreement, including all claims, demands, causes of action, liability, or loss because of, or arising
out of, in whole or in part, the design of construction of the Improvements. This indemnification and
agreement to hold harmless shall extend to injuries to persons and damages or taking of property
resulting from the design or construction of said subdivision, and the public improvements as
provided herein, and in addition, to adjacent property owners as a consequence of the diversion of
waters from the design or construction of public drainage systems, streets and other public
improvements.
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b. Acceptance by City of the Improvements shall not constitute an assumption by City of any
responsibility for any damage or taking covered by this paragraph. City shall not be responsible for
the design or construction of the subdivision or the improvements pursuant to the approved
Improvement Plans or map, regardless of any negligent action or inaction taken by City in approving
the plans or map, unless the particular improvement design was specifically required by City over
written objection by Subdivider submitted to the City Engineer before approval of the particular
improvement design, which objection indicated that the particular improvement design was
dangerous or defective and suggested an alternative safe and feasible design. Except as may be
provided above, City shall not be liable for any negligence, nonfeasance, misfeasance or
malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in
approving, reviewing or inspecting any work or construction. Nothing contained in this paragraph is
intended to or shall be deemed to limit or waive any protections or immunities afforded by law to City
or any and all of its officials, employees and agents (“Indemnified Parties”), by virtue of city’s approval
of the plan or design of the Improvements, including without limitation the protections and immunities
afforded by Government Code Section 830.6. After acceptance of the improvements, Subdivider shall
remain obligated to eliminate any defect in design or dangerous condition caused by the design or
construction defect; however, Subdivider shall not be responsible for routine maintenance. Provisions
of this paragraph shall remain in full force and effect for ten (10) years following the acceptance by
City of the Improvements. It is the intent of this paragraph that Subdivider shall be responsible for all
liability for design and construction of the Improvements installed or work done pursuant to this
Agreement and that city shall not be liable for any negligence, nonfeasance, misfeasance or
malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in
approving, reviewing or inspecting any work or construction. The Improvement Security shall not be
required to cover the provisions of this paragraph.
18. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Conditions of Approval. In the event that any requirement or condition of this
Agreement is inconsistent with or fails to include one or more provisions of the Conditions of
Approval, which document(s) is (are) incorporated herein by reference, the provisions in the
Conditions of Approval shall remain in effect and shall control.
19. Severability. In the event that a court of competent jurisdiction determines that any provision or
provisions of this Agreement are unenforceable, all provisions not so held shall remain in full force
and effect.
20. Subdivider No Agent of City. Neither Subdivider nor any of Subdivider’s agents, employees, or
contractors are or shall be considered to be agents of City in connection with the performance of
Subdivider’s obligations under this Agreement.
21. General Provisions.
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent
by registered or certified mail, return receipt requested, to the parties at their respective
addresses indicated hereon. Notices personally delivered shall be effective upon delivery.
Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of
delivery or refusal indicated on the return receipt. Either party may change its address for notices
hereunder by notice to the other given in the manner provided in this subparagraph.
B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns, and successors of the parties hereto.
C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
D. This Agreement shall be governed by and interpreted with respect to the laws of the State of
California.
E. In the event of any dispute between the parties with respect to this Agreement, the prevailing
party shall be entitled to prompt payment of its reasonable attorneys' fees from the non-prevailing
party.
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Exhibit A
SECURITY – TRACT MAP NO. 37730
Improvements designated as "Participatory" have been or will be constructed by others. Security for
Participatory Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or
released as specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total
performance security for the Tract and shall not reduce total performance security below the amount
necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases
of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer.
Requests for partial releases, setting forth in detail the amount of work completed and the value thereof,
shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required Tract improvements are
complete and accepted by the City Council.
Improvement Description Performance Labor & Materials
Street & Access Road
$ 719,332 $ 719,332
Storm Drain $ 55,310 $ 55,310
Water $ 335,730 $ 335,730
Sewer $ 233,950 $ 233,950
Dry Utilities $ 184,000 $ 184,000
Landscaping $ 143,550 $ 143,550
Monumentation $ 9,000 $ 9,000
Ahmanson Lane
Street $ 366,493 $ 366,493
Sidewalk $ 128,280 $ 128,280
Storm Drain $ 8,840 $ 8,840
Demolition $ 231,210 $ 231,210
Landscaping $ 299,320 $ 299,320
Utility Relocation $ 26,250 $ 26,250
Monumentation $ 9,000 $ 9,000
Totals $2,750,265 $2,750,265
Standard 10% Contingency $ 275,026 $ 275,026
Total Construction Cost $3,025,291 $3,025,291
Professional Fees, Design 5%$ 151,265 $ 151,265
Professional Fees, Const 5%
$ 151,265 $ 151,265
Bond Amount $3,327,821 $3,327,821
City of La Quinta
CITY COUNCIL MEETING: June 15, 2021
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION APPROVING FINAL TRACT MAP NO.
37730 AND ASSOCIATED SUBDIVISION IMPROVEMENT AGREEMENT FOR
MONTAGE RESIDENCES, A RESIDENTIAL DEVELOPMENT LOCATED WITHIN
THE SILVERROCK RESORT IN THE SOUTHWEST CORNER OF JEFFERSON
STREET AND AVENUE 52
RECOMMENDATION
Adopt a resolution approving Final Tract Map and Subdivision Improvement
Agreement associated with Tract Map No. 37730, Montage Residences, and
authorize the City Manager to execute said agreement.
EXECUTIVE SUMMARY
•SilverRock Phase I, LLC (Developer) has requested Final Tract Map
approval.
•Tract Map No. 37730 was conditionally approved on April 20, 2021; the
Developer then had 30 days to obtain signatures on the final map and
submit securities for the Subdivision Improvement Agreement. This did
not occur timely and the map is considered disapproved.
•The Developer has now submitted the signed final map and securities;
thus the final map and Subdivision Improvement Agreement may now
be approved.
FISCAL IMPACT - None
BACKGROUND/ANALYSIS
Montage Residences is a 29 lot residential development located within the
northwest portion of the SilverRock Resort in the southwest corner of Jefferson
Street and Avenue 52 (Attachment 1). The Developer has mass graded the
site; however, the on-site improvements have not been constructed. Access
will be from Ahmanson Way.
CONSENT CALENDAR ITEM NO. 4
NO.
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Tract Map No. 37730 (Attachment 2) was granted conditional approval on April
20, 2021, via Resolution No. 2021-012, which allowed the Developer 30 days
to obtain all necessary signatures and submit performance, labor and
materials securities. However, the Developer was not able to submit the
securities within that period and the map is considered disapproved. The City
has now received the final map with the necessary signatures and bonds from
the Developer, thus the final map and the Subdivision Improvement
Agreement (Attachment 3) may be approved.
ALTERNATIVES
Staff does not recommend an alternative action .
Prepared by: Amy Yu, Associate Engineer
Approved by: Bryan McKinney, P.E., Public Works Director / City Engineer
Attachments: 1. Vicinity Map
2.Tract Map 37730
3.Subdivision Improvement Agreement
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