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2011-03-31 Environmental Site Assessment - 9 Village Properties by Earth Systems SouthwestLA QUINTA REDEVELOPMENT AGENCY 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 REPORT OF PHASE I ENVIRONMENTAL SITE ASSESSMENT NINE VILLAGE PROPERTIES APNs 770-123 602;L003;000 006; and`0_10; and 770-124 0 2; -003,,-007; and 009 R CALLE TAMPICO TO AVENIDA LA FONDA LA QUINTA, RIVERSIDE COUNTY, CALIFORNIA March 31, 2011 RECEIVED APR 0 B 2011 CITY OF LA QUINTA CITY MANAGER'S OFFICE © 2011 Earth Systems Southwest Unauthorized use or copying of this document is strictly prohibited without the express written consent of Earth Systems Southwest. File No.: 11937-01 Doc. No.: 11-03-768 Earth Systems `r Southwest March 31, 2011 La Quinta Redevelopment Agency 78-495 Calle Tampico La Quinta, California 92253 Attention: Ms. Deborah Powell and Mr. Jon McMillen Subject: Report of Phase I Environmental Site Assessment Project: Nine Village Properties APNs 770-123-002, -003, -004, -006, and -010; and 770-124-002, -003, -007, and -009 Calle Tampico to Avenida La Fonda La Quinta, Riverside County, California 79-8116 Country Club Drive Bermuda Dunes, CA 92203 (760)345-1588 (800)924-7015 FAX (760) 345-7315 File No.: 11937-01 Doc. No. 11-03-768 As you requested, Earth Systems Southwest [ESSW] has completed this Phase I Environmental Site Assessment [ESA] of the site referenced above. This report was prepared for your exclusive use. It was prepared to stand as a whole and no part should be excerpted or used in exclusion of any other part. This, project was conducted in accordance with our proposal dated March 22, 2011. Thank you for this opportunity to be of service. If you have any questions regarding this report, or the information contained herein, please contact this office at your convenience. I declare that, to the best of my professional knowledge and belief, I meet the definition of Environmental Professional as defined in 40 CFR 312.10. 1 have the specific qualifications based on education, training and experience to assess a property of the nature, history and setting of the subject site. I have endeavored to perform this project in conformance with the standards and practices set forth in 40 CFR 312. Respectfully Submitted, EARTH SYSTEMS S( Scot A. Stormo, PG 4826, CHG 204, REA II 20166 Associate Hydrogeologist, Senior Vice President ESA/sas/cen Distribution: 6/La Quinta Redevelopment Agency 1/BD File r 'OV.r ��`y U i' RHA II - 201,66 =�� 44,+ Expires: REPORT OF PHASE I ENVIRONMENTAL SITE ASSESSMENT NINE VILLAGE PROPERTIES APNs 770-123-002, -003, -004, -006, and -010; and 770-124-002, -003, -007, and -009 CALLE TAMPICO TO AVENIDA LA FONDA LA QUINTA, RIVERSIDE COUNTY, CALIFORNIA March 31, 2011 TABLE OF CONTENTS 1.0 INTRODUCTION.............................................................................................................1 1.1 Project Information..................................................................................................1 1.2 Purpose and Scope of Work................................................................................... I 1.3 Definitions...............................................................................................................2 1.4 Qualifications...........................................................................................................3 1.5 Exclusions and Data Gaps.......................................................................................3 1.6 Limitations and Reliance.........................................................................................4 2.0 GENERAL SITE INFORMATION.................................................................................5 2.1 . Size, Location, and Name........................................................................................5 2.2 Assessor's Parcel Number(s)...................................................................................5 2.3 Township, Range, Section.......................................................................................5 2.4 Site Boundaries........................................................................................................5 2.5 Current Development and Access...........................................................................5 2.6 Zoning/Land Use Records.......................................................................................5 ' 2.7 Site Topography 2.8 Surface Water Bodies ........................................... :.................................................. 6 2.9 Geology and Hydrogeology.....................................................................................6 3.0 SITE RECONNAISSANCE.............................................................................................7 3.1 On -Site Observations...............................................................................................7 I 3.2 Site Vicinity Observations.......................................................................................7 i 4.0 HISTORICAL INFORMATION.....................................................................................8 5.0 RECORDS REVIEW........................................................................................................9 5.1 Agency Database Search Report ..............................................................................9 5.2 California EPA, State Water Resources Control Board........................................10 5.3 California Department of Toxic Substances Control ............................................ I I 5.4 Tribal Records....................................................................................................... I I 5.5 Engineering and Institutional Controls.................................................................. I I 5.6 Environmental Cleanup Liens............................................................................... I I 5.7 State of California Department of Conservation -Division of Oil, Gas & Geothermal........................................................................................................................ I I 6.0 INTERVIEWS, GENERAL RESEARCH, AND PRIOR REPORTS ........................11 6.1 Current Owners/Occupants/Operators................................................................... I I i 6.2 Past Owners/Occupants/Operators........................................................................12 I 6.3 J Owners/Occupants of Neighboring Properties......................................................12 6.4 Other Sources of Information................................................................................12 EARTH SYSTEMS SOUTHWEST TABLE OF CONTENTS, continued ii 7.0 SUMMARY AND CONCLUSIONS..............................................................................12 8.0 RECOMMENDATIONS................................................................................................13 APPENDIX A Figures APPENDIX B Photographs APPENDIX C Agency Database Search Report APPENDIX D Additional Documentation APPENDIX E Qualifications Statement APPENDIX F Reliance Form EARTH SYSTEMS SOUTHWEST March 31, 2011 I - File No.: 11937-01 Doc. No. 11-03-768 1.0 INTRODUCTION 1.1 Project Information This report presents the findings of the Phase I Environmental Site Assessment [ESA] conducted by Earth Systems Southwest [ESSW] for nine "Village" properties located south of Calle Tampico and north of Avenida La Fonda, approximately It 5 feet east of Desert Club Drive in La Quinta, California. This project was conducted for the La Quinta Redevelopment Agency [LQRA] in accordance with our proposal dated March 22, 2011. This project was performed in conjunction with the planned development of the site. We understand the site will be developed for parking lots, but this will not take place for a few years (LQRA, 2011). This project has been performed at the request of the client for due diligence purposes. We are not aware of special requirements for this ESA. 1.2 Purpose and Scope of Work The purpose of an ESA is to evaluate the potential for the presence of soil or groundwater contamination that may be present because of the past use, handling, storage, or disposal of hazardous materials or petroleum products on or near the property. The scope of work for this evaluation is based on the United States Environmental Protection Agency Final All Appropriate Inquiry Rule (2006) [US EPA AAI]; and, the ASTM Standard E-1527-05, Standard Practice for Environmental Site Assessments, and consisted of the tasks listed below. Site Reconnaissance: This involved a visual reconnaissance of the site, noting physical evidence of potential contamination or possible sources of contamination; and observation of adjacent properties to identify readily observable visual evidence of possible impacts to the subject site. Figures depicting the site location and layout are presented in Appendix A. Significant on -site features were photographed to document current conditions. Selected site photographs are presented in Appendix B. Records Review: Records regarding the regulatory status and history of the site were evaluated regarding the possible presence of Recognized Environmental Conditions [REC]. Regulatory agency records were reviewed by obtaining a report listing known sites that generate, store, use, and/or have released hazardous materials from a firm that specializes in maintaining a database of this type of information. A copy of the agency database search report is presented in Appendix C, and is discussed in Section 5.1. The search radius for the agency database search was in general accordance with the US EPA AAI and ASTM standard E-1527-05 as measured from the center of the site. Other sources of information are listed in the references section of this report and may include the following categories of information (note that each category is utilized at the discretion of Environmental Professional [EP] until, in the EP's opinion, sufficient data has been obtained): • Historical aerial photographs ■ Topographic maps ■ Munger Oil maps ■ Fire insurance maps • Land title information EARTH SYSTEMS SOUTHWEST March 31, 2011 - 2 - File No.: 11937-01 Doc. No. 11-03-768 ■ Local street directories ■ Zoninglland use records ■ Engineering and institutional controls, such as deed restrictions and restrictive zoning to a radius of/, mile, if contained in publicly available lists/registries ■ Tribal records of subject property and adjoining properties (if tribal land) ■ Local government records such as building department files • Environmental cleanup liens If the property was not previously developed, sources such as building department files and street directories were not reviewed. Relevant supporting documents are provided in Appendix D. Interviews: Persons familiar with the site were interviewed (if possible) regarding the potential presence of RECs on the site or in a position to affect the site, including the site owner/operator/occupant, former site owners/operators/occupants (if reasonably accessible), neighboring property occupants (if the site is abandoned), and selected government personnel likely to have information regarding environmental conditions at or.near the site. Information from persons who were successfully contacted is presented in Section 6. Report Preparation: This report was prepared to present our findings, conclusions, and recommendations. 1.3 Definitions ASTM 1527-05 provides definitions for 97 terms and 27 acronyms used in the ESA process. ESSW endeavors to use these terms and acronyms within the meaning provided by ASTM 1527- 05. The majority of these terms are either obvious in their meaning or are seldom used in this report, but a few are significant enough to warrant defining here, as follows: Recognized Environmental Condition [REC]: the presence or likely presence of an existing release, a past release, or a material threat of a release of hazardous substances or petroleum products in structures, or into the ground, groundwater or surface water at a site or on an adjacent site that may affect the site. Note that the legal use of a hazardous material and/or petroleum product is an REC if potential mishandling of the material can result in a release. The term REC is applied when the potential for a release exists, but does not apply when it can be shown that a release did not occur and is unlikely to occur. The term does not include de minimis conditions that do not present a threat to human health or the environment, and would not result in an enforcement action if brought to the attention of an appropriate governmental agency. Site: The term "site" is used in place of the term "property" as defined by ASTM 1527-05, and is the physical location that is the subject of the assessment. The site can include more than one parcel of land, or only a portion of a parcel of land, depending on the needs of the client. ESAs focus primarily on activities that occur within the boundaries of the site, or that could potentially affect conditions and activities within the boundaries of the site. RECs on off -site properties, that are not likely to affect the site are not considered to be RECs for the subject site. EARTH SYSTEMS SOUTHWEST March 31, 2011 - 3 - File No.: 11937-01 Doc. No. 11-03-768 Environmental Professional [EP]: An EP is defined by US EPA AAI as "a person who possesses sufficient specific education, training, and experience necessary to exercise professional judgment to develop opinions and conclusions regarding conditions indicative of releases or threatened releases (of hazardous substances) on, at, in, or to a property, sufficient to meet the objectives and performance factors (of the rule)." Specific minimum credentials are required by US EPA AAI and ASTM 1527-05 to be identified as an EP. User: The "user" of the report is defined by ASTM Practice 1527-05 as the party for whom the assessment is being conducted (the "client'), not the EP. 1.4 Qualifications Work on this project was performed under the direct supervision of an Environmental Professional [EP], in accordance with the US EPA AAI and ASTM E-1527-05 requirements. Mr. Scot Stormo (PG, CHG, REA II) was the lead EP, the project manager, and provided senior review. Mr. Stormo conducted the site reconnaissance and historical aerial photograph review. Ms. Kirsten Murch, Project Geologist, conducted other historical review and agency database review. A qualifications statement regarding the personnel who performed this evaluation is presented in Appendix E. 1.5 Exclusions and Data Gaps The scope of work for this ESA did not include testing the air, groundwater, soil, or building materials for the presence of hazardous constituents. The US EPA AAI and ASTM E1527-05 require that gaps in the data used in evaluating the site be identified. Data gaps encountered in this project, and their significance to the project, are summarized below. • Access was not gained to the interior of the residence on -site. ESSW is not able to offer opinions regarding portions of the site to which we did not have access or to which vision was obscured. This could be significant if those portions of the site were used to manufacture, use, store, or dispose of hazardous materials. However, residences are rarely used for these purposes, so the risk from this exclusion is considered low. • Land title information and contact information for the former owner of APN 770-124-007 was not available. Because of the availability of other data sources, the lack of title information is not considered to be significant. • Due to the rapid turnaround -time for this project, prior owners, operators, or employees of the site could not be contacted to be interviewed. This data gap is not considered significant due to the availability of historical information from other sources. • Historical street directories were requested for the two known addresses on -site (78186 Buena Ventura Avenue and 78180 Avenida La Fonda). Due to the quick turnaround -time for this project, the results of the historical street directories search were not available before this report went to publication. This data gap is not considered significant since EARTH SYSTEMS SOUTHWEST March 31, 2011 - 4 - File No.: 11937-01 Doc. No. 11-03-768 the site and vicinity have been used primarily for residential purposes. • Sanborn maps were not available for the site. This data gap is not considered to be significant due to the residential usage of the site and vicinity. Further investigations regarding the data gaps do not appear warranted. 1.6 Limitations and Reliance This report has been prepared for the exclusive use of La Quinta Redevelopment Agency. Other parties participating in the transaction for which this project was conducted may also use the information presented in this report, provided said parties agree that ESSW shall have no additional liability arising from such use than described in the contract under which this project was conducted. Any other use of or reliance on the information and opinions contained in this report without the written authorization of ESSW is at the sole risk of the user (to apply for written authorization to rely on this report, please complete and submit the application provided in Appendix F). Note that the conclusions and recommendations rendered in this report are opinions based on readily available information obtained to date within the scope of the work authorized by the client, and apply only to site conditions as of the date of the site visit. The scope of work for this project was developed to address the needs of the client as part of a property transaction (purchase, sale, refinance, etc.) and may not meet the needs of other users. It should be noted that any level of assessment cannot ascertain that a property is completely free of chemical or toxic substances. We believe the scope of work has been appropriate to allow the client to make an informed business decision. According to US EPA AAI and ASTM 1527-05: the "shelf life" of an ESA report is six months; an "Update" can be provided to the client within the first year of the report's publication (at an additional cost); and if the report is older than one year, the ESA should be re -conducted. Changes in site conditions can render this report obsolete within a shorter period of time. Use of this report outside of these time frames or after site conditions have changed is at the sole risk of the user and without liability and legal exposure to ESSW. The results contained in this report are based upon the information acquired during the assessment, including information obtained from third parties. ESSW makes no claim as to the accuracy of the information obtained from others. In addition, it is possible that variations exist beyond or between points evaluated during this assessment, and that changes in conditions can occur in the future due to the works of man, contaminant migration, variations in rainfall or temperature, a broadening of knowledge, changes in regulatory standards, and/or other factors not apparent at the time of the field investigation. The services performed by ESSW have been conducted in a manner consistent with the level of care and skill ordinarily exercised by members of our profession currently practicing under similar conditions in the site vicinity. No warranty, express or implied, is offered. EARTH SYSTEMS SOUTHWEST March 31, 2011 - 5 - File No.: 11937-01 Doc. No. 11-03-768 2.0 GENERAL SITE INFORMATION 2.1 Size, Location, and Name The site consists of approximately 3.13 acres of land located on the south side of Calle Tampico, approximately 115 feet east of Desert Club Drive in La Quinta, California. Two of the parcels that comprise the site.are identified with addresses as indicated in Section 2.2. The site is not known by a particular name. The site location is depicted in Figure 1. The site layout is depicted in Figure 2. 2.2 Assessor's Parcel Number(s) The site is identified as Assessor's Parcel Numbers [APNs] 770-123-002, -003, -004 (78186 Buena Ventura Avenue), -006, and -010, and 770-124-002, -003, -007 (78180 Avenida La Fonda), and -009. A copy of the Riverside County APN map is included in Appendix D. 2.3 Township, Range, Section The site is located near the center of the west half of Section 6, Township 6 South, Range 7 East, San Bernardino Baseline and Meridian. 2.4 Site Boundaries The property boundaries are defined by Calle Tampico to the north, Avenida La Fonda to the south, and Buena Ventura Avenue to the southeast. Buena Ventura Avenue also bisects the site into a northern and southern portion. Also bounding the property are parking lots to the east and west, a residence to the southwest, and a block wall around a parking lot for a commercial building to the southwest. 2.5 Current Development and Access The site is vacant land except for a residence located near the north -center of the site at 78186 Buena Ventura Avenue (APN 770-123-004) and an apartment building located near the south - center of the site at 78180 Avenida La Fonda (APN 770-124-007). Access to the site is not restricted. 2.6 Zoning/Land Use Records Zoning information was obtained from the City of La Quinta Planning Department website, which indicated that the property usage is designated as Village Commercial— VC. 2.7 Site Topography The surface of the site is relatively flat. The elevation of the site is approximately 40 feet above mean sea level. EARTH SYSTEMS SOUTHWEST March 31, 2011 - 6 - File No.: 11937-01 Doc. No. 11-03-768 2.8 Surface Water Bodies Surface water bodies are not present on the site, either as lakes or streams. The nearest surface water body, other than man-made lakes on nearby golf courses, is the All American Canal. The All American Canal is located within man-made embankments about 1% mile southeast of the site. Rain water appears to infiltrate within the site. Water bodies are not located in a position to transport contaminants onto the site, or be readily affected by contaminants released at the site. 2.9 Geology and Hydrogeology The site is located in the Coachella Valley of Southern California. The Coachella Valley is part of the tectonically active Salton Trough, which is a closed, internally draining basin bound by the San Jacinto and Santa Rosa Mountains to the southwest; the San Bernardino Mountains to the northwest; and the Little San Bernardino and Orocopia Mountains to the northeast and east. These mountain ranges, and the basement rock underlying the Coachella Valley, are primarily composed of granitic, and metamorphic rock. Within the Coachella Valley, the basement complex is overlain by a series of unconsolidated and semi -consolidated continental clastic sediments eroded from the surrounding mountain ranges; lacustrine deposits of ancient Lake Cahuilla; and wind-blown sand deposited in the active blow -sand area of Riverside County (DWR, 1964). The northwest trending San Andreas Fault zone is the major geologic feature of the Coachella Valley. The Banning, Mission Creek, and Garnet Hill faults, which are part of the San Andreas Fault system, divide the Coachella Valley into four distinct hydrogeologic subbasins. Each subbasin is further divided into subareas, based on either the type of water -bearing formation, water quality, areas of confined groundwater, forebay areas, groundwater divides, or surface water divides. The site is located within the Thermal subarea of the Indio subbasin. This subarea consists of the confined portion of the Indio subbasin, where water from the up -gradient Palm Springs subarea moves into the interbedded sands, silts and clays underlying the central portion of the valley. Groundwater in this subarea generally.flows in a southeasterly direction toward the Salton Sea. The water -bearing materials in this area have been divided into four units: a semi - perched zone at the ground surface and extending to a depth of up to 100 feet below ground surface [bgs]; an upper aquifer which is 150 to 300 feet thick; a lower aquifer in excess of 500 feet thick; and an aquitard between these two aquifers which is 100 to 200 feet thick. The semi - perched zone may be the uppermost water -bearing zone under the site. Water quality within this zone is generally poor. The deeper and upper aquifers are typically used for water supply. Throughout the Thermal subarea, the horizontal permeability is several times the vertical permeability resulting in a predominantly lateral flow of groundwater (DWR, 1964). The depth to groundwater at the site was evaluated by contacting Mr. Wilfred Gonzalez with the Coachella Valley Water District [CV WD]. Based on information provided by Mr. Gonzalez for another project, the depth to groundwater in a well located approximately 2 miles east-northeast of the site averaged 171.6 feet for the year 2006. Note that the CVWD obtains depth to water information from production wells that tend to tap deeper aquifers, and may not represent uppermost groundwater. EARTH SYSTEMS SOUTHWEST March 31, 2011 - 7 - File No.: 11937-01 Doc. No. 11-03-768 3.0 SITE RECONNAISSANCE 3.1 On -Site Observations ESSW personnel visited the site on March 30, 2011, to observe current site conditions and adjacent land use. Photographs of selected on -site features are presented in Appendix B. A summary of our findings is presented below. ■ The site was observed to consist of primarily of vacant land (Photo 1). Two residential buildings were located onsite; a small house in the north -central portion of the site (Photo 2) and a small apartment building in the southwestern portion of the site (Photo 3). The house may have been vacant while the apartment building appeared to be at least partly occupied. Vegetation around the buildings was minimal, but did not show signs of stress from contamination. The yard around the apartment building was covered in a layer of gravel, both front and back (Photos 3 and 4). Three trailers containing landscaping cuttings were parked behind the apartment building (left side of Photo 4). ■ Four utility lids marked "sewer" were observed along Calle Tampico. These lids were not a modern style. The presence of these lids suggests that at one time the property was intended to contain more than one structure along the northern edge. Several utility boxes for water connections were observed along Buena Ventura Avenue, also suggesting that more than one structure was intended to occupy the northern portion of the site. ■ An old sofa had been abandoned along the wall in the southwest corner of the site. ■ A small pile of soil with minor amounts of debris was observed west of the residence in the northern portion of the site (Photo 6). Evidence of staining, odors or other suspicious features were not observed on the site. ■ Evidence of agricultural features, such as an irrigation system, were not observed. ■ Evidence of the on -site manufacture, use, storage, or disposal of hazardous materials was not observed. 3.2 Site Vicinity Observations The site vicinity generally consisted of residential, commercial, and vacant land. Properties adjacent to the site consisted of the following: North: Commercial and retail buildings including a Fresh and Easy store. East: City of La Quinta public library and parking lot South and West: A parking lot, vacant land, two residences and a commercial. building surrounded by a block wall. Evidence was not observed that the site was adversely affected by activities on properties in the site vicinity. EARTH SYSTEMS SOUTHWEST March 31.2011 - 8 - File No.: 11937-01 Doc. No. 11-03-768 4.0 HISTORICAL INFORMATION Information regarding the history of the site was obtained from various sources, as listed in the references section of this report. The results of this research are summarized chronologically in the following table. Footnotes regarding the sources of historical information are provided following the table. Table 1 — Summary of Historical Site Usage Date Source Discussion 11-27-1939 ESSW aerial In 1939, the site appeared to be native desert with low vegetation density. The photo archive site vicinity was a mix of undeveloped land to the north and south and (Fairchild agricultural land to the east and west. The streets for what is now the City of La Aerial Surveys) uinta were present to the southwest, with residences widely spaced throughout. 09-10-1947 Preliminary An easement for pole lines, conduits and pipelines was recorded to the benefit of and Report The Desert Club (affects APN 770-123-009). "The exact location and extent of 12-09-1948 said easement is not disclosed of record." 09-16-1948 Preliminary An easement granted to The Desert Club for public utilities (affects Parcel 1: Report APN 770-123-010). 12-09-1948 Preliminary An easement for pole lines, conduits and pipelines was recorded to the benefit of Report The Desert Club (affects APN 770-124-002). "The exact location and extent of said easement is not disclosed of record." 03-15-1949, Preliminary An easement for pole lines (affects APNs 770-123-002, -003, and -004). "The 01-17-1951 Report exact location and extent of said easement is not disclosed of record" and 06-29-1951 12-16-1955 ESSW aerial In 1955, both onsite residences were present, as were the residences adjacent to photo archive the southwestern boundary of the site. Calle Tampico, Buena Ventura Avenue and Avenida La Fonda were present. The residence in the southern portion of the site appeared to have a fence or vegetation surrounding its' yard but the remainder of the site appeared to be devoid of vegetation. In the site vicinity, additional streets had been constructed south and east of the site. The remainder of the site vicinity was generally unchanged. 1958 Riverside The website indicates that in 1958, a small wood frame residence was built on County TLMA APN 770-123-004. website 1959 USGS In 1959, the site is depicted as developed with buildings on APN 770-123-004 Topographic and APN 770-124-007. The vicinity is depicted as lightly developed residential map land, including paved, light -duty roads. 6-20-1974 ESSW aerial In 1974, the two onsite residences were visible. Vegetation or a fence photo archive surrounded the "yard" for the northern residence while several trees were observed in the yard for the southern residence. The remainder of the site was Flat and featureless except for scattered vegetation. The site vicinity was increasingly developed with residential properties. A small retail store (Circle K) was located about %. mile west of the site on Calle Tampico. 4-15-1980 ESSW aerial In 1980, the site was generally unchanged except that vegetation covered the site photo archive more uhiformly. The commercial building southwest of the site was present by this time. The remainder of the site vicinity appeared generally unchanged. 1980 USGS The 1980 version does not depict changes on -site. The vicinity is depicted as Topographic moderately more developed for primarily residential purposes. Two larger map buildings are present on the west side of Desert Club Drive. 1-20-1984 ESSW aerial In 1984, the site and vicinity appeared generally unchanged from 1980. photo archive EARTH SYSTEMS SOUTHWEST March 31, 2011 - 9 - File No.: 11937-01 Doc. No. 11-03-768 1-15-1990 ESSW aerial In 1990, the site appeared to be generally unchanged except that most of the photo archive widespread vegetation appeared to have been removed. In the site vicinity, two large commercial building had been build directly north of the site beyond Calle Tampico, several smaller commercial buildings had been built to the southwest, and the number of residences in the residential areas were increasing. 3-18-1995 ESSW aerial In 1995, significant changes to the site were not observed. The site vicinity was photo archive generally unchanged except that the La Quinta City Hall had been built to the east, a shopping center had been built north.of City Hall, and the land west of the shopping center had been graded. A large building had also been built southwest of City Hall, and the land west of City Hall had been graded with what looks like a lake being constructed in the middle of the graded area. 3-14-2000 ESSW aerial In 2000, the site appeared generally unchanged. In the vicinity, a parking lot photo archive with shade structures had been built immediately east of the site and a residential community had been built northeast of the site (west of the shopping center). The site vicinity was increasingly developed but significant changed in roe usa a were not observed. 05-05-2003 Preliminary Street name change: Avenida Buena Ventura to Main Street (APNs 770-123- Re ort 002, -003, and -004). 1-30-2006 Google Earth In 2006, the site appeared generally unchanged. In the site vicinity, a parking area was in use immediately west of the site and a few vehicles were parked on the western portion of the site. In addition, the village shopping area was under construction to the west, the La Quinta Library had been built to the east, and a resort had been built to the northwest. 12-15-2006 Preliminary An easement granted to Verizon California, Inc. for public utilities. Report 6-5-2009 Google Earth In 2009, the site appeared as it did during the site visit. The area around the apartment building appeared gray, which is a change from prior photos and suggests the gravel ground -cover was added after 2006. In the vicinity, the village shopping area to the west appeared completed and the Fresh and Easy shopping center had been built. The site vicinity was increasingly developed. Historical information footnotes: We attempted to obtain historical information from a standard set of resources, including historical aerial photographs, historical USGS topographic maps, Sanborn fire insurance maps, historical street directories, chain -of -title documents, city building permit files, and personnel interview. However, historical information was not obtained from some sources, as follows: Sanborn Fire Insurance maps: Based on knowledge from prior reports, Sanborn Fire Insurance maps are not available for the site. Historical City Directories: Historical street directories were requested for the two known addresses on -site (78186 Buena Ventura Avenue and 78180 Avenida La Fonda). Due to the quick turnaround time for this project, the results of the historical street directories search were not available before this report went to publication. County Building Permits were reviewed on the County GIS website. Six permits were cited. Two of the permits concern inspections on -site. The other permits are for a temporary power pole, a telephone building, a plan check of a commercial building, and a replacement seepage pit (Case #BZ188152). The County Department of Building and Safety indicated that the seepage pit was for 78180 Avenida La Fonda (APN 770-124-007). 5.0 RECORDS REVIEW 5.1 Agency Database Search Report A report summarizing the information available from regulatory agencies regarding sites that generate, store, use, and/or have released hazardous materials was obtained from a firm that specializes in maintaining a database of this type of information. The publications reviewed in the database search are referenced in the database report, presented in Appendix C. The search EARTH SYSTEMS SOUTHWEST March 31, 2011 - 10 - File No.: 11937-01 Doc. No. 11-03-768 radii used for each list were in accordance with the US EPA AAI and ASTM E-1527-05 guidelines as measured from the center of the property. Significant information obtained in the database search is summarized below. ■ The site is not listed in the database report. ■ Five sites within the search radii are listed a total of ten times in the database report, but two of the sites do not appear to pose a threat to the site due to the distance, direction, or nature of the issues at those sites (such as registered underground storage tanks or hazardous waste generators with no reported problems). The remaining three sites are summarized as follows: o Circle K M457 (Map ID 5), located at 78110 Calle Tampico, is listed as 0.40 miles northwest of the subject site (but is actually only 650 feet northwest of the site). This site is included in the Riverside County leaking underground storage tank [LUST] database for two gasoline LUSTs that affected soil only. The LUSTS each have a status of "Completed - Case Closed" and are not considered to be RECs. o Calle Tampico Elementary School (Map ID 6), located on the northeast corner of Eisenhower Drive and Calle Tampico, is listed as approximately 0.44 miles northeast of the subject site (actually 0.25 miles to the northwest), and is listed on the State School Investigation database due to the property's past agricultural use. The listing has a status of "No Further Action" and is not considered to be a REC. o Burns Ranch (Map ID 7), located at 78505 Avenue 52, approximately 0.49 miles southwest of the subject site, had a gasoline LUST that affected the soil only. The status of that site is "Completed - Case Closed" and is not considered to be a REC. ■ The database search report has 52 listings categorized as unmapped, due to vague address listings or the inability of the automated search system to identify the location of the release site. A review of these listings identified five of them to be within the search radii. The unmapped sites do not appear to pose a concern for the site due to the distance, direction, status, or nature of the issue at these sites. The sites identified in the agency database review do not appear to be RECs for the subject site due to the distance, direction, status, or nature of the issue at these sites. 5.2 California EPA, State Water Resources Control Board The California Environmental Protection Agency [EPA], State Water Resources Control Board [SWRCB] GeoTracker website was accessed to research records on file regarding known problems at the site address. Other than the issues discussed in Section 5.1, the database search found the following result for a property in the vicinity: In approximately 1930, an airfield was located roughly '/z mile northwest of the subject site. The airfield was owned and operated by the La Quinta Resort and Golf Club as a convenience to the resort's guests. The United States Department of Defense [DOD] researched the site and in a determination memo stated that the DOD does not and has not EARTH SYSTEMS SOUTHWEST March 31, 2011 11 - File No.: 11937-01 Doc. No. 11-03-768 used the airfield for DOD purposes (DOD, 1999). A copy of the determination is included in Appendix D. (Note that evidence of this airfield was not observed in the historical aerial photographs reviewed as part of this project). 5.3 California Department of Toxic Substances Control The California Department of Toxic Substances Control [DTSC] EnviroStor website was accessed to research records on file regarding known problems at the site address or in the site vicinity. Other than the issues discussed in Section 5.1 and 5.2 the database search found no results for the site or properties in the vicinity. 5.4 Tribal Records This site is not within '/< mile of tribal land, and therefore Tribal records for the subject property or adjoining properties were not reviewed. 5.5 Engineering and Institutional Controls Engineering and Institutional Controls [EICs] (i.e. deed restrictions and restrictive zoning) were not identified for the subject site in the agency database search report. Engineering and Institutional Controls to a radius of/< mile were not identified. 5.6 Environmental Cleanup Liens Recorded Environmental Cleanup Liens [ECLs] on a property are indicators that contamination exists or existed at the site. ECLs are "encumbrances on a property for the recovery of incurred cleanup costs on the part of a state,. tribal, or federal government agency or other third party" (EPA 2006). Ms. Deborah Powell with the La Quinta Redevelopment Agency stated that they are not aware of ECLs assigned to the site. 5.7 State of California Department of Conservation -Division of Oil, Gas & Geothermal The State of California Department of Conservation -Division of Oil, Gas & Geothermal website was reviewed for information regarding historic oil -well drilling activities near the site. The website did not depict oil wells having been drilled within 1 mile of the site. 6.0 INTERVIEWS, GENERAL RESEARCH, AND PRIOR REPORTS 6.1 Current Owners/Occupants/Operators The current owner of the site is the City of La Quinta. Ms. Deborah Powell of the City of La Quinta Redevelopment Agency [LQRA] stated that the City recently purchased the properties at market value (the sale price of a property can be an indicator of whether a contaminated condition exists on -site. If a property is listed far below market value, the reason for the reduced price may be environmental in nature.). Ms. Powell also stated that LQRA is not aware of underground storage tanks on -site now or in the past, or of ECLs assigned to the site. EARTH SYSTEMS SOUTHWEST March 31, 2011 - 12 - File No.: 11937-01 Doc. No. 11-03-768 6.2 Past Owners/Occupants/Operators Ms. Betty Sawyer with the LQRA provided contact information for the former owners of the site: APNs 770-123-006 and -010: Mr. Ted Newell with NIS Yield Partners APNs 770-123-002, -003, and -004: Ms. Virginia Garbutt APN 770-124-009: Nispero Properties APN 770-124-002 and -003: James Kelly APN 770-124-007: Michael A. Fischer Attempts to reach these parties were unsuccessful. 6.3 Owners/Occupants of Neighboring Properties The US EPA recommends that interviews with persons on adjoining properties be conducted for properties that are "abandoned." The subject site has been monitored by the LQRA and the residences appear to be occupied. Therefore, the site is not considered to be abandoned and interviews of owners/occupants of neighboring properties were not conducted. 6.4 Other Sources of Information In 2007, ESSW conducted an ESA on a parcel approximately '/4 mile west-southwest of the subject site (ESSW, 2007). Information of environmental concern for the subject site was not cited in the 2007 report. 7.0 SUMMARY AND CONCLUSIONS This report presents the findings of the Phase I Environmental Site Assessment [ESA] conducted by Earth Systems Southwest [ESSW] for nine village properties, identified as APNs 770-123- 002, -003, -004, -006, and -010, and 770-124-002, -003, -007, and -009, consisting of approximately 3.13 acres of partially developed land located on the south side of Calle Tampico in La Quinta, California [the site]. We have endeavored to perform this ESA in conformance with the scope and limitations of ASTM Practice E 1527-05. Any exceptions to or deletions from this practice are described in Sections 1.5 and 1.6 of this report. The purpose of this assessment was to evaluate the site for the presence of Recognized Environmental Conditions [REC] related to the current or past use, handling, storage, or disposal of hazardous materials or petroleum products on or near the subject property. This assessment has revealed no evidence of RECs in connection with this property except as discussed in the project summary presented below. Our findings and conclusions are summarized as follows: 1. The site was observed to consist of primarily undeveloped land with a residence located near the north -center of the site on APN 770-123-004 and an apartment building located near the south -center of the site on APN 770-124-007. Utility boxes were observed along the boundaries of the northern half of the site suggesting that other residences might have been planned for that area, but no evidence of other buildings was observed in the historical aerial photos. Evidence of a prior use of the site for agriculture was not encountered. EARTH SYSTEMS SOUTHWEST March 31, 2011 - 13 - File No.: 11937-01 Doc. No. 11-03-768 2. A small amount of debris was observed on the site. The debris does not appear to contain hazardous materials and is not considered an REC. 3. The yard of the apartment building had a gravel ground cover. The gravel appeared to have been installed in the last 5 years, based on historical aerial photographs. Evidence of staining was not observed during the site visit or in the historical aerial photographs. We suspect the gravel was placed to reduce dust and/or weeds. 4. Evidence of the on -site manufacture, storage, or disposal of hazardous materials was not observed. 5. The site vicinity, consists of primarily residential, commercial, and vacant properties. Evidence was not observed that the site was adversely affected by activities in the site vicinity. 6. The site was not identified in the agency database review. The sites in the site vicinity do not appear to pose a risk to the subject site based on the status of those sites, the distance, or direction from the subject site, or the nature of the issue(s) at those sites. j 8.0 RECOMMENDATIONS RECs were not identified for this site. Therefore, further investigations do not appear warranted. no EARTH SYSTEMS SOUTHWEST March 31, 2011 - 14 - File No.: 11937-01 Doc. No. 11-03-768 REFERENCES California Department of Toxic Substances Control, EnviroStor website, http://www.envirostor.dtsc.ca.gov/public/default.asp, accessed March 27, 2011. California Department of Water Resources [DWR], 1964, Bulletin Number 108 — Coachella Valley Investigation, July 1964. California Environmental Protection Agency, State Water Resources Control Board, https://geotracker.waterboards.ca.gov/, website accessed March 27, 2011. City of La Quinta Planning Department, 2011, Official Zoning Map, dated September 2007, http://www.la-guinta.ory/Index.aspx?page= 105, website accessed March 27, 2011. , Redevelopment Agency, Ms. Betty Sawyer, email communication, March 29, 2011. Coachella Valley Water District [CVWD], 2008, Wilfred G. Gonzalez, Water Resources Supervisor, email communication, January 29, 2008. Earth Systems Southwest, aerial photograph archives, as listed below: Date Source/Flight Frame Approximate Scale 11-27-1939 Fairchild 29 1'= 12,000' 12-16-1955 Fairchild 62 1" = 2,000' 06-20-74 RCFCD 705 & 706 1" = 2,200' 04-15-80 RCFCD 666 & 667 1" = 2,200' 01-20-84 RCFCD 822 & 823 1" = 1,700' 01-15-90 RCFCD 13-78 & 13-79 1" = 1,600' 03-18-95 RCFCD 13-71 & 13-72 1" = 1,600' 03-14-00 RCFCD 13-75 & 13-76 1" = 1,600' 2007, Report of Phase I Environmental Site Assessment, Northeast Corner Avenida Montezuma and Avenida Mendoza, Assessor's Parcel Number 773-077-014, La Quinta, Riverside County, California, File No.: 11204-01, Doc. No.: 07-08-738, dated August 10, 2007. Fidelity National Title Company, Preliminary Report, Vacant Land, La Quinta, California, Order No. 33402914, dated March 9, 2011 (APN 770-124-009). Preliminary Report, Vacant Land, La Quinta, California, Order No. 33402915, dated March 9, 2011 (APN 770-123-006 and -010). Preliminary Report, Vacant Land, La Quinta, California, Order No. 33402911, dated March 9, 2011 (APNs 770-124-002 and -003). EARTH SYSTEMS SOUTHWEST March 31, 2011 - 15 - File No.: 11937-01 Doc. No. 11-03-768 Preliminary Report, 78186 Buena Ventura, La Quinta, California, Order No. 33402924, dated March 8, 2011 (APNs 770-123-062 -003, and -004). Garbutt, Virginia (former owner), attempted telephone contact, March 29, 2011. Google Earth, aerial photographs accessed over the internet on March 31, 2011. Nispero Properties (former owner), Rob Capetz, Robert Hill, attempted telephone contact, March 29, 2011. NIS Yield Partners (former owner), Ted Newell, telephone contact, March 29, 2011. Riverside County Department of Building and Safety, telephone contact, March 28, 2011. Riverside County Transportation and Land Management Agency [TLMA], Riverside County Land Information Service, www.tlma.co.riverside.ca.us/gis/gisdevelop.html, website accessed March 27, 2011. State of California Department of Conservation -Division of Oil, Gas & Geothermal, http://maps.conservation.ca.gov/doms/doms-app.html, website accessed March 27, 2011. Track Info Services LLC, Environmental FirstSearch Report, dated March 28, 2011. United States Department of Defense, Defense Environmental Restoration Program, Formerly Used Defense Sites, Findings and Determination of Eligibility, La Quinta, La Quinta, California, Site No. J09CA738800, dated September 28, 1999. Geologic Survey, 7.5 minute La Quinta, Calif Quadrangle, 1959, photo -revised 1980. US Department of Environmental Protection, 2005, 40 CFR Part 312, Standards and Practices for All Appropriate Inquiries, Final Rule, dated November 1, 2005. whitepages.com, website accessed March 29, 2011. EARTH SYSTEMS SOUTHWEST APPENDIX A FIGURES 1 EARTH SYSTEMS SOUTHWEST (1 ✓`\�Y� 3 v� J t` 3it�� r U I&Tr mi t -). T rr rlt .�/ t / 1 ! •e to �vk /. ��+ 'bt c �<' I R n �4 S � : s7 i� 31 � •-_ .t. G�tf �l y 1 at,:,(�` �` _ � �'s +J�l Nate+ .I �. ., 11 .i• of j� � ' • is � al�a� t a+fj(.�e��p :.. lkrla�. a/ei0 ' •{ ` \l.'/�L.' \ ,.- }�._ 111E JrgT Fry �l+�; 3`.tiI�lll �!?+ .- .� \�1.�^<�. -y ez 3 r.. \� r 1 } � �� I tl' �.4 •LET_! t i. -��_ � * #}t:-� 33 t r - f 1 {i}t\ \ t l'({ L �J jY �4� l`r 1 i7}j�.� y � �9�t a � ' f Ott. �(, 1 f f / H I1 t�� .A=!t I }-� 31t,I 1!"�y.. .1 iir ti.Zz- I I \{ny � it � ~i 11 1� I ( i.' I l N �� • , ';• I Y�'Yr .�� I�l.' �� ( �,.)j, / „4l�y-`t t�.._ {. 's t�;�r s' .._l \• I ids }jer''I'll J f•�. .. \f �V� 114p � 5 i \ r ii 'p1 � � t �',Sqp, '_ irl �)f�if GJC�� ` ♦'Yf I. � ` tl�� .i •� \ �d 1 I�`X a � -i n I c7�"."if t .l'Cf �'�!�v r f `thy}( i t tti !J� 5° lam- (lt t > t•uuY`� �� q. -- t i r - . 1X�� } `I -ate w �1.$. � W_ _• r t "p'�• 1� 1' .s.� -ram •,_� - I t �$��". r �tl ; �t . i Jet ` ,/•`o. Y/' Y �'lt \ , 111111 r�,� A7 L (- v t _ + ..iA RTlb �.� rar 1 • M( t�': � Lk'A..f�' i ty - i Hm¢ !Atop115GS i i hlinnl, Q,adra d, Alap L., 0,.... . Col,/ datM 1`59, phew-m lard I�,SII. Figure Site Location ------ Silc CtinlIld(Itq Nine Village Piopertics La Quinta. Riverside County. California Seale: I" = 2,000' Earth Systems t� 2.000• 4,000' I Southwest _ 0313I/I1 11937-0I LF,GEND Figure 2 Site Lavoul Silc P,uundm Nine Village Properties L.a Qninta, Riversicic County, California Approximate Scale: I" = 115' ®� Earth Systems l) 115 270 Southwest 030 I l l l I 1937-01 i APPENDIX B PHOTOGRAPHS EARTH SYSTEMS SOUTHWEST Photo I : Typical view of the site looking, west fhnn near the cistern boundary Photo?: Residence in the not ih-central porlinn of the site. Earth Systems Southwest 0V31!I I File No.: 11937-01 Pa"c I 'T Site Photographs Ninc Villavle Properties La Quinta. Riverside County, California Photo 3: Apartment buildin e in ,outhern portion of die site. Pboto d: Backyard of aparunent building_. Note gravel eruundcovcn Earth Systems �- Southwest 03'I1/11 Filc No.: 11937-01 Page 2 of3 Site Photographs Nine Village Properties La Quinta, Riverside County, Culirrn'nia �� ro `s, o 'd a li) g r. S r {$ 1�,J , �Af9•� l c N*1• � a N Y ��r jtf �'F �.•rZ'�� L ;5'. T �.• � tlf 1 [ I .� fj b f � Phulu 5: One of Four utility lids observed alone Calk Tampico. .y 4 -Slow 'Jl. _- t Y.' I.a' +V. L` Il [.J 1•!i� i 44 , tr " ¢ yA Ot �k e 3 Y�t fY1n� c yet I'hoto b: Small stockpile of soil and minor debris observed in the north -central portion of the siic. Earth Systems site Photographs Southwest Nine Village Properties La Quinia. Riverside County. California 03!31i1 l File No.: 11937-III Page 3 01 l APPENDIX C AGENCY DATABASE SEARCH REPORT EARTH SYSTEMS SOUTHWEST TRACK 1INFo sm ffcE 4% LLC Environmental FirstSearchTM Report CALLE TAMPICO LA QUINTA CA 92253 Job Number: 11937-01 PREPARED FOR: Earth Systems Southwest 79-811B Country Club Drive Bermuda Dunes, CA 92203 03-28-11 Tel: (866) 664-9981 Far: (818) 249-4227 Environmental FirstSearch is a registered trademark of FirstSmmh Technology Corporation. All rights reserved. Environmental FirstSearch Search Summary Report Target Site: CALLE TAMPICO LA QUINTA CA 92253 FirstSearc6 Suinroa Database Set Updated Radius Site 1/8 114 1/2 1/2> ZIP TOTALS NPL Y 01-14-11 1.00 0 0 0 0 0 0 0 NPL Delisted Y 01-14-I1 0.50 0 0 0 0 - 0 0 CERCLIS Y 01-26-I1 0.50 0 0 0 0 0 0 NFRAP Y 01-26-11 0.50 0 0 0 0 - 0 0 RCRA COR ACT Y 11-10-10 1.00 0 0 0 0 0 0 0 RCRA TSD Y 01-I1-I1 0.50 0 0 0 0 - 0 0 RCRA GEN Y 01-I l-I1 0.25 . 0 0 0 - - 7 7 RCRA NLR Y 01-I1-I1 0.12 0 0 - - - 0 0 Federal IC/EC Y 03-01-I1 0.25 0 0 0 - - 0 0 ERNS Y 01-24-I1 0.17. 0 0 - - 7 7 Tribal Lands Y 1241-05 1.00 0 0 0 0 0 1 1 Staterrribal Sites Y 03-14-11 1.00 0 0 0 1 0 0 1 State Spills 90 Y 03-09-11 .0.12 0 0. - 0 0 Staterrribal SWL Y 03-07-I1 0.50 0 0 0 0 - 0 0 Staterlribal LUST Y 03-07-11 0.50 0 0 0 3 - 2 5 Staterrribal UST/AST Y 10-27-10 0.25 0 2 1 - - 8 11 Staterrribal EC Y NA 0.25 0 .0 0 - - 0 0 Staterrribal IC Y 03-09-11 0.25 0 0 0 - - 0 0 Staterrribal VCP Y 03-14-11 0.50 0 0 0 0 - 0 0 Staterrribal Brownfields Y NA 0.50 0 0 0 0 - 0 0 State Permits Y 10-13-10 0.25 0 0 2 - 20 22 State Other Y 03-14-11 0.25 0 0 1 - 7 8 -TOTALS- 0 2 4 4 0 52 62 Notice of Disclaimer Dix to the limitations, constraints, inaccuracies and incompleteness of government information and computer mapping data currently available to TRACK Info Services, certain conventions have been utilized in preparing the locations of all federal, state and local agency sites residing in TRACK Info Services's databases. All EPA NPL and state landfill sites are depicted by, a rectangle approximating their loca*6 and size, Jlie boundaries of the rectangles represent the eastern and western most longitudes: the northern and southern most latitudes. As such, the Trapped areas may exceed the actual areas and do not represent the actual boundam of these properties. All other sites are depicted by a point representing their approximate address location and make no attempt to represent the actual areas of the associated property. Actual boundaries and locations of individual properties can be found i4,the files msiding at the agency responsible for such information. Waiver of Liability Although TRACK Info Services uses its best efforts to msearch the actual location of each site, TRACK Info Services does not and can not warrant the accuracy of these sites with regard to exact location and size. All authorized users of TRACK Info Servioces services proceeding are signifying an understanding of TRACK Info Servi0ces searching and mapping camemions, and agree to waive any and all liability claims associated with search and map results showing incomplete and err inaccurate site locations. Environmental FirstSearch Site Information Report Request Date: 03-28-11 Search Type: COORD Requestor Name: Kirsten Murch Job Number: 11937-01 Standard: ASTM-05 Target Site: CALLE TAMPICO LA QUINTA CA 92253 Demographics Sites: 62 Non-Geocoded: 52 Population: NA Radon: NA Site Location Degrees (Decimal) Degrees (Min/Sec) UTMS Longitude:-116.300431-116:18:2 Easting: 564848.971 Latitude: 33.677366 33:40:39 Northing: 3726410.031 Zone: 11 Comment: Comment Additional Requests/Services Adjacent ZIP Codes: 0 Mile(s) Services: ZIP Code City Name ST Dist(Dir set Requested? Date Sanborn No Aerial Photographs No Historical Topos No City Directories Yes 03-28-11 Title Search/Env Liens No Municipal Reports No Online Topos No Environmental FirstSearch +� Selected Sites Summary Report Target Property: CALLE TAMPICO JOB: 11937-01 ?� LA QUINTA CA 92253 TOTAL: 62 CEOCODED: 10 NON CEOCODED: 52 SELECTED: 15 a Page No. DB Type Site Name/ID/Status Address Dist/Dir Map ID I UST GTE LA QUINTA C 0 78150 AVENIDA LA FONDA 0.06 SW 2 TISID-STATE37040/ACTIVE LA QUINTA CA 92253 a 2 UST GTE CALIFORNIA LA QUINTA 78150 AVENIDA LA FONDA 0.06 SW 1 RIVERSIDECO83143 LA QUINTA CA 92253 a 2 PERMITS TRADITION CLUB ASSOCIATES LLC 79505 52ND AVE 0.25 SE 4 1 CAL000260881/ACTIVE LA QUINTA CA 92253 3 OTHER Vp.LAGE'STATION 77985 AVENIDA MONTEZUMA 0.25 SW 3 RICOOEN_1261/NOT REPORTED LA QUINTA CA 92253 J 3 PERMITS' NEWELL INVESTMENT SERVICES, INC 77985 AVENIDA MONTEZUMA 0.25 SW 3 CAL000292569/ACTIVE - LA QUINTA CA 92253-� 4 UST ALLIANCE SERVICE STATION end ANDY 77985 AVENIDA MONTEZUMA 0.25 SW 3 PIVERSIDE0083297 LA QUINTA CA 92253 5 LUST CIRCLE 457 _ 781 tQ CALLE TAMPICO - 0A0 NW 5 T0606500968/COMPLETED - CASE CLO CA QUINTA CA 92253 6 LUST CIRCLE K 457 78110 CALLE TAMPICO 0.40 NW 5 T0606500974/COMPLETED - CASE CLO LA QUINTA CA 92253 8 STATE CALLE TAMPICO ELEMENTARY SCHOOL EISENHOWER DRIVE/CALLE TAMP 0.44 NW 6 CAL3301OD58/NO FURTHER ACTION LA QUINTA CA 92253 10 LUST BURNSRANCH 78505 AVENUE 52 0.49 SW 7 T06Q650D969/COMPLETED - CASE CLO LA QUINTA CA 92253 Environmental FirstSearch Selected Shes'Summary Report Target Property: CALLE TAMPICO JOB: 11937-01 LA QUINTA CA 92253 TOTAL: I 62 GEOCODED: 10 NON GEOCODED: 52 SELECTED: 15 Page No. DB Type Site Name/ID/Status Address Dlst/Dir Map ID 11 OTHER COUNTY OF RIVERSIDE -LA QUINTA(HHW) CROSS OF AVE 52 end DESERT NON GC RICOGEN_1289MOT REPORTED LA QUINTA CA 92253 12 OTHER CALLE TAMPICO ELEMENTARY SCHOOL EISENHOWER DRIVE/CALLE TAMP NON OC CAL33010058INO FURTHER ACTION LA QUINTA CA 92253 14 PERMITS COUNTY OF RIVERSIDE / HAZMAT DIV SOUTH SIDE AVE 52 DESERT NON GC CAM I1000985/ACTIVE LA QUINTA CA 92253 15 UST LA QUINTA HOTEL GOLF CLUB 77550 CALLS TAMPICO NON GC TISID-STATE36906/ACTIVE LA QUINTA CA 92253 16 UST KSL DESERT RESORTS,INC. LA QUINTA 77550 CALLE TAMPICO • NON GC RWERSIDEC083295 LA QUINTA CA 92253 I I Environmental-FirsiSearch Site Detail Report, 3.1 Target Property: CALLE TAMPICO JOB:11937-01� LA QUINTA CA 92253 UST SEARCH ID: 7 DIST/DIR: 0.06 SW MAP ID: 2 f NAME: GTE LA QUINTA CO REV: 01/01/94 ADDRESS: 78150 AVENIDA LA FONDA IDI: TISID-STATE3704t1 I LA QUINTA CA 92253 ID2: Riverside STATUS: ACTIVE CONTACT. PHONE: UST HISTORICAL DATA This site was listed in the FFD Zip Code List as a UST site. The Office of Hazardous Data Management produced the FIDS list. The FIDS list ism index of names and locations of sites recorded in various California State environmental agency databases, It is sorted by zip code and as an index, details regarding the sites was never included. The UST information included in FIDS a provided by the Office of Hazardous Data Management was originally collected from the SWEEPS database. The SWEEPS database recorded Underground Storage Tanks and was maintained by the State Water Resources Control Board (SWRCB). That agency no longer maintains the SWEEPS database and last updated it in 1994. The last release of that 1994 database was in 1997. Oversight of Underground Storage Tanks within California is now conducted by Certified Unified Program Agencies referred to as CUPA s. Them are approximately 102 CUPA a and Local Oversight Programs (LOP s) in the State of California. Most are city or county government agencies. As of 1998, all sites or facilities with underground storage tanks were required by Federal mandate to obtain certification by designated UST oversight agencies (in this case, CUPA a) that the UST/s at their location were upgraded or removed in adherence with the 1999 RCRA standards. Information from the FIDS/SWEEPS lists were included in this report search to help identify where underground storage tanks may have existed that were not recorded in CUPA databases or lists collected by us. This may occur if a tank was removed prior to development of recent CUPA UST lists or never registered with a CUPA. 7� Selected Site Details Page - I Environmental FirstSearch Site Detail Report Target Property: CALLE TAMPICO JOB: 11937-01 LA QUINTA CA 92253 UST SEARCHID: 6 - DIST/DIR: 0.06 SW MAP ID: 1 NAME: GTE CALIFORNIA LA QUINTA REV: 06/142000 ADDRESS: 78150 AVENIDA LA FONDA IDI: RIVERSIDECO83143 LA QUINTA CA 92253 ID2: Riverside STATUS: CONTACT: PHONE: RIVERSIDE COUNTY TANKS LIST INFORMATION Number of Tanks: .. / PERMITS SEARCH ID: 3 DIST/DIR: 0.25 SE MAP ID: 4 NAME: TRADITION CLUB ASSOCIATES LLC REV: 02/19/10 ADDRESS: 78505 52ND AVE IDI: CAL000260881 LA QUINTA CA 92253 ID2: , RIVERSIDE STATUS: ACTIVE CONTACT: PHONE: THE CALIFORNIA DEPARTMENT OF TOXIC SUBSTANCES CONTROL HAZARDOUS WASTE MANIFEST INVENTORY (HWMII SITE INFORMATIONYROM THE CA EPA AND DTSC HAZARDOUS WASTE TRACKING SYSTEM fHWTS): , Date Record was Created: - 10/16/1002 3:48i39 PM .. Inactivity Date: ... .. Facility Mail Name: Facility Mailing Address: 7850551ndAve, LA QUINTA, CA 92253 Owner Name: Tradition Club Associates LLC Owner Address: 78505 51nd Ave, LA QUINTA, CA 92253 Contact Name: Julie Harrts/human resources Coated Address: 78505 52nd Ave, LA QUINTA, CA 92253 Contact Phone: 7605645429 Selected Site Details Page - 2 Environmental. FirstSearch Site Detail Report Target Property: CALLS TAMPICO LA QUINTA CA 92253 JOB: 11937-01 OTHER SEARCH ID: 4 DIST/DIR: 0.25 SW MAP ID: 3 NAME: VILLAGE STATION REV: 09/06/05 ADDRESS: 77985 AVENIDA MONTEZUMA IDI: RICOGEN 1261 LA QUINTA CA 92253 ID2: RIVERSIDE - STATUS: NOTREPORTED CONTACT: PHONE: RIVERSIDE COUNTY DEPARTMENT OF ENVIRONMENTAL HKALTH HAZARDOUS WACrE .E IL Please Note: 77- responsible agc-Y does ma provide details for these records. For further hilbrmaaon on a site or to schedule a file review, please contact the RHerside County Environmental Health Department at the following phone number: (951) 358-5055 PERMITS SEARCH ID: 2 DIST/DIR: 0.25 SW MAP ID: 3 NAME: NEWELL INVESTMENT SERVICES, INC - REV: 02/19/10. ADDRESS: 77985 AVENIDA MONTEZUMA IDI: CAL000292569 LA QUINTA CA 92253 ID2: RIVERSIDE - STATUS: ACTIVE CONTACT: PHONE: THE CALIFORNIA DEPARTMENT oFT4GXIC MWTANCZS CONTROL HAZ,ARDOtO&WASTE MANWEST INVENTORY(HWMII SITE INFORMATION FROM THE CA EPA AND MC HAZA DOLLS WASTE TRA (ONC cY9' EM r_H ; SI Date Record was Created: L 312512005 2:08:24 PM Iantivity Date: Facility Mail Nana: Facility Mailing Address: PO BOX 1574, LA QUINTA, CA 92247-1574 Owner Nome: NEWELL INVESTAIENTSERVICES INC Owner Address: PO BOX 1574, LA QWNTA; C4 92247-1574 Contact Name: TEDD NEWELL PRES Contact Address: PO BOX 1574, LA QUINTA, CA 92247-1574 Contact Phone: 7606681964 Selected Site Details Page - 3 Environmental Firstsearch Site Detail Report Target Property: CALLE TAMPICO JOB: 11937-01 LA QUINTA CA 92253 UST SEARCH ID: 5 DIST/DIR: 0.25 SW MAP ID: 3 NAME: ALLIANCE SERVICE STATION and ANDY S AUTO REPAIR REV: 06/14/2000 ADDRESS: 77985 AVENIDA MONTEZUMA IDI: RIVERSIDECO83297 LA QUINTA CA 92253 ID2: Riverside STATUS: CONTACT: PHONE: _RIVERSIDE COUNTY TANKS LIST INFORMATION Number of Toolor- 3 Selected Site Details Page - 4 Environmental FirstSearch Site Detail Report Target Property: CALLS TAMPICO LA QUINTA CA 92253 LUST JOB: 11937-01 II SEARCH ID: 10 DIST/DIR: 0.40 NW MAD m. c --11 NAME: CIRCLE K 457 ADDRESS: 78110 CALLE TAMPICO LA QUINTA CA 92253 RIVERSIDE CONTACT: REV: IDI: ID2: STATUS: PHONE- 03/07/11 T0606500968 COMPLETED -CASE CLOSED Please note that some data previously provided by the Staff WMer Rtaources Comrol Board /n the LUS7YS doaabax is rtot currently! the agency in she most recent edition. Incidents that occurred after the year 2000 may not have much information Field headers with following gJbr should be interpreted as unreported by the agency LEAD AGENCY: RIVERSIDE COUNTYLOP REGIONAL BOARD CASE NUMBER: 777253002 LOCAL AGENCY: RIVERSIDE COUNTYLOP LOCAL CASE NUMBER: 89170 RESPONSIBLE PARTY: ADDRESS OF RESPONSIBLE PARTY: SITE OPERATOR: WATER SYSTEM: CASE TYPE: LUST Cleasop Site POTENTIAL CONTAMINANTS OF CONCERN: Gasoline POTENTIAL MEDIA AFFECTED: Soil LEAK CAUSE: LEAK SOURCE: HOW LEAK WAS DISCOVERED: DATE DISCOVERED (blank if not reported): HOW LEAK WAS STOPPED: STOP DATE (blank If not reported): STATUS Completed -Care Closed STATUS DATE- 1989-05-03 00:00:00 ABATEMENT METHOD (plane note that nod all code tramlallons have been provided by the reporting agency): ENFORCEMENT TYPE (please note that Not all code transladots have been provided by the reporting agency): DATE OF ENFORCEMENT (blank if not reported): SITE HISTORY (blank If not reported)-. ACTION TYPE (blank if not reported): Other DATE (blank If not reported): 195&01-0100.00. oo ACTION (blank if not reported): Leak Reported ACTION TYPE (blank H we reported): Other DATE (blank If not reported): 1950-01-0100,00:00 ACTION (blank if not reported): Leak Discovery ACTION TYPE (blank If not reported): Other DATE (bleak Hnot reported): 1950-01-0100:00:00 ACTION (blank if not reported): Leak S}otoped MTBE DATA FROM THE CALLFORNLs STATE WATER RF-� R Fs s'ONTROIDARD LUSTIS DATABASE MTBE DATE(Date of historical mesin a n MTBE concentration): MTBE GROUNDWATER CONCENTRATION (parts per billion), MTBE SOIL CONCENTRATION (parts per million): - MTBE CNTS: MTBE FUEL: MTBE TESTED: MTBE CLASS: iitformmlon Selected Site Details Page - 5 J. Environmental FirstSeareh Site Detail Report Target Property: CALLE TAMPICO JOB: 11937-01 LA QUINTA CA 92253 LUST SEARCH ID: 9 DIST/DIR: 0.40 NW MAP ID: 5 NAME: CIRCLE K 457 REV: 03/07/11 ADDRESS: 78110 CALLE TAMPICO' IDI: T0606500974 LA QUINTA CA 92253 ID2: RIVERSIDESTATUS: COMPLETED -CASE CLOSED CONTACT: PHONE: RELEASE DATA FROM THE CALIFORNIA STATE WATER REJQURCES CONTROLpATABASE Please rote that soar data previously provided by the State Wafer Resources Comrol Board in the LUST/S dotabase it not currrmly being provided by the agency in the more recent edition. Incidents that occurred after the year 2000 may mn have much ttlormaion Field headers with blank Mformatian following after should be interpreted as unreported by the agency LEAD AGENCY: COLORADO RIVER BASIN RWQCB (REGION 7) REGIONAL BOARD CASE NUMBER: 777253008 LOCALAGENCY: RIVERSIDE COUNTY LOP LOCAL CASE NUMBER: 941142 RESPONSIBLE PARTY: ADDRESS OF RESPONSIBLE PARTY: SITE OPERATOR: WATER SYSTEM: CASE TYPE: LUSTCleanvp Stte POTENTIAL CONTAMINANTS OF CONCERN: Gasoline POTENTIAL MEDIA AFFECTED: Soil LEAK CAUSE: LEAK SOURCE: HOW LEAK WAS DISCOVERED: DATE DISCOVERED (blank if not reported): HOW LEAK WAS STOPPED: STOP DATE (blank If not reported): STATUS: Completed -Case Closed STATUS DATE: 2002-10-16 00:00:00 ABATEMENT METHOD (please note that not all code translations have been provided by the reporting agency): ENFORCEMENT TYPE (please note that not all code translations have been provided by the reporting agency): DATE OF ENFORCEMENT (blank if not reported): SITE HISTORY (blank if not reported): ACTION TYPE (blank if not reported): ENFORCEMENT DATE (blank if not reported)- 2002-10-16 00:00:00 ACTION (blank if not reported): ClosurdNa Further Action Letter ACTION TYPE (blank If not reported): Other DATE (blank if not reported): 1950-01-01 00:00.,00 ACTION (blank if not reported): Leak Reported ACTION TYPE (blank if not reported): Other DATE (blank if not reported): 1950-01-01 00:00:00 ACTION (blank if not reported): Leak Discovery ACTION TYPE (blank if not reported): REMEDIATION DATE (blank if not reported): 1950-01-0100.-00.,00 ACTION (blank If not reported): Excavate and Dispose MTBE DATA FROM THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD LUSTIS DATABASE MTBE DATE(Date of historical maximum MTBE concentration): MTBE GROUNDWATER CONCENTRATION (parts per billion): _ MTBE SOIL CONCENTRATION (parts per million): MTBE CM: MTBE FUEL: MTBE TESTED: Continued on next page - Selected Site Details Page - 6 III Environmental FirstSearch Site,Detail Report Ill Target Property: CALLE TAMPICO JOB: 11937-01 LA QUINTA CA 92253 Selected Site Details Page - 7 Environmental Firsdearch Site Detail -Report Target Property: CALLS TAMPICO JOB: 11937-01 LA QUINTA CA 92253 STATE SEARCHID: 1 DISTID1R: 0.44 NW MAP In: NAME: CALLE TAMPICO ELEMENTARY SCHOOL REV: 03/14/11 ADDRESS: EISENHOWER DRtVE/CALLE TAMPICO IDI: CAL33010058 LA QUINTA CA 92253 ID2: SCHOOL RIVERSIDE STATUS: NO FURTHER ACTION CONTACT: PHONE: GENERAL SITE INFORMATION Site Type. Status: status Date: NPL She: Funding: Regulatory Agencies Involved: Lead Agency: Project Manager. Supervisor. Brach: Acres: Assosor a Parcel Number: Past Uses: Potential Contaminants: Continued Contaminants: Potential Media Affected: Restricted Use: Site Management Required: Special Programs Associated with this Site: School Investigation No Further Action 2002-11-20 00.00:00 NO School District D7SC NONE SPECIFIED Javier Hurojosa Cleanup Chatsworth 13 NONE SPECIFIED AGRICULTURAL - ROW CROPS NONE SPECIFIED 31000 NONE SPECIFIED NONE SPECIFIED NO NONE SPECIFIED OTHER SITE NAMES (blank below not reported by • ency) CALLE TAMPICO ELEMENTARYSCHOOL DESERT SANDS UNIFIED SCHOOL DISTRICT DESERT SANDS USD-PRPSD CALLE TAMPICO ELM LA QUINTA ELEMENTARY SCHOOL 404339 33010058 COMPLETED ACTIVITIES AND DISC COMMENTS REGARDING THIS SITE (blank below not reported by agency) Arco Name: PROJECT WIDE Sub- Area Name: Document Type: Prd/urinary Endangerment Assessment Report Completion Date: 2002-11-2000:00:00 Comments: Am Name: PROJECT WIDE Sob- Am Name: Document Type: Technical Report Completion Date: 2002-I1-20 00.00:00 Comments: accepted Am Name: PROJECT WIDE Sub Am Name: Document Type. Environtnewal Oversight Agreement - Continued on next page - Selected Site Details Page - 8 ail Environmental FirstSearch Site Detall Report Target Property: CALLE TAMPICO JOB:. 11937-01 LA QUINTA CA 92253 STATE SEARCH ID: 1 DISTIDIR: 0.44 NW MAP ID: 6 NAME: CALLE TAMPICO ELEMENTARY SCHOOL REV: 03/14/11 ADDRESS: EISENHOWER DRIVEICALLE TAMPICO IDI: CAL33010058 LA QUINTA CA 92253 ID2: SCHOOL RIVERSIDE CONTACT: STATUS: NO FURTHER ACTION ' PHONE: Completion Date: 2002-05-14 00:00:00 Commeow - Area Nome•. PROJECT WIDE Sub Area Name•. Document Type: Cost Recoreq Cfomuf Memo Completion Date: 2002-11-7000.'M.00 Comments: 11 I j j Selected Site Details Page - 9 i Target Property: SEARCH ID: 8 Environmental FirstSeareh Sikbietail Report CALLE TAMPICO LA QUINTA CA 92253 NAME: BURNSRANCH ADDRESS: 78505 AVENUE 52 LA QUINTA CA 92253 RIVERSIDE CONTACT: LUST DIST/DIR: 0.49 SW REV: lot: ID2: STATUS: PHONE: Please note that some data previously provided by the State Water Resources Control Board in the agencyin the most recent edition Incidents that attuned offer the year 2000 may not have following after shoWd be interpreted as unreported by the agency. LEAD AGENCY: RIVERSIDE COUNTY LOP REGIONAL BOARD CASE NUMBER: 7T2253003 LOCALAGENCY: RIVERSIDE COUNTY LOP LOCAL CASE NUMBER: 89781 RESPONSIBLE PARTY: ADDRESS OF RESPONSIBLE PARTY: SITE OPERATOR: WATER SYSTEM: JOB: 11937-01 MAP ID - 03107/11 T0606500969 - COMPLETED -CASE CLOSED se is not currently being provided by Field headers with blank it{formation CASE TYPE: LUSTCIeanup Site POTENTIAL CONTAMINANTS OF CONCERN: Gasoline POTENTIAL MEDIA AFFECTED: Soil LEAK CAUSE: LEAK SOURCE: HOW LEAK WAS DISCOVERED: DATE DISCOVERED (blank If not reported): HOW LEAK WAS STOPPED: STOP DATE (blank if not reported): STATUS: Completed -Case Closed STATUS DATE: 1992-07-22 00:00.00 ABATEMENT METHOD (pkave note that not all code tnwistions have been provided by the reporting agency): ENFORCEMENT TYPE (please note that not all code tnoalatbos have been provided by the reporting agency): DATE OF ENFORCEMENT (blank if not reported): SITE HISTORY (blank if not reported): ACTION TYPE (blank if not reported): Other DATE (blank If not reported): 1950-01-0100.-00:00 ACTION (blank If not reported): Leak Stopped ACTION TYPE (bleak if not reported): Other DATE (blank if not reported): 1950-01-0100:00: 00 ACTION (blank If not reported): Leak Reported ACTION TYPE (bleak if not reported): Other DATE (blank if not reported): 1950-01-0100:00.-00 ACTION (blank If not reported): Leak Discovery MTBE DATA FROM THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD L STIS DATABASE MTBE DATE(Date of historical maatmam MTBE conmatntioo): MTBE GROUNDWATER CONCENTRATION (parts per billion): MTBE SOIL CONCENTRATION (parts per million): MTBE CNTS: MTBE FUEL: MTBE TESTED: MTBE CLASS: Selected Site Details Page - 10 Environmental FirstSearch Site Detail Report Target Properly: CALLE TAMPICO LA QUINTA CA 02253 JOB: 11937-01 OTHER SEARCH ID: 46 DIST/DIR: NON GC MAP ID: NAME: COUNTY OF RIVERSIDE -LA QUINTA(HHW) REV: 09/06/05 ADDRESS: CROSS OF AVE 52 and DESERT CLUB DR - MI: RICOGEN 1289 LA QUINTA CA 92253 ID2: RIVERSIDE, STATUS: NOT REPORTED CONTACT: - PHONE: RIVERSIDE COUNTY DEPARTMENT OF ENVIRONMENTAL HEALTNILA7s DO iS WAsv FN •TORS LIST Pltme Nine resPamible agnry dots rem provide details for OWN records. Forffue mr Wommttan an a site or to xhedu/e afile review, plea,, contact the Riverside Comity Environmental Heahh Department at the following phone number. (951) 358-5055 Selected Site Details Page - 11 Target Property: Environmental FirstSearch Site Detail Report CALLE TAMPICO LA QUINTA CA 92253 OTHER JOB; 11937-01 11 SEARCH ID: 45 DIST(DIR: NON GC MAP II NAME: CALLE TAMPICO ELEMENTARY SCHOOL ADDRESS: EISENHOWER DRIVE/CALLE TAMPICO LA QUINTA CA 92253 RIVERSIDE CONTACT: GENERAL SITE INFORMATION Site Type: States: Sates Date: NPL Site: Funding: Regulatory Agencies Involved: Lead Agency: ProjM Manager: Supervisor. Branch: Awes: Assessor a Parcel Number: Past Uses: Potential Contaminants: Confirmed Contaminants: Potential Media Affected: Restricted Use: Site Management Required: Special Programs Associated with this Site: School Investigation No Further Action 2002-11-2000:oo:0o NO School Distract DISC NONE SPECIFIED Javier Hinojosa Cleanup Chatsworth 13 NONE SPECIFIED AGRICULTURAL - ROW CROPS NONE SPECIFIED 31000 NONE SPECIFIED NONE SPECIFIED NO NONE SPECIFIED OTHER SITE NAMES (blank below - not reported by seen") CALLE TAMPICO ELEMENTARYSCHOOL DESERT SANDS UNIFIED SCHOOL DISTRICT DESERT SANDS USD-PRPSD CALLE TAMPICO ELM LA QUINTA ELEMENTARYSCHOOL 404339 33010058 REV: 03/14/11 lot: -CAL33010058 ID2: STATUS: NO FURTHER ACTION PHONE: COMPLETED ACTIVITIES AND DTSC COMMENTS REGAnnnllr THI CITE (bank below not reported by am") Area Name: PROJECT WIDE Sub- Area Name: Document Type: Prdadnary Endangerment Assessment Report Completion Date: 2002-11-20 00.00.00 Comments: Am Name: PROJECT If Sub Am Name: Document Type: Technical Report Completion Date: 2002-11-2000.00.00 Comments: accepted Am Name: PROJECT WIDE Sub Am Name: Document Type: Environmental Oversight Agreement - Continued on nev page - Selected Site Details Page - 12 Environmental FirstSearch Site Detail Report Target Property: CALLE TAMPICO JOB: 11937-01 LA QUINTA CA 92253 Selected Site Details Page - 13 Environmental-FlrstSearch Stte.Detall Report Target Property: CALLE TAMPICO LA QUINTA CA 92253 JOB:' 11937-01 PERMITS SEARCH ID: 30 DIST/DIR: NON GC MAP ID: NAME: COUNTY OF RIVERSIDE/HAZMAT DIV REV: 02/19/10' ADDRESS: SOUTH SIDE AVE 52 DESERT CLUB DR tot: CAH 111000985 LA QUINTA CA 92253 ID2: RIVERSIDE - STATUS: ACTIVE CONTACT: PHONE: Date Record was Created:- 7/24/2002 7:28:4/ AM Inactivity Date: Facility Mail Nana•: Facility Mailing Address: PO BOX 7600, RIVERSIDE, CA 92513-7600 Owner Name: COUNTY OF RIVERSIDE Owner Address: PO BOX 7600. RIVERSIDE, CA 925I3-7600 Cout et Name: MIKE DALY - Contact Address: - PO BOX 7600, RIVERSIDE, CA 92513-7600 Contact Phone: - 9093585871 HWMI WASTE TYPE AND TONNAGE INFORMATION by YEAR 1993-1999 1999 Waste Type: - 1999 Total Tonnage: 1998 Waste Type: 1993 Total Tonnage: 1997 Waste Type: 1997 Total Tonnage: 1996 Waste Type: 19% Total Tonnage: 1995 Waste Type: 1"5 Total Tonnage: 19% Waste Type: 1994 Total Tonnage: 1993 Waste Type: 1"3 Total Tonnage: - HWMI WASTE TYPE AND TONNAGE INFORMATION BY YEAR 200p-2008 2008 Waste Type: 2008 Total Tonnage: 2007 Waste Type: 2007 Total Tonnage: 2006 Waste Type: 2006 Total Tonnage: 1.43 2005 Waste Type: 2005 Total Tonnage: 2.96 2004 Waste Type: 2004 Total Tonnage: - 2003 Waste Type: Household waste 2003 Total Tonnage: 1.04 2002 Waste Type: 2002 Total Tonnage: 2001 Waste Type: 2001 Total Tonnage: 2000 Waste Type: 2000 Total Tonnage: Selected Site Details Page - 14 Environmental FirstSearch Site Detail Report Target Property: CALLE TAMPICO LA QUINTA CA 92253 UST JOB: 11937-01 SEARCH ID: 57 D1ST/DIR: NON GC MAP ID: NAME: LA QUINTA HOTEL GOLF CLUB REV: 01/01/94, ADDRESS: 775S0 CALLE TAMPICO IDI: TISID-STATE36906 LA QUINTA CA 92253 ID2: Riverside STATUS: ACTIVE 3 CONTACT: - PHONE: i UST HISTORICAL DATA This site was IiuM in the FIDS Zip Code List as a UST site. The Office of Hazardous Data Management produced the FmS list. The FIDS list is an index 1 of names and locations of sites recorded in various Califomia State environmental agency databases. It is sorted by zip code and as an index, details J regarding the sites were rtever included. The UST information included in FIDS as provided by the Office of Hazardous Dam Management was originally collected from the SWEEPS database. The SWEEPS database recorded Underground Storage Tanks and was maintained by the State Water Resources Control Board (SWRCB). That agency no longer maintains the SWEEPS database and Imt updated it in 1994. The last release of that 1994 database was in 1997. - Oversight of Underground Storage Tanks within California is now conducted by Certified Unified Program Agencies referred to as CUPA s. Then are approximately 102 CUPA a and Local Oversight Programs (LOP s) in the State of California. Most arc city or county government agencies. As of 1998, all sites or facilities with undiagnosed storage marks were required by Federal mandate to obtain certification by designated UST oversight agencies (in this case, CUPA s) that the UST/s at their location were upgraded or removed in adherence with the 1998 RCRA standards. Information from the FIDS/SWEEPS lists were included in this report search to help identify where underground stomp tanks may have existed that were ., not recorded in CUPA databases or list collected by us. This may occur if a link was removed prim to development of recent CUPA UST lists or never registered with a CUPA. I� Selected Site Details Page - 15 Environmental FirstSearch Site Detail Report Target Property: CALLE TAMPICO JOB: 11937-01 LA QUINTA CA 92253 , UST SEARCH ID: 55 DIST/DIR: 'NON GC MAP ID: NAME: KSL DESERT RESORTS,INC. LA QUINTA MOUNTAIN GOLF REV: 04/0W2001. ADDRESS: 77550 CALLE TAMPICO IDI: RIVERSIDECO83295 LA QUINTA CA 92253 ID2: RIVERSIDE STATUS: CONTACT: PHONE: DETAILS NOT AVAILABLE Selected Site Details Page - /6 Environmental FirstSearch Descriptions �l NPL: EPA NATIONAL PRIORITY LIST -The National Priorities List is a list of the worst hazardous waste sites that have been identified by Superfund. Sites are only put on the list after they have been scored using the Hazard Ranking System (HRS), and have been subjected to public comment. Any site on the NPL is eligible for cleanup using Superfund Trust money. T A Superfund site is any land in the United States that has been contaminated by hazardous waste and identified by the Environmental Protection Agency (EPA) asa candidate for cleanup because it poses a risk to human health and/or the environment. FINAL - Currently on the Final NPL PROPOSED - Proposed for NPL NPL DELISTED: EPA NATIONAL PRIORITY LIST Subset - Database of delisted NPL sites. The i National Oil and Hazardous Substances Pollution Contingency Plan (NCP) establishes the criteria that the EPA I uses to delete sites from the NPL..In accordance with 40 CFR 300.425,(e), sites may be deleted from the NPL where no further response is appropriate. DELISTED - Deleted from the Final NPL CERCLIS: EPA COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY INFORMATION SYSTEM (CERCLIS)- CERCLIS is a database of potential and confirmed hazardous waste sites at which the EPA Superfund program has some involvement. It contains sites that are } either proposed, to be or are on the National Priorities List (NPL) as well as sites that are in the screening and . assessment phase for possible inclusion on the NPL. PART OF NPL- Site is part of NPL site DELETED - Deleted from the Final NPL FINAL - Currently on the Final NPL NOT PROPOSED - Not on the NPL NOT VALID - Not Valid Site or Incident PROPOSED - Proposed for NPL REMOVED - Removed from Proposed NPL SCAN PLAN - Pre -proposal Site WITHDRAWN - Withdrawn NFRAP: EPA COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY INFORMATION SYSTEM ARCHIVED SITES - database of Archive designated CERCLA sites that, to the best of EPA's knowledge, assessment has been completed and has determined no further steps will be taken to list this site on the National Priorities List (NPL). This decision. does not necessarily mean that there is no hazard associated with a given site; it only means that, based upon available information, the location is not judged to be a potential NPL site. NFRAP — No Further Remedial Action Plan III P - Site is part of NPL site D - Deleted from the Final NPL F - Currently on the Final NPL N - Not on the NPL O - Not Valid Site or Incident P - Proposed for NPL R - Removed from Proposed NPL S - Pre -proposal Site W — Withdrawn RCRA COR ACT: EPA RESOURCE CONSERVATION AND RECOVERY INFORMATION SYSTEM d SITES - Database of hazardous waste information contained in the Resource Conservation and Recovery Act Information (RCRAInfo), a national program management and inventory system about hazardous waste handlers. In general, all generators, transporters, treaters, stomrs, and disposers of hazardous waste are required J to provide information about their activities to state environmental agencies. These agencies, in turn pass on the information to regional and national EPA offices. This regulation is governed by the Resource Conservation and Recovery Act (RCRA), as amended by the Hazardous and Solid Waste Amendments of 1984. RCRAInfo facilities that have reported violations and subject to corrective actions. i RCRA TSD: EPA RESOURCE CONSERVATION AND RECOVERY INFORMATION SYSTEM ?•, TREATMENT, STORAGE, and DISPOSAL FACILITIES. - Database of hazardous waste information contained in the Resource Conservation and Recovery Act Information (RCRAInfo), a national program management and inventory system about hazardous waste handlers. In general, all generators, transporters, treaters, storers, and disposers of hazardous waste are required to provide information about their activities to state environmental agencies. These agencies, in turn pass on the information to regional and national EPA offices. This regulation is governed by the Resource Conservation and Recovery Act (RCRA), as amended by the Hazardous and Solid Waste Amendments of 1984. Facilities that treat, store, dispose, or incinerate hazardous waste. RCRA GEN: EPA RESOURCE CONSERVATION AND RECOVERY INFORMATION SYSTEM GENERATORS - Database of hazardous waste information contained in the Resource Conservation and Recovery Act Information (RCRAInfo), a national program management and inventory system about hazardous waste handlers. In general, all generators, transporters, treaters, storers, and disposers of hazardous waste are required to provide information about their activities to state environmental agencies. These agencies, in turn pass on the information to regional and national EPA offices. This regulation is governed by the Resource Conservation and Recovery Act (RCRA), as amended by the Hazardous and Solid Waste Amendments of 1984. Facilities that generate or transport hazardous waste or meet other RCRA requirements. LGN - Large Quantity Generators SGN - Small Quantity Generators VGN — Conditionally Exempt Generator. Included are RAATS (RCRA Administrative Action Tracking System) and CMEL (Compliance Monitoring & Enforcement List) facilities. . RCRA NLR: EPA RESOURCE CONSERVATION AND RECOVERY INFORMATION SYSTEM SITES - Database of hazardous waste information contained in the Resource Conservation and Recovery Act Information (RCRAInfo), a national program management and inventory system about hazardous waste handlers. In general, all generators, transporters, treaters, storers, and disposers of hazardous waste are required to provide information about their activities to state environmental agencies. These agencies, in turn pass on the information to regional and national EPA offices. This regulation is governed by the Resource Conservation and Recovery Act (RCRA), as amended by the Hazardous and Solid Waste Amendments of 1984. Facilities not currently classified by the EPA but are still included in the RCRAInfo database. Reasons for non classification: Failure to report in a timely matter. No longer in business. No longer in business at the listed address. No longer generating hazardous waste materials in quantities which require reporting. Federal IC / EC: EPA BROWNFIELD MANAGEMENT SYSTEM (BMS) - database designed to assist EPA in collecting, tracking, and updating information, as well as reporting on the major activities and accomplishments of the various Brownfield grant Programs. FEDERAL ENGINEERING AND INSTITUTIONAL CONTROLS- Superfund sites that have either an engineering or an institutional control. The data includes the control and the media contaminated. ERNS: EPA/NRC EMERGENCY RESPONSE NOTIFICATION SYSTEM (ERNS) - Database of incidents reported to the National Response Center. These incidents include chemical spills, accidents involving chemicals (such as fires or explosions), oil spills, transportation accidents that involve oil or chemicals, releases of radioactive materials, sightings of oil sheens on bodies of water, terrorist incidents involving chemicals, incidents where illegally dumped chemicals have been found, and drills intended to prepare responders to handle these kinds of incidents. Data since January 2001 has been received from the National Response System database as the EPA no longer maintains this data Tribal Lands: DOIBJA INDIAN LANDS OF THE UNITED STATES - Database of areas with boundaries established by treaty, statute, and (or) executive or court order, recognized by the Federal Government as territory in which American Indian tribes have primary governmental authority. The Indian Lands of the United States map layer shows areas of 640 acres or more, administered by the Bureau of Indian Affairs. Included are Federally -administered lands within a reservation which may or may not be considered part of the reservation. State/tribal Sites: CA EPA SMBRPD / CAL SITES- The California Department of Toxic Substances Control (DTSC) has developed an electronic database system with information about sites that are known to be contaminated with hazardous substances as well as information on uncharacterized properties where further studies may reveal problems. The Site Mitigation and Brownfields Reuse Program Database (SMBRPD), also known as CalSites, is used primarily by DTSC's staff as an informational tool to evaluate and track activities at properties that may have been affected by the release of hazardous substances. f The SMBRPD displays information in six categories. The categories are: 1 1. CalSites Properties (CS) 2. School Property Evaluation Program Properties (SCH) y 3. Voluntary Cleanup Program Properties (VCP) i! 4. Unconfirmed Properties Needing Further Evaluation (RFE) Please Note: FimtSearch Reports list the above sites as DB Type (STATE). 5. Unconfirmed Properties Referred to Another Local or State Agency (REF) 6. Properties where a No Further Action Determination has been made (NFA) Please Note: FirstSearoh Reports list the above sites as DB Type (OTHER). Each Category contains information on properties based upon the type of work taking place at the site. For } example, the CalSites database is now one of the six categories within SMPBRD and contains only confirmed sites considered as posing the greatest threat to the public and/or the potential public school sites will be found within the School Property Evaluation Program, and those properties undergoing voluntary investigation and/or cleanup are in the Voluntary Cleanup Program. CORTESE LIST -Pursuant to Government Code Section 65%2.5, the Hazardous Waste and Substances Sites 1 List has been compiled by CaVEPA, Hazardous Materials Data Management Program. The CAL EPA Dept. of Toxic Substances Control compiles information from subsets of the following databases to make up the ; CORTESE list: 1. The Dept. of Toxic Substances Control; contaminated or potentially contaminated hazardous waste sites listed in the CAL Sites database. Formerly known as ASPIS are included (CALSITES formerly known as ASPIS). 2. The Califonia State Water Resources Control Board; listing of Leaking Underground Storage Tanks are 1 included (LTANK) 3. The Califomia Integrated Waste Management Board; Sanitary Landfills which have evidence of groundwater contamination or known migration of hazardous materials (formerly WB-LF, now AB 375.0). Note: Track Info Services collects each of the above data sets individually and lists them separately in the 1 following First Search categories in order to provide more current and comprehensive information: CALSITES: 1 SPL, LTANK: LUST, WB-LF: SWL State Spills 90: CA EPA SLIC REGIONS 1 - 9- The California Regional Water Quality Control Boards maintain report of sites that have records of spills, leaks, investigation, and cleanups. State/Tribal SWL: CA 1WMR/SWRCRK'0UNTY SWIS SOLID WASTE INFORMATION SYSTEM -The Califomia Integrated Waste Management Board maintains a database on solid waste facilities, operations, and disposal sites throughout the state of Califomia. The types of facilities found in this database include landfills, transfer stations, material recovery facilities, composting sites, transformation facilities, waste tire sites, and closed disposal sites. For more information on individual sites call the number listed in the source field.. Please Note: This database contains poor site location information for many sites in the First Search reports; therefore, it may not be possible to locate or plot some sites in First Search reports. WMUDS-The State Water Resources Control Board maintained the Waste Management Unit Database System (WMUDS). It is no longer updated. It tracked management units for several regulatory programs related to waste management and its potential impact on groundwater. Two of these programs (SWAT & TPCA) are no longer on -going regulatory programs as described below. Chapter 15 (SC15) is still an on -going regulatory program and information is updated periodically but not to the WMUDS database. The WMUDS System 1 contains information from the following agency databases: Facility, Waste Management Unit (WMU), Waste 1 Discharger System (WDS), SWAT, Chapter 15, TPCA, RCRA, Inspections, Violations, and Enforcement's. Note: This database contains poor site location information for many sites in the First Search reports; therefore, it may not be possible to locate or plot some sites in First Search reports. ORANGE COUNTY LANDFILLS LIST- A list maintained by the Orange County Health Department. m" State/Tribal LUST: CA SWRC& COUNTY LUSTIS- The State Water Resources Control Board maintains a database of sites with confirmed or unconfirmed leaking underground storage tanks. Information for this database is collected from the states regional boards quarterly and integrated with this database. SAN DIEGO COUNTY LEAKING TANKS- The San Diego County Department of Environmental Health maintains a database of sites with confirmed or unconfirmed leaking underground storage tanks within its HE17/58 database. For more information on a specific file call the HazMat Duty Specialist at phone number listed in the source information field. State/Tribal UST/AST: CA EPAACOUNTYXITY ABOVEGROUND STORAGE TANKS LISTING -The Above Ground Petroleum Storage Act became State Law effective January 1, 1990. In general, the law requires owners or operators of AST s with petroleum products to file a storage statement and pay a fee by July 1, 1990 and every two years thereafter, take specific action to prevent spills, and in certain instances implement a i groundwater monitoring program. This law does not apply to that portion of a tank facility associated with the production oil and regulated by the State Division of Oil and Gas of the Dept. of Conservation. SWEEPS / FIDS STATE REGISTERED UNDEGROUND STORAGE TANKS- Until 1994 the State Water Resources Control Board maintained a database of registered underground storage tanks statewide referred to as the SWEEPS System. The SWEEPS UST information was integrated with the CAL EPA's Facility Index System database (FIDS) which is a master index of information from numerous California agency environmental databases. That was last updated in 1994. Track Info Services included the UST information from the FIDS database in its First Search reports for historical purposes to help its clients identify where tanks may possibly have existed. For more information on specific sites from individual paper files archived at the State Water Resources Control Board call the number listed with the source information. 1NDIAN LANDS UNDERGROUND STORAGE TANKS LIST- A listing of underground storage tanks currently on Indian Lands under federal jurisdiction. California Indian Land USTS are administered by US EPA Region 9. CUPA DATABASES & SOURCES- Definition of a CUPA: A Certified Unified Program Agency (CUPA) is a local agency that has been certified by the CAL EPA to implement six state environmental programs within the local agency's jurisdiction. These can be a county, city, or JPA (Joint Powers Authority). This program was established under the amendments to the California Health and Safety Code made by SB 1082 in 1994. A Participating Agency (PA) is a local agency that has been designated by the local CUPA to administer one or more Unified Programs within their jurisdiction on behalf of the CUPA. A Designated Agency (DA) is an agency that has not been certified by the CUPA but is the responsible local agency that would implement the six unified programs until they are certified. Please Note: Track Info Services, LLC collects and maintains information regarding Underground Storage Tanks from majority of the CUPAS and Participating Agencies in the State of California. These agencies typically do not maintain nor release such information on a uniform or consistent schedule; therefor, currency of the data may vary. Please look at the details on a specific site with a UST record in the First Search Report to determine the actual currency date of the record as provided by the relevant agency. Numerous efforts are made on a regular basis to obtain updated records. State/I'ribal IC: CA EPA DEED -RESTRICTED SITES LISTING- The California EPA's Department of Toxic Substances Control Board maintains a list of deed -restricted sites, properties where the DTSC has placed limits or requirements on the future use of the property due to varying levels of cleanup possible, practical or necessary at the site. State/Tribal VCP: CA EPA SMBRPD / CAL SITES- The California Department of Toxic Substances Control (DTSC) has developed an electronic database system with information about sites that are known to be contaminated with hazardous substances as well as information on uncharacterized properties where further studies may reveal problems. The Site Mitigation and Brownfields Reuse Program Database (SMBRPD), also known as CalSites, is used primarily by DTSC's staff as an informational tool to evaluate and track activities at properties that may have been affected by the release of hazardous substances. The SMBRPD displays information in six categories. The categories are: 1. CalSites Properties (CS) 2. School Property Evaluation Program Properties (SCH) 3. Voluntary Cleanup Program Properties (VCP) 4. Unconfirmed Properties Needing Further Evaluation (RFE) 5. Unconfirmed Properties Referred to Another Local or State Agency (REF) 6. Properties where a No Further Action Determination has been made (NFA) Please Note: FirstSearch Reports list the above sites as DB Type VC. Each Category contains information on properties based upon the type of work taking place at the site. The VC category contains only those properties undergoing voluntary investigation and/or cleanup and which are listed in the Voluntary Cleanup Program. RADON: NTIS NATIONAL RADON DATABASE - EPA radon data from 1990-1991 national radon project collected for a variety of zip codes across the United States. State Permits: CA COUNTY SAN DIEGO COUNTY HE17 PERMITS- The HE17/58 database tracks establishments issued permits and the status of their permits in relation to compliance with federal, state, and local regulations that the County oversees. It tracks if a site is a hazardous waste generator, TSD, gas station, has underground tanks, violations, or unauthorized releases. For more information on a specific file call the HazMat Duty Specialist at the phone number listed in the source information field. SAN BERNARDINO COUNTY HAZARDOUS MATERIALS PERMITS- Handlers and Generators Permit Information Maintained by the Hazardous Materials Division. State Other: CA EPA/COUNTY SMBRPD / CAL SITES- The California Department of Toxic Substances 3i Control (DTSC) has developed an electronic database system with information about sites that are known to be contaminated with hazardous: substances as well as information on uncharacterized properties where further i studies may reveal problems. The Site Mitigation and Brownfields Reuse Program Database (SMBRPD), also known as CelSites, isused primarily by DTSC's staff as an informational tool to evaluate and track activities at properties that may have been affected by the release of hazardous substances. The SMBRPD displays information in six categories. The categories are: 1. CalSites Properties (CS) . 2. School Property Evaluation Program Properties (SCH) § 3. VoluntaryCleanup Program•Properties (VCP) 9 4. Unconfirmed Properties Needing Further Evaluation (RFE) Please Note: FirstSearch,Reports list the above sites as DB Type (STATE). 5. Unconfirmed Properties Referred to Another Local or State Agency (REF) 6. Properties where a No Further Action Determination has been made (NFA) d Please Note: FirstSearch Reports list the above sites as DB Type (OTHER). Each,Category contains information on properties based upon the type of work taking place at the site. For example, the CalSites database is now one of the six categories within. SMPBRD and contains only confirmed sites considered as posing the greatest threat to the public and/or the potential public school sites will be found within the School,Property Evaluation Program, and those properties undergoing voluntary investigation and/or cleanup are in the Voluntary Cleanup Program LA COUNTY SITE MITIGATION.COMPLAINT CONTROL LOG- The County of Los Angeles Public Health Investigation Compliant Control Log. ORANGE COUNTY INDUSTRIAL SITE CLEANUPS- List maintained by the Orange County Environmental Health Agency. i1 RIVERSIDE COUNTY WASTE GENERATORS -A list of facilities in Riverside County which generate hazardous waste. SACRAMENTO COUNTY MASTER HAZMAT LIST -Master list of facilities within County with 1 Sacramento potentially hazardous materials. j SACRAMENTO COUNTY TOXIC SITE CLEANUPS -A list of sites where unauthorized releases of potentially hazardous materials have occurred. ,, Environmental FirstSearch Database Sources NPL: EPA Environmental Protection Agency Updated quarterly NPL DELISTED: EPA Environmental Protection Agency Updated quarterly CERCLIS: EPA Environmental Protection Agency Updated quarterly NFRAP: EPA Environmental Protection Agency. Updated quarterly RCRA CDR ACT: EPA Environmental Protection Agency. Updated quarterly RCRA TSD: EPA Environmental Protection Agency. Updated quarterly RCRA GEN: EPA Environmental Protection Agency. Updated quarterly RCRA NLR: EPA Environmental Protection Agency Updated quarterly Federal IC / EC: EPA Environmental Protection Agency Updated quarterly ERNS: EPA/NRC Environmental Protection Agency Updated semi-annually Tribal Lands: DOfB/A United States Department of the Interior Updated annually State/Tribal Sites: CA EPA The CAL EPA, Depart. Of Toxic Substances Control i� Phone: (916) 323-3400 i Updated quarterly/when available State Spills 90: CA EPA The California State Water Resources Control Board Updated when available Statefrribal SWL: CA lWMB/SWRCB/VOUNTY The California Integrated Waste Management Board , Phone:(A6)255-2331 The State Water Resources Control Board Phone:(916)227-4365 Orange County Health Department r a Updated quarterly/when available State/rrlbal LUST: CA SWRCB/COUNTY The California State Water Resources Control Board Phone:(916) 227-4416 San Diego County Department of Environmental Health Updated quarterly/when available Stateffribal UST/AST: CA EPA/COUNTYXITY The State Water Resources Control Board Phone:(916)227-4364 CAL EPA Department of Toxic Substances Control Phone:(916)227-4404 US EPA Region 9 Underground Storage Tank Program Phone: (415) 972-3372 ALAMEDA COUNTY CUPAS: q " County of Alameda Department of Environmental Health Cities of Berkeley, Fremont, Hayward, Livermore / Pleasanton, Newark, Oakland, San Leandro, Union ALPINE COUNTY CUPA: * Health Department (Only updated by agency sporadically) (1 AMADOR COUNTY CUPA: j * County of Amador Environmental Health Department �3 BUTTE COUNTY CUPA • County of Butte Environmental Health Division (Only updated by agency biannually) CALAVERAS COUNTY CUPA: * County of Calaveras Environmental Health Department COLUSA COUNTY CUPA: * Environmental Health Dept. DLJI CONTRA COSTA COUNTY CUPA: * Hazardous Materials Program DEL NORTE COUNTY CUPA: • Department of Health and Social Services EL DORADO COUNTY CUPAS: * County of EI Dorado Environmental Health - Solid Waste Div (Only updated by agency annually) j • County of El Dorado EMD Tahoe Division (Only updated by agency,annually). J FRESNO COUNTY CUPA: * Haz Mat and Solid Waste Programs GLENN COUNTY CUPA: * Air Pollution Control District HUMBOLDT COUNTY CUPA: * Environmental Health Division IMPERIAL COUNTY CUPA: 3 * Department of Planning and Building' t INYO COUNTY CUPA: * Environmental Health Department J KERN COUNTY CUPA: ` County of Kern Environmental Health Department • City of Bakersfield Fire Department KINGS COUNTY CUPA: " Environmental Health Services LAKE COUNTY CUPA: " Division of Environmental Health LASSEN COUNTY CUPA: " Department of Agriculture LOS ANGELES COUNTY CUPAS: " County of Los Angeles Fire Department CUPA Data as maintained by the Los Angeles County Department of Public Works " County of Los Angeles Environmental Programs Division ` Cities of Burbank, El Segundo, Glendale, Long Beach/Signal Hill, Los Angeles,Pasadena, Santa Fe Springs, Santa Monica, Torrance, Vernon MADERA COUNTY CUPA: " Environmental Health Department MARIN COUNTY CUPA: County of Marin Office of Waste Management " City of San Rafael Fire Department MARIPOSA COUNTY CUPA: " Health Department MENDOCINO COUNTY CUPA: " Environmental Health Department MERCED COUNTY CUPA: " Division of Environmental Health MODOC COUNTY CUPA: " Department of Agriculture MONO COUNTY CUPA: " Health Department MONTEREY COUNTY CUPA: ` Environmental Health Division NAPA COUNTY CUPA: • Hazardous Materials Section NEVADA COUNTY CUPA: • Environmental Health Department ORANGE COUNTY CUPAS: ` County of Orange Environmental Health Department ` Cities of Anaheim, Fullerton, Orange, Santa Ana " County of Orange Environmental Health Department PLACER COUNTY CUPAS: • County of Placer Division of Environmental Health Field Office • Tahoe City " City of Roseville Roseville Fire Department PLUMAS COUNTY CUPA: " Environmental Health Department RIVERSIDE COUNTY CUPA: " Environmental Health Department SACRAMENTO COUNTY CUPA: " County Environmental Mgmt Dept,-Haz. Mat. Div. SAN BENITO COUNTY CUPA: " City of Hollister Environmental Service Department SAN BERNARDINO COUNTY CUPAS: " County of San Bernardino Fire Department, Haz. Mat. Div. • City of Hesperia Hesperia Fire Prevention Department 'City of Victorville Victorville Fire Department SAN DIEGO COUNTY CUPA: " The San Diego County Dept. of Environmental Health HE 17/58 SAN FRANCISCO COUNTY CUPA: ` Department of Public Health SAN JOAQUIN COUNTY CUPA: " Environmental Health Division SAN LUIS OBISPO COUNTY CUPAS: • County of San Luis Obispo Environmental Health Division • City of San Luis Obispo City Fire Department SAN MATEO COUNTY CUPA: • Environmental Health Department SANTA BARBARA COUNTY CUPA: • County Fire Dept Protective Services Division SANTA CLARA COUNTY CUPAS: • County of Santa Clara Hazardous Materials Compliance Division • Santa Clara County Central Fire Protection District (Covers Campbell, Cupertino, Los Gatos, & Morgan Hill) • Cities of Gilroy, Milpitas, Mountain View, Palo Alto, San Jose Fire, Santa Clara, Sunnyvale SANTA CRUZ COUNTY CUPA: • Environmental Health Department SHASTA COUNTY CUPA: • Environmental Health Department SIERRA COUNTY CUPA: • Health Department SISKIYOU COUNTY CUPA: • Environmental Health Department SONOMA COUNTY CUPAS: • County of Sonoma Department Of Environmental Health • Cities of Healdsburg / Sebastopol, Petaluma, Santa Rosa STANISLAUS COUNTY CUPA: • Department of Environmental Resources Haz. Mat. Division SUTTER COUNTY CUPA: • Department of Agriculture TEHAMA COUNTY CUPA: • Department of Environmental Health, TRINITY COUNTY CUPA: • Department of Health TULARE COUNTY CUPA: • Environmental Health Department TUOLUMNE COUNTY CUPA: • Environmental Health VENTURA COUNTY CUPAS: • County of Ventura Environmental Health Division • Cities of Oxnard, Ventura YOLO COUNTY CUPA: • Environmental Health Department YUBA COUNTY CUPA: Updated quarterly/annually/when available StatelTribal IC: CA EPA The California EPA Department of Toxic Substances Control. Updated Updated quarterlylanrually4hen available State/Tribal VCP: CA EPA The California EPA Department of Toxic Substances Control. Updated Updated quarterly/annuallyAMen available RADON: NT/S Environmental Protection Agency, National Technical Information Services Updated periodically State Permits: CA COUNTY The San Diego County Depart. Of Environmental Health Phone:(619)338-2211 San Bernardino County Fire Department Updated quarterly/when available - State Other: CA EPAXOUNTY The CAL EPA, Depart. Of Toxic Substances Control Phone: (916) 323-3400 The Los Angeles County Hazardous Materials Division Phone: (323) 890-7806 Orange County Environmental Health Agency Phone: (714) 834-3536 Riverside County Department of Environmental Health, Hazardous Materials Management Division Phone:(951)358-5055 Sacramento County Environmental Management Department Updated quarterly/when available Environmental FirstSearch Street Name Report for Streets within .25 Mile(s) of Target property Target Property: CALLE TAMPICO JOB: 11937-01 LA QUINTA CA 92233 Street Name Dist/Dir Street Name Dist/Dir Avenida Bermudas 0.19 NW Avenida la Fonda 0.05 SE Avenida Montezuma 0.21 SW Avenida Navarro 0.24 SW Avenida Villa 0.24 SW Blue Sky Way 0.12 NE Buena Ventura 0.02 SW Calle Barcelona 0.24 SW Calle Cadiz 0.15 SE Calle Estado 0.12 SW Calle Fortuna 0.11 SW Calle Guatemala 0.12 SE Calle Hueneme 0.17 SE Calle Iloilo 0.21 SE Calle Las Ramblas 0.23 NW Calle Tampico 0.05 N- Cloud View Way 0.24 NE Desert Club Dr 0.06 NW Desert Fall Way 0.24 NE Paradise Dr 0.18 NE Paradise East Or 0.15 NE Paradise West Dr 0.10 NE Rainbow Ct 0.14 NE Seasons Way 0.08 NE Springtime Way, 0.16 NE Sumner View Way 0.20 NE Winter Cove Ct 0.22 NE Environmental FirstSearch 1 We Radius Single Map: CALLE TAMPICO , LA QUINTA CA 92253 0 U.S. Census 77GER Files Target Site(Latimle: 33.677366 Longitude: .116.30043 1) ............................. Identified Site. Multiple Sites. Recelaw.......................................................... NPL, DELNPL, Brownfield, Solid Waste Landfill (SWL). Hasudous Waste Triballand. ........................................................................................................... Railroads........................................................................................................... Black Rings Represent 1/4 Mile Radius; Red Ring Represents 500 it Radius Rio Environmental FirstSearch 1 Mile Radius ASTM-05: NPL, RCRACOR, STATE CALLE TAMPICO LA QUINTA CA 92263 a� �i1o11♦ _ I��IIIIItirt�lm�r-� li_ l,® �11�111111111111�1�� ® r :�11►11111111111 \11111111111,!111,. �1lI�I,�I�i • ��!�l111111111111 Somioe: U.S Census HGER Files Target Siro.(La6tode:33.677366 1,ongiNde:-116300/31)...................._....... ja. Identified Sift, Multiple Si,, Raxplor.......................................................... NP1., DELNPL, Brownfield, Solid Waste Landfill (S WL), Ha doos Waste ltibdleod............................................................................................................ Railroads.............................................................. _............................. Black Rings Represent 114 Mile Radios; Red Ring Represents 500 fi. Radius Environmental FirstSearch .5 Mile Radius ASTM-05: Multiple Databases. CALLE TAMPICO , LA QUINTA CA 92253 �6, M-1 11®■��.�! Swace: U.S. Censor TIGER Files Target Site (Latitude: 33.677366 Longitude:-116.300431)................. Identified Sits. Multiple Site& Reeeptor.......................................................... NPL, DELNPL, Brownfield, Solid Wane Landfill (SWL), Hazardous Waste Tribelland............................. ......._............ .................................................. ...... Railroads........................................................................................................... Black Rings Represent 1/4 Mile Radius; Red Ring Represents 500 fi. Radius Swace: U.S. Censor TIGER Files Target Site (Latitude: 33.677366 Longitude:-116.300431)................. Identified Sits. Multiple Site& Reeeptor.......................................................... NPL, DELNPL, Brownfield, Solid Wane Landfill (SWL), Hazardous Waste Tribelland............................. ......._............ .................................................. ...... Railroads........................................................................................................... Black Rings Represent 1/4 Mile Radius; Red Ring Represents 500 fi. Radius Environmental FirstSearch .25 Mile Radius ASTM-05: RCRAGEN, ,UST, PERMITS, OTHER CALLE TAMPICO , LA QUINTA CA 92253 Ct yen Ventura ` 4" venlda to n" m• � _ cane Cadiz �. an m m m' S 4 30saw: U.S. Cenaua 77GER Files - TargetSite (Ladtude:33A?7366 1,0051tude:•116.300431)............................. { Ideorified NP Mul ipla Sites. Reeeqor........................ ............... .:.......... .: ®T NPL, DHLPL, Brownfield. Solid Waste Landfill (SWL), Hazardous We»e Triballand............................................................................................................ Railroads......................................................................................................... _. Black Rings Represent 1N Mile Radius; Red Ring Represents 500 tt. Radius Environmental FirstSearch .12 Mile Radius ASTM-05: SPILLS90, ERNS, RCRANLR CALLE TAMPICO , LA QUINTA CA 92253 ''Source: US Census TIGER Files Target Site (4tiNde: 33.677366 Lon 'tulle: •116.300431 Identified Site, Multiple Sites, Receptw.......................................................... NPL, DELNPL, Bruumfield, Solid Waste Landfill (S WL), Haaudous Waste Tribelland............................................................................................................ Black Rings Represent 1/4 Mile Radius: Red Ring Represents 500 fi. Radius APPENDIX D ADDITIONAL DOCUMENTATION EARTH SYSTEMS SOUTHWEST A o a f •q .! e .. Y ♦._ � --_.. a. cry ' o I n} , l r P�j 0 co 3Amo'w=v'4 emo ta3s3o ` 2 C. Q F J Wvu �j w � yr iyn• 3 tr`i. ice) - � f —��•_- Na ! �Y DEFENSE ENVIRONMENTAL RESTORATION PROGRAM FORMERLY USED DEFENSE SITES FINDINGS AND DETERMINATION OF ELIGIBILITY LA,QUINTA LA QUINTA, CALIFORNIA SITE NO. J09CA738800 FINDINGS OF FACT 1. DOD is not known to have acquired nor to have had any controlling interest in the La Quinta Airport site. This Site is depicted on three maps and various airport directories, from which it is estimated to cover approximately 55.2 acres. 2. No information was found to indicate that the DOD used or constructed any facilities at the La Quinta Airport. A drawing entitled "General Map Restricted", dated December 1942, designates the La Quinta site as a Civil Aeronautics Administration (CAA) Auxiliary Airfield. The La Quinta Airport was constructed east of the La Quinta Resort and Club (established in 1926), as a private airfield in service to club members, circa 1930. The airfield site was composed of four sod runways and had a square configuration. 3. Service at the site was discontinued -by the mid-1950s and the site was developed into the Dunes Course Golf Club in 1984. No DOD disposal actions were necessary. The site remains under the ownership of the La Quinta Resort and Club as the Dunes Course Golf Club. DETERMINATION Based on the foregoing Findings of Facts, it has been determined that this site has not been formerly used by the Department of Defense. It is therefore ineligible for the Defense Environmental Restoration Program - Formerly Used Defense Sites, established under 10 USC 2701 et seq. -.z Sew DATE PST T. MAC EN FLo nel U.S. .S. Army Commanding .. Water::.. well 26 3I .. wrely --`-- ' r. r . nreb,wxr UMCYNreq Ire QVft C.a, MR ROWWA .e INIL reel. AW Season I rend red, ATE Seeeml 4 N scale 0 1 mug fflenceAppUcations Intenieftnel Cofpamt/on An Empbyee-Cwned Company SITE LOCATION LA OUINTA J09CA738800 La Ouinta, CA 1 01-0255-".1838 1 EB I KC it 1 EARTH SYSTEMS SOUTHWEST EARTH SYSTEMS SOUTHWEST QUALIFICATIONS STATEMENT FOR ENVIRONMENTAL WORK The principals of the Earth Systems companies have been consulting for an average of over 20 years, and the combined staff numbers nearly 100. Earth Systems' multidisciplinary professional staff has extensive experience with and education in chemistry, geology, geophysics, hydrogeology, mechanical engineering, civil engineering, mapping, soil science, drafting, and surveying. Our senior project and staff professionals include Certified Engineering Geologists, Registered Geologists, Registered Environmental Assessors and Professional Engineers. These professionals are highly qualified, holding an average of two registrations and/or certifications in their area of expertise. To continue to meet our commitment to technical expertise, Earth Systems considers it essential to train our personnel in the latest scientific advancements in assessment and mitigation techniques. This involves continuing education in the form of training seminars, literature reviews, and pertinent conferences to remain abreast of recent developments in this complex and rapidly changing field. The Environmental Professional [EP] who provided oversight for this project meets the qualifications specified by US EPA AAI and ASTM 1527-05. An EP is defined by US EPA AAI as "a person who possesses sufficient specific education, training, and experience necessary to exercise professional judgment to develop opinions and conclusions regarding conditions indicative of releases or threatened releases (of hazardous substances) on, at, in, or to a property, sufficient to meet the objectives and performance factors (of the rule)." In addition, an environmental professional must have: • A state, tribal, or territory -issued certification or license (Professional Engineer or Professional Geologist) and three years of relevant full-time work experience; or • A Baccalaureate degree or higher in science or engineering and five years of relevant full-time work experience; or • Ten years of relevant full-time work experience. The attached resumes describe the credentials of the professionals who performed field, research and/or report preparation work on the project. EARTH SYSTEMS SOUTHWEST Earth Systems Southwest Scot A. Stormo, RG, CHG, REA II Senior Vice President, Associate GeologisdHydrogeologist Years of Experience: 25+ QUALIFICATIONS BS, Geology, California Lutheran College, Thousand Oaks, California, 1981 MS, Geology, State University of New York at Stony Brook, 1984 Registered Geologist, State of California, 1990 (No. 4826) Certified Hydrogeologist, State of California, 1995 (No. 204) California Registered Environmental Assessor (REA 11), 2001 (No. 20166) California Registered Environmental Assessor (REA 1), 1990 to 1995 (No. 2356) University of California, Riverside University Extension, March 2008 Short Course: Application of Risk Assessment for Environmental Decision Making at Containment Release Sites National Ground Water Association, October 2005 Short Course: Construction Dewatering and Ground Water Control — Design and Application EMS-1 Training Course, Groundwater Flow and Transport Modeling with GMS, September 2002 Association for Environmental Health and Sciences, March 2002 Short Course: Introduction to Environmental Forensics: Techniques and Applications National Ground Water Association, 2000 Short Course: Geophysics for Environmental and Groundwater Applications Princeton Groundwater, 1994 Short Course: Groundwater Pollution and Hydrology OSHA 40-Hour HAZWOPER Course, Hazardous Materials and Site Investigations (OSHA 29 CFR 1910.120[e]), 1987, 8-hour refresher courses taken annually PROFESSIONAL EXPERIENCE 1997 to present Vice President Earth Systems Southwest, Bermuda Dunes 1991 to 1997 Senior Geologist Dames & Moore, Spokane, Washington and Ontario, California 1989 to 1991 Senior Project Geologist Exceltech, Inc., Irvine, California 1986 to 1989 Staff Geologist Leighton & Associates, Riverside, California 1985 to 1986 Consulting Geologist Epoch Well Logging,. Ventura, California Mr. Stormo is manager of our groundwater and environmental services department. In this capacity, he directs all aspects of our environmental and groundwater services. He has experience with surface water infiltration, groundwater dewatering, groundwater modeling, and groundwater plume evaluations from both water supply and groundwater protection perspectives. He has also performing numerous investigations regarding the presence, source, and extent of contaminants in soil and groundwater associated with landfills, leaking underground storage tanks, and properties of industrial, commercial, educational, residential, and agricultural usage. BD-R-003 04/03 4- Earth Systems Southwest Scot A. Stormo, RG, CHG, REA II Vice President, Associate Geologist/Hydrogeologist HIGHLIGHTS OF RESPONSIBILITIES AND EXPERIENCE • Conducts groundwater and surface water supply evaluations involving assessment of both quantity and quality. • Develops watershed management, monitoring and protection strategies. • Performs water quality monitoring of both surface water and groundwater resources. • Conducts preliminary site assessments (Phase I) entailing site reconnaissance, historical research, regulatory agency records and database searches, aerial photograph review, and final report preparation. • . Performs site characterizations (Phase II) entailing subsurface exploration, sampling of soil and groundwater, chemical analyses of samples, evaluation of laboratory data, preparation of final report including recommendations for remediation. • Conducts Preliminary Endangerment Assessments (PEAS), including planning and performing the field investigation, evaluating the laboratory data, and preparing the PEA report for DTSC review and approval. • Designs and implements remediation programs such as groundwater monitoring and sampling; delineation of contaminant plumes; monitoring well installation and developments; in situ and above ground bioremediation systems; vapor extraction and soil venting systems; thermal/catalytic oxidation; and groundwater extraction, air stripping, activated carbon filtration, bioreactors. • Conducts investigations of surficial contaminants such as lead, cadmium, chromium, zinc, copper and pesticides. • Directs landfill investigations which include cover analysis and risk assessment. • Performs risk evaluations and feasibility studies involving calculating mobility and potential impact of subsurface contaminants. • Evaluates release scenarios using computer modeling and fate and transport simulations. • Assesses and evaluates potential geologic hazards such as faults, liquefaction, and landslides. • Provides expert witness and consultation services. SELECT PROJECT EXPERIENCE Water Resource Projects Remote Mountain Community. Mr. Stormo evaluated the long-term use and availability of groundwater for a remote mountain community. Included a review of historic water levels and recharge rates, and identification of preferred drilling locations based on the geology of the site. Proposed Residential Subdivision. Mr. Stormo provided hydrogeologic expertise on a water availability study for a proposed residential subdivision that will rely on groundwater. BD-R-003 04103 -2- Earth Systems Southwest Scot A. Stormo, RG, CHG, REA II Vice President, Associate Geologist/Hydrogeologist SELECT PROJECT EXPERIENCE (continued) Proposed Residential Subdivision. Mr. Stormo provided hydrogeologic expertise regarding dewatering for the installation of an engineered recreational lake in an area with shallow groundwater. Mr. Stormo's duties included reviewing the prior geologic investigation reports; performing on -site drilling and water extraction testing; developing a dewatering strategy with the owner, design engineers and contractors; installing monitoring wells around the lake; monitoring the construction of the lake over a period of more than six months; and investigating future development areas for the potential presence of similar constraints. Spring Protection Study. Mr. Stormo performed an in-depth investigation of the source and flow mechanism for a spring at a world -renown spa resort. The investigation included an evaluation of the source of the water, the mechanism of water flow, susceptibility of the spring to outside contamination, and the distribution of the spring "plumbing" in the shallow subsurface. This work was performed to allow adequate protection of the spring during major renovations. Infiltration Evaluations. Mr. Stormo provided hydrogeologic expertise regarding the installation of new drywells at a development where the initial drywells were inadequately designed and poorly installed. Mr. Stormo used grain -size evaluations of the soil to estimate water infiltration rates at different depths, and developed predictions of infiltration rates for a range of drywell designs at each of the locations evaluated. The predicted values were within 501/o of the actual values obtained after construction of the new drywells, and were much closer than the values obtained by field infiltration testing in borings. Depth to Water at a Gravel Pit Mr. Stormo used geophysical techniques to evaluate the depth to water at a proposed gravel pit, where the coarse -grained nature of the soil made drilling impractical. Survey "lines" at several locations were used to contour the top of the groundwater table, and identify the depth to which the proposed gravel pit could be excavated without dewatering and adversely affecting nearby ecologically -important springs. Well Installation Oversight. Mr. Stormo has overseen the installation of numerous groundwater monitoring and supply wells for numerous clients. The scope of work has typically including developing specifications for bidding, assisting in the selection of the drilling contractor, daily oversight of drilling activities, geologic logging of the material encountered (including laboratory testing for grain -size distribution), post -installation testing of the completed wells, and preparation of reports to document activities. Water FDA Spring Certifications. Mr. Stormo has provided hydrogeologic expertise for spring certification reports on several properties throughout California in preparation for developing these sites as spring water sources. Proposed "Spring" Site. Mr. Stormo performed an in-depth evaluation of a reported spring site to identify the nature of the "spring." The physical setting, geochemistry, and soil stratigraphy were evaluated, including the use of geophysical techniques to probe the subsurface. The study concluded that the "spring" was not a natural feature. BD-R-003 04/03 -3- Earth Systems Southwest Scot A. Stormo, RG, CHG, REA II Vice President, Associate GeologisilHydrogeologist SELECT PROJECT EXPERIENCE (continued) Watershed Evaluation and Management Projects for Indian Tribe. Mr. Stormo has been the senior consultant and project manager for the development and implementation of two watershed evaluation and management programs. These activities have included: 1) identifying and quantifying wastewater sources in the watershed; 2) gaging stream flows and water quality in the major drainage of the watershed; 3) design of surface water sampling programs and development of Quality Assurance Project Plans; 4) design and installation of monitoring wells .to evaluate water quality in the three water -bearing aquifers; and 5) data evaluation and report preparation. SaU Water Intrusion Study. Mr. Stormo managed the installation of five wells to evaluate the potential for salt water intrusion into the upper aquifer adjacent to the Salton Sea. Salt Water Infiltration Study. Mr. Stormo evaluated infiltration issues at a set of water disposal ponds for a community sewage treatment facility in the vicinity of the Salton Sea. The source of the high salt content in the ponds was document as being due to the infiltration of highly saline water from the Salton Sea into the wastewater collection pipelines. The affect of the saline water on the groundwater near the ponds was evaluated using wells. Water Source Evaluation. Mr. Stormo measured the flow rates in the lower reaches of the Whitewater River (south of Indio) to evaluate the relative contribution of different sources of water to this water body. Water Source Studies. Mr. Stormo evaluated the chemistry of waters at several sites to identify the source(s) of surface and groundwaters. The evaluations included comparisons of major and trace element geochemistries in on -site and potential off -site water sources. These projects were conducted in support of legal proceedings. Hazardous Materials Projects Industrial Park Environmental Assessment Mr. Stormo was project manager for this assessment which involved research of current and past uses and practices, collection and analysis of soil and groundwater samples, and removal of underground storage tanks. Additionally, the project involved asbestos assessment and abatement, development of an asbestos management plan, and assessment of metallic dust residues. Proposed School Site PEAS. Mr. Stormo was project manager and lead consultant for several proposed school sites required to go through the PEA process. At each site, he identified the issues warranting further evaluation, selected the investigative methods, negotiated the scope of work with the Department of Toxic Substance Control (DTSC), prepared a work plan, oversaw field sampling activities, reviewed the laboratory data, prepared a PEA report meeting the requirements of the DTSC. Former Above -Ground Storage Tank and Pipeline Facility. Mr. Stormo managed the environmental investigation of this facility. He evaluated whether the facility contributed contaminants to a regionally extensive groundwater plume emanating from a nearby refinery. This involved differentiating between gasoline and diesel fuel in soil samples, estimating the extent of weathering of the hydrocarbons, and evaluating whether BTEX compounds were migrating upward through the soil as vapors. BD-R-003 04103 4- Earth Systems Southwest Scot A. Stormo, RG, CHG, REA II Vice President, Associate Geologist/Hydrogeologist SELECT PROJECT EXPERIENCE (continued) Law Suit Involving Pre -Existing Contamination. Mr. Stormo was project manager, principal geologist and expert witness in a law suit involving pre-existing contamination on a former service station property with numerous prior owners, operators and adjacent spills. He evaluated prior remedial activities for appropriateness; evaluated likelihood of upgradient sources; used computer modeling, and fate and transport simulations to evaluate the likelihood of various release scenarios; and, developed cost estimates for clean-up. Groundwater Contamination at Two Landfills. Mr. Stormo was field manager and chief author of an investigation of the extent of groundwater contamination at two landfills. The project included well installation, aquifer testing, groundwater modeling, risk assessment, and remedial alternatives evaluation. Phase I and H Investigations and Leaking UST's. Mr. Stormo was involved in numerous investigations related to leaking underground storage tanks and hundreds of environmental site assessments (Phase 1 Investigations) of industrial, commercial, residential, agricultural, and vacant properties, with follow-up (Phase II Investigations) of the sites identified as potentially contaminated. Bunker C. Fuel Oil Spill. Mr. Stormo authored the Vacuum Extraction Pilot Test and the Soil Column Bioventing and Surfactant Flushing Treatability Study pertaining to this site. He performed data analyses and provided geochemical consulting services. Groundwater Contamination Plume Geochemical Evaluation. Mr. Stormo evaluated the chemistry of a groundwater contamination plume involving solvents. He used an analysis of the relative concentrations of the two primary contaminants to identify three separate plumes with distinctive chemical signatures. He then delineated plume boundaries, mixing zones, and probable source areas. Metal Working Facility Airborne Contaminant Investigation. Airborne metallic dusts such as lead, cadmium, and chromium were the primary concern at this site. As project manager and principal investigator, Mr. Stormo performed ambient air sampling and surficial dust sampling and analysis, and used the isotopic concentrations of the lead and the ratios of the various metals in the different media, to identify the source of the airborne materials. PROFESSIONAL AFFILIATIONS National Ground Water Association Association of Ground Water Scientists and Engineers Association for Environmental Health and Sciences BD-R-003 04/03 -5- Earth Systems Southwest Kirsten L. Murch Project Geologist QUALIFICATIONS B.A. Geology, Archaeology Minor, Smith College 1997 OSHA 40-Hour HAZWOPER Course PROFESSIONAL EXPERIENCE 2000 to present Earth Systems Southwest, Bermuda Dunes, California Current Position: Project Geologist Employed with Earth Systems' Bermuda Dunes office since 2000, Ms. Murch is the project coordinator for the Phase I Environmental Site Assessment projects in our environmental services department. In this capacity, she coordinates all aspects regarding these projects, including fieldwork and report preparation. Ms. Murch also coordinates and conducts site characterizations (Phase II), including fieldwork, data evaluation, and report preparation. HIGHLIGHTS OF RESPONSIBILITIES AND EXPERIENCE Project manager for, and conducts environmental site assessments (Phase I) according to EPA All Appropriate Inquiry guidelines and entailing site reconnaissance, historical research, regulatory agency records and database searches, aerial photograph review, and final report preparation. • Performs site characterizations (Phase 11) entailing supervision of subcontractors, subsurface exploration, sampling of soil and groundwater, chemical analyses of samples, evaluation of laboratory data, preparation of final report including recommendations for remediation. SELECT PROJECT EXPERIENCE Environmental Consulting Projects Stream Gauging Study. Ms. Murch participated in a multi -location stream -gauging program being conducted to evaluate water quality of a primary drainage channel as part of a watershed management project. Tasks included the initial design of the stream gauging protocol, selection of equipment, and writing a Standard Operating Procedure manual for stream gauging for review and approval by the US EPA, and conducting the stream gauging activities. Ms. Murch was involved with establishing gauging transects, testing and refining the equipment operations protocols, conducting the stream gauging, data evaluation, quality control oversight, and report preparation. BD-R-003 04/03 4- Earth Systems Southwest Kirsten L. Murch SELECTED MAJOR PROJECT EXPERIENCE continued State of California Petroleum Underground Storage Tank (UST) Cleanup Fund. Ms. Murch has assisted clients in interacting with the California UST Fund for reimbursement of costs incurred during investigation and cleanup of leaking petroleum underground storage tanks. Proposed School Site Preliminary Endangerment Assessments (PEAS) and Supplemental Site Investigations (SSTs). Ms. Murch has conducted and/or assisted in conducting several PEAs and/or SSIs for the Corona -Norco Unified School District (CNUSD), the Desert Sands Unified School District (DSUSD), and the Palo Verde Unified School District (PVUSD) in California in liaison with the Department of Toxic Substances Control (DTSC). Environmental Site Assessments. Ms. Murch has conducted over three hundred ESAs in the Coachella Valley of California, southeastern California, and high desert areas of southern California. PROFESSIONAL AFFILIATIONS Sigma Xi Associate Member BD-R-003 04/03 -2- APPENDIX F RELIANCE FORM EARTH SYSTEMS SOUTHWEST 8 APPLICATION FOR AUTHORIZATION TO RELY ON ENVIRONMENTAL REPORT This form serves as an application for third parties to apply for permission to use and rely on the referenced report [Report]. It is the applicant's responsibility to obtain the approval of the original client prior to submitting the form. 'As a condition of approval for authorization to use and rely on the referenced Report, applicant agrees to waive any conflict of interest arising out of and applicant will not object to our representation of our original client: that Earth Systems Southwest's liability for errors and omissions from the Report shall be limited to $15,000; and Earth Systems Southwest shall have no liability for any other cause or action. Use of this Report without written permission releases Earth Systems Southwest from any liability that may arise from the use of this Report. Reference: Report of Environmental Site Assessment, Nine Village Properties, APNs 770-123-002, -003, -004, -006, and -010, and 770-124-002, -003, -007, and -009, Calle Tampico, La Quinta, Riverside County, California, File No. 11937-01, Doc. No. 11-03-768, dated March 31, 2011. Original Client: La Quinta Redevelopment Agency, 78-495 Calle Tampico, La Quinta, CA 92253, Ms. Deborah Powell or Mr. Jon McMillen, 760-212-2322. To be completed by Applicant. A processing fee of $200 made payable to Earth Systems Southwest must accompany application. Submit to Earth Systems Southwest, 79811 Country Club Drive, Indio, California 92203. Signature signifies applicant's acceptance of the use and liability limitations described above, and caveats described below*. (Company Name) (Address) (City, State, Zip) (Telephone) By: (Print Name) (FAX) Approval of Original Client (Print Name) (Signature) (Signature) For Earth Systems Southwest's use only Approved for re -use with caveat that findings discussed in Report were based on available information and site conditions as noted at time of Report, but may not be applicable to current site conditions. Disapproved (application fee to be refunded). LE *Caveats - Applicant understands and agrees that the referenced Report is a copyrighted document, that Earth Systems Southwest is the copyright owner, and that unauthorized use or copying of the Report is strictly prohibited without the express written permission of Earth Systems Southwest. Applicant understands that Earth Systems Southwest may withhold such permission at its sole discretion, or grant permission upon such terms and conditions as it deems acceptable. Applicant acknowledges that: (1) Earth Systems Southwest did not have an opportunity to evaluate the applicant's relationship to the site; (2) Applicant -specific information can affect the conclusions and recommendations presented in the Report; (3) The Report speaks only to conditions observed on -site at the time of the site visit, and site conditions may have changed since that time; (4) The scope of the Report was limited to the scope defined by our proposal; (4) The shelf life of the Report, as defined by the EPA All Appropriate Inquiry [AAI] guidelines, is six months (the Report expires after six months and should not be relied upon without an update in accordance with the AAI guidelines); and, (5) Earth Systems Southwest maintains its contract with the original client for the Report. EARTH SYSTEMS SOUTHWEST PP " Fidelity Natal Title Insurance Comny ooa. 1 oo � Policy Number: 27-2741 6-10- 1564 EXPANDED COVERAGE RESIDENTIAL LOAN POLICY FOR A ONE -TO -FOUR FAMILY RESIDENCE Issued by Fidelity National Title Insurance Company Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at the address shown in Section 17 of the Conditions. SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHED- ULE B, AND THE CONDITIONS, Fidelity National Title Insurance Company, a California corporation (the "Company") insures as of Date of Policy and, to the extent stated in Covered Risks 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 and 28, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: COVERED RISKS 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (it) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or deliv- ered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii)a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be dis- closed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improve- ments located on adjoining land. 3. Unmarketable Title. 4. No right of access to and from the Land. 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowl- edge. 9 The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. This Covered Risk includes but is not 27-27416-10 1 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Association. All rights resewed. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. - limited to insurance against loss from any of the following impairing the lien of the Insured Mortgage - (a) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (b) failure of any person or Entity to have authorized a transfer or conveyance; (c) the Insured Mortgage not being properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (d) failure to perform those acts necessary to create a document by electronic means authorized by law; (e) a document executed under a falsified, expired, or otherwise invalid power of attorney; (f) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (g) a defective judicial or administrative proceeding. 10. The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance. 11. The lack of priority of the lien of the Insured Mortgage upon the Title (a) as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for services, labor, or material arising from construction of an improvement or work related to the Land when the improvement or work is either (i) contracted for or commenced on or before Date of Policy; or (ii) contracted for, commenced, or continued after Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on Date of Policy to advance; (b) over the lien of any assessments for street improvements under construction or completed at Date of Policy; (c) over any defect in or lien or encumbrance on the Title attaching or created before, on or after Date of Policy; as to each and every advance of proceeds of the loan secured by the Insured Mortgage, which at Date of Policy the Insured has made or is legally obligated to make; and (d) over any environmental protection lien that comes into existence before, on or after Date of Policy pursuant to any federal statute in effect at Date of Policy as to each and every advance of proceeds of the loan secured by the Insured Mortgage, which at Date of Policy the Insured has made or is legally obligated to make. 12. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens. 13. The failure of the Land (a) to have the street address shown in Schedule A, and the failure of the map, if any, attached to this policy to show the correct location and dimensions of the Land according to the Public Records. (b) to be improved with a one -to -four family residential structure or, if stated in the description of the Land, a residential condominium unit. (c) to be zoned to permit a one -to -four family residential structure or, if stated in the description of the Land, a residential condominium unit. (d) to be a lawfully created one -to -four family residential parcel according to state statutes and local ordinances governing subdivision of land. 14. The forced removal, modification or replacement of any existing one -to -four family residential structure or residential condominium unit located on the Land resulting from the violation of any of the following requirements of any applicable zoning ordinance: Area or dimensions of the Land as a building site; floor space area of the structure; height of the structure; or distance of the structure from the boundary lines of the Land. 15. The assessment or taxation of the Land by governmental authority as part of a larger parcel. 16. The failure of the existing one -to -four family residential structure or residential condominium unit or a portion or a future modification or replacement to have been constructed with a valid building permit from the appropriate local government issuing office or agency. 17. The inability to use the existing one -to -four family residential structure or residential condominium unit or a portion of it or a future modification or replacement to it for one -to -four family residential purposes because that use violates a restriction shown in Schedule B. 18. Damage to improvements, lawns, shrubbery or trees constructed or planted on the Land before, on or after Date of Policy resulting from the future exercise of any right to use the surface of the Land for the extraction or development of minerals, water or any other substance. 19. The encroachment onto the Land of an improvement constructed after Date of Policy. 27-27416-10 2 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Associall�ll rights reserved. The use of this Form is restrictedTA licensees and ALTA members in good standing as of the date of use. All oth s are prohibited. Reprinted under license from the AnWn Land Title Association. ?, 20. Encroachment of improvements constructed on the Land after Date of Policy onto adjoining property or over any easement or building setback line on the Land. 21. Forgery after Date of Policy of (a) any instrument purporting to subordinate, assign, release or reconvey the Insured Mortgage; and (b) any instrument purporting to convey or encumber the Title. 22. The invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances made or changes in the rate of interest charged subsequent to any modification of the terms of the Insured Mortgage made after Date of Policy which are secured by the terms of the Insured Mortgage as modified. 23. Damage to improvements, lawns, shrubbery or trees constructed or planted on the Land before, on or after Date of Policy occasioned by the exercise of the right to use or maintain any easement referred to in Schedule B. 24. Interference with the use for one -to -four family residential purposes of the improvements constructed on the Land before, on or after Date of Policy occasioned by the exercise of the right to use or maintain any easement referred to in Schedule B. 25. Supplemental real estate taxes, including those caused by construction or a change of ownership or use, that occurred before Date of Policy, not previously assessed against the Land for any period before Date of Policy. 26. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title based upon a violation of the usury laws of the state where the Land is located if no other Mortgage is shown as an exception in Schedule B. 27. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title (a) resulting from the avoidance in whole or in part, or from a court order providing an alternative remedy, of any transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws; or (b) because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 28. Any defect in or lien or encumbrance on the Title or other matter insured against by this Policy that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the Insured Mortgage in the Public Records. Unless stated to the contrary in Schedule B, the Company incorporates the following American Land Title Association endorsements into this policy by this reference as if these endorsements had been attached to this policy (a) ALTA Form [4-06] [4.1-06] (Condominium), if a condominium unit is referred to in the description of the Land; (b) ALTA Form [5-06] [5.1-06] (Planned Unit Development); (c) ALTA Form 6-06 (Variable Rate Mortgage); (d) ALTA Form 6.2-06 (Variable Rate Mortgage - Negative Amortization); and (e) ALTA Form 8.1-06 (Environmental Protection Lien) subject to the statutes, if any, shown in Schedule B specifically for this endorsement. (f) ALTA Form 9.3-06 (Restrictions, Encroachments, Minerals). The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this policy, but only to the extent provided in the Conditions. IN WITNESS WHEREOF, Fidelity National Title Insurance Company has caused this policy to be signed and sealed by its duly authorized officers. Countersigned: En FIDELITY NATIONAL TITLE INSURANCE COMPANY SEAL ATTEST President Secretary 27-27416-10 3 of 8 ALTA Expanded Coverage Residential Loan Policy (07126/10) Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Tire Association. - - , EXCLUSIONS FROM COVERAGE The following matters an expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of I. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion I (b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforecability, of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing -business laws of the state where the Land is situated. 5. Invalidity or uncnforccability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by The Insured Mortgage and is based upon usury, or any consumer credit protection or truth -in -lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, ancnforceability or lack of priority of the lien of the Insmed Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestec shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk II. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk I1(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors'rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. CONDITIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "Advances": Disbursements of Indebtedness made after the Date of Policy as provided by the Insured Mortgage. (b) "Amount of Insurance": One hundred twenty-five percent (125%) of the Policy Amount stated in Schedule A, as may he increased or decreased by endorsement to this policy, increased by Section 8(b)or decreased by Section 10 of these Conditions. (c) "Date of Policy": The date designated as "Date of Policy" in Schedule A. (d) "Entity": A corporation, partnership, trust, limited liability company, or other similar legal entity. (c) "Indebtedness": The obligation secured by the Insured Mortgage including one evidenced by electronic means authorized by law, and if that obligation is the payment of a debt, the Indebtedness is the sum of (i) the amount of the principal disbursed as of Date of Policy; (ii) the amount of the principal disbursed subsequent to Date of Policy; (iii) the construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the Land or related to the Land that the Insured was and continued to be obligated to advance at Date of Policy and at the date of the Advance, (iv) interest on the loan; (v) the prepayment premiums, exit fees, and other similar fees or penalties allowed by law; (vi) the expenses of foreclosure and any other costs of enforcement; (vii) the amounts advanced to assure compliance with laws or to protect the lien or the priority of the lien of the Insured Mortgage before the acqui- sition of the estate or interest in the Title; (viii) the amounts to pay taxes and insurance; and (ix) the reasonable amounts expended to prevent deterioration of improve- ments; but the Indebtedness is reduced by the total of all payments and by any amount forgiven by an Insured. (f) 'Insured": The Insured named in Schedule A. (i) The term "Insured" also includes (A) the owner of the Indebtedness and each successor in ownership of the Indebtedness, whether the owner or successor owns the Indebtedness for its own account or as a trustee or other fiduciary, except a successor who is an obligor under the provisions of Sec- tion 12(c) of these Conditions; (B) the person or Entity who has "control" ofthe`Yransferable record," if the Indebtedness is evidenced by a `transferable record," as these terms are defined by applicable electronic transactions law; (C) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (D) successors to an Insured by its conversion to another kind of En- tity; (E) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Tide (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly -owned by the named Insured, (2) if the grantee wholly owns the named Insured, or (3) if the grantee is whollyowncd by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly -owned by the same person or En- tity; (F) any government agency or instrumentality that is an insurer or guarantor under an insurance contract or guaranty insuring or guar- antccing the Indebtedness secured by the Insured Mortgage, or any part of it, whether named as an Insured or not; fill With regard to (A), (B), (C), (D), and (E) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured, unless the successor acquired the in- debtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, or other matter immedagainst by this policy. (g) "Insured Claimant": An Insured claiming loss or damage. (h) "Insured Mortgage": The Mortgage described in paragraph 4 of Schedule A (i) "Knowledge" or "Known": Actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title. (j) "Land": The land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any prop- erty beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lima, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. 27-2%416-10 6 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) CopydghtAmerlcan Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted u license from the American Land Title Association. as:P.t SCHEDULE A Our name and address is: File Number: 33402911 Premium: $ 1,744.00 Policy Date: April 7, 2011 at 08:00 a.m. Fidelity National Title Company, 451 E. Vanderbilt Way, Suite 350, San Bernardino, CA 92408 Deductible Amounts and Maximum Dollar Limits of Liability For Covered Risk 16, 18, 19 and 21: Your Deductible Amount Policy No.: Policy Amount: Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $ 250000 is ever is less) Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $ 500000 ffihiever is less) Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $ 500000 is ever is less) Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $ 250000 ham/ icNver is less) Street Address of the Land: vacant land, La Quinta, California 1. Name of insured: City of La Quinta, a California Municipal Corporation and Charter City 2. Your interest in the Land covered by this Policy is: A Fee 3. The Land referred to in this Policy is described as: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF 27-27417-10 1564 $ 635,000.00 Our Maximum Dollar Limit of Liability THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 1 $ 10,000.00 $ 25,000.00 $ 25,000.00 $ 5,000.00 ALTA Homeowner's Policy of Title Insurance (02103/10) Copyright Animations Land this Association. M rights resmad. The use of this Form is remnoted to ALTA licensees and ALTA rnembem in ti good stabling as of the date of use. All other uses are prohibited. Reprinted under license from the American Land This Association. AM retcNry ueu I'M .—ucu+io" ® Policy No.: 27-27417-10 1564 File No.: 33402911 EXHIBIT "ONE" Lots 69 and 70 of Desert Club Tract Unit No. 4, as shown by Map on file in Book 21, Page 60 of Maps, Records of Riverside County, California. Assessor's Parcel No: 770-124-002-3 and 770-124-003-4 ALTA Homeowner's Policy of Title Insurance (02/03/10) CopprlpM Amedem LoW Ties Awoelstlen. Ad rights reeemd. TM use of IN, Form is restricted to ALTA licensees and ALTA manMrs in 1011111111111111111 good vending as of the date of use. All other uses am prohibded. Reprinted under license from the American Lend Tile Aseocistion. "tees¢"-u uac rMf .ew<anou Abk ® Policy No.: 27-2741T-10 1564 File No.: 33402911 SCHEDULE B EXCEPTIONS In addition to the Exclusions, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2011-2012. 2. An assessment by the improvement district shown below Assessment (or Bond) No: not set out Series: AD 00-1 District: La Quinta For: Infrastructur Swr Bond issued: June 30, 2000 Said assessment is collected with the county/city property taxes. Affects: Lot 69 3. An assessment by the improvement district shown below Assessment (or Bond) No: not set out Series: AD 00-1 District: La Quinta For: Infrastructur Swr Bond issued: June 30, 2000 Said assessment is collected with the county/city property taxes. Affects: Lot 70 4. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 5. Water rights, claims or title to water, whether or not disclosed by the public records. S. Easements) for the purposes(s) shown below and rights incidental thereto as delineated or as offered for dedication, on the map of said tract. Purpose: public utilities and incidental purposes Affects: Southerly 5 feet 7. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, based upon race, color, religion, sex, sexual orientation, familial status, martial status, disability, handicap, national origin, ancestry or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: Book 909, Page 250, of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 3 ALTA Homeowner's Policy of Title Insurance (02/03/10) copyright American rand Tide Aeeoelatbn. AD rghb reser"d. The use of this Form is restricted to ALTA licensees and ALTA members in ood standing as of the date of use. All other uses am prohibited. Re rimed under homes from the American Lend Title Association. AMERICAN g P LA. u nfit �IIJM Policy No.: 27-27417-10 1564 File No.: 33402911 Affects: Lot 69 $. Easement)s) for the purpose(s) shown below and rights incidental thereto as set forth in a document; In favor of: The Desert Club Purpose: pole lines, conduits, and pipe lines Recorded: December 9, 1948, Book 909, Page 250, of Official Records Affects: The exact location and extent of said easement is not disclosed of record. Affects: Lot 69 9. Matters contained in that certain document entitled "Resolution of the Board of Directors of Coachella Valley Water District" dated , recorded August 6, 2003, Instrument No: 03-597460, of Official Records, which document, among other things, contains or provides for: as contained therein. Reference is hereby made to said document for full particulars. END OF SCHEDULE B 4 . ALTA Homeowner's Policy of Title Insurance (02/03/10) .Copyright American Lend Title Association. M right, reserved. The use of this Form is restricted to ALTA licensees and ALTA members in wne good standing as of the ties of use. All other uses are prohibited. Repdmed under license from the American Lend This Association. usu nnr "N (iii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy, or (iv) if a government agency or instrumentality is the Insured Claimant, the amount it paid in the acquisition of the Title or the Insured Mortgage in satisfaction of its insurance contract or guaranty. (b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title or the lien of the Insured Mortgage, as insured, (i) the Amount of Insurance shall be increased by 10%, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In the event the Insured has acquired the Title in the manner described in Section 2 of these Conditions or has conveyed the Title, then the extent of liability of the Company shall continue as set forth in Section 8(a) of these Conditions. (d) In addition to the extent of liability under (a), (b), and (c), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. 9. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of Unmarketable Title, or establishes the lien of the Insured Mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or dam- age until there has been a final determination by a court of competentjuris- diction, and disposition of all appeals, adverse to the Title or to the lien of the Insured Mortgage, as insured. (c) The Company shall not be liable for loss or damage to the Insured for liabil- ity voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy, except payments made for costs, attorneys' fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment. However, any payments made prior to the acquisition of Title as provided in Section 2 of these Conditions shall not reduce the Amount of Insurance afforded under this policy except to the extent that the payments reduce the Indebtedness. (b) The voluntary satisfaction or release of the Insured Mortgage shall terminate all liability of the Company except as provided in Section 2 of these Condi- tions. 11. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in ac- cordance with these Conditions, the payment shall be made within 30 days. 12. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) The Company's Right to Recover Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title or Insured Mortgage and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the _ extent of the amount of any toss, costs, attorneys' fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant shall ex- ecute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compro- mise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Insured's Rights and Limitations (it) If the Insured exercises a right provided in (b)O, but has Knowledge of any claim adverse to the Title or the lien of the Insured Mortgage in- sured against by this policy, the Company shall be required to pay only that part of any losses insured against by this policy that shall exceed the amount, if any, lost to the Company by reason of the impairment by the Insured Claimant of the Company's right of subrogation. (c) The Company's Rights Against Noninsured Obligors The Company's right of subrogation includes the Insured's rights against non-insured obligors including the rights of the Insured to indemnities, guar- antees, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights. The Company's right of subrogation shall not be avoided by acquisition of the Insured Mortgage by an obligor (except an obligor described in Section I (f)(i)(F) of these Conditions) who acquires the Insured Mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond, and the obli- gor will not be an Insured under this policy. 13. ARBITRATION Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbi- trable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Com- pany is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Title or lien of the Insured Mortgage or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Sched- ule A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the en- dorsement expressly states, it does not (i) modify any of the terms and provi- sions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 15. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 16. CHOICE OF LAW; FORUM (i) The owner of the Indebtedness may release or substitute the personal 17 liability of any debtor or guarantor, extend or otherwise modify the terms of payment, release a portion of the Title from the lien of the Insured Mortgage, or release any collateral security for the Indebted- ness, if it does not affect the enforceability or priority of the lien of the Insured Mortgage. (a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged there- for in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title in- surance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title or the lien of the Insured Mortgage that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. NOTICES, WHERE SENT Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at Fidelity National Title Insurance Company, Attn: Claims Department, P.O. Box 45023, Jacksonville, FL 32232-5023. 27 274ltr-to 8 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the ,,,,ate date of use. All other uses are prohibited. Reprinted uo'.license from the American Land Title Association. Fidelity Natal Title Insurance Company " 7?o- 174-ooq Policy Number: 27-27416-1 o- 1567 EXPANDED COVERAGE RESIDENTIAL LOAN POLICY FOR A ONE -TO -FOUR FAMILY RESIDENCE Issued by Fidelity National Title Insurance Company Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at the address shown in Section 17 of the Conditions. SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHED- ULE B, AND THE CONDITIONS, Fidelity National Title Insurance Company, a California corporation (the "Company") insures as of Date of Policy and, to the extent stated in Covered Risks 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 and 28, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: COVERED RISKS I. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or deliv- ered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii)a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be dis- closed by an accurate and complete land survey of the Land. The term "encroachment' includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improve- ments located on adjoining land. 3. Unmarketable Title. 4. No right of access to and from the Land. 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowl- edge. 9 The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. This Covered Risk includes but is not 27-27416-10 1 of 8 ALTA Expanded Coverage Residential Loan Policy (07/6/10) Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. limited to insurance against loss from any of the following impairing the lien of the Insured Mortgage (a) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (b) failure of any person or Entity to have authorized a transfer or. conveyance; (c) the Insured Mortgage not being properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (d) failure to perform those acts necessary tocreatea document by electronic means authorized by law; (e) a document executed under a falsified, expired, or otherwise invalid power of attorney; (f) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (g) a defective judicial or administrative proceeding. 10. The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance. 11. The lack of priority of the lien of the Insured Mortgage upon the Title (a) as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for services, labor, or material arising from construction of an improvement or work related to the Land when the improvement or work is either (i) contracted for or commenced on or before Date of Policy; or (ii) contracted for, commenced, or continued after Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on Date of Policy to advance; (b) over the lien of any assessments for street improvements under construction or completed at Date of Policy; (c) over any defect in or lien or encumbrance on the Title attaching or created before, on or after Date of Policy; as to each and every advance of proceeds of the loan secured by the Insured Mortgage, which at Date of Policy the Insured has made or is legally obligated to make; and (d) over any environmental protection lien that comes into existence before, on or after Date of Policy pursuant to any federal statute in effect at Date of Policy as to each and every advance of proceeds of the loan secured by the Insured Mortgage, which at Date of Policy the Insured has made or is legally obligated to make. 12. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens. 13. The failure of the Land (a) to have the street address shown in Schedule A, and the failure of the map, if any, attached to this policy to show the correct location and dimensions of the Land according to the Public Records. (b) to be improved with a one -to -four family residential structure or, if stated in the description of the Land, a residential condominium unit. (c) to be zoned to permit a one -to -four family residential structure or, if stated in the description of the Land, a residential condominium unit. (d) to be a lawfully created one -to -four family residential parcel according to state statutes and local ordinances governing subdivision of land. 14. The forced removal, modification or replacement of any existing one -to -four family residential structure or residential condominium unit located on the Land resulting from the violation of any of the following requirements of any applicable zoning ordinance: Area or dimensions of the Land as a building site; floor space area of the structure; height of the structure; or distance of the structure from the boundary lines of the Land. 15. The assessment or taxation of the Land by governmental authority as part of a larger parcel. 16. The failure of the existing one -to -four family residential structure or residential condominium unit or a portion or a future modification or replacement to have been constructed with a valid building permit from the appropriate local government issuing office or agency. 17. The inability to use the existing one -to -four family residential structure or residential condominium unit or a portion of it or a future modification or replacement to it for one -to -four family residential purposes because that use violates a restriction shown in Schedule B. 18. Damage to improvements, lawns, shrubbery or trees constructed or planted on the Land before, on or after Date of Policy resulting from the future exercise of any right to use the surface of the Land for the extraction or development of minerals, water or any other substance. 19. The encroachment onto the Land of an improvement constructed after Date of Policy. 27-27416-10 2 of 8 ALTA Expanded Coverage Residential, Loan Policy (07/26/10) Copyright American Land Title AssoclatioA6,411 rights reserved. The use of this Form is restricted�TA licensees and ALIA memoers in.a F good standing as of the date of use. All oth SCHEDULE A Our name and address is: File Number: 33402914 Premium: $ 2,176.00 Policy Date: April 7, 2011 at 08:00 a.m. Fidelity National Title Company, 451 E. Vanderbilt Way, Suite 350, San Bernardino, CA 92408 Deductible Amounts and Maximum Dollar Limits of Liability For Covered Risk 16, 18, 19 and 21: Your Deductible Amount Policy No.: Policy Amount: Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $ 250000 is ever is less) Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $ 500000 is ever is less) Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $ 500000 (Nhic of ver is less) Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $ 250000 (Whomever is less) Street Address of the Land: vacant land, La Quinta, California 1. Name of insured: City of La Quinta, a California Municipal Corporation and Charter City 2. Your interest in the Land covered by this Policy is: A Fee 3. The Land referred to in this Policy is described as: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF 27-27417-10 1570 $ 882,630.00 Our Maximum Dollar Limit of Liability THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 1 $ 10,000.00 $ 25,000.00 $ 25,000.00 $ 5/000/00 ALTA Homeowner's Policy of Title Insurance (02/03/10) Cuprrlght Anvadeen rand this Mweledon. AD rights marred. The use of this Fonts is rented to ALTA licensees and ALTA members in r� good standing as of the time of use. All other uses am prohibited. Reprinted under license from the Amencen Land Title Association. MERICAN nne ATToe Policy No.: 27-2741 -10 1570 File No.: 33402914 EXHIBIT "ONE" Lots 68 and 77 in Desert Club Tract, Unit No. 4, in the City of La Quinta, County of Riverside, State of California as shown by Map recorded in Book 21, Page 60 of Maps, Records of said Riverside County, California in Section 6, Township 6 South, Range 7 East, San Bernardino Meridian. The above legal description is pursuant to that Notice of Lot Merger recorded August 23, 2007 as Instrument No. 07-542912 of Official Records. Assessor's Parcel No: 770-124-009-0 2 ALTA Homeowner's Policy of Title Insurance (02/03/10) copyright Amerloan Land This Association. AN dghb reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Repdmed urder license TE from the American Lard This Association. ga QRM ueu m w450CIw110N ARk Policy No.: 27-2741 -10 1570 File No.: 33402914 SCHEDULE B EXCEPTIONS In addition to the Exclusions, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 2. 3. 4. 5. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2011-2012. An assessment by the improvement district shown below Assessment (or Bond) No: not set out Series: AD 00-1 District: La Quinta For: Infrastructur swr Bond issued: June 30, 2000 Said assessment is collected with the county/city property taxes. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. Water rights, claims or title to water, whether or not disclosed by the public records. Easements) for the purposes(s) shown below and rights incidental thereto as delineated or as offered for dedication, on the map of said tract. Purpose: public utilities Affects: as shown on said Tract Map 6. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, based upon race, color, religion, sex, sexual orientation, familial status, martial status, disability, handicap, national origin, ancestry or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: September 10, 1947, Book 863, Page 325, of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. Easementls) for the purpose(s) shown below and rights incidental thereto as set forth in a document; In favor of: The Deset Club Purpose: pole lines, conduits and pipelines Recorded: September 10, 1947, Book 863, Page 325, of Official Records Affects: The exact location and extent of said easement is not disclosed of record. 8. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, based upon race, color, religion, sex, sexual orientation, familial status, martial status, disability, handicap, national origin, ancestry or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: December 9, 1948, Book 1033, Page 552, of Official Records 3 ALTA Homeowner's Policy of Title Insurance (02/03110) Copyright Amerli land Tide Association. AN rights asserted. The use of this Form is asatncted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses ere prohibited. Reprinted under license from the American Land Title Association. 1 w.o t.I g ng P P uuo nn.e Policy No.: 27-2741 -10 1570 File No.: 33402914 Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 9. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document; In favor of: The Desert Club Purpose: pole lines, conduits, and pipe lines Recorded: December 9, 1948, Book 1033, Page 552, of Official Records Affects: The exact location and extent of said easement is not disclosed of record. 10. Assessments, if any, of the Coachella Valley Water Irrigation District. 11. Matters contained in that certain document entitled "Development Agreement" dated , executed by and between The City of La Quinta, a California Municipal Corporation and Charter City, the La Quinta Redevelopment Agency, a Public Body, Corporate and Politic and Nispero Properties, Inc., a California Corporation recorded April 12, 2006, Instrument No. 06-261303, of Official Records, which document, among other things, contains or provides for: as contained therein. Reference is hereby made to said document for full particulars 12. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Verizon California, Inc., a Corporation Purpose: public utilities Recorded: December 15, 2006, Instrument/File No. 06-919313, of Official Records Affects: the land 13. An Agreement or Covenant to hold land as one parcel recorded August 23, 2007 as Instrument No. 07-542912 of Official Records. 14. Matters contained in that certain document entitled "Resolution No. 2007-01 1 Street Vacation 2006-043 Vacating a Portion of Public Utility Easement Desert Club Tract Unit 4"" dated , recorded September 17, 2007, Instrument No. 07-585051, of Official Records, which document, among other things, contains or provides for: as contained therein. Reference is hereby made to said document for full particulars. END OF SCHEDULE B ALTA Homeowner's Policy of Title Insurance (02103/10) Copyright Arnerloen land Title Assoeisti n. AN rights reserved. The use of this Fonn is restricted to ALTA licensees erd ALTA members in good standing as of the date of use. All other uses we prohibited. Reprinted under license from the American Lord TRIe Association. u o rmt .uncunou Order No.: 33402914 ENDORSEMENT Attached to Policy No. 27-27417-101570 Issued by Fidelity National Title Insurance Company The Company insures the insured against loss which the insured shall sustain by reason of the enforcement or attempted enforcement of the covenants, conditions and restrictions referred to in paragraph 6 of Schedule B, based on a violation thereof on the land prior to Date of Policy. As used in this endorsement, the words "covenants, conditions or restrictions" do not refer to or include any covenant, condition or restriction (a) relating to obligations of any type to perform maintenance, repair or remediation on the land, or (b) pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions or substances except to the extent that a notice of a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy and is not excepted in Schedule B. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. Dated: April 7, 2011 Fidelity National Title INSURANCE COMPANY Countersigned Colorado Form 100.20 CLTA Form 100.20 (6/3/05) tie I I I I fI I I O I � I I °® I I -___ 6 r / I 2 � I 'p'-" �8VGf1N a 13 c m Rag] Qo MMV c 11 Order: 33402915 Doc: RV:A 770-12 Page 1 of 1 Created By: larrylegaspi Printed: 3/16/2011 12:32:47 PM PST 20. Encroachment of improvements constructed on the Land after Date of Policy onto adjoining property or over any easement or building setback line on the Land. 21. Forgery after Date of Policy of (a) any instrument purporting to subordinate, assign, release or reconvey the Insured Mortgage; and (b) any instrument purporting to convey or encumber the Title. 22. The invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances made or changes in the rate of interest charged subsequent to any modification of the terms of the Insured Mortgage made after Date of Policy which are secured by the terms of the Insured Mortgage as modified. 23. Damage to improvements, lawns, shrubbery or trees constructed or planted on the Land before, on or after Date of Policy occasioned by the exercise of the right to use or maintain any easement referred to in Schedule B. 24. Interference with the use for one -to -four family residential purposes of the improvements constructed on the Land before, on or after Date of Policy occasioned by the exercise of the right to use or maintain any easement referred to in Schedule B. 25. Supplemental real estate taxes, including those caused by construction or a change of ownership or use, that occurred before Date of Policy, not previously assessed against the Land for any period before Date of Policy. 26. The invalidity or unenforceability of the lien ofthe Insured Mortgage upon the Title based upon a violation of the usury laws of the state where the Land is located if no other Mortgage is shown as an exception in Schedule B. 27. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title (a) resulting from the avoidance in whole or in part, or from a court order providing an alternative remedy, of any transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws; or (b) because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 28. Any defect in or lien or encumbrance on the Title or other matter insured against by this Policy that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the Insured Mortgage in the Public Records. Unless stated to the contrary in Schedule B, the Company incorporates the following American Land Title Association endorsements into this policy by this reference as if these endorsements had been attached to this policy (a) ALTA Form [4-06] [4.1-06] (Condominium), if a condominium unit is referred to in the description of the Land; (b) ALTA Form [5-06] [5.1-06] (Planned Unit Development); (c) ALTA Form 6-06 (Variable Rate Mortgage); (d) ALTA Form 6.2-06 (Variable Rate Mortgage - Negative Amortization); and (e) ALTA Form 8.1-06 (Environmental Protection Lien) subject to the statutes, if any, shown in Schedule B specifically for this endorsement. (f) ALTA Form 9.3-06 (Restrictions, Encroachments, Minerals). The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this policy, but only to the extent provided in the Conditions. IN WITNESS WHEREOF, Fidelity National Title Insurance Company has caused this policy to be signed and sealed by its duly authorized officers. Countersigned: 0 FIDELITY NATIONAL TITLE INSURRANCE COMPANY ATTEST President Secretary 27-27416-10 3 of S ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Association. All rights reserved. The use of this Fonn is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Ttle Association. l EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason oC 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (it) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion Ila) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recarded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing -business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth -in -lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforeeability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk it. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk I1(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. CONDITIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "Advances": Disbursements of Indebtedness made after the Date of Policy as provided by the Insured Mortgage. (b) "Amount of Insurance": One hundred twenty-five percent (125%) of the Policy Amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b)or decreased by Section 10 of these Conditions. (c) "Date of Policy": The date designated as "Date of Policy" in Schedule A. (d) "Entity": A corporation, partnership, trust, limited liability company, or other similar legal entity. (e) `Indebtedness": The obligation secured by the Insured Mortgage including one evidenced by electronic means authorized by law, and if that obligation is the payment of a debt, the Indebtedness is the sum of (i) the amount of the principal disbursed as of Date of Policy; (it) the amount of the principal disbursed subsequent to Date of Policy; (iii) the construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the Land or related to the Land that the Insured was and continued to be obligated in advance at Date of Policy and at the date of the Advance; (iv) interest on the loan; (v) the prepayment premiums, exit fees, and other similar fees or penalties allowed by law; (vi) the expenses of foreclosure and any other costs of enforcement; (vii) the amounts advanced to assure compliance with laws or to protect the lien or the priority of the lien of the Insured Mortgage before the acqui- sition of the estate or interest in the Title; (viii) the amounts to pay taxes and insurance; and (ix) the reasonable amounts expended to prevent deterioration of improve- ments; but the Indebtedness is reduced by the total of all payments and by any amount forgiven by an Insured. (t) `Insured": The Insured named in Schedule A. (i) The term "Insured" also includes (A) the owner of the Indebtedness and each successor in ownership of the Indebtedness, whether the owner or successor owns the Indebtedness for its own account or as a trustee or other fiduciary, except a successor who is an obligor under the provisions of Sec- tion 12(c) of these Conditions; (B) the person or Entity who has "control" of the`Yransferable record," if the Indebtedness is evidenced by a `transferable record," as these terms are defined by applicable electronic transactions law; (C) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (D) successors to an Insured by its conversion to another kind of En- tity; (E) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly -owned by the named Insured, (2) if the grantee wholly owns the named Insured, or (3) if the grantee is wholly -owned by an affiliated Entity of the named Insured provided the affiliated Entity and the named Insured are both wholly -owned by the same person or En- tity; (F) any government agency or instrumentality that is an insurer or guarantorunder an insurance contract or guammy insuring or guar- anteeing the Indebtedness secured by the Insured Mortgage, or any part of it, whether named as an Insured or not; (ii) With regard to (A), (B), (C), (D) , and (E) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured, unless the successor acquired the In- debtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, or othermatter insured against by this policy. (g) "Insured Claimant": An Insured claiming loss or damage. (h) "Insured Mortgage': The Mortgage described in paragraph 4 of Schedule A (i) "Knowledge" or "Known": Actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title. O "Land": The land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any prop- erty beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. 27-27418-10 6 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) CopyrlghtAmerican Land Title Association. All rights reserved. The use of this Form is restricted WALTAlicensees and ALTAmembers in good standing as of the date of use. All other uses are prohibited. Reprinted u license from the American Land Title Association. �`�, r .(kJ "Mortgage": Mortgage, deed of trust, trust dillill, or other security instru- ment, including one evidenced by electronic authorized by law. (1) "Public Records": Records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real t prbperty, to purchasers for value and without Knowledge. With respect to • ' Covered Risk 5(d), "Public Records" shall also include environmental pro- tection liens fled in the records of the clerk of the United States District Court for the district where the Land is located. (m) "Title": The estate or interest described in Schedule A. In) "Unmarketable Title": Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title or a prospective purchaser of the Insured Mortgage to be released from the obligation to purchase, lease, or lend if there is a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in Ihvor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not con- tinue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in writing (i) in case of any litiga- tion as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured of any claim of title or interest that is adverse to the Title or the lien of the Insured Mortgage, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title or the lien of the Insured Mortgage, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. 4. PROOF OF LOSS In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the de- fect, lien, encumbrance, or other matter insured against by this policy that consti- tutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 5. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleg- ing matters insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in Section 7 of these Conditions, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be neces- sary or desirable to establish the Title or the lien of the Insured Mortgage, as insured, or to prevent or reduce loss or damage to the Insured. The Company may lake any appropriate action under the terms of this policy. whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction, and it expressly reserves the right, in its sole discretion, to appeal any adverse judgment or order. 6. DUTY OF INSURED CLAIMANT TO COOPERATE (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose. Whenever requested by the Com- pany, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, -or effecting settlement, and (ii) in any other lawful Exagaligit in the opinion of the Company ma7orm desirable to es the Title, the lien of the Insured Mortmatter as incur fthe Company is prejudiced by the faito famish the required cooperation, the Company's obl cured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. (b) The Company may reasonably require the Insured Claimant to submit to ex- amination under oath by any authorized representative of the Company and to produce for examination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Com- pany, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e-mails, disks, tapes, and vid- eos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized repre- sentative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, in- spect, and copy all of these records in the custody or control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judg- ment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, pro- duce any reasonably requested information, or grant permission to secure reasonably necessary information from third parties as required in this sub- section, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following addi- tional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) To pay or tender payment oftheAmount of Insurance under this policy together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (ii) To purchase the Indebtedness for the amount of the Indebtedness on the date of purchase, together with any costs, attorneys' fees, and ex- penses incurred by the Insured Claimant that were authorized by the Company up to the time of purchase and that the Company is obligated to pay. When the Company purchases the Indebtedness, the Insured shall trans- fer, assign, and convey to the Company the Indebtedness and the In- sured Mortgage, together with any collateral security. Upon the exercise by the Company of either of the options provided for in subsections (a)(i) or (ii), all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in those subsections, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addi- tion, the Company will pay any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) to pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obli- gated to pay. Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, pros- ecute, or continue any litigation. 8. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the least of (i) the Amount of Insurance, (ii) the Indebtedness, 27-27416-10 7 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. , - (iii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy, or fie) if a government agency or instrumentality is the Insured Claimant, the amount it paid in the acquisition of the Title or the Insured Mortgage in satisfaction of its insurance contract or guaranty. (b) Iflhe Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title or the lien of the Insured Mortgage, as insured, (if the Amount of Insurance shall be increased by 10%, and (i it the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In the event the Insured has acquired the Title in the manner described in Section 2 of these Conditions or has conveyed the Title, then the extent of liability of the Company shall continue as set forth in Section 8(a) of these Conditions. (d) In addition to the extent of liability under (a), (b), and (c), the Company will also pay those costs, attorneys' tees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. 9. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, or establishes the lien of the Insured Mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be. liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or dam- age until there has been a final determination by a court of competentjuris- diction, and disposition of all appeals, adverse to the Title or to the lien of the Insured Mortgage, as insured. (c) The Company shall not be liable for loss or damage to the Insured for liabil- ity voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy, except payments made for costs, attorneys' fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment. However, any payments made prior to the acquisition of Title as provided in Section 2 of these Conditions shall not reduce the Amount of Insurance afforded under this policy except to the extent that the payments reduce the Indebtedness. (b) The voluntary satisfaction or release of the Insured Mortgage shall terminate all liability of the Company except as provided in Section 2 of these Condi- tions. 11. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in ac- cordance with these Conditions, the payment shall be made within 30 days. 12. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) The Company's Right to Recover Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title or Insured Mortgage and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant shall ex- ecute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compro- mise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until alter the Insured Claimant shall have recovered its loss. (b) The Insured's Rights and Limitations (ii) If the Insured exercises a right provided in (b)(i), but has Knowledge of any claim adverse to the Title or the lien of the Insured Mortgage in- sured against by this policy, the Company shall be required to pay only that part of any losses insured against by this policy that shall exceed the amount, if any, lost to the Company by reason of the impairment by the Insured Claimant of the Company's right of subrogation. (c) The Company's Rights Against Noninsured Obligors The Company's right of subrogation includes the Insured's rights against non-insured obligors including the rights of the Insured to indemnities, guar- antees, other policies of insurance, or bonds, notwithstanding any terns or conditions contained in those instruments that address subrogation rights. The Company's right of subrogation shall not be avoided by acquisition of the Insured Mortgage by an obligor (except an obligor described in Section I (f)(i)(F) of these Conditions) who acquires the Insured Mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond, and the obli- gor will not be an Insured under this policy. 13. ARBITRATION Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, them shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbi- trable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award tendered by the Arbitrator(s) may he entered in any court of competent jurisdiction. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Com- pany is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Title or lien of the Insured Mortgage or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Sched- ule A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the en- dorsement expressly states, it does not (i) modify any of the terns and provi- sions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 15. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 16. CHOICE OF LAW; FORUM (a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged there- for in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title in- surance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title or the lien of the Insured Mortgage that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. (i) The owner of the Indebtedness may release or substitute the personal liability of any debtor or guarantor, extend or otherwise modify the 17 NOTICES, WHERE SENT terms of payment, release a portion of the Title from the lien of the Any notice of claim and any other notice or statement in writing required to be Insured Mortgage, or release any collateral security for the Indebted- given to the Company trader this policy must be given to the Company at Fidelity ness, if it does not aflect the enforceability or priority of the lien of the National Title Insurance Company, Attn: Claims Department, P.O. Box 45023, Insured Mortgage. Jacksonville. FL 32232-5023. 27-2740'IN 8 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/t Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the v ' date of use. All other uses are prohibited. Reprinted u icense from the American Land Title Association. ' Fidelity Natial Title Insurance Com ny ?70 ooq Policy Number: 27-27416-1 0- 1570 EXPANDED COVERAGE RESIDENTIAL LOAN POLICY FORA ONE -TO -FOUR FAMILY RESIDENCE Issued by Fidelity National Title Insurance Company Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at the address shown in Section 17 of the Conditions. SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHED- ULE B, AND THE CONDITIONS, Fidelity National Title Insurance Company, a California corporation (the "Company") insures as of Date of Policy and, to the extent stated in Covered Risks 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 and 28, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: COVERED RISKS 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or deliv- ered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii)a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be dis- closed by an accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improve- ments located on adjoining land. 3. Unmarketable Title. 4. No right of access to and from the Land. 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; - (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowl- edge. 9 The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. This Covered Risk includes but is not 27-27416-10 I of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. limited to insurance against loss from any of the following impairing the lien of the Insured Mortgage (a) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (b) failure of any person or Entity to have authorized a transfer or conveyance; (c) the Insured Mortgage not being properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (d) failure to perform those acts necessary to create a document by electronic means authorized by law; (e) a document executed under a falsified, expired, or otherwise invalid power of attorney; (f) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (g) a defective judicial or administrative proceeding. 10. The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance. 11. The lack of priority of the lien of the Insured Mortgage upon the Title (a) as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for services, labor, or material arising from construction of an improvement or work related to the Land when the improvement or work is either (i) contracted for or commenced on or before Date of Policy; or (ii) contracted for, commenced, or continued after Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on Date of Policy to advance; (b) over the lien of any assessments for street improvements under construction or completed at Date of Policy; (c) over any defect in or lien or encumbrance on the Title attaching or created before, on or after Date of Policy; as to each and every advance of proceeds of the loan secured by the Insured Mortgage, which at Date of Policy the Insured has made or is legally obligated to make; and (d) over any environmental protection lien that comes into existence before, on or after Date of Policy pursuant to any federal statute in effect at Date of Policy as to each and every advance of proceeds of the loan secured by the Insured Mortgage, which at Date of Policy the Insured has made or is legally obligated to make. 12. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens. 13. The failure of the Land (a) to have the street address shown in Schedule A, and the failure of the map, if any, attached to this policy to show the correct location and dimensions of the Land according to the Public Records. (b) to be improved with a one -to -four family residential structure or, if stated in the description of the Land, a residential condominium unit. (c) to be zoned to permit a one -to -four family residential structure or, if stated in the description of the Land, a residential condominium unit. (d) to be a lawfully created one -to -Four family residential parcel according to state statutes and local ordinances governing subdivision of land. 14. The forced removal, modification or replacement of any existing one -to -four family residential structure or residential condominium unit located on the Land resulting from the violation of any of the following requirements of any applicable zoning ordinance: Area or dimensions of the Land as a building site; floor space area of the structure; height of the structure; or distance of the structure from the boundary lines of the Land. 15. The assessment or taxation of the Land by governmental authority as part of a larger parcel. 16. The failure of the existing one -to -four family residential structure or residential condominium unit or a portion or a future modification or replacement to have been constructed with a valid building permit from the appropriate local government issuing office or agency. 17. The inability to use the existing one -to -four family residential structure or residential condominium unit or a portion of it or a future modification or replacement to it for one -to -four family residential purposes because that use violates a restriction shown in Schedule B. 18. Damage to improvements, lawns, shrubbery or trees constructed or planted on the Land before, on or after Date of Policy resulting from the future exercise of any right to use the surface of the Land for the extraction or development of minerals, water or any other substance. 19. The encroachment onto the Land of an improvement constructed after Date of Policy. 27-27416-10 2 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Associati� rights reserved. The use of this Form is restricted to�A licensees and ALTA members in good standing as of the date of use. All oth are prohibited. Reprinted under license from the Am Land Title Association. SCHEDULE A Our name and address is: File Number: 33402914 Premium: $ 2,176.00 Policy Date: April 7, 2011 at 08:00 a.m. Fidelity National Title Company, 451 E. Vanderbilt Way, Suite 350, San Bernardino, CA 92408 Deductible Amounts and Maximum Dollar Limits of Liability For Covered Risk 16, 18, 19 and 21: Your Deductible Amount Policy No.: Policy Amount: Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $ 250000 c ever is less) Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $ 500000 is ever is less) Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $ 5 000.00 ichever is less) Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $ 250000 is ever is less) Street Address of the Land: vacant land, La Quinta, California Name of insured: City of La Quinta, a California Municipal Corporation and Charter City 2. Your interest in the Land covered by this Policy is: A Fee 3. The Land referred to in this Policy is described as: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF 27-27417-10 1570 $ 882,630.00 Our Maximum Dollar Limit of Liability THIS POLICY VALID ONLY IF SCHEDULE 8 IS ATTACHED 1 $ 10,000.00 $ 26,000.00 $ 25,000.00 $ 51000.00 ALTA Homeowner's Policy of Title Insurance (02/03110) CoW4M American laud TMN Aaxhlbn. AD right essin . The use of tits Form is restricted to ALTA licensees, end ALTA members in good standing as of the date of use. All other uses am prohibited. Reprinted under license from the American Land This Association. AMERICAN uvo ri ..I.An.. ® Policy No.: 27-27417-10 1570 File No.: 33402914 EXHIBIT "ONE" Lots 68 and 77 in Desert Club Tract, Unit No. 4, in the City of La Quinta, County of Riverside, State of California as shown by Map recorded in Book 21, Page 60 of Maps, Records of said Riverside County, California in Section 6, Township 6 South, Range 7 East, San Bernardino Meridian. The above legal description is pursuant to that Notice of Lot Merger recorded August 23, 2007 as Instrument No. 07-542912 of Official Records. Assessor's Parcel No: 770-124-009-0 2 ALTA Homeowner's Policy of Title Insurance (02/03/10) Copyright Anerleen land Title Association. AN right, reserved. The use of this Form is restricted to ALTA licensees and ALTA membsre in good standing as of the data of use. All other uses am prohibited. Reprised under license from the American Land Title Association. AMERICAN uau nrri Policy No.: 27-27417-10 1570 File No.: 33402914 SCHEDULE B EXCEPTIONS In addition to the Exclusions, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2011-2012. An assessment by the improvement district shown below Assessment (or Bond) No: not set out Series: AD 00-1 District: La Quinta For: Infrastructur swr Bond issued: June 30, 2000 Said assessment is collected with the county/city property taxes. 3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 4. Water rights, claims or title to water, whether or not disclosed by the public records. 5. Easements) for the purposes(s) shown below and rights incidental thereto as delineated or as offered for dedication, on the map of said tract. Purpose: public utilities Affects: as shown on said Tract Map 6. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, based upon race, color, religion, sex, sexual orientation, familial status, martial status, disability, handicap, national origin, ancestry or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: September 10, 1947, Book 863, Page 325, of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 7. Easementis) for the purpose(s) shown below and rights incidental thereto as set forth in a document; In favor of: The Deset Club Purpose: pole lines, conduits and pipelines Recorded: September 10, 1947, Book 863, Page 325, of Official Records Affects: The exact location and extent of said easement is not disclosed of record. 8. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, based upon race, color, religion, sex, sexual orientation, familial status, martial status, disability, handicap, national origin, ancestry or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: December 9, 1948, Book 1033, Page 552, of Official Records 3 ALTA Homeowner's Policy of Title Insurance (02/03110) copyright American land TMts Association. Ali rights marred. The use of this Fonn is restricted to ALTA licensees and ALTA members in tt� good standing as of the des of use. All other uses are prohibited. Reprinted under license from the American Land This Association. AMeercee LA.. 11ni uma nos F Policy No.: 27-27417-10 1570 File No.: 33402914 Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 9. Easementls) for the purpose(s) shown below and rights incidental thereto as set forth in a document; In favor of: The Desert Club Purpose: pole lines, conduits, and pipe lines Recorded: December 9, 1948, Book 1033, Page 552, of Official Records Affects: The exact location and extent of said easement is not disclosed of record. 10. Assessments, if any, of the Coachella Valley Water Irrigation District. 11. Matters contained in that certain document entitled "Development Agreement" dated , executed by and between The City of La Quinta, a California Municipal Corporation and Charter City, the La Quinta Redevelopment Agency, a Public Body, Corporate and Politic and Nispero Properties, Inc., a California Corporation recorded April 12, 2006, Instrument No. 06-261303, of Official Records, which document, among other things, contains or provides for: as contained therein. Reference is hereby made to said document for full particulars. 12. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Verizon California, Inc., a Corporation Purpose: public utilities Recorded: December 15, 2006, Instrument/File No. 06-919313, of Official Records Affects: the land 13. An Agreement or Covenant to hold land as one parcel recorded August 23, 2007 as Instrument No. 07-542912 of Official Records. 14. Matters contained in that certain document entitled "Resolution No. 2007-011 Street Vacation 2006-043 Vacating a Portion of Public Utility Easement Desert Club Tract Unit 4"" dated , recorded September 17, 2007, Instrument No. 07-585051, of Official Records, which document, among other things, contains or provides for: as contained therein. Reference is hereby made to said document for full particulars. END OF SCHEDULE B ALTA Homeowner's Policy of Title Insurance (02/03110) Copyright Amerleen rand Title Assoeisthn. All rights reserved. The use of this Form is matnoted to ALTA licensees and ALTA members in g� good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. AM E RKCL N LAN. lilt[ wt{Ofl.lI0W 7F Order No.: 33402914 ENDORSEMENT Attached to Policy No. 27-27417-101570 Issued by Fidelity National Title Insurance Company The Company insures the insured against loss which the insured shall sustain by reason of the enforcement or attempted enforcement of the covenants, conditions and restrictions referred to in paragraph 6 of Schedule B, based on a violation thereof on the land prior to Date of Policy. As used in this endorsement, the words "covenants, conditions or restrictions" do not refer to or include any covenant, condition or restriction (a) relating to obligations of any type to perform maintenance, repair or remediation on the land, or (b) pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions or substances except to the extent that a notice of a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy and is not excepted in Schedule B. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (i1) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. Dated: April 7, 2011 Fidelity National Title INSURANCE COMPANY Countersigned Colorado Form 100.20 CLTA Form 100.20 (5/3/05) Iup ail " I I I I A Q® t t•® w. I --I Q Mm" I U Lei sits / CI A xM its •�'. =s IRI This plat is not a survey, it is merely fumished as a convenience to locate the land in relation to adjoining streets and other lands, and not to guarantee dimensions, distances, bearings or acreage Order: 33402914 Doc: RV:A 770.12 Page 1 of 1 Created By: larrylegaspi Printed: 3/15/2011 12:22:50 PM PST 20. Encroachment of improvements constructed on the Land after Date of Policy onto adjoining property or over any easement or building setback line on the Land. 21. Forgery after Date of Policy of (a) any instrument purporting to subordinate, assign, release or reconvey the Insured Mortgage; and (b) any instrument purporting to convey or encumber the Title. 22. The invalidity, unenforceability or lack ofpriority of the lien of the Insured Mortgage as to Advances made or changes in the rate of interest charged subsequent to any modification of the terms of the Insured Mortgage made after Date of Policy which are secured by the terms of the Insured Mortgage as modified. 23. Damage to improvements, lawns, shrubbery or trees constructed or planted on the Land before, on or after Date of Policy occasioned by the exercise of the right to use or maintain any easement referred to in Schedule B. 24. Interference with the use for one -to -four family residential purposes of the improvements constructed on the Land before, on or after Date of Policy occasioned by the exercise of the right to use or maintain any easement referred to in Schedule B. 25. Supplemental real estate taxes, including those caused by construction or a change of ownership or use, that occurred before Date of Policy, not previously assessed against the Land for any period before Date of Policy. 26. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title based upon a violation of the usury laws of the state where the Land is located if no other Mortgage is shown as an exception in Schedule B. 27. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title (a) resulting from the avoidance in whole or in part, or from a court order providing an alternative remedy, of any transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws; or (b) because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 28. Any defect in or lien or encumbrance on the Title or other matter insured against by this Policy that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the Insured Mortgage in the Public Records. Unless stated to the contrary in Schedule B, the Company incorporates the following American Land Title Association endorsements into this policy by this reference as if these endorsements had been attached to this policy (a) ALTA Form [4-06] [4.1-06] (Condominium), if a condominium unit is referred to in the description of the Land; (b) ALTA Form [5-06] [5.1-06] (Planned Unit Development); (c) ALTA Form 6-06 (Variable Rate Mortgage); (d) ALTA Form 6.2-06 (Variable Rate Mortgage - Negative Amortization); and (e) ALTA Form 8.1-06 (Environmental Protection Lien) subject to the statutes, if any, shown in Schedule B specifically for this endorsement. (f) ALTA Form 9.3-06 (Restrictions, Encroachments, Minerals). The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this policy, but only to the extent provided in the Conditions. IN WITNESS WHEREOF, Fidelity National Title Insurance Company has caused this policy to be signed and sealed by its duly authorized officers. Countersigned: FIDELITY NATIONA/LL TITLE INSURANCE COMPANY 'SEAL ATTEST President By: "L� Secretary 27-27416-10 3 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. EXCLUSIONS FROM COVERAGE The following matters arc expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of'. I. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion I (a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion I(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (c) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforccability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing -business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth -in -lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, uncnforecability, or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk It. 7. Any lien on the Tide for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk I1(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors'rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. CONDITIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "Advances": Disbursements of Indebtedness made after the Date of Policy as provided by the Insured Mortgage. (b) "Amount of Insurance": One hundred twenty-five percent (125%) of the Policy Amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b)or decreased by Section 10 of these Conditions. (c) "Date of Policy": The date designated as "Date of Policy" in Schedule A. (d) "Entity": A corporation, partnership,trust, limited liability company, or other similar legal entity. (e) "Indebtedness": The obligation secured by the Insured Mortgage including one evidenced by electronic means authorized by law, and if that obligation is the payment of a debt, the Indebtedness is the sum of (i) the amount of the principal disbursed as of Date of Policy; (ii) the amount of the principal disbursed subsequent to Date of Policy; (iii) the construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the Land or related to the Land that the Insured was and continued to be obligated to advance at Date of Policy and at the date of the Advance; (iv) interest on the loan; (v) the prepayment premiums, exit fees, and other similar fees or penalties allowed by law; (vi) the expenses of foreclosure and any other costs of enforcement (vii) the amounts advanced to assure compliance with laws or to protect the lien or the priority of the lien of the Insured Mortgage before the acqui- sition of the estate or interest in the Title; (viii) the amounts to pay taxes and insurance; and (ix) the reasonable amounts expended to prevent deterioration of improve- ments; but the Indebtedness is reduced by the total of all payments and by any amount forgiven by an Insured. (f) "Insured": The Insured named in Schedule A. (i) The term "Insured" also includes (A) the owner of the Indebtedness and each successor in ownership of the Indebtedness, whether the owner or successor owns the Indebtedness for its own account or as a trustee or other fiduciary, except a successor who is an obligor under the provisions of Sec- tion 12(c) of these Conditions; (B) the person or Entity who has "control" of the'transfemblc record" if the Indebtedness is evidenced by a 'transferable record," as these terms arc defined by applicable electronic transactions law; (C) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (D) successors to an Insured by its conversion to another kind of En- tity; (E) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title (1) if the stock, shares, memberships, or other equity interests of the grantee arc wholly -owned by the named Insured (2) if the grantee wholly owns the named Insured, or (3) if the grantee is wholly -owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured we both whollyowncd by the same person or En- tity; (F) any government agency or instrumentality that is an insurer or guarantorundcraninimanceconnactorguaranty insuringorguar- antecing the Indebtedness secured by the Insured Mortgage, or any part of it, whether named as an Insured or not (ii) With regard to (A), (B), (C), (D) , and (E) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured, unless the successor acquired the In- debtedness as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, or other matter insured against by this policy. (g) "Insured Claimant": An Insured claiming loss or damage. (h) "Insured Mortgage": The Mortgage described in paragraph 4 of Schedule A. (i) "Knowledge" or "Known": Actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title. Q) "Land": The land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any prop- erty beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. 27-27416-10 6 of 8 ALTA Expanded Coverage Residential Loan %right American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the of use. All other uses are prohibited. Reprinted urcense from the American Land Title Association. (k) "Mortgage": Mortgage, deed of trust, trust or other security instm- ment, including one evidenced by electronic authorized by law. SI) q "Public Records": Records established under suite statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real Property to purchasers for value and without Knowledge. With respect to Covered Risk 5(d), "Public Records" shall also include environmental pro- tection liens filed in the records of the clerk of the United States District Court for the district where the Land is located. (b) (m) "Title": The estate or interest described in Schedule A. (n) "Unmarketable Title": Title af7ected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title or a prospective purchaser of the Insured Mortgage to be released from the obligation to purchase, lease, or lend if there is a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not con- tinue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in writing (i) in case of any litiga- tion as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured of any claim of title or interest that is adverse to the Title or the lien of the Insured Mortgage, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title or the lien of the Insured Mortgage, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. 4. PROOF OF LOSS In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant famish a signed proof of loss. The proof of loss must describe the de- fect, lien, encumbrance, or other matter insured against by this policy that consti- tutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 5. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleg- ing matters insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in Section 7 of these Conditions, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be neces- sary or desirable to establish the Title or the lien of the Insured Mortgage, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. (e) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction, and it expressly reserves the right, in its sole discretion, to appeal any adverse judgment or order. 6. DUTY OF INSURED CLAIMANT TO COOPERATE (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose. Whenever requested by the Com- pany, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (h) in any other lawful ac t in the opinion of the Company may be necessary or desirable to es the Title, the lien of the Insured Mortgage, or any other matter as insure the Company is prejudiced by the failure of the Insured to famish the required cooperation, the Company's obligations to the In- sured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. The Company may reasonably require the Insured Claimant to submit to ex- amination under oath by any authorized representative of the Company and to produce for examination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Com- pany, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e-mails, disks, tapes, and vid- eos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized repre- sentative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, in- spect, and copy all of these records in the custody or control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judg- ment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, pro- duce any reasonably requested information, or grant permission to secure reasonably necessary information from third parties as required in this sub- section, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following addi- tional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) To pay or tender payment of the Amount of Insurance under this policy together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (ii) To purchase the Indebtedness for the amount of the Indebtedness on the date of purchase, together with any costs, attomeys' tees, and ex- penses incurred by the Insured Claimant that were authorized by the Company up to the time of purchase and that the Company is obligated to pay. When the Company purchases the Indebtedness, the Insured shall trans- fer, assign, and convey to the Company the Indebtedness and the In- sured Mortgage, together with any collateral security. Upon the exercise by the Company of either of the options provided for in subsections (a)(i) or (ii), all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in those subsections, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (if to pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addi- tion, the Company will pay any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) to pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obli- gated to pay. Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, pros- ecute, or continue any litigation. 8. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the least of (i) the Amount of Insurance, (ii) the Indebtedness, 27-27416-10 7 of 8 ALTA Expanded Coverage Residential Loan Policy (07/26/10) Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. (iii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy, or (iv) if a government agency or instrumentality is the Insured Claimant, the amount it paid in the acquisition of the Title or the Insured Mortgage in satisfaction of its insurance contract or guaranty. If the Insured exercises a right provided 'in(b)(i), bvfhas Knowreage or any claim adverse to the Title or the lien of the Insured Mortgage in- sured against by this policy, the Company shall be required to pay only that part of any losses insured against by this policy that shall exceed the amount, if any, lost to the Company by reason of the impairment by the Insured Claimant of the Company's right of subrogation. (b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title or the lien of the Insured Mortgage, as insured. (i) the Amount of Insurance shall be increased by 10%, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In the event the Insured has acquired the Title in the manner described in Section 2 of these Conditions or has conveyed the Title, then the extent of liability of the Company shall continue as set forth in Section 8(a) of these Conditions. (d) In addition to the extent of liability under (a), (b), and (c), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. 9. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, or establishes the lien of the Insured Mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or dam- age until there has been a final determination by a court of competent juris- diction, and disposition of all appeals, adverse to the Title or to the lien of the Insured Mortgage, as insured. (c) The Company shall not be liable for loss or damage to the Insured for liabil- ity voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy, except payments made for costs, attorneys' fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment. However, any payments made prior to the acquisition of Title as provided in Section 2 of these Conditions shall not reduce the Amount of Insurance afforded under this policy except to the extent that the payments reduce the Indebtedness. (b) The voluntary satisfaction or release of the Insured Mortgage shall terminate all liability of the Company except as provided in Section 2 of these Condi- tions. 11. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in ac- cordance with these Conditions, the payment shall be made within 30 days. 12. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) The Company's Right to Recover Whenever the Company shall have settled and paid a claim under this pol icy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title or Insured Mortgage and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant shall ex- ecute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compro- mise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. I f a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Insured's Rights and Limitations (i) The owner of the Indebtedness may release or substitute the personal liability of any debtor or guarantor, extend or otherwise modify the terms of payment, release a portion of the Title from the lien of the Insured Mortgage, or release any collateral security for the Indebted- ness, if it does not affect the enforceability or priority of the lien of the Insured Mortgage. 27-27416-10 (c) The Company's Rights Against Noninsured Obligors The Company's right of subrogation includes the Insured's rights against non-insured obligors including the rights of the Insured to indemnities, guar- antees, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights. The Company's right of subrogation shall not be avoided by acquisition of the Insured Mortgage by an obligor (except an obligor described in Section 10)(i)(F) of these Conditions) who acquires the Insured Mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond, and the obli- gor will not be an Insured under this policy. 13. ARBITRATION Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbi- trable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Com- pany is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Title or lien of the Insured Mortgage or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Sched- ule A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the en- dorsement expressly states, it does not (i) modify any of the terms and provi- sions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 15. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 16. CHOICE OF LAW; FORUM (a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged there- for in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title in- surance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title or the lien of the Insured Mortgage that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Foram: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. 17. NOTICES, WHERE SENT Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at Fidelity National Title Insurance Company. Attn: Claims Department, P.O. Box 45023, Jacksonville, FL 32232-5023. 8 of 8 ALTA Expanded Coverage Residential C pPf,Iighl American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted unaWcense from the American Land Title Association. SIP - .. Akk FIDELITY NATIONAL TITLE INSURANCE COMPANY - 770-11�- oa7 POLICY NO.: CA992285-10-49065277-2011.27217-83809293 HOMEOWNER'S POLICY OF TITLE INSURANCE FOR A ONE -TO -FOUR FAMILY RESIDENCE Issued By Fidelity National Title Insurance Company OWNER'S INFORMATION SHEET Your Title Insurance Policy is a legal contract between You and Us. It applies only to a one -to -four family residence and only if each insured named in Schedule A is a Natural Person. If the Land described in Schedule A of the Policy is not an improved residential lot on which there is located a one -to -four family residence, or if each insured named in Schedule A is not a Natural Person, contact Us immediately. The Policy insures You against actual loss resulting from certain Covered Risks. These Covered Risks are listed beginning on page 3 of the Policy. The Policy is limited by: • Provisions of Schedule A • Exceptions in Schedule B • Our Duty To Defend Against Legal Actions On Page 4 • Exclusions on page 5 • Conditions on pages 5, and 7. You should keep the Policy even if You transfer Your Title to the Land. It may protect against claims made against You by someone else after You transfer Your Title. IF YOU WANT TO MAKE A CLAIM, SEE SECTION 3 UNDER CONDITIONS ON PAGE 5. The premium for this Policy is paid once. No additional premium is owed for the Policy. This sheet is not Your insurance Policy. It is only a brief outline of some of the important Policy features. The Policy explains in detail Your rights and obligations and Our rights and obligations. Since the Policy - and not this sheet - is the legal document, YOU SHOULD READ THE POLICY VERY CAREFULLY. If You have any questions about Your Policy, contact: Fidelity National Title Insurance Company P.O. Box 45023 Jacksonville, FL 32232-5023 THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 27217 (2/08) AL I A I Iomeowners Policy of Title Insurance (1/ U08) HOMEOWNER'S POLICY OF TITLE INSURANCE FOR A ONE -TO -FOUR FAMILY RESIDENCE Issued By Fidelity National Title Insurance Company TABLE OF CONTENTS PAGE OWNER'S COVERAGE STATEMENT COVERED RISKS OUR DUTY TO DEFEND AGAINST LEGAL ACTIONS EXCLUSIONS CONDITIONS 1. Definitions 2. Continuation of Coverage 3. How to Make a Claim 4. Our Choices When We Learn of a Claim 5. Handling a Claim or Legal Action 6. Limitation of Our Liability 7. Transfer of Your Rights to Us 8. This Policy is the Entire Contract 9. Increased Policy Amount 10.7 Severability 11. Arbitration 12. Choice of Law SCHEDULE A _ Insert Policy Number, [Premium], Date [and Time] and Amount Deductible Amounts and Maximum Dollar Limits of Liability Street Address of the Land 1. Name of Insured 2. Interest in Land Covered 3. Description of the Land SCHEDULE B -- EXCEPTIONS Insert 27217 (2/08) ALTA Homeowners Policy of Title Insurance (1/l/08) HOMEOWNER'S POLICY OF TITLE INSURANCE FOR A ONE -TO -FOUR FAMILY RESIDENCE Issued By Fidelity National Title Insurance Company As soon as You Know of anything that might be covered by this Policy, You must notify Us promptly in writing at the address shown in Section 3 of the Conditions. OWNER'S COVERAGE STATEMENT This Policy insures You against actual loss, including any costs, attorneys' fees and expenses provided under this Policy. The loss must result from one or more of the Covered Risks set forth below. This Policy covers only Land that is an improved residential lot on which there is located a one -to -four family residence and only when each insured named in Schedule A is a Natural Person. Your insurance is effective on the Policy Date. This Policy covers Your actual loss from any risk described under Covered Risks if the event creating the risk exists on the Policy Date or, to the extent expressly stated in Covered Risks, after the Policy Date. Your insurance is limited by all of the following: • The Policy Amount • For Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A • The Exceptions in Schedule B • Our Duty To Defend Against Legal Actions • The Exclusions on page 6 The Conditions on pages 6,_7 and 8. COVERED RISKS The Covered Risks are: 1. Someone else owns an interest in Your Title. 2. Someone else has rights affecting Your Title because of leases, contracts, or options. 3. Someone else claims to have rights affecting Your Title because of forgery or impersonation. 4. Someone else has an easement on the Land. 5. Someone else has a right to limit Your use of the Land. 6. Your Title is defective. Some of these defects are: a. Someone else's failure to have authorized a transfer or conveyance of your Title. b. Someone else's failure to create a valid document by electronic means. a A document upon which Your Tide is based is invalid because it was not properly signed, sealed, acknowledged, delivered or recorded. d. A document upon which Your Title is based was signed using a falsified, expired, or otherwise invalid power of attorney. e. A document upon which Your Title is based was not properly filed, recorded, or indexed in the Public Records. f. A defective judicial or administrative proceeding. 7. Any of Covered Risks I through 6 occuning after the Policy Date. 8. Someone else has a lien on Your Title, including a: a. lien of real estate taxes or assessments imposed on Your Title by a governmental authority that are due or payable, but unpaid; b. Mortgage; C. judgment, state or federal tax Tien; - d. charge by a homeowner's or condominium association; or e. lien, occurring before or after the Policy Date, for labor and material famished before the Policy Date. 9. Someone else has an encumbrance on Your Title. 10. Someone else claims to have rights affecting Your Title because of fraud, duress, incompetency or incapacity. 11. You do not have actual vehicular and pedestrian access to and from the Land, based upon a legal right. 12. You are forced to correct or remove an existing violation of any covenant, condition or restriction affecting the Land, even if the covenant, condition or restriction is excepted in Schedule B. However, You are not covered for any violation that relates to: a. any obligation to perform maintenance or repair on the Land; or b. environmental protection of any kind, including hazardous or toxic conditions or substances unless there is a notice recorded in the Public Records, describing any part of the Land, claiming a violation exists. Our liability for this Covered Risk is limited to the extent of the violation stated in that notice. 13. Your Title is lost or taken because of a violation of any covenant, condition or restriction, which occurred before You acquired Your Title, even if the covenant, condition or restriction is excepted in Schedule B. 14, The violation or enforcement of those portions of any law or government regulation concerning: a, building; b. zoning; C. land use; d. improvements on the Land; 27217 (2/08) ALTA Homeowner's Policy of Title Instuance(1/i/08) e. land division; or f. environmental protection, if there is a notice recorded in the Public Records, describing any part of the Land, claiming a violation exists or declaring the intention to enforce the law or regulation. Our liability for this Covered Risk is limited to the extent of the violation or enforcement stated in that notice. 15. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 14 if there is a notice recorded in the Public Records, describing any part of the Land, of the enforcement action or intention to bring an enforcement action. Our liability for this Covered Risk is limited to the extent of the enforcement action stated in that notice. W Because of an existing violation of a subdivision law or regulation affecting the Land: a. You are unable to obtain a building permit; b. You are required to correct or remove the violation; or C. someone else has a legal right to, and does, refuse to perform a contract to purchase the Land, lease it or make a Mortgage loan on it. The amount of Your insurance for this Covered Risk is subject to Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. 17. You lose Your Title to any part of the Land because of the right to take the Land by condemning it, if. a. there is a notice of the exercise of the right recorded in the Public Records and the notice describes any part of the Land; or b. the taking happened before the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 18. You are forced to remove or remedy Your existing structures, or any part of them - other than boundary walls or fences - because any portion was built without obtaining a building permit from the proper government office. The amount of Your insurance for this Covered Risk is subject to Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. 19. You are forced to remove or remedy Your existing structures, or any part of them, because they violate an existing zoning law or zoning regulation. If You are required to remedy any portion of Your existing structures, the amount of Your insurance for this Covered Risk is subject to Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A, 20. You cannot use the Land because use as a single-family residence violates an existing zoning law or zoning regulation. 21. You are forced to remove Your existing structures because they encroach onto Your neighbor's land. If the encroaching structures are boundary walls or fences, the amount of Your insurance for this Covered Risk is subject in Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. 22, Someone else has a legal right to, and does, refuse to perform a contract to purchase the Land, lease it or make a Mortgage loan on it because Your neighbor's existing structures encroach onto the Land. 23. You are forced to remove Your existing structures which encroach onto an easement or over a building set -back line, even if the easement or building set -back line is excepted in Schedule B. 24. Your existing structures are damaged because of the exercise of a right to maintain or use any easement affecting the Land, even if the easement is excepted in Schedule B. 25. Your existing improvements (or a replacement or modification made to them after the Policy Date), including lawns, shrubbery or trees, are damaged because of the future exercise of a right to use the surface of the Land for the extraction or development of minerals, waterer any other substance, even if those rights are excepted or reserved from the description of the Land or excepted in Schedule B. 26. Someone else tries to enforce a discriminatory covenant, condition or restriction that they claim affects Your Title which is based upon race, color, religion, sex, handicap, familial status, or national origin. 27. A taxing authority assesses supplemental real estate taxes not previously assessed against the Land for any period before the Policy Date because of construction or a change of ownership or use that occurred before the Policy Date. 28, Your neighbor builds any structures after the Policy Date- other than boundary walls or fences - which encroach onto the Land. 29. Your Title is unmarketable, which allows someone else to refuse to perform a contract to purchase the Land, lease it or make a Mortgage loan on it. 30. Someone else owns an interest in Your Title because a court order invalidates a prior transfer of the title under federal bankruptcy, state insolvency, or similar creditors' rights laws. 3 L The residence with the address shown in Schedule A is not located on the Land at the Policy Date. 32. The map, if any, attached to this Policy does not show the correct location of the Land according to the Public Records. OUR DUTY TO DEFEND AGAINST LEGAL ACTIONS We will defend Your Title in any legal action only as to that part of the action which is based on a Covered Risk and which is not excepted or excluded from coverage in this Policy. We will pay the costs, attorneys' fees, and expenses We incur in that defense. We will not pay for any part of the legal action which is not based on a Covered Risk or which is excepted or excluded from coverage in this Policy. We can end Our duty to defend Your Title under Section 4 of the Conditions. THIS POLICY IS NOT COMPLETE WITHOUT SCHEDULES A AND B. IN WITNESS ffWER Fidehry Jarronal Title Instuance Company has caused this policy to be signed and sealed by ils duly aulhodsed officers. .7 i�r Fidelity National ride Insurance Company By: 1 rr / CA992285 49065277 SEAL Fidelity National Title Company Arrrsr 7595 Irvine Center Dr Ste 250 Irvine, CA 92618 '1 Secreun Tel: (949) 788-2800 Fax: (949) 334-0251 27217 (2/09) ALTA Homeowner's Policy of Title Insurance (1/l/08) HOMEOWNER'S POLICY OF TITLE INSURANCE FOR A ONE -TO -FOUR FAMILY RESIDENCE Issued By Fidelity National Title Insurance Company EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: I. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a. building; b. zoning; C. land use; d. improvements on the Land; c. land division; and f environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. CONDITIONS 1. DEFINITIONS a. Easement - the right of someone else to use the Land for a special purpose. b. Known - things about which You have actual knowledge. The words "Know' and "Knowing" have the same meaning as Known. C. Land - the land or condominium unit described in paragraph 3 of Schedule A and any improvements on the Land which are real property. d. Morteage - a mortgage, deal of trust, trust deed or other security instrument. c. Natural Person - a human being, not a commercial or legal organization or entity. Natural Person includes a trustee of a Trust even if the trustee is not a human being. f Policy Date - the date and time shown in Schedule A. If the insured named in Schedule A first acquires the interest shown in Schedule A by an instrument recorded in the Public Records later than the date and time shown in Schedule A, the Policy Date is the date and time the instrument is recorded. g. Public Records - records that give constructive notice of matters affecting Your Title, according to the state statutes where the Land is located. h. Title - the ownership of Your interest in the Land, as shown in Schedule A. i. Trust - a living trust established by a human being for estate planning. j. We/Our/Us -Fidelity National Title Insurance Company. k. You/Your - the insured named in Schedule A and also those identified in Section 2.b. of these Conditions. 2. CONTINUATION OF COVERAGE a. This Policy insures You forever, even after You no longer have Your Title. You cannot assign this Policy to anyone else. b. This Policy also insures: (1) anyone who inherits Your Title because of Your death; (2) Your spouse who receives Your Title because of dissolution of Your marriage; (3) the trustee or successor trustee of a Trust to whom You transfer Your Title after the Policy Dale; or (4) the beneficiaries of Your Trust upon Your death. C. We may assert against the insureds identified in Section 2.b. any rights and defenses that We have against any previous insured under this Policy. 3. HOW TO MAKE A CLAIM a. Prompt Notice Of Your Claim (1) As soon as You Know of anything that might be covered by this Policy, You must notify Us promptly in writing. (2) Send Your notice to Fidelity National Title Insurance Company, Attention: Claims Department, P.O. Box 45023, Jacksonville, FL 32232-5023. Please include the Policy number shown in Schedule A, and the county and state where the Land is located. Please enclose a copy of Your policy, if available. 27217 (2/08) ALTA Homeowner's Policy of Title Insurance (1/1108) (3) If You do not give Us prompt notice, Your coverage will be reduced or ended, but only to the extent Your failure affects Our ability to resolve the claim or defend You. b. Proof Of Your Loss (1) We may require You to give Us a written statement signed by You describing Your loss which includes: (a) the basis of Your claim; (b) the Covered Risks which resulted in Your loss; (c) the dollar amount of Your loss; and (d) the method You used to compute the amount of Your loss. (2) We may require Youtomake available to Us records, checks, letters, contracts, insurance policies and other papers which relate to Your claim. We may make copies of these papers. (3) We may require You to answer questions about Your claim under oath. (4) If you fail or refuse to give Us a statement of loss, answer Our questions under oath, or make available to Us the papers We request, Your coverage will be reduced or ended, but only to the extent Your failure or refusal affects Our ability to resolve the claim or defend You. 4. OUR CHOICES WHEN WE LEARN OF A CLAIM a. After We receive Your notice, or otherwise learn, of a claim that is covered by this Policy, Our choices include one or more of the following: (1) Pay the claim; (2) Negotiate a settlement; (3) Bring or defend a legal action related to the claim; (4) Pay You the amount required by this Policy; (5) End the coverage of this Policy for the claim by paying You Your actual loss resulting from the Covered Risk, and those costs, attorneys' fees and expenses incurred up to that time which We are obligated to pay; (6) End the coverage described in Covered Risk 16, 18, 19 or 21 by paying You the amount of Your insurance then in force for the particular Covered Risk, and those costs, attorneys' fees and expenses incurred up to that time which We are obligated to pay; (7) End all coverage of this Policy by paying You the Policy Amount then in force, and those costs, attorneys' fees and expenses incurred up to that time which We are obligated to pay; (8) Take other appropriate action. b. When We choose the options in Sections 4.a. (5), (6) or (7), all Our obligations for the claim end, including Our obligation to defend, or continue to defend, any legal action. C. Even if We do not think that the Policy covers the claim, We may choose one or more of the options above. By doing so, We do not give up any rights. 5. HANDLING A CLAIM OR LEGAL ACTION a. You must cooperate with Us in handling any claim or legal action and give Us all relevant information. b. If You fail or refuse to cooperate with Us, Your coverage will be reduced or ended, but only to the extent Your failure or refusal affects Our ability to resolve the claim or defend You. C. We are required to repay You only for those settlement costs, attorneys' fees and expenses that We approve in advance. d. We have the right to choose the attorney when We bring or defend a legal action on Your behalf. We can appeal any decision to the highest level. We do not have to pay Your claim until the legal action is finally decided. e. Whether or not We agree there is coverage, We can bring or defend a legal action, or take other appropriate action under this Policy. By doing so, We do not give up any rights. 6. LIMITATION OF OUR LIABILITY a. After subtracting Your Deductible Amount if it applies, We will pay no more than the least of: (1) Youractinlloss; (2) Our Maximum Dollar Limit of Liability then in force for the particular Covered Risk, for claims covered only under Covered Risk 16, 18, 19 or 21; or (3) the Policy Amount then in force. and any costs, attorneys' fees and expenses that We are obligated to pay under this Policy. b. If We pursue Our rights under Sections 4.a.(3) and 5.e. of these Conditions and are unsuccessful in establishing the Title, as insured: (1) the Policy Amount then in force will be increased by 10%of the Policy Amount shown in Schedule A, and (2) You shall have the right to have the actual loss determined on either the date the claim was made by You or the date it is settled and paid. c. (1) If We remove the cause of the claim with reasonable diligence after receiving notice of it, all Our obligations for the claim end, including any obligation for loss You had while We were removing the cause of the claim. (2) Regardless of 6.c.(I) above, if You cannot use the Land because of a claim covered by this Policy: (a) You may rent a reasonably equivalent substitute residence and We will repay You for the actual rent You pay, until the earlier of. (i) the cause of the claim is removed; or (n) We pay You the amount required by this Policy. If Your claim is covered only under Covered Risk 16, 18, 19 or 21, that payment is the amount of Your insurance then in force for the particular Covered Risk. (b) We will pay reasonable costs You pay to relocate any personal property You have the right to remove from the Land, including transportation of that personal property for up to twenty-five (25) miles from the Land, and repair of any damage to that personal property because of the relocation. The amount We will pay You under this paragraph is limited to the value of the personal property before You relocate it. d. All payments We make under this Policy reduce the Policy Amount then in force except for costs, attorneys' fees and expenses. All payments We make for claims which are covered only under Covered Risk 16, 18, 19 or 21 also reduce Our Maximum Dollar Limit of Liability for the particular Covered Risk, except for costs, attorneys' fees and expenses. e. If We issue, or have issued, a Policy to the owner of a Mortgage that is on Your Title and We have not given You any coverage against the Mortgage, then: 27217 (2/08) ALTA flomeowner's Policy of Title Insurance U/1/08) (1) We have the right to pay any amount due You under this Policy to the owner of the Mortgage, and any amount paid shall be treated as a payment to You under this Policy, including under Section 4.a. of these Conditions; (2) Any amount paid to the owner of the Mortgage shall be subtracted from the Policy Amount then in force; and (3) If Your claim is covered only under Covered Risk 16, 18, 19 or 21, any amount paid to the owner of the Mortgage shall also be subtracted from Our Maximum Dollar Limit of Liability for the particular Covered Risk. f. If You do anything to affect any right of recovery You may have against someone else, We can subtract from Our liability the amount by which You reduced the value of that right. 7. TRANSFER OF YOUR RIGHTS TO US a. When We settle Your claim, We have all the rights and remedies You have against any person or property related to the claim. You must not do anything to affect these rights and remedies. When We ask, You must execute documents to evidence the transfer to Us of these rights and remedies. You must let Us use Your name in enforcing these rights and remedies. , b. We will not be liable to You if We do not pursue these rights and remedies or if We do not recover any amount that might be recoverable. C. We will pay any money We collect from enforcing these rights and remedies in the following order. (1) to Us for the costs, attorneys' fees and expenses We paid to enforce these rights and remedies; (2) to You for Your loss that You have not already collected; (3) to Us for any money We paid out under this Policy on account of Your claim; and (4) to You whatever is left. d. If You have rights and remedies under contracts (such as indemnities, guaranties, bonds or other policies of insurance) to recover all or part of Your loss, then We have all of those rights and remedies, even if those contracts provide that those obligated have all of Your rights and remedies under this Policy. - 8. THIS POLICY IS THE ENTIRE CONTRACT This Policy, with any endorsements, is the entire contract between You and Us. To determine the meaning of any part of this Policy, You must read the entire Policy and any endorsements. Any changes to this Policy must be agreed to in writing by Us. Any claim You make against Us must be made under this Policy and is subject to its terms. 9. INCREASED POLICY AMOUNT The Policy Amount then in force will increase by ten percent (10%) of the Policy Amount shown in Schedule A each year for the first five years following the Policy Date shown in Schedule A, up to one hundred fifty percent (150%) of the Policy Amount shown in Schedule A. The increase each year will happen on the anniversary of the Policy Date shown in Schedule A. 10. SEVERABILITY If any part of this Policy is held to be legally unenforceable, both You and We can still enforce the rest of this Policy. 11. ARBITRATION a. If permitted in the state where the Land is located, You or We may demand arbitration. b. The law used in the arbitration is the law of the state where the Land is located. c. The arbitration shall be under the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). You can get a copy of the Rules from Us. d. Except as provided in the Rules, You cannotjoin or consolidate Your claim or controversy with claims or controversies of other persons. e. The arbitration shall be binding on both You and Us. The arbitration shall decide any matter in dispute between You and Us. f. The arbitration award may be entered as a judgment in the proper court. 12. CHOICE OF LAW The law of the state where the Land is located shall apply to this policy. 27217 (2/08) ALTA Homeowner's Policy of Title Insurance (1/1/08) SCHEDULE A Our name and address is: Fidelity National Title Insurance Company, 1920 Main Street Suite 1200, Irvine, CA 92614 File Number: 49065277 Policy No.: Premium: $ 1,201.00 Policy Amount: Date of Policy: May 27, 2011 and Time: 08:00 a.m. Deductible Amounts and Maximum Dollar Limits of Liability For Covered Risk 16, 18, 19 and 21: Your Deductible Amount Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $ 2,500.00 (Whichever is less) Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $ 5,000.00 (Whichever is less) Covered Risk 19: 1.00% of Policy Amount Shown in Schedule or $ 5,000.00 (Whichever is less) Covered Risk 21 : 1.00% of Policy Amount Shown in Schedule A or $ 2,500.00 (Whichever is less) Street Address of the Land: 78180 Avenida La Fonda, La Quinta, California 1 K 3. Name of insured: 27217-83809293 $ 335,000.00 Our Maximum Dollar Limit of Liability The City of La Quinta, a California Municipal Corporation and Charter City Your interest in the Land covered by this Policy is: A Fee The Land referred to in this Policy is described as: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 1 $ 10,000.00 $ 25,000.00 $ 25,000.00 $ 5,000.00 ALTA Homeowner's Policy of Title Insurance (1/1/08) Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. 0 Policy No.: 27217-83809293 File No.: 49065277 EXHIBIT "ONE" Lot 76, Unit #4 of Desert Club Tract, in the City of La Quinta, County of Riverside, State of California, as per map recorded in Book 21 page 60 of Maps, in the office of the County Recorder of said county. /SK Assessor's Parcel No: 770-124-007 ALTA Homeowner's Policy of Title Insurance (1/1/08) Copyright American Land Title Association. All rights resented. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. ern_alAn on Policy No.: 27217-83809293 File No.: 49065277 6Y�i:1�111�� 3 EXCEPTIONS In addition to the Exclusions, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1 E 3 4. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2011-2012. An assessment by the improvement district shown below Assessment (or Bond) No: Series: Ad 00-1 District: La Quinta For: Infrastructur Swr Bond issued: June 30, 2000 Said assessment is collected with the county/city property taxes. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. Easement(s) for the purposes(s) shown below and rights incidental thereto as delineated or as offered for dedication, on the map of said tract. Purpose: Public utilities and incidental purposes Affects: The Northerly 5 feet END OF SCHEDULE B 3 ALTA Homeowner's Policy of Title Insurance 0/1/08) Copyright American land Title Association. All rights reserved. The use of this Fonn is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. AMrsi u.v n I.. '. ,y ,A a N , S IMPORTAN I I his plat is not a survey. it is merely furnished as a convenience to locate the land in relation toadjoining surects and other lands, and not to guarantee dimensions, distances, hearings or acreage _: _770- e Page !w Created By: CIFIDNA3610 a _, +m e If you want ininrmation about coverage or need assistance to resolve 770 -17-� - 00q please call 1-800-729-1902. If you make a claim under your policy, you POLICY OF TITLE INSURANCE ISSUED BY title guaranty company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, STEWART TITLE GUARANTY COMPANY, a Texas corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land; and in addition, as to an insured lender only: 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being shown in Schedule B in the order of its priority; 7. The invalidity or unenforceability of any assignment of the insured mortgage provided the assignment is shown in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured mortgage in the named insured assignee free and dear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. Signed under seal for the Company, but this Policy is to be valid only when it bears an authorized countersignature. Countersigned by; j /A/`�// I--.tttle guar Authorized Signature Equity Title Company Company Santa Ana, CA r Senn of the Boarl Serial Number 0-2228-000400571 Chairman of the Bill President Standard Coverage Policy 1990 File Number OR1151377 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (it) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the Insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (it) attaching or created subsequent to Date of Policy; or (a) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest Insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in Lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. The term "insured" also includes (i) the owner of the indebtedness secured by the insured mortgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, lien, encumbrance, adverse claim or other matter insured against by this policy as affecting title to the estate or interest in the land); (ii) any governmental agency or governmental instrumentality which is an insurer or guarantor under an Insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereof, whether named as an insured herein or not; (iii) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant": an insured claiming loss or damage. (c) "insured lender": the owner of an insured mortgage. (d) "insured mortgage": a mortgage shown in Schedule B, the owner of which is named as an insured in Schedule A. (a) "knowledge" or "known": actual know"e, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (f) land": the land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (g) "mortgage": mortgage, deed of trust, trust deed, or other security instrument (h) "public records": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (i) "unmarketability of the title": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE. (a) After Acquisition of Title by Insured Lender. If this policy insures the owner of the indebtedness secured by the insured mortgage, the coverage of this policy shall continue in force as of Date of Policy in favor of (i) such Insured lender who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other legal manner which discharges the lien of the insured mortgage; (ii) a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly -owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds; and (iii) any governmental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the Insured mortgage. (b) After Conveyance of Title by an Insured. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty r rm.ewt made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from an insured of either (i) an estate or interest in the land, or (it) an indebtedness secured by a purchase money mortgage given to an insured. (a) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance by an insured lender shall in neither event exceed the least of: (i) The amount of insurance stated in Schedule A: (ii) The amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of all payments made; or (iii) The amount paid by any governmental agency or governmental instrumentality, if the agency or the instrumentality is the insured claimant, in the acquisition of the estate or interest in satisfaction of its insurance contract or guaranty. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. An insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in 4(a) below, (ii) in can knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the fitie to the estate or interest or the lien of the insured mortgage, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to that insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no use prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by an insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of such insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of such insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by an insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to an insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, an insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at as option, the name of such Insured for this purpose. Whenever requested by the Company, an insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful ad which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured. If the Company is prejudiced by the failure of an insured to furnish the required cooperation, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 6. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and swam to by each insured claimant shall be fumished to the Company within 90 days after the insured claimant shall ascertain the fads giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of an insured claimant to provide the required proof of loss or damage, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, an insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, comespondence and memoranda, whether bearing a date before or after Dale of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by an insured claimant provided to the Company pursuant to this Section shall not be disclosed to other unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of an insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that Insured for that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY, In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) to pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay; or (Ii) In case loss or damage Is claimed under this policy by the owner of the indebtedness secured by the insured mortgage, to purchase the indebtedness secured by the insured mortgage for the amount owing thereon together with any costs, attorneysfees and expenses incurred by the insured claimant which were authorized by the Company up to the time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign, and 7 tie Suer` er,ty w ft convey the indebtedness and the insured mortgage, together with any collateral security, to the Company upon payment therefor. Upon the exercise by the Company of the option provided for in paragraph a(i), all liability and obligations to the insured under this policy, other than to make the payment required in that paragraph, shall terminate, including any liability or obligation to defend, prosecute, or continue any ligation, and the policy shall be surrendered to the Company for cancellation. Upon the exercise by the Company of the option provided for in paragraph a(ii) the Company's obligation to an insured lender under this policy for the claimed loss or damage, other than the payment required to be made, shall terminate, including any liability or obligation to defend, prosecute or contnue anylttigation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or b(d), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. 7. DETERMINATION AND EXTENT OF LIABILITY. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy to an insured lender shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A, or, if applicable, the amount of insurance as defined in Section 2(c) of these Conditions and Stipulations; (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the time the loss or damage insured against by this policy occurs, together with interest thereon; or (iii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the insured lender has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title, then the liability of the Company shall continue as set forth in Section 7(a) of these Conditions and Stipulations. (c) The liability of the Company under this policy to an insured owner of the estate or interest in the land described in Schedule A shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, III) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (d) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. LIMITATION OF LIABILITY. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarkelability of title, or otherwise establishes the lien of the insured mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage unfit mere has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, or, it applicable, to the lien of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. (d) The Company shall not be liable to an insured lender for: (i) any indebtedness created subsequent to Dale of Policy except for advances made to protect the lien of the Insured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements; or (ii) construction loan advances made subsequent to Date of Policy, except construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and after Date of Policy. 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. (a) All payments under this policy, except payments made for costs, attorneys' tees and expenses, shall reduce the amount of insurance pro tanto. However, as to an insured lender, any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of insurance afforded under this policy as to any such Insured, except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness, or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage, to the extent of the payment, satisfaction or release, shall reduce the amount of insurance pro tanto. The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby, with interest thereon, provided in no event shall the amount of insurance be greater than the Amount of Insurance slated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company to an insured lender except as provided in Section 2(a) of these Conditions and Stipulations. 10. LIABILITY NONCUMULATIVE. It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. The provisions of this Section shall not apply to an insured lender, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage. 11. PAYMENT OF LOSS. (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation. �stwg`'LC.wa L Menever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated (i) as to an insured owner, to all rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss; and (ii) as to an insured lender, to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal, interest, and costs of collection. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Insured's Rights and Limitations. Notwithstanding the foregoing, the owner of the indebtedness secured by an insured mortgage, provided the priority of the lien of the insured mortgage or its enforceability is not affected, may release or substitute the personal liability of any debtor of guarantor, or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the insured mortgage, or release any collateral security for the indebtedness. When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of an insured mortgage, as insured, the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by mason of the impairment by the insured claimant of the Company's right of subrogation. (c) The Company's Rights against Non -Insured Obligors. The Company's right of subrogation against noninsured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of an insured mortgage by an obligor (except an obligor described in Section 1(a)(ii) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section 1(a)(i) of these Conditions and Stipulations. 13. ARBITRATION. Uniess prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Tittle Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land Is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the sftus of the land shall apply to arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. LIABILITY LILITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 16. NOTICES, WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at P.O. Box 2029, Houston, Texas 77252-2029, and identify this policy by its printed policy serial number which appears on the bottom of the front of the first page of this policy. F--s eu•�LIvive L ORDER NO.: OR1151377 SCHEDULE A POLICY NO.: 2228-000400571 AMOUNT OF INSURANCE: $402,500.00 ORDER NO.: OR7151377 PREMIUM: $1.195.00 DATE OF POLICY: JUNE 24, 2011 AT 3:57 PM NAME OF INSURED: CITY OF LA QUINTA, A CALIFORNIA MUNICIPAL CORPORATION AND CHARTER CITY 2. TITLE TO THE ESTATE OR INTEREST IN THE LAND IS VESTED IN: CITY OF LA QUINTA, A CALIFORNIA MUNICIPAL CORPORATION AND CHARTER CITY 3. THE ESTATE OR INTEREST IN THE LAND WHICH IS COVERED BY THIS POLICY IS: A FEE THIS POLICY IS VALID ONLY IF SCHEDULE B IS ATTACHED. CLTA Standard Coverage Policy ORDER NO.: OR1151377 SCHEDULE A (CONTINUED) THE LAND REFERRED TO IN THIS POLICY IS SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 71 OF DESERT CLUB TRACT UNIT NO.4, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 21, PAGE 60 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. "'END OF LEGAL DESCRIPTION' CLTA Standard Coverage Policy ORDER NO.: OR1151377 SCHEDULE B THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEY'S FEES OR EXPENSES) WHICH ARISE BY REASON OF: W, 311] 1. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS. 2. ANY FACTS, RIGHTS, INTERESTS OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR WHICH MAY BE ASSERTED BY PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4. DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS. CLTA Standard Coverage Policy ORDER NO.: OR1151377 SCHEDULE B PART I I A. GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 2011-2012, ALIEN NOT YET DUE OR PAYABLE. B. THE LIEN OF SUPPLEMENTAL TAXES ASSESSED PURSUANT TO CHAPTER 3.5 COMMENCING WITH SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE. C. AN ASSESSMENT (1915 ACT) IN THE ORIGINAL AMOUNT OF $(NONE SHOWN), FILED IN THE OFFICE OF THE TREASURER OF CITY OF LA QUINTA, COUNTY OF RIVERSIDE. NO.: 227 SERIES: 2000-1 ISSUED: FEBRUARY 28, 2000 FOR: SEWERS (PHASE V1 IMP) / SEWERS THIS BOND IS COLLECTED WITH THE PROPERTY TAXES. WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS. 2. ANY VESTED AND ACCRUED WATER RIGHTS FOR MINING, AGRICULTURAL, MANUFACTURING, OR OTHER PURPOSES AND RIGHTS TO DITCHES AND RESERVOIR USED IN CONNECTION WITH SUCH WATER RIGHTS, AS MAY BE RECOGNIZED AND ACKNOWLEDGED BY THE LOCAL CUSTOMS, LAWS AND DECISIONS OF COURTS, AND THE RESERVATION FROM THE LANDS THEREBY GRANTED OF A RIGHT OF WAY THEREON FOR DITCHES OR CANALS CONSTRUCTED BY THE AUTHORITY OF THE UNITED STATES AS CONTAINED IN THE PATENT FROM UNITED STATES OF AMERICA TO ALBERT P. GREEN AND RECORDED MAY 29, 1914 IN BOOK 6, PAGE 308 OF PATENTS. 3. AN EASEMENT AS SHOWN ON THE MAP OF SAID TRACT. FOR: PUBLIC UTILITIES AND INCIDENTAL PURPOSES. AFFECTS: THE SOUTHERLY 5 FEET OF SAID LAND 4. COVENANTS, CONDITIONS AND RESTRICTIONS, WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY FIRST MORTGAGE OR DEED OF TRUST MADE IN GOOD FAITH AND FOR VALUE, BUT DELETING ANY COVENANT, CONDITION OR RESTRICTION INDICATING A PREFERENCE, LIMITATION OR DISCRIMINATION BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS, NATIONAL ORIGIN, SEXUAL ORIENTATION, MARITAL STATUS, ANCESTRY, SOURCE OF INCOME OR DISABILITY, TO THE EXTENT SUCH COVENANTS, CONDITIONS OR RESTRICTIONS VIOLATE TITLE 42, SECTION 3604(C), OF THE UNITED STATES CODES OR SECTION 12955 OF THE CALIFORNIA GOVERNMENT CODE. LAWFUL RESTRICTIONS UNDER STATE AND FEDERAL LAW ON THE AGE OF OCCUPANTS IN SENIOR HOUSING OR HOUSING FOR OLDER PERSONS SHALL NOT BE CONSTRUED AS RESTRICTIONS BASED ON FAMILIAL STATUS. RECORDED: DECEMBER 9, 1948 AS INSTRUMENT NO. 1164 AND IN BOOK 1033, PAGE 546, OFFICIAL RECORDS 5. THE TERMS AND PROVISIONS CONTAINED IN THE DOCUMENT ENTITLED "RESOLUTION OF THE BOARD OF DIRECTORS OF COACHELLA VALLEY WATER DISTRICT RESOLUTION NO.2003-49" RECORDED MAY 6, 2003 AS INSTRUMENT NO.2003-597460, OFFICIAL RECORDS CLTA Standard Coverage Policy 101V 07:1:a1! 1011111115413i& m 6. RIGHTS OF PARTIES IN POSSESSION OF SAID LAND BY REASON OF ANY UNRECORDED LEASES. PLEASE SUBMIT ANY SUCH LEASES TO THIS COMPANY FOR OUR EXAMINATION. P4,11 AUTHORIZED SIGN ORY CLTA Standard Coverage Policy