2005 - 31202-2 La Quinta Quail Run, LLC Assignment & Assumption & Amendment to SIA - from Desert Cheyenne, Inc.TWY,, 4 ZoP 12u&A-4
COUNCIL/RDA MEETING DATE: August 1, 2006
ITEM TITLE: Adoption of a Resolution to Extend the
Time for Completion of On Site Improvements for a
Period of One -Year for Tract Map No. 31202-2, Quail
Run, Ehline Builders and Developers
RECOMMENDATION:
AGENDA CATEGORY: C16
BUSINESS SESSION:
CONSENT CALENDAR: L
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the City Council to extend the time for completion of On -Site
Improvements as specified in the approved Subdivision Improvement Agreement (SIA)
for a period of one year to July 20, 2007 for Tract Map No. 31202-2, Quail Run,
Ehline Builders and Developers.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Quail Run (Tract Map No. 31202-2), is located south of Avenue 52, east of Madison
Street, and west of Monroe Street (Attachment 1).
On April 19, 2004, the City Council approved Tentative Tract Map No. 31202-2.
On July 20, 2004, the City Council adopted a resolution granting conditional approval
of the Final Map and SIA for Centre Pointe. Section 6 of the SIA requires "that the
subdivision improvements shall be complete within twelve months after the approval
of the SIA. Failure by Subdivider to begin or complete construction of the
Improvements within the specified time periods shall constitute cause for City, in its
sole discretion and when it deems necessary, to declare Subdivider in default of this
SIA, to revise improvement security requirements as necessary to ensure completion of
11n
the improvements, and/or to require modifications in the standards or sequencing of
the Improvements in response to changes in standards or conditions affecting or
affected by the Improvements. "
In a letter dated May 22, 2006, the developer requested a time extension and provided
the City with an anticipated completion date of February 1, 2007 for the remainder of
the on -site improvements. Staff does not believe these improvements to be critical at
this time.
As a result, City staff has prepared the attached resolution which provides.for approval
of the extension of the SIA.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
1. Adopt a Resolution of the City Council to extend the time for completion of on -
site improvements as specified in the approved Subdivision Improvement
Agreement for a period of one year to February 1, 2007 from the original date
SIA was approved for Tract Map No. 31202-2, Quail Run, Ehline Builders and
Developers; or
2. Do not adopt a Resolution of the City Council to extend the time for completion
of on -site improvements time as specified in the approved Subdivision
Improvement Agreement for a period of one year to February 1, 2007 from the
original date the SIA was approved Tract Map No. 31202-2, Quail Run, Ehline
Builders and Developers; or
3. Provide staff with alternative direction.
Respectfully submitted,
1 �.1:vVrci v
_34rmothy ona on, P.E.
Public Works Director/City Engineer
Approved for submission by:
Thomas P. Genovese, City Manager
Attachment: 1. Vicinity Map ,
RESOLUTION NO. 2006-(Clerk's Office will enter)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LA QUINTA, CALIFORNIA, GRANTING AN
EXTENSION OF TIME FOR THE COMPLETION OF ON -
SITE IMPROVEMENTS AS SPECIFIED IN THE
APPROVED SUBDIVISION IMPROVEMENT AGREEMENT
FOR A PERIOD OF ONE YEAR FOR TRACT MAP NO.
31202-2, QUAIL RUN, EHLINE BUILDERS AND
DEVELOPERS, INC.
WHEREAS, the City Council approved the Subdivision Improvement
Agreement (SIA) for Tract Map No. 31202-2, Quail Run, Ehline Builders and
Developers, Inc. on July 20, 2005; and
WHEREAS, Section 6. Completion of Improvements, of the approved SIA
requires that the Subdivider begin construction of the improvements within ninety
days and complete the construction within twelve months after the approval of the
Agreement; and
WHEREAS, failure by the Subdivider to complete construction of the
improvements by July 20, 2006, shall constitute cause for the City, in its sole
discretion and when it deems necessary, to declare the Subdivider in default of the
approved agreement; and
WHEREAS, Section 8. Time Extension, of the approved SIA allows for, at the
City Council's sole and absolute discretion, an extension of time for completion of
the improvements with additions or revisions to the terms and conditions of the
Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta, California, as follows:
Section 1. The time for the completion of improvements as required by the
approved SIA is extended for a period of one year.
Section 2. The time extension for completing the improvements shall expire
when City offices close for regular business on July 20, 2007. If the Subdivider
has not completed the improvements, the City, in its sole discretion and when
deems necessary, may declare the Subdivider in default of the Agreement.
Section 3. The provided security amount as required in the approved SIA is
satisfactory. No additional securities are required.
Section 4. All other terms, responsibilities and conditions as listed In thel 14
approved SIA shall remain in full force and effect.
Resolution No. 2006-
Tract Map No. 31202-2, Quail Run
Adopted: August 1, 2006
Page 2
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
City Council held on this 1st day of August 2006, by the following vote, to wit:
AYES:Council Members (Clerk's Office will enter)
NOES:
ABSENT:
ABSTAIN:
DON ADOLPH, Mayor
City of La Quinta, California
ATTEST:
DEBORAH H. POWELL, INTERIM CITY CLERK
City of La Quinta, California
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, City Attorney
City of La Quinta, California
Nosllc)vp
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ASSIGNMENT AND ASSUMPTION AGREEMENT
AND
AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 31202-2
This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO
SUBDIVISION IMPROVEMENT AGREEMENT ("Assignment & Amendment") is made
and entered into as of theq_ day of �20a5; by and among the CITY OF LA
QUINTA, a municipal corporation of the State of California ("City"), DESERT
CHEYENE, Inc, a California Corporation ("Assignor"), and LA QUINTA QUAIL RUN,
LLC, a California Limited Liability Company ("Assignee").
RECITALS
A. City and Assignor entered into that certain Subdivision. Improvement
Agreement, dated July 20, 2004 ("SIA"), pursuant to which Assignor, as the "Subdivider"
defined in the SIA, agreed to plan for, install, and construct certain public and/or private
improvements on Tract No. 31202-2 ("Tract"), as more fully described in Exhibit "A" of
the SIA ("Improvements").
B. Assignor desires to sell its interest in the Tract to Assignee. In conjunction
with such transfer, Assignor desires to assign the SIA, and all of Assignor's rights and
obligations thereunder, to Assignee and Assignee desires to assume Assignor's
position with respect to the SIA and of Assignor's rights and obligations under the SIA
subject to the terms of this Assignment & Amendment.
C. In connection with the foregoing described assignment and assumption,
the City and Assignee have agreed to certain modifications to the SIA as set forth
herein to be effective upon full execution of this Assignment & Amendment by all the
parties hereto.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and the
covenants and promises hereinafter contained, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:
1. Assignment and Assumption. Assignor hereby transfers and assigns to
Assignee all of the Assignor's rights, title, and interest in and to, and obligations under,
the SIA, and Assignee hereby assumes all rights, title, and interest in and to, and
obligations under, the SIA. City hereby consents to the foregoing assignment and
assumption.
F220
2. Replacement of Improvement
Security. Pursuant
has furnished the City security for the Improvements in the form of:
(a) A Faithful Performance Bond in the amount of $
following improvements: 1.
Drainage
2.
Street Improvements
3.
Domestic Water
4.
Sanitary Sewer
5.
Dry Utilities
6.
Monumentation
7.
10% Standard Contingency
8.
10% Professional Fees
9.
10% Construction Fees
10.
17% No Plans Contingency
to the SIA, Assignor
1,132,830.00 for the
(b) A Labor and Material Bond in the amount of $ 1,118,820.00 for the following
improvements: 1. Drainage
2.
Street Improvements
3.
Domestic Water
4.
Sanitary Sewer
5.
Dry Utilities
6.
10% Standard Contingency
7.
10% Professional Fees
8.
10% Construction Fees
9.
17% No Plans Contingency
For purposes of this Assignment & Assumption, such security in the aggregate shall be
hereinafter referred to as "Improvement Security." Assignee hereby warrants that within
five (5) days of this executed Assignment and Amendment, it shall replace Assignor's
Improvement Security with security of its own in an amount equal to the Improvement
Security, unless the City otherwise determines at its discretion and in writing that such
security can be issued at a lesser amount. Assignee's security shall be in full
compliance with the terms and conditions stated in the SIA for such security. The City
agrees that upon receipt of evidence that Assignee has obtained such new security in a
form satisfactory to the City, the City shall release the Original Subdivider's
Improvement Security.
3. Incorporation of SIA Provisions. The SIA, and each provision therein,
unless otherwise modified in writing, is incorporated in this Assignment & Amendment in
its entirety and Assignee agrees and warrants that it assumes and is bound by each
obligation found in the SIA in the same manner as Assignor prior to this assignment.
-2-
F220
IN WITNESS WHEREOF, the parties hereto have executed this Assignment &
Amendment one day of .7— 2Q2
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
(760) 777-7075
/J
Thomas P. Genovese
City Manager
l�YI
ATTEST:
u Greek
City Clerk
Date
ASSIGNOR: Mr. John Pedalino
Desert Cheyenne, Inc
78401 Highway 111; Ste G
La Quinta, CA 92253
Title: �'�� �'�'� Date
ASSIGNEE: Richard Ehline
La Quinta Quail Run, LLC
81480 National Drive
La Quinta, CA 92253
Title: �i "e
Date
-3-
F220
ALL PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA }
COUNTY OF RIVERSIDE )SS.
On January 4, 2005 before me, CYNTHIA ANN DIAZ, NOTARY PUBLIC personally
appeared RICHARD EHLINE, (or proved to me on the basis of satisfactory evidence) to
be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledge me that he/she/they executed the same in his/her/their authorized
capacity(ie , and that by his/her/the' gna re(s) on the instrument the person(s), or
the entit upon behalf of which the
rson(s) a ted, executed the instrument.
WI NE ci I sea. 4f
R1VERS1DE,0UPV'Ph +
�I�� `qY a�0� ,. �xp�r®� O�iDhcr afi 3Qt7a
Sig
(NOTARY SEAL)
ATTENTION NOJARY: Although the information requested below is OPTIONAL, it could
prevent fraudulent attachment of this certificate to another
document.
THIS CERTIFICATE MUST BE ATTACHED TO Title of Document Type ASGN & ASSUMPT. AGREEMNT
THE DOCUMENT DESCRIBED AT RIGHT. Number of Pages 3 Date of Document January 4, 2005
Signer(s) Other Than Named Above
DOCUMENT PROVIDED BY STEW ART TITLE OF CALIFORNIA, INC. NOTARYI.DOC
ALL PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA }
COUNTY OF Riverside )SS.
On January 4, 2005 before me, CYNTHIA ANN DIAZ, NOTARY PUBLIC personally)
appeared JOHN R. PEDALINO, personally known to me to be the person whose name'
is subscribed to within instrument and acknowledged to me that he executed the
same in his a on ed capacity, and that by his signature on the instrument the person,
or the entit upon ehalf of which the person acted;-axe�cuted the instrument.
WITLure
y tand I seal qY y
a
Sign
(NOTARY SEAL)
ATTENTION NOT1 : Although the information requested below is OPTIONAL, it could
V prevent fraudulent attachment of this certificate to another
document.
THIS CERTIFICATE MUST BE ATTACHED TO Title of Document Type ASGN & ASSUMPT. AGREEMNT
THE DOCUMENT DESCRIBED AT RIGHT. Number of Pages 3 Date of Document January 4, 2005
Signer(s) Other Than Named Above
DOCUMENT PROVIDED BY STEWART TITLE OF CALIFORNIA. INC. NOTARYI DOC
CITY OF LA QUINTA
AMENDED SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 31202-2
ON -SITE IMPROVEMENTS
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into th2iss
o�vl nd day of h -
DO by and between LA QUINTA QUAIL RUN, LLC. a CALIFORNIA LIMITED LIABILITY
COMPANY hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of
the State of California, hereinafter referred to as "City."
RECITALS:
A. Subdivider has prepared and filed a final map or Tract map (the "Map") of a unit of land in the City of
La Quinta, County of
the provisions sofa, which unit of s Section 66410, land is et sec.known of heas Tract No. Calffo nia Government n2-2 the r Code(the
pursuant
"Subdivision Map Act").
B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and
private improvements (the "Improvements").
C. The Improvements have not been installed and accepted at this time.
D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the
improvements as provided in Section 66462 of the Subdivision Map Act.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall
furnish original improvement plans meeting the requirements of the City Engineer.
2. Improve_ments• Subdivider shall construct the public and private street, drainage, utility, landscaping,
and other improvements required to be constructed or agreed to be constructed under this
Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards,
specifications, sequence, and scheduling of construction shall be as approved by the City Engineer.
Improvement Security.
A. One class of security to be provided by Subdivider, hereinafter referred to as "performance
security," shall assure the faithful performance of this Agreement including construction of the
Improvements, payment of Subdivider's fair share of Improvements which have been or will be
constructed by others ('Participatory Improvements"), and payment of plan check and permit
fees. A second class of security to be provided by Subdivider, hereinafter referred to as
"payment security," shall assure the payment of the cost of labor, equipment and materials
supplied to construct the Improvements. A third class of security to be provided by Subdivider,
hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the
Improvements for a period of one year following the completion and acceptance of the
Improvements. Subdivider shall furnish performance and payment security prior to and as a
condition of City Council approval of the Map. Subdivider shall provide warranty security after
Improvements are complete and accepted by the City Council and prior to or concurrently with
the final release of performance security. Warranty security shall not be required for
Monumentation or Participatory Improvements. However, the City may utilize Monumentation
Security for performance of or payment for the work in accordance with the Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty security, and in addition to the face amount of each such security, each such security
shall include and assure the payment of costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby
secured.
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1 of
B. Improvement security shall conform to Section 66499 of the California Government Code and one
or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government
Code, issued 'by a surety or sureties listed in the U.S. Department of Treasury Circular 570
(latest version).
3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or
better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange
(of the Los Angeles County Treasurer's office).
4) Irrevocable letters of credit, issued by one or more financial institutions meeting the
requirements of Paragraph (3), pledging that the funds necessary to carry out the completion
of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund
which is not subject to levy or attachment by any creditor of the depositor until released by
City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to
the letters of credit will be paid upon the written demand of City and that such written demand
need not present documentation of any type as a condition of payment, including proof
of
loss. The duration of any such letter of credit shall be for a period of not less than one year
from the execution of the agreement with which it is provided and shall state, on its face, that
the iration or unit s xty (60)will be adays automatically
City n receives until
letter of vesnotice from timethat
financial institution its
exp
intent to allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the
final map or Tract map for which the Improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the Improvements and shall include
the power of sale of the real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and appurtenances thereunto
belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and
profits thereof. The collateral value of the property shall be established at Subdivider's
expense through an appraisal approved by City.
or local
any
6) An agencyument of ofthe state, eddit erral, or local governom an agency of ment provides at least Twenty Percent (20%) of
ag y
the financing for the Improvements.
7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in
Section 16430 of the California Government Code, deposited, at City's option, with City or a
responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal One Hundred Percent (100%) of the estimated cost of
constructing the Improvements, including payment of plan check and permit fees, as estimated by
the City Engineer or a duly authorized representative of the City Engineer. The amount of
Payment security shall equal the amount of the amount of performance security, except as
searate security. Waranty security
otherwise set forth in Exhibit A, and rsamount all be furnof ished
as an epsecur security except as rotherw se set
shall equal Ten Percent (10%) of e
forth in Exhibit A.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to
the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract
map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid
separately for each different form and/or source (surety or financial institution) of security initially
submitted and for substitution of securities but shall not be required for submittal of warranty
T•�p_is t nevalooment Divislon\Development Projects\Agreements\31A\SIAS in Progress\Rancho Santana 31202.2 & Company\LQ Quail Run Switch\ONSITE SIA.doc
201
security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as follows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.8., which require the establishment of evidence of the reliability of the
surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars
($150.00).
2) For liens on real property as described in Paragraph 5) of SECTION 3.6., for which City will
prepare lien agreements and subordination agreements, administer valuation of the real
property and administer the agreements over the life of the lien, all of which require legal
assistance and financial advice, Subdivider shall pay to City an administration fee of One Half
of One Percent (0.5%) of the estimated cost of the improvements secured but not less than
Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory
Improvements shall remain in place until the Participatory Improvements are constructed and
actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost
of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of
Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty
security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in
replacement of security guaranteeing Participatory Improvements, If Subdivider fails to deposit
said cash within 30 days of the date of the written demand from City, City may present a written
demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City
the lesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or become wholly or partially invalid for any reason,
including non-payment of premiums, modifications of this Agreement and/or expiration of the time
for performance stated in this Agreement, without express authorization from City unless the
surety provides City with sixty (60) days written notice by registered or certified mail, return
receipt requested.
G. Security shall be released in the following manner:
1) Performance security shall be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of paragraph B.
2) The City Engineer may authorize partial reduction of performance security as work
progresses, upon application by Subdivider. However, no such reduction shall be for an
amount less than Ten Percent (10%) of the total performance security provided for the faithful
performance of the act or work. In no event shall security be reduced below that required to
guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%).
The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) P,articipatory Improvement security shall be released upon payment by Subdivider of
Subdivider's share of the cost or estimated cost of the Participatory Improvements.
4) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the
Improvements. if City receives notice of any recorded lien, the provisions of the Subdivision
Map Act shall apply.
5) Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Tract Improvements. However, if at the end
of the one-year warranty period, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the warranty, warranty
3of�
TAProlect Development Division\Development ProJects\Agreements\SIA\SIAs In Progress\Rancho Santana_31202-2 & Company\LQ Quell Run Sw1lch\0NSITE_SIA.doc
security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer.
4, Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits
required for that phase of work and pay all required fees. Work performed under a permit or permits
shall comply with all provisions of the required permits.
5. Off -site Improvements. When the construction of one or more of the Improvements requires or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its
best efforts purchase such real property at a reasonable price. In the event that .Subdivider is
unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider
may request in writing that City attempt to acquire such real property. City may, but is not required to,
agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and
Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said
separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%)
of the appraised fair market value of the real property. Any unexpended portion of said advance shall
be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be
paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall
the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate
Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the
Conditions of Approval.
6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety
(90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later date, as determined by the
City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of
the Improvements within the specified time periods shall constitute cause for City, in its sole
discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise
improvement security requirements as necessary to ensure completion of the improvements, and/or
to require modifications in the standards or sequencing of the Improvements in response to changes
in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdivider's obligations hereunder.
7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to
strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected
by such events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of
time for completion of the Improvements. The City Council, in its sole and absolute discretion, may
approve or deny the request or conditionally approve the extension with additions or revisions to the
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance
to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the
securities shall be sufficient to ensure the performance of and payment for Improvements that remain
incomplete at the time of the extension, and to provide warranty security on completed
Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that
the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor
setting the monuments, and intersection monument tie -outs for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
improvements by City, Subdivider shall submit a request for final approval by City. The request shall
be accompanied by any required certifications from Subdivider's engineers or surveyors, approval
letters from other agencies having jurisdiction over and approval authority for improvements required
by this Agreement or the Conditions of Approval, and any required construction quality documentation
not previously submitted.
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11
12
13
14
15
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the
required documentation and will inspect the Improvements. If the Improvements are determined to
be in accordance with applicable City standards and specifications, and as provided herein,
obligations required by the Conditions of Approval and this Agreement have been satisfied, and
Subdivider has provided revised plans as required in Paragraph 11, hereinafter, the City Engineer
shall recommend acceptance of the Improvements by the City Council.
Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the
plans depict the actual Improvements constructed. When necessary revisions have been made, each
separate sheet of the plans shall be clearly marked with the words "As -Built,
" "As -Constructed," o
"Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the
improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to
the City Engineer.
Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one
(1) year, beginning on the date of final acceptance of the Improvements by the City Council, against
any defective work or labor done, or defective materials furnished, and shall repair or replace such
defective work or materials.
Release of Security. City shall retain and release securities in accordance with the provisions of
Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require
Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may
affect the amount of payment security released.
Cite Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not
been performed within sixty (60) days after written notice of default from City, then City may perform
the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of
suit and reasonable attorney's fees incurred by City in enforcing such obligation. In cases of
emergency or compelling public interest, as determined by the City Engineer, the requirement for
written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other
provisions of this Article shall remain in effect.
Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives,
executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold
City and its officers, employees, agents, representatives, and assigns harmless from and against any
losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in
any way connected with Subdivider's performance herein under, including costs of suit and
reasonable attorneys' fees.
16, No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Conditions of Approval. In the event that any requirement or condition of this
Agreement whichcdocument(s)with
is r(a efails
) incorporated herein bymore
reference, the provisions iinsof
the
Approval,
Conditions of Approval shall remain in effect and shall control.
17. Severability. In the event that any provision or provisions of this Agreement are held unenforceable,
all provisions not so held shall remain in full force and effect.
18, General Provisions.
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent
by registered or certified mail, return receipt requested, to the parties at their respective
addresses indicated hereon. Notices personally delivered shall be effective upon delivery.
Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of
delivery or refusal indicated on the return receipt. Either party may change its address for notices
hereunder by notice to the other given in the manner provided in this subparagraph.
B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns, and successors of the parties hereto.
TAProject Development Division\Development ProjectMA9reements\SIA\SIA9 in Progress\Rancho Santana_31202-2 & Company\LQ Quail Run Switch\ONSITE SIA.doc
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C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
D. This Agreement shall be governed by and interpreted with respect to the laws of the State of
California.
E. In the event of any dispute between the parties with respect to this Agreement, the prevailing
party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing
party.
F. Any failure or delay by either party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075�
Thomas P. Genovese, City Manager Date
Principal Address
La Quinta Quail Run
78-900 Avenue 47, Suite 102
La Quinta, CA 92253
. _ 71-8130 �.
By:
7
Title:
0
Title:
Date
Date
Rev'ewed an Approved: Date
� DS
�~
Enginee
ney
Date
T:\Project Development Division\Development Prgjects\Agreemenls\SIA\SIAs In Progress\Rancho Santana_31202-2 & Company\LQ Quail Run Switch\ONSITE_SIA.doc
8ofi
Exhibit A
ON -SITE SECURITY — TRACT MAP NO. 31202-2
Improvements designated as "Participatory" have been or will be constructed by others. Security for
Participatory improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or
released as specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total
performance security for the tract and shall not reduce total performance security below the amount
necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases
of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer.
Requests for partial releases, setting forth in detail the amount of work completed and the value thereof,
shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required tract improvements are
complete and accepted by the City Council.
Improvement Description Performance Labor & Materials
Grading
$
$
40,730
$
40,730
'
Drainage
Street Improvements
$
252,320
$
252,320
176,300
Domestic Water
$
$
176,300
124,260
$
$
124,260
Sanitary Sewer
$
148,800
$
148,800
Dry Utilities
$
9,300
$
_
Monumentation
Totals
$
751,710
$
$
742,410
74,240
Standard 10% Contingencey
$
$
,1
826,880 0
$
816,650
Total Construction Cost
Professional Fees, Design 10%
$
82,690
$
$
81,670
81,670
Professional Fees, Const 10%
$
82,690
No Plans Contingency 17%
$
140,570
$
138,830
Bond Amount
$
1,132,830
$
1,118,820
na mmnmant Division0evelopment Projects\Agreemente\SIA\SIAs in Progress\Rancho Santana_31202-2 & Company\LQ Quail Run Switch\ONSITE_SIA.doc
7of7
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of Califo '
e l ��) ss.
County of
OnJ l(1'1 , ,before me,
Date Name a M T" of orcer (e.g.. 'Ja Doe. DNotary Public')
personally appeared �i chl 6b ! i
, ems) of S�(e)
proved to me on the basis of satisfactory
'evidence
to be the person(x) whose name6) fs are
subscribed to the within instrument and
JEANNENt.s7MGE acknowledged to me that t e he/they executed
Commission# 1340039
a itomiia the same in i ter/their L�a thorized
pubiic- rcapacity(ie and that by e'er/their
g.WNotarY
Riverside County
fires Jan 17, 2006 signature( on the instrument the person(4d), or
My Comm. p the entity upon behalf of which the person
acted, executed the instrument.
WITNESS my hand and official seal.
�V,�O(J _ S-`cu
Place Notary Sed Above L11
Signature of Notary Publc
OPTIONAL
Though the information below is not required by law, It may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document �� ��f h ✓L Title fi—
or Type of Document:
j
Document Date: I — � Jb � Number of Pages:
:
Signer(s) Other Than Named Above
l 120�'�? k S �' 6-z ti e VpS C
Capacity(ies) Claimed by Signer
Signer's Name:
❑ Individual Top of thumb here
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
a 1997 NB*NW Notary AnocWm . WN De Sob Ave.. P.O. Box 24o2 • Chawworth, CA 91313.2402 Prod. No. 5907 Reorder. CA To8-Free 1-800-876-6827
OUTSTANDING BOND REPORT
Name: Desert Cheyenne, Inc. (Rancho Santana)
Tract No. 31202-2
Date of Contract: July 20, 2004
Required Bond Amounts:
Drainage
Streets
Water
Sewer
Utilities
Monumentation
10% Contingency
Prof. Fees Design
Prof. Fees. Construction
No Plans Contingency
Dates of Bond Reductions:
$ 40,730
performance / labor & materials
$ 252,320
same
$176,300
same
$124,260
same
$148,800
same
$ 9,300
performance only
$ 75,170 / $
74,240
$ 82,690 / $
81,670
$ 82,690 / $
81,670
$140,570 / $138,830
Outstanding Bonds and Bond Company:
Amount:
$1,132,830 SU5013317
$1,118,820 same
Arch Insurance
Date Cancelled/Released:
BOND NUMBER: SU5013317
PREMIUM: $22,657.00
SUBDIVISION IMPROVEMENTS
Parcel Map NO. TRACT NO. 31202-2
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map
No. TRACT NO. 31202-2 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and LA QU I NTA QUA I L RUN, LLC,
A CALIFORNIA LIMITED LIABILITY COMPANY hereinafter designated as ("principal")
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated , 200 , and identified as
Parcel Map No. TRACT NO. 31202-is hereby referred to and made a part hereof; and
WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and ARCH INSURANCE COMPANY
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum
Of ONE MILLION ONE FtNFED 1HIRTY-1%O M-OL D Elair FINDO THIRTY --DOLLARS ($ 1 ,132 ,830.00--- ) lawful
money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our
heirs, successors, executors and administrators, jointly and severally, firmly by these presents.
The condition of this obligation is such that if the above bounded principal, his or its heirs, executors,
administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and
perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as
therein provided, on his or their part, to be kept and performed at the time and in the manner therein
specified, and in all respects according to their true intent and meaning, and shall indemnify and save
harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become
null and void; otherwise it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there
shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
F201 - Performance Bond Page 1 of 2
BOND NUMBER: SU5013317
PREMIUM CHARGED IS INCLUDED
IN PERFORMANCE BOND
SUBDIVISION IMPROVEMENTS
Parcel Map NO. TRACT NO. 31202-2
LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map
No. TRACT NO. 31202-2 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and LA QU I NTA QUA L RUN, LLC,
A CALIFORNIA LIMITED LIABILITY COMPANY hereinafter designated as "the principal" have
entered into an agreement whereby the principal agrees to install and complete certain designated public
improvements, which agreement, dated 1 200 , and identified as Parcel Map
No. TRACT NO. 31202-2 , is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the agreement, the principal is required before entering upon the
performance of the work, to file a good and sufficient payment bond with the City of La Quinta to secure the
claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the
Civil Code of the State of California.
NOW, THEREFORE, the principal and the undersigned as corporate surety, are held firmly bound
unto the City of La Quinta and all contractors, subcontractors, laborers, materialmen, and other persons
employed in the performance of the agreement and referred to in Title 15 (commencing with Section 3082)
of Part 4 of Division 3 of the Civil Code in the sum of ONE MILLION ONE HUNDRED EIGHTEEN THOUSAND EIGHT HUNDRED
TWENTY ---DOLLARS ($ 1 ,118,820.00--- ), for materials furnished or labor thereon of any kind, or for
amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will
pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought
upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees,
including reasonable attorney' s fees, incurred by city in successfully enforcing this obligation, to be awarded
and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all
persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082)
of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit
brought upon this bond.
Should the condition of this bond be fully performed, then this obligation shall become null and void,
otherwise it shall be and remain in full force and effect.
F202 - Labor and Material Bond Page 1 of 2
COUNCIL/RDA MEETING DATE: January 18, 2005
ITEM TITLE: Conditional Approval of Assignment and
Assumption Agreement and Amended Subdivision
Improvement Agreement for Tract Map No. 31202-2,
La Quinta Quail Run, LLC
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: I01...
STUDY SESSION:
PUBLIC HEARING:
Adopt an agreement of the City Council granting Conditional Approval of Assignment
and Assumption Agreement and Amended Subdivision Improvement Agreement (ASIA)
for Tract Map No. 31202-2, La Quinta Quail Run, LLC.
FISCAL IMPLICATIONS:
None.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
Tract Map No. 31202-2 is located south of Avenue 52 and west of Monroe Street
(Attachment 1). This residential development will consist of 62 residential lots on
approximately 18 acres (Attachment 2).
On July 1, 2003, the City Council approved Tentative Tract Map No. 31202.
The developer has requested the City Council's conditional approval of the ASIA
(Attachment 3) and Assignment and Assumption Agreement (Attachment 4) which
will allow 30 days for completion of its processing. To date, the ASIA has been
executed by the developer but the associated securities have not yet been received.
The developer expects that the associated securities and all signatures will be in place
within the time allowed for its conditional approval.
�93
This conditional approval is contingent upon receipt within 30 days (February 17,
2005), of the associated securities. If any of the required items are not received by
City staff within the specified time frame, the Assignment and Assumption Agreement
and ASIA will be considered disapproved and will be rescheduled for City Council
consideration only after all required items have been received.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council include:
1. Adopt an agreement of the City Council granting Conditional Approval of
Assignment and Assumption Agreement and Amended Subdivision Improvement
Agreement for Tract Map No. 31202-2, La Quinta Quail Run, LLC; or
2. Do not adopt an agreement of the City Council granting Conditional Approval of
Assignment and Assumption Agreement and Amended Subdivision Improvement
Agreement for Tract Map No. 31202-2, La Quinta Quail Run, LLC; or
3. Provide staff with alternative direction.
Respectfully submitted,
du;blic
hy R."on sson
Works irecto ity Engineer
Approved for submission by:
Thomas P. Genovese, City Manager
Attachments: 1. Vicinity Map
2. Tract Map
3. Amended Subdivision Improvement Agreement
4. Assignment and Assumption Agreement
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