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2025 - 31910 D.R. Horton Los Angeles Holding Co, Inc - Assign & Assum & Amended Dev. Improv. AgrASSIGNMENT AND ASSUMPTION AGREEMENT W ul AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 31910 ON -SITE IMPROVEMENTS This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT ("Assignment & Amendment") is made and entered into as of the 16th day of September , 20 25 , by and among the CITY OF LA QUINTA, a municipal corporation of the State of California ("City"), Capistrano Lots, LP, a California limited partnership ("Assignor"), and D.R. Horton Los Angeles Holding Company, Inc., a California corporation ("Assignee"). RECITALS A. City, Assignor, and La Quinta 57 Estates, Inc. entered into that certain Assignment and Assumption Agreement and Amendment to Subdivision Improvement Agreement, dated October 9, 2015, pursuant to which Assignor, as the "Subdivider" defined in the Subdivision Improvement Agreement for Tract No. 31910 ("SIA"), agreed to plan for, install, and construct certain public and/or private improvements on Tract No. 31910 ("Tract"), as more fully described in Exhibit "A" of the SIA ("Improvements"). B. Assignor has sold 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 desire 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 to the SIA, Assignor has furnished the City security for the Improvements in the form of: (a) Faithful Performance Bond in the amount of $1,254,277 for the following improvements: ON -SITE IMPROVEMENTS Performance Security Improvement Description Original Amount 1st Partial Reduction (Percent) 1st Partial Reduction Amount Grading $286,226 75% $71,557 Street $797,543 20% $638,034 Domestic Water $69,785 70% $20,936 Storm Drain $46,648 70% $13,994 Dry Utilities $362,970 70% $108,891 Sewer $59,469 70% $17,841 Monumentation $20,000 0% $20,000 Standard 10% Contingency $164,264 0% $164,264 Professional Fees, Design 10% $180,691 90% $18,069 Professional Fees, Construction 10% $180,691 0% $180,691 TOTAL $2,168,287 $1,254,277 (b) Other (Specify type and amount): No other security is currently being furnished by Assignor to the City. For purposes of this Assignment & Amendment, 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 & 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 Assignor's Improvement Security. 3. Solvency. As a material inducement to the City to enter into the Assignment & Amendment, Assignee hereby represents and warrants to City, and City hereby relies on Assignee's representation and warranty, that Assignee is solvent and has the financial capability of fulfilling each and every obligation and duty it takes on by way of the Assignment & Amendment. 4. 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 & Amendment. F220 -2- 5. Counterparts. This Agreement may be executed in one or more counterparts, which, taken together, shall constitute one complete and enforceable agreement. F220 -3- IN WITNESS WHEREOF, the parties hereto have executed this Assignment & Amendment on day of , 2025 . CITY: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 760) 777-7075 JqN,MCMILLEN, CITY MANAGER _,--City of La Quinta, California ATTEST: MONIKA RADEVA, CITY VERK City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California zpzS Da Fe ASSIGNOR: Capistrano Lots, L.P., a California limited partnership 940 Emmett Ave, Suite 200 Belmont, CA 94002 By: VPI 2004, Inc., a California corporation Its: General Partner September 5, 2025 Its: Debra L. Perry, Vice PreWdnt Date N/A Its: Date ASSIGNEE: D.R. Horton Los Angeles Holding Company, Inc., a California corporation 980 Montecito Drive, Suite 300 Mna,92879 Its: Date Its: Date F220 -4- CONSENT CALENDAR ITEM NO. 8 City of La Quinta CITY COUNCIL MEETING: September 16, 2025 STAFF REPORT AGENDA TITLE: APPROVE ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP NO. 31910, CAPISTRANO, A RESIDENTIAL DEVELOPMENT LOCATED ON THE WEST SIDE OF MONROE STREET APPROXIMATELY 1,300 FEET NORTH OF AVENUE 58 ?ECOMMENDATION Approve Assignment and Assumption Agreement and Amendment to Subdivision Improvement Agreement for on -site improvements for Tract Map No. 31910, Capistrano, and authorize the City Manager to execute said agreement. EXECUTIVE SUMMARY • Capistrano Lots, LP has sold its interest in this tract to a new developer, D.R. Horton Los Angeles Holding Company, Inc. (D.R. Horton) and desires to assign the subdivision improvement obligations to D.R. Horton. • D.R. Horton requests approval of Assignment and Assumption Agreement and Amendment to Subdivision Improvement Agreement (Agreement) for Tract Map No. 31910, Capistrano. FISCAL IMPACT There is no fiscal impact to the City. D.R. Horton will submit replacement security to guarantee construction of the improvements. ?ACKGROUND/ANALYSIS Capistrano is a residential development located on the west side of Monroe Street approximately 1,300 feet north of Avenue 58 (Attachment 1). In December 2006, La Quinta 57 Estates, Inc. entered into a Subdivision Improvement Agreement for Capistrano. In October 2015, Capistrano's subdivision improvement obligations were assigned to Capistrano Lots, LP. Capistrano Lots, LP recently sold its interest in this tract to D.R. Horton. The City will release Capistrano Lots, LP's security upon executing the Agreement (Attachment 2) and receiving replacement security from D.R. Horton. 31 ALTERNATIVES Staff does not recommend an alternative. Prepared by: Amy Yu, Associate Engineer Approved by: Bryan McKinney, P.E., Public Works Director / City Engineer Attachments: 1. Vicinity Map 2. Assignment and Assumption Agreement and Amendment to Subdivision Improvement Agreement 32 ATTACHMENT 1 TM 31910 CAPISTRANO ill R !i � LK- rA f11 W Z O 3E AVE. 58 va Z O COUNTY OF RIVERSIDE AVE. 55 PROJECT SITE VICINITY MAP NOT TO SCALE 33 Bond No. 82380249 Premium: $115.00 FAITHFUL PERFORMANCE BOND (LQMC 6.16) Fugitive Dust Control Bond WHEREAS, the City of La Quinta, California, is prepared to authorize D.R. Horton Los Angeles Holding Company. Inc. , as Principal, to proceed with certain construction activities pursuant to one, or more permits issued by the City, for various infrastructure improvements and/or structures on, or associated with, privately -owned property generally known to the City and others as The Enclave at Capistrano - TR 31910 :and WHEREAS, all such construction and demolition activities must be performed in such manner as to conform with La Quinta Municipal Code, Chaper 6.16, entitled Fugitive Dust Conti -of to reduce fugitive dust and corresponding PM10 emissions; and WHEREAS, said Principal is required by LQMC 6.16.050(A)(4) to ensure that Fugitive Dust Control Plan # , prepared specifically for the subject construction site, is financially secure by furnishing security for the faithful performance of the dust control activitities required in the Fugitive Dust Mitigation Plan. NOW, therefore, we the Principal and Federal Insurance Com an as Surety, are held and firmly bound unto the City of La Quinta, as Obligee, in the penal sum of Forty Five Thousand Dollars and 00/100 Dollars ($ 45,000.00 ) 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 bonded 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 dust control plan 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 Obligee, 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 obligaton 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 the Obligee in successfully enforcing such obligation, all to be taxed as costs and included in any judgement rendered. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the dust control plan or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the dust control plan or to the work, the specifications, or the conditions of approval of said plan. Page 1 of 2 F211 Fugitive Dust Control Bond Fugitive Dust Control Plan # Page 2 of 2 In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on November 18, 2021. D.R. Horton Los Angeles Holding Company, Inc. r ci al i (Seal) By: Signature of POncipal Title of Signatory S�taar�c Federal Insurance Company x � i Surety - u- Y Signature of Surety Bryan M Caneschi Attorney -in -Fact Title of Signatory 202B Hall's Mill Road Whitehouse Station, NJ 08889 Address of Surety 908-903-3485 Phone # of Surety Surety Claims _ Contact Person For Surety F211 Bond No. US00146044SU25A Premium: $2,509.00 SUBDIVISION IMPROVEMENTS Tract Map No. 31910 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of the City of La Quinta has approved the final map for Tract Map No. 31910 , prior to installation of certain designated public improvements required by the Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code Section 66462) WHEREAS, the City Council of the City of La Quinta, State of California, and D.R. Horton Los Angeles Holding Company, Inc. hereinafter designated as ("principal') have entered into an agreement whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated _ , and identified as Tract Map No. 31910 , is hereby referred to and made a part hereof; and WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. NOW, THEREFORE, we, the principal and D.R. Horton Los Angeles Holding Company, Inc. , as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum Of One 0/1 Million Two Hundred Fifty Four Th usand Two Hundred Seventy even Dollars and 00 DOLLARS ($ 1,254,277.00 )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 The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications In witness whereof, this instrument has been duly executed by the principal and surety above named, on September 10, 2025 D.R. Horton Los Angeles Holding Company, Inc. Princi al Seal By:/ Signature of Principal FiSSiS-iGn-►' cSCC�G'�'A��i Title of Signatory 0' `\Pp�plNlmurrpry4 o�y \NSUR!9Nc goy o9-Po�r XL Specialt u o _ o = y Insurance Company Surety By: 'V410— SEAL:= nurmm�um Signature of Surety Noah William Pierce Attorney -in -Fact Title of Signatory 677 Washington Blvd., 10th Floor, Suite 1000 Stamford, CT 06901 Address of Surety (203) 964-5200 Phone # of Surety Surety Claims Contact Person For Surety F201 - Performance Bond Page 2 of 2 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of 12,i yt _r:5 -e— on q - J l.o - aoaS before me, Ashley Arryann Donovan, Notary Public (insert name and title of the officer) personally appeared Vicki Gullion who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/tee subscribed to the within instrument and acknowledged to me that. a/she/they executed the same in leis/her/their authorized capacity(4es), and that by Ns/her/their signature(3r) on the instrument the person(w), or the entity upon behalf of which the person(zl acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ASHLEY ARRYANN DONOVAN U COMM #2417574 WITNESS my hand and official seal. 2 =°® NOTARY PUBLIC - CALIFORNIA RIVERSIDE COUNTY My Commission Expires September 22. 2026 Signature 'zovek.&— (Seal) STATE OF NORTH CAROLINA COUNTY OF ROWAN: I, Bryan M Caneschi, a Notary Public in and for Rowan County, North Carolina, do hereby certify that Noah William Pierce personally appeared before me this day and acknowledged the due execution of the foregoing instrument. Witness my hand and official seal this Notary Seal Bryan M Caneschi, Notary Public I0 day of 4' ege t 2025 My Commission Expires on the 41h day of April, 2027. Power of Attorney BOND NUMBER US00146044SU25A XL Specialty Insurance Company M,AA XL Reinsurance America Inc LIMITED POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That XL Specialty Insurance Company, a Delaware insurance companies with offices located at 505 Eagleview Blvd., Exton, PA 19341, and XL Reinsurance America Inc., a New York Insurance company with offices located at 70 Seaview Avenue, Stamford, CT 06902, , do hereby nominate, constitute, and appoint: Noah William Pierce each Its true and lawful Attorney(s)-in-fact to make, execute, attest, seal and deliver for and on its behalf, as surety, and as its act and deed, where required, any and all bonds and undertakings in the nature thereof, , for the penal sum of no one of which is in any event to exceed $100,000,000.00. Such bonds and undertakings, when duly executed by the aforesaid Attorney (s) - in - Fact shall be binding upon each said Company as fully and to the same extent as if such bonds and undertakings were signed by the President and Secretary of the Company and sealed with Its corporate seal. The Power of Attorney is granted and is signed by facsimile under and by the authority of the fallowing Resolutions adopted by the Board of Directors of each of the Companies on the 26th day of Jury 2017. RESOLVED, that Gary Kaplan, Daniel Riordan, Maria Duhart, Gregory Boal and Kevin Mirsch are hereby appointed by the Board as authorized to make, execute, seal and deliver for and on behalf of the Company, any and all bonds, undertakings, contracts or obligations in surety or co -surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to attest the execution of any such bonds, undertakings, contracts or obligations In surety or co -surety and attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that Gary Kaplan, Daniel Riordan, Maria Duhart, Gregory Boal and Kevin Mirsch each Is hereby authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute, on behalf of the Company, bonds and undertakings in surety or co -surety with others, and that the Secretary or any Assistant Secretary of the Company be, and that each of them Is hereby authorized to attest the execution of any such power of attorney, and to attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be affixed to such powers of attorney or to any certificate relating thereto by facsimile, and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond, undertaking, contract or obligation in surety or co -surety with others to which it is attached. IN WITNESS WHEREOF, the XL SPECIALTY INSURANCE COMPANY has caused its corporate seal to be hereunto affixed, and these presents to be signed by its duly authorized officers this April 13th, 2018. W�+ro XL SPECIALTY INSURANCE COMPANY :y\PO NC o� R4� m.off: �u:u oo u: ;..SEAL;.Y2 by %< Gregory Boal, VICE PRESIDENT M11AI0W STATE OFSYLVANIA COUNTY OFF CH CHESTER Ate' Kevin M. Mirsch, ASSISTANT SECRETARY On this 13th day of April, 2018, before me personally came Gregory Boal to me known, who, being duly sworn, did depose and say: that he Is Vice President of XL SPECIALTY INSURANCE COMPANY, described in and which executed the above Instrument; that he knows the seals of said Companies; that the seals affixed to the aforesaid instrument is such corporate seals and were affixed thereto by order and authority of the Boards of Directors of said Companies; and that he executed the said Instrument by like order. 4C' sygl ��' o♦�,ONW f�` ya =ot:u CP . e ?gam yhs oTA '•,•CRY P �. SB0042 Commomlrsalth of Pamdyllmla • Notary Seal Rebecca C. Shalhoub, Notary Public Northampton County Mycommisslon 9*mApril 28, 2028 Commission number 1268765 Meftw. Pennsylvatpa Anod~ of Notaries Rebecca C. Shalhoub, NOTARY PUBLIC STATE OF PENNSYLVANIA COUNTY OF CHESTER I, Kevin M. Mirsch, Assistant Secretary of XL SPECIALTY INSURANCE COMPANY, a corporation of the State of Delaware, do hereby certify that the above and forgoing Is a full, true and correct copy of a Power of Attorney Issued by said Companies, and that I have compared same with the original and that it Is a correct transcript therefrom and of the whole of the original and that the said Power of Attorney is still In full force and effect and has not been revoked. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Corporation, at the City of Exton, this 10th day of September, 2025 RIP Q-i OR9r .n� Kevin M. Mirsch, ASSISTANT SECRETARY ........ SEAL:2 IN WITNESS WHEREOF, XL REINSURANCE AMERICA INC. has caused Its corporate seal to be hereunto affixed, and these presents to be signed by its duly authorized officers this 13th day of April, 2018. A)s al„j\ . �0 4��i, XL REINSURANCE AMERICA INC. by: �/ �,I s -Al, f Gregory Boa], VICE PRESIDENT Attest: �Kevin M. Mirsch, ASSISTANT SECRETARY STATE OF PENNSYLVANIA COUNTY OF CHESTER On this 13th day of April, 2018, before me personally came Gregory Boal to me known, who, being duly sworn, did depose and say: that he Is Vice President of XL REINSURANCE AMERICA INC., described in and which executed the above Instrument; that he knows the seal of said Corporation; that the seal affixed to the aforesaid Instrument Is such corporate seal and was affixed thereto by order and authority of the Board of Directors of 4cp- Nlvhq�9 : Carnman"akh of Pennsylvania - Notary Seal olo F,q'r, O - A*. Rebecca C. Shalhoub, Notary Public =OC:v OF Northampton County : Mycommission explresApril 28, 2028 Commission number 1268765 yhSYtvP'�c'' • o� �o� :•` AWy Memw, Pom "aria Associatbn of NotsrW STATE OF PENNSYLVANIA COUNTY OF CHESTER Rebecca C. Shalhoub, NOTARY PUBLIC I, Kevin M. Mirsch, Assistant Secretary of XL REINSURANCE AMERICA INC. a corporation of the State of New York, do hereby certify that the person who executed this Power of Attorney, with the rights, respectively of XL REINSURANCE AMERICA INC., do hereby certify that the above and forgoing is a full, true and correct copy of a Power of Attorney issued by said Corporation, and that I have compared same with the original and that it is a correct transcript therefrom and of the whole original and that the said Power of Attorney Is still In full force and effect and has not been revoked. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Corporation, at the City of Exton, this 10th day of September, 2025 �V OR, n S"AL ✓OR�r This Power of Attorney may not be used to execute any bond with an Inception date SB0042 Kevin M. Mirsch, ASSISTANT SECRETARY 4/28/2028 12:00:OOAM