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33015 Riviera VillasCITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT TRACT 29125 THIS SUBDIVISION IMPROVEMENT AGREEMENT (the greement") is made and entered into this �2% A day of �OL 2001, by and between Riviera Villas, LLC , a California Limited Liability Company, thereinafter 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 parcel map (the "Map") of a unit of land in the City of La Quinta, County of Riverside, which unit of land is known as Tract No. 29125 (the "Tract") pursuant to the provisions of Section 66410, et sec. of the California Government Code (the "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. Improvements. 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. 3. 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. B. Improvement security shall conform with 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. T:\PWDEPT\STAFF\LINDSEY\TRACTS\29125\S.I.A.wpd Page 1 of 6 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 letter of credit will be automatically renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or parcel map for which the Improvements are required. The lien shall provide a collateral value of three (3) times the estimated cost of the Improvements and shall include the power of sale of the real property, all buildings and improvements thereon, or that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. The collateral value of the property shall be established at Subdivider's expense through an appraisal approved by City. 6) An instrument of credit from an agency of the state, federal or local government, when any agency of the state, federal, or local government provides at least Twenty Percent (20%) of the financing for the Improvements. 7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind approved for securing deposits of public moneys with City or in favor of City, as specified in Section 16430 of the California Government Code, deposited, at City's option, with City or a responsible escrow agent or trust company. C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized representative of the City Engineer. The amount of Payment security shall equal the amount of the amount of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security shall equal Ten Percent (10%) of the amount of performance security except as otherwise set forth in Exhibit A. 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, parcel map or waiver of parcel map) rather than to individual security instruments. The fees shall be paid separately for each different form and/or source (surety or financial institution) of security initially submitted and for substitution of securities but shall not be required for submittal of warranty security if the warranty security is of the same form and from the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00). 2) For liens on real property as described in Paragraph 5) of SECTION 3.13., 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). T:\PWDEPT\STAFF\LINDSEY\TRACTS\29125\S.I.A.wpd Page 2 of 6 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) Participatory Improvement security shall be released upon payment by Subdivider of Subdivider's share of the cost or estimated cost of the Participatory Improvements. 4) If City receives no notice of recorded claims of lien, labor and materials security shall be released in full 90 days after final acceptance and/or approval by the City Council, of the Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision Map Act shall apply. 5) 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 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. T:\PWDEPT\STAFF\LINDSEY\TRACTS\29125\S.I.A.wpd Page 3 of 6 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. 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. 11. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing, the marking shall be stamped by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to the City Engineer. 12. 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. 13. 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. 14. City 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, T:\PWDEPT\STAFF\LINDSEY\TRACTS\29125\S.I.A.wpd Page 4 of 6 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. 15. 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 is inconsistent with or fails to include one or more provisions of the Conditions of Approval, which document(s) is (are) incorporated herein by reference, the provisions in the Conditions of Approval shall remain in effect and shall control. 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. 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. T:\PWDEPT\STAFF\LINDSEY\TRACTS\29125\S.I.A.wpd Page 5 of 6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: Thomas P. Genovese, City Manager ATTEST: SUBDIVIDER: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 760/777-7075 2j/o / Date y: Date Title: G � AP � By: Date Title: Reviewed and Approved: City Engineer Approved as to Form: ettrn Riviera Villas, LLC 1651 East Fourth St., Suite 228 Santa Ana, CA 92701 (714) 540-5403 7 <P 0l Date T:\PWDEPT\STAFF\LINDSEY\TRACTS\29125\S.I.A.wpd Page 6 of 6 Exhibit A Security - Tract 29125 Except as otherwise provided herein, Subdivider shall furnish performance security and labor & materials security prior to agendization of the Map for approval by the City Council. Improvements designated as "Participatory" have been or will be constructed by others and consists of infrastructure improvements located around the perimeter of the PGA West Specific Plan area required by the Specific Plan including: street, landscaped median, water, sewer, electric power, storm drain, perimeter landscaping, and perimeter sound attenuation wall installed after January 1992. Subdivider will not be held responsible for participatory improvements other than cost participation as outlined in the Conditions of Approval and herein. 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 Streets Improvements 48,778 48,778 Grading 43,950 43,950 Site Perimeter Wall ' 32,000 32,000 Domestic Water 66,700 66,700 Sanitation Sewer 14,260 14,260 Offsite Participatory Improvements 2 29,120 0 Monumentation 5,000 0 Construction Subtotal: $239,808 $205,688 Contingency (25% of Project) 59,952 TOTAL: 299,760 This improvement item shall be constructed/installed within six (6) months after recordation of the Tract 2 Map. This improvement item will be paid in cash, to the City for redistribution to the party who constructs the offsite improvements, prior to final acceptance of the tract improvements. The actual amount will not exceed $29,120 ($16,000/gross acre subdivided), but may be reduced to a lower amount if actual costs confirm a lower participation amount. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of `-�G On g- "IL�� ( before me, : c a .,& �� c,,ce_,,A P dN�ek,, j V -�<< Date Name and Title of Officer (e. , "Jane Doe Notary Public") personally appeared Name(s) of Signer(s) X personally known to me ❑ proved to me on the basis of satisfactory evidence to be the personH whose named is/aFe- subscribed to the within instrument and acknowledged to me that heis4eA4ey executed the same in his4rc�authorized capacity{+es), and that by his/her'+ ei signature(} on the instrument the personH, or the entity upon behalf of which the person(-s*- acted, executed the instrument. WITNESS my hand and off' 'al seal. A,�lj � Place Notary Seal Above ( Signature of 6r ublic 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 Title or Type of Document: (%kN d L` ���� - �� V S o Lt"DYa­e A vec",c --Zlv 1 Document Date: �`Z (0 l Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer n Signer's Name: _ J OS, L Individual ❑ Corporate Officer — Title(s): Top of thumb here- ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: 0 1999 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 • www.nationalnotary.org Prod. No. 5907 Reorder: Call Toll -Free 1-800-876-6827 �Tmlg INSCO INSURANCE SERVICES, INC. c� insc��o Underwriting Manager for: �qO�p Developers Surety and Indemnity Company Indemnity Company of California 17780 Fitch, Suite 200 - Irvine, California 92614 - (949) 263-3300 SUBDIVISION IMPROVEMENTS PERFORMANCE BOND BOND NO. 831764S $ 5,413.00 premium is for a term of TWO year(s) KNOW ALL MEN BY THESE PRESENTS: That we, GREENEWAY DEVELOPMENT, INC. , as Principal, and DEVELOPERS SURETY AND INDEMNITY COMPANY , a corporation organized and doing business under and by virtue of the laws of the State of IOWA and duly licensed to conduct a general surety business in the State of California as Surety, are held and firmly bound unto the CITY OF LA QUINTA. CA as Obligee, in the penal sum of TWO HUNDRED SEVENTY THOUSAND SIX HUNDRED FORTY ANDNO/100--------------------------------------------------------------------------------------------------------------------------- --------------------------------------- ($ 270,640.00 ) Dollars, for which payment, 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 THE OBLIGATION IS SUCH THAT: Whereas the Obligee and Principal have entered into an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, identified as TRACT 29125 ON BEHALF OF RIVIERA VILLAS LLC , 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, the condition of this obligation is such that is the above bounden principal, his or its heirs, executors, administrators, successor or assigns, shall in all things stand to and abide by, 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 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 obligation secured hereby and in addition to the penal sum specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by 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 agreement 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 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 JULY 2, 2001. PRINCIPAL: GREENEWAY D LOPMENT, INC. SURETY: DEVELOPERS SURETY & INDEMNITY COMPANY W. W. JELKS Attorney -in -Fact ID-1092 (CA) Subdivision Performance Bond (REV. 1/01) 4MF. INSCO INSURANCE SERVICES, INC. c� insc��o Underwriting Manager for: �pO�p Developers Surety and Indemnity Company Indemnity Company of California 17780 Fitch, Suite 200 • Irvine, California 92614 • (949) 263-3300 SUBDIVISION IMPROVEMENTS LABOR AND MATERIAL BOND BOND NO. 831764S PREMIUM INCLUDED IN PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That we, GREENEWAY DEVELOPMENT, INC. , as Principal, and DEVELOPERS SURETY AND INDEMNITY COMPANY , a corporation organized and doing business under and by virtue of the laws of the State of IOWA and duly licensed to conduct a general surety business in the State of California as Surety, are held and firmly bound unto the CITY OF LA QUINTA, CA as Obligee, in the penal sum of TWO HUNDRED FIVE THOUSAND SIX HUNDRED EIGHTY-EIGHT AND NO/1 00 ----------- — ----------------------------------------------------------------- 205,688.00 ) DOLLARS, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and successors, jointly and severally firmly by these presents. THE CONDITION OF THE OBLIGATION IS SUCH THAT: Whereas, the above -named Principal, has entered into an agreement which is made a part of this bond, with the CITY OF LA QUINTA , State of California, as Obligee, for the designated public improvements in the subdivision identified as TRACT # 29125, ON BEHALF OF RIVIERA VILLAS LLC , as required by the Government Code of California. Whereas, under the terms of said agreement, 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, CA 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, said principal and the undersigned, as surety, are held firmly bound unto the CITY OF LA QUINTA, CA and all contractors, subcontractors, laborers, materialmen and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Code of Civil Procedure for material furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the penal sum hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the penal sum thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by CITY OF LA QUINTA in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgement 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 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. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said agreement 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, alteration or addition. In witness whereof, this instrument has been duly executed by the principal and surety above named, on JULY 2, 2001. PRINCIPAL: GREEN AY DEV OPMENT, INC. GIZ L6 of ^,e-p— &re -?A 4 ► 'Pee-5 10-1093 (CA) Subdivision Labor and Material Bond (REV.1101) SURETY: DEVELOPERS SURETY & INDEMNITY COMPANY x & W. W. JELKS 4V Attorney -in -Fact OUTSTANDING BOND REPORT Name: Riviera Villas LLC Tract No. 29125 Date of Contract: May 24, 2001 Required Bond Amounts: Streets $48,778 performance & labor Grading $43,950 same Perimeter wall $32,000 same Water $ 66,700 same Sewer $14,260 same Offsite Imp. $ 29,120 performance only (to be paid in cash) Monumentation $ 5,000 performance only Contingency $ 59,952 performance only Dates of Bond Reductions: Outstanding Bonds: Amount: Bond No. Date Cancelled/Released: $ 270,640 831764S $ 205,688 same ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT TRACT 29125 This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT ("Assignment & Amendment") is made and entered into as of the .f' day of 20J0, by and among the CITY OF LA QUINTA, a municipal corporation of the State of California ("City"), Riviera Villas, LLC, a California Limited Liability Company, ("Assignor'), and Riviera Villas, LLC, a California Limited Liability Company ("Assignee"). RECITALS A. City and Assignor entered into that certain Subdivision Improvement Agreement,dated May 24, 2001 ("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. 29125 ("Tract"), as more fully described in Exhibit "A" of the SIA ("Improvements"). B. 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 to the SIA, Assignor has furnished the City security for the Improvements in the form of: (a) A Faithful Performance Bond in the amount of $270,640.00 for the following improvements: Street Improvements, Grading, Site Wall, Domestic Water, Sanitation Sewer, and Monumentation plus 25% Contingency. (b) A Labor and Material Bond in the amount of $205.688.00 for the following improvements: Street Improvements, Grading, Site Wall, Domestic Water, and Sanitation Sewer. 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 as specified in the Amended Subdivision Improvement Agreement. 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 Amended 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 Amended SIA in the same manner as Assignor prior to this assignment. F220 _2 IN WITNESS WHEREOF, the parties hereto have executed this Assignment & Amendment on 11 day of M Q hs L , 2061• CITY: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 (760) 777-7075 /Thomas P. Genovese Da e City Manager ATTEST: June S. e City Clerk ASSIGNOR: Riviera Villas, LLC a C A 1- L C 1651 East Fourth Sit., Ste. 228 Santa Ana, CA 92701 -P'�-3 0 'I Title r Date ASSIGNEE: Riviera Villas, LLCI o- C A LLC 300 E. State Street, Ste. 100 Redlands, CA 92373 By: First Pacifica Development Corp. a CA Corporation, Manager Title: ?,,, 4 Date orn F220 -3- T AMERI 4� C } STATE OF CALIFORNIA }ss. COUNTY OF Riverside } On March 5, 2004 , before me, Constance Gorsuch personally appeared Bo Kuo and John L. Rainaldi 1 personally known to me . (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNES; Signature rwlNon I 1Ji761017 p4pw CCONothir, "tv0rak1e County Con t►l t. E4*Wun 2o. h 1 (This area for official notarial sea[) Title of Document Assignment and Assumption Agreement and Amendment to Subdivision _ Date of Document Improvement Agreement 3/5 ,I No. of Pages 3 Other signatures not acknowledged Norge 3008 (1/94) (General) First American Title Insurance Company CITY OF LA QUINTA AMENDED SUBDIVISION IMPROVEMENT AGREEMENT TRACT 29125 THIS SUBDIVISION,IMPROVEMENT AGREEMENT (the Bement") is made and entered into 2004, by and between day of �X 9 Riviera Villas, LLC , a California Limited Liability Company, hereinafter referred to as" Slubdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as Cty RECITALS: A. Subdivider has prepared and filed a final map or parcel map (the "Map") of a unit of land in the City of La Quinta, County of Riverside, which unit of land is known as Tract No. 29125 (the "Tract") pursuant to the provisions of Section 66410, et_ se_c• of the California Government Code (the 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. Improvements. Subdivider shall construct the public and private street, drainage, Agreement , landscaI sted n pingExhibd other improvements required to be constructed or agreed to be constructed under this "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. 3. 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, b ("Participatory payment f Subdivider's fair share of Improvements which have been or will be construe y by Improvements"), and payment of plan check and permit fees. A second class of security labor,equipment provided and materials hereinafter referred to as "payment security, shall assure the payment of the cos hereinafter referred to supplied to construct the Improvements. A third class of security to be provided by Subdivider, as "warranty security, shall serve as a guarantee and warranty of the Improvementsfor a perioand d a f one ent year Pori lopr or the completion and acceptance of the Improvements. Subdivider shall furnish performancep ym to and as a condition of City Council approval of the Map. Subdivider shall provide with the (final release of y security after Improvements are complete and accepted by the City Council and prior to or concurrently performance security. Warranty security shall not be required for Monumentation or Pthe'work in accordance with cipatory Improvements. However, the City may utilize Monumentation Security for performance of or payment forthe Subdivision Map Act. As part of the obligation secured by each of the performance security, payment security and warranty security, and in addition to the face amount of each such security, each such security shall include and assure the payment of costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby secured. B. Improvement security shall conform with Section 66499 of the California Government Code and one or more of the following: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. Page 1 of 6 T:\\29125\sia 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�financi l in titutions and a commitmto eguabion by the state or federal government and having a financial quality orLolng ofs Angeles County Treasurer's office). rating of "R-2" or better on the Investment Data Exchange (of the req ements 4) Irrevocable letters of credit, issued by one or more financial institutions meeting the areuir dents t, of Paragraph (3), pledging that the funds necessary to carry out the completion of theImprovements guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment of he funds any crede' or pursuant of the depositor until released by City. Letters of credit shall guarantee that all or any portion to the letters of credit will be paid upon the written demand of City and that such written ion of an d need not present documentation of any type as a condition of payment, including proof of loss. The d Y 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 r zes provided expiration and shall state, on its face, that the letter of credit will be automatically renewed until such time thatCity authoor until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or parcel map for which the Improvements are required. The lien shall provide a collateral value of three (3) tiand me the improvements t ereoncost or of the Improvements and shall include the power of sale of thereal hntalnd l buildings appurtenances hereunto belonging, or that may be erected upon or made thereto, together with allereditames in an wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. The collateral value of Y appraisal approved b Ci the property shall be established at Subdivider's expense through an app PP Y 6) An instrument of credit from an agency of the state, federal or local government, when any agency of the state, federal, or local government provides at least Twenty Percent (20%) of the financing for the Improvements. 7) When Subdivider is anon -profit organization, security may be n specifiedinof the , of the kind approved for securing deposits.of public moneys with City or in favor of City, as spec California Government Code, deposited, at City's option, with City or a responsible escrow agent or trust company. C. Al l securities shall be furnished in accordance with the provisions of Exhibit A. The amount tof the estimated b performance security shall equal One Hundred Percent (100%) of estimated oEng Weer or a duly Improvements, including payment of plan check and permit fees, as Y he City authorized representative of the City Engineer. The amount of Payment security shall roustsepofate h security of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a r. Warranty security shall equal Ten Percent (10 /o) of the amount of performance security except as otherwise set 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, parcel map or waiver of parcel d different form and/or sr rather than to individual security instruments. The fees shall be paid separately for each (Y suret or financial institution) of security initially submitted and for substitution of securities but the same t be required equ redh foe submittal of warranty security if the warranty security is of the same form and from 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 3.13., 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 3.13., 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, h v, Subdivider securl pay ed but City an administration fee of One Half of One Percent (0.5 /°) of the estimated cosimprovements 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. Page 2 of 6 T:\\29125\sia E. Participatory Improvements, if any, are identified in Exhibit A. Security for ctual costsparticipatory re improvements and paidby shall remain in place until the Participatory improvements me r�ma ed cost rof the participatory e constructed and aImprovements, and shall guarantee Subdivider, or until Subdivider pays to City th 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 hor in in repdal s of the date of the ement of security guaranteeing Participatory Improvements. If Sub divider 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 erfo aeon, inc stated 9 this on payment of premiums, modifications of this Agreement and/or expiration of the p 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, PPll upon application by Subdivider. However, no such reduction shall be for an amount less an Ten Persheen (10% b f P the total performance security provided for the faithful performance of the act or work.n reduced below that required to guarantee the completion of the act or work or obligation (10%). The City Engineer shall not allow more than two partial reductions of security furnished for any improvement agreement. 3) Participatory Improvement security shall be released upon payment by Subdivider of Subdivider's share of the cost or estimated cost of the Participatory Improvements. 4) If City receives no notice of recorded claims of lien, labor and materialsIf security sreceiv released notice of in full 90 days after final acceptance and/or approval by the City Council, of the Improvements.Y any recorded lien, the provisions of the Subdivision Map Act shall apply. 5) Warranty security not utilized during the warranty period shall be released the onee eaawa wanal rranty nay acceptance or approval by the City Council of all Tract Imp fo a erefnts. However, if of workat thor peovision of materials under the period, there are one or more outstanding requests by City performance terms of the warranty, warranty security shall be retained until the outstanding requests are satisfied or until Subdivider has made other arrangements satisfactory to the City Engineer. 4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain permits all shal its re comply all that phase of work and pay all required fees. Work performed under a permit • provisions of the required permits. 5. Off -site Improvements. When the construction of one or more of the Improvements requiresorts or secsucha es the acquisition of real property not owned by Subdivider or City, Subdivider shall u al property at a reasonable price. In the event that Subdivider is unsuccessful, despite its best efforts, h real acquire ro arty. real property at a reasonable price, Subdivider may request in wrihn eaha atteon behalf of Subdivider. f City so City may, but is not required to, agree to attempt to acquire such property ttorney. Said agrees, City and Subdivider shall enter a separate written agreement in a form acceptablen{ 50% oe Cityf the appraised separate agreement shall provide that Subdivider advance to City Onddvance e andred Fife be refunded to Subdivider. Any fair market value of the real property. Any unexpended portion o 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. Page 3 of 6 T:\\29125\sia 6. Completion of Im rovements. Subdivider shall begin construction of the ImprovementswithinPortions ninety of the days and shall complete construction Improvements may be completed at a later twelve (12) months by theer approval City lEngineer orasset forth in Exhibit A. econsttructionof the improvements within the specified time periods shall Failure by Subdivider to begin or comple default of this Subd er co nstitute cause for City, in its sole discretion and when �t deems necessary, to declareetionlofthe in agreement, to revise improvement security dards or sequencing se uencing of thetlmprovements in response to changes in ents as necessary and/or to require modifications m the standards q stan dards 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 withinthe time affected by rein du events will stries, act of God, or other events beyond Subdividers control, the time limits for obligations 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 terms and approve Condit r d ny the his request or conditionally approve the extension with additions or revisions tot e Agreement. , Subdivider shall furnish securities, similar in form and substance to those As a condition of the time extensionies re uired in SECTION 3 hereinabove, to cover the period of extension. The value of the he time tof the elxtens on, and to q ensure the performance of and payment forimprovementsthat remain incomplete a provide warranty security on completedimprovements. 9. Survey Monuments. Before final approval of street improvements, Subdivider and shall pla a La Qu Cta Muments pal in accordance with the provisions of Sections 66495, etsec. of the Subdivision Map Ac Code. Subdivider shall provide the City Engineer written proof that the monuments have on monument tie outs n set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and ect for monuments set in public streets. 10. Final Acceptance of Improvements. At the completion of construction and reprior to uesshall beptanceaccomf the Improvements by City, Subdivider shall submit a request for final approval byCity. The letters loin other agencies having ied by any required certifications from Subdividers engineers or surveyors, approval jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation not previously submitted. Upon receipt of said request, the City Engineer or a duly -authorized representative to bewill r n accoview he requwth documentation and will inspect the Improvements• ein, obligations rovements are determinedrequired by the Conditions of Approval nce applicable City standards and specifications, and as provided hre as and this Agreement have been satisfied, and Subdivider has provided revised plansrequired in Council. 11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City 11. 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 sheet of the plans shall be Impo the plans depict the actual rovements constructed. When necessary revisions have been made, each separate clearly marked with the words As -Built, As -Constructed," or "Record Drawing," toa1inshallbe stamped by an California, and the engineer or surveyor, as appropriate for the improvements thereon, who is licensedpractice plans shall be resubmitted to the City Engineer. 12. Improvement Warranty. Subdivider hereby guarantees the Improvements to ity any defective work or year, beginning on the date of final acceptance of the Improvements by the City Council, againsty labor done, or defective materials furnished, and shall repair or replace such defective work or materials. � yY 13. Release of Security. City shall retain and release securities in accordance with the provisions of Section title o this agreement. Prior to the release of payment security, the City Engineer the amouuire nt'der to provide a of payment security report or other evidence sufficient to show claims of lien, if any, that may affect released. 14. City 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 Page 4 of 6 T:\\29125\sia ees Subdivider shall pay the entire cost of such performance by City including costs of suit a I reasonable ale attorneys ttorne sdeterminf by incurred by City in enforcing such obligation. In cases of emergency or compelling public , 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. 15. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, rholdsent City and ,its officers, s, and agrees to indemnify, employees, agents, representatives, and assigns administrators, guarantors, heirs, and assignns 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 ofcthiAgreement is inconsistent with or fails incorporated herein by to include one or more provisions of the Conditions of Approval, which do () s reference, the provisions in the 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. 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. Y E. In the event of an 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. Page 5 of 6 T:\\29125\sia IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: City of La Quinta Thomas P. Genovese, City Manager ATTEST: City Cler - SUBDIVIDER: RIVIERA VILLAS, LLC f a C A %-1- C Local Address 78-371 Highway 111 La Quinta, CA 92253 First Pacifica Development Corp. a California Corp., Manager By: Title: By: Title: Reviewed and Approve Approved as to Form: 78-495 Calle Tampico La Quinta, CA 92253 760/777-7075 k- Date Principal Address. 300 E. State Street, Suite 100 Redlands, CA 92373 2 � �, I d 4 C.� d: City E gine Date i A orney Date Date Date Page 6 of 6 T:\\29125\sia Exhibit A Security - Tract 29125 Except as otherwise provided herein, Subdivider shall furnish performance security and labor & materials security prior to agendization of the Map for approval by the City Council. Improvements designated as "Participatory" have been or will be constructed by others and consists of infrastructure improvements located around the perimeter of the PGA West Specific Plan area required by the Specific meter including: street, landscaped median, water, sewer, electric power, storm drain, perimeter landscaping, P sound attenuation wall installed after January 1992. Subdivider will not be held responsible for participatory improvements other than cost participation as outlined in the Conditions of Approval and herein. 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 /o) 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 Streets Improvements 48,778 48,778 43,950 43,950 Grading Site Perimeter Wall 32,000 32,000 Domestic Water 66,700 66,700 Sanitation Sewer 14,260 14,260 Monumentation 5.000 0 Construction Subtotal: $210,688 $205,688 Contingency (25% of Project) 59,952 TOTAL: 270,640 Offsite Participatory Improvements 2 $29,120 0 This improvement item shall be constructed/installed within six (6) months after recordation of the Tract Map. This improvement item will be paid in cash, to the City for redistribution to the party who constructs the offsite improvements, prior to final acceptance of the tract improvements. The actual amount will not exceed $29,120 ($16,000/gross acre subdivided), but may be reduced to a lower amount if actual costs confirm a lower participation amount. -k 45 ,� A M E R I C,9 } STATE OF CALIFORNIA Iss. COUNTY OF gj,,,,j cip } On March 5, 2004 before me Constance Gorsuch , personally appeared Bo Kuo personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Signature (This area for official notarial seal) Title of Document Date of Document No. of Pages �p Other signatures not acknowledged 3008 (1/94) (General) First American Title Insurance Company ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT TRACT 29125 This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT ("Assignment & Amendment) is made and entered into as of the . day of 777 120J0, by and among the CITY OF LA QUINTA, a municipal corporation of the State of California ("City"), Riviera Villas, LLC, a California Limited Liability Company, ("Assignor"), and Riviera Villas, LLC, a California Limited Liability Company ("Assignee"). RECITALS A. City and Assignor entered into that certain Subdivision Improvement Agreement, dated May 24, 2001 ("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. 29125 ("Tract"), as more fully described in Exhibit "A" of the SIA ("Improvements"). B. 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 t he 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) A Faithful Performance Bond in the amount of $270,640.00 for the following improvements: Street Improvements, Grading, Site Wall, Domestic Water, Sanitation Sewer, and Monumentation plus 25% Contingency. b A Labor and Material Bond in the amount of $205.688.00 for the following improvements: Street Improvements, Grading, Site Wall, Domestic Water, and Sanitation Sewer. For purpos es 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 as specified in the Amended Subdivision Improvement Agreement. Assignees 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 Subdividers Improvement Security. 3. Incorporation of SIA Provisions. The Amended 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 Amended SIA in the same manner as Assignor prior to this assignment. -2- F220 IN WITNESS WHEREOF, the parties hereto have executed this Assignment & Amendment on ( *"-' day of Mom •. , 248_1• CITY: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 (760) 777-7075 3 // 9 /O:f Thomas P. Genovese Da e City Manager ATTEST: June S. e City Clerk ASSIGNOR: Riviera Villas, LLC a C A L L C 1651 East Fourth Sit., Ste. 228 Santa Ana, CA 92701 J L 3 Q � Title r Date ASSIGNEE: Riviera Villas, LLC1 0- C A LLC 300 E. State Street, Ste. 100 Redlands, CA 92373 By: Firat Pacifica Development Corp. a CA Corporation, Manager My; 23A"'41- 3 - 5--0 Title: L 04L-I&J Date F220 -3- 45.E nMER jc e } STATE OF CALIFORNIA }ss. .COUNTY OF Riverside } On March 5, 2004 , before me, Constance Gorsuch personally appeared so xuo and John L . Rainaldi personally known to me . (or proved to me on the basis of satisfactory evidence) to be the persons) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or, the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS m/h;d and off#al seal--� .,7 .Signature C. QH . Oran 0 1357687 Ndtry PLtk ..CC*fotnicr ode County a1m. E esJun 20.2i (This area for official notarial seal) Title of Document Assignment and Assumption Agreement and Amendment to Subdivision Date of Document Improvement Agreement No. of Pages 3 Other signatures not acknowledged None 3008 (1/94) (General) First American Title Insurance Company NOTE Regarding the Amendments to SIA 29125: This property has been purchased by a new owner. The new owner also purchased the "name Riviera Villas." In addition to this Tract, Tracts 29121 & 29122 which were under the name MSG La Quinta Homes have been purchased by the same buyer and renamed "Riviera Villas." Therefore, because there is a new owner, new bonds have been required in addition to the Assignment & Assumption Agreements and Amendments to the SIA's for all three Tracts. Name: Riviera Villas LLC (new owner in March 3004 but Riviera Villas name was retained) Tract No. 29125 (changed to 33015 on 1 /4/06) (bond amounts same w/rider) Date of Contract: May 24, 2001 / March 16, 2004 Required Bond Amounts: Streets $48,778 Grading $43,950 Perimeter wall $32,000 Water $66,700 Sewer $14,260 Offsite Imp. $29,120 Monumentation $ 5,000 Contingency $59,952 Dates of Bond Reductions: performance & labor same same same same performance only (to be paid in cash) performance only performance only Outstanding Bonds: Insurance Company: American Contractors Indemnity Co. Amount: Bond No. Date Cancelled/Released: $ 270,640 $ 270,640 831764S 203400 Replaced 3/29/04 $205,688 (L&M) 831764S Replaced 3/29/04 $205,688 (L&M) 203400 a � i , BOND NO. 203400 PREMIUM: $5,413.00 SUBDIVISION IMPROVEMENTS Tract Map No. 29125 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of the City of La Quints has approved the final map for Tract Map No. 29125 , prior to installation of certain designated public improvements required by the Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code Section 66462) WHEREAS, the City Council of the City of La Quints, State of Caffornia, and FIRST PACIFICA DEVELOPMENT CORP hereinafter designated as ("principal") have entered into an agreement whereby principal fi lnstell and complete certain designated public improvements, which said agreement, dated ______-5, 2004, and identified as Tract Map No. 29125 , is hereby referred to and made a part hereof; and WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. NOW, THEREFORE, we, the principal and AMERICAN CONTRACTORS INDEMNITY COMPANY as surety, are held and firmly bound unto the City of Le Quints hereinafter called ("City"), in the penal sum of TWO HUrIDRED SEV= TH0USAM SIX HUNDRED FORTY DOLLARS ($ 2 7 0 , 6 4 0.0 0 ) lawful money of the United States, 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 periormed 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. FM - Performance Bored Paps 1 of 2 BOND NO. 203400 PREMIUM: INCLUDED SUBDIVISION IMPROVEMENTS Tract Map No. 29125 LABOR AND MATERIAL BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of the City of La Quints has approved the final map for Tract Map No. 29125 ,prior to installation of certain �e�signits d public improvementsrequired by the Conditions of Approval for the subject map, in we with the Calftn-da Map Act (Government Code Section 66462) WHEREAS, the City Council of the City of La Quints, State of California, and have FIRST PACIFICA DEVELOPMENT CORP hereiftefter designated as "the principal" entered into an agreement whereby the�n�i eat and � aan}fied complete plete certain designated public improvements, which agreement, dated , Tract Map No. 29125 , is herebyre rred to and made a pert 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 Quints 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 Califomis. NOW, THEREFORE, the principal and the undersigned as corporate surety, are held firmly bound unto the City of La Quints 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'TWO HUNDRED FIVE SIX HUNDRED EIGHTY- EIGHT DOLLARS ($ 205, 688.00 ), for materials fumished or labor thereon of any kind, or for amoudue 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 and reasonable expenses and fees upon this bond, will pay, in addition to the faceamount 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 daims 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 - LaW and MateriM Bond Page 1 of 2 CITY ov LA QUINTA AMENDED SUBDIVISION IMPROVEMENT AGKLLMtN I TRACT MAP No. 33015 THIS SUBDIVISION IMPROVEMENT AGREEMENT MENT (the "Agreement") is made and enteer ad dintobetthis s ,t l Riviera Villas, LLCr, a Caitifomia 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 parcel map (the "Map) or a unit or iano in LIM Ciiy U; La County of Riverside, which unit of land is known as Tract No- 33015 (the "Tract") pursuant to the provisions of Section 66410, et sec. of the California Government Code (the "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, except for the finished paving, have been installed but not accepted oy the',ay at t1115 The above noted improvements were installed under Tract Map No. 29125, which is being replaced by this new Tract Map No. 33015. D- Tract Map No. 29125 was approved for single family lots, but the Homeowners' Association for the Tract did not approve of these lots. Tract Map No. 33015 is a condominium plan (accepted by the Homeowners' Association) with the same improvements as shown on Tract Map No. 29125. from the Homeowners' bdivider has agreed to E. roject tor rtthe condominium planf secureapproval City lhas given the modified project athe new Tract modify the Tractt Map No. of 33015 P 7 F It is therefore necessary that Subdivider and City enter into an agreement to reiterate Subdivider's obligations with respect to 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. Improvements. Subdivider shall construct the public ano private street, uiall iay�, uLill Ly, iai ed to be constructed under this Agreement as listed in Exhibit other improvements required to be constructed or agre "A", and shall bear the full cost thereof- The methods, standards, specifications, sequence, and scheduling of construction snau oe as approveu uy uic arty E-iiyllizzl- Improvement Security. A. The Subdivider may provide a rider from American Contractors Indemnity Company in a form acceptable to City attaching the existing Performance Bond (Bond No. 203400) and Labor and Material Bond (Bond No. 203400). Said rider shall expressly state that the existing bonds from Tract Map No. 29125 are being transferred to cover Improvement under the new Tract Map No. 33015. B. 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 I mprovements 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 �oN z'd Ob8L-LBtl-ZTf, Ilia,4ueS C �otuged d9T:Z0 so LT 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 forthe 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. U. improvement security snap conrorm to Section Ub4yy or the Ual romra vovernment t;ode 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 duality rating of "A" or better and a commitment reliability rating or rc-Z or oener on the investment Uata txchange (ot the Los Angeles County I reasurer'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 aeposuor until releasea oy i,,Iry. Letters or creoiT shall guarantee that ail or any portion of the tunas available pursuant io the letters of credit wiii be paid upon the written aernana of City and that such written demand need not present documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit shall be for a period of not less than one year from the execution of the agreement with which it is provided and shall state, on its face, that the letter of credit will be automatically renewed until such time that City authorizes its expiration or until sixty (60) days after City receives notice from the financial institution of intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or parcel map for which the Improvements are required. The lien shall provide a collateral value of three (3) times the estimated cost of u lu ii 1 (piuvenief ib anu swan iticruoe the power, or sale or the real property, ail aunaings and Improvements thereon, or that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging or n i any wide apNei irnnn iy, aria Ulu e6er vations, rernainuers, rents, issues, ano proms tnereot. i ne conaterai value oT the property shall be established at Subdivider's expense through an appraisal approved by City. 6) An instrument of credit from an agency of the state, federal or local government, when any agency ui ui, state, leueidi, ui iucai yovemrnent provioes at least iwenry rercent t�uio) or the nnancrng tor 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 udiiiui wa vuverrtrnent t,00e, aeposrtea, at t nys option, wiTn Uiry or a responsible escrow agent or trust company. D. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized representative of the City Engineer. The amount of Payment security shall equal the amount of the amount of performance security, except as otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security shall equal Ten Percent (10%) of the amount of performance security except as otherwise set forth in Exhibit A. E. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to the form or security provided. Administrative tees shall apply to the subdivision (final map, parcel map or waiver of parcel map) rather than to individual security instruments. The fees shall be paid separately for each different form and/or source t u UbtSL-Ltit�-C l7 L Le4UCS 'L >1J iJ4ed ay L ; e U SU L L r"'N (surety or financial institution) of security initially submitted and for substitution of securities but shall not be required for auun„ua, u, warranty securuy +, the warranty security IS or the same corm and rrom the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative Tee shall be une tiunarea airy Dollars (�i1bu_uu). 2) pui iicrra un rear NruNe,,y aaucx:,weu u, racayraNn a) u, 5CV r,Vry �.rs., wr wrier uitywiu prepare lien agreements and subordination agreements. administer valuation of the real property and administer the agreements over me Ve or the lien. an or wnicn reauire legal assistance and tinancial advice. Subdivider shall nav to tarty an aamrnistraWn fee of'One Halt of One Percent (0.5%) of the estimated cost of the improvements secured but not less than rive Hundred collars ($b00.00) nor more than Five Thousand Dollars ($5,000.00). J) For otheir torms of security listed in Section 3 B, above, there will be no administrative fee. F. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory Improvements shall remain in place until thce 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 securitty 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 varucipatory Iraiprovements. It Subdivider tails 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. Q). oeL;ur,ty snau sjiot expire, ue reaucea or oecome wnony 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 maf4, return receipt requested. h. )ecunry snau:.ne released in the twowing manner: 1) Pertorma3nce secunty 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 Subdivic er. However, no such reduction shall be for an amount less than Ten Percent (10%) of u,e tu,ar penurnrarice security provtaea Tor ine Tartntui perTormance of the actor 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) Participa4ory Improvement security shall be released upon payment by Subdivider of Subdivider's share of the cast ov estimaterd 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, itte 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 orxe or more., outstanding requests by City for performance of work or provision of materials under the terms of the warranty, warrarrrty security shall be retained until the outstanding requests are satisfied or until Subdivider has made other arrangemends satisfactory to the City Engineer. t, d 0.178L,-L8f,- T b t T 1 aaueS 0 i .14ed d9 T: ao SO IT ^oW d. Pei mils Keguired, i;rior to commencing any pnase oT work, 5ubalviaer snail obtain all permits required Tor tiidi prase ui wolK and pay all requireo tees. vvorK pertormea 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 ine acquisition or rear• property not owned by 5ubalvioer or uity, -subdivider shall use its best efforts purchase such real piuperty at a reasonaoie price. In the event tnat 5ubaiviaer 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. C i4 may, oui is not required to, agree to attempt To acquire such real property on behalt of Subdivider. It 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 the original Subdivision Improvement Agreement, which was approved on March 5. 2004, Portions of the Improvements may be completed at a iatei uate, as determined by the c.iry tngineer or as set torth In txniblt 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 irnplovernents. 6aid ranure snail not otnerwise affect the validity of this agreement or Subdivider's obligations hereunder. 7. Force Majeure. In the event that Subdivider is unable to perform within the time limits herein due to strikes, act of God, or other events beyond Subdivider's control. the time limits for obligations affected by such events will be extended by the period of such events. o.HI C CTUYri5iulI. 0uuolvIUe1 may rrtare appllcavon In writing to Ine pity council Tor an extension oT time Tor 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 it it! per turmance or and payment for improvements mat remain incomplete at the time of the extension, and to provide warranty security on completed Improvements. Y. Survey Monuments. Before final approval of street improvements, Subdivider shall Place survey monuments n 1 acwi uance wttn uie pruvisiuns or 5ecuons oo4ao, et sec. or the 5uDaivision Map Act and oT the La uuinta Municipal Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs for monuments set in public streets. 10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation not previously submitted. Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required uucumentatiun ano wiil Inspect the improvements. it 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. S'd O�,BL-LBf,-aTb ITTaqueS -C >i0i-J-4eI dLT:aO SO LT AoN 11_ Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or "Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to the City Engineer. 12. 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. 13. 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 14. City 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 i o. Indemnitication. 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 in Erie event that any requirement or conaition ottnis Agreement is inconsistent with or tails to include one or more provisions of the Conditions of Approval, which document(s) is (are) incorporated herein by reference, the provisions in the Conditions of Approval shall remain in effect and shall control. 11. ocvcrduiuty. in Erie event that any provision or provisions of tnis Agreement are held unentorceable, all provisions not so held shall remain in full force and effect. 18. General Provisions A, Air notices pursuant to tnis Agreement shall be in wnting 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 defivery or refusal indicated on the return receipt. Either party may change its address for notices hereunder by notice to the other given in the manner provided in this subparagraph. B_ The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto. C. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. D. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing party. 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. 9'd Ot,81- LBO-aTf, i T TaqueS -C >jotjged dBT :ao SO LT AOW IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: City of La Quinta t17 t Thomas P. Genovese, City Manager ATTEST: City Clerk SUBDIVIDER: RIVIERA VILLAS, LLC Local Address 78-371 Highway 111 La Quinta, CA 92253 By: rs 1 ��, t►« D��t��o Syr C�� a c- c Title Q By- k r '' , Title: lS a Reviewed and Appro, Approved as to Form 7"95 Calle Tampico La Quinta, CA 92253 760/777-7075 Date Principal Address 300 E. State Street, Suite 100 Redlands, CA 92373 ("3;C PLYA,-,toy.Date Z bat Dat 7 OS Date z'd 0b8L-L8b-aT-1:7 tiiaqueS 'r' Aoiuged dfri':90 so LT A0W CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of On before me, D, t Namo i,j Title of Offircr ;e a J1^e Doe N.Ix, Publ personally appeared personally known to me proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are 8 SUNING CHEN subscribed to the within instrument and Commission # 1464449 ] acknowledged to me that he/she/they executed y-es Notary Public - California I the same in his/her/their authorized San Bernardino County capacity(ies), and that by his/her/their �+ � MyComm. Expires Jain 20.201 � signature(s) on the instrument the person(s), or 0 the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. qn r u. N,!,� Put 1, OPTIONAL Toucgh she fo rmat,o t Plow is not required by law. �t may prove valuable to persons relying on the document and couki prevent �audulent removal and reattachment of this form to another document Description of Attached Document Title or Type of Document Document Date: _ _ _ _ Number of Pages. Signer(s) Other Than Named Above: __- Capacity(ies) Claimed by Signer Si ner"s Name - r-rasrnmr_r.-r'a Individual ( -- I:: u Corporate Officer Title s): Partner Limited General Attorney -in -Fact Trustee � Guardian or Conservator Other Signer is Pepiesentrnr; Exhibit A Security - Tract 33015 �_xk,CpL as umei wise provioea nerein, juDaivicier shall furnish performance security and labor & materials security prior to agendization of the Map for approval by the City Council. Improvements designated as "Participatory" have been or will be constructed by others and consists of infrastructure improvements located around the perimeter of the PGA West Specific Plan area required by the Specific Plan including: street, landscaped median, water, sewer, electric power, storm drain, perimeter landscaping, and perimeter sound attenuation wall installed after January 1992. Subdivider will not be held responsible for participatory improvements other than cost participation as outlined in the Conditions of Approval and herein 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 maybe 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. caoor & matenals 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 Streets Improvements 48,778 48,778 Grading 43,950 43,950 Site Perimeter Wall' 32,000 32,000 Domestic Water 66,700 66,700 5amtation Sewer 14,260 14,260 Monumentation 5.000 0 Construction Subtotal: $210,688 $205,688 Contingency (25% of Project) 59,952 TOTAL: 270,640 Offsite Participatory Improvements z $29,120 0 This improvement item shall be constructed/installed within six (6) months after recordation of the Tract Map. This improvement item wiii be paid in cash, to the City for redistribution to the party who constructs the offsite improvements, prior to final acceptance of the tract improvements. The actual amount will not exceed $29,120 ($16,000/gross acre subdivided), but may be reduced to a lower amount if actual costs confirm a lower participation amount. B'd iTTaqueS •p >101u4ed d6T:aO SO LT AoW