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2005 - 31116 CP Development LP - SIA On-Site & Off-SiteT-itw44QUAr., COUNCIL/RDA MEETING DATE: March 16, 2010 ITEM TITLE: Acceptance of Off -Site Improvements Associated with Parcel Map No. 31116, Centre Pointe, CP Development La Quinta, LLC RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Accept the off -site improvements associated with Parcel Map No. 31116, Centre Pointe, CP Development La Quinta, LLC and authorize staff to release the performance security. Direct staff to release the labor & materials security 90 days after City Council acceptance of the improvements. FISCAL IMPLICATIONS: Acceptance of the off -site improvements will impact the General Fund as follows: Catch basin maintenance is estimated to be $2,500 annually, which will be incorporated in the Public Works Department Account No. 101-7003-431.43- 73 for Storm Drain Maintenance. Median landscape maintenance is estimated to be $2,300 annually, which will be incorporated in the Public Works Department Account No. 101-7003-431.34-04 for Citywide Landscape Maintenance. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Parcel Map No. 31116, Centre Pointe, is located south of Miles Avenue, north of the Coachella Valley Stormwater Channel, east of Washington Street, and west of Adams A Street (Attachment 1). All obligations of the Subdivision Improvement Agreement have been satisfied. Attachment 2 indicates the amount of the warranty security. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Accept the off -site improvements associated with Parcel Map No. 31116, Centre Pointe, CP Development La Quinta, LLC and authorize staff to release the performance security. Direct staff to release the labor & materials security 90 days after City Council acceptance of the improvements; or 2. Do not accept the off -site improvements associated with Parcel Map No. 31116, Centre Pointe, CP Development La Quinta, LLC and do not authorize staff to release the performance security. Do not direct staff to release the labor & materials security 90 days after City Council acceptance of the improvements; or 3. Provide staff with alternative direction. Respectfully submitted, imothy . onas P.E. Public Works Dir or/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Warranty Security Exhibit «.. 234 PM 31116 CENTRE POINTE MILES AVENUE TER RIVER r- -- POINT 1 HAPPY 1 ATTACHMENT 1 F L 9 VICINITY MAP NOT TO SCALE ITEM TITLE: Acceptance of Off -Site Improvements Associated with Parcel Map No. 31116, Centre Pointe APPLICANT: Mr. Richard Oliphant, CP Development La Quinta, LLC V :% ATTACHMENT 2 WARRANTY SECURITY Parcel Map No. 31116 - Off -Site Improvements Development Name: Centre Pointe OFF -SITE IMPROVEMENTS Performance Security' Improvement Descrition Labor& Materials' Original Amount Proposed Reduction WARRANTY AMOUNT Street Improvements (Washington) $104 880 $104 880 90% $10,488 Sidewalk ashin ton/ Miles $71 570 $71 570 90% $7157 Landscaping (Parkway) $49 900 $49 900 90% $4 990 Traffic Signal $125 000 $125 000 90% $12 500 Standard 10% Contingency $35,140 $35,140 100% $0 Professional Fees, Design 10% $38,650 $38,650 100% 1 $0 Professional Fees, Construction (10%) $38,650 $38,650 100% $0 No Plans Contingency 1 $38,650 $38,650 100% $0 Totalsl $5UZ,440 $502,— Performance Security shall be released immediately upon City Council acceptance 2 Labor & Materials Security to remain in place for 90 days after City Council acceptance of improvements. 3 WARRANTY SECURITY (10% of Original Performance Security) shall be received by the City prior to being placed on the agenda for City Council. 1.. 236 Taf 4 4 Quha COUNCIL/RDA MEETING DATE: March 16, 2010 ITEM TITLE: Acceptance of On -Site Improvements Associated with Parcel Map No. 31116, Centre Pointe, CP Development La Quinta, LLC RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: Accept the on -site improvements associated with Parcel Map No. 31116, Centre Pointe, CP Development La Quinta, LLC and authorize staff to release the performance security. Direct staff to release the labor & materials security 90 days after City Council acceptance of the improvements. FISCAL IMPLICATIONS: None. No public improvements will be accepted with this action. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Parcel Map No. 31116, Centre Pointe, is located south of Miles Avenue, north of the Coachella Valley Stormwater Channel, east of Washington Street, and west of Adams Street (Attachment 1). The developer has not constructed sidewalk around Parcels 1 and 2 of Parcel Map No. 31116 but has instead posted a cash deposit for constructing these improvements at a future date. Staff therefore recommends releasing the developer from this obligation. All other obligations of the Subdivision Improvement Agreement have been satisfied. Attachment 2 indicates the amount of the warranty security. Kn 2 3% FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Accept the on -site improvements associated with Parcel Map No. 31116, Centre Pointe, CP Development La Quinta, LLC and authorize staff to release the performance security. Direct staff to release the labor & materials security 90 days after City Council acceptance of the improvements; or 2. Do not accept the on -site improvements associated with Parcel Map No. 31116, Centre Pointe, CP Development La Quinta, LLC and do not authorize staff to release the performance security. Do not direct staff to release the labor & materials security 90 days after City Council acceptance of the improvements; or 3. Provide staff with alternative direction. Respectfully submitted, othy R. o as P.E. Public Work ire r/City Engineer Approved for submission by: YZZ 2���2 Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Warranty Security Exhibit 238 PM 31116 CENTRE POINTE MILES AVENUE "� ATTACHMENT 1 WHITEWATER RIVER I c POINT sTO�'S�c• HAPPY* F � zof o t W z �I m>> VICINITY MAP NOT TO SCALE ITEM TITLE: Acceptance of On -Site Improvements Associated with Parcel Map No. 31116, Centre Pointe rt APPLICANT: Mr. Richard Oliphant, CP Development La Quinta, LLC ».. 2 3 -9 ATTACHMENT 2 WARRANTY SECURITY Parcel Map No. 31116 - On -Site Improvements Development Name: Centre Pointe ON -SITE IMPROVEMENTS Performance Security' Improvement Description Labor& Materials= Original Amount Proposed Reduction WARRANTY AMOUNT' Rough Gradinr1 $63 120 $63 120 90% $6 312 Domestic Water $176 780 $176,780 90% $17678 Sanitary Sewer $138110 $138110 90% $13811 On -site Street Improvements $301 290 $301 290 90% $30 129 Dry Utilities $155,000 $155,000 90% $15,500 Storm Drain Improvements $260,340 $260,340 90% $26,034 Land scapin Irnprovemants $165,920 $165,920 90% $16,592 Monumentation - $7,500 100% $0 Standard 10% Contingency $126,060 $126,810 100% $0 Professional Fees, Design (10%) $138,660 $139,490 100% $0 Professional Fees, Construction 10%) $138,660 $139,490 100% $0 No Plans Contingency $138,660 $139,490 100% $0 Totalsl $1,802,600 1 $1,813,340 — $126,056 Performance Security shall be released immediately upon City Council acceptance 2 Labor & Materials Security to remain in place for 90 days after City Council acceptance of improvements. ' WARRANTY SECURITY (10% of Original Performance Security) shall be received by the City prior to being placed on the agenda for City Council. 'n...'1 240 CITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT PARCEL MAP NO. 31116 ON -SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into the .�� day of Ob by and between CP DEVELOPMENT LA QUINTA, LLC a CALIFORNIA LIMITED LIABILITY COMPANY hereinafter referred to as "Subdivider," and, the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as City. RECITALS: A. Subdivider has prepared and filed a final map or PARCEL map (the "Map") sPARCEL of a unit of land n in the (the of La Quinta, County of Riverside, which unit of land is known a "PARCEL") 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 A 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, constructedutility,landscaping, and other improvements required to be constructed or agreed to be nder 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 cldig conve tructieenor w II of the Improvements, payment of Subdividers fair share of Improvementswhich 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 b proviad dwa by Subdivianty ofder, hereinafter referred to as "warranty securitYfollowaln serve the completion and acceptance of the the improvements for a period of one year 9 Improvements. Subdivider shall furnish performance and payment security warrantor security after to and as a condition of City Council approval of the Map. Subdivider shall provide imp rovements are complete and accepted by the City Council and prior to or concurrently not be required for the final release of performance security. Warranty security shall 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. security nd As part of the obligation secured by each of the performance security, payyacht such secu ty warranty security, and in addition to the face is and mount �easonablesuch expenses security, and fees, including shall include and assure the payment of cos reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby secured. 1 of 7 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. 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, %) of any agency of the state, federal, or local government provides at least Twenty Percent (20 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 2of7 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). 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 oSubdivider. However, no such reduction shall be for an amount less than Ten Percent (10 /o) 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 Improvements. However, if at the end of the one-year warranty period, there are one or more outstanding of the warranty, warranty performance of work or provision of materials under the toms 3of7 security shall be retained until the outstanding requests are satisfied or until Subdivider has made other arrangements satisfactory to the City Engineer. 4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall comply with all provisions of the required permits. 5. Off -site Improvements. When the construction of one or more of the Improvements requires or necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best efforts purchase such real property at a reasonable price. In the event that Subdivider is unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider may request in writing that City attempt to acquire such real property. City may, but is not required to, agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%) of the appraised fair market value of the real property. Any unexpended portion of said advance shall be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval. 6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90) days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise improvement security requirements as necessary to ensure completion of the improvements, and/or to require modifications in the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of this agreement or Subdivider's obligations hereunder. 7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be extended by the period of such events. 8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or conditionally approve the extension with additions or revisions to the terms and conditions of this Agreement. As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to provide warranty security on completed Improvements. Subdivider shall place survey 9. Survey Monuments. Before final approval f oftreet Sectionsr66495,net,sec. of the Subdivision Map Act monuments in accordance with the provisions 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 Subdividers 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. 4of7 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, 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. 5 of 7 C. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. D. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing party. F. Any failure or delay by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provided for hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 760/ .77-7075 Thomas P. Genovese, City Manager ATTEST: Principal Address Mr. Richard R. Oliphant CP Development La Quinta, LLC 77-564 Country Club Drive, #100 P I Desert CA 92211 kh Date am , By: Date Title: MA JA, .114L By: Title: Date Reviewed and Approved: aLl- 6ityngineer Date Approved as t F rm: Z ity Attor ey Date 6 of 7 Exhibit A SECURITY — PARCEL MAP NO. 31116 ON -SITE IMPROVEMENTS Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory Improvements shall remain in place indefinitely until called upon or released by City. Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as specified in Chapter 4, Article 9 of the Subdivision Map Act. As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the PARCEL 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 PARCEL improvements are complete and accepted by the City Council. Improvement Description Performance Labor & Materials Rough Grading (Hold 10%) $ 63,120 $ 63,120 Domestic Water $ 176,780 $ 176,780 Sanitary Sewer $ 138,110 $ 138,110 On -site Street Improvements $ 301,290 $ 301,290 Dry Utilities $ 155,000 $ 155,000 Storm Drain Improvements $ 260,340 $ 260,340 Landscaping Improvements $ 165,920 $ 165,920 Monumentation $ 7,500 $ Totals $ 1,268,060 $ 1,260,560 Standard 10% Contingency $ $ 126,810 1,394,870 $ $ 126,060 1,386,620 Total Construction Cost Professional Fees, Design 10% $ 139,490 $ 138,660 Professional Fees, Const 10% $ 139,490 $ 138,660 No Plans Contingency 10% $ 139,490 $ 138,660 Bond Amount $ 1,813,340 $ 1,802,600 7 of 7 f+Al 10nRMIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of �Riv�cr�de ss. On V 15 ,before me, 6-.?041qd0 jL dwf IRtWb Date Name and Title of Officer (e.g., "Jane DoeP Notary Public") personally appeared ( l t Name(s) of Signer(s) (; IRANaow _ Commission # 1521142 161MyComm NotaryPuNic - Califomia Riverside CounN. Expires Oct 22, 200i3 Place Notary Seal Above -=Apersonally known to me El proved to me an the besis ef setisfe e�tie}et�ee- to be the person(* whose name*} is/aye subscribed to the within instrument and acknowledged to me that he/aheA ey executed the same in his/eit authorized capacity(if,*, and that by his/herteir signatures} on the instrument the person(&), or the entity upon behalf of which the person(o acted, executed the instrument. WIM;X official seal. Signature of Notary Public 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 QQc Title or Type of Document: UW Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator, Other: Signer Is Representing: Number of Pages: RIGHT THUMBPRINT OF SIGNER © 1997 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 Prod. No. b9U1 Keoraer: Lau iou-rree i-ova-otv-vo�1 CITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT PARCEL MAP NO. 31116 OFF -SITE IMPROVEMENTS THIS SUBDIVISSION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into t his 9'A day of 29erred by and between CP Development La Quinta, LLC, a California Limited Liability Company 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 Parcel No. 31116 (the "Parcel") 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, Subdivideris 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 providedbvider, hereinafter referred "payment security," shall assure the payment ofthe costoflabor, 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. T:\Project Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Centre Pointe PM 31116\OFFSITE_SIA.doc 1 of 7 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. 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 TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Centre Pointe PM 31116\OFFSITE_SIA.doc 2of7 warranty security if the warranty security is of the same form and from the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.B., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00). 2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will prepare lien agreements and subordination agreements, administer valuation of the real property and administer the agreements over the life of the lien, all of which require legal assistance and financial advice, Subdivider shall pay to City an administration fee of One Half of One Percent (0.5%) of the estimated cost of the improvements secured but not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00). 3) For other forms of security listed in Section 3 B, above, there will be no administrative fee. E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory Improvements shall remain in place until the Participatory Improvements are constructed and actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty security shall not be required for Participatory Improvements. Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit said cash within 30 days of the date of the written demand from City, City may present a written demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City the lesser of: 1) the amount demanded, or 2) the amount of the security. F. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including non-payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated in this Agreement, 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 Parcel 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 TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Centre Pointe PM 31116\OFFSITE_SIA.doc 3of7 security shall be retained until the outstanding requests are satisfied or until Subdivider has made other arrangements satisfactory to the City Engineer. 4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall comply with all provisions of the required permits. 5. Off -site Improvements. When the construction of one or more of the Improvements requires or necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best efforts purchase such real property at a reasonable price. In the event that Subdivider is unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider may request in writing that City attempt to acquire such real property. City may, but is not required to, agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said separate agreement shall provide that Subdivider, advance to City One Hundred Fifty Percent (150%) of the appraised fair market value of the real property. Any unexpended portion of said advance shall be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval. 6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90) days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise improvement security requirements as necessary to ensure completion of the improvements, and/or to require modifications in the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of this agreement or Subdivider's obligations hereunder. 7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be extended by the period of such events. 8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or conditionally approve the extension with additions or revisions to the terms and conditions of this Agreement. As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to provide warranty security on completed Improvements. 9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs for monuments set in public streets. 10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation not previously submitted. TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Centre Pointe PM 31116\OFFSITE_SIA.doc 4 of 7 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, 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. TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Centre Pointe PM 31116\OFFSITE_SIA.doc 5of7 C. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. D. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing Party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing party. F. Any failure or delay by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provided for hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. CITY: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92247 77-7075 Thomas P. Genovese, City Manager Subdivider Address: Date Mr. Richard R. Oliphant CP Development La Quinta, LLC 77-564 Country Club Drive, #100 Palm Desert, A 92211 By. l — Off- b � Date Title:�- By: Title: Reviewed and Approved: 4cingin Date Approved s to Fo Cit Attorne Date 3 -/ y- 6),5- Date TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Centre Pointe PM 31116\OFFSITE_SIA.doc 6 of 7 Exhibit A OFF -SITE SECURITY — PARCEL MAP NO.31116 Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory Improvements shall remain in place indefinitely until called upon or released by City. Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as specified in Chapter 4, Article 9 of the Subdivision Map Act. As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the Parcel 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 Parcel improvements are complete and accepted by the City Council. Improvement Description Street Improvements (Washington) Sidewalk (Washington / Miles) Landscaping (Parkway) * Traffic Signal (100%) Washington/Seeley Totals Standard 10% Contingency Total Construction Cost Professional Fees, Design 10% Professional Fees, Const 10% No Plans Contingency 10% Bond Amount Performance Labor & Materials $ 104,880 $ 104,880 $ 71,570 $ 71,570 $ 49,900 $ 49,900 $ 125,000 $ 125,000 $ 351,350 $ 351,350 $ 35,140 $ 35,140 $ 386,490 $ 386,490 $ 38,650 $ 38,650 $ 38,650 $ 38,650 $ 38,650 $ 38,650 $ 502,440 $ 502,440 * To be design and built when warrants permit. TAProject Development Division\Development Projects\Agreements\SIA\SIAs in Progress\Centre Pointe PM 31116\OFFSITE_SIA.doc 7of7 ceLIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of Calif nia ,j ss. County of �'J 'I 0� , On ,before me Date Name and Titl of Officer (e.g., "Jae Doe, Notary Public") personally a eared p Y PP ' C. SRANDOW Commlulon # 1521142 Notary PubNc - CdKomb RN*fdde CourdV My Comm. Eq*oOct 22, Place Notary Seal Above of Signer(s) personally known to me to be the personal- whose name(s) is/are. subscribed to the within instrument and acknowledged to me that he/s*eftlmT executed the same in hishteeritl eir authorized capacity(iso, and that by his/hefMve r signature(,s�-on the instrument the person(, or the entity upon behalf of which the persons} acted, executed the instrument. WIT S my iSignatuareof official seal. otary Public 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 Attache Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer —Title (s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Gua N Oth( Signer Is Representing Im Number of Pages: u& RIGHT THUMBPRINT OF SIGNER op of thumb here © 1997 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 - Chatsworth, CA 91313-2402 Nroo. No. Maui meoruer. k.dn lull-r-lCc 1- V I RECORDING REQUESTED BY: NORTH AMERICAN TITLE CO. AND WHEN RECORDED MAIL TO: Lennar Corporate — Western Region DRE Attn: Ms. Trudie Wilson 25 Enterprise, Ste. 300 Aliso Viejo, CA 92656 DOC * 2007-0234698 04/06/2007 00:00A Foe:117.00 Page 1 of 77 Recorded !n Official Records County of Riverside Lorry Y. Yard Assessor, County Clark 6 Recorder 1111111111111111111111111111111111011111111111111101 S I R I U I PAGE I SIZE I DA I MISC I LONGI RFD I COPY M A L 1465 1426 I PCOR I NCOR SMF 7003904-27 AGREEMENT ESTABLISHING EASEMENTS, MAINTENANCE AND COST SHARING OBLIGATIONS A0 THIS AGREEMENT ESTABLISHING EASEMENTS, MAINTENANCE AND COST SHARING OBLIGATIONS ("Agreement') is dated as of this day of -%_ 2002_, and made and entered into by LENNAR HOMES OF CALIFORNIA, INC.,"a California corporation ("Lennar") and CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company ("CP Development'), with reference to the facts set forth below: RECITALS A. Lennar is the owner of Parcel 2 of Parcel Map No. 31116 situated in the City of La Quinta ("City"), County of Riverside, State of California ("Parcel 2"), as more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference ("Lennar Property"), which Lennar is developing into a multi -phase condominium community commonly known as "La Quinta Desert Villas" ("Community"). A homeowners' association to be known as the "La Quints Desert Villas Community Association" will be established by Lennar as a California non-profit mutual benefit corporation to govern and maintain the Community ("Community Association"). Additionally, the Community Association shall be responsible for the maintenance, repair and/or replacement of the Community Association Property within the Community. Lennar or the Community Association (after Lennar assigns its rights and responsibilities under this Agreement pursuant to Section 5.1 below) shall arrange, pay for and monitor the maintenance, repair and/or replacement of the common improvements, streets, landscaping and lighting services and related utilities serving certain specifically identified areas shared by the parties to this Agreement as identified hereinbelow. B. CP Development is the owner of those certain Lots "B," "C," "F," "G," "H," and Parcels 1, 3, 4, and 5, as shown on Parcel Map No. 31116, as more particularly described on Exhibit "B", attached hereto and incorporated herein by this reference ("CP Development Property"), which are adjacent to the Community and which CP Development intends to develop into a hotel, restaurants and ancillary uses thereto, along with other residential development. CP Development or CP Development's successors in interest of the CP Development Property shall pay to the Community Association the Allocable Share (as defined and set forth below in Article 4) of the maintenance expenses of the various common improvements, streets, landscaping and MOOLennw\ aQuintaDaenViIl=NCm%SharingAgmL114C11 3.16-07 J lighting services and related utilities serving certain specifically identified areas shared by the parties to this Agreement as identified hereinbelow. C. Lennar intends to develop the private streets and parking areas ("Lennar Streets and Parking Areas") within the Community which include, without limitation, curbs, gutters, sidewalks, striping, and other related street improvements, within Parcel 2 of Parcel Map No. 31116, as shown and described on the Condominium Plan recorded on February 16, 2007, as Instrument No. 2007-0113521, in the Office of the County Recorder of Riverside County. The Lennar Streets and Parking Areas provide pedestrian and vehicular access to and parking for the Lennar Property and vehicular access to the CP Development Property. D. Lennar will pay for and arrange for the maintenance, repair and/or replacement of the asphalt portion of the streets within Parcel 2, including the stamped concrete entryway from See Drive leading into Parcel 2 and all light poles within such Parcel 2 ("Shared Road"), as shown on Exhibit "C", attached hereto and incorporated herein by this reference. V E. Lennar will pay for and arrange for the Common Utilities (as defined herein) servicing the Shared Road and the Perimeter Improvements (as defined below), as well as maintenance by the appropriate municipality or district thereof, including the sewer and storm drains, costs for all Shared Road and Perimeter Improvement lighting, trash pickup, and main utility distribution lines ("Common Utilities"). �—� F. Lennar will pay for and manage the maintenance, repair and/or replacement of the perimeter walls of the Lennar Property and the CP Development Property, the landscaping of Lots "B," "C," "F," "G," and "H," and any light poles within such Lots, the concrete sidewalks around the perimeter of Parcels 2 and 5 which run by and through the twenty foot (20') wide Landscape/Pedestrian Easement abutting Seeley Drive and any other portions of the landscape areas within said 20' wide Landscape/Pedestrian Easement to the extent that the City does not provide maintenance thereof, and all light poles within such Landscape/Pedestrian Easement not maintained by the City ("Perimeter Improvements"), all as shown on the Parcel Map for Parcel No. 31116 and Exhibit "C" hereto. G. Neither the planters within the Lennar Property and CP Development Property nor the signage for and within the Lennar Property and CP Development Property are subject to this Agreement, and the maintenance, repair and/or replacement of such signage and planters shall be paid for and arranged by the owner of the property on which such signage and planters are affixed. H. CP Development, or its successor in interest, shall reimburse Lennar, Lennar Assignee or its successors in interest, as applicable, for the Allocable Share of the costs for the maintenance, repair and/or replacement of the Shared Road, the Common Utilities and the Perimeter Improvements, as described in section 4.1 hereof. I. CP Development and Lennar desire to impose certain restrictions and covenants and create certain easements regarding maintenance and operation of the facilities and improvements referred to in Paragraphs A through H, inclusive, by Lennar under this Agreement, unless otherwise stated herein. 2 MCC\e.ennat\UQuintaDesw V illu%CostSWr,gAgmL\ 14C\I 3.16.07 NOW THEREFORE, in consideration of the promises, covenants and agreements set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: ARTICLE 1 DEFINITIONS Except as the context otherwise requires, the defined terms set forth below shall have the meaning set forth below. 1.1 Actual Shared Expenses shall Expenses actually incurred by Lennar for the Lennar and delivered to CP Development. nean and refer to a statement of the Shared immediately preceding fiscal year prepared by 1.2 Allocable Share shall mean and refer to the percentage set forth in Section 4.1 that CP Development shall pay of the Estimated Shared Expenses or the Actual Shared Expenses, as applicable. 1.3 Association Pronertv shall mean and refer to all real property owned, from time to time, in fee title by the Community Association, as defined below. 1.4 Agreement shall mean and refer to this Agreement Establishing Easements, Maintenance and Cost Sharing Obligations and any amendments thereto. 1.5 Community shall mean and refer to La Quinta Desert Villas, as more particularly described in Exhibit "A" hereto.Community Association shall mean and refer to the La Quinta Desert Villas Community Association, a California non-profit mutual benefit corporation, which will be formed to govern and manage the Community. 1.7 Community Declaration shall mean and refer to the Declaration of Conditions, Covenants and Restrictions and Reservation of Easements for La Quinta Desert Villas recorded on February 20, 2007, as Instrument No. 2007-115995, in the official records of the County Recorder for the County of Riverside. 1.8 Community Maintenance Manual shall mean and refer to the manual which may be prepared by Declarant or its consultants and provided to the Community Association, specifying rights and obligations for maintenance of the Common Utilities, the Perimeter Improvements and the Shared Road, as updated and amended from time to time. 1.9 Community Resident shall mean and refer to (i) the record owner, whether one (l ) or more persons or entities, including Lennar, of any residence in the Community excluding those having such interest merely as security for the performance of an obligation; (ii) the tenants, subtenants and occupants of any residence in the Community; and (iii) guests and invitees of the parties described in item (i) or (ii) above. 1.10 CP Development Prooertv shall mean and refer to the real property (and all improvements thereon) described in Exhibit "B". MMLnnaAtaQuimaDesm ViIWToslSha'ingAgmL%1401 3.16-07 1.11 CP Development Streets and Parking Areas shall mean and refer to the private streets and parking areas (including pavement and striping) within the CP Development Property. 1.12 Declarant shall mean and refer to LENNAR HOMES OF CALIFORNIA, INC., a California corporation. 1.13 Default Interest Rate shall mean and refer to the lesser of (i) five percent (5%) per annum in excess of the "Prime Rate," or (ii) the highest rate allowed by law. The "Prime Rate" shall be the rate announced as such from time to time by Bank of America or its successor. If there shall be no such announced rate of such bank or its successor, then the "Prime Rate" shall be such equivalent rate as is charged from time to time by major money -center banks. 1.14 Estimated Shared Expenses shall mean and refer to the estimate of the Shared Expenses to be incurred during the next fiscal year prepared by the Community Association and delivered to CP Development as described herein. 1.15 Hotel shall mean and refer to the hotel and any related improvements constructed on Parcel 4 of Parcel Map No. 31116. 1.16 Hotel Guest shall mean and refer to a registered guest of the Hotel, and any family members and guests thereof. 1.17 Installment shall mean and refer to each installment of Shared Expenses payable by CP Development under this Agreement. 1.18 Lennar Property shall mean and refer to the real property (and all improvements thereon) described in Exhibit "A". 1.19 Maintenance Obli ations shall mean and refer to the obligations to perform (i) all reasonable maintenance consistent with the terms of the Community Maintenance Manual and Community Declaration, any maintenance obligations and schedules in any warranty offered by Declarant, or any maintenance obligations and schedules otherwise provided by Lennar, or reasonable maintenance schedules or recommendations of applicable manufacturers; (ii) all commonly accepted maintenance practices to prolong the life of the materials and construction in the Lennar Property and CP Development Property, as updated and amended from time to time; and (iii) all maintenance required to be performed and services to be provided pursuant to this Agreement. 1.20 Owner (of real property on Parcels 1, 4 and 5 or Parcel Map No. 31116, other than a residence in the Community) shall mean and refer to CP Development (including CP Development's successors in interest). Parcel 3 of Parcel Map No. 31116 ("Parcel 3') may at some point be annexed into the Community Association, and shall at that time become the sole maintenance responsibility thereof. In the event such annexation into the Community occurs, the Allocable Share paid by CP Development pursuant to this Agreement shall be equitably reduced and the Allocable Share attributable to Parcel 3 shall be bome by the owner thereof. 4 MM emar\LaQuimaDesmVillas\CoslSharingAgml.\14C\I 3-1607 1.21 Permittee(s) shall mean and refer to tenants, subtenants, occupants, employees, contractors, concessionaires, licensees, customers and invitees of the CP Development Property. 1.22 Shared Expenses shall mean and refer to the costs of maintaining, repairing, operating and/or replacing the Shared Road (excluding signage and parking stall striping, which shall be maintained and/or replaced by the party on whose property the signage or parking stall striping is affixed) referred to in Paragraph D, the Perimeter Improvements referred to in Paragraph F above, and the cost of providing, maintaining, repairing and/or replacing the Common Utilities referred to in Paragraph E above, all as shown on Exhibit "D" hereto. 1.23 Shared Road shall mean and refer to the private streets (excluding curbs, pavement and parking stall striping) within Parcel 2, including the stamped concrete entryway from Seeley Drive into Parcel 2 and all light poles within such Parcel 2, as shown on Exhibit "C" hereto. ARTICLE 2 EASEMENTS 2.1 Street and Parking Area Easements.Community Access. Lennar hereby grants CP Development, for CP Development's benefit and the benefit of all CP Successors in Interest to CP Development and all Hotel Residents and guests of Hotel Residents, Hotel Guests, and Permittee(s), a nonexclusive perpetual casement for vehicular and pedestrian ingress, egress and access on, over, under, through and across the Shared Road. The easement herein granted is appurtenant to the CP Development Property and upon conveyance by CP Development of any Lot or Parcel in the CP Development Property to a CP Successor in Interest, the conveyance of property rights to Permittee(s) of the CP Development Property and rights granted to any Hotel Guest, the easement shall be appurtenant to such property right so conveyed. 2.1.2 CP Development Property Access. CP Development hereby grants the Lennar, for Lennar's benefit and the benefit of the present and future Community Residents, a nonexclusive perpetual easement for: (a) maintenance, repair and/or replacement of any part of the CP Development Property subject to Lennar's maintenance obligations under the terms of this Agreement, and (b) vehicular and pedestrian ingress, egress and access on, over, under, through and across the portion of the private streets on the CP Development Property, subject to all applicable signage and other such restrictions. The easement herein granted is appurtenant to the Lennar Property and upon conveyance by Lennar of any residence in the Community to a Community Resident or conveyance of any portion of CP Development Property to Lennar, Lennar Assignee or its successors in interest; the easement shall be appurtenant to such property so conveyed. 2.2 Maintenance Easements. CP Development hereby grants to Lennar and any CP Successors in Interest, a nonexclusive easement for maintenance, repair and/or replacement of the Common Utilities described in Paragraph E, and the Perimeter Improvements described in Paragraph F above, located on the CP Development Property. The easement herein granted is appurtenant to the Lennar Property and upon conveyance by Lennar of all or any portion of or property right to the Lennar Property to Lennar Assignee or its successor in interest, the easement shall be appurtenant to such property or property right so conveyed. 5 MMLmnaALaQuimaDeurtVilluTwtSharingABmt.\ 1401 3-16-07 2.3 Easements Subiect to Items of Record. The easements granted pursuant to this Article 2 are subject to encumbrances of record prior to the recordation of this Agreement, except for deeds of trust, mortgages or mechanics' liens of record. ARTICLE 3 MAINTENANCE AND ADMINISTRATION 3.1 Maintenance. Repair and Replacement of the Shared Road. Lennar shall have the obligation to maintain, repair and/or replace the Shared Road (as set forth in Paragraph D) in a good condition of maintenance and repair, and in accordance with the Maintenance Obligations. Such Maintenance Obligations shall include the obligation to maintain, repair and replace the asphalt of the Shared Road in a smooth, level and evenly covered condition with the type of material originally installed or of similar quality, use and durability. Such Maintenance Obligations shall also include, without limitation, placing, keeping in repair, and replacing any necessary and appropriate striping lines (not including parking stall striping), and periodic sweeping and debris removal. Lennar shall not have the obligation to maintain, repair or replace any signage within the CP Development Streets or Parking Areas or planters serviced by water lines owned by CP Development; such maintenance, repair and/or replacement shall be arranged and paid for by CP Development or an entity authorized by CP Development to conduct such maintenance, repair and/or replacement. All maintenance work to be performed pursuant to this Agreement shall be performed up to the quality standards, and any applicable guidelines, of the City of La Quinta. 3.2 Other Obligations. Lennar shall be responsible for the services and maintenance, repair and/or replacement responsibilities set forth in Paragraphs E and F above, including the maintenance, repair and/or replacement of the Perimeter Improvements. 3.3 Failure to Maintain. In the event that Lennar fails to perform its Maintenance Obligations, as provided herein, substantially in accordance with the standards set forth herein, CP Development may notify Lennar (or Lennar Assignee or its successor in interest) of its failure to perform its Maintenance Obligations hereunder, such notice to specifically set forth the maintenance which was not performed. Within ten (10) days following such notice, CP Development shall meet and confer in good faith with Lennar to present and discuss the Maintenance Obligations that were not performed and arrange for performance of such Maintenance Obligations. If, following such conference, Lennar fails to perform its Maintenance Obligations in accordance with the reasonable maintenance standards and schedule established at the conference (or, if such failure cannot be cured within such period, Lennar fails to commence to cure within such agreed upon schedule, or thereafter fails to diligently proceed to complete the cure), CP Development or its successor in interest shall have the right, but not the obligation, to cure Lennar's default of its Maintenance Obligations pursuant to the terns of this Agreement by delivering at least fifteen (15) days' prior written notice to Lennar of CP Development's exercise of its right to cure the default. After CP Development completes the maintenance responsibilities of Lennar as provided above, CP Development shall deliver an invoice to Lennar for the costs and expenses incurred in performing such maintenance ("Maintenance Expenses"). Lennar shall reimburse CP Development for fifty percent (501/o) of the Maintenance Expenses within thirty (30) days after receipt of such invoice. Lennar's share of the Maintenance Expenses not paid for when due will be subject to a 10% late charge, and 6 MCOLe r\LaQuimapesenVi11askCostSharingAgmt.\I401 3.16-07 shall bear interest at the Default Interest Rate. In the event that Lennar's failure to perform its Maintenance Obligations causes or results in a situation that poses a threat of serious harm to persons or property, then to the extent necessary to remove such threat of serious harm, CP Development shall have the right, but not the obligation, to perform the delinquent Maintenance Obligations ("Safety Maintenance") without giving the above referenced notice and right to cure. Fifty percent (50%) of the expenses incurred by CP Development due to Safety Maintenance shall be repaid to CP Development by Lennar as described above. 3.4 Meetings. Once the Association has assumed Lennar's maintenance responsibilities hereunder as provided in Section 5.1 below, at the request of CP Development, the,Board of Directors of the Community Association ("Board") and CP Development shall meet within thirty (30) days of such request to discuss the operation, maintenance, repair and/or replacement of the Shared Road, the Perimeter Improvements, and/or the Common Utilities. The Board and CP Development shall have the right to decide to create a joint committee comprised of members of CP Development and the Board ("Cost Sharing Committee") to advise the Board on issues related to the maintenance and operation of the Shared Road, the Perimeter Improvements, and/or the Common Utilities as provided herein. 3.5 Rules and Regulations for Use of the Lennar Streets and Parking Areas and the CP Develooment Streets and Parking Areas. The Cost Sharing Committee shall promulgate uniform and consistent rules and regulations applicable to the use of the Lennar Streets and Parking Areas and the CP Development Streets and Parking Areas by the Residents and/or Permittee(s) of both the Community and CP Development Property, and the parties shall each use their best efforts to avoid any inconsistency between such joint rules and regulations and the respective rules and regulations of the Community and CP Development Property. Specifically, the Cost Sharing Committee shall not promulgate any rules and regulations that conflict with any provision of the Community Declaration. ARTICLE 4 EXPENSES 4.1 Allocable Share Contribution. CP Development shall pay its Allocable Share in accordance with the provisions set forth herein. CP Development's Allocable Share for the maintenance, repair and/or replacement of the Shared Road, the Common Utilities and the Perimeter Improvements shall be fifty percent (50%) of the Shared Expenses. 4.2 Payment of Allocable Share. 4.2.1 Budget. Not less than forty-five (45) days nor more than sixty (60) days prior to the beginning of each calendar year, Lennar shall provide to CP Development the Estimated Shared Expenses for the maintenance responsibilities and services set forth in Paragraphs D, E and F for the subsequent calendar year together with a statement setting forth the amount of the CP Development's Allocable Share of such Estimated Shared Expenses. 4.2.2 Payment of Allocable Share. CP Development shall pay to the Community Association on the tenth (loth) day of each month in advance, CP Development's Allocable Share of the Estimated Shared Expenses for that period. No later than ninety (90) days MCCA. iUnQuintaDesenVillu\CosiSharingAgmt.\I401 3.16-07 after the end of each fiscal year, Lennar shall deliver to CP Development a summary describing the Actual Shared Expenses. If the Allocable Share of the Estimated Shared Expenses for any fiscal year exceeds the Actual Shared Expenses for such year allocable to CP Development, Lennar shall reduce the contribution of CP Development for the following fiscal year by such excess amount. If the Allocable Share of the Actual Shared Expenses exceeds the Allocable Share of the Estimated Shared Expenses, then CP Development shall pay such excess amount to the Community Association within thirty (30) days after receipt of a statement of the Actual Shared Expenses for such year. 4.3 Payment Commencement Date. After the Community Association has assumed the obligations of Lennar hereunder in accordance with Section 5.1 hereof, the obligation of CP Development to pay such amounts to the Community Association shall commence upon the tenth (10th) day of the month following the conveyance of the first residence to a Community Resident under a Public Report in the first (1st) Phaseof the Community ("Payment Commencement Date"). 4.3.1 Late Payments. If CP Development fails to pay its Allocable Share within fifteen (15) days after the due date therefor, then a late charge in the amount of ten percent (10%) of the amount of the delinquent amount due, interest charged at the Default Interest Rate commencing from the date of delinquency, and reasonable costs of collection, including attorneys' fees and costs, shall be levied by the Community Association. 4.3.2 Nonpayment of Shared Expenses. An Installment is delinquent if not paid within thirty (30) days after the due date as established by this Agreement. If an Installment is not paid within thirty (30) days after the due date, such Installment plus all reasonable costs of collection (including attorneys' fees) and late charges as provided herein shall bear interest at the maximum rate permitted by law, commencing thirty (30) days after the due date until paid. 4.3.2.1 Additionally, if an Installment is not paid within thirty (30) days after the due date for such Installment, the Association shall have the right to cease such maintenance, repair and/or replacement obligations required by this Agreement of any part of the Perimeter Improvements. Such maintenance, repair and/or replacement obligations shall resume upon the Association's receipt of all due and payable Installments plus late charges and/or interest due on the original Installment amount. 4.3.3 Books and Records. CP Development shall be entitled to inspect and copy at CP Development's sole expense the books and records of the Community Association relating to the Shared Expenses upon reasonable notice to the Community Association during normal business hours. CP Development may NOT remove the books and records from the Community Association's office (or any area in which the requested books and records are stored). CP Development shall reimburse the Community Association any copies made with copiers or other equipment belonging to or leased to the Community Association. The Community Association shall deliver to CP Development the annual audit of the Community Association budget applicable to the Actual Shared Expenses no later than one hundred twenty (120) days after the expiration of the applicable calendar year. MCC\La=A aQuintaDesertVillas\CostShatingAgmtA1401 3-16-07 4.3.4 Limitation on Increases. Except in the case of an Emergency (as defined below), the amount of CP Development's Allocable Share of the Estimated Shared Expenses may not be more than ten percent (10%) greater than the amount of CP Development's Allocable Share of the Actual Shared Expenses for the preceding year unless Lennar obtains the prior written approval of the proposed increase from CP Development, which consent will not be unreasonably withheld. For the purpose of this Section, an "Emergency" shall mean any one of the following: 4.3.4.1 an extraordinary expense required by an order of a court, including costs and expenses related to the defense of, settlement for, and/or awards resulting from, claims and actions related to the Shared Road or Perimeter Improvements (including applicable improvements thereon) to which this Agreement applies, excluding costs and expenses arising from a default or breach by Lennar of its obligations pursuant to this Agreement; 4.3.4.2 an extraordinary and unforeseeable expense necessary to repair or maintain the Shared Road or Perimeter Improvements (including applicable improvements thereon) to which this Agreement applies where a threat to personal safety or property is discovered; or 4.3.4.3 an extraordinary expense necessary to repair or maintain the Shared Road or Perimeter Improvements (including applicable improvements thereon) to which this Agreement applies that could not have been reasonably foreseen by the Community Association in preparing and distributing the statement of Estimated Shared Expenses required hereunder. 4.4 Capital Imorovements. Any expense from a capital improvement within the Shared Road or Perimeter Improvements to which this Agreement applies which is not included in the Estimated Shared Expenses and exceeds five percent (5%) of the Estimated Shared Expenses for the then current calendar year, requires the consent of CP Development, or CP Development successor in interest in ownership of Parcel 4 of Parcel Map No. 31116, to approve or render effective such increase which consent will not be unreasonably withheld ("Capita! Improvement Increase"). For purposes of this Section, the consent of the President and any other officer of CP Development shall be effective to constitute the consent of CP Development in its entirety. It shall be the responsibility of Lennar to obtain any assessments or approvals of the Community Residents and it shall be the responsibility of CP Development to obtain any assessments or approvals of any Permittee(s) of the CP Development Property, as may be required under the Community Declaration or by any rules, regulations, agreements or requirements set forth by CP Development, to which an Owner and/or Permittee(s) of the CP Development Property is/are bound, respectively. CP Development and Lennar shall be responsible for the same percentage(s) of the Capital Improvement Increase as described in Section 4.1 (50°/a) unless otherwise mutually agreed upon by CP Development and Lennar ("Capita! Improvement Fee"). Such Capital Improvement Fee shall be paid by CP Development within forty-five (45) days after the date approved by CP Development, as provided above. ARTICLE 5 MISCELLANEOUS PROVISIONS 9 M CCU=nmU.iQWntaDmeri V illw\CwtSMringAgmt.\ I4L\1 3-1"7 5.1 Assignment. From and after the time of the sale to the general public of the first Unit within the Community, Lennar shall assign all of its maintenance and repair responsibilities, easement rights and interests under this Agreement to the Community Association, without the prior written consent of CP Development. Upon such assignment to the Community Association, provided that the Community Association has assumed, in writing, all of Lennar's obligations and liabilities arising hereunder, Lennar shall be automatically released from all obligations and liability arising under this Agreement after the date of such assignment provided, however, that Lennar shall remain subject to any easements granted and butdening Lennar Property until such property is conveyed, and upon such conveyance, the grantee shall take the Lennar Property subject to any and all such easement. CP Development shall have the right to assign all of its rights and interests under this Agreement to any successor in interest to the CP Development Property without the prior written consent of Lennar or the Community Association. Upon such assignment and acceptance and assumption of any such assignment by CP Development's successor in interest, CP Development shall be automatically released from all obligations and liability arising under this Agreement after the date of such assignment. 5.2 Insurance Obligations. Lennar and CP Development shall each procure and maintain the policies of insurance described below covering the Lennar Property and the CP Development Property, respectively. Each such policy of insurance procured by either party shall name the other party as an additional insured. Each such policy shall also name the City of La Quinta and the La Quinta Redevelopment Agency ("Agency") as additional insureds until the City signs off on the last final inspection of the last portion of the improvements on the Lennar Property and/or the CP Development Property, respectively. Required policies are as follows: A. A policy of commercial general liability insurance written on a per occurrence basis in an amount not les than: (A) for death and bodily injury, either (i) a combined single limit of Three Million Dollars ($3,000,000) or (ii) Three Million Dollars ($3,000,000) per person and Three Million Dollars ($3,000,000) per occurrence, and Three Million Dollars ($3,000,000) in the aggregate, and (B) for property damage, Three Million Dollars ($3,000,000) per occurrence. B. A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California. and which shall indemnify, insure, and provide legal defense for the other party, the City and the Agency against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by either party in the course of carrying out the work or services contemplated in this Agreement. C. A policy of comprehensive automobile liability insurance written on a per occurrence basis in an amount not less than either (i) bodily injury liability limits of Three Million Dollars ($3,000,000) per person and Three Million Dollars ($3,000,000) per occurrence, and property damage liability limits of Three 'Million Dollars ($3,000,000) per occurrence and Three Million Dollars ($3,000,000) in the aggregate or (ii) combined single limit liability of Three Million Dollars ($3,000,000). Such policy shall'include coverage for owned, non -owned, leased and hired cars. 10 MCCLLennat JUQuima Deaea V i aas5CoslSha,ingAg mt.114C11 3.16-07 All of the above policies shall provide that the insurance may not be cancelled or altered except upon not less than thirty (30) day's prior notice to all additional insureds, and may not require a deductible of more than Twenty -Five Thousand Dollars ($25,000) unless approved in writing by all required additional insureds. 5.3 Cooperation. The parties shall in good faith fully cooperate with each other in connection with the rights and obligations contemplated by this Agreement. 5.4 Enforcement, Violation or breach of any covenant, agreement or provision contained herein shall give to the party in whose favor such covenant, agreement or provision was made, the right to prosecute a proceeding at law or in equity against the person or persons who violated or are attempting to violate any such covenant, agreement or provision, to enjoin or prevent them from doing so, to cause such violation to be remedied and/or to recover damages for such violation. 5.5 Attorneys' Fees. In the event legal proceedings are commenced regarding the enforcement of this Agreement, the prevailing party in any such action shall recover, in addition to any relief granted therein, reasonable attorneys' fees from the other party or parties, which fees shall be included in any judgment rendered in such proceedings. 5.6 Binding on Successors. This Agreement and all of the covenants and conditions herein contained shall be binding upon and shall inure to the benefit of the executors, administrators, heirs, assigns and successors of each of the parties hereto. 5.7 Severability. If any term, provision, covenant or condition of this Agreement is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and each term, provision and covenant shall be valid and enforceable to the fullest extent permitted by law. 5.8 Mediation. In the event of any disputes between any of the parties arising out of this Agreement, including, without limitation, any disputes relating to the maintenance, repair and/or replacement obligations or the payment of Installments of any Parcel or Lot (and any improvement thereon) to which this Agreement applies, the necessity of repairs or replacements or the payment of any costs therefor, the parties agree to submit the matter for mediation to be conducted by JAMS or another mediation service selected by the parties. 5.8.1 If the parties do not reach a binding agreement through mediation, the parties agree to submit the matter for binding arbitration in accordance with Title 9 of the California Code of Civil Procedure and the Commercial Arbitration Rules of the American Arbitration Association. Any determination by such arbitrator shall be based exclusively upon applicable California law and shall be final and binding on the parties and may be entered as a judgment in any court of competent jurisdiction. The prevailing party in any arbitration under this Agreement shall be entitled, in addition to all other damages, to recover reasonable attorneys' fees and costs, including, without limitation, the costs of any such arbitration. 5.9 No Waiver. The waiver or failure to enforce any breach or violation of any covenant herein contained shall not be deemed to be a waiver or abandonment of such covenant, or any waiver of the right to enforce any subsequent breach or violation of such covenant. 11 MCC\Lennar\LaQuintaDeurtVillas\CoslSharingAgmtA 1401 3.16.07 5.10 Notices. Any notices required or permitted to be given under this Agreement shall be in writing and shall be given personally or deemed delivered four (4) days after the notice is mailed to the party with first class postage prepared by certified mail, return receipt requested or upon the next business day after deposit with a nationally recognized overnight courier to CP Development or CP Development successor in interest at the address specified in the records of CP Development or the records of the applicable CP Development successor in interest, and to Lennar or the Community Association at the address specified in the Community Declaration. Written notice of any change of address shall be given in accordance with this Section. 5.11 Mortgagee Protection. No portion of this Agreement or any amendment or violation thereof shall operate to defeat or render invalid, in whole or in part, the rights of the beneficiary, insurer, guarantor, or holder of any mortgage or deed of trust encumbering any portion of the CP Development Property or the Lennar Property; provided that, after foreclosure of any such mortgage or deed of trust, the property foreclosed shall remain subject to this Agreement. 5.12 California Law. This Agreement is being executed and delivered, is intended to be performed, in the State of California, and to the extent permitted by law, the execution, validity, construction and performance of this Agreement shall be construed and enforced in accordance with the laws of the State of California. This Agreement shall be deemed made and entered into in Riverside County. 5.13 Compliance with Laws. CP Development, Lennar, and their respective successors and assigns covenant and agree to comply with all laws and regulations relating to the maintenance and use of the easements or the exercise of any rights granted herein. 5.14 Mutuality: Reciprocity: Runs with Land. All conditions, covenants and agreements contained herein are made for the direct, mutual and reciprocal benefit of each and every part of the Lennar Property and CP Development Property; shall create mutual, equitable servitude and burdens upon the CP Development Property in favor of the Lennar Property; shall create reciprocal, rights and obligations between the respective properties and privity of contract and estate between all owners of the properties, their heirs, successors and assigns; and shall, as to the owner of each property, his or her heirs, successors and assigns, operate as covenants running with the land, for the benefit of the other property. 5.15 Recitals. The hereinabove Recitals are true and correct and are hereby incorporated into this Agreement by reference. 12 MCC LI rNtaQuintaDesenViilu\CostSWngAgmt.\I4C\I 3.16-07 IN WITNESS WHEREOF, this Agreement has been executed as of the date first set forth above. LENNAR HOMES OF CALIFORNIA, INC., a California corporation � By: Name: U.12, 40a n Its: 1/. afl• n j r c c�Or o � �nn�ai A_c0 . _ CP DEVELOPMENT LA QUINTA, LLC., a California limited liability cgnWy p?A►. &4DC4 , 13 MCCd mm>11aQuinlnD"%citVillas\CosiShadngAgmiAI4CU 3.16-07 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. On Aoril 3.2007 before me, K Goch, Notary Public, Personally appeared W. R. Egan personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Qlkj- GCkeH Notary Public Commission N 1560992 Expiration: March 18, 2009 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. (Seal) K GOCH C nmft- loft O mom hammy libb • emrorrlrn It mrdde cow* MyCemn. B�asmtrpr to G K�. h %4-'- Y6 12coei On April 3, 2007, before me, K Goch, Notary Public, Personally appeared Richard R. Oliphant personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. KOSCH Notary Public Commission N 1560992 Expiration: March 18, 2009 (Seal) K GOCH Conurtlylon • 1560992 No"Y Mae • Cagfatia flWenlaaCMWI JO.WCNMLF- bb18,21109 ExP. Mar %$1104VI 14 MCC/l.ennr/1-e Quince Desert VillaslCosl Share Agreementll4C 3-16.07 EXHIBIT "A" LENNAR PROPERTY PARCEL 2 OF PARCEL MAP NO. 31116, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER THAT PARCEL MAP RECORDED IN BOOK 212, PAGES 60 THROUGH 66, INCLUSIVE, OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY. MCDLenmiALaQuintaDmertV illas\CwtSharingAgmL\I4C\ I 3-16-07 EXHIBIT "B" CP DEVELOPMENT PROPERTY PARCELS I, 4 AND 5, AND LETTERED LOTS "B," "C," "F," "G," AND "H," OF PARCEL MAP NO. 31116, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER THAT PARCEL MAP RECORDED IN BOOK 212, PAGES 60 THROUGH 66, INCLUSIVE, OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, MMLennat\InQuinuDmn VillastCmtSharingAgmLV14C\I -16-07 EXHIBIT "C" SHARED ROAD AND PERIMETER IMPROVEMENTS lattached hereto] MMLcmmr\ aQuimaDaMVillas\CostSharingAgmtAI401 3-16-07 EXHIBIT °C° SHARED ROAD AND PERIMETER IMPROVEMENTS -LOT 'B' MILES AVENUE_ _ 1\ N LOT 'I'-y, \7q PAR. 1 LOT 'F' NOT TO SCALE U PAR. 4 LEGEND SHARED COST ITEMS © SINGLE FIXTURE LIGHT POLES 0 DOUBLE FIXTURE LIGHT POLES ® SIDEWALK ® LANDSCAPING AREA ® SHARED ROAD PERIMETER WALLS/TUBULAR STEEL FENCE .d. J � SLOT 'H' l li lotil PAR.)3111 �v0 / SHEET 1 OF 4 0 EXHIBIT °C° SHARED ROAD AND PERIMETER IMPROVEMENTS MILES AVENUE LOT •C' LOT °B' T 0.26 AC. 0.26 AC. I \ o pie Z " • c ►e:_ PARCELl 0.91 AC. PARCEL 2 ♦ \\\ �►eeeoM IN LOT 'F' 0.32 AC. \ �� PARCEL 4 q\ `� 3.42 AC. W Ill U) NOT TO SCALE y �� N ,A LEGEND SHARED COST ITEMS © SINGLE FIXTURE LIGNT POLES DOUBLE FIXTURE LIGHT POLES ® SIDEWALK ® LANDSCAPING AREA ® SHARED ROAD PERIMETER WALLS/TUBULAR STEEL FENCE LOT •S 0.26 AC. y IU W W W co EXHIBIT °C° SHARED ROAD AND PERIMETER IMPROVEMENTS MILES AVENUE LOT •C• 0.26 AC. .OT 113' LOT •Hr 0.54 AC. 0. 12 AC. I ' I I PARCEL 2 I ' 8.63 AC. 1 ' PARCEL 3 , 2.17 AC. / O / / /✓ K WN/ W ZW / Nao Viry� l "Al �,0-A E �i NOT TO SCALE i ' SEELEY END SHARED COST ITEMS © SINGLE FIXTURE LIGHT POLES DOUBLE FIXTURE LIGHT POLES LANDSCAPING AREA SHARED ROAD PERIMETER WALLS/TUBULAR STEEL FENCE MSA Coxsuc,nm, Ixc MmN=o. Smrm s AssoaATE [xc P%Amm o . Crm seuaammo . wm sID aaysrsro 342W Bos Hors DRm . Rio Mm4w ■ CA 922T0 Ns n6% nO-M ■ F" (760) 323.7893 J.N. 1657 SHEET 4 OF 4 EXHIBIT "D" SHARED EXPENSES [attached hereto] MCC\LcnnwUaQuirtaDaMVil1a3\CmtShadngAgmt.\I/C1I 3-16-07 State of California BUDGET WORKSHEET RE Form 623 (Rev. 2/00) Department of Real Estate Appraisal This budget is a good faith estimate from plans prior to construction and/or completion (for new projects) or from a combination of plans and/or site inspections (for existing projects). For existing projects, there may have been historical data as support for some line items, but changes to the project may make historical data not applicable or reliable. This budget was prepared of the purpose of obtaining a public report. The association must adopt a budget in accordance with the California Civil Code. If that budget is less than 10% or greater than 20% from this budget, you should contact the Department of Real Estate. The association may increase or decrease its budget. It is typical for costs to increase as the project ages. The association should conduct a reserve study after its first year of operation to adjust the reserve funding plan for any changes which may have taken place during construction. DRE ME NUMBER (IF KNOWN) DFPIl1Y ASSIGNED FILE (IF KNOWN) SUBDIVISION IDENTI ICATION AND LOCATION NAME AND/OR TRACT NUMBER LA QUINTAQ DESERT VILLAS • SHARED COST BUDGET NAME 70 BE USED IN ADVERTISING (IF STREET ADDRESS (IFANr) 011 MAIN ACCESS ROAD(S) INEARFSTTOWNICRY MI ESIDIREC ION FROM CITY MUM AVENUE /SEELEY DRMF TYPE OF SUBDIVISION Condominium Planned Development Land Project Condominium Conversion Planned Development Mobile Horne Stock Cooperative Stock Cooperative Convention Limited Equity Housing Corporation Community Apartment Out -of -State Undivided Interest NUMBER OP LOTSUNITS PHASE A TOTAL A IN PROIELT PREVIOUS DRE FILE A NUMBER OF ACRES Snared Cost 1 3.402 BUDGET PREPARER NAME ATTENTION TELEPHONE NUMBER MERIT ASSOCIATION SERVICES Susan Finley(949) 44S-6000 ADDRESS CITY & STATE ZIP CODE f POMS Way, Suite 100 Aliso Vicio, CA 92656 CERTIFICATION I dkek" under penalty of perjury that the represenfatfons and answers to questions in INS document and all documents submitted as a pars of the homeowners budget are true and complete to the best of my knowledge and belief. The andersigned certifies that this electronic recreation of Department of Real Estate form RE 623 contains at least the same Information as the DRE approved form ID 0 QW0990001. PREPARED BY: n DATE: MayA6 REVIEWED BY: �'_��dl.se�✓�� \ (REVISED DATE: Dec-06 ID #623W996B001 Page 1 of 15 1 Phase Number. Shared Cost IMPROVEMENTS WORKSHEET If this phase will have any line items shown on pages 3,4 and 5 hereof exempted from payment of assessments under Regulation 2792.16(c), asterisk those items on pages 3, 4 and 5 and list any partially deferred costs on a separate sheet showing calculations and attach. All exempted improvements must be covered by reasonable arrangements for completion. Included Planned Construction Statement (RE 611A) for review. 1. Number of buildings containing residential units. 2. Estimated completion date for the residential units Included in this phase. 3. Estimated completion date for the common area and facilities included in this phase. 4. Type of residential building for this project. 5. Type of construction for these buildings (i.e., steel, concrete, wood frame, etc.). 6. Type of roof (i.e., shake, etc.). 7. Type of paving used in this project. 8. Type of exterior wall for residential buildings. 9. Number of residential units per building. 10. Number of floors per building. 11. Number of bedrooms per unit. 12. Square footage of units. (list number and size of each unit type) 13. Type of parking facilities and number of spaces (i.e., tuck -under, subterranean, carport, open, etc.). Complete 14 and 15 for Phase Condominium Projects Only 14. Have you submitted budgets for all phases to be completed within the next three calendar years? NO_ YES_ 15. If this condominium project involves phasing within a single lot, submit a budget for each phase plus a budget which will be used H future phases are not completed. (Commonly referred to as a worst case budget.) RE FORM 623 ID a62300996B001 Page 2 of 15 -BUDGET SUMMARY PHASE NUMBER: Shared DATE REVISED: December2008 TRACT NUMBER: NUMBER OF UNITS: WA PROJECT: La Quints Desert Villas TOTAL TOTAL 100. FIXED COSTS MONTHLY ANNUALLY 101. PROPERTY TAXES 0.00 0 102. CORPORATE FRANCHISE TAX 0.00 0 103. INSURANCE 83.33 1,000 104. LOCAL LICENSE 8 INSPECTION 0.00 0 105. ESTIMATED INCOME TAXES 0.00 0 100 TOTAL: 83.33 1,000 200.OPERATING COSTS 201. ELECTRICITY 463.20 5,558 LEASED LIGHTING 0.00 0 203. WATER 299.05 3,589 204. GAS 0.00 0 205. TELEPHONE(S) 0.00 0 207. CUSTODIAL AREA 0.00 0 CUSTODIAL SUPPLIES 0.00 0 208. LANDSCAPE AREA (See page 15 for details) 1779.03 21,348 208a. LANDSCAPE SUPPLIES & REPLACEMENT 100.00 1.200 208b. IRRIGATION REPAIR 100.00 1,200 206c. TREE TRIMMING P0.83 250 209. REFUSE DISPOSAL . Estimate 0.00 0 Vendor Name: Telephone Number: 211. PRIVATE STREETS 169.88 2,039 Street Area (Acres): 1.70 212. HEATING & AIR CONDITIONING 0.00 0 Area: 213. POOL / SPA MAINTENANCE 0.00 0 POOL / SPA SUPPLIES 0.00 0 214. TENNIS COURT MAINTENANCE 0.00 0 Number: 215. ACCESS CONTROL No. of Motorized Gates: Type: 0.00 0 Roving Patrol: 4 Stops per Evening 1200.00 14,400 No. of Intercoms/Telephone Entry: 0.00 0 ID #62300996B001 Page 3 of 15 Phase Number. Shared TOTAL TOTAL 200. OPERATING COSTS continued... 217. MISCELLANEOUS: Minor Repairs Light Maintenance & Repairs Fountain Maintenance Office Equipment Maintenance Other 300. RESERVES (See Note 301 - 313 ANNUALLY 100.00 1,200 0.00 0 0.00 0 0.00 0 0.00 0 200 TOTAL: 4232.00 50,784 300 TOTAL: 1177.51 14,130 400. ADMINISTRATION 401. MANAGEMENT • 500.00 6,000 402. LEGAL SERVICES 403. ACCOUNTING 404. MISCELLANEOUS OFFICE EXPENSE 405. EDUCATION 406. ARCHITECTURAL ASSISTANT 400 TOTAL: 500. CONTINGENCY 501. NEW CONSTRUCTION 3% 502. CONVERSIONS 5% 0.00 0 0.00 0 200.00 2,400 0.00 0 0.00 0 700.00 8,400 185.79 2,229 0.00 0 3189.32 It is recommended that a Reserve Study be conducted by an independent reserve analyst who may identify additional components not identified In the scope of the Department of Real Estate Homeowners Association Cost Manual from which this budget is based. The inventory and quantities used in the preparation of this budget are normally derived from plans completed prior to construction and may vary slightly from actual field conditions. The calculated budget is a good faith estimate of the projected costs and should be deemed reliable for no more than one year. The Board of Directors should conduct an annual review of the Association's actual costs and revise the budget accordingly. Depending on the level of service selected by the Association, the amount shown may be insufficient to cover the cost and may be higher. Due to the fluctuating insurance market, the amount budgeted for insurance reflects the current rates quoted by an Insurance representative at the time of budget preparation. Actual cost of insurance upon first close of escrow may differ and have a significant impact on assessments. Salaries noted represent estimated, fully -loaded projections based on needs of the project and number of homeowners to be served. ID k62300996B001 Page 4 of 15 — Phase No.: Shared RESERVES WORKSHEET SO. FT. UNIT REPLACEMENT REMAINING YEARLY COST! REM OR 4 OF COST COST LIFE RESERVE MONTHLY PAINT 17,544 0.09 0 0 1,579 131.58 6- SLUMPSTONE WALLS-LF 1,462 .0.10 0 0 146 12.18 STREETS & DRIVES 74,000 0.08 0 0 6,920 493.33 STREET LIGHTS 61 85.00 0 0 5,185 432.08 SIDEWALKS 20,000 0.04 0 0 800 66.67 LANDSCAPE 53,371 0.01 0 0 500 41.67 ID A623009968001 Page 5 o115 PROJECT INVENTORY Phase Numtier: Shared Site Summary - Total Subdivision Area WA Acres x 43,560 = Total 1. Building(s) footprint 2. Garages or carports 3. Recreational facilities 4. Paved surfaces S. Restricted common areas 6. Special Paving SUM OFI-6 Total Square Feet 0 Square Feet 0 Square Feet 0 Square Feet 74,000 Square Feet 0 Square Feet 0 Square Feet 74,000 Square Feet Subtract the sum of 1 - 6 from the total square feet. TURF & GROUND COVER 53,371 Square Feet The remainder equals the landscaped area, SLOPE 0 Square Feet FUEL MODIFICATION 0 Square Feet NATURAL 0 Square Feet Total Landscaped Area: 53,371 Square Feet Complete the following schedules and transfer totals to summary sheet above. Frequently several buildings will be repeated in the subdivision. These may be combined on one line. Wherever additional space is required, attach computations on a separate sheet of paper. 1. Buildings Containing Units Length x Width = Area Each Bldg. x tM of Buildings = Total Sq. Ft. x = 0 x a 0 x = 0 x a 0 x = 0 x a 0 x a 0 X a 0 Total for Summery Item 1 Above: 0 2. Multiple Detached Garages and Carports x a 0 x a 0 x = 0 x = 0 x = 0 x = 0 Total for Summary Item 2 Above: 0 ID M623009968001 Page 6 of 15 Phase Number. Shared PROJECT INVENTORY (Continuea) 3. Recreation Facilities a. Recreation Room, Club House, Lanai, Other Length x Width a, Office Building x b. Pool x C. spa x d. Wading Pool x e. Tennis Court x I. Other x Total for Summary Item 3 Above: 4. Paved Areas (Streets, Parking, Walkways, Other) Length x Width ASPHALT x SPECIAL PAVING x x Total for Summary Rem 4 Above: S. Restricted Common Area Use (at grade level) Total for Summary Rem 5 Above: 6. Other - Describe and Attach Calculations Total Square Ft. 0 0 0 0 0 0 0 Total Area WA 74,000 0 0 74,000 ID # 62300996B001 Page 7 of 15 Phase Number. Shared WA ROOF RESERVE WORKSHEET Building Number of Flat Roof Wood Roof Buildings Area Area Totals Modifications Grand Totals Composition Roof Area Cement Tile Roof Area x 1.12 x 1.12 x 1.12 0 Take areas of all buildings in Sections 1, 2, and 3a. Add 6% (a 1.06 multiplier) for each foot of roof overhang. In addition, adjust for roof pitch based upon the table below. The table converts horizontal area to roof area. eighth sixth 24ths quarter third half eighths e quarters ROOF PITCH TABLE RISE 3'In 12' 4' in 12' 5' in 12' 6'in 12' 8' in 12' 12' in 12" 15' in 120 18' in 12' MULTIPLIER 1.03 1.06 1.08 1.12 1.20 1.42 1.60 1.80 ID #6230099613001 Page 8 of 15 PAINTING W.' IKSHEET Phasa__nber. Shared EXTERIOR Exterior painting area is determined by measuring the structure to find the perimeter (total distance around) and multiplying that by 10' for each story. Use a separate line for each story if the configuration of the building changes from story to story. Buildings (include garages, recreation buildings) Type of Perimeter x 10 R x No. ofStades x No. of Bldg. = Total Area Surface (fl identical) loft x x - 0 loft x x = loft x x a loft X x = Total Building Paint Area 0 Walls Linear Feet x Height x 2 = Total Area Slump Stone 1,462 6 x 2 = 17,544 x 2 a 0 x 2 = 0 Total wall paint area 17,544 INTERIOR Total exterfo► paint area 17,544 Interior painting reserve Is determined by measuring the room perimeter and multiplying by a' and adding ceiling area. Room'Type Walls x 811. a Wall + Ceiling = Total Area Description Perimeter Area (Length x Width) x 8ft. 0 + a 0 x 8 ft. 0 + - 0 x 8ft. 0 + = 0 x 8ft. 0 + - 0 x 8 h. a 0 + = 0 x 8 ft. = 0 + - 0 Total Interior Paint 0 TOTAL EXTERIOR AND INTERIOR 17,$44 FENCES Fence requiring paint or stain (see Item 312 in manual for wood and wrought iron) Compute separately using higher cost -put on separate line on page 5 of the Reserve Worksheet. Unser Feet x Height x 2 = Total Area 2 0 2 0 2 0 TOTAL FENCE AREA 0 ID 116230099MOI Page 9 of 15 ELECTRICAL ENERGY CONSUMPTION WORKSHEET Phase: Shared A Lights (See Note 1) 1. Interior Lights [ ] (no. of lights) x [ 601 (average wattage) x [ ] (average number of hours in use per day) x .03 2. Exterior Lights [ ] (no. of lights) x [ 100 ] (average wattage) x [ ] (average number of hours in use per day) x .03 3. Pole Lights [ ] (no. of lights) x [ ] (average wattage) x [ ] (average number of hours in use per day) x .03 4. Street Lights [ 611 (no. of lights) x [ 250 ) (average wattage) x [ 12 ] (average number of hours in use per day) x .03 B. Elevators [ ] (no. of cabs) x [ ] (number of stops per cab) x 250 KWH C. Tennis Court Lights [ ] (no. of courts) x 1,000 KWH D. Electrical Heating 025 - 0.65 KWH x [ ) (square feet heated) E. Hot Water Heating [ ] (no. of water heaters) x 320 KWH F. Air Conditioning [ ] (no. of square feet cooler!) x .34 KWH G. Electrical Motors (See notes 2 and 3) Pools) ( 1 (HP of pump) x [ 1 (watts) ( ] (hours of operation per day) x 0.03 [ ] (% of year in operation) x (motors) Wading Pool(s) [ ] (HP of pump) x [ 1 (watts) [ ] (hours of operation per day) x 0.03 [ ] (% of year in operation) x (motors) x x x x _ KWH Per Month 0 W = 0 5,490 = 0 = 0 = 0 a DI 0 0 0 ID fi623009968001 Page 10 of 15 ELECTRICAL'ENEFIGY CONSUAi-LION WORKSHEET (continued) r -, P Snared O. Electrical Motors (continued) Access Gate (a) [ J (HP of motor) x [ ] (watts) x [ J (hours of operation per day) x 0.03 x I ] (% of year In operation) x (no. of gates) = 0 Fountain Pumps (a) [ ] (HP of pump) x [ 1 (watts) x I ] (hours of operation per day) x 0.03 x [ ] (% of year in operation) x (no. of pumps) = 0 Spa (a) ( ] (HP of pump) x [ J' (watts) x [ J (hours of operation per day) x 0.03 x [ ] (% of year in operation) x 2 Motors = 0 Total KWH Per Month: 5,490 H. 1. Total KWH per month 5,490 x 0.08 rate/kwh = $439.20 2. Meter charge [ 1 ] ®of meters x $ 9.00 per meter $9.00 3. Irrigation controllers [ 1 i N of controllers x $ 16.00 per controller = $15.00 Total Monthly Cost: $463.20 UUTity Company Name: Imperial Irrigation District Phone Number. (000) 303.7756 NOTES: 1. Do not include leased lights. Instead use lease agreement with rate schedule with budget work sheet. Put monthly charge in Item 201 leased lights. Use a minimum of 10 hours per day average usage for exterior lighting. 2. Motors are found in swimming pool pumping systems, circulating hot water systems, ventilation systems In subterranean garages, access gates, Interior hallways, and interior stairwells and also in private water systems and fountains. (Hours of use for pool pumps - see Item 201 in the Cost Manual.) 3. Normally 1,000 watts per horsepower should be used. Check plate on motor or manufacturere specifications. It wattage is not listed, it can be calculated by multiplying amps x volts. ID #623009968001 Page 11 of 15 Phase: Shared N/A GAS CONSUMPTION WORKSHEET I. Water Heaters [ ) number of dwelling units in association + [ ] laundry moms + [ ] restroom + [ J recreation rooms a number of units [ ] x 20 therms a 0 2. Pool (am note 1) I ] BTU rating x [ ] hours of daily use x .0003 x [ ] % of year in use a 0 & Spa [ ] (8' diameter spas) x 300 therms a 0 [ I (10' diameter spas) x 350 therms a 0 I ) (12' diameter spas) x 400 therms a 0 4. Central Heating I I BTU rating x [ ] hours of daily use x .0003 x ( J % of year In use a 0 5. Other ( J (number of fireplaoss, BBO's, etc.) x 5 therms a 0 Total Therms: 0 1. Total therms per month 0 x $ 1.40 rate/therm a 0 2. Meter charge ( ) # of meters x $ 8.00 per meter a $0.00 Total Monthly Cost: S0.00 Utility Company Name: The Gas Company Phone Number. (8W) 427-2200 NOTES: 1. The presumption is a recreation pool with heating equipment will be used all year or 100%. For very hot or cold. climates where a heater will not or cannot be used all year, a 70% usage should suffice. Less than a 70% usage will require a Special Note in the Subdivision Public Report. ID 062300996B001 Page 12 of 15 Phase: Shared WATER AND SEWER WORKSHEET A Domestic (use only If units are billed throughout the association) [ ) (number of units -include restrooms & recreation building) x [ ] (rate/100 CF) x 10 = $0,00 8. Irrigation (see note 1) [ 53,3711 (landscape area) x [ 0.69 1 (rate/100 CF) x .0066 $243.05 Fuel Modification (see note 3) ( 0 1 (landscape area) x [ ] (rete/100 CF) x .0011 $0.00 C. Sewers (see note 2) [ ] (charge/unit/month) x ( ] (number of units) _ $0.00 D. Contingency _ $0.00 E. Mater Charge: Specify line size (20, 3", etc.) Y Meter - Estimated [ $66.00 1 (charge/meter/month) x [ 1 ] (number of meters) _ $56.00 Total Monthly Water Cost: $299.05 Utility Company Name: Coachella Valley Water District Phone Number. (760) 398-2651 NOTES: 1. Average usage is four -acre feet of water per acre of landscaping per year. This formula is based on four -acre feet of usage. Some areas like the low desert will require 8 to 12-acre feet of water per acre of landscaping per year and the V figure should be adjusted accordingly. (Example: 4 x figure for B = 12-acre feet.) 2. If some other method of billing is used for the sewage charge and/or this Will not be a common expense, provide a letter from the sanitation district and/or water company (whichever applicable) which so states. 3. The fuel modification zone's irrigation needs have been estimated at 40% of normal landscaping. ID #623009968001 Page 13 of 15 N/A Phase: Shared PRO1%#4TION SCHEDULE WORKSHEET Section I Variable Assessment Computation A. Variable Costs Description Monthly Cost 1. Insurance 2. Domestic Gas (0 common) 3. Domestic Water ('d common) 4. Paint & Roof 6. Hot Water Heater (d common) 7. Other Total Variable Cost B. Total livable square footage of all units from condominium plan: C. Variable Factor (variable monthly costs divided by square footages - variable factor): Multiply this factor by each unit size below in Section 111. Section II Equal Assessment Computation A. Total Monthly Budget Less Variable Costs Total Monthly Equal Costs B. Monthly Base Assessment (total monthly cost divided by number of units - monthly base assessment) Section III Assessment Schedule Unit Size x Variable Factor Variable + Base a Total Mth. x Unit Total Monthly Assessment Assessment Assessment Count Budget' x = + = x = x + e x x = + = x x + = x = VERIFICATION OF COMPUTATIONS Total Monthly Budget (Section III) Total Monthly Budget (Section IIA) Total Assessment x number of units of each type. Section IV Assessment Schedule Highest Lowest divided Lowest % Assessment Assessment by Assessment Differential ID fi62300996B001 Page 14 of 15 SUPPLEME AL WORKSHEET Phase: Office LANDSCAPE A Complete chart and transfer "total landscape cost per year' to line #208 on page 3 (cumulative per phase). TYPE PERCENT AREA ANNUAL COST TOTAL COST per S.F. T V.,Ype Ground Cover 100% 53.371 0.40 21,348 Slopes 0 0.18 0 Fuel Mod. Zones 0 0.05 0 Natural 0 0.01 0 Other Total 100% 53371 TOTAL LANDSCAPE COST B. Please provide Information regarding water requirements of drought resistant Percentage of normal or standard watering requirements and provide source of information. WA if any. Indicate as ROOF NIA A. If there is only one type of roof, with a constant slope factor across all roof surfaces, the following chart may not need to be completed. When this chart Is completed, transfer total roof line Rem on page 5. Building Type of Width of Ouandty Pitch Adjusted Annual Cost Total Annual Roof OvprhaM fine ------••s v•-•�••••••o•.yi n mua,ynar = a.r•. A rer S.F. = Cost x = x = x = x a X x a x a x a x a x a TOTAL ROOF COST PER YEAR B. If a mansard will befrs constructed please provide the measurements and type of material to be used. ID #623009960001 Page 15 of 15 Recording Requested By First American Title NHS WHEN RECORDED RETURN TO: Ealy, Hemphill & Slasdel, LLP 71780 San Jacinto Drive, Suite 1-3 Rancho Mirage, California 92270 Ito-QgzB�'S COPYof Document Recorded on 3A2_JtD as No.4j2 Has not been compared with original. fL%Vi: L51T6 COUNTYRECORDER 201:- AMENDED AND RESTATED AGREEMENT ESTABLISHING EASEMENTS, MAINTENANCE AND COST SHARING OBLIGATIONS CITY of Plar 7NIS INSRIVNENT Fl1E0 FOR AECOAp BY FlflST AAfERICAII 7RlE CO. AS AN ACCONNODANON ON1Y RHAS NOT =WMKDA3 TORS EYECIRWN Ofl A3TD RS EFFECT LIPpI Nr(E. C0ST6PKR1NGA$ Nmoo tMu TABLE OF CONTENTS ARTICLE I: DEFINITIONS.......................................:................................................ 3 ARTICLE II: DESCRIPTION OF PROJECT, DIVISION OF PROPERTY,AND CREATION OF PROPERTY RIGHTS...................................................................................... 7 2.1 Description of Project.......................................................................a............ 7 2.2 Easements Over Common Areas...................................I.............................. 7 2.3 Easements to Accompany Conveyance of Lot ............... 2.4 Delegation of Use......................................................................................... 8 2.5 Reservations and Grants of Easements....................................................... 8 2.6 Owners' Rights and Easements for Utilities ........ :......................................... 8 2.7 Encroachment Easements........................................................................... 9 2.8 No Party Walls............................................................................................ 9 2.9 Maintenance Easement for Units.................................................................. 9 2.10 Maintenance of Drainage Facilities............................................................... 9 2.11 Easements in General.................................................................................. 9 2.12 Rights of Entry and Use.............................:................................I................. 9 2.13 No Subdivision of Common Areas..............................................................10 2.14 No Subdivision of Commercial Lots ............................................... :........... 10 2.15 No View Rights..........................................................................................10 2.16 All Easements Part of Common Plan..........................................................10 ARTICLE III: ASSOCIATION ADMINISTRATION, MEMBERSHIP ANDVOTING RIGHTS...................................................................................................................10 3.1 Association to Operate and Maintain Common Areas................................10 3.2 Membership................................................................................................10 3.3 Transferred Membership.............................................................................11 3.4 Membership Voting Rights..........................................................................11 ARTICLE IV: MAINTENANCE AND ASSESSMENTS.............................................11 4.1 Creation of the Lien and Personal Obligation of Assessments ...................11 " A2 - Purpose -of Assessments ..... , 12 4.3 Assessments......................................................................I....................... 12 A. B. Regular Assessments.. ; ........... I ..........................:..........................:..12 Special Assessments 4.4 ...12 Increases In Assessments........................................................................ 13 4.5 `* Regtfestfor Membership Vote on`Special Assessments. ................... 13 4.6 Division of Assessments ........................................ 13 4.7 Date of Commencement of Regular Assessment; Due Dates....................13 4.8 Effect of Nonpayment of Assessments.......................................................13 4.9 Transfer of Lot by Sale or Foreclosure................:...............:......................13 4,10 Priorities; Enforcement; Remedies............................................................. 14 4.11 Allocation of Assessments upon Further Subdivision.................................16 4.12 Unallocated Taxes..........................................................................16 4.13 Residential Common Expense Contribution.........................................16 ARTICLE V: DUTIES AND POWERS OF THE ASSOCIATION-- .......................19 5.1 Duties...................................................:......................................................19 A. Maintenance...........................................................................................19 B. Insurance................................................................................................19 C. Discharge of Liens ......... ............................... .... ..................... ................. 19 D. Assessments..........................................................................................19 E. Payment of Expenses and Taxes........................................................... 19 F. Enforcement..........:................................................................................20 G. Preparation of Financial Documents...................................................... 20 5.2 Powers........................................................................................................20 A. Utility Service.......................................................................................... 20 S. Easements..............................................................................................20 C. Manager................................................................................................. 20 D. Adoption of Rules..........................................................................:........ 20 E. Access....................................................................................................21 F. Assessments, Liens, Penalties, and Fines.............................................21 G. Enforcement...........................................................................................21 H. Acquisition and Disposition of Property .................................................. 21 I. Loans......................................................................................................22 J. Dedication...............................................................................................22 KContracts.......................................................................................:........ 22 L. Delegation.............................................................................................. 22 M. No Recreational Facilities .......................................................................22 N. Appointment of Trustee.......................................................................... 22 O. Litigation/Arbitration................................................................................22 P. Other Powers.......................................................................................... 22 ARTICLE VI: ARCHITECTURAL CONTROL........................................................... 23 6.1 Purpose of Architectural Controls............................................................... 23 6.2 Requirement for Approval of Plans............................................................. 23 6.3 Architectural Control Committee Membership ............................................ 23 --:_ — ---6.4 _Architectural Control -Committee Action.. 23 6.5 Landscaping............................................................................................... 24 6.6 Solar Energy...............................................................................A............... 24 6.7 Governmental Approval.............................................................................. 24 6.8- Structural Integrity.......................................................................................24 -6.9 Appeals to Board ...... ......................... ....: 24- ARTICLE VII: USE RESTRICTIONS.......:..............................................................25 7.1 Use of Lot................................................................................................... 25 7.2 Nuisances...................................................................................................25 7.3 Vehicle Restrictions.................................................................................:.. 25 7.4 Parking Restrictions....................................................................................25 7.5 Storage....................................................................................................... 25 7.6 Signs, .......................................................................................................... 25 7.7 Animals................:......................................................................................25 C=SHaau QWREa+ErArvr.CM1r 9 7.8 Garbage and Refuse Disposal.................................................................... 25 7.9 Antennas.....................................................................................................26 7.10 Power Equipment and Maintenance........................................................... 26 7.11 Liability of Owners for Damage to Common Area ...................................... 26 7.12 Commonly Metered Utilities........................................................................ 26 7.13 Activities Causing Increase in Insurance Rates .......................................... 26 7.14 Temporary Structures................................................................................. 26 7.15 Owners Right and Obligation to Maintain and Repair ................................ 26 ARTICLE Vill: INSURANCE; DAMAGE OR DESTRUCTION; CONDEMNATION.. 27 8.1 Insurance.................................................................................................... 27 8.2 Damage or Destruction..................:::.......................................................... 28 8.3 Condemnation.......................................:.................................................... 29 ARTICLE IX: GENERAL PROVISIONS..................................................................29 9.1 Enforcement.......................:....................................................................... 29 9.2 Invalidity of Any Provision........................................................................... 29 9.3 Term........................................................................................................... 29 9.4 Amendments...............................................................................................29 9.5 Rights of First Lenders................................................................................ 30 A. Copies of Project Documents............................................................. 30 B. Financial Statement....................:....................................................... 30 C. Notice of Action.................................................................................. 30 D. Amendments to Comply with Lender Requirements .......................... 31 E. Reserves............................................................................................ 31 F. Priority of Liens ............................................... ................................. 31 G. Distribution of Insurance or Condemnation Proceeds ........................ 31 H. Payment of Taxes or insurance by Lenders ....................................... 31 9.6 Limitation of Restrictions on Declarant ....................................................... 32 9.7 Termination of Any Responsibility of Declarant .......................................... 32 9.8 Owners' Compliance................................................................................... 32 9.9.: Notice ..... . ........ ......... ....:......................... ....I.... 33 9.10 Number, Gender......................................................................................... 33 9.11 Captions......................................................................................................33 9.12 Exhibits....................................................................................................... 33 9.13 Attomeys' Fees........................................................................................... 33 9.14 Recitals and Definitions.....:..... :::...,....34 ARTICLE X: ENFORCEMENT................................................................................ 34 10.1 Priority and Defined Terms ................................. ... 34 10.2 Enforcement and Nonwelver....................................................................... 34 10. 2.1 Rights of Enforcement of Project Documents .................................... 34 10.2.2 Procedure for Enforcement................................................................ 34 10.3 Notice of Actions Against Declarant.............;.............................................. 34 10.4 Dispute Notification and Resolution Procedure (Declarant Disputes); Waivers....................................................................................................... 35 10.4.1 Notice................................................................................................. 35 10.4.2 Right to Inspect and Right to Corrective Action .................................. 35 10.4.3 Civil Code Sections 1368.4 and 1375................................................ 36 10.4.4 Mediation............................................................................................36 10.4.5 Judicial Reference.............................................................................. 36 10.4.6 Agreement to Dispute Resolution; Waivers of Jury and Punitive7 Damages............................................................................................ 40 10.4.7 Exceptions to Mediation and Reference; Statutes of Limitation......... 40 cosrsruw WFtEEr BMJ=1rmno RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Emily Perri Hemphill Ealy, Hemphill & Blasdel, LLP 71780 San Jacinto Drive, Suite 1-3 Rancho Mirage, CA 92270 AMENDED AND RESTATED AGREEMENT ESTABLISHING EASEMENTS, MAINTENANCE AND COST SHARING OBLIGATIONS THIS AMENDED AND RESTATED AGREEMENT ESTABLISHING EASEMENTS, MAINTENANCE AND COST SHARING OBLIGATIONS ("Agreemenf) is dated as of this le day of February, 2010, and made and entered into by and among CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company ("CP"), L.Q. HOSPITALITY, LLC, a California limited liability company CLQ"), EISENHOWER MEDICAL CENTER, a California non-profit public benefit corporation ("EMC"), Huy Vu, an individual CHibachi"), DOLPHIN LA QUINTA, LLC, a California limited liability company ("Dolphin"), and HARRY MAVIAN and MAIA MAVIAN, Trustees of The Mavian Family Trust dated 8/15/08, hereinafter referred to as ("Applebees") with reference to the facts set forth below: RECITALS A. CP is the owner of that certain property described as Parcel A of Lot Line Adjustment No. 2008-495 in the City of La Quinta ("Clty"), County of Riverside, State of California ("Parcel 2AJ as more particularly described on Exh/b/t "A", attached hereto and incorporated herein by this reference, and CP has or intends to develop the CP Property with condominiums and/or residential units. B. CP is the owner of that certain property described as Parcel B of Lot Line Adjustment No. 2006-452in the City of La Quinta, County of Riverside, State of California ("Parcel 8A") as more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference, and CP has or intends to develop the CP Property with residential units. C. LQ is the owner of that certain property described as Parcel 4 of Parcel Map 31116 situated in the City of La Quinta, County of Riverside. State of California ("Parce14) as more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference, and CP has or intends to develop the CP Property with a hotel. CENTER POINTE CC&R'S: 7/182010 D. EMC is the owner of that certain property described as Parcel A of Lot Line Adjustment No. 2006-452 in the City of La Quinta, County of Riverside, State of Califomia ("Panel W) as more particularly described on Exhibit "A". attached hereto and incorporated herein by this reference, and EMC has or intends to develop said Parcel 6A with medical office buildings. E. Hibachi is the owner of that certain property described as Parcel 1 of Parcel Map No. 31116 situated in the City ("Panel 1 ") as more particularly described on Exhibit Lt", attached hereto and incorporated herein by this reference, and Hibachi has or intends to develop said Parcel 1 with a restaurant. F. Applebee's is the owner of that certain property described as Parcel 5 of Parcel Map No. 31116 situated in the City ("Parcel 5') as more particularly described on Exhibit "A", attached hereto and incorporated herein by this reference, and Applebee's has or intends to develop said Parcel 5 with a restaurant. G. Dolphin is the owner of those certain properties described as Lots 1 and 2 of Tract No. 36089 situated in the City ("Parcel 380) as more particularly described on Exhibit "A". attached hereto and incorporated herein by this reference. Said Lot 1 has been developed with residential . condominiums. Lot 2 may contain residential condominiums some time in the future. H. Parcels 1, 2A, 313, 4, 5, 6A and 8A (hereinafter collectively referred to as the "Project) are all a part of a mixed use development which Is the subject of that certain Development Agreement Development Agreement which was recorded in the Official Records of the County Recorder for the County of Riverside on January 5, 2004 as Instrument No. 2004-0005256, and amended by that certain Amendment No. 1 to Development Agreement executed on or about October 28, 2004 and recorded In the Official Records of the County Recorder for the County of Riverside on November 8, 2004 as Instrument No. 2004-0886063, by that certain Amendment No. 2 to Development Agreement executed on or about November 17, 2006 and recorded in the Official Records of the County Recorder for the County of Riverside on December 19, 2005 as Instrument No. 2005-1046418, and by that certain Amendment No. 3 to Development Agreement executed on or about May 6, 2008 and recorded in the Official Records of the County Recorder for the County of Riverside on June 4, 2008 as Instrument No. 2008-0303530 (hereinafter collectively referred to as the "DA"). 1. On or about April 8, 2007, an Agreement Establishing Easements, Maintenance and Cost Sharing Obligations ("Original Cost Sharing Agreement') was recorded as Instrument number 2007-0234698 in the office of the County Recorderforthe County of Riverside, California by CP and Lennar Homes of California, Inc., Dolphin's predecessor in interest in ownership of Lot 1 and portions of Lot 2 of Tract No. 36089, and said Original Cost Sharing Agreement burdened Parcels 1, 2A, 4 & 5, and portions of Lots 1 and 2 of Tract No. 36089 (formerly Parcel 2 of Parcel Map 31116). CENTER POINTE CC&R'S: 1292010 J. On or about September 5, 2007, CP, as Declarant, executed that certain Declaration of Reciprocal Easement and Maintenance Agreement ("CP CC&RW), and said CP CC&R's burdened Parcel 1, 38; 4 and 5. K. The parties hereto now desire to impose on the Parcels and Lots described herein, certain restrictions and covenants and to create certain easements regarding access, drainage, and maintenance and operation of the facilities and improvements which. constitute the Common Area; as described herein. L. The parties hereto intend that this Agreement shall supercede both the Original Cost Sharing Agreement and the CP CC&R's. NOW, THEREFORE, Declarant hereby declares that the Project shall be held, sold, leased, mortgaged, encumbered, leased, rented, used, occupied,'improved and conveyed subject to the following declarations, limitations, easements, restrictions, covenants, and conditions, which are imposed as equitable servitude's pursuant to a general plan for the development of the Project for the purpose of enhancing and protecting the value and desirability of the Project and every part thereof, and which shall run with the Project and be binding on Declarant and its successors and assigns, and on all parties having or acquiring any legal or possessory right, title or Interest in or to the described Project or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each Owner thereof. ' ARTICLE I DEFINITIONS 1.1 "Articles" shall mean and refer to the Articles of Incorporation of the Association, as amended from time to time. 1.2 "Architectural Control Committee" shall be the committee described in section 6.3 1.3 "Assessment" shall mean that portion of the cost of maintaining, improving, repairing, operating and managing the Project, in accordance with the provisions hereof, which is to be paid by each Owner, and shall include regular and special Assessments, and each Owner's share of Common Expenses. 1.4 "Association" shall mean and refer to the Center Pointe Owner's Association, a California nonprofit mutual benefit corporation, the Members of which shall be the Owners of Commercial Lots in the Project. 1.5 "Board" or "Board of Directors" shall mean and refer to the governing body of CENTER POOKM CC&RB: zn oMiD the Association. 1.6 "Bylaws" shall mean and refer to the Bylaws of the Association, as amended from time to time. 1.7 "Commercial Lots" shall mean Parcel 1, Parcel2A, Parcel 8A, Parcel4, Parcel 5, and Parcel 6A. 1.8 "Common Area" or "Common Areas" shall mean and refer to Lots A, B, C, E, F, G and H of Parcel Map 31116 situated In the City of La Quinta, as more particularly described on Exhibit "8 attached hereto and incorporated herein by this reference and the Shared Road, as shown on Exhibit "D", attached hereto and incorporated herein by this reference, and all improvements located thereon from time to time, e.g., landscape and walkway areas, driveways and underground utilities. Such areas and improvements shall be subject to common use and/or maintenance as provided herein. 1.9 "Common Area Lot" shall mean any legally subdivided parcel within the Project fee title to which has been acquired and is owned by the Association or over which the Association has an easement and maintenance obligations pursuant hereto. Any Common Area Lot shall also constitute Common Area as defined herein. 1.10 "Common Expenses" means and includes the actual and estimated expenses (including reserves) of operating and maintaining Common Areas and implementing the intents and purposes of this Declaration and the business and affairs of the Association. Common Expenses shall also include costs (and reserves if appropriate) incurred bythe Association in connection with maintaining areas adjacent to the Project such as publicly owned landscape and walkway areas, which are required by the DA or related City approvals to be maintained by the Association. Funds to pay Common Expenses may be collected as part of Regular and Special Assessments, as provided herein. Common Expenses shall be divided into two categories: (1) "Shared Road Common Expenses" which shall mean the costs of maintaining the Shared Road as shown on Exhibit "D" attached hereto, and (2) "Master Common Expenses" which shall Include all Common Expenses except the Shared Road Common Expenses. 1.11 "Declarant". shall mean and refer to CP, and any successor or assign that expressly assumes the rights and duties of the Declarant hereunder in a recorded written document 1.12 "Declaration" shall mean and refer to this Agreement, as amended or supplemented from time to time. 1.13 "Eligible Holder Mortgages" shall mean mortgages held by "Eligible Mortgage Holders." 1.14 "Eligible Mortgage Holder" shall mean a First Lenderwho has requested notice CENTER POINIE CC8RB: 1f2912010 of certain matters from the Association in accordance with section 9.5C. 1.15 "Eligible insureror Guarantor" shall mean an insurer orgovemmental guarantor of a First Mortgage who has requested notice of certain matters from the Association in accordance with section 9.5C. 1.16 "First Lender" shall mean any bank, savings and loan Association, insurance company, or other financial institution holding a recorded first mortgage on any Lot. 1.17 'First Mortgage" shall mean and refer to any recorded mortgage made in good faith and for value on a Lot with first priority over other mortgages thereon. 1.18 "Foreclosure" shall mean and refer to the legal process by which the mortgaged property of a borrower in default under a Mortgage is sold, and the borrower's interest in such properly is sold, pursuant to California Civil Code §§2924a, at. seq., or by the Court pursuant to California Code of Civil Procedure §§725a, at. seq., and any other applicable law. 1.19 "Lot" shall mean any legally subdivided parcel within the Property or Project which is intended for the construction and maintenance of a Commercial Unit or any legally subdivided parcel which is Intended for further subdivision for residential purposes. Parcels 1, 2A, 313, 4, 5, 6A and 8A shall constitute the "Lots" for purposes of this Agreement. A Lot is a "separate interest" as that term is defined in Section 1351(e) of the Civil Code. Lots are Intended to be shown on a recorded Tract Map for the Property. Portions of Lots, i.e., areas and Improvements from time to time located outside of perimeter walls of Commercial Units, e.g., landscape and walkway areas, private driveways and underground utilities, shall constitute Common Areas as defined herein. 1.20 'Member" shall mean and refer to a person entitled to membership in the Association as provided herein, and -"Membership" shall refer to such entitlement. 1.21 "Mortgage shall include a deed of trust as. well as a mortgage. 1.22 "Mortgagee" shall include a beneficiary or a holder of a deed of trust as well as a mortgagee. 1.23 "Mortgagor° shall include the trustor of a deed of trust as well as a mortgagor. 1.24 "Owner" or "Owners" shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Lot or portion thereof which is a part of the Project but excluding those Persons or entities having an interest merely as security for the performance of an obligation. If a Lot is sold under a contract of sale and the contract Is recorded, the purchaser, rather than the fee owner, shall be considered the "Owner" from and afterthe date the Association receives written notice CENTER POINTE CCBRS! INV410 - of the recorded contract. 1.25 "Person" means a natural person, a corporation, a partnership, a limited liability company, a trust, or other legal entity. 1.26 "Project" shall mean the Property and all of the improvements from time to time constructed thereon. 1.27 "Project Documents" shall mean the basic organizational and governance documents of the Association Including the Articles, Bylaws, this Declaration and the Rules. 1.28 'Property" shall mean the real property described on Exhibit "A "attached hereto. 1.29 "Residential Lot(s)" shall mean Parcel 3B. 1.30 "Residential Lot Owner(s)" shall mean and refer to the owners of the Residential Lots. 1.31 "Rules" shall mean and refer to the rules adopted from time to time by the Association pursuant to section 5.2D. 1.32 "Tract Map' shall mean any recorded tract map or parcel map covering all or any portion of the Project 1.33 "Unit' or "Commercial Unit" shall mean any commercial/office building constructed upon a Commercial Lot. 1.34 "Vote or Written Assent of a Majority of the Voting Powerof the Association", or words of similar import, whether or not initially capitalized, shall mean the vote (in person or by proxy) or written assent (by ballot or other appropriate means) of a majority of the total voting power of all Lots in the Project. The total voting power of all Lots in the Project shall be equal to the total square footage for all Lots (and each Lot shall be allocated a number of votes equal to the square footage allowed for such Lot). (For applicable square footages see Table 1 and Figure 7 as set forth in Exhibit "117° attached hereto.) With respect to votes and voting, the total voting power of all Lots in the Project and the allocation of votes to each Lot as provided herein shall control; and the sizes of buildings actually constructed upon Lots in the Project shall be irrelevant, as shall the issue of whether at any time a building is actually constructed on any Lot. 1.35 Other defined (initially capitalized) terms shall have meanings as ascribed to them herein and/or in the Bylaws or other Project Documents. CENTER POINTE CC&R'3: VM010 ARTICLE II DESCRIPTION OF PROJECT, DIVISION OF PROPERTY, AND CREATION OF PROPERTY RIGHTS 2.1 Description of Project The Project is a planned development consisting of Commercial Lots with Commercial Units, Lots planned for residential development and Common Areas and improvements thereon. 2.2 Easements Over Common Areas. Easements, and easement rights and obligations with respect to and over and under the Common Areas, are hereby reserved, created and established in accordance with and subject to the following provisions: A. The Association shall have the right and obligation to operate and maintain the Common Areas and improvements thereon in a reasonably neat, clean, attractive and operable condition; provided, however, the Association shall also have the right, from time to time, to make reasonable determinations that specific improvements located within Common Areas primarily benefit Individual Commercial Lots andlorthe Owners thereof, rather than the Association and/or Owners In general, and to require that such Improvements be maintained by and at the cost of the Owner of such Commercial Lot. The Association shall have the right to operate, maintain and pay for water and landscape irrigation systems on each Commercial Lot, or to require the Owner of such Commercial Lot to do so. The Association shall have the right to maintain utility facilities serving each Commercial Lot, or to require the Owner of such Commercial Lot to do so. The intent of this Section is to, give the Association broad discretion with respect to determining and implementing its operation and maintenance rights and obligations, so long as to do so would be reasonable under the circumstances. B. All Owners shall have the right to use Common Areas that constitute (1) private driveways for purposes of ingress, egress and access to their respective Lots, (2) pedestrian ingress, egress and access within areas designated therefor, (3) landscape and walkways for purposes of reasonable use and enjoyment, and (4) underground utility, lines and facilities for purposes of providing utility service to their resPective Lots; provided, however, such rights are subject to the Rules and other reasonable requirements and policies adopted and/or imposed by the Association, which may Include, without limitation, designating and/or reserving appropriate areas for parking by customers and employees of businesses located. on Individual Lots. C. Owners of individual Lots shall, subject to reasonable review and approval by the Association, have the right to make reasonable use of Common Areas on their respective Lots provided such use does not unreasonably interfere with Common Area CENTER POINTE CC&R'S: 112WMIO 7 operations and provided further that no such Owner shall place permanent improvements within the Common Areas without prior written approval of the Association. D. With respect to Common Areas which may be owned by the Association, the Association shall have further rights as follows: (1) the right to grant appropriate easements to public entities and/or utility providers, including, without limitation, cable television companies, (2) the right to designate and/or reserve appropriate areas for parking by customers and employees of businesses located on individual Commercial Lots and the Project, (3) the right to discipline Members and temporarily suspend voting rights for violating the Project Documents, and (4) the right to take any actions reasonably necessary, expedient or convenient to effectuate the purposes of this Declaration and/or the powers of the Association as provided or contemplated herein. E. The easements and rights and obligations set forth above are subject to the rights, easements and activities necessary, expedient or convenient to complete construction, development and sale of the Project as provided in Section 9.8 below. G. The easements and rights and obligations set forth above shalt be exercised and carried out, to the maximum extent reasonably practical, in a manner intended to not unreasonably interfere with the use, occupancy or enjoyment of individual Lots by the Owners thereof. 2.3 Easements to Accompany Conveyance of Lot. Easements that benefit or burden any Lot shall be appurtenant to that Lot and shall automatically accompanythe conveyance of such Lot even though the description in the instrument of conveyance may refer only to title to the Lot. 2.4 Delegation of Use. Subject to the provisions of the Project Documents, any Owner may grant and/or delegate his right to use the Common Areas to such Owner's agents, employees, guests, invitees, tenants, customers, Contractors and contract purchasers. 2.5 Reservations and Grants of Easements. Easements and easement rights and obligations are reserved and granted to the extent provided and contemplated herein. 2.6 Owners' Rights and Easements for Utilities. The rights and duties of the Owners of Lots within the Project with respect to sewer, drainage, water, electric, gas, television and telephone equipment, cables and lines (collectively "utility facilities") shall be as follows: A. Whenever utility facilities are installed within Common Areas, the Owners of any Lots served by such utility facilities shall have the right of reasonable access for themselves or for utility companies or providers to repair, to replace and generally CENTER POINTE CGW& 1129@010 0 maintain said utility facilities as and when th a same may be reasonably necessary, whether due to failure or Inability of the Board to take timely action, or otherwise. B. Whenever utility facilities are installed within the Project which serve more than one Lot, the Owner of each Lot served by said utility facilities shall be entitled to the full use and enjoyment of such portions of said utility facilities as service his Lot. C. In the event of a dispute between Owners with respect to the repair or rebuilding of said utility facilities, or with respect to the sharing of the cost thereof, then, upon written request of any Owner addressed to the other Owner, the matter shall be submitted first to the Board for mediation, and thereafter, if the dispute remains unresolved, to binding arbitration pursuant to the rules of the American Arbitration Association. 2.7 Encroachment Easements. Each Lot as the dominant tenement shad have an easement over adjoining Lots and Common Area as the servient tenements for the purpose of accommodating any encroachment built in accordance with the original plans and specifications approved by Declarant or the Association. In the event of such an encroachment, a correcting modification may (at the discretion of Declarant) be made. Said modification shall be in the form of a certificate of correction or lot line adjustment approved by the City of La Quints. 2.8 No Party Walls. It is not contemplated that there will be any "party walls" in the Project, however, If it ever develops that there is, the general rules of law regarding party walls shall be applicable. 2.9 Maintenance Easement for Units. An easement over each Lot as the servient tenement is hereby granted, in favor of the Association, for the purpose of allowing the Association and its agents and employees the right, but not the obligation, to enter the Lotto perform such maintenance, if any, as the Association may perform in accordance with the provisions of sections 5.1.A and section 7.15 of this Declaration. 2.10 Maintenance of Drainage Facilities. No Owner shall commit any act that would interfere with the operation of any drainage facilities installed as part of original construction on Common Area portions of such Owner's Lot. 2.11 Easements In General. The Common Area and each Lot are subject to all easements, dedications, and rights of way granted or reserved in, on, over and under the Project as shown on the. Tract Map -for the Project, and as otherwise provided or contemplated in this Declaration. 2.12 Rights of Entry and Use. The Lots and Common Area shall be subject to the following rights of entry and use: A. The right, but not the obligation, of the Association's agents and employees to enter CENTER POINTE COMM 12W010 9 any Lot to cure any violation of the applicable Project Documents, provided that the Owner has received notice and a hearing as required by the Bylaws (except In the case of an emergency) and the Owner has failed to cure the violation or take steps necessary to cure the violation within thirty (30) days after the finding of a violation by the Association; B.. The access rights of the Association to maintain, repair or replace Improvements or property located in the Common Area as described in section 5.2E; C. The easements described in this Article 11; D. The right of the Association's agents to enter any Lot to perform maintenance to the extent described herein; and E. The rights and easements of the Declarant during construction and sales as described in section 9.6. 2.13 No Subdivision of Common Areas. There shall be no further subdivision or partition of Common Areas without written approval of the Board of Directors of the Association. ' 2.14 No Subdivision of Commercial Lots. There shall be no further subdivision or partition of any Commercial Lot without written approval of the Board of Directors of the Association, provided however that Parcels 2A, 3B and SA may be further subdivided without Association approval provided that such further subdivision is for residential or condominium purposes and provided further that such subdivision Is permitted under the terms of the DA. 2.15 No View Rights. This Declaration is not intended and shall not in any way confer or grant (or be construed to confer or grant) to any Lot or Unit or the Owner thereof any right to the maintenance of any view, viewscape or scenic corridor or area. 2.16 All Easements Part of Common Plan. Whenever any easements are reserved or created or are to be reserved or created herein, such easements shall, to the extent reasonably appropriate, constitute equitable servitudes forthe mutual benefit of all property in the Project, and be deemed to be part of the common plan created by this Declaration for the benefit of all property Owners within the Project. ARTICLE III ASSOCIATION ADMINISTRATION, MEMBERSHIP AND VOTING RIGHTS 3A Association to Operate and Maintain Common Areas. The Association shall operate and maintain Common Areas to the extent provided herein. CENTER POINTE COWS; ln=010 10 3.2 Membership. The Owner of a Commercial Lot shall automatically upon becoming the Owner of same, be a Member of the Association, and shall remain a Member thereof until such time as his ownership eases for any reason. Membership shall be appurtenant to and may not be separated from ownership of a Commercial Lot. Membership shall be held in accordance with the Project Documents. 3.3 Transferred Membership. Membership in the Association shall not be transferred, encumbered, pledged, or alienated in any way, except upon the sale or transfer of the Commercial Lot to which it is appurtenant, and then only to the purchaser, in the case of a sale, or to a Mortgagee that has foreclosed or received a dead in lieu of foreclosure, in the case of an encumbrance. On any transfer of title to an Owner's Commercial Lot, Membership shall automatically pass with such transfer. A Mortgagee shall not have Membership rights until it obtains title to the Commercial Lot through foreclosure or deed in lieu thereof. Any attempt to make a prohibited transfer is void. No Member may resign his Membership. On receipt of notice of a transfer, the Association shall record the transfer on its books. 3.4 Membership Voting Rights. Membership voting rights shall be as set forth in the Bylaws, and Section 1.32 of this Declaration. ARTICLE IV MAINTENANCE AND ASSESSMENTS 4.1 Creation of the Lien and Personal Obligation of Assessments. With respect to maintenance and Assessments, the following shall apply: A. The Declarant, for each Commercial Lot owned within the Project, hereby covenants, and each Owner of any Commercial Lot by acceptance of a deed or conveyance thereto, whether or not it shall be so expressed in such deed or conveyance, covenants and agrees: (1) to pay to the Association regular and special Assessments, to be established and collected as hereinafter provided; and (2) to allow the Association to enforce any Assessment lien established hereunder by non -judicial proceedings under a power of sale or by any other means authorized bylaw. The Residential Lots are not part of the Association and the Residential Lot Owners are not Members of the Association. The Association shall not have lien rights against the Residential Lots. The La Quinta Desert Villas Community Association ("Residential Association") is responsible for the management of the residential condominium project located on the Residential Lots. The Residential Association, on behalf of the Owners of the Residential Lots and the owners of condominium units within the Residential Lots, shall pay a portion of the Common Expenses to the Association pursuant to Section 4.13 below. Neither the Residential Association, nor any member thereof may exempt the Residential Association from liability for the required contribution to the Common Expenses, as provided herein, by waiver of the use or enjoyment of any of the Common CENTER POINTS CURS: 1r=010 Areas or by the abandonment of any Lot, The Residential Lot Owners agree to use the Common Area solely in accordance with any rules adopted by the Association in accordance with paragraph 5.2(b) hereof. B. The regular and special Assessments, together with interest, late charges, collection costs, and reasonable attomeys' fees, shall be a charge on the land and shall be a continuing lien upon the property against which each such Assessment is made, the lien to become effective upon recordation of a notice of delinquent Assessment. Each such Assessment, together with interest, late charges, collection costs, and reasonable attomeys' fees, shall also be the personal obligation Qoint and several) of each Person who was the Owner of such property at the time when the Assessment fell due. No Owner of a Commercial Lot may exempt. himself from liability for his contribution towards the Common Expenses by waiver of the use or enjoyment of any of the Common Areas or by the abandonment of his Lot. C. The interest of any Owner of a Commercial Lot in the amounts paid pursuant to any Assessment upon the transfer of ownership shall pass to the new Owner of a Commercial Lot. 4.2 Purpose of Assessments. The Assessments levied by the Association shall be used to pay Common Expenses, to promote the economic Interests, health, safety and welfare of Owners In the Project, and to enable the Board and the Association to perform their obligations hereunder. 4.3 Assessments. Regular and special Assessments may be levied as follows: A. Regular Assessments: The Board shall annually establish and levy regular Assessments in an amount that the Board estimates will be sufficient to raise the funds needed to pay Common Expenses and perform the duties of the Association during each fiscal year. The regular Assessments shall include a portion for reserves in such amounts as the Board in its discretion considers appropriate to meet the costs of the future repair, replacement or additions to the major improvements and fixtures that the Association Is obligated to maintain and repair. Reserve funds shall be deposited in a separate account and the signatures of at least two (2) Persons, who shall either be Members of the Board or one officer who is not a Member of the Board and one Member of the Board, shall be required to withdraw monies from the reserve account. Except to the limited extent otherwise provided herein, reserve funds may not be expended for any purpose other than repairing, restoring, maintaining or replacing the major components that the Association is obligated to maintain without the consent of Owners of a Commercial Lot holding a majority of the voting power either at a duly held meeting or by written ballot. B. Special Assessments: The Board. may at anytime levy a special assessment in order to raise funds for unexpected operating or other costs, insufficient operating or reserve funds, or such other purposes as the Board In its discretion considers CENTER POINTE ccaR's:1/20=10 IV, appropriate. Special Assessments shall be allocated among the Lots In the same manner as regular Assessments, except in the case of an Assessment levied by the Board against a Member to reimburse the Association for costs incurred In bringing the Member and his Lot into compliance with provisions of the Project Documents, 4A Increases in Assessments. The Board shall have the power from time to time to impose reasonable increases in Assessments as necessary or appropriate. 4 5 Request for Membership Vote on Special Assessments. The Board may, but shall not be required, to place consideration of any Special Assessment to a vote of the Membership. 4.6 Division of Assessments. All Assessments for Master Common Expenses, both regular and special, shall be levied in accordance with the following: Each Commercial Lot shall pay a fraction of Assessments, the numerator of which shall be equal to the square footage allowed for such Commercial Lot, and the denominator of which shall be equal to the total square footage allowed for all Lots within the Project. (For applicable square footages see Exhibit IC attached hereto.) All Assessments for Shared Road Common Expenses, both regular and special, shall be assessed against the Parcel 1, Parcel 2A, Parcel 3B, Parcel 4 and Parcel 5, with each parcel paying a proportionate share based on a fraction, the numerator of which is equal to the square footage allowed for the relevant parcel and the denominator of which is equal to the combined square footage allowed for the Parcel 1, Parcel 2A, Parcel 3B, Parcel 4 and Parcel 5. Regular Assessments shall be collected on a monthly basis unless the Board directs otherwise. Special Assessments may be collected in one payment or periodically as the Board shall direct. 4.7 Date of Commencement of Regular Assessment; Due Dates. The regular Assessments provided for herein shall commence as to all Lots in the Project on the first day of the month following full execution of this Agreement by all parties hereto. Subject to the provisions of section 4.3, the Board of Directors shall use its best efforts to fix the amount of the regular Assessments against each Commercial Lot and send written notice thereof to every Owner of a Commercial Lot at least forty-five (45) days in advance of each fiscal year, provided that failure to comply with the foregoing shall not affect the validity of any Assessment levied by the Board. The due dates shall be established by the Board of Directors. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association stating whether the Assessments on a specified Commercial Lot have been paid. Such a certificate shall be conclusive evidence of such payment. 4.8 Effect of Nonpayment of Assessments. Any Assessment not paid within fifteen (15) days after the due date shall be delinquent, shall bear interest at the rate of twelve percent (12%) per annum from thirty (30) days after the due date until paid, and shall incur a late payment penalty In an amount to be set by the Board from time to time, not to exceed the maximum permitted by Civil Code §1366(d)(2), or other CENTER POINTE CCARV 1P2W010 13 applicable law. 4.9 Transfer of Lot by Sale or Foreclosure. With respect to the sale or foreclosure of any Lot, the following shall apply: A. Sale or transfer of any Lot shall not affect the Assessment lien. However, the sale of any Lot pursuant to Foreclosure of a First Mortgage shall extinguish the lien of such Assessments Including attorneys fees, late charges and Interest levied in connection therewith, as to payments which became due prior to such sale by Foreclosure (except for Assessment liens recorded priorto the Mortgage). No Foreclosure sale shall relieve such Commercial Lot from liability for any Assessments thereafter becoming due or from the lien thereof. B. Where the Mortgagee of a First Mortgage of record or other purchaser of a Commercial Lot obtains title to the same as a result of Foreclosure, such acquirer of title, and his successor and assigns, shall not be liable for Assessments by the Association chargeable to such Commercial Lot which became due prior to the acquisition of title to such Commercial Lot by such acquirer (except for assessment liens recorded prior to the Mortgage). No amendment of the preceding sentence may be made without the consent of Owners of Commercial Lots to which at least sixty- seven percent (67%) of the votes in the Association are allocated, and the consent of the Eligible Mortgage Holders holding First Mortgages on Commercial Lots comprising fifty-one percent (51 %) of the Commercial Lots subject to First Mortgages. The unpaid share of such Assessments shall be deemed to be Common Expenses collectible from all Owners of the Commercial Lots including such acquirer, and his successors or assigns. With respect to allocation of Assessments, each Commercial Lot shall pay a fraction based upon the square footage allowed for such Commercial Lot; and the size of buildings actually constructed upon Commercial Lots in the Project shall be irrelevant, as shall the issue of whether at any time a building is actually constructed on any Commercial Lot. C. If a Commercial Lot is transferred, the grantor shall remain liable to the Association for all unpaid Assessments against the Commercial Lot through and Including the date of the transfer. The grantee shall be entitled to a statement from the Association, dated as of the date of transfer, setting forth the amount of the unpaid Assessments against the Lot to be transferred and the Commercial Lot shall not be subject to a lien for unpaid Assessments in excess of the amount set forth in the statement; provided, however, the grantee shall be liable for any Assessments that become due after the date of the transfer. 4.10 Priorities; Enforcement; Remedies. With respect to Assessments, the following additional provisions shall apply: CENTER POINTE CC&R'S: 12012010 14 A. If an Owner of a Commercial Lot fails to pay -an Assessment when due, the Association has the right, and option; to bring legal action against the Owner of a Commercial Lot to enforce collection of the unpaid and past -due Assessment, or may Impose a lien on the Commercial Lot owned by Owner of a Commercial Lot pursuant to the provisions of Civil Code §1367, or both. Suit to recover a money judgment for unpaid Assessments and attorneys' fees shall be maintainable without foreclosing or waiving the lien securing the same. Before the Association may place a lien upon a Commercial Lot, pursuant to Civil Code §1367(a), the Association shall notify the Owner of a Commercial Lot in writing by certified mail of the fee and penalty procedures of the Association, provide an Itemized statement of the charges owed by the Owner of a Commercial Lot, Including the principal owed, any late charges, and the method of collection, any attorneys' fees, and the collection practices used by the Association, Including the right of the Association to the reasonable costs of collection. After compliance with the provisions of Civil Code §1367(a), the Association may record a notice of delinquent Assessment and establish a Ilan against the Commercial Lot of the delinquent Owner of a Commercial Lot prior and superior to all other liens except (1) all taxes, bonds, Assessments and other levies which, by law, would be superior thereto, and (2) the lien or charge of any First Mortgage of record (meaning any recorded Mortgage or deed of trust with first priority over other Mortgages or deeds of trust) made in good faith and for value. The notice of delinquent Assessment shall state the amount of the Assessment, collection costs, attorneys' fees, late charges and interest, a description of the Commercial Lot against which the Assessment and other sums are levied, the name of the record owner, and the name and address of the trustee authorized by the Association to enforce the lien by sale. The notice shall be signed by any officer of the Association or any management agent retained by the Association and shall be malted in the manner set forth in Civil Code §2924b to all record owners of the Commercial Lot no later than 10 days after recordation. B. After the expiration of thirty days following the recordation of the lien, an Assessment lien may be enforced in any manner permitted by law, including sale by the court, sale by the trustee designated in the notice of delinquent Assessment, or sale by a trustee substituted pursuant to Calliornia Civil Code §2934(a). Any sale by the trustee shall be conducted in accordance with the provisions of §§2924, 2924b, 2924c, 2924f, 2924g and 2924h of the California Civil Code, including any successor statutes thereto, applicable to the exercise of powers of sale in Mortgages and deeds of trust, or in any other manner permitted by law. Nothing herein. shall preclude the Association from bringing an action directly against an Owner of a Commercial Lot for breach of the personal obligation. to pay Assessments. C. The Association, acting on behalf of the Owners of a Commercial Lot, shall have the power to bid for the Commercial Lot at Foreclosure sale, and to acquire and hold, lease, Mortgage and convey the same. Where the purchase of a Foreclosure Lot will result in a five percent (50/6) or greater Increase in Assessments, the purchase shall require the vote or written consent of a majority of the total voting power of the Association.. During the period a Commercial Lot is owned by the Association, following CENTER POINTE CCBR'3: WNW() 15 Foreclosure; (1) no right to vote shall be exercised on behalf of the Lot; (2) no Assessment shall be assessed or levied on the Lot; and (3) each other Commercial Lot shall be charged, in addition to its usual Assessment, its share of the Assessment that would have been charged to such Commercial Lot had it not been acquired by the Association as a result of Foreclosure. D. After acquiring title to the Commercial Lot at foreclosure sale following notice and publication, the Association may execute, acknowledge and record a deed conveying title to the Commercial Lot which deed shall be binding upon the Owners, successors, and all other parties. E. The Board may temporarily suspend the voting rights of a Member who is in default in payment of any Assessment, after notice and hearing, as provided in the Bylaws. F. Fines and penalties for violation of restrictions are "Assessments," and are enforceable by lien. Monetary levies Imposed by the Association to reimburse the Association for costs incurred for repair of damage to Common Area or facilities for which an Owner of a Commercial Lot, his agents, employees, guests or invitees were responsible are "Assessments," and are enforceable by lien. G. The Association is not empowered to cause a forfeiture or abridgement of an Owners of a Commercial Lot right to the full use and enjoyment of his Commercial Lot on account of the failure by the Owner of a Commercial Lot to comply with provisions of the Project Document or Rules, except by judgment of a court or a decision arising out of binding arbitration or on account of a foreclosure or sale under power of sale for failure of the Owner of a Commercial Lot to pay Assessments duly levied by the Association. H. Each Owner of a Commercial Lot waives, to the maximum extent permitted by law, the benefit of any California homestead or exemption laws in effect when any Assessment or installment becomes delinquent or a lien is Imposed. 4.11 Allocation of Assessments upon Further Subdivision. intheeventthatany Lot, Including but not limited to the Residential Lot, is further subdivided, then the Regular and Special Assessments for such Lot (in the case of the Residential Lot, the "Residential Common Expense", as defined below) shall be divided among and allocated to the new lots created by such subdivision. In such an event for purposes of the enforcement procedures set forth herein for collection of Regular and Special Assessments, each such newly subdivided lot shall be treated as a "Lot' and the enforcement procedures provided herein shall affect only those Lots whose Owners have failed to properly and timely pay Regular and/or Special Assessments (or the Residential Common Expense, as set forth in Section 4.13 below). 4.12 Unallocated Taxes. In the event that any real property taxes or assessments CENTER POINTE CC&R'S. V292010 16 are assessed against the Common Area rather than spread against the Lots, said taxes shall be included in the Assessments. made under the provisions of section 4.1 and, if necessary, a special Assessment may be levied to pay such taxes (or, if necessary, may be Included In the Residential Common Expense pursuant to Section 4.13 below, if such real property tax or assessment applies to the Residential Lots). The same shall apply with respect to any taxes imposed on personal property owned by the Association. 4.13 Residential Common Expense Contribution. The Residential Association, on behalf of the Residential Lot Owners and the owners of condominium units located within the Residential Lots, shall pay the portion of the Common Expenses In accordance with the provisions set forth below ("Residential Common Expense"). The Residential Common Expense shall include a proportionate share of the Master Common Expenses determined by a fraction, the numerator of which shall be equal to the total square footage of the Residential Lot, and the denominator of which shall be equal to the total square footage of all Lots within the Project. The Residential Common Expense shall also include a proportionate share of the Shared Road Common Expense determined by a fraction, the numerator of which shall be equal to the total square footage of the Residential Lot, and the denominator of which shall be equal to the sum of the total square footage of the Parcel 1, Parcel 2A, Parcel 3B, Parcel 4 and Parcel 5. 4.13.1 Payment of Residential Common Expense. 4,13.1.1 Budget. Not less than forty-five (45) days nor more than sixty (60) days priorto the beginning of each calendar year, the Association shall provide to the Residential Association the estimated Common Expense ("Estimated Common Expense") for the maintenance of the Common Area for the subsequent calendar yeartogether with a statement setting forth the amount of the Residential Common Expense. 413.1.2 Payment of Residential Common Expense. The Residential Association shall pay to the Association on the tenth (10th) day of each month, In advance, the Residential Common Expense for that period. No later than ninety (90) days after the end of each fiscal year, the Association shall deliver to the Residential Association a summary describing the actual Common Expenses and the actual Residential Common Expenses. If the Residential Common Expense for any fiscal year exceeds the actual Residential Common Expenses attributable to the Residential Association for such year, the Association shall reduce the contribution of the Residential Association for the following fiscal year by such excess amount. If the actual Residential Common Expense exceeds the Residential Common Expense paid to the Association in that prior year, then the Residential Association shall pay such excess amount to the Association within thirty (30) days' after receipt of a statement of the actual Residential Common Expenses for such year. CENTER POINTE CC&R'S: 112VA10 17 4.13.1.3 Payment Commencement Date. The obligation of the Residential Association to pay the Residential Common Expense to the Association shall commence on the same date that regular assessments commence as to Commercial Lots, as described in section 4.7 hereof. If the Residential Association is not active at the time that regular assessments commence, the Owners of the Residential Lot shall, nonetheless, pay any Residential Common Expense due hereunder. rPayment Commencement Date"). 4.13.1.4 Late Payments: If the Residential Association fails to pay the Residential Common Expense within fifteen (15) days after the due date therefor, then a late charge shall be due in the amount of ten percent (10%) of the delinquent amount due. 4.13.1.5 Nonpayment of Residential Common Expense. The Residential Common Expense is delinquent if not paid within thirty (30) days after the due date as established by this Section 4.13. If Residential Common Expense is not paid within thirty (30) days after the due date, such Residential Common Expense plus all reasonable costs of collection actually incurred (including attorneys' fees) and late charges as provided herein shall bear interest at the maximum rate permitted by law, commencing thirty (30) days afterthe due date until paid. In addition to late charges and interest, the Association shall have any and all remedies available at law or in equity against the Residential Association in the event that the Residential Common Expense is not paid when due. 413.1.6 Books and Records. The Residential Association shall be entitled to Inspect and copy at Residential Association's sole expense the books and records of the Association relating to the Common Expenses upon reasonable notice to the Association during normal business hours. The Residential Association may NOT remove the books and records from the Association's office (or any area In which the requested books and records are stored). The Residential Association shalt reimburse the Association any copies made with copiers or other equipment belonging to or leased to the Association. The Association shall deliver to the Residential Association the annual audit of the Association budget applicable to the Common Expenses no later than one hundred twenty (120) days after the expiration of the applicable calendar year. 4.13.1.7 Limitation on Increases. Except in the case of an Emergency (as defined below), the amount of the Residential Shared Expense may not be more than ten percent (10%) greater than the amount of the Residential Shared Expense forthe preceding year unless the Association obtains the prior written approval of the proposed increase from the Residential Association, which consent will not be unreasonably withheld. For the purpose of this Section, an "Emergency" shall mean any one of the following: CENTER P01NTE CCBR'S: 1=12010 18 is an extraordinary expense required by an order of a court, including costs and expenses related to the defense of, settlement for, and/or awards resulting from, claims and actions related to the portions of the Common Area to which the residents of the Residential Lots have access (including applicable Improvements thereon) to which this Agreement applies, excluding costs and expenses arising from a default or breach by Association of its obligations pursuant to this Agreement; bM an extraordinary and unforeseeable expense necessary to repair or maintain the portions of the Common Area to which the residents of the Residential Lots have access (including applicable improvements thereon) and to which this Agreement applies where a threat to personal safety or property is discovered; or (cj . an extraordinary expense necessary to repair or maintain the portions of the Common Area to which the residents of the Residential Lots have access (including applicable improvements thereon) to which this Agreement applies that could not have been reasonably foreseen by the Association In preparing and distributing the statement of Residential Common Expense required hereunder. ARTICLE V DUTIES AND POWERS OF THE ASSOCIATION 5.1 Duties. In addition to the duties enumerated in this Declaration and the Project Documents, and without limiting the generality thereof, the Association (acting by and through the Board) shall perform the following duties: A. Maintenance: The Association shall operate and maintain Common Areas to the extent provided herein, and pay Common Expenses to the extent provided herein. The responsibility of the Association for maintenance shall not extend to repairs or replacements arising out of or caused by the willful or negligent act or omission of any Owner, or his agents, employees, guests or invitees. Any such repairs or replacements not covered by insurance carried by the Association shall be made by the responsible Owner, provided the Board approves the Person or entity actually making the repairs and the method of repair. If the responsible Owner falls to take the necessary steps to make the repairs within a reasonable time under the circumstances, the Association may cause the repairs to be made and charge the cost thereof to the responsible Owner, which costs shall bear interest at the rate of twelve percent (12%) per annum (but no greater than the maximum rate allowed by law) until paid in full. If such repair is covered by the insurance carried by the Association, the Association may make the repairs, and the responsible Owner shall pay any deductible pursuant to the insurance policy. If the Owner falls to make such payment, then the Association may make such payment and shall charge the responsible Owner, which charge shall bear interest at CENTER POINTE CC&R'S: 1012010 19 the rate of twelve percent (12%) per annum (but no greater than the maximum rate allowed bylaw) until paid in full. If the Owner disputes the charge, the Owner shall be entitled to a notice and a hearing as provided in the Bylaws before the charge may be collected. B. Insurance: The Association shall obtain and maintain such policy or policies of insurance as are required by section 8.1 of this Declaration. C. Discharge of Liens: The Association shall discharge by payment, if necessary, any lien against the Common Area and charge the cost thereof to the Member or Members responsible for the existence of the lien after notice and hearing as provided in the Project Documents. D. Assessments: The Association shall fix, levy, collect and enforce Assessments as set forth in Article IV hereof. E. Payment of Expenses and Taxes: The Association shall pay all expenses and obligations incurred by the Association in the conduct of its business including, without limitation, all licenses, taxes, assessments and governmental charges levied or imposed upon, or which are or may become a lien against, the property of the Association. F. Enforcement, The Association shall be responsible for the enforcement of the Project Documents. The Association shall maintain and operate the Common Area of the Project in accordance with all applicable municipal, state, and federal laws, statutes and ordinances, as the case may be. The Association shall also, as a separate and distinct responsibility, exert commercially reasonable efforts to endeavor to ensure that third parties (including Owners, their agents, employees, guests and inyitees) utilize the Common Area in accordance with the Project Documents. The Association shall, when it becomes aware of any violation of the aforementioned regulations, endeavor to expeditiously correct such violations. G. Preparation of Financial Documents: The Association shall cause the preparation of budgets and financial statements as required by Sections 12.1 and 12.2 of the Bylaws; provided, however, the Board may, in its discretion, modify and reduce such requirements to the extent determined reasonable or appropriate. 5.2 Powers. In addition to the powers enumerated In this Declaration or the other Project Documents, orelsewhere provided for herein, and without limiting the generality thereof, the Association shall have the following powers: A. Utility Service: The Association shall have the authority (but not the obligation) to obtain, for the benefit of all of the Owners, all utilities and utility services including, without limitation, water, sewer, gas, electric service, refuse collection and cable access television. CENTER POWTE CCBR'S: 1292010 20 B. Easements: The Association shall have the right to grant easements under, in, upon, across, over, above or through any portion of the Common Area for reasonable purposes, as approved by the Board, which are beneficial to the Association or the Project or the development of same. C. Manager: The Association may employ a manager and/or contract with independent contractors or managing agents to perform all or any part of the duties and responsibilities of the Association. D. Adoption of Rules: The Board shall have the right to adopt, promulgate and enforce reasonable rules and regulations ("Rules°), not in conflict or inconsistent with this Declaration relating to. the operation, maintenance, use and enjoyment of the Common Areas and individual Commercial Lots. It is the intent of this section that the Board have broad discretion with respect to the Rules and that the Board's authority in this regard be construed liberally in order to effectuate the objectives of the Board with respect to the Rules. In general, the objectives of the Board should be to prompte and enhance the Project, its' attractiveness and economic viability, and ,provide for the orderly operation, maintenance, repair and upkeep of the Project, including procedures relating to the conduct of Association business. Written copies of such Rules. and any schedule of fines and penalties adopted by the Board shall be furnished to Owners. Anything contained herein to the contrary notwithstanding, until ninety percent (90%) of the Lots planned for the Project have been sold, the adoption or amendment of any Rules shall require the consent of Declarant. Adopted Rules shall be reasonable and not arbitrary or capricious, and fairly applied and enforced to ensure equal treatment of Owners and Members under similar circumstances. E. Access: For the purpose of performing construction, maintenance or emergency repair for the benefit of the Common Area or the Owners in common and/or to perform maintenance work which the Lot Owner has failed to perform as provided herein, the Association's agents and employees shall have the right, after reasonable notice (except In emergencies) to the Owner thereof, to enter any Lot at reasonable hours. Such entry shalt be made with as little Inconvenience to the Owner as practicable and, except as otherwise provided herein, any damage caused thereby shall be repaired by the Board at the expense of the Association. F. Assessments, Liens, Penalties, and Fines: The Association shall have the power to levy and collect Assessments in accordance with the provisions of Article IV hereof. The Association may Impose fines or take disciplinary action against any Owner for failure to pay Assessments or for violation of any provision of the Project Documents. Penalties may include but are not limited to fines, temporary suspension of voting rights, rights to the use of recreational facilities, if any, or other appropriate discipline, provided the Member is given notice and a hearing as provided in the Bylaws before the imposition of any fine or disciplinary action. The Board shall have the power to adopt a schedule of reasonable fines and penalties for violations of the term's of the CENTER POINTE COWS: 1129=10 .21 Project Documents. Written copies of Rules and the schedule of penalties shall be fumished to Owners. The Board shall have the power to assess and enforce fines and penalties. G. Enforcement: The Association shall have the power to enforce the Project Documents. H. Acquisition and Disposition of Property: The Association shall have the power to acquire (by gift, purchase or otherwise), own, hold, improve, operate and maintain real or personal property in connection with the affairs of the Association. The Board shall also have the powerto convey, sell, lease, transferor otherwise dispose of real or personal property in connection with the affairs of the Association; provided, however, the Board shall only have the power to convey any material portion of the Common Area with the vote or assent of a majority of the voting power of the Association. The foregoing notwithstanding, the Board shall have the right to make reasonable lot line adjustments adjusting boundary lines between the Common Area and Commercial Lots and to grant reasonable easements over, under, across and through portions of the Common Area to the extent that the Board determines that to do so would be appropriate and in the best interests of the Association. I. Loans: The Association shall have the power to borrow money, and, with the vote or assent of a majority of the voting power of the Association, mortgage, pledge, deed in trust, or hypothecate any or all of its real or personal property as security for money borrowed or debts incurred. J. Dedication: The Association shall have the power to dedicate, sell, transfer and/or grant easements with respect to all or any part of the Common Area to any public agency, authority, or utility for such purposes and subject to such conditions as maybe determined by the Board. K. Contracts; The Association shall have the power to contract for goods and/or services for the Common Areas, facilities and interests or for the Association, subject to limitations set forth in the Project Documents. L. Delegation: The Association, the Board, and the officers of the Association shall have the power to delegate their authority and powers to committees, officers, agents or employees of the Association, or to a manager employed by the Association, provided that the Board shall maintain ultimate oversight thereof and responsibility therefor. M. No Recreational Facilities: It is not expected that there will be any recreational facilities within Common Areas, however, the Board shall have the right, but not the obligation, to allow the installation of such facilities, upon such terms as the Board may chose. CENTER POINTE CC&R'S: V29/2010 22 N. Appointment of Trustee: The Association, or the Board acting on behalf of the Association, has the power to appoint or designate a trustee to enforce Assessment liens by sale as provided in section 4.10 and California Civil Code §1367(b). O. LitigationlArbitration: The Association shall have the power to institute, defend, settle or intervene in litigation, arbitration, mediation or administrative proceedings in matters pertaining to affairs of the Association; provided, however, anything in this Agreement or the other Project Documents to the contrary notwithstanding, the Association shall at all times comply with the intents, purposes and provisions of Civil Code Sections 1368.4 and 1375, without regard to the fact that the Project Is a mixed use development inciudingicommerciallofflce in addition to residential development. P. Other Powers: In addition to the powers contained herein, the Association may exercise the powers granted to a nonprofit mutual benefit corporation under Califomia Corporations Code §7140. ARTICLE VI ARCHITECTURAL CONTROL 6.1 Purpose of Architectural Controls: The purpose and intentof this Article is to empower the Association primarily to enhance, preserve and protect property values within the Project. The Board shall have ultimate responsibility, but may delegate that authority to an Architectural Control Committee. 6.2 Requirement for Approval of Plans. No Commercial Unit or any other improvement of any type or kind shall be commenced, installed, erected, painted or maintained upon the Common Areas, nor shall any alteration orimprovement of any kind be made thereto, or to any Commercial Lot, until the same has been approved in writing by the Board, or by an Architectural Control Committee appointed by the Board. Plans and specifications showing the nature, kind, shape, color, size, materials and location of such improvements, alterations, etc., shall be submitted to the Board or to the Architectural Control Committee for approval as to quality of workmanship and design and harmony of external design with existing structures, and as to location in relation to surrounding structures, topography, and finish grade elevation. No permission or approval shall be required to repaint in accordance with Declarant's original color scheme or a color scheme previously approved by the Committee or the Board, or to rebuild in accordance with plans and specifications previously approved by the Committee or by the Board. The Committee, or the Board, shall have the right to adopt and promulgate reasonable architectural rules and guidelines to Implement the intents, purposes and provisions hereof; which, upon adoption, shall have the same force and effect as other Rules as provided herein. 6.3 Architectural Control Committee Membership. The Architectural Control CENTER POINTS CURS: IMM10 - 23 Committee shall consist of three (3) Members. So long as Declarant owns a Lot in the Project, Declarant may appoint all of the members of the Committee and all replacements thereof. Thereafter, such members shall be appointed by the Board. Members of the Committee shall normally, but not necessarily, be from the Membership of the Association. A majority of the Architectural Control Committee may designate a representative to act for f. Neither the Members of the Committee nor its designated representative shall be entitled to any compensation for services performed pursuant hereto. The Architectural Control Committee (or the Board) shall have the right, but not the obligation, to engage (on a case by case basis or otherwise) an independent architect or draftsman to assist the Committee (orthe Board) in the review process, and to charge all costs reasonably incurred in connection therewith to the applicant for architectural approval. 6.4 Architectural Control Committee Action: In the event the Committee fails to approve or disapprove plans and specifications in writing within thirty (30) days after the same have been submitted to it, approval will not be required and the related covenants shall be deemed to have been fully complied with. Approval of plans by the Committee or the Board shall In no way make the Committee or Its Members or the Board or its Members responsible for or liable forthe improvements built after approval of the plans, and the Owner whose plans are approved shall defend, indemnify andshold the Committee and the Board, and the Members thereof, harmless form any and all liability arising out of such approval. 6.5 Landscaping. No landscaping or other physical improvements or additions shall be made to any Common Area or any Commercial Lots until plans and specifications showing the nature, kind, shape, and location of the materials shall have been submitted to and approved in writing by the Architectural Control Committee, or the Board. 6.6 Solar Energy. The Architectural Control Committee may impose such restrictions on the installation of solar panels as are permitted by applicable state laws. 6.7 Governmental Approval. Before commencement of any alteration or improvements approved by the Architectural Control Committee, the Owner shall comply with all appropriate governmental laws and regulations, including, without limitation, any zoning ordinance then in effect with respect to such Owner's Lot. Approval by the Committee does not satisfy the appropriate approvals that may be required by any governmental entity with appropriate jurisdiction. 6.8 Structural Integrity. Nothing shall be done in or on any Lot or in or on the Common Area which will Impair the structural integrity of any building or structure. 6.9 Appeals to Board. Any final decision of the Architectural Control Committee may be appealed in writing to the Board of Directors. Any such appeal must be submitted in writing to the Board within fifteen (15) days after the date the appealing CENTER POWTE CC&R'S: !!PMID 24 Member receives notice of the final decision by the Architectural Control Committee. The written notice of the appeal shall specifically state the appealing member's grounds for appeal. The Board may adopt and promulgate Rules setting forth procedures and grounds for appeals. The decision of the Board with respect to all appeals shall be final and determinative. Decisions by the Board and/or Architectural Control Committee shall be reasonable and not arbitrary or capricious, and fairy applied and enforced to ensure equal treatment of Owners and Members under similar circumstances. AR7ICLE VII USE RESTRICTIONS 7.1 Use of Lot. With the exception of Parcels 2A, 313 and SA, Lots in the Project shall be used for purposes of constructing and maintaining commercial/office buildings and related appurtenances, and purposes reasonably incidental thereto. Parcels 2A, 313 and 8A shall be used for single or multi family residential uses, assisted living, or convalescent homes. Use of Lots shall at all times be in compliance with the conditions of approval of the Project by any governmental entity with jurisdiction. - 7.2 Nuisances. No noxious, Illegal, or seriously offensive activities shall be canted on upon any Lot, or in any part of the Project, nor shall anything be done thereon which may be or may become a serious annoyance or a nuisance to or which may in any way unreasonably interfere with the quiet enjoyment of any other Owner of his respective Lot. in evaluating such issues, standards of governmental entities with judsdlction, If any, shall be used as guidelines. Decisions shall be reasonable and not arbitrary or capricious, and fairly applied and enforced to ensure equal treatment of Owners and Members under similar circumstances. 7.3 Vehicle Restrictions. Vehicles may be operated, maintained, and/or located In the Project only In strict compliance with the Rules. In general, only normal and reasonable transportation and service vehicles shall be allowed. inoperable, noisy, smoky, unregistered or unlicensed vehicles shall not be allowed, and vehicles may not be stored within the Project. 7.4 Parking Restrictions. Parking of vehicles within the Common Areas shall be allowed only Incompliance with the Rules: 7.5 Storage. No machinery, equipment or other personal property shall be placed or stored on the Common Area, except in compliance with the Rules. 7.6 Signs. Commercial advertising signs shall be allowed subject to the requirements of the City of La Quints and the Rules of the Association, . and the provisions of applicable laws. 7.7 Animals. No animals, pets or insects of any kind shall be raised, bred, or kept CENTER POINTE CCBR'3:112912010 25 on any Commercial Lot or in the Common Area except to the extent, If any, allowed by the Rules. After making a reasonable attempt to notify the Owner, the Board may cause any animal, pets or insects found within the Common Area in violation of the Rules to be removed to a pound or animal shelter under the jurisdiction of the City of La Quinta or the County of Riverside. 7.8 Garbage and Refuse Disposal. All rubbish, trash and garbage shall be regularly removed from the Lots, and shall not be allowed to accumulate thereon. Trash, garbage and other waste shall not be kept except in sanitary containers. All equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition, and shall be screened from view of neighboring Lots, Common Areas and streets. No toxic or hazardous materials shall be disposed of within the Project by dumping in the garbage containers or down the drains, or otherwise. All issues regarding collection, storage and distribution of garbage shall be subject to Rules adopted as provided herein. 7.8 Antennas. Antennas shall be authorized on Lots for purposes of transmitting or receiving radio, video, television and related signals, to the extent allowed by Civil Code §1376 and the Rules. 7.10 Power Equipment and Maintenance. No power equipment shall be stored or operated in the Project, except in compliance with the Rules. 7.11 Liability of Owners for Damage to Common Area. Each Owner shall be liable to the Association for damage to the Common Areas or Improvements thereon caused by such Owner, his agents, employees, guests or invitees, in accordance with the provisions of section 5.1A. 7.12 Commonly Metered Utilities. The Board may establish restrictions regarding the individual use of any utility on a common meter, If any, and may impose reasonable charges for the individual use thereof. 7.13 Activities Causing increase in insurance Rates. Nothing shall be done or kept on any Lot or In any improvements constructed thereon, or in the Common Area, which will materially increase or cause the cancellation of insurance on any Lot or the Common Area, or which would be in violation of any law. 7.14 Temporary Structures. No structure, facility or appurtenance of a temporary character shall be placed upon any Lot, except as approved by the Board or In accordance with the Rules. 7.15 Owner's Right and Obligation to Maintain and Repair. Except with respect to operation and maintenance obligations assumed by the Association as provided herein, each Owner shall have the right and obligation, at his sole cost and expense, to maintain and repair his Lot and any improvements thereon, keeping the same in a neat, CENTER POINTE CURS: 1129=0 oz.] dean, safe, sanitary and attractive condition. in the event an Owner fails to so maintain his Lot and/or Unit, the Association or its agents or employees may, after notice and a hearing as provided in the Project Documents, enterthe Lot and perform the necessary maintenance. The cost of such maintenance shall immediately be paid to the Association by the Owner of such Lot, together with interest at the rate of twelve percent (12%) per annum (but not to exceed the maximum interest rate authorized by law) from the date the cost was incurred by the Association until the date the cost is paid by the Owner. ARTICLE Vill INSURANCE; DAMAGE OR DESTRUCTION; CONDEMNATION 8.1 Insurance. The following shall apply with respect to insurance: A. The Association shall obtain and maintain policies of liability, casualty and other insurance covering the Association, its agents and employees and their obligations, activities and potential liabilities, in such amounts, coverages and forms as the Board, In its reasonable discretion, may from time to time determine. The Association shall have the right to determine whether insurance against castretty loss to specific improvements on Common Areas on any individual Lots shall be obtained and paid for by the Association, or by the Owner of the Lot. if it is determined that such insurance is to be obtained by the Owner of the Lot, the Association shall be entitled to adopt reasonable Rules and requirements in connection therewith. B. Each Owner appoints the Association or any insurance trustee designated by the Association to act on behalf of the Owners In connection with all insurance matters arising from any Insurance policy maintained by the Association, including without limitation, representing the Owners In any proceeding, negotiation, settlement or agreement. Any insurance maintained by the Association shall contain %vaiverof subrogation" as to the Association and its officers, directors and Members, the Owners and occupants of the Lots (including Declarant) and Mortgagees, and cross -liability and severability of Interest coverage insuring each insured against liability to each other insured. The Association shall periodically (and not less than once every three years) review all insurance policies maintained by the Association to determine the adequacy of the coverage and to adjust the policies accordingly. C. All individually owned insurance shall contain a waiver of subrogation as to the Association and its officers, directors and Members, the Owners and occupants of the Lots and Mortgagees, and all Members are deemed to have waived subrogation rights as to the Association and/or other Members, whether or not their policies so provide. D. Each Owner shall be responsible for obtaining, maintaining and paying for such Insurance as the Owner may deem reasonably, necessary with respect to fire, CENTER POINTE MUM 112=010 - 27 casualty and liability involving such Owner's Lot and any Improvements thereon. All such individually carried insurance shall contain a waiver of subrogation by the carrier as to the other Owners, the Association, Declarant, and the Mortgagees of such Lot. E. The Association shall make available to Members upon request copies of the Association's policies to enable Members to insure their Lots without duplicating insurance carried by the Association. F. The Association, and its directors and officers, shall have no liability to any Owner or Mortgagee if, after a good faith effort, it is unable to obtain desired insurance on a commercially reasonable basis. In such event, the Board immediately shall notify each Member and any Mortgagee entitled to notice that the insurance will not be obtained or renewed. G. Except to the limited extent, if any, otherwise provided in the Project Documents, the provisions of Civil Code Section 1365.7 relating to director and officer liability shall be fully applicable to the Association, the common interest development (Project) forwhich the Association is responsible, and Members of the Association, notwithstanding the fact that the Project is not an exclusively residential common interest development. 8.2 Damage or Destruction. The following shall apply with respect to damage or destruction of improvements in the Project: A. If all or any portion of the improvements on any Lot are damaged or destroyed by fire or other casualty, the Owner of such Lot shall expeditiously repair the damage or destruction in accordance with original plans and specifications approved for the Lot. B. If all or any portion of the improvements on Common Area portions of any Lot are damaged or destroyed by fire or other casualty, such damage or destruction shall be repaired by the party responsible for maintenance of the improvements as provided in Section 2.2.A above. C. If improvements on any Common Area Lot owned by the Association are damaged or destroyed by fire orother casualty, the improvements shall be expeditiously repaired by the Association. D. In the event the work required to repair damage or destruction involves work that is the responsibility of Owner and the Association, then all of such work shall be directed by the Board, with the expense to be allocated as appropriate between Owner and the Association. If more than one Owner is involved, the expense to be paid by each Owner shall be apportioned by the Board. E. If the Association undertakes any work which this Declaration requires an Owner to CENTER POINTE CC&R'S: 1J2M10 28 undertake, or any work which, pursuant to this Declaration, the Association is required to undertake at the expense of the Owner, the Board shall assess the Lot of the Owner for such work and shall so inform the Owner thereof in writing; provided, however, that the Assessment shall be reduced by the amount of any insurance proceeds paid to the Association as a result of damage to or destruction of the Lot Involved. Such Assessment shall be a lien upon the Lot of the Owner and may be foreclosed, as set firth In section 4.10. 8.3 Condemnation. If any Common Area portion of any Lot is taken by eminent domain, the proceeds of condemnation shall be used, to the extent practicable, to restore or replace the area affected by condemnation, and any remaining proceeds shall, subject to the rights of Mortgagees, be disbursed to the Owner of the Lot and the Association as their respective interests may appear. if any portion of any portion of the Improvements on any Lot is taken by eminent domain, the award shall be disbursed to the Owner of the Lot, subject to the rights of such Owner's Mortgagees. if the taking renders the Lot uninhabitable, the Owner shall be divested of any further Interest in the Project, including Membership in the Association, and the interests of the remaining Owners shall be adjusted accordingly. If necessary, remaining portion of the Project shall be re -surveyed to reflect any such taking. The Association shall participate in all condemnation negotiations, and shall propose the methods of using and dividing proceeds of condemnation. ARTICLE IX GENERAL PROVISIONS 0.1 Enforcement. Subject to the provisions and requirements of Article X, the Association, or any Owner, shall have the right to enforce, by any proceeding at law or In equity, all restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed by the provisions of the Project Documents, and in such action shall be entitled to recover reasonable attomeys' fees as are ordered by the Court. The Association has the right to record a Notice of Violation against the Lot of an Owner who is not in compliance with the provisions of the Project Documents. Failure by the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. 9.2 Invalidity of Any Provision. Should any provision or portion hereof be declared invalid or in conflict with any law of the jurisdiction where this Project is situated, the validity of all other provisions and portions hereof shall remain unaffected and in full force and effect. 9.3 Term. The covenants and restrictions of this Declaration shall run with and bind the Project, and shall inure to the benefit of and shall be enforceable by the Association or the Owner of any property subject to this Declaration, their respective legal representatives, heirs, successors and assigns, for a term of sixty (60) years from CENTER POINTS CURT: WN010 29 the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years, unless an instrument in writing, signed by a majority of the then Owners of the Lots, has been recorded within the year preceding the beginning of each successive period of ten (10) years, agreeing to change said covenants and restrictions in whole or in part, or to terminate the same. 9.4 Amendments. This Declaration may be amended only by the vote or written assent of a majority of the voting power of the Association, and any amendment affecting the Residential Lots must be approved in writing by the Owners) thereof. Any amendment shall be certified in a writing executed and acknowledged by the President or Vice President of the Association and recorded in the Recorders Office of the County of Riverside. No amendment shall be adopted which materially or adversely affects the rights of Declarant without the prior written consent of Declarant. No amendment shall be adopted which adversely affects the rights of the holder of any Mortgage recorded prior to the recordation of such amendment. , 9.5 Rights of First Lenders. No breach of any of the covenants, conditions and restrictions contained herein, nor the enforcement of any lien provisions herein, shall render invalid the lien of any First Mortgage (meaning a Mortgage with first priority over any other Mortgage) on any Lot made in good faith and, for value, but all of said covenants, conditions and restrictions shall be binding upon and effective against any Owner whose title is derived through Foreclosure or trustee's sale, or otherwise. Notwithstanding any provision in this Declaration to the contrary, First Lenders shall have the following rights: A. Copies of Project Documents: The Association shall make available to Owners and First Lenders, and to holders, insurers or guarantors of any First Mortgage, current copies of the Declaration, Bylaws, Articles or other Rules concerning the Project and the books, records and financial statements of the Association. "Available" means available for inspection and copying, upon request, during normal business hours or under other reasonable circumstances. The Board may impose a fee for providing the foregoing which may not exceed the reasonable cost to prepare and reproduce the requested documents B. Financial Statement: Any holder, insureror guarantor of a First Mortgage shall be entitled, upon written request, to a financial statement for the immediately preceding fiscal year, free of charge to the party so requesting. Such statement shall be fumished within one hundred twenty (120) days of the end of the Association's fiscal year. C. Notice of Action: Upon written request to the Association, identifying the name and address of the Eligible Mortgage Holder or Eligible Insurer or Guarantor, and the Lot number or address, such Eligible Mortgage Holder or Eligible Insurer or Guarantor will be entitled to timely written notice of: (1) any condemnation loss or any casualty loss which affects a material portion of the Project or any Lot on which CENTER POINTECC&R'S:11=010 30 there Is a First Mortgage held, Insured, or guaranteed by such Eligible Mortgage Holder or Eligible Insurer or Guarantor, as applicable; (2) any default in performance of obligations under the Project Documents or delinquency in the payment of Assessments or charges owed by an Owner of a Lot subject to a First Mortgage held, Insured or guaranteed by such Eligible Mortgage Holder or Eligible Insurer or Guarantor, which remains incurred for a period of sixty (60) days; (3) any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; (4) any proposed action which would require the consent of a specified percentage of Eligible Mortgage Holders as specked in section 9.51). The Association shall discharge its obligation to notify Eligible Mortgage Holders or Eligible Insurers or Guarantors by sending written notices required herein to such parties, at the address given on the current request for notice, in the manner prescribed by section 9.9. D. Amendments to Comply with Lender Requirements. Declarant reserves and shall at all times have the right to require that this Declaration be amended In any reasonable manner In order to satisfy any reasonable request or requirement of any First Lender, Eligible Mortgage Holder, Eligible Insurer or Guarantor. In the event of any exercise of such right by Declarant, the Association, the Board and each Owner shall take any and all steps and execute any and all documents reasonably necessary, expedient or convenient to effectuate the intents and purposes of this Section. Declarent shall have the right to enforce compliance with and specific performance of the requirements of this Section in any court of law with jurisdiction. The Association, the Board and each Owner shall take reasonable steps to satisfy the requirements of such program and/or agency including, without limitation, initiating and completing amendments to the Project Documents. E. Reserves: Association dues or charges shall include an adequate reserve fund for maintenance, repairs, and replacement of those improvements which the Association is obligated to maintain and that must be replaced on a periodic basis, and the Assessments therefor shall be payable in regular installments rather than by special Assessments. F. Priority of Liens: Any First Lender who obtains title to a Lot pursuant to the remedies provided In the Mortgage or Foreclosure of the Mortgage will not be liable for such Lot's unpaid Assessments and fees, late charges, fines or interest levied in connection therewith which accrue prior to the acquisition of title to such Lot by the Mortgagee (except for claims for a pro rate share of such Assessments or charges .resulting from a pro rate reallocation of. such Assessments or charges to all Project Lots including the Mortgaged Lot, and except for assessment liens recorded prior to the Mortgage). G. Distribution of Insurance"or Condemnation Proceeds: No Owner or any other party shall have priority over any rights of First Lenders pursuant to their Mortgages In the case of a distribution to Lot Owners of insurance proceeds or CENTER POINTE CCBR'S:1=010 31 condemnation awards for losses to or taking of Common Area property. H. Payment of Taxes or Insurance by Lenders: First Lenders may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the Common Area property and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for such Common Area property and First Lenders making such payment shall be owed Immediate reimbursement therefor from the Association, provided that said lenders) have given notice to the Association pdorto the making of such payment(s) and the Association has failed to pay the same. 9.6 Limitation of Restrictions on Declarant Declarant is undertaking the work of construction of a planned development and incidental improvements upon the Project. The completion of that work and the sale, rental, and other disposal of said Lots is essential to the establishment of the Project as a planned development, In order that said work may be completed and said Project be established as a fully occupied and functional planned development as rapidly as possible, nothing in this Declaration shall be understood or construed to: A. Prevent Declarant, Its contractors, or subcontractors from doing on the Project or any Lot, whatever is reasonably necessary or advisable in connection with the completion of said work; or B. Prevent Declarant or its representatives from erecting, constructing and maintaining on the Project (except upon Lots owned by others), such structures as may be reasonable and necessary for developing said Project as a planned development and disposing of the same by sale, lease or otherwise; or C. Prevent Declarant from conducting on the Project (except upon Lots owned by others) its business of completing said work and of establishing a plan of ownership and of disposing of said Project in Lots by sale, lease or.otherwise; D. Prevent Declarant from maintaining or displaying such signs, pennants and flags(s) on the Project (except upon Lots owned by others) as may be necessary forthe sale, lease or disposition thereof; or E. Subject Declarant to the architectural control provisions of Article VI for the construction of any improvement on the Project. F. Declarant reserves and shall have the right and easement, both while Declarant is still the Owner of Lots in the Project and thereafter, to enter upon the Project, and all portions thereof, for purposes of inspecting and correcting any alleged defect in the design or construction of improvements in the Project. CENTER POINTE CC&R'S: V2=010 32 9.7 Termination of Any Responsibility of Declarant In the event Declarant shall convey all of its rights, title and Interest in and to the Project to any successor Person or entity, then and in such event, Declarant shall be relieved of the pdrformance of any further duty or obligation hereunder, and such successor Person or entity shall be obligated to perform all such duties and obligations of the Declarant. 9.8 Owners' Compliance. With respect to compliance, the following shall apply. A. Each Owner, his agents, employees, guests, invitees, tenants and occupants shall comply with the provisions of the Project Documents, and the decisions and resolutions of the Association or the Board, as lawfully amended from time to time. Failure to comply with any such provisions, decisions, or resolutions shall be grounds for an action (1) to recover sums due, (2) for damages, (3) for injunctive relief, (4) for costs and attorneys fees, or (6) any combination of the foregoing. B. in the event of a violation of the Project Documents, the Association may record a Notice of Violation against the Lot of the non complying Owner..,' Upon recording a Notice of Violation, the Association shall have complete discretion in deciding whether, when and how to proceed with enforcement, and any delay after recording a Notice of Violation shall not give rise to a defense of waiver or estoppel in favor of a noncomplying Owner. The Association may take action to enforce compliance against a subsequent Owner who acquires a Lot with a recorded Notice of Violation. The right of the Association to record a Notice of Violation shall be in addition to all other rights and remedies the Association may have at law or under the Project Documents. C. All agreements, determinations and amendments lawfully made by the Association in accordance with the voting percentages established in this Declaration, or in the Articles or the Bylaws, shall be deemed to be binding on all Owners, their successors and assigns. 9.9 Notice. Unless otherwise specifically provided herein, all notices, demands or other communications given hereunder shall be in writing and shall be (1) delivered personally, in which case notice shall be deemed to have been given upon delivery, (11) delivered by United States registered or certified mail, return receipt requested and postage prepaid, in which case notice shall be deemed to have been given as of the third business day after mailing, (ill) delivered by a reputable and nationally recognized overnight courier, In which case notice shall be deemed to have been given upon delivery, or (Iv) transmitted telephonically via facsimile, In which case notice shall be deemed to have been given upon receipt bythe sender of certification of transmission. 9.10 Number; Gender. The singular and plural number and the masculine, feminine and neuter gender shall each Include the other where the context requires 9.11 Captions. The captions and headings herein are for convenience only and CENTER POINTE COMS: 1= 010 33 shall not be used to limit or expand the terms or provisions hereof. 9.12 Exhibits. All Exhibits attached hereto are deemed incorporated herein by reference as though set forth in full. 9.13 Attorneys' Fees. In the event of any arbitration or litigation regarding this Declaration, or the breach or performance of the terms and provisions of it, the prevailing party shall be entitled reasonable costs and attorneys' fees incurred in connection therewith. 9.14 Recitals and Definitions. The recitals and definitions are incorporated into the body of this Declaration and shall be effective and enforceable to the same extent. ARTICLE X ENFORCEMENT 10.1 Priority and Defined Terms. The terms and provisions of this Article shall have priority over and supersede any Inconsistent terms or provisions contained in any other Articles or portions of this Declaration. The defined (initially capitalized) terms contained in the Article shall be in addition to defined terms set forth in Article I hereof. 10.2 Enforcement and Nonwaiver. 10.2.1 Rights of Enforcement of Project Documents. The Association or any Owner shall have a right of action against any Owner, and any Owner shall have a right of action against the Association, to enforce by proceedings at law or In equity, all restrictions, conditions, covenants and reservations, now or hereafter imposed by the provisions of the Project Documents or any amendment thereto, including the right to prevent the violation of such restrictions, conditions, covenants, or reservations and the right to recover damages or other dues for such violation except that Owners shall not have any right of enforcement concerning liens for Assessments. The Association shall have the exclusive right to the enforcement of provisions relating to architectural control and the Rules, unless the Association refuses or is unable to effectuate such enforcement, in which case any Owner who otherwise has standing shall have the right to undertake such enforcement. Failure of the Association, Declarant or any Owner to enforce any covenants or restrictions herein contained shall in no event be deemed a waiver of the right to do so thereafter. 10.2.2 Procedure for Enforcement. Notwithstanding anything to the contrary set forth In Section 10.2.1, in enforcing any action under the Project Documents for monetary damages, the parties shall comply with the provisions of Califomia Civil Code Section 1354 or any successor statute or law. The Board shall annually provide to the Members a summary of the provisions of California Civil Code Section 1354 or any successor statue or law, which shall include the language required and shall be CENTER POINTE CC&R'S:1/29/2010 34. delivered in the manner provided In Civil Code Section 1365. The exception for disputes related to Assessments set forth In Section 1354 shall not apply to disputes between a Member and the Association regarding Assessments imposed by the Association, If the Member chooses to pay in full the Association all of the Assessments as specified in California Civil Code Section 1366.3 or any successor statute or law. 10.3 Notice of Actions Against Declarant, The Association shall comply with the provisions of Section 1368A of the Civil Code or any successor statute or law, prior to the filing of any civil action by the Association against the Declarant or other developer of the Project for either alleged damage to the Common Area or other property within the Project that the Association is obligated to maintain or repair, or alleged damage to any other portion of the Project that arises out of, or is integrally related to, such damage to the Common Area or other property within the Project that the Association is obligated to maintain or repair. Such notice shall specify all of the matters set forth in Section 1368.4 or any successor statute or law. 10A Dispute Notification and Resolution Procedure (Declarant Disputes); Waivers. Notwithstanding any provision of this Declaration to the contrary, any action or claim by, between Project, or among the Declarant, as the builder of any portion of the Project or any director, officer, partner, member, employee or agent of the Declarant or any contractor, subcontractor, design professional, engineer or supplier who provided labor, services or materials to the Project and who is bound or has agreed to be bound to the following dispute notification and resolution procedure (collectively, the "Declarant Parties") and either the Association or any Owner, relating to or arising out of the Project, this Declaration or other Project Documents for the Association, any other agreements between the Declarant Parties and an Owner or the Association (unless any such agreement specifies another form of dispute resolution), the sale of any portion of the Project, the use or condition of the Project or the design or construction of or any condition on or affecting the Project, including, but not limited to, design and/or construction defects, surveys, soils conditions, grading, specifications, Installation of Improvements or disputes which allege fraud, misrepresentation or breach of Implied or express warranties as to the condition of the Project where the amount In controversy is greater than $25,000 or in which non -monetary relief is sought that cannot be granted by a Municipal Court in the State of California as of January 1, 1998 (collectively, "Dispute"), shall be subject to the provisions set forth below. 10.4.1 Notice. Any person with a claim defined as a Dispute above ("Claimant"), shall notify each applicable Declarant Party in writing of the claim, which writing shall describe the nature of such claim and any proposed remedy (the "Claim Notice"). 10.4.2 Right to inspect and Right to Corrective Action. Within a reasonable period after receipt of the Claim Notice, which period shall not exceed sixty (60) days, the Declarant (and any applicable Declarant Parties) and the Claimant(s) shall meet at a mutually acceptable place within or near the Project to discuss the Dispute claim. At such meeting or at such other mutually agreeable time, the Declarant (and any CENTER POINTE CCBR'8: UZIM10 35 applicable Declarant Parties) and their respective representatives shall have full access to the property that is subject to the claim and shall have the right to conduct inspections, testing and/or destructive or invasive testing of the same in a manner deemed appropriate by Declarant (and any applicable Declarant Parties), which rights shall continue until such time as the Dispute is resolved as provided in this Section 10.4. The parties to the Dispute shall negotiate In good faith in an attempt to resolve the claim. If the Dedarant (and any applicable Declarant Parties) elects to take any corrective action, the Declarant (and any applicable Declarant Parties) and their respective representatives and agents shall be provided full access to the Project that is subject to the Dispute to take and complete corrective action. 10.4.3 Civil Code Sections 1368.4 and 1375. Nothing contained herein shall be deemed a waiver or limitation of the provisions of California Civil Code Section 1386.4; referenced in Section 10.3 of the Declaration: if the claim is subject to the provisions of Civil Code Section 1375 as it may be amended from time to time,. compliance with the procedures of Civil Code Sections 1375 (b), (d) and (e) shall satisfy the requirements of Sections 10.4.1 and 10.4.2. 10.4.4 Mediation. If the parties to the Dispute cannot resolve the claim pursuant to the procedures described in Section 10.4.2 above (including, If applicable, Civil Code Section 1375 procedures), the matter shall be submitted to mediation pursuant to the mediation procedures adopted by the American Arbitration Association (except as such procedures are modified by the provisions of this Section 10.4.4) or any successor thereto or to any other entity offering mediation services that is acceptable to such parties. No person shall serve as a mediator in any Dispute in which the person has any financial or personal Interest in the result of the mediation, except by the written consent of all parties to the Dispute participating in the mediation. Prior to accepting any appointment, the prospective mediator shall disclose any circumstances likely to create a presumption of bias or to prevent a prompt commencement of the mediation process. Except as provided in Section 10.4.8 below, the Association and each Owner covenants that each shall not commence any litigation against the Declarant Parties without complying with the procedures described in this Section 10.4.4. (a) Position Memoranda: Pre -Mediation Conference. Within ten (10) days of the selection of the mediator, each party to the Dispute participating in the meditation shall submit a brief memorandum setting forth its position with regard to the issues that need to be resolved. The mediator shall have the right to schedule a pre -mediation conference and all parties to the Dispute participating in the mediation shalt attend unless otherwise agreed. The mediation shall be commenced within ten (10) days following the submittal of the memoranda and shall be concluded within fifteen (15) days from the commencement of the mediation unless the parties to the Dispute participating in the mediation mutually agree to extend the mediation period. The mediation shall be held in the county in which the Project is located or such other place as is mutually acceptable to the parties to the Dispute participating in the mediation. CENTER POINTE CC&R'S: 12B2010 36 (b) Conduct of Mediation. The mediator has discretion to conduct the mediation in the manner in which the mediator believes is most appropriate for reaching a settlement of the Dispute. The mediator is authorized to conduct joint and separate meeting with the parties to the Dispute participating In the mediation and to make oral and written recommendations for settlement: Whenever necessary, the mediator may also obtain expert advice concerning technical aspects of the Dispute, provided the parties to the dispute participating in the mediation agree and assume the expenses of obtaining such advice. The mediator does not have the authority to Impose a settlement on the parties to the Dispute participating in the mediation. . (c) Exclusion Agreement. Prior to the commencement of the mediation session, the mediator and all parties to the dispute participating in the mediation shall execute an agreement pursuant to California Evidence Code Section 1115 at. seq. or any successor statute In order to exclude the use of any testimony or evidence produced at the mediation in any subsequent dispute resolution forum, including, but not limited to, court proceedings, reference proceedings or arbitration hearings. Pursuant to California Evidence Code Section 1115 et. seq., the agreement shall specifically state that evidence of anything said or of any admission made in the course of the mediation is not admissible evidence, and disclosure of any such evidence shall not be compelled In any civil action In which, pursuant to law, testimony can be compelled to be given. Unless the document provides otherwise, no document prepared for the purpose of, or in the course of, or pursuant to, the mediation, or copy thereof. Is admissible in evidence; and disclosure of any such document shall not be compelled in any civil action in which, pursuant to law, testimony can be compelled to be given. The provisions of California Evidence Code Section 1115 through 1128 shall also be applicable to such mediation process. (d) Persons Permitted at Sessions. Persons other than the parties to the Dispute participating In the mediation, their representatives and the mediator may attend mediation sessions only with the permission of the parties to the Dispute participating in the mediation and the consent of the mediator; provided, however, that such permission and consent shall not be required to allow participation of such parties' Insurer in the mediation to the extent required under such parties' liability insurance policy. Confidential information disclosed to a mediator by the partles,to the Dispute participating in the mediation or by witnesses in the course of the mediation while serving in such capacity shall be confidential. There shall be no stenographic record of the mediation process. (a) Expenses. The expenses of witnesses for either side shall be paid by the party producing such witnesses. All other expenses of the mediation, including, but not limited to, the fees and costs charged by the mediator and the expenses of any witnesses oththe cost of any proof or expert advice produced at the direct request of the mediator, shall be borne equally by the parties to the Dispute participating in the mediation unless they agree otherwise. Each party to the mediation shall bear its own attomeys' fees and costs in connection with such mediation. CENTER POINTE CC&R'0: IMM10 37 10.4.5 Judicial Reference. Should mediation pursuant to Section 10.4.4above not be successful in resolving any Dispute, such Dispute shall be resolved by general judicial reference pursuant to California Code of Civil Procedure Sections 638 and 641 through 645.1 or any successor statutes thereto, and as modified or as otherwise provided in this Section 10.4.5. Subject to the limitations set forth in this Section 10.4.5 the judicial referee shall have the authority to try all issues, whether of fact or law, and to report a statement of decision to the court. The judicial referee shall be the only trier of fact or law in the reference proceeding and shall have no authority to further refer any issues of fact or law to any other party, without the mutual consent of all parties to the judicial reference proceeding. (a) Participation of Declarant Parties. The parties to the Dispute shall cooperate in good faith to ensure that all necessary and appropriate parties are included in the judicial reference proceeding. Declarant shall not be required to participate in the judicial reference proceeding if (i) all parties against whom Declarant would have necessary or permissive cross -claims or counterclaims cannot be joined in the judicial reference proceeding, including, but not limited to, the Declarant Parties or (11) the enforcement of the provisions of this Section 10.4.5 would impair the insurance coverage of a Declarant Party for any claim arising out of the Dispute. Prior to commencement of any action under this procedure, Claimants) will allow Declarant a reasonable time in which to determine if the parties described in subsection (1) above can be joined in the judicial reference proceeding, to seek the consent of its liability insurance carrier to the judicial reference proceeding and to contact each applicable Declarant Party with respect to any consent required by their insurance carriers. If Declarant determines that it cannot join all of the parties set forth in subsection (1) above or that Deciarant's insurance coverage would be impaired with respect to the Dispute, or if Declarant is advised by a Declarant Party that it contends its insurance coverage will be impaired by enforcement of this Section 10.4.5. Declarant may either elect not to participate in the judicial reference proceeding, or, in the case of impairment of a Declarant Party's insurance coverage, seek enforcement of its rights to have such Declarant Party participate in the judicial reference proceeding by motion or other application pursuant to California Code of Civil Procedure Sections 638 and 641 through 645.1 or any successor statutes thereto. If Declarant elects not to participate in the judicial reference proceeding, Declarant will provide notice to Claimant(s) that the Dispute will not be resolved by judicial reference. If Declarant is unsuccessful in its attempts to compel any Declarant Party to participate in the judicial reference proceeding, Declarant will provide notice to Claimant(s) that such Declarant Party will not participate in the judicial reference proceeding and whether or not Declarant will participate in such proceeding. Upon receipt by Claimant(s) of notice from Declarant that the Dispute will not be resolved byjudicial reference, Claimant(s) may commence an action in an appropriate court of law against Declarant and/or any applicable Declarant Party. Upon receipt by Claimant(s) of notice from Declarant that any Declarant Party will not participate in the judicial reference, the judicial reference shall proceed as to all parties except such Declarant Party and upon receipt of such notice Claimant(s) may commence legal proceedings against such Declarant Party in an CENTER POINTE CC&R'S: 129/2010 38 appropriate court of law. In the event that Claimants) are permitted to commence legal proceedings as proved herein, subsections (b) through (f) and (h) though (n) of this Section 10.4.5. will not apply in such legal proceeding, provided that the legal proceeding shall be tried by a judge and not a jury and Ciaimant(s) and any applicable Declarant Party shall waive their rights to a jury (unless all panties to such proceeding mutually consent otherwise) and agree that the walverof punitive damages set forth in Section 16.4.5(g) below shall be applicable In such proceeding. (b) Place. The proceedings shall be heard in the Coachella Valley area of Riverside County. (c) Referee. The referee shall be an attorney or retired judge with experience in relevant real estate matters. The referee shall not have any relationship to the parties to the Dispute or Interest in the Project. The parties to the Dispute participating in the judicial reference proceeding shall meet to select the referee within ten (10) days after service of the initial complaint on all defendants named therein. Any dispute regarding the selection of the referee shall be promptly resolved by the judge to whom the matter is assigned, or If there is none, to the presiding judge of the Superior Court of Riverside County, Desert Branch, who shall select the referee. (d) Commencement and Timing of Proceeding. The referee shall promptly commence the proceeding at the earliest convenient date in light of all of the facts and circumstances and shall conduct the proceeding without undue delay. (e) Pre -hearing Conferences. The referee may require one or more pre - hearing Conferences. M Discovery. The parties to the judicial reference proceeding shall be entitled only to limited discovery, consisting of the exchange between such parties of only the following matters: (1) witness lists; (II) expert witness designations; (111) expert witness reports; (Iv) exhibits; (v) reports of testing or inspections of the property subject to the Dispute, Including but not limited to, destructive or Invasive testing; and (vi) trial briefs. Such parties shall also be entitled to conduct further tests and inspections as provided In Section 10.4.2 above. Any other discovery provided for in the California Code of Civil Procedure shall be permitted by the referee upon a showing of good cause or based on the mutual agreement of the parties to the judicial reference proceeding. The referee shall oversee discovery and may enforce all discovery orders In the same manner as any trial court judge. (g) Limitation on Remedies; Prohibition on Award of Punitive Damages. The referee shall not have the power to award punitive damages. In addition, as further provided below, the right to punitive damages is waived. The referee shall have the power to grant all legal and equitable remedies and award compensatory damages In the judicial reference proceeding. CENTER POINTE CCBR'S: tYAM10 39 (h) Motions. The referee shall have the power to hear and dispose of motions, including motions relating to provisional remedies, demurrers, motions to dismiss, motions for judgment on the pleadings and summary adjudication motions, in the same manner as a trial court judge, except the referee shall also have the power to adjudicate summarily issues of fact or law Including the availability of remedies, whether or not the issue adjudicated could dispose of an entire cause of action or defense. Notwithstanding the foregoing, if prior to the selection of the referee as provided herein, any provisional remedies are sought by the parties to the Dispute, such relief may be sought in the Superior Court of Riverside County, Desert Branch. (1) Rules of Law. The referee shall apply the laws of the State of California except as expressly provided herein including the rules of evidence, unless expressly waived by all parties to the judicial reference proceeding. (j) Record. A stenographic record of the hearing shag, be made, provided that the record shall remain confidential except as may be necessary for post -hearing motions and any appeals. (k) Statement of Decision. The referee's statement of decision shall contain findings of fact and conclusions of law to the extent required by law if the case were tried to a judge. The decision of the referee shall stand as the decision of the court, and upon filing of the statement of decision with the clerk of the court, judgment may be entered thereon in the same manner as if the Dispute had been tried by the court. (1) Post -hearing Motions. The referee shall have the authority to rule on all post -hearing motions in the same manner as a trial judge. (m) Appeals. The. decision of the referee shall be subject to appeal in the same manner as If the Dispute had been tried by the court. (n) Expenses. The fees and costs of any judicial reference proceeding hereunder shall be equally shared by the parties to the judicial reference proceeding. Each party to the judicial reference proceeding shall bear its own attorneys' fees and costs in connection with such proceeding. 10.4.6 Agreement to Dispute Resolution; Waivers of Jury and Punitive Damages. DECLARANT, AND BY ACCEPTING A DEED FORTHE COMMON AREA OR A LOT OR PORTION THEREOF, AS THE CASE MAY BE, THE ASSOCIATION AND EACH OWNER, AGREE TO HAVE ANY DISPUTE RESOLVED ACCORDING TO THE PROVISIONS OF THIS SECTION 10.4 AND WAIVE THEIR RESPECTIVE RIGHTS TO PURSUE ANY DISPUTE IN ANY MANNER OTHER THAN AS PROVIDED IN THIS SECTION 10.4. SUCH PARTIES ACKNOWLEDGE THAT BY AGREEING TO RESOLVE ALL DISPUTES AS PROVIDED IN THIS SECTION 10.4 THEY ARE GIVING UP THEIR RESPECTIVE RIGHTS TO HAVE SUCH DISPUTES TRIED BEFORE A JURY AND FURTHER WAIVE THEIR RESPECTIVE RIGHTS TO CENTER POKM CC&R'S: 1/29/2010 40 AN AWARD OF PUNITIVE DAMAGES RELATING TO SUCH DISPUTES; THEREBY GIVING UP ANY RIGHTS SUCH PARTIES MAY POSSESS TO SUCH REMEDIES. THIS SECTION 10.4 SHALL NOT BE AMENDED WITHOUT DECLARANT'S PRIOR WRITTEN CONSENT. 10.4.7 Exceptions to Mediation and Reference; Statutes of Limitation. The procedures set forth in this Section 10.4 shall apply only to Disputes and shall not apply to any action taken by the Association against Declarant, or any Owner for delinquent Assessments, or in any action involving any bond provided by Declarant. Furthermore, nothing in this Section 10.4 shall be considered to toll, stay, reduce or extend any applicable statutes of limitation; provided, however, that the Declarant Parties, the Association or any Owner shall be entitled to commence a legal action which in the good faith determination of any Declarant Party, the Association or Owner is necessary to preserve the Declarant Parties, the Association's or Owner's rights under any applicable statute of limitations, provided that the Declarant Party, Association or Owner shall take no further steps in prosecuting the action until it has complied with the procedures described In Sections 10.4.4 and 10.4.6. [BALANCE OF PAGE INTENTIONALLY LEFT BLANK — SIGNATURE PAGE FOLLOWS] CENTER POINTE CCBR'3: WIM010 41 IN WITNESS WHERE OF, the undersigned have executed this Declaration this day of , 2009. CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company By: Oliphant Enterprises, Inc. Its: Man ger Date: By: Its: President L.Q. HOSPITALITY, LLC, a California limited liability company By: Oliphant Enterprises, Inc. , Its: Ma a er Date-� By: Its: President EISENHOWER MEDICAL CENTER, A California non-profit public benefit corporation Date: By: Its: Date: By: Huy Vu, an individual DOLPHIN LA QUINTA, LLC, a California limited liability company By: Dolphin Partners, Inc., a California corporation Its: Manager Date: By: Kevin S. Pitts Its: President LE PROPERTIES, LLC, a Nort to limited liability company Date: By: Its: CENTER POINTE CC&R'S: 1/4,2010 42 IN WITNESS WHERE OF, the undersigned have executed this Declaration this day of 2009.. CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company Date: By: Its: L.Q HOSPITALITY, LLC, a Califomia limited liability company Date: By:, Its: EISENHOWER MEDICAL CENTER, A Californi -profit pu efit ration Date: �� a �%' 9 By: Its: Date: By: Huy Vu, an individual DOLPHIN LA QUINTA, LLC, a Calffbrnia limited liability company By: Dolphin Partners, Inc., a California corporation Its: Manager Date: By: Kevin S. Pitts Its: President APPLE. PROPERTIES, LLC, a North to limited liability company Date: By: ti+�• CENTER POINTE OC&WS:12MM9 42 IN WITNESS WHERE OF, the undersigned have executed this Declaration this day of .2009. Date: Date: Date: Dater Date: CP DEVELOPMENT LA QUINTA, LLC; a California limited liability company A L.Q. HOSPITALITY, LLC, a California limited liability company M EISENHOWER MEDICAL CENTER, A California non-profit public benefit corporation DOLPHIN LAQUINU, LLC, a California limited liability company By: Dolphin Partners, Inc., a California corporation Its: Manager By: Kevin S. Pitts Its: President PROPERTIES, LLC, 5akQt.a limited liability company Date: By:, CENTER POINTE CCBR'S: 12l29/2009 42 IN WITNESS WHERE OF, the undersigned have executed this Deolaretlon this day of .2009. Date: Date: Date: Date: Date: 2Z D [Signature Page Continues] CENTER POIMB COMS: 20=10 CP DEVELOPMENT LA QUINTA, LLC, a California limited liability company By: Oliphant Enterprises, Inc. Its: Manager By, Its: President L.Q. HOSPITALITY, LLC, a California limited liability company .By: Oliphant Enterprises, Inc. Its. Manager By. Its: President EISENHOWER MEDICAL CENTER, A Califomia non-profit public benefit corporation By: By. Huy Vu, an Individual DOLPHIN a Califomia i NO By: Dolphi artn Its: Manag r By: Kevin S Iliq Its: P idei ff, corporation [Signature Page Continued] The Maviag Family Trust dated 8115/08 Date:�b M V CENTER POINTE CURS: 2142010 43 STATE OF CALIFORNIA ) ) ss COUNTY OF RIVERSIDE ) On January4. 2010, before me, Lucille E. Swanner, Notary Public, personally appeared Richard R. Oliphant who proved to me on the basis of satisfactory evidence, to be the person(#) whose name is/ate subscribed to the within Instrument and acknowledged to me that he/ehekhey executed the same in his/herMwir authorized capacky(*s), and that by his/herAmir signature on the Instrument the person(D, or the entity upon behalf of which the person(ii) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witit(nr�ess my hand and official seal. NATURE OF NOTARY tm-M-M - s-16-62.a'- Camntltgaf f 16620AS No" liubIM - Cotloml0 � PpA�yy RNenlde County i61rrew�vM. ft"MCIV 1,201 CALIFORNIA ALL-PURPOSE• r r .-....-.:...t�- State of California County of On personally _r Iff,' ` ------------ nave eiway sew aewa who proved to me on the basis of satisfactory evidence to be the person(( whose narrtW WaKsubscribed to the within instrument and admowled ad to me that he/se/titezecuted the same in his/t};r/ttt'r authorized capacity(i and that by histt dr/[t)(r signatureM on the instrument the personod, or the entity upon behalf of which the person(4 acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my Oand and official seal.. Signature t sww.. w wary Punic OPT/ONAL Though the hdormatlon below is not required by raw, 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 D ul Title or Type ofDocument: n' to 5e tm vl Sr Document Date: Signer(s) Other Than Nam e Capacity(les) Claimed by Sign Signer's Name: ❑ Individual ❑ Corporate Officer—Tiile(s): — ❑ Partner —❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is n07011", 4nA C1(qq„ens Signer's Nam ❑ individuell' ❑ Is net artner — D Limited El General ❑ A ey in Fact D Trustee Top of Numb here ❑ Guardian o onservator ❑ Other: Signer Is Representing: STATE OF CALIFORNIA ) )as COUNTY OF RIVERSIDE ) On December 29, 2009, before me, Lucille E. Swanner, Notary Public, personally appeared d RIA a %td who proved to me on the basis of satisfactory evidence, to be the pe n ose name Were subscribed to the within Instrument and acknowledged to me that he/sheAkey executed the some in histhsrA"r authorized capaclty(4es), and that by his(keNtheir signature on the instrument the person*, or the entity upon behalf of which the person(!A acted, executed the Instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. �RE OFNOTARY W�CR(E E, SWIWNER Commtsion # 1662948 Ise Noksy IANBe ' COWosrlo_ Rlvertlds County My Comm. &*w M0Y 1, 201 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of iXA.'! 'P- 'r_ e 7 _ a / /met personally appeared A NOTARY PU" who proved to me on the basis of satisfactory evidence to be the person(pf whose nameW is/are subscribed to the within instrument and acknowledged to me that he/sheAhey executed the same in hisllwAhefr authorized capacity(ies), and that by hisAwfAbeir slgnature,(s)' on the instrument the personX, or the entity upon behalf of which the persoDW acted, executed the instrument I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature:4A&-h �1"Q&al Plea Notary SOWoPnoaat ft" Ab" Mgmwm of Notary 44 t T?Mgh the Inbmfadon below Is not regUn d by raw, k may prove valuable to persons retying on the document and could prevent fraudulent removal and reanachmerft of this torn to anmher document. Description of Attached Document Tide or Type of Document: Document Date: Signer(s) Other Than Named Above: CapaclMles) Claimed by Signer(s) Signers Name: ❑ Corporate Officer — Thle(s): ❑ Individual ❑ Partner — ❑ Limited ❑ General lop of thumb here ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Signer's Name: ❑ Corporate Officer — THIe(s): ❑ individual ❑ Partner — ❑ Limited ❑ General Top of thumb here ❑ Attomey in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other. Signer Is Representing: rcemessor COUNTY�/„� �,�„� ./ln rL^s2—f.L'�'$.''�i,� CAPACITY CLAWED BY SIGNER . ❑ PIOMDUAI{SI Fs,pereonalyappemed � � � Noo. U� ❑CORPORATE OFRCER(m1mSTITLE(S) me on fie bads of selNfamy &Wins M be s) vfioee rwne(s) m Bls tliM� segrumeittandack MmaBret hef and Bret by ItteMe Bndue(s) on Bb Bua aameM dsedoepedq(bm), Bu pawn(s� m Ne upon bdreN of vAiMh the p PARTNERS) person(s)ao0ed, eAMM Bb sldnemenL ATTORNEY-M-FACT �Q �'l"'UME(S) IomftudmPENALTYOFPERJURYwdmBub moldn$rneofCalbmia ButMefongoappersprsphlsWe and sonem C SUBSCRIBING WITNESS Witness my hand and official sm 1. O GUARDIAMMONSERVATOR - D OTIERI - CATERNIA SOLOMON 2- Commission f 1788A21 SIGNER IS REPRESENTING: Notary PubHO• COM011110 I NAME OF PFJMMS) OR ENTITY(ES) SIGMATILMIUMOTARY Los Angelae County NgrComm.t�tphesFab8.2012 ATTENTION NOTARY: Afth ugh Bat lntmmadon requested bebW Is OPTIONAL, it MuM Wmffd haudulent TWO or Type o/DMMrd aBaohmW of Bib oeMbateto unsutlwd[ed doeumenb. Nanber of Pow 6 THIS CERTE,MLIBTBFj A .A H�OS87HE OVENT DESCRIBFA97131GIiL•b�s�Y .Date of DoWmenIt" vi rn /}A,tl 8C@vS7It�1 /?j {/��QI970.VT F.S'9Q if Bgner(a) War Than Narmd Above CENTER POINTE CCWS: 1Y1812010 E191 EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY NOTE: CONFIRM PARCELSILOTS PARCEL 1: Hibachi Property: Parcel 1 of Parcel Map 31116, as per Map recorded in Book 212, Pages 60 to 66 of Parcel Maps, Records of Riverside County PARCEL 2A: CP Properly: Parcel A of Lot Line Adjustment No. 2008-495 in the City of La Quints PARCEL 36: Dolphin Property: Lots 1 and 2 of Tract No. 36089, in the City of La Quints, County of Riverside, as per map recorded in Book _, Pages _ through _, inclusive. Records of Riverside County. PARCEL 4: LO Property: Parcel 4 of Parcel Map 31116, as per Map recorded in Book 212, Pages 60 to 66 of Parcel Maps, Records of Riverside County PARCELS: Applebees's Prooel Parcel 5 of Parcel Map 31116, as per Map recorded in Book 212, Pages 60 to 66 of Parcel Maps, Records of Riverside County PARCEL 6A: Eisenhower Property: Parcel A of Lot Line Adjustment No. 2006-452 (Parcel 6 together with that portion of Parcel 7 of Parcel Map No. 31116 PARCEL 8A: CP Property Parcel B of Lot Line Adjustment No. 2006-452 in the City of La Quints. CENTERPOINTE CC&R5: 1122MOl0 EXHIBIT " B° COMMON AREA Lots A, B, C, E, F, G and H of Parcel Map 31116, as per Map recorded in Book 212, Pages 60 to 66 of Parcel Maps, Records of Riverside County as shown on the attached Parcel Map. CENTERPOINTE CURS:1120=10 EXHIBIT "C" SQUARE FOOTAGES OF LOTS [Attached] CENTERPOINTE CC&RS: 1/29=10 !a ° §col § . § k § k § §.§ § �$®■ ■ §¥§§§ c;.., � | ■� . - � ] f ] ] BE § 8 � . 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Dated: 2017 SUSAN MAYSELS, City Cler City of La Quinta, California (CITY SEAL) 78-495 CALLE TAMPICO, LA QUINTA, CA 92253 Document-40283 72-Page-1 Page 1 of 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF LA QUINTA 78-495 Calle Tampico La Quinta, CA 92253 Attention: CITY CLERK DOC # 2017-0398460 09/26/2017 01:20 PM Fees: $0.00 Page 1 of 4 Recorded in Official Records County of Riverside• Peter Aldana Assessor -County Clerk -Recorder "This document was electronically submitted to the County of Riverside for recording" Receipted by: SONIA #751 RESOLUTION NO. 2017-045 ACCEPTING THE OFFER OF DEDICATION OF LOT D- OF TRACT MAP NO. 31116 FOR PUBLIC STREET AND PUBLIC' UTILITY PURPOSES Tract Map No. 31116, Lot D THIS AREA FOR RECORDERS USE ONLY This document is exempt from payment of recording fee pursuant to Government, Code Sections 6103 and 27383 about:blank 9/26/2017 RESOLUTION NO. 2017 - 045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ACCEPTING THE OFFER OF DEDICATION OF LOT D OF TRACT MAP NO. 31116 FOR PUBLIC STREET AND PUBLIC UTILITY PURPOSES WHEREAS, an offer of dedication of Lot D of Tract Map No. 31116 was made to the City by original owners as part of final map approvals; and WHEREAS, the owners offered dedication of Lot D to the City for public street and public utility purposes; and WHEREAS, Tract Map No. 31116 was recorded with the County of Riverside in 2005; however, Lot D was not accepted by the City of La Quinta at the time of recordation; and WHEREAS, the City of La Quinta now desires to accept said offer of dedication in order to ensure public access and continued maintenance of the street and median landscape. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: SECTION 1. The City Council of the City of La Quinta hereby accepts the offer of dedication for public street and public utility purposes of Lot D of Final Tract Map No. 31116 as recorded on April 4, 2005, Instrument No. 2005-0262238, Seeley Drive between Washington Street and Miles Avenue. SECTION 2. The City Clerk of the City of La Quinta is hereby authorized to record this Resolution with the Office of the County Recorder in the County of Riverside, State of California, and the City Manager and City Clerk are hereby authorized to take any other steps required to effectuate this Resolution. Resolution No. 2017-045 Tract Map No. 31116, Lot D - dedication for public street and public utilty purposes Adopted: September 19, 2017 Page 2 of 2 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 191h day of September 2017, by the following vote: AYES: Council Members Fitzpatrick, Pena, Radi, Sanchez, Mayor Evans NOES: None ABSENT: None ABSTAIN: None LINDA EVANS, Mayor City of La Quinta, California ATTEST: �" Aso-- 'r P.6", SUSAN MAYSELS, City Cler City of La Quinta, California (CITY SEAL) APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California