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Jacobsen Hardy Golf Design/SilverRock 07PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the LA QUINTA REDEVELOPMENT AGENCY ("Agency"), and JACOBSEN/HARDY GOLF DESIGN, INC. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to the design of Golf No. 2 at SilverRock Resort, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. Consultant further represents that Peter Jacobsen, a member of Consultant's design team, is a member of the Champion's Tour whose involvement with the facility is both desired and anticipated by Owner to be of value in the full realization of the City of La Quinta's golf course and objectives. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the Agency and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain, at its sole cost and expense, such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole, obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of Consultant's services required by this Agreement. 1.4 Familiarity with Work. Prior to completing the Preliminary Design Phase, Consultant warrants that (a) it will have investigated and considered the work to be performed, (b) it will have investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it will have carefully considered how the work should be performed, and (d) it will fully understand the facilities, difficulties and restrictions with respect to the performance of the work under this Agreement. The Agency acknowledges that Consultant will, in part, be relying upon information provided to it by Agency's engineering consultant, RBF Consulting. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by Agency, Consultant shall immediately inform Agency of such fact and shall not proceed with the work except at Consultant's risk until written instructions to proceed are received from the Contract Officer (as defined in Section 4.2 hereof). If the Contract Officer directs Consultant not to proceed with the work, Consultant shall not be liable for the delay. 1.5 Care of Work and Standard of Work. a. Care of Work. Consultant shall adopt reasonable means during the term of the Agreement to preserve the work Consultant is performing under this Agreement and shall be responsible for any damages, to persons, the work or the property that is caused by Consultant or Consultant's acts or omissions, until the work has been completed pursuant to the terms of this Agreement, except Consultant shall not be responsible hereunder for any loss or damages that may be caused by Agency's, Agency's agents (other than Consultant) or Agency's employee's negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective design work at no further cost to Agency, when such inaccuracies are due to the negligence of Consultant. b. Standard of Work. Consultant acknowledges and understands that the services and work contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant's services and work will be held to a heightened standard of quality and workmanship for professionals similar to Consultant. Consistent with Section 1.4 hereinabove, Consultant represents to Agency that it holds the necessary skills and abilities to satisfy the heightened standard of work as set forth in this Agreement. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not exceeding ten percent (10%) of the Contract Sum may be approved in writing by the Contract Officer. Any greater increase must be approved by the Agency Board. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in Exhibit "D" (the "Special Requirements"). In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") in a total amount not to exceed Nine Hundred Seventy -Six Thousand and Eight Hundred Dollars ($976,800) (the "Contract Sum"), except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation shall include payment in accordance with the percentage of completion of the services as is specified in the Schedule of Compensation. The Contract Sum is inclusive of amounts paid in reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses as specified in the Schedule of Compensation. 2.2 Method of Payment. Any month in which Consultant wishes to receive payment, Consultant shall submit to Agency, in the form approved by Agency's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall describe in detail (1) the services provided since the last invoice, (2) the services which are necessary to complete the phase, and shall specify the percentage of completion of the applicable phase of work, and (3) a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terms of this Agreement. Within 14 days of receipt of the invoice, the Contract Officer or his designee shall notify the Consultant if there is an issue with regard to verifying the percentage of work completed or if there is a concern with some other aspect of the invoice. The notice will, to the extent reasonable, identify what information or correction is necessary to address the issue or concern identified in the notice. If no such notice is given within the time period, the invoice will be presumed to be adequate and will be forwarded to the Finance Department for payment. Once the Contract Officer confirms the percentage of completion of the phase of work identified in the request for payment, the Agency will pay Consultant for all fees and authorized expenses stated thereon which are approved by Agency pursuant to this Agreement no later than thirty (30) days after invoices are received by the Agency's Finance Department with written confirmation from the Contract Officer that the request is authorized for payment. 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "C" (the "Schedule of Performance"). Additional extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. The parties recognize.that at the Agency's option, there may be a gap in the work on the project after the Preliminary Design and Routing Plan Phase. The parties have provided for such a gap though annualized fee adjustments as set forth in Exhibit "B". 3.3 Force Maieure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than Agency, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this Agreement shall commence on September _ 2007. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, this Agreement shall continue in full force and effect until completion of the services as provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: • Peter Jacobsen Principal/President • Jim Hardy Principal/CEO • Rex Vanhoose Senior Vice-President/Managing Architect • Brian Johnson Design Associate It is expressly understood that the experience, knowledge, capability, and reputation of each of the foregoing principals and employees were a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of Agency. In addition, Jim Hardy shall be required to certify on all plans and designs submitted to the Agency that he has personally reviewed and approves the plans and designs set forth in the submittal. Such certification is not intended to create any individual liability for Jim Hardy to the Agency. If at any time during the term of this Agreement, either Peter Jacobsen or Jim Hardy ceases to be a principal in Consultant, the Agency shall have the right, but not the obligation, to immediately terminate this Agreement. In such event, provided that Agency has made all required payment prior to the termination, the Agency shall have the rights to all work product produced as of that termination, and shall have the right to fully utilize that work product, but shall not have the right to use the name of Consultant, Peter Jacobsen, or Jim Hardy in connection with the Golf Course. If the Agency chooses not to exercise its right of termination, it shall have the right to continue to make full use of the work product produced by Consultant and to identify the work product produced and the golf course build pursuant thereto as the work or design of ki Consultant, the work or design of Peter Jacobsen, and/or the work or design of Jim Hardy, provided that it has made all payments required by this Agreement. 4.2 Contract Officer. The Contract Officer shall be Thomas P. Genovese, Executive Director or such other person as may be designated by the Agency's Executive Director. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for Agency to enter into this Agreement. Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. 4.4 Independent Contractor. Neither Agency nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of Agency and shall remain at all times as to Agency a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 4.5 Agency Cooperation. Agency shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are available to Consultant only from or through action by Agency. 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither Agency nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming Agency and its officers and employees as additional insured shall 5 be delivered to and approved by Agency prior to commencement of the services hereunder. The amount of insurance required hereunder shall be: Personal Iniury/Property Damage Coverage $2,000,000 per occurrence, $4,000,000 in the aggregate Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither Agency nor its insurers shall be required to contribute to such loss. r A certificate evidencing the foregoing and naming Agency and its officers and employees as additional insured shall be delivered to and approved by Agency prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employer's liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services' as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behalf of the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to Agency of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify Agency, its officers, employees, Consultants, or agents. 5.2 Indemnification. The Consultant shall defend, indemnify and hold harmless the Agency, the City, their officers, officials, employees, representatives and agents ("Agency Indemnitees") from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s) and/or for damage to property (including property owned by the Agency) to the extent caused solely by the negligence or willful misconduct of Consultant, its officers, anyone employed by Consultant, Consultant's agents or anyone for whose acts Consultant may be liable. In the event the Agency Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving claims for which they are indemnified pursuant to the preceding paragraph, then Consultant shall provide a defense to the Agency Indemnitees, or at the Agency's option, reimburse the Agency Indemnitees their reasonable costs of defense, including reasonable attorney's fees, incurred in defense of such claim. In addition, Consultant shall be obligated to promptly pay any final judgment or portion thereof rendered against the Agency Indemnitees arising out of claims for which they are indemnified pursuant to the preceding paragraph. The Agency shall defend, indemnify and hold harmless the Consultant, its officers, principal, employees, representatives and agents ("Consultant Indemnitees") from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s) and/or for damage to property to the extent caused solely by the negligence or willful misconduct of the Agency, its officers, anyone employed by the Agency, the Agency's agents or anyone for whose acts Agency may be liable. In the event the Consultant Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving claims for which they are indemnified pursuant to the preceding paragraph, then Agency shall provide a defense to the Consultant Indemnitees, or at the Consultant's option, reimburse the Consultant Indemnitees their reasonable costs of defense, including reasonable attorney's fees, incurred in defense of such claim. In addition, the Agency shall be obligated to promptly pay any final judgment or portion thereof rendered against the Consultant Indemnitees arising out claims for which they are indemnified pursuant to the preceding paragraph. 5.3 Remedies. In addition to any other remedies Agency may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, Agency may take any one of the following options, at its sole discretion: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; or b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof; or C. Terminate this Agreement Exercise of any of the above remedies, however, is in addition to any other remedies Agency may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's performance of work under this Agreement. 5.4 General Conditions pertaining to provisions of insurance coverage by Consultant. Consultant and Agency agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds Agency, its officials, employees and agents, using the form of endorsement attached hereto as Exhibit "E". 2. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the Agency or its operations limits the application of such insurance coverage. 3. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Agency and approved of in writing. 4. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any Consultant. 5. All coverage types and limits required are subject to approval, modification and additional requirements by the Agency, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect Agency's protection without Agency's prior written consent. 6. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to Agency at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, Agency has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by Agency shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at Agency option. 7. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to Agency of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 8. It is acknowledged by the parties coverage required to be provided by Consultant, primary, non-contributing basis in relation to any available to Agency. 9. Intentionally deleted. of this agreement that all insurance is intended to apply first and on a other insurance or self insurance 10. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Consultant, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self -insure its obligations to Agency. If Consultant's existing coverage includes a deductible or self -insured retention, the deductible or self -insured retention must be declared to the Agency. At that time the Agency shall review options with the Consultant, which may include reduction or elimination of the deductible or self -insured retention, substitution of other coverage, or other solutions. 11. The Agency reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the Agency will negotiate additional compensation proportional to the increased benefit to Agency. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13. Consultant acknowledges and agrees that any actual or alleged failure on the part of Agency to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on Agency nor does it waive any rights hereunder in this or any other regard. 14. Consultant will use its best efforts to renew the required coverage annually until the one-year anniversary of the opening Golf Course No. 2 at SilverRock Resort as long as the insurance is commercially reasonably available. 9 15. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to Agency within five (5) days of the expiration of coverages. 16. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to Agency, its employees, officials and agents. 17. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured tobe limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this Section supersede all other sections and provisions of this Agreement with respect to insurance to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 20. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge Agency or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to Agency. It is not the intent of Agency to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against Agency for payment of premiums or other amounts with respect thereto. Consultant agrees to provide immediate notice to Agency of any claim or loss against Consultant arising out of the work performed under this Agreement. Agency assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve Agency. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 10 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees and agents in the performance of this Agreement, shall be the property of Agency and shall be delivered to Agency upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by Agency of its full rights of ownership of the documents and materials hereunder. In the event Agency or any person, firm or corporation authorized by Agency reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, Agency hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of Agency, except as required by law or as authorized by Agency. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, Agency may take such immediate action as Agency deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any parry's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit Agency's right to terminate this Agreement without cause pursuant to Section 7.7. 7.3 Intentionally Omitted. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. Agency's consent or approval of any act by Consultant requiring Agency's consent or approval shall not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific, performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to the termination. 7.8 Termination for Default of Consultant: Suspension of Work for Nonpayment of Agency. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, Agency may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and 12 Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed Agency as previously stated in Section 7.3. If Agency fails to make the payments as required by Section 2.2, Consultant shall have the right to suspend its performance until the Agency complies with the requirements of Section 2.2. Consultant shall have a reasonable time to return to work after any suspension once the Agency makes the payments required by Section 2.2. If the Agency fails to make payments of undisputed amounts owed pursuant to Section 2.2 for 90 days or more, Consultant shall have the right to terminate this Agreement. If Consultant exercises this right, and the Agency is in breach of its obligations under this Agreement, the Agency shall not have the right to use the name of the consultant, Peter Jacobsen, or Jim Hardy in connection with the Golf Course. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 AGENCY OFFICERS AND EMPLOYEES: NONDISCRIMINATION. 8.1 Non -liability of Agency Officers and Employees. No officer or employee of Agency shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by Agency or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 13 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. To Agency: LA QUINTA REDEVELOPMENT Attention: Thomas P. Genovese Executive Director 78-495 Calle Tampico P.O. Box 1504 La Quinta, California 92247-1504 To Consultant: AGENCY Jacobsen Hardy Golf Course Design Attention: Rex VanHoose Senior Vice President 12777 Jones Road, Suite 150 Houston, Texas 77070 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authori . The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. 14 IN WITNESS WHEREOF, he parties have executed this Agreement as of the dates stated below. LA QUINTA REDEVELOPMENT AGENCY Date:O / d/ By:! IrYY1 Ct+n��fY�J U' THOMAS P. GENEVOSE Executive Director ATTEST: VERONICA J. MONRCINO, CMC Agency Secretary APPROVED AS TO FORM: M.M. KATAMNE JEN N Agency Counsel Date: Ld p CONSULTANT: JACOBSEN/HARDY GOLF DESIGN, INC. Title:��d 15 Exhibit A Scope of Services The following tasks shall be performed Jacobsen / Hardy Course Golf Design, Inc. in the preparation of the conceptual, design development, and construction plans and specifications for the 18-hole golf course and during it's construction. 1.0 Conceptual Design Phase The following scope of work identifies the scope associated with development of a conceptual plan and specifications for the proposed 18-hole golf course. In addition to the scope of work described below, the Designer will be available to respond to all reasonable requests by the Agency and its Project Manager, on behalf of the Agency, for meetings, correspondence and coordination. 1.1 Existing Project Documentation Review The Designer shall review existing project information and analyze it to determine issues, problems, findings and problem resolutions that could be relevant to the project design and construction. 1.2 Initiate Project The Designer will initiate the project by meeting with the Agency's steering committee, the SilverRock Technical Team, staff, the Project Manager, and other design team members to review the conceptual development plan, available information, and to discuss the following: • Project goals, objectives and opportunities as envisioned by the committee; • Project design criteria (e.g., environmentally sensitive, mulit-use concept, etc.); • Project theming concepts including overall character, landscaping, architecture, monumentation, lighting, etc.; • Anticipated mitigation measures and other project site constraints including boundaries, set backs, well sites, Coachella canal, and along with those sensitive biological resource areas; • The mitigation monitoring and reporting program for the SilverRock project; • Information that will be available from the Agency, including base maps, civil engineering plans, etc.; • Requirements of other design team members directly related to the Designer's design product, and; • Project budget and schedule. 1.3 Site Review The Designer shall attend a site review meeting with the Agency and Project Manager and other design team members to visit and analyze the project site. 1.4 Conceptual Golf Course Routing Plan The Designer shall prepare a conceptual golf course routing plan which includes the layout of the course at 1"=200'. During the preparation of the conceptual plan, the Designer will discuss various design options, along with the advantages and disadvantages with each option. The Designer will also provide up to three (3) revisions to the concept plan as necessary in order to arrive at a plan that is acceptable to the Agency. The routing plan shall depict the following: • Tees, greens, and fairway boundaries • Centerlines • Water Features • Spatial relationships, including clearances and setbacks to other special uses • Bridge locations or other methods of canal crossings • Score Card • Preliminary Grading Concept The Designer shall prepare conceptual grading plans for the golf course in sufficient detail to delineate the proposed grading concept, including contours and spot elevations. The Civil Engineer will review the conceptual plan and prepare a quantity estimate and a cutlfill map for the project. The conceptual grading plan will include preliminary horizontal and vertical control for the lake(s) and water features(s). The Concept Plan shall also include other features necessary for the Agency to make informed decisions regarding the routing concept. Following acceptance of the Concept Plan by the Agency, the Designer will prepare a color rendering of the plan. 1.5 Conceptual Cost Estimate Following completion of the Concept Plan, the Designer will provide a conceptual cost estimate which outlines the costs by major construction cost categories. Cost estimate shall reflect a "cost of living" increase projected to occur as a result of the golf course construction being scheduled to commence in 2011, and with completion in 2012. 1.6 Design Schedule Designer will develop and submit a design schedule to the Agency, outlining the time requirement for each phase of design. Schedule shall consider the "stand down" time between the end of the conceptual design phase and the start of the design development phase of work. 1.7Specifications The Designer will provide the table of contents for the project specifications pertaining to the construction of the project components under the responsibility of the Designer. The table of contents shall be formatted by Construction Specification Institute (CSI) categories. 1.8Team Interface The Designer will interface with other design team consultants through the Agency and Project Manager by incorporating other consultant's design plan concepts as they relate to the golf course plans and specifications. The Designer will be responsible for providing review and comment on other design team consultant plans (e.g., facility architect, landscape architect, lake designer, etc.) for consistency with the golf plans, adherence to project theming and for purposes of value engineering. 1.9Base Sheets During Conceptual Design, the Designer will provide base design information in computer format to the Landscape Architect, as necessary, for their use in creating the overall project base sheets for the design consultant team. This base information will include the conceptual layout of the golf course, indicating those key design elements as described with Section 1.4 and their relationship to the other recreational uses. The Designer will continue to provide base information in computer format throughout Design Development and Construction Documents as necessary for use by the appropriate design team consultants in order for the team to update their plans as necessary. 2.0 Design Development Phase After approval of the Conceptual Design by the Agency, and in accordance with the requirements of the golf course design schedule / schedule of performance, the Designer shall prepare a Design Development Plan package which will refine the design character of the project and identify speck materials to be used. The plans will delineate all site construction elements and will include general grassing concepts. The plans will be developed in typical construction document format, at 1 "=100' on 30" x 42" sheets, and as further defined by the Agency prior to initiation. Due to the time lapse from the end of the conceptual design phase and the start of the design development phase, the plans shall be based on current, updated base information to be provided by the project civil engineer, reflecting the "as built' site conditions. 2.1 Grading The Designer will prepare grading plans for the golf course in sufficient detail to delineate the proposed grading concept, including contours and spot elevations. The project Civil Engineer will review the plan and prepare a quantity estimate and a cuttfill map for the project. The grading plan will include horizontal and vertical control for the lake(s) and water feature(s). 2.2 Drainage The Designer will prepare a drainage plan for the golf course which delineates drainage concepts, including structure locations and piping layout. This plan will be provided to the project Civil Engineer for review and analysis to determine structure and pipe sizes, and to make recommendations for additional drainage improvements as necessary. 2.3 Clearing & Staking The Designer will prepare a clearing and staking plan which includes dimensions to the centerline of pertinent key golf course features such as bunkers, tees, greens, turn points, etc. The clearing limits will indicate native features, such as trees, which will be cleared, saved or relocated, along with the proposed locations for relocation. 2.4 2.4 Grassing & Seeding Plan The Designer will prepare a grassing and seeding plan which delineates the limits of grassing and defines the type of seeding mix to be applied within each designated area. Seed mix requirements will include application rates. Areas proposed for re -vegetation will be identified. (note: as stated previously, the landscape architect will be responsible for defining the mix requirements for areas of re -vegetation, as well as design of the native landscaping and irrigation requirements.) 2.5 Specifications The Designer will prepare draft construction specifications in CSI "Master Format" for incorporation into the master specification book. Specifications will be provided both in computer format as well as in hard 2 copy, 8-1/2" x 11" printout. The Designer will coordinate said specifications with other design team consultants through the Agency and the Project Manager to assure consistency throughout the design. 2.6 Design Development Cost Estimate At the completion of the Design Development process, the Designer will update the conceptual cost estimate based upon the Design Development plans and specifications. The Design Development cost estimate will further define the construction items, by providing quantities and unit costs. Cost estimate shall reflect a "cost of living" increase projected to occur as a result of the golf course construction being scheduled to commence in 2011, and with completion in 2012. 2.7 Project Design and Construction Schedule Designer will prepare a preliminary construction schedule for review, and will revise the design schedule accordingly. 3.0 Construction Documents Phase After approval of the Design Development package by the Agency, the Designer shall prepare a Construction Document package for the key project items as identified within section 2.0 in sufficient form and detail to facilitate construction implementation of the proposed improvements. 3.1 Construction Plans Construction Plans and details for all features of the 18 holes of the golf course, to include tees, fairways, roughs, greens, mounds, swales, bunkers, grading for water features, and any other feature as necessary for the construction of the golf components of the project. Designer will have no responsibility to prepare plans, specifications or drawings for the Golf Course clubhouse, half -way house, shelter houses, sanitary facilities, drinking fountains, maintenance facilities, storm drainage system, dams, bridges, walls, cart paths, or any other similar facilities or structures incidental to the Golf Course; provided that Designer will periodically consult with and advise Agency in relation to such facilities and render advice, when requested, as to the conceptual location of such facilities or structures, but Designer will not have any liability to Agency with respect to the design, location or construction of such facilities or structures. 3.2 Greens Plans 4.0 3.3 The Designer will develop greens plans for the golf course which provide sufficient detail and control for construction. Construction Specifications The Designer will finalize the construction specifications in CSI "Master Format" for incorporation into the master specification book. Final specifications will be provided both in computer format as well as in hard copy, 8-1/2" x 11" printout which indicates the changes to Design Development Specifications through italicizing/highlighting. The Designer will coordinate said final specifications with other design team consultants through the Project Manager to assure consistency throughout the design. 3.4 Construction Document Cost Estimate At the completion of the Construction update the Design Development Construction Document plans and Document cost estimate will further previously developed. Document process, the Designer will cost estimate based upon the specifications. The Construction refine the quantities and unit costs The Designer shall provide assistance during the bidding of the project to include the following: • Attendance at a pre -bid meeting to be held onsite; • Provide assistance to the Project Manager to respond to Contractor - submitted requests for information pertaining directly to the Designer's scope of work in the form of written clarifications or revisions to plans and specifications as appropriate; • Provide assistance for review of Contractor bids; • Assistance in the review of bid packages and selection of the Contractor(s) for the golf course. Construction Process Throughout the construction of the facility, which is anticipated to occur over a twelve (12) month period, the Designer will provide construction support, including field and office services to include the following: Attend pre -construction meetings at the Agency; 0 5.1 • Review materials, submittals, shop drawings, and system drawings for conformance with the standards prescribed within the Construction Documents, and recommend approval or disapproval; • Provide responses to contractor -issued requests for information pertaining directly to the Designer's scope of work by preparing additional drawings or clarification to specifications as necessary; • Provide assistance for review of the Contractor's cost proposals; • Available to provide assistance as needed for evaluation of project change orders; • Schedule periodic site visits to the job site for on -site review of the construction of the project in accordance with the approved golf course plans and specifications; • Participate in the development of project close out/punchlist documentation; review and approval of as-builts and warranty/manual submitted by contractor; verify contractor's comformance to final punchlist. Construction Performance and Supervision of Work Designer will not be a party to, nor will it be obligated under, any contracts entered into for the performance of the construction work, such obligations being solely the responsibility of the Agency. Designer will not be responsible under this Agreement for supervising the work of any contractor with respect to the construction means, methods, techniques, sequences, or procedures or the safety precautions incident thereto, nor will Designer be responsible for any contractor's malfeasance of misfeasance. Designer's efforts will be directed toward advising the Agency, during the course of Golf Course construction, as to how the construction is or is not being performed in conformance with the requirements of the Plan Documents. Designer will keep Agency informed of the progress of the work and will endeavor to alert Agency to defects and deficiencies in the work of the contractor during the course of construction. Designer will make recommendations to the Agency concerning the quality and performance of the Work. Agency will be the final judge of the performance thereunder by the contractor. The Designer will promptly render interpretations on all claims, disputes and other matters in question between the Agency and the contractor relating to the execution or progress of the work under the Designer's plans and specifications necessary for the proper execution or progress of the work. The Designer will make recommendations to the Agency's Construction Manager as to whether the Agency should reject work which does not conform to Designer's plans or specifications, and as to whether the 7 Construction Manager should order the work to be corrected to conform to the plans and specifications. 5.2 Applications for Payment Designer will review contractors application for payment, and will make recommendations to the Project Manager. 6.0 Post Construction Within one month prior to the expiration of the Contractor's one year warranty period, the Designer will inspect the project and provide advice on the apparent deficiencies in construction. 7.0 Meetings. Presentations and Site Visits 7.1 Design Process The design process and bidding process are anticipated to occur over a twelve (12) month period, during which the design team will meet regularly to review design progress, and periodically to discuss value engineering issues as well as the project budget and schedule. The Designer should anticipate up to two (2) meetings per month to be held at the Agency. 7.2 Design Presentations The Designer shall participate in presentations of the project at the following milestones: • Mid -Concept design • Concept design approval • Mid -Design development • Design development approval • Construction document approval At mid -concept design, there may be more than one, but no more than three presentation reviews. Presentations will require preparation of the presentation materials and sufficient methods of communication to clearly articulate the project concept, various features of the project and design emphasis, and other information to ensure consistency with the Agency's goals and objectives for the project. 7.3 Ground Breaking 0 Both Peter Jacobsen and Jim Hardy will attend the ground breaking event for the project. 7.4 Grand Opening Both Peter Jacobsen and Jim Hardy will attend the Grand Opening event for the golf course. 8.0 Designer's Representation Designer represents and warrants that it is an expert in the design of golf courses and that it will design for Agency a first class facility of a quality similar to other courses designed by Designer, meeting golf industry standards. 9.0 Agency's Responsibilities 9.1 Agency's Provided Information The Agency will furnish to the Designer at Agency's sole expense such materials, surveys, tests, maps, analyses and other similar information requested by the Designer reasonably necessary for the Designer to execute it's work under this Agreement. The information required to be provided by the Agency will include, but may not necessarily be limited to, a complete and accurate topographical survey satisfactory to the Designer, indicating any and all existing natural and manmade features such as trees, brush, rock outcroppings, waterways, fences, trails and buildings on the Golf Course sites, given, where pertinent, the grades and lines of streets, pavements and adjoining properties, and describing rights, restrictions, easements, boundaries and contours of the buildings on site; full information as to soil borings and test pits; chemical or other tests; hydrological information relating to the site; and sewer, water, gas and electrical services. The Agency will furnish the requested information with reasonable promptness after Designer has provided Agency with a detailed list of items needed by Designer to perform its work. Designer shall not be responsible or held liable and the Agency hereby agrees to defend, indemnify and hold Designer harmless for any claims, damages, and/or causes of actions arising as a result of the inaccuracy in the information provided by the Agency or its agents under this Section 9.1 or under Sections 9.2, 9.3, 9.4, or 9.5 below. 9.2 Agency's Professional Consultants Agency will be responsible for retaining the services of qualified professional consultants to review the Plan Documents where required, in order to assure compliance with all applicable laws and regulations affecting the site, including, without limitation, environmental, wetlands, land use, zoning and other similar matters. Designer agrees to work with such consultants as required in the design process. Agency will supply Designer with copies of all construction, engineering, zoning, environmental, and other regulations applicable to the Golf Course. Although Designer will take care to prepare the Plan Documents in compliance with such regulations, it will be Agency's responsibility to ensure such compliance. If requested to do so by Agency, Designer will adjust the Plan Documents to conform to such regulations. 9.2.1 Civil Engineer In connection with the foregoing, Agency will employ the services of licensed engineers for the purpose of designing the storm drainage system for the Golf Course, bridges, walls, cart paths, and any other facilities or structures which require the services of an engineer. Such engineers will also be responsible for advising Designer regarding the impact of applicable regulations and engineering practices upon Designer's Plan Documents and for coordinating the storm drainage system with other drainage features of the Golf Course. Agency acknowledges that Designer's recommendations (as set forth in the Plan Documents) for storm water drainage, conceptual cart path locations, soil and materials movement and placement and other similar recommendations must be reviewed and confirmed by qualified licensed engineers which must be retained by Agency at its cost and expense. 9.2.2 Soils Engineer Agency will retain the services of a qualified soils engineer who will provide Designer with an analysis of the site of the Golf Course. Designer will submit a completed set of Plan Documents to the soils engineer retained by Agency for analysis. If the soils engineer makes any suggested modifications to the Plan Documents Designer will make such modifications to the Plan Documents, Designer will make such modifications at no charge to Agency, except for such expenses as are required to be paid by Agency under this Agreement. 9.2.3 Irrigation Designer 10 Agency will retain the services of a qualified Irrigation Designer to prepare and design the irrigation system for the Golf Course. Designer will provide Agency with a list of recommended Irrigation Designers should Agency not have one of its own. Upon completion of the irrigation plans, Agency will provide the Designer with a set of the plans for review and approval, prior to implementation. 9.2.4 Agronomist Agency will retain the services of a qualified Agronomist to assist the project team in the analysis and evaluation of site specific data (i.e. soil tests, water quality tests) and to advise the project team on the specification of grass types, native vegetation, soil amendments, and fertilizer. 9.2.5 Landscape Architect Agency will retain the services of a qualified Landscape Architect to prepare and design the hardscape (Formal Landscape) portions of the project. The Designer will assist the Landscape Architect with the location of the hardscape areas to ensure that they enhance the golf course and do not compromise playability. 9.2.6 Lake Designer Agency will retain the services of a qualified Lake Designer to assist in the design and specification of proposed water feature(s). Note: The services, information, surveys and reports required by this Section 9.0 will be furnished at Agency's expense, and Designer will be entitled to rely upon the accuracy and completeness thereof. 9.3 Agency Representative The Agency's representative shall be as stated in section 4.2 of the agreement. 9.4 Agency's Prompt Action The Agency will furnish required information and services and render approvals and decisions as expeditiously as necessary for orderly progress of Designer's services and of the work and Designer shall not be responsible for any delays in Designer's performance caused as a result of Agency's delay in providing such information. 11 Exhibit B Schedule of Compensation Payment shall be in accordance with the schedule of values/payment schedule attached herewith and submitted in conformance with Section 2.2 of the Agreement. Total compensation and expense reimbursement for all work under this contract shall not exceed $976,800.00 except as specified in Section 1-6 - Additional Services of the Agreement. 1.0 COMPENSATION. 1.1 In consideration of the Consultant's services provided herein to Agency, it Is agreed that Agency will pay the following fees to the Consultant. 1.2 Fee. The fee to be paid by Agency to Consultant for all design services rendered by Consultant during the Preliminary Design Phase, Design Development Phase, Final Design Phase, Construction Phase, and Promotion Services, will be payable on as follows: PROJECT TASKS NON -PHASED FEE PHASED FEE Design / Routing ( $ 80,000,00 ',�. • •i ill •1 :!P !6 • -. Corhpliste In 2011; 6% per year SUBTOTAL.800,000,00 REIMBURSABLE: $ J00,00000 !e r!o re - ! a!! Pbaw 114 .:! !!! 1.3 Expenses in Addition to Fee Provided in Section 1.2 Above. Reimbursable expenses are in addition to the compensation paid to Consultant and include following expenditures, and no others, actually incurred by the Consultant and its employees in the interest of the project, in a total aggregate amount not to exceed one hundred thousand dollars ($100,000.00): a. Expense of transportation in connection with traveling to and from the City of La Quinta and to the Golf Course; living expenses in connection with out-of-state travel associated solely with this Project, long distance communications, telex, telefax and overnight mail. b. Expense of reproductions, postage and handling of drawings, specifications and other documents. C. Payment requests including the above items shall be submitted as outlined in Section 2.2 of the Agreement and will require the appropriate supporting documentation, for expenses incurred. E Exhibit C Schedule of Performance 119/015610-0065 845048 03 e09/14/09 c $ I i 5 ? „5 aiH $ i sad i� 3 S I I D L �6 �yO 6n fL 2y Y� yy/c >'u y0 N 0 Se . a a 5 S 5 SJA �} I� J 33$$5 gg gg SS SS p �E° � � fF€YfiP 5 e � F 66iFy U a c L w - ' Exhibit D Special Requirements 1.0 DESIGNER ACCESS. Peter Jacobson, Jim Hardy, Rex Vanhoose and Brian Johnson shall have the right to play golf course on the course they design, free of charge, subject to availability and providing a minimum of three (3) days advance notice. They may be accompanied by up to three guests (not to exceed a foursome). This provision may not be utilized by any one of the four individuals more than four (4) times in any one year. 2.0 DESIGNER/JACOBSEN/HARDY GOLF COURSE AND PROMOTIONAL -SERVICES. 2.1 Use of the Jacobsen Hardy and Consultant's Names In Connection with Identifying the Golf Course Designer. It is understood that upon and after the signing of this Agreement, the City, the Agency, and the developers and operators of the SilverRock Resort will be entitled to utilize the names "Peter Jacobsen" and "Jim Hardy" as well as the name "JACOBSEN/HARDY GOLF'DESIGN, INC." or "JACOBSEN/HARDY GOLF DESIGN" in referencing the design or the designer of the golf course. This right shall extend to all forms of advertising and informational materials. This right of use is subject to the provisions of Sections 4.1 and 7.8 of the Agreement. This right shall not be subject to approval by Consultant, or by Peter Jacobson or Jim Hardy, inasmuch as such approval if given by the signing of this Agreement. In exercising this right of usage, the Agency, City, developers, and/or operators shall not state or imply that Consultant or its principals are endorsing or are affiliated with any component of the SilverRock Resort other than the golf course which is the subject of this Agreement. 2.2 Additional Use of the Jacobsen and/or Hardy Names, Likenesses. Etc. a. Consultant recognizes that the Agency chose Consultant based in large part upon Consultant's and Consultant's Principal's reputation and name recognition, and the Agency's and City's intention of promoting the golf course and the SilverRock Resort of which the golf course is a part on the basis of reputation of Consultant and its Principals. In addition to using the names of Consultant and its Principals as specified in Section 2.1 immediately above, Consultant acknowledges that another key benefit that the Agency and the City expect to receive under this Agreement in exchange for the consideration referenced in Exhibit B is the promotional value associated with utilization of the name (beyond that authorized in Section 2.1), likenesses, logos, photographs, videos, and images of Peter Jacobson, Jim Hardy, and Consultant with no additional fees or charges. Consultants and its Principals agree to coordinate with Agency and the City for no additional fee for using 1191013610-0065 945048 03 .09114/07 1 Jacobsen's and/or Hardy's role as designer in the promotion of the Golf Course. In connection with promotion of the Golf Course, Agency and the City may use the Designer's, Jacobsen's and/or Hardy's name, likeness, and logos, and may use copies or replicas of plans prepared by Designer and delivered to Agency in brochures, sales films and videotapes, press releases, and similar promotional materials and in print and/or electronic media advertisements. Except as provided in Section 2.1 immediately above, Agency and City will not in any way make or permit any use of Designer's, Jacobsen's and/or Hardy's name, likeness, or logos, or of any likeness of such plans prepared by Designer, without the express written approval of Designer prior to use. Once promotional material has been approved for use by Designer, Agency, the City, and may continue such use without further approval from Designer, provided the promotional material is used in the same manner as approved by Designer. As used in this Agreement, "Designer's name" is "Jacobsen/Hardy Golf Design". Such use must be limited to Designer's, Jacobsen's and/or Hardy's role as designer of the Golf Course and will not extend beyond the Golf Course to include the promotion of any other development or facility in the same complex as the Golf Course, except for references to the fact that Designer, Jacobsen and/or Hardy designed the Golf Course. Agency will submit a copy of any such proposed use to Designer for approval prior to use, and Designer will advise Agency of its approval or disapproval within ten (10) days of its receipt of such proposed use. If Designer fails to respond within the 10 day period, the use of the item(s) shall be deemed approved. Approval of photographs will require the submission of actual production photography. Agency will be responsible for enforcing compliance with the provisions of this paragraph by all other parties involved with the Goff Course. Agency will furnish Designer with copies of all photographs taken and film and videotape footage shot by or on behalf of Agency which involve Jacobsen and/or Hardy, and Designer will have the right to use, free of charge, all or any part of such materials and any reproductions thereof. 2.3 Required On -Site Appearances. There will be a minimum of two (2) Jacobsen appearances on site, in conjunction with the design and promotion of the Golf Course (ground breaking and grand opening); and a minimum of two (2) Hardy appearances on site (ground breaking and grand opening), in conjunction with the design, construction, and promotion of the golf course, as follows: 119/01561 a 66 84504803 e09/14/07 b. Jacobsen and Hardy's presence and participation at ground breaking and the grand opening of the Golf Course including an 18- hole round of golf, if desired by the Agency, and involvement in other reasonable opening day activities. Unless otherwise agreed upon, the grand opening festivities, for which Jacobsen's and Hardy's presence is required, must take place within the first six (6) months of the course opening for play. C. Reasonable additional Jacobsen and/or Hardy participation in the promotion of the Golf Course as may be agreed upon by the parties. 119/015610-0065 845049.03 a09/14/07 N EXHIBIT F A BUSINESSOWNERS PB 04 48 08 03 & THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following. PREMIER BUSINESSOWNERS LIABILITY COVERAGE FORM SCHEDULE Name Of Person Or Organization: LENNAR CORPORATION INSURANCE COMPLIANCE The following is added to Section If. WHO IS AN e. "Bodily injury" or "property dm aage" that arises INSURED, out of, in whole or in part, or is a result of, in Any parson or organization shown in the Schedule of whole or in part, the active negligence of the in the Schedule of this A� this endorsement is also an insured, but only with additional Insured shown V� respect to liability arising out of your ongoing operations performed for such additional insured or endorsement b. "Personal and advertising injury" that arises out arising out of premises owned by or rented to you, or any independent "personal and advertising the additional subject to the following additional exclusion: injury" offense committed by insured shown in the Schedule of this This insurance, including any duly we have to defend endorsement "suits", does not apply to is All terms and conditions of this policy apply unless modified by this endorsement Includes Copyrighted material of Insurance Services Office, Inc., with its pemlisson• Copyright, Insurance Services Office, Inc., 1997 Page 1 of 1 PB 044a 0803 - 72 wret ACP UPOC7211751OW AGENT COPY „ ASSIGNMENT AND ASSUMPTION OF AGREEMENT FOR CONTRACT SERVICES BETWEEN THE LA OUINTA REDEVELOPMENT AGENCY JACOBSEN/HARDY GOLF DESIGN INC. AND JACOBSEN HARDY GOLF COURSE DESIGN LLC THIS ASSIGNMENT AND ASSUMPTION OF AGREEMENT FOR CONTRACT SERVICES ("Assignment") is entered into to be effective as of 2008 ("Effective Date"), by and among the La Quinta Redevelopment Agency, a public body, corporate and politic ("Agency"), Jacobsen/Hardy Golf Design, Inc., 7-4)CAS corporation ("Assignor"), and Jacobsen Hardy Golf Course Design, LLC, a ZX4.5 limited liability company ("'Assignee"). RECITALS A. Whereas Agency and Assignor entered into that certain Agreement for Contract Services (" Agreement'), a true and correct copy of which is attached hereto as Exhibit A. B. Whereas that certain Agreement provides in Section 4.3 thereof that neither the Agreement nor any interest therein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of the Agency. C. Whereas Assignor and Assignee represent and warrant that in January 2008 Assignor reorganized from a corporation to an LLC; that Assignor's new legal name is that of Assignee (Jacobsen Hardy Golf Course Design, LLC); and that the reorganization will not cause a change in management or operations under the Agreement. D. The resulting change described in Recital C constitutes and transfer by operation of law and therefore requires Agency's consent and the parties entering this Assignment. NOW THEREFORE, the parties to this Assignment agree as follows: ASSIGNMENT 1. Recitals. The preceding recitals are incorporated herein by this reference. 2. Assignment. Assignor hereby assigns to Assignee all of Assignor's rights and interests and delegates to Assignee all of its duties and obligations under the Agreement. All references to Jacobsen/Hardy Golf Design, Inc. in the Agreement going forward after the Effective Date of this Assignment shall mean Jacobsen Hardy Golf Course Design, LLC. Except as expressly set forth in this Assignment, the provisions of the Agreement shall prevail. This Assignment does not constitute a novation. 3. Assumption. Assignee hereby accepts the foregoing assignment and assumes and agrees to timely keep, perform and discharge all of its duties and obligations under the Agreement. 4. Agency Approval. described in this Assignment. 2156/015610-0047 789969 01 a02/11/08 The Agency approves of' the assignment and assumption OC/234690.1 OC/234728 1 5. Insurance. At all times Assignee shall in particular keep, observe and maintain all of the obligations under Section 5.0 of the Agreement, including providing Agency with new certificates of insurance bearing Assignee's name prior to commencement of services pursuant to the provisions of the Agreement. Any new documentation required by Section 5, including without limitation, certificates of insurance, shall be provided to Agency within ten (10) business days of the mutual execution of this Assignment. 6. Consultant Representatives. Section 4.1 of the Agreement shall in particular remain in full force and effect. The principals listed in Section 4.1 of the Agreement shall be responsible during the term of the Agreement for directing all activities of Assignee and devoting sufficient time to personally supervise the services under the Agreement. 7. Inurement. This Assignment shall inure to the benefit of the Agency and Assignee, and their respective successors, heirs, and successors -in -interest. GENERAL PROVISIONS 8. Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of California. 9. Counterparts; Facsimile Delivery. This Assignment may be executed in counterparts which, when taken together, shall constitute a fully executed original. Signatures may be delivered by facsimile which shall be binding upon the parties as if they were originals. 10. Effect of Assi lg Went. Except as specifically set forth herein, the Agreement shall continue in full force and effect as previously written. [Signatures contained on following page] 2156/015610-0047 78996901 a02/11/08 OC/234690 1 OC/234728 1 IN WITNESS WHEREOF, the parties have executed this Assignment as of the day and year first above written. "ASSIGNOR" GOLF DESIGN, "ASSIGNEE" JACOBSEN HARDY GOLF COURSE DESIGN, LLC By: Its. i 5:M "AGENCY" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporateandpolitic Y7/! k,.4/. 9Kl dC Agency Executive Director A T T• / VeronicaMontecin , Agency Secretary APPROVED AS TO FORM: RUTAN S TUC -L By: M. Katherine Jenson, ency Counsel 2156/015610-0047 789969 01 a02/1 V08 OC234690 1 OC234728 1 2156/015610-0047 789969 01 a02/11/08 Exhibit A "Agreement" [attached hereto] ME OC/234690.1 OC234728.1 DE ACOMM CERTIFICATE OF LIABILITY INSURANCE I 02/18/2008 PRODUCER Oren Beal Insurance Agency, Inc. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 1500 University Dr. E. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Suite 0 101 College Station TX 77840 INSURERS AFFORDING COVERAGE_ INSURED JaCOb5el1-(lardy Golf Course DCSIgn, LI.0 INSURERA Allied Insurance Company 12777 Jones Road Ste 150 INSURERS TX 77070 INSURER C Admiral Insurance Company Houston ,,,.,, COVERAGES POLICIES OF INSURANCE LISTED DELOW HAVE BEEN ISSUED TO THE INSUREO NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING THE REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR ANY MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJFCT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS POLICY EFFECTNE POLN:'/ E%PIM710N r— LIYITB INSR TYPE OF IN RANGE POLICY NUMBER y,D� 2000000 A IGENERAL UABILITY ACP BPOC 7231751850 02/15.'2008 02/15/2009 EACHOCCURRENCE s 300000 X COMMERCIAL GENERAL LIABILITY FIRE DAMAGE A oAefim 5000 CLAIMS MADE uOCCURi MED EXP(Aoy onager. S PERSONAL S ADV INJURY It _- _2000000 GENERALAGGREGATE S- 4000000 _ PRODUCTS- COMPIOPAGG f 4000000 G_E_N'L AGGREGATE LIMIT APP SLPOLR POLI V PRO- LOC A AUTOMOBILE ACPBAPC7231751850 02!15,12008 02/15/2009 1 COMBINED SINGLE LIMIT $ 1000000 X (Ea ewdeM) '— I ANY AUTO I ALL OWNED AUTOS IBODILY INJURY S Ipf er persanl I SCHEDULED HIRED AUTOS (BODILY INJURY $ P) NON -OWN----- S TY R EERTY DAMAGE S PROPERTY (Per ewdeM) (Per GARAGE LIABILITY AUTO ONLY _EAACCIDENT ._ -- ANY AUTO OTHER THAN _EA ACC AUTOONIY AGG A ExceffuABUTY 02/15,/2008 02/15/2009 EACHOCCVRRENCE _ 1000000 S_._..—L IACPCAD7231751850 X OCCUR CLAIMS MADE AGGRE ATE S S DEDUCTIBLE s E RET NTI N WORKERS COMPENSATION AND 46WECPH4533 :01/20/2008 '101/20/2009 X WC STATU- DTH- E L EACH ACCIDENT S 1000000 EMPLOYERS' LIABILITY E.L. DISEASE • EA EMPLOYEE ,{-. 1000000 EL DISEASE -POLICY LIMB 1000000 C GTHERprofessional E00000012820-06 01/27/2009 10112712009 $1,000,000 occurrence Limit W/ S1,000,000 Aggregate Limit Liability DESCRIPTION Of OPEMTIONSRMATIONSNEMICLEWE%CLUSIONS ADDED BY ENDORSEMENTMPECIAL PROVISIONS La Quinta Redevelopment Agency, its Officer and Employees are shown as Additional Insureds on General Liability and Auto Coverage... Atm. Thomas P. Genovese LA QUINTA, REDEVELOPMENT AGENCY 78-495 C'alle Tampico P O Box 11,04 La Quinia ACORD CA 92247.1504 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE E%NMTMIN DATE THEREOF. THE ISSUING INSURER WILL ENDEAVOR TO MAIL _30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER. DID AOSNM OR AUTHORZED REPRESENTATIVE PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreemenf) is made and entered Into by and between the LA QUINTA REDEVELOPMENT AGENCY (`Agency'), and JACOBSEWHARDY GOLF DESIGN, INC. ("Consukanf). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Servicesin compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to the design of Goff No. 2 at SilverRock Resort, as specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. Consultant further represents that Peter Jacobson, a member of Consultant's design team, is a member of the Champion's Tour whose involvement with the facility is both desired and anticipated by Owner to be of value in the full realization of the City of La Quinta's golf course and objectives. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules„ regulations and laws of the Agency and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits. Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain, at its sole cost and expense, such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole, obligation to pay for any fees, assessments and taxes, plus applicable penalties and Interest, which may be imposed by law and arise from or are necessary for the performance of Consultant's services required by this Agreement. 1.4 Familiarity with Worts. Prior to completing the Preliminary Design Phase, Consultant warrants that (a) it will have investigated and considered the work to be performed, (b) it will have investigated the site of the work and fully acquainted itself with the conditions there existing, (c) It will have carefully considered how the work should be performed, and (d) it will fully understand the facilities, difficulties and restrictions with respect to the performance of the work under this Agreement. The Agency acknowledges that Consultant will, in part, be relying upon information provided to it by Agency's engineering consultant, RBF Consulting. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by Agency, Consultant shall immediately inform Agency of such fact and shall not proceed with the work except at Consultant's risk until written instructions to proceed are received from the Contract Officer (as defined in Section 4.2 hereof). If the Contract Officer directs Consultant not to proceed with the work, Consultant shall not be liable for the delay. 1.6 Care of Work and Standard of Work. a. Care of Work. Consultant shall adopt reasonable means during the term of the Agreement to preserve the work Consultant is performing under this Agreement and shall be responsible for any damages, to persons, the work or the property that is caused by Consultant or Consultant's acts or omissions, until the work has been completed pursuant to the terms of this Agreement, except Consultant shall not be responsible hereunder for any loss or damages that may be caused by Agency's, Agency's agents (other than Consultant) or Agency's employee's negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective design work at no further cost to Agency, when such inaccuracies are due to the negligence of Consultant. b. Standard of Work. Consultant acknowledges and understands that the services and work contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant's services and work will be held to a heightened standard of quality and workmanship for professionals similar to Consultant. Consistent with Section 1.4 hereinabove, Consultant represents to Agency that lt holds the necessary skills and abilities to satisfy the heightened standard of work as set forth in this Agreement. 1.6 Additional Services. In accordance with the terms and conditions of this Agreement, Consultant shall perform services in addition to those specified In the Scope of Services when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any addition in compensation not exceeding ten percent (10%) of the Contract Sum may be approved in writing by the Contract Officer. Any greater increase must be approved by the Agency Board. 1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth In Exhibit "D" (the "Special Requirements'. In the event of a conflict between the provisions of the Special Requirements and any other provisions of this Agreement, the provisions of the Special Requirements shall govern. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") in a total amount not to exceed Nine Hundred Seventy -Six Thousand and Eight Hundred Dollars ($976,800) (the "Contract Sum', except as provided in Section 1.6. The method of compensation set forth in the Schedule of Compensation shall include payment in accordance with the percentage of completion of the services 2 as is specked in the Schedule of Compensation. The Contract Sum is inclusive of amounts paid in reimbursement for actual and necessary expenditures for reproduction costs, transportation expense, telephone expense, and similar costs and expenses as specified in the Schedule of Compensation. 2.2 Method of Payment Any month in which Consultant wishes to receive payment, Consultant shall submit to Agency, in the form approved by Agency's Finance Director, an invoice for services rendered prior to the date of the invoice. Such invoice shall describe in detail (1) the services provided since the Nast invoice, (2) the services which are necessary to complete the phase, and shall specify the percentage of completion of the applicable phase of work, and (3) a certification by a principal member of Consultant specifying that the payment requested is for work performed in accordance with the terns of this Agreement. Within 14 days of receipt of the invoice, the Contract Officer or his designee shall notify the Consultant if there is an issue with regard to verifying the percentage of work completed or if there is a concern with some other aspect of the invoice. The notice will, to the extent reasonable, identify what information or correction is necessary to address the issue or concern identified in the notice, if no such notice is given within the time period, the invoice will be presumed to be adequate and will be forwarded to the Finance Department for payment Once the Contract Officer confirms the percentage of completion of the phase of work identified in the request for payment, the Agency will pay Consultant for all fees and authorized expenses stated thereon which are approved by Agency pursuant to this Agreement no later than thirty (30) days after invoices are received by the Agency's Finance Department with written confirmation from the Contract Officer that the request is authorized for payment 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Ail services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "C" (the "Schedule of Performance"). Additional extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. The parties recognize.that at the Agency's option, there may be a gap in the work on the project after the Preliminary Design and Routing Plan Phase. The parties have provided for such a gap though annualized fee adjustments as set forth in Exhibit "B". 3.3 Force Maieure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than Agency, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. The term of this Agreement shall commence on September �, 2007. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, .this Agreement shall continue in full force and effect until completion of the services as provided in the Schedule of Performance. 4.0 COORDINATION OF WORK 4.1 Reoresentative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: o Peter Jacobsen Principal/President o Jim Hardy Principal/CEO o Rex Venhoose Senior Vice-President/Managing Architect o Brian Johnson Design Associate It is expressly understood that the experience, knowledge, capability, and reputation of each of the foregoing principals and employees were a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of Agency. In addition, Jim Hardy shall be required to certify on all plans and designs submitted to the Agency that he has personally reviewed and approves the plans and designs set.forth in the submittal. Such certification is not intended to create any individual liability for Jim Hardy to the Agency. If at any time during the term of this Agreement, either Peter Jacobsen or Jim Hardy ceases to be a principal in Consultant, the Agency shall, have the right, but not the obligation, to immediately terminate this Agreement. In such event, provided that Agency has made all required payment prior to the termination, the Agency shall have the rights to all work product produced as of that termination, and shall have the right to fully utilize that work product, but shall not have the right to use the name of Consultant, Peter Jacobsen, or Jim Hardy in connection with the Golf Course. If the Agency chooses not to exercise its right of termination, it shall have the right to continue to make full use of the work product produced by Consultant and to identify the work product produced and the golf course build pursuant thereto as the work or design of 4 Consultant, the work or design of Peter Jacobsen, and/or the work or design of Jim Hardy, provided that it has made all payments required by this Agreement. 4.2 Contract Officer. The Contract Officer shall be Thomas P. Genovese, Executive Director or such other person as may be designated by the Agency's Executive Director. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions, which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Suboontractina or Assionment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for Agency to enter into this Agreement. Consultant shall not contract with any other entity to perform In whole or in part the services required hereunder without the express written approval of Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. 4.4 Indeoendent Contractor. Neither Agency nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of Agency and shall remain at all times as to Agency a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 4.5 Agency Cooperation. Agency shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are available to Consultant only from or through action by Agency. 5.0 INSURANCE, INDEMNIFICATION AND BONDS. 5.1 Insurance. Prior to the beginning of and throughout the duration of the Work performed under this Agreement, Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither Agency nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming Agency and its officers and employees as additional insured shall be delivered to and approved by Agency prior to commencement of the services hereunder. The amount of insurance required hereunder shall be: Personal Injury/Prooerty Damage Coverage $2,000,000 per occurrence, $4,000,000 in the aggregate Consultant shall carry automobile liability Insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, arty agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither Agency nor its insurers shall be required to contribute to such loss., A certificate evidencing the foregoing and naming Agency and its officers and employees as additional insured shall be delivered to and approved by Agency prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws with employers liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must "pay on behM of" the Insured and must include a provision establishing the insurers duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to Agency of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify Agency, its officers, employees, Consultants, or agents. 5.2 Indemnification. f3 The Consultant shall defend, indemnify and hold harmless the Agency, the City, their officers, officials, employees, representatives and agents ("Agency Indemnitees') from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s) and/or for damage to property (including property owned by the Agency) to the extent caused solely by the negligence or willful misconduct of Consultant, its officers, anyone employed by Consultant, Consultant's agents or anyone for whose acts Consultant may be liable. In the event the Agency Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving claims for which they are indemnified pursuant to the preceding paragraph, then Consultant shall provide a defense to the Agency Indemnitees, or at the Agency's option, reimburse the Agency Indemnitees their reasonable costs of defense, including reasonable attorney's fees, incurred in defense of such claim. In addition, Consultant shall be obligated to promptly pay any final judgment or portion thereof rendered against the Agency Indemnitees arising out of claims for which they are indemnified pursuant to the preceding paragraph. The Agency shall defend, indemnity and hold harmless the Consultant, its officers, principal„ employees, representatives and agents (°Consultant Indemnitees") from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s) and/or for damage to property to the extent caused solely by the negligence or willful misconduct of the Agency, its officers, anyone employed by the Agency, the Agency's agents or anyone for whose acts Agency may be liable. In the event the Consultant Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving claims for which they are indemnified pursuant to the preceding paragraph, then Agency shad provide a defense to the Consultant Indemnitees, or at the Consultant's option, reimburse the Consultant Indemnitees their reasonable costs of defense, including reasonable attomey's fees, incurred in defense of such claim. In addition, the Agency shall be obligated to promptly pay any final judgment or portion thereof rendered against the Consultant Indemnitees arising out claims for which they are indemnified pursuant to the preceding paragraph. 5.3 Remedies. In addition to any other remedies Agency may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, Agency may take any one of the following options, at its sole discretion: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; or b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof; or 7 c. Terminate this Agreement. Exercise of any of the above remedies, however, is in addition to any other remedies Agency may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's performance of work under this Agreement. 5.4 General Conditions pertainina to DrOVISions or insurance Consultant. Consultant and Agency agree to the following with respect provided by Consultant: t. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds Agency, its officials, employees and agents, using the form of endorsement attached hereto as Exhibit "E". 2. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the Agency or its operations limits the application of such insurance coverage. 3. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Agency and approved of in writing. 4. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over claims, including any exclusion for bodily injury to an employee of the Insured or of any Consultant 5. All coverage types and limits required are subject to approval, modification and additional requirements by the Agency, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect Agency's protection without Agency's prior written consent. 6. Proof of compliance with these insurance. requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant's general liability policy, shall be delivered to Agency at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, Agency has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by Agency shall be 13 charged to and promptly paid by Consultant or deducted from sums due Consultant, at Agency option. 7. Certificate(s) are to reflect that the insurer will provide thirty (30) days notice to Agency of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate. 8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant, is intended to apply first and on a primary, non-contributing basis in relation to any other Insurance or self insurance available to Agency. 9. Intentionally deleted. 10. Consultant agrees not to self -insure or to use any self -insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Consultant, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self -insure its obligations to Agency. If Consultants existing coverage includes a deductible or self -insured retention, the deductible or self -insured retention must be declared to the Agency. At that time the Agency shall review options with the Consultant, which may include reduction or elimination of the deductible or self4nsured retention, substitution of other coverage, or other solutions. 11. The Agency reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. if such change results in substantial additional cost to the Consultant, the Agency will negotiate additional compensation proportional to the increased benefit to Agency. 12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 13. Consultant acknowledges and agrees that any actual or alleged failure on the part of Agency to inform Consultant of non-compliance with any insurance requirement in no way imposes any additional obligations on Agency nor does lt waive any rights hereunder in this or any other regard. 14. Consultant will use its best efforts to renew the required coverage annually until the one-year anniversary of the opening Golf Course No. 2 at SilverRock Resort as long as the insuranceis commercially reasonably available. 0 15. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to Agency within five (5) days of the expiration of coverages. 16. The provisions of any workers' compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to Agency, its employees, officials and agents. 17. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured tobe limiting or all-inclusive. 18. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 19. The requirements in this Section supersede all other sections and provisions of this Agreement with respect to insurance to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 20. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge Agency or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to Agency. It is not the intent of Agency to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against Agency for payment of premiums or other amounts with respect thereto. Consultant agrees to provide immediate notice to Agency of any claim or loss against Consultant arising out of the work performed under this Agreement. Agency assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve Agency. 6.0 RECORDS AND REPORTS. 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. [M 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Document. Originals of all drawings, specifications, reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees and agents in the performance of this Agreement, shall be the property of Agency and shall be delivered to Agency upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by Agency of its full rights of ownership of the documents and materials hereunder. In the event Agency or any person, firm or corporation authorized by Agency reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, Agency hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of Agency, except as required by law or as authorized by Agency. 7.0 ENFORCEMENT OF AGREEMENT. 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so 11 long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, Agency may take such immediate action as Agency deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit Agency's right to terminate this Agreement without cause pursuant to Section 7.7. 7.3 Intentionally Omitted. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. Agency's consent or approval of any act by Consultant requiring Agency's consent or approval shall not be deemed to waive or render unnecessary Agency's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rio hts and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific,performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Termination Prior To Expiration Of Tenn. This section shall govem any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to the termination. 7.8 Termination for Default of Consultant' Suspension Or wort Tor rvonpavrnern of Anency. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, Agency may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and 12 Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that Agency shall use reasonable efforts to mitigate such damages), and Agency may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed Agency as previously stated in Section 7.3. If Agency fails to make the payments as required by Section 2.2, Consultant shall have the right to suspend its performance until the Agency complies with the requirements of Section 2.2. Consultant shall have a reasonable time to return to work after any suspension once the Agency makes the payments required by Section 2.2. If the Agency fails to make payments of undisputed amounts owed pursuant to Section 2.2 for 90 days or more, Consultant shall have the right to terminate this Agreement. if Consultant exercises this right, and the Agency is in breach of its obligations under this Agreement, the Agency shall not have the right to use the name of the consultant, Peter Jacobsen, or Jim Hardy in connection with the Golf Course. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attomeys' fees and costs of suit from the losing party. 8.0 AGENCY OFFICERS AND EMPLOYEES: NONDISCRIMINATION. 8.1 Non -liability of Agency Officers and Employees. No officer or employee of Agency shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by Agency or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant aoainst Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 13 9.1 No ice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated for"Ight (48) hours from the time of mailing if mailed as provided in this section. To Agency: LA QUINTA REDEVELOPMENT AGENCY Attention: Thomas P. Genovese Executive Director 78495 Cane Tampico P.O. Box 1504 La Quints, California 92247-1504 To Consultant: Jacobsen Hardy Golf Course Design Attention: Rex VanHoose Senior Vice President 12777 Jones Road, Suite 150 Houston, Texas 77070 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. 14 IN WITNESS WHEREOF, he parties have executed this Agreement as of the dates stated below. LA QUINTA REDEVELOPMENT AGENCY Date: 0 By:""/N ' I" / l �Qfid� THOMAS P. GENEVOSE Executive Director Agency Secretary APPROVED AS TO FORM: M. KATAMNE JENSION Agency Counsel Date: Jp CONSULTANT: JACOBSEN/HARDY GOLF DESIGN, INC. Name: k. Title:+' ✓ 15 Exhibit A Scope of Services The following tasks shall be performed Jacobsen / Hardy Course Golf Design, Inc. in the preparation of the conceptual, design development, and construction plans and specifications for the 18-hole golf course and during it's construction. 1.0 Conceptual Desion Phase The following scope of work identifies the scope associated with development of a conceptual plan and specifications for the proposed 18-hole golf course. In addition to the scope of work described below, the Designer will be available to respond to all reasonable requests by the Agency and its Project Manager, on behalf of the Agency, for meetings, correspondence and coordination. 1.1 Existing Project Documentation Review The Designer shall review existing project information and analyze it to determine issues, problems, findings and problem resolutions that could be relevant to the project design and construction. 1.2 Initiate Project The Designer will initiate the project by meeting with the Agency's steering committee, the SilverRock Technical Team, staff, the Project Manager, and other design team members to review the conceptual development plan, available information, and to discuss the following: • Project goals, objectives and opportunities as envisioned by the committee; • Project design criteria (e.g., environmentally sensitive, mulit-use concept, etc.); • Project theming concepts including overall character, landscaping, architecture, monumentation, lighting, etc.; • Anticipated mitigation measures and other project site constraints including boundaries, set backs, well sites, Coachella canal, and along with those sensitive biological resource areas; • The mitigation monitoring and reporting program for the SilverRock project; • Information that will be available from the Agency, including base maps, civil engineering plans, etc.; • Requirements of other design team members directly related to the Designer's design product, and; • Project budget and schedule. 1.3 Site Review The Designer shall attend a site review meeting with the Agency and Project Manager and other design team members to visit and analyze the project site. 1.4 Conceptual Golf Course Routing Plan The Designer shall prepare a conceptual golf course routing plan which Includes the layout of the course at 1"=200'. During the preparation of the conceptual plan, the Designer will discuss various design options, along with the advantages and disadvantages with each option. The Designer will also provide up to three (3) revisions to the concept plan as necessary in order to arrive at a plan that is acceptable to the Agency. The routing plan shall depict the following: • Tees, greens, and fairway boundaries • Centerlines • Water Features • Spatial relationships, including clearances and setbacks to other special uses • Bridge locations or other methods of canal crossings • Score Card • Preliminary Grading Concept The Designer shall prepare conceptual grading plans for the gaff course in sufficient detail to delineate the proposed grading concept, including contours and spot elevations. The Civil Engineer will review the conceptual plan and prepare a quantity estimate and a cutiffill map for the project. The conceptual grading plan will include preliminary horizontal and vertical control for the lake(s) and water features(s). The Concept Plan shall also include other features necessary for the Agency to make informed decisions regarding the routing concept. Following acceptance of the Concept Plan by the Agency, the Designer will prepare a color rendering of the plan. 1.5 Conceptual Cost Estimate Following completion of the Concept Plan, the Designer will provide a conceptual cost estimate which outlines the costs by major construction cost categories. Cost estimate shall reflect a "cost of living" increase projected to occur as a result of the golf course construction being scheduled to commence in 2011, and with completion in 2012. 1.6 Design Schedule Designer will develop and submit a design schedule to the Agency, outlining the time requirement for each phase of design. Schedule shall consider the "stand down" time between the end of the conceptual design phase and the start of the design development phase of work. 1.7Specifications The Designer will provide the table of contents for the project specifications pertaining to the construction of the project components under the responsibility of the Designer. The table of contents shall be formatted by Construction Specification Institute (CSI) categories. 1.8Team Interface The Designer will interface with other design team consultants through the Agency and Project Manager by incorporating other consultant's design plan concepts as they relate to the god course plans and specifications. The Designer will be responsible for providing review and comment on other design team consultant plans (e.g., facility architect, landscape architect, lake designer, etc.) for consistency with the golf plans, adherence to project theming and for purposes of value engineering. 1.9Base Sheets During Conceptual Design, the Designer will provide base design information in computer format to the Landscape Architect, as necessary, for their use in creating the overall project base sheets for the design consultant team. This base information will include the conceptual layout of the golf course, indicating those key design elements as described with Section 1.4 and their relationship to the other recreational uses. The Designer will continue to provide base information in computer format throughout Design Development and Construction Documents as necessary for use by the appropriate design team consultants in order for the team to update their plans as necessary. 2.0 Design Development Phase After approval of the Conceptual Design by the Agency, and in accordance with the requirements of the golf course design schedule / schedule of performance, the Designer shall prepare a Design Development Plan package which will refine the design character of the project and identify specific materials to be used. The plans will delineate all site construction elements and will include general grassing concepts. The plans will be developed In typical construction document format, at 1 "=100' on 30" x 42" sheets, and as further defined by the Agency prior to initiation. 3 Due to the time lapse from the end of the conceptual design phase and the start of the design development phase, the plans shall be based on current, updated base information to be provided by the project civil engineer, reflecting the "as built" site conditions. 2.1 Grading The Designer will prepare grading plans for the golf course in sufficient detail to delineate the proposed grading concept, including contours and spot elevations. The project Civil Engineer will review the plan and prepare a quantity estimate and a cutifill map for the project. The grading plan will include horizontal and vertical control for the lake(s) and water feature(s). 2.2 Drainage The Designer will prepare a drainage plan for the golf course which delineates drainage concepts, including structure locations and piping layout. This plan will be provided to the project Civil Engineer for review and analysis to determine structure and pipe sizes, and to make recommendations for additional drainage improvements as necessary. 2.3 Clearing & Staking The Designer will prepare a clearing and staking plan which includes dimensions to the centerline of pertinent key golf course features such as bunkers, tees, greens, turn points, etc. The clearing limits will indicate native features, such as trees, which will be cleared, saved or relocated, along with the proposed locations for relocation. 2.4 2.4 Grassing & Seeding Plan The Designer will prepare a grassing and seeding plan which delineates the limits of grassing and defines the type of seeding mix to be applied within each designated area. Seed mix requirements will include application rates. Areas proposed for re vegetation will be identified. (note: as stated previously, the landscape architect will be responsible for defining the mix requirements for areas of re -vegetation, as well as design of the native landscaping and irrigation requirements.) 2.5 Specifications The Designer will prepare draft construction specifications in CSI "Master Format" for incorporfition into the master specification book. Specifications will be provided both in computer format as well as in hard 12 copy, 8-1/2" x 11" printout. The Designer will coordinate said specifications with other design team consultants through the Agency and the Project Manager to assure consistency throughout the design. 2.8 Design Development Cost Estimate At the completion of the Design Development process, the Designer will update the conceptual cost estimate based upon the Design Development plans and specifications. The Design Development cost estimate will further define the construction items, by providing quantities and unit costs. Cost estimate shall reflect a "cost of living" increase projected to occur as a result of the golf course construction being scheduled to commence in 2011, and with completion in 2012. 2.7 Project Design and Construction Schedule Designer will prepare a preliminary construction schedule for review, and will revise the design schedule accordingly. 3.0 Construction Documents Phase After approval of the Design Development package by the Agency, the Designer shall prepare a Construction Document package for the key project items as identified within section 2.0 in sufficient form and detail to facilitate construction implementation of the proposed improvements. 3.1 Construction Plans Construction Plans and details for all features of the 18 holes of the golf course, to include tees, fairways, roughs, greens, mounds, swales, bunkers, grading for water features, and any other feature as necessary for the construction of the golf components of the project. Designer will have no responsibility to prepare plans, specifications or drawings for the Golf Course clubhouse, half -way house, shaker houses, sanitary facilities, drinking fountains, maintenance facilities, storm drainage system, dams, bridges, walls, cart paths, or any other similar facilities or structures incidental to the Golf Course; provided that Designer will periodically consult with and advise Agency in relation to such facilities and render advice, when requested, as to the conceptual location of such facilities or structures, but Designer will not have any liability to Agency with respect to the design, location or construction of such facilities or structures. 3.2 Greens Plans The Designer will develop greens plans for the golf course which provide sufficient detail and control for construction. 3.3 Construction Specifications The Designer will finalize the construction specfications in CSI "Master Format" for incorporation into the master specification book. Final specifications will be provided both in computer format as well as in hard copy, 8-1f2" x 11" printout which indicates the changes to Design Development Specifications through kalicizinglhighlighting. The Designer will coordinate said final specifications with other design team consultants through the Project Manager to assure consistency throughout the design. 3.4 Construction Document Cost Estimate At the completion of the Construction Document process, the Designer will update the Design Development cost estimate based upon the Construction Document plans and specifications. The Construction Document cost estimate will further refine the quantities and unit costs previously developed. 4.0 Biddin The Designer shall provide assistance during the bidding of the project to include the following: • Attendance at a pre -bid meeting to be held onsite; • Provide assistance to the Project Manager to respond to Contractor - submitted requests for information pertaining directly to the Designer's scope of work in the form of written clarifications or revisions to plans and specifications as appropriate; • Provide assistance for review of Contractor bids; • Assistance in the review of bid packages and selection of the Contractor(s) for the golf course. 5.0 Construction Process Throughout the construction of the facility, which is anticipated to occur over a twelve (12) month period, the Designer will provide construction support, including field and office services to include the following: e Attend pre -construction meetings at the Agency; R • Review materials, submittals, shop drawings, and system drawings for conformance with the standards prescribed within the Construction Documents, and recommend approval or disapproval; • Provide responses to contractor -issued requests for information pertaining directly to the Designer's scope of work by preparing additional drawings or clarification to specifications as necessary; • Provide assistance for review of the Contractor's cost proposals; • Available to provide assistance as needed for evaluation of project change orders; • Schedule periodic site visits to the job site for on -site review of the construction of the project in accordance with the approved golf course plans and specifications; • Participate in the development of project close out/punchlist documentation; review and approval of as-builts and warranty/manual submitted by contractor; verify contractor's comformance to final punchlist. 5.1 Construction Performance and Supervision of Work Designer will not be a party to, nor will it be obligated under, any contracts entered into for the peffonnanoe of the construction work, such obligations being solely the responsibility of the Agency. Designer will not be responsible under this Agreement for supervising the work of any contractor with respect to the construction means, methods, techniques, sequences, or procedures or the safety precautions incident thereto, nor will Designer be responsible for any contractor's malfeasance of misfeasance. Designers efforts will be directed toward advising the Agency, during the course of Golf Course construction, as to how the construction is or is not being performed in conformance with the requirements of the Plan Documents. Designer will keep Agency informed of the progress of the work and will endeavor to alert Agency to defects and deficiencies in the work of the contractor during the course of construction. Designer will make recommendations to the Agency concerning the quality and performance of the Work. Agency will be the final judge of the performance thereunder by the contractor. The Designer will promptly render interpretations on all claims, disputes and other matters in question between the Agency and the contractor relating to the execution or progress of the work under the Designer's plans and specifications necessary for the proper execution or progress of the work. The Designer will make recommendations to the Agency's Construction Manager as to whether the Agency should reject work which does not conform to Designers plans or specifications, and as to whether the 7 Construction Manager should order the work to be corrected to conform to the plans and specifications. 5.2 Applications for Payment Designer will review contractors application for payment, and will make recommendations to the Project Manager. 6.0 Post Construction Within one month prior to the expiration of the Contractor's one year warranty period, the Designer will inspect the project and provide advice on the apparent deficiencies in construction. 7.0 Meetinos. Presentations and Site Visits 7.1 Design Process The design process and bidding process are anticipated to occur over a twelve (12) month period, during which the design team will meet regularly to review design progress, and periodically to discuss value engineering issues as well as the project budget and schedule. The Designer should anticipate up to two (2) meetings per month to be held at the Agency. 7.2 Design Presentations The Designer shall participate in presentations of the project at the following milestones: • Mid -Concept design • Concept design approval • Mid -Design development • Design development approval • Construction document approval At mid -concept design, there may be more than one, but no more than three presentation reviews. Presentations will require preparation of the presentation materials and sufficient methods of communication to clearly articulate the project concept, various features of the project and design emphasis, and other information to ensure consistency with the Agencys goals and objectives for the project. 7.3 Ground Breaking N Both Peter Jacobsen and Jim Hardy will attend the ground breaking event for the project. 7.4 Grand Opening Both Peter Jacobsen and Jim Hardy will attend the Grand Opening event for the golf course. 8.0 Designer's Representation Designer represents and warrants that it is an expert In the design of golf courses and that it will design for Agency a first class facility of a quality similar to other courses designed by Designer, meeting golf industry standards, 9.0 Agency's Responsibilities 9.1 Agencys Provided Information The Agency will furnish to the Designer at Agency's sole expense such materials, surveys, tests, maps, analyses and other similar information requested by the Designer reasonably necessary for the Designer to execute its work under this Agreement. The information required to be provided by the Agency will include, but may not necessarily be limited to, a complete and accurate topographical survey satisfactory to the Designer, indicating any and all existing natural and manmade features such as trees, brush, rock outcroppings, waterways, fences, trails and buildings on the Golf Course sites, given, where pertinent, the grades and lines of streets, pavements and adjoining properties, and describing rights, restrictions, easements, boundaries and contours of the buildings on site; full information as to soil borings and test pits; chemical or other tests; hydrological information relating to the site; and sewer, water, gas and electrical services. The Agency will furnish the requested information with reasonable promptness after Designer has provided Agency with a detailed list of items needed by Designer to perform its work. Designer shall not be responsible or held liable and the Agency hereby agrees to defend, indemnify and hold Designer harmless for any claims, damages, and/or causes of actions arising as a result of the inaccuracy in the information provided by the Agency or its agents under this Section 9.1 or under Sections 9.2, 9.3, 9.4, or 9.5 below. 9.2 Agency's Professional Consultants Agency will be responsible for retaining the services of qualified professional consultants to review the Plan Documents where required, in order to assure compliance with all applicable laws and regulations affecting the site, including, without limitation, environmental, wetlands, land use, zoning and other similar matters. Designer agrees to work with such consultants as required in the design process. Agency will supply Designer with copies of all construction, engineering, zoning, environmental, and other regulations applicable to the Golf Course. Although Designer will take care to prepare the Plan Documents in compliance with such regulations, it will be Agency's responsibility to ensure such compliance. If requested to do so by Agency, Designer will adjust the Plan Documents to conform to such regulations. 9.2.1 Civil Engineer In connection with the foregoing, Agency will employ the services of licensed engineers for the purpose of designing the storm drainage system for the Golf Course, bridges, walls, cart paths, and any other facilities or structures which require the services of an engineer. Such engineers will also be responsible for advising Designer regarding the impact of applicable regulations and engineering practices upon Designer's Plan Documents and for coordinating the storm drainage system with other drainage features of the Goff Course. Agency acknowledges that Designer's recommendations (as set forth In the Plan Documents) for storm water drainage, conceptual cart path locations, soil and materials movement and placement and other similar recommendations must be reviewed and confirmed by qualified licensed engineers which must be retained by Agency at its cost and expense. 9.2.2 Soils Engineer Agency will retain the services of a qualified soils engineer who will provide Designer with an analysis of the site of the Golf Course. Designer will submit a completed set of Plan Documents to the soils engineer retained by Agency for analysis. If the soils engineer makes any suggested modifications to the Plan Documents Designer will make such modifications to the Plan Documents, Designer will make such modifications at no charge to Agency, except for such expenses as are required to be paid by Agency under this Agreement. 9.2.3 Irrigation Designer 10 Agency will retain the services of a qualified Irrigation Designer to prepare and design the irrigation system for the Golf Course. Designer will provide Agency with a list of recommended Irrigation Designers should Agency not have one of its own. Upon completion of the irrigation plans, Agency will provide the Designer with a set of the plans for review and approval, prior to implementation. 9.2.4 Agronomist Agency will retain the services of a qualified Agronomist to assist the project team in the analysis and evaluation of site specific data (i.e. soil tests, water quality tests) and to advise the project team on the specification of grass types, native vegetation, soil amendments, and fertilizer. 9.2.5 Landscape Architect Agency will retain the services of a qualified Landscape Architect to prepare and design the hardscape (Formal Landscape) portions of the project. The Designer will assist the Landscape Architect with the location of the hardscape areas to ensure that they enhance the golf course and do not compromise playability. 9.2.6 Lake Designer Agency will retain the services of a qualified Lake Designer to assist in the design and specification of proposed water feature(s). Note: The senates, information, surveys and reports required by this Section 9.0 will be furnished at Agency's expense, and Designer will be entitled to rely upon the accuracy and completeness thereof. 9.3 Agency Representative The Agency's representative shall be as stated in section 4.2 of the agreement. 9.4 Agency's Prompt Action The Agency will furnish required information and services and render approvals and decisions as expeditiously as necessary for orderly progress of Designer's services and of the work and Designer shall not be responsible for any delays in Designer's performance caused as a result of Agency's delay in providing such information. 11 Exhibit B Schedule of Compensation Payment shall be in accordance with the schedule of valueslpayment schedule attached herewith and submitted in conformance with Section 2.2 of the Agreement. Total compensation and expense reimbursement for all work under this contract shall not exceed $976,800.00 except as specified in Section 1.6 - Additional Services of the Agreement. 1.0 COMPENSATION. 1.1 ' In consideration of the Consultant's services provided herein to Agency, it Is agreed that Agency will pay the following fees to the Consuftent. 1.2 Fee. The fee to be paid by Agency to Consultant for all design services rendered by Consultant during the Preliminary Design Phase, Design Development Phase, Final Design Phase, Construction Phase, and Promotion Services, will be payable on as follows: PROJECT TASKS NON -PHASED FEE PHASED FEE Exemdon I S 80.000.00 Design I Routing I $ 80.000.00 Development Plans I S 120.000.00 Document Plans I S 2:0.t100.00 S .78. " Services I i U0,000A0 S 288:M00- S 40,000.00 $ ' S. GRAND TOTAL S 800 00000 IL W I" 7h. 1: 6% per Year Complete In 2011; 6% per inter in201$ e95 per year In 2012014 nbn8rs).6% Pr 1.3 Expenses in Addition to Fee Provided in Section 1.2 Above. Reimbursable expenses are in addition to the compensation paid to Consultant and include following expenditures, and no others, actually incurred by the Consultant and As employees in the interest of the project, In a total aggregate amount not to exceed one hundred thousand dollars ($100,000.00): a. Expense of transportation in connection with traveling to and from the City of La Quinta and to the Golf Course; Irving expenses in connection with out-of-state travel associated solely with this Project, long distance communications, telex, telefax and overnight mail. b. Expense of reproductions, postage and handling of drawings, specifications and other documents. C. Payment requests including the above items shall be submitted as outlined in Section 2.2 of the Agreement and will require the appropriate supporting documentation, for expenses incurred. Exhibit C Schedule of Performance 114A156104065 845048 03 "114M Exhibit D Special Requirements 1.0 DESIGNER ACCESS. Peter Jacobson, Jim Hardy, Rex Vanhoose and Brian Johnson shall have the right to play golf course on the course they design, free of charge, subject to availability and providing a minimum of three (3) days advance notice. They may be accompanied by up to three guests (not to exceed a foursome). This provision may not be utilized by any one of the four individuals more than four (4) times in any one year. •' .IL r • • Mqaz— ;• • •�• ICd 2.1 It is understood that upon and after the signing of this Agreement, the City, the Agency, and the developers and operators of the SllverRock Resort will be entitled to utilize the names "Peter Jacobsen" and 'Jim Hardy" as well as the name 'JACOBSEN/HARDY GOLF'DESIGN, INC' or "JACOBSEN/HARDY GOLF DESIGN" in referencing the design or the designer of the golf course. This right shall extend to all forms of advertising and informational materials. This right of use is subject to the provisions of Sections 4.1 and 7.8 of the Agreement. This right shall not be subject to approval by Consultant, or by Peter Jacobson or Jim Hardy, inasmuch as such approval if given by the signing of this Agreement. In exercising this right of usage, the Agency, City, developers, and/or operators shall not state or imply that Consultant or its principals are endorsing or are affiliated with any component of the SINerRock Resort other than the golf course which is the subject of this Agreement. a. Consultant recognizes that the Agency chose Consultant based in large part upon Consultant's and Consultant's Principal's reputation and name recognition, and the Agency's and City's intention of promoting the golf course and the SilverRock Resort of which the golf course is a part on the basis of reputation of Consultant and its Principals. In addition to using the names of Consultant and its Principals as specified in Section 2.1 immediately above, Consultant acknowledges that another key benefit that the Agency and the City expect to receive under this Agreement in exchange for the consideration referenced In Exhibit B is the promotional value associated with utilization of the name (beyond that authorized in Section 2.1), likenesses, logos, photographs, videos, and images of Peter Jacobson, Jim Hardy, and Consultant with no additional fees or charges. Consultants and its Principals agree to coordinate with Agency and the City for no additional fee for using 11MIS610.W65 61501E 03 IM107 Jacobsen's and/or Hardy's role as designer in the promotion of the Golf Course. In connection with promotion of the Golf Course, Agency and the City may use the Designer's, Jacobsen's and/or Hardy's name, likeness, and logos, and may use copies or replicas of plans prepared by Designer and delivered to Agency in brochures, sales films and videotapes, press releases, and similar promotional materials and in print and/or electronic media advertisements. Except as provided in Section 2.1 immediately above, Agency and City will not in any way make or permit any use of Designer's, Jacobsen's and/or Hardy"s name, likeness, or logos, or of any likeness of such plans prepared by Designer, without the express written approval of Designer prior to use. Once promotional material has been approved for use by Designer, Agency, the City, and may continue such use without further approval from Designer, provided the promotional material is used in the same manner as approved by Designer. As used in this Agreement, °Designer's name" is "Jacobsen/Hardy GoN Design". Such use must be limited to Designer's, Jacobsen's and/or Hardy's role as designer of the Goff Course and will not extend beyond the Golf Course to include the promotion of any other development or facility in the same complex as the Golf Course, except for references to the fact that Designer, Jacobsen and/or Hardy designed the Goff Course. Agency will submit a copy of any such proposed use to Designer for approval prior to use, and Designer will advise Agency of its approval or disapproval within ten (10) days of its receipt of such proposed use. If Designer fails to respond within the 10 day period, the use of the Rem(s) shall be deemed approved. Approval of photographs will require the submission of actual production photography. Agency will be responsible for enforcing compliance with the provisions of this paragraph by all other parties involved with the Golf Course. Agency will furnish Designer with copies of all photographs taken and film and videotape footage shot by or on behaff of Agency which involve Jacobsen and/or Hardy, and Designer will have the right to use, free of charge, ail or any part of such materials and any reproductions thereof. 2.3 Reauired On -Site Aooearances. There will be a minimum of two (2) Jacobsen appearances on site, in conjunction with the design and promotion of the Golf Course (ground breaking and grand opening); and a minimum of two (2) Hardy appearances on site (ground breaking and grand opening), in conjunction with the design, construction, and promotion of the golf course, as follows: N50" 03 IM14M 2 b. Jacobsen and Hardy's presence and participation at ground breaking and the grand opening of the Goff Course including an 18- hole round of golf, if desired by the Agency, and involvement in other reasonable opening day activities„ Unless otherwise agreed upon, the grand opening festivities, for which Jacobsen's and Hardy's presence is required, must take place within the first six (6) months of the course opening for play. C. Reasonable additional Jacobsen and/or Hardy participation in the promotion of the Goff Course as may be agreed upon by the parties. 119N13610-MS uwu 63 aw14V 1 e yi a r EXHIBIT F 0 13USINESSOWNERS P5 04 48 OB 03 Its THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION This endorsemenl modifies insurance provided under the following, PREMIER BUSINESSOWNERS LIABILITY COVERAGE FORM SCHEDULE Name Of Parson Or Organization: LENNAR CORPORATION INSURANCE COMPLIANCE The follow ng Is added to Section II. WHO IS AN a. "Bodily kqury' or ^property damage that arises INSURED, out of, in whole of in part, or Is a resndt01, In the active ne009oaee d the Any person or organization shown in the Schedule of insured, but whole or In part, additional insured shown in the Scheduia of this ® this endorsement is also an only with respect to liability arising out of your ongoing Operations performed for such Additional Insured Or endorsement b. "Personal and advertising Injury final arises out arising out of promises owned by or rented to you, of any independent "personal and 1Wvsbslrg by the add8bnal subject to live following additional exclusion: Injury" offense committed insured shown in the Schedule or this This insurance, indudbg any duty we have to defend endnrsemenl 'suits", does nut apply to All terms and conditions of this poft apply unless modified by this endorsement Includes copyrighted material of Insurance Services Office, Inc., with its parmisato^ Copyright, Insurance Services Office., Inc., 1997 Page s of t PB 04 48 08 03 - _ is 0/781 ACP ePOC771115450 AGENT COPY