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2019 CVWD, SRR Phase I, & LQ Rec Spl DW, Sanitation & Irrigation System Mod. Installation AgrmtNo Recording Fees Required Per Government Code Section 27383 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: COACHELLA VALLEY WATER DISTRICT Post Office Box 1058 Coachella, California 92236 2019--0359003 09/13/2019 10:32 AM Fee: $ 0.00 Page 1 of 72 Recorded in Official Records County of Riverside Peter Rldana Assessor -County Clerk -Recorder (Space above this line is for Recorder's Use) APN: 776-150-028; 777-490-038, 777-490-040, 777-490-037, 777-490-041, 777-490- 036, 777-490-042, 777-490-043; 777-490-044, 777-490-045, 777-490-046, 777-490- 053, 777-490-054, 777-490-055, 777-060-076, 777-060-077, 777-060-078, 777-060- 075 FILE: 0655. TRA: 020-021 0421.2 0721.2 0322.12 SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AND IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT THIS SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AND IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT ("Agreement") is made on this 1,2 to day of SCP � , 2019 ("Effective Date") by and between COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California ("CVWD"), the City of La Quinta, a California municipal corporation and charter city ("City"), and SILVERROCK PHASE I, LLC, a Delaware limited liability company ("Developer"). CVWD, City and Developer are collectively referred to herein as "Parties" and singularly as "Party." RFr.1TA1 S A. CVWD and the former La Quinta Redevelopment Agency, a public body, corporate and politic (the "Agency"), previously entered into a Domestic Water and Sanitation System Installation and Irrigation Service Agreement," dated June 11, 2005, recorded in the Official Records of the County of Riverside as Document No. 2005- 0852063 ("Previous Agreement"). Document No. 060705-3-009 1 060706-4-xxx 060708-2-xxx 060708--4-xxx B. The Previous Agreement relates to the obligations of the former Agency and CVWD with respect to the provision of certain water and sanitation services to that certain real property located in the City of La Quinta, California described in Exhibit "A" and attached hereto and by this reference incorporated herein (the "SilverRock Resort Area"). The SilverRock Resort Area consists of approximately five hundred and twenty- five (525) acres. The City represents that pursuant to redevelopment dissolution law (Health & Saf. Code § 34170 of seq.) and relevant approvals by the La Quinta Oversight Board and California Department of Finance required thereunder, all rights, title, and interest to the SilverRock Resort Area was transferred to the City. Pursuant to the PSDA (defined in Recital E), the SilverRock Resort Area has been divided by Parcel Map No. 37207 recorded in the official Riverside County Records, attached hereto as Exhibit "B" and by this reference incorporated herein (the "Parcel Map"), and will be further subdivided as the property is developed pursuant to the PSDA. The City represents that as of the date of this Agreement, the City is the owner of those parcels that comprised the SilverRock Resort Area except those parcels from the Parcel Map that have been conveyed to the Developer by recorded grant deed pursuant to the PSDA prior to the date of recording of this Agreement (being Parcels 1, 3 through and including 12 and Parcels D, E, F and G). For purposes of this Agreement, those parcels from the Parcel Map of the SilverRock Resort Area owned by the City shall be referred to herein as the "City Property." C. City has succeeded to the rights and obligations of the Agency under the Previous Agreement- D . This Agreement is intended to supersede the Previous Agreement. E. Pursuant to that certain Purchase, Sale, and Development Agreement by and between City and Developer, dated November 19, 2014, and amended on or about October 29, 2015, by that certain Amendment No. 1 to Purchase, Sale, and Development Agreement, and on or about April 18, 2017, by that certain Amendment No. 2 to Purchase, Sale, and Development Agreement, and on November 28, 2018, by that certain Amendment No. 3 to Purchase, Sale, and Development Agreement (as amended, the "PSDA"), City intends to self parcels of the City Property, within the SilverRock Resort Area, to ❑eveioper in phases, and the Parties intend for the terms and conditions of this Agreement to bind, and run with, the land as to each phase, commencing when the Developer takes fee title to the subject parcels of the SilverRock Resort Area. The parcels of the SilverRock Resort Area acquired by Developer from time to time are, as and when acquired by Developer, referred to herein as the "Developer Property" F. City intends to contribute bond proceeds in an amount not to exceed the amount identified and appropriated in the City's Fiscal Year 2018/19 Capital Improvement Project budget for the construction of SilverRock Way and domestic water and sanitation facilities within SilverRock Way, as more specifically described in Section14 of this Agreement. G. Developer intends to develop or cause to be developed two hotels, a golf clubhouse and approximately eight hundred and fifty (850) hotel, residential rental, and K residential ownership dwelling units ("Units") on the Developer Property, as more particularly described in the PSDA ("Project"). H. The Project will require a domestic water distribution system and sanitation system and domestic water and sanitation service to each of the Units. L For purposes of this Agreement, such domestic water distribution system will consist of the improvements described in Exhibit "D" attached hereto and incorporated herein and any appurtenances reasonably related thereto such as and may include, without limitation pipelines, valves, service connections, booster station and wells ("Domestic Water System"). J. For purposes of this Agreement, such sanitation system will consist of the improvements described in Exhibit "E" attached hereto and incorporated herein and any appurtenances reasonably related thereto such as and may include, without limitation, lift stations, gravity sewer pipelines, force main and other improvements ("Sanitation System"). K. Developer desires for CVWD to provide domestic water service and sanitation service to the Project and is willing to transfer to CVWD the Domestic Water System and Sanitation System after the construction thereof and CVWD is willing to accept such transfer and to provide domestic water service and sanitation service to the Project on the terms and conditions set forth herein. L. The Project also has a fire flow requirement of two thousand two hundred and fifty (2,250) gallons per minute for a two (2) hour duration which exceeds the flow available from CVWD's existing domestic water system. M. The irrigation system serving the Project ("Irrigation System") is comprised of the Coachella Branch of the All -American Canal ("Coachella Canal"), Flood Protection Dikes & Channels ("Protective Works") and irrigation distribution piping system ("Irrigation Distribution System") which supply Colorado River water to irrigation customers. The United States Bureau of Reclamation ("USBR") owns the Coachella Canal, Protective Works, and Irrigation Distribution System. CVWD operates and maintains the Coachella Canal, Protective Works, and Irrigation Distribution System. N. Portions of the Irrigation System that will be impacted by the Project lie within the SilverRock Resort Area. Therefore, the Parties desire to set forth a process and timeframes by which the facilities would be abandoned and/or relocated within certain existing portions of the Irrigation System in accordance with the terms and conditions set forth herein. The term "relocate" shall mean the removal of the applicable portions of the Irrigation System and the construction of new portions of the same within new easements in fee owned land. The construction and acceptance of the new portions of the Irrigation System shall take place before the removal and abandonment of the applicable existing portions of the Irrigation System. Such new portions of the Irrigation System and abandonment and removal of the applicable existing portions of 9J the Irrigation System are listed in Exhibit "F" and referred to herein as the "Irrigation System Modifications)". O. The Parties desire by this Agreement to establish the terms and conditions under which Developer shall construct and transfer to CVWD the Domestic Water System and the Sanitation System. NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS: AGREEMENT 1. Developer General Responsibilities. In accordance with the schedule and sequence requirements set forth herein, including, but not limited to, Appendix 'A," attached hereto and incorporated herein ("Schedule"), Developer shall fulfill all of the following obligations, at its sole expense, to CVWD's sole satisfaction in order to obtain domestic water service and sanitation service from CVWD. (a) Developer will comply with CVWD's rules, regulations, ordinances and procedures regarding the design, installation and construction of the facilities contemplated herein, including but not limited to, CVWD's Development Design Manual, "Standard Specifications for the Construction of Domestic Water Systems", "Standard Specifications for the Constriction of Sanitation Systems" and "Standard Specifications for the Construction of Irrigation Systems," and design standards, as may be amended by CVWD and the CVWD board of directors ("Board") from time to time (collectively, "Rules"). The Rules are incorporated herein by this reference. (b) (i) Developer shall, at Developer's sole expense, be responsible for compliance with the laws of the State of California and the United States, including, but not limited to, applicable state and federal environmental laws, such as the California Environmental Quality Act ("CEQA"), the National Environmental Policy Act ("NEPA"), California Public Resources Code section 21000 et sec{., and the Federal Endangered Species Act and the California Endangered Species Act, (collectively "Environmental Laws") applicable to the design and construction of the Domestic Water System and Sanitation System. Developer shall be solely responsible for compliance with any conditions and mitigation measures required as a part of the compliance with the Environmental Laws. Developer shall ensure that a public agency of the State of California acceptable to CVWD acts as lead agency for the purposes of complying with CEQA, or CVWD may elect, but shall have no obligation, to act as lead agency for the purposes of this Agreement. As part of its obligation to comply with CEQA and applicable Environmental Laws, Developer shall prepare or cause to be prepared, at its sole cost, all instruments, documents, reports and other like or kind writings required to be prepared and/or filed by CEQA and applicable Environmental Laws. 4 (ii) Developer shall, upon request by and at no cost to CVWD, provide CVWD with such information as Developer possesses or has available to it from any consultants, engineers, contractors or other persons engaged by or under the control of Developer relating to the environmental assessment for the Domestic Water System, Sanitation System and Irrigation System Modification. Notwithstanding the preceding or anything to the contrary herein, nothing set forth herein shall be deemed to require CVWD to participate in any legal action related to the Domestic Water System, Sanitation System and Irrigation System Modification. (c) (1) Storm, surface, ground, nuisance, or other waters may be encountered at various times during construction of the improvements. Developer hereby acknowledges that it has investigated the risk arising from such waters and assumes any and all risks and liabilities arising therefrom. (ii) Developer shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the construction of the improvements, including, without limitation, CVWD Ordinance No. 1234.2; Riverside County Ordinance 458; all applicable provisions of the local ordinances regulating discharges of storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.); the California Porter-Coiogne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. These include, but are not limited to California Regional Water Quality Control Board, Colorado Region, Order No. R7- 2013-0011 (NPDES Permit No. CAS617002) and State Water Resources Control Board ("State Board") Order No. 2010-0014-DWQ, Order No. 2009-0009-DWQ, and Order No. 2012-0006-DWQ ("Construction General Permit"), and any amendment or renewal thereof. (iii) Developer shall comply with the lawful requirements of CVWD, and any municipality, drainage district, or other local agency with jurisdiction over the location where the improvements are to be conducted, regarding discharges of stormwater to separate storm drain systems or watercourses. (iv) Developer shall be required to comply with all aspects of the Construction General Permit, including any amendment or renewal thereof, for any project that involves construction on or disturbance of one acre or more of land or which are part of a larger common area of development or sale that disturbs one acre or more. (v) Failure to comply with laws, regulations, and ordinances listed in this Section is a violation of federal and state law. Notwithstanding any other indemnity contained in this Agreement, Developer agrees to indemnify and hold harmless CVWD and City, and their respective 5 officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, losses or liabilities of any kind or nature which CVWD or City, and their respective officials, officers, agents, employees and authorized volunteers may sustain or incur for Developer's noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with Developer's work with respect to the Domestic Water System, Sanitation System and Irrigation System Modification (collectively, the "Developer's Work"), except for liability resulting from the sole negligence or willful misconduct of CVWD or City, or their respective officials, officers, agents, employees or authorized volunteers. (vi) If Developer fails to fulfill its indemnity obligations under clause (v) above, (i) CVWD and City separately reserve the right to defend any enforcement action or civil action brought against CVWD and/or City for Developer's failure to comply with any applicable water quality law, regulation, or policy with respect to Developer's Work, and (ii) Developer hereby agrees to be bound by, and to reimburse CVWD and/or City, respectively, for the costs associated with, any settlement reached between CVWD and/or City, and any relevant enforcement entity. (d) Developer shall execute and deliver CVWD's Standard Domestic Water Installation Agreement or Standard Domestic Water and Sanitation System Installation Agreement ("Standard Installation Agreement") for each tract of land within the Project in such form and content as set forth in Exhibit "C" attached hereto and by this reference incorporated herein, as amended by CVWD from time to time. In the event of any inconsistency or ambiguity between the terms of the Standard Installation Agreement and this Agreement, the terms of this Agreement shall control. (e) Developer shall employ, at its sole expense, a qualified professional engineering firm ("Developer's Engineer") to plan, design and prepare detailed construction plans and specifications ("Plans") for the Domestic Water System, Sanitation System and Irrigation System Modification in full and complete accordance with CVWD's Rules, including but not limited to, the design criteria and standards, such as CVWD's "Development Design Manual." Developer's Engineer shall complete the design and Plans and the same shall be submitted to CVWD as set forth below. All such planning and design work and Plans performed and prepared by Developer's Engineer shall be subject to review and written approval by CVWD prior to presentation thereof to contractors for bidding purposes. CVWD shall approve or disapprove the Plans within a reasonable amount of time after submittal to CVWD. In the event CVWD disapproves the Plans, Developer shall modify the Plans in accordance with the reasons given for disapproval and shall resubmit the revised Plans to CVWD for approval or disapproval. The foregoing procedure shall be continued until the Plans have been approved by CVWD. Developer hereby acknowledges and understands that CVWD may approve or disapprove Developer's planning and design work and Plans, in its sole and absolute discretion. Developer represents that the 0 Plans will conform to all applicable federal, state and local governmental rules, ordinances and regulations and all applicable Environmental Laws. In submitting the Plans to CVWD for review, Developer represents that, to Developer's knowledge, after reasonable inquiry, that the Plans are complete, accurate, workable and are in compliance with all governmental requirements with respect thereto. (f) After CVWD's approval of the Plans, Developer shall complete and submit an application to the USSR to (A) abandon the applicable portions of the Irrigation System and (B) construct and install the replacement portions of the Irrigation System and (C) apply for license with USSR for the Box Culvert Crossing at the Coachella Canal. The submittal of the application to the USSR by Developer and the process by which Developer satisfies such requirements of the USBR will be coordinated through CVWD. Developer hereby agrees to satisfy the requirements of the USBR, at Developer's sole expense. In the event a requirement of the USBR conflicts with the terms of this Agreement with respect to the abandonment or construction at the applicable portion of the Irrigation System, the requirements of the USBR shall prevail. Notwithstanding anything contained in this Agreement, Developer shall first complete the construction of the replacement portion of the Irrigation System prior to removing or causing the abandonment of the applicable portion of the Irrigation System. Nothing herein shall relieve Developer for complying with any requirements of the USBR or CVWD for receipt of encroachment permits to remove or cause the abandonment of the applicable portion of the Irrigation System. (g) CVWD shall have the right, but not the obligation, to conduct a water audit of the Project once every five (5) years beginning with the Effective Date of this Agreement. CVWD shall give Developer thirty (30) days prior written notice of each audit and an invitation to participate. All costs incurred by CVWD in connection with the audit, including labor costs, shall be at Developer's expense. CVWD shall invoice Developer for the costs incurred herein. Developer shall make payment to CVWD within thirty (30) days of receipt of CVWD's invoice. (h) As a condition of continued irrigation water service, the recommendations, if any, resulting from the water audit must be implemented unless CVWD's General Manager, in his/her discretion, determines otherwise. Developer hereby agrees to undertake the recommendations set forth in the water audit within thirty (30) days of receipt of the audit and shall diligently and continuously complete the recommendations unless Developer within thirty (30) days of the receipt of the recommendations, requests, in writing, to be relieved from the obligation to undertake one or more of the recommendations set forth in the water audit. Within a reasonable time after receipt of the notice from Developer, the General Manager of CVWD will notify Developer, in writing, if Developer shall be relieved from the obligations to undertake the recommendations. In the event CVWD's General Manager determines that one or more of the recommendations must be undertaken, Developer shall begin the recommendations within thirty (30) days of receipt of CVWD's notice and complete the recommendations within the time frame set in the notice from CVWD's General Manager. 7 (i) With respect to the use of irrigation water, Developer shall provide groundwater protection from pollutants, including but not limited to, nitrates and pesticides leaching into the groundwater, by employing the use of Best Management Practices ("BMPs"). The University of California Turf Grass Research BMPs are provided in Exhibit "G" attached hereto as a reference. CVWD reserves the right to modify or substitute the BMP standard with sixty (60) days prior written notice to Developer. All costs of the evaluation shall be at the expense of Developer and shall be billed and paid pursuant to the procedure set forth in Section 1(g). 0) Prior to any service hereunder, Developer hereby consents and agrees to execute CVWD's standard form Water Production Metering Agreement (or such successor agreement) ("Metering Agreement") for any and all wells on the Developer Property producing more than twenty-five (25) acre feet of water in any calendar year. The Metering Agreement shall provide, in part, that (i) such wells must be equipped with a water measuring device ("Measuring Device") more particularly described therein; (ii) on a monthly basis the Developer shall report well production directly or grant CVWD employees, agents and representatives an irrevocable right to come onto the Developer Property to read and maintain the Measuring Device, and (iii) Developer shall be required to pay a monthly replenishment assessment. (k) The above obligations in Sections 1.(g) through 0) shall be assigned to and accepted and assumed by the property owners association or successor owner pursuant to the terms set forth in Section 15(t) below. (1) Prior to any service hereunder, the Developer shall provide CVWD gate codes for access to the Developer Property through any electrically or electronically operated security gate system installed by Developer. If the Developer cannot provide CVWD with gate codes then CVWD shall have the right to install radio controls to operate said gate(s) at Developer's expense. Developer hereby grants to CVWD an irrevocable non-exclusive easement for CVVVD in and over the Developer Property for the purpose of installation, reinstallation, repair, replacement, operation and maintenance of such radio controls. Developer shall pay CVWD the sum of Four Thousand Five Hundred Dollars ($4,500.00) as the cost of said radio controls prior to acceptance of the Irrigation System Modification and drainage system by CVWD. CVWD will operate, maintain, and replace said radio controls at CVWD expense. 2. Developer's Responsibilities for Domestic Water Service Developer shall do the following for domestic water service at such time or times described herein or on Appendix "A" attached hereto and by this reference incorporated herein: (a) The Previous Agreement required the City to provide seven (7) well sites. The City provided two (2) off -site well sites and paid an in lieu fee for the remaining five (5) well sites per the "Domestic Water and Sanitation System Installation and Irrigation Service Agreement — First Amendment," dated June 20, P 2011. Therefore, the City has met its obligations for well sites for this Project and Developer does not have any obligation to provide well sites. (b) Developer shall, prior to any design and construction, provide at Developer's sole expense, CVWD with a grant deed conveying fee title to one (1) Pressure Reducing Valve Station (PRV) Site, minimum of one hundred feet (100') long by forty feet (40') wide, and one (1) Booster Station/Pressure Reducing Valve Station (BST/PRV) Site, minimum one hundred feet (100') long by one hundred feet (100') wide, at a location determined in the sole and absolute discretion of CVWD, free and clear of any liens and encumbrances, in compliance with the California Subdivision Map Act. The BST/PRV Site and PRV Site shall connect CVWD's Lower La Quinta Pressure Zone (235-foot zone) to CVWD's Lake Cahuilla Pressure Zone (150-foot zone). The BST/PRV Site and PRV Site shall be referred to as "Sites." Provide, at Developer's sole expense, separate grading and landscaping plans ("Grading Plan") for the Sites. The provisions of Section 1(e) shall apply to the review and approval of the Grading Plan. After the Grading Plan has been approved by CVWD, Developer shall grade the Sites in strict compliance with the approved plans. The provisions herein relating to construction and installation of the improvements shall apply to all grading of the Sites. The Grading Plan shall include, but not be limited for the following site improvements which the Developer shall provide at Developer's sole expense: (i) Electrical power of a voltage and wattage as shall be acceptable to CVVVD, in its sole and absolute discretion, for operation of the Sites. (ii) Telecommunication service necessary for operational monitoring and control of the Sites. (iii) Design and construct a structure, at Developer's option, to house the BST/PRV and PRV Facilities. The provisions herein relating to the design, construction and installation of the improvements shall apply to the design and construction of the structure. The structure shall also meet CVWD and local architectural standards and blend in with surrounding structures. (c) Developer shall do the following for the design and construction of certain facilities: 0) Not Used (Wellsites Satisfied) (ii) Design and construct one (1) Booster Station/Pressure Reducing Valve Station, including all necessary appurtenances capable of transferring 2,000 gallons per minute between the Lower La Quinta and Lake Cahuilla Pressure Zones and one (1) Pressure Reducing Valve Station thereto, as determined by CVWD, in its sole 9 and absolute discretion (collectively, "BST/PRV Facility") on the BST/PRV Site. The provisions herein relating to the design, construction and installation of the improvements shall apply to the design, construction and installation of the BST/PRV Facility. (iii) Design and construct one (1) Pressure Reducing Valve Station, including all necessary appurtenances, capable of transferring a minimum of 1,000 gallons per minute from the Lower La Quinta Pressure Zone to the Lake Cahuilla Pressure Zone thereto, as determined by CVWD, in its sole and absolute discretion ("PRV Facility") on the PRV Site. The provisions herein relating to the design, construction and installation of the improvements shall apply to the design, construction and installation of the PRV Facility. (iv) Subject to Section 7(b), design and construct, at Developer's sole expense, to CVWD specifications, the pipelines or facilities shown on Exhibit "D" attached hereto and by this reference incorporated herein before water service is initiated by CVWD to the Units within the Project in accordance with the Schedule on Appendix A. The pipelines shall be of the type and material as shall be acceptable to CVVVD in CVWD's sole and absolute discretion. The provisions herein relating to the design, construction and installation of the improvements shall apply to the design, construction and installation of the pipelines described herein. (v) Design and construct, at Developer's sole expense, to CVWD specifications, the internal domestic water pipelines to meet the Project's fire flow and domestic water requirements in accordance with a domestic water system model to be approved by CVWD, in CVWD's sole and absolute discretion. The internal domestic water pipelines shall be in service before domestic water is provided to the Project. The provisions herein relating to the design, construction and installation of the improvements shall apply to the design, construction and installation of the internal domestic water pipelines. (vi) Section 2(c)(ii) of this Agreement provides that Developer is required to install an eighteen -inch (18") pipeline described in the third bullet point of Exhibit "D" ("Pipeline") and a 2,000 gallon per minute Booster/Pressure Reducing Valve Station (BST/PRV) as more particularly described therein. The minimum pipeline size required by Developer for that segment of the transmission pipeline system, is an eight -inch (8") pipeline ("Required Pipeline"). The minimum flow for the BST/PRV required by Developer is 1,000 gallons per minute (the "Required BST/PRV"). CVWD desires that the Required Pipeline and Required BST/PRV be oversized (18" pipeline and 21000 gallon per minute vs. 8" pipeline and 1,000 gallons per minute) (collectively, "Oversized Water Facilities") in order to provide additional water capacity for future use. Developer 10 shall construct and install the Oversized Water Facilities and CVWD shall be responsible for payment of its share of the Oversized Water Facilities as more particularly described in Section 7(b). (vii) For purposes of this Agreement, the Sites, BSTIPRV and PRV Facility shall be referred to herein as "the Required Facilities." (d) Install, at Developer's sole expense, a pressure regulating valve in each Unit, if required by CVWD or in accordance with applicable codes. (e) Complete in the required sequence, in accordance with the schedule in Appendix A, the pipelines, the Sites, the BST/PRV Facility and PRV Facility described herein before domestic water service is initiated by CVWD to the Units. (f) Immediately upon completion of the above described facilities to be constructed on the Sites, Developer shall field review with a CVWD representative the remaining visual and aesthetic impacts and agree to mitigate with, but not limited to, landscaping, wall, paint and/or decorative rock to CVWD's satisfaction. Designs shall be reviewed and approved by CVWD prior to construction. (g) Prior to the first request for meter(s) in a particular planning area (i.e., each construction phase with approved domestic water construction plans for such phase), Developer shall pay to CVWD all Water System Backup Facilities Charges ("WSBFC"), Supplemental Water Supply Charges and other charges related to the provision of domestic water service to such phase or planning area. 3. Developer's Responsibilities for Sanitation Service Developer shall do the following for sanitation service at such time or times described herein or on Appendix "A" attached hereto and by this reference incorporated herein: (a) Not Used (Lift Station Site). (b) Not Used (Grading Plans for Lift Station Site). (c) Developer shall do the following for the design and construction of certain facilities: (i) Not used (Force Main). (ii) Subject to Section 7(b), design and construct, at Developer's sole expense, to CVWD specifications, the gravity sewer pipelines ("Gravity Sewer Pipelines") or facilities shown on Exhibit "E" attached hereto and by this reference incorporated herein, before sanitation service is initiated by CVWD to the Units within the Project in accordance with the Schedule on Appendix A. The provisions herein relating to the design, construction and installation of the 11 improvements shall apply to the design, construction and installation of the pipelines described herein. (iii) Design and construct, at Developer's sole expense, to CVWD specifications, the internal sanitary sewer system to meet the Project's discharge requirements. The internal sanitary sewer system shall be in service before sanitation service is provided to the Project. The provisions herein relating to the design, construction and installation of the improvements shall apply to the design, construction and installation of the internal sanitation system. (iv) For purposes of this Agreement, Gravity Sewer Pipelines shall be referred to herein as "the Required Facilities." (d) Developer shall pay to CVWD all Sanitation Capacity Charges ("SCC") and other charges related to the provision of sanitation service to the subject phase or planning area (i.e. each construction phase with approved sanitary sewer construction plans for such phase) prior to the first request for domestic water meters in such phase or planning area. 4. Developer's Irrigation Svstem Modification Responsibilities The construction of the Irrigation System Modification is addressed in Section 13. As further provided in Section 13, CVWD (at the expense of Developer and the City as provided in Sections 13 and 14) shall complete in the required sequence, in accordance with the schedule in Appendix A, the Pipeline installation and abandonments described herein (i.e., those set forth in first through fourth bullet of Exhibit F and items 12, 13, 14 and 17 of Appendix A) before irrigation service is initiated by CVWD to the Units. In addition, Developer shall d❑ the following for irrigation service: (a) Not Used (Sites). (b) Not Used (Grading Plans for Sites). (c) Relative to CVWD, Developer shall be responsible for the costs and reimbursements described in Section 13 and, relative to the City, Developer shall be responsible for the reimbursement described in Section 14(a). (d) Upon completion and acceptance of the irrigation facilities as hereafter described, the Developer Property shall be placed on the irrigation system roll. (e) Developer acknowledges and agrees that the irrigation water service provided by CVWD is interruptible in nature and the Developer will maintain an alternate irrigation water supply in "ready" status. If for any reason CVWD does not or is unable to deliver irrigation water, Developer hereby waives and releases 12 CVWD from any claim, loss, damage or action, that it may have against CVWD for failure to deliver irrigation water, including, but not limited to, damages, loss of business, loss of profit or inconvenience, and Developer shall hold harmless from any and all legal liabilities or economic losses which result in the failure to deliver irrigation water. (f) In the event of a shortage of available irrigation water, except as otherwise required by law, regulation, court order or such other uses as determined by CVVVD (in its sole and absolute discretion), the following irrigation water uses shall have priority to use irrigation water over the Project: (i) Agricultural uses in existence as of the date of this Agreement; (ii) Agricultural uses converted to non-agricultural uses prior to the date of this Agreement; and (iii) Non-agricultural uses in existence prior to the date of this Agreement. During such periods of shortage, irrigation water for said Project may be supplied by Developer from non-CVWD-owned wells. (g) Developer shall pay to CVVVD all other charges related to the provision of irrigation service to the Developer Property. 5, Developer Pre -Plan Check Requirements (a) Prior to submitting the Plans to CVVVD for initial plan check, Developer shall do the following: (i) Concurrently with the execution of this Agreement by Developer, Developer shall deliver to CVWD a current preliminary title report (TTR") affecting the Developer Property dated within thirty (30) days of the delivery thereof to CVWD. CVWD shall notify Developer of any title exceptions within the PTR which must be subordinated to the lien of this Agreement. Notwithstanding the foregoing, any monetary liens or liens of any covenants, conditions and restrictions must be subordinated to the lien of this Agreement. Developer shall have a period of thirty (30) days after the receipt of written notice to cause the subordination of the items fisted in CVWD's notice, as well as any monetary liens or liens of any covenants, conditions and restrictions. (ii) Pay CVVVD's plan check deposit, and any other deposits required as part of the Standard Installation Agreement, and any 13 R VA amounts necessary to reimburse CVWD for costs incurred in connection with review of the Plans. (iii) Furnish to CVWD the executed applicable CVWD standard agreements. (iv) Complete and deliver to CVWD the original Bill of Sale on a form supplied by CV\ND and any other forms as required by the Standard installation Agreement. (b) Prior to submitting Plans to CVWD for the second plan check, Developer shall do the following: (i) Developer, at its sole expense, shall furnish to CVWD recorded grant deeds and/or recorded easement document(s) and/or recorded easements proposed to be dedicated in tract maps and/or public rights -of -way, if applicable, satisfactory to CVWD (in its sole and absolute discretion) as to content, form, location, and width and which assure CVWD's unequivocal right to own, operate, maintain, replace, repair, enlarge, reconstruct, remove and improve the improvements. Developer shall ensure that all deeds of trust, mortgages and covenants, conditions and restrictions are re - conveyed as to fee ownership and subordinated to the easement(s) set forth herein. Developer shall also ensure that the grant deeds and easements comply with the requirements of CVWD's rules and regulations. Developer Plan Approval/Release Requirements Prior to the approval/release of the Plans by CVWD for the improvements, Developer shall furnish to CVWD the following: (a) The approved Plans in electronic CAD format. (b) This signed, notarized Agreement. Developer Pre -Construction Requirements Following receipt of CVWD's approval of the design and Plans for the improvements and prior to the construction thereof, Developer shall do the following: (a) Furnish to CVWD, prior to the pre -construction meeting set forth in subsection (c) below, a deposit in the amount of Five Thousand Dollars ($5,000.00) or five percent (5%) of the amount of the estimated construction costs of the improvements and facilities to be constructed hereunder in the particular phase, whichever is greater, of immediately available funds, as security for the purpose of guaranteeing the completion of construction of the improvements and facilities to be constructed hereunder. The term "immediately M available funds" shall mean cash, wire transfer or a cashier's check drawn on good and sufficient funds on a federally insured bank and made payable to the order of CVWD. CVWD shall not be required to keep the funds separate from its general funds. In the event CVWD invests the deposit, CVWD shall pay the minimum interest rate set forth in California Government Code Section 53079(b). CVWD shall have the absolute right five (5) business days after the mailing of a written notification to Developer, by certified mail at Developer's address herein, to draw all or a portion of the funds represented by the deposit as may be necessary to complete construction in the subject phase, including administrative and all other project costs or to secure compliance with this Agreement, including the construction of the improvements and facilities to be constructed hereunder; immediately available funds shall be delivered on a case -by -case basis, for each contract based on the construction required as outlined herein. The deposit plus interest described above applicable to the particular phase, less draws, if any, will be returned to Developer, on a case -by -case basis, upon CVWD declaring that the improvements and facilities to be constructed hereunder are final and complete (including, but not limited to, the paving of the road/street/right-of-way above such facilities) in CVWD's sole and absolute discretion pursuant to CVWD's standard acceptance procedures and Section g. Developer hereby understands, acknowledges and agrees that the determination that the improvements and facilities to be constructed hereunder are complete and final may come after CVWD has accepted such facilities. (b) (i) Employ, with written concurrence of CVWD, a qualified contractor or contractors (collectively, "Developer's Contractor") properly licensed by the State of California to construct and complete the improvements. (ii) For purposes of this Agreement, the Oversized Water Facilities shall be referred to collectively as "Oversized Facilities." (iii) Notwithstanding subsection (b)(i) above, Developer shall obtain a minimum of three (3) bids from qualified and properly licensed, insured and bonded contractors reasonably approved by CVWD for the Oversized Facilities. Developer shall obtain separate bids for (A) the Required Pipelines and Required BSTIPRV and (B) the Oversized Facilities. The provisions of this subsection shall apply to all of the Oversized Facilities or the discrete components thereof_ Subject to subsection (b)(iv) below, the construction of the Oversized Facilities ("Oversized Facilities Work") shall be awarded to the lowest responsible bidder for the Oversized Facilities. In addition to the foregoing, Developer shall be required to post payment and performance bonds, as required by CVWD, for the Oversized Facilities. If an event(s) or condition(s) (or both) occurs under either the payment or performance bonds (or both) that would authorize CVWD to require performance by the surety under either the payment or performance bonds (or both), the City shall have the right, but not the obligation, to demand CVWD to require such performance by the surety by ii47 half (1/2) of all costs incurred in connection with such arbitration; however, the arbitrator shall have the power and discretion to order that the non -prevailing Party reimburse reasonable legal fees and costs incurred by the prevailing Party. (D) Subject to the foregoing, CVWD shall have no obligation to pay any cost increases for changes unless CVWD has approved the same in writing. (c) Arrange, or cause the Developer's Contractor to arrange, a pre - construction meeting with CVWD. At such meeting there shall be at least one (1) representative of Developer, Developer's Contractor and CVWD. At such meeting, Developer shall be required to pay to CVWD a deposit for inspection as shall be required by CVWD's standard schedule for inspection costs. CVWD shall deduct from said deposit all reasonable inspection expense of CVWD, including, but not limited to, CVWD's agents, employees or independent contractors. CVWD shall handle such deposit consistent with CVWD's rules, regulations and procedures with respect to such deposits. (d) Obtain and maintain in full force and effect during the term of this Agreement, the insurance coverages listed on Exhibit "H" attached hereto and by this reference incorporated herein. 8. Developer Construction Reauirements Following satisfaction of the requirements set forth in Section 7, Developer shall construct the improvements in accordance with the following requirements: (a) Developer shall, at its sole expense, apply for and obtain all necessary consents, approvals, permits, authority, licenses or entitlements as shall be required for the construction and installation of each facility or improvement from all appropriate governmental authorities. (b) Once construction and/or installation of an improvement has commenced, subject to Section 15(v), Developer shall diligently prosecute the same to completion at no cost or expense to CVWD (except as provided in Section 7(b)) in conformance with the laws, rules and regulations of all governmental bodies and agencies, including those of CVWD. (c) Developer shall perform, or cause to be performed, all construction and installation of the improvements in good, workmanlike and commercially reasonable manner, with the standard of diligence and care normally employed by duly qualified persons in the performance of comparable work and in accordance with generally accepted practices appropriate to the activities undertaken and in compliance with the construction standards set forth herein. Developer shall employ at all times adequate staff or consultants with the requisite experience necessary to administer and coordinate all work related to the design, engineering, construction and installation of the improvements. W (d) Developer shall name CVWD as an express third party beneficiary in its construction contract with Developer's Contractor. (e) Developer shall ensure that CVWD is a named additional insured in the insurance policies provided by Developer's Contractor pursuant to the Developer's construction contract. (f) Developer shall include CVWD, City, and the CVWD Indemnitees and City Indemnitees as defined Exhibit "I", as indemnitees in the indemnification clause in the construction contract between Developer and Developer's Contractor. (g) Developer shall cause the Developer's Contractor to comply with the applicable Occupational Safety and Health Administration ("OSHA") standards and requirements, including, but not limited to, submitting construction and shoring plans. (h) CVWD shall be under no obligation to protect any improvement to be constructed by or on behalf of Developer, or any material, tool, equipment and facilities until written acceptance thereof by CVWD. Prior to the acceptance, Developer shall bear all risk of loss or damage thereto by whatever cause inflicted. Developer shall bear the sole cost and responsibility to rebuild, repair, restore and replace or cause to be rebuilt, repaired, restored or replaced, and make good all injuries or damages to any portion of the improvements before completion and acceptance by CVWD and Developer shall bear the expense thereof. (i) Developer shall pay when due all valid charges from all contractors, subcontractors and suppliers supplying goods or services to Developer for the Domestic Water System and Sanitation System and shall keep the Domestic Water System and Sanitation System free and clear of any liens related to such charges. Developer shall indemnify CVWD and City for all claims, losses, damages, liabilities and expenses resulting from any liens filed against the Domestic Water System, Sanitation System and Irrigation System in connection with such charges; provided, however, that Developer shall have the right to contest any such lien, s❑ long as it provides a statutory bond or other reasonable assurances of payment that either remove such lien from title to the Domestic Water System, Sanitation System and Irrigation System or that assure that any adverse judgment with respect to such lien will be paid without affecting title to the Domestic Water System, Sanitation System and Irrigation System. 0) Each improvement shall be installed in strict compliance with the Plans. Any deviations from the approved Plans must have CVWD's prior written approval. (k) Developer is required by this Agreement to install and construct certain improvements which will be dedicated to CVWD upon completion thereof in accordance with the terms of this Agreement. Notwithstanding the foregoing, if Developer does not believe that it is required to perform such work in the same 19 manner and subject to the same requirements as would be applicable to CVWD had it undertaken construction, including, without limitation, the payment of prevailing wages, and other public works requirements pursuant to the California Labor Code, the California Government Code and the California Public Contract Code, then Developer undertakes such construction at Developer's risk. Should it be determined in the future by either the legislature or a court of competent jurisdiction that Developer was required to comply with some or all of the requirements as would be applicable to CVWD had it undertaken such construction, Developer shall indemnify, defend and hold harmless CVWD lndemnitees and City Indemnities (as defined in Exhibit "I") from all Costs (as defined in Exhibit "I") to which they may be subjected or put, by reason of or resulting from failure to comply with public works requirements, including, but not limited to, the failure to pay prevailing wages or such other requirements as would be applicable to CVWD had it undertaken such construction. (1) Developer hereby irrevocably appoints CVWD to inspect the furnishing and installation of the improvements. Developer shall provide CVVVD representatives with reasonable access for inspection purposes. it is Understood and agreed that CVWD's inspection personnel shall have the authority to enforce the Plans, which authority shall include requiring that all unacceptable materials, workmanship and/or installation be replaced, repaired or corrected by Developer's Contractor. Nothing herein shall be construed to grant CVWD direct control over Developer's Contractor or anyone but Developer or its designee. CVWD's inspection does not include inspection for compliance with safety requirements by Developer's Contractor_ Any inspection completed by CVWD shall be for the sole use and benefit of CVWD, and neither Developer nor any third Party shall be entitled to rely thereon for any purpose. CVWD does not undertake or assume any responsibility for or owe a duty to select, review or supervise the creation of the improvements. 9. Developer Requirements for Project Completion and Acceptance (a) (i) Upon completion and testing of the Domestic Water System, and at the time of Developer's request to Progress for Service (place in service), request for fire protection or domestic water service (issuance of meters), Developer's Engineer of Record shall provide signed and approved As - Built Drawings (electronic or hard copy) and Developer shall provide the actual construction cost of the improvements to CVWD. Upon completion and testing of the Sanitation System, and after base paving, the Developer may request to Progress for Service (place in service) the Sanitation System. At the time of the Progress for Service request for sanitation service, the Developer's Engineer of Record shall provide signed and approved As -Built Drawings (electronic or hard copy) and the actual construction cost of the improvements to CVWD. With respect to the Irrigation System Modification, upon and completion and testing of an Irrigation System improvement and/or abandonment of the applicable portion of the Irrigation System, the Developer's Engineer of 20 Record shall provide signed and approved As -Built Drawings (electronic or hard copy) and Developer shall provide the actual construction cost of the improvements to CVWD. Upon completion and testing of an improvement and/or abandonment of the applicable portion of the Irrigation System, and after final paving, Developer shall give CVWD notice of the same. Following receipt of notice from Developer, CVWD shall make a final inspection and provide written notice to Developer either (A) confirming that such Domestic Water, Sanitation and Irrigation System Modification improvement has been completed in accordance with the requirements of this Agreement or (B) setting forth a punchlist of items that need to be completed or corrected. If CVWD provides such a punchlist, the above - referenced notice and inspection procedure shall be repeated upon completion of the punchlist items. Nothing herein shall be considered a waiver of any warranty, guarantee or other right in favor of CVWD. (ii) Upon completion and acceptance of each applicable improvement, Developer shall prepare and execute a Certificate of Completion and Final Acceptance as to each applicable improvement and record said notice with the Office of Recorder of the County of Riverside, State of California. (iii) Upon receipt of the Certificate of Completion and Final Acceptance, the Bill of Sale provided herein shall convey title to the improvements at no expense to CVWD. The improvements shall be transferred to CVWD free of all liens and encumbrances. (iv) Developer warrants and represents to CVWD that the improvements covered hereby shall be free from construction defects for eighteen (18) months from the date of CVWD final acceptance. The Developer shall maintain in force the deposit for the duration of the eighteen (18) month guarantee. (v) CVWD shall repair, at Developer's expense, all failures of any improvement which was furnished, installed and/or constructed due to faulty materials or installation during the eighteen (18) month warranty period referred to in subsection (iv) above. Developer shall, within thirty (30) days after written demand therefor, pay or cause Developer's Contractor or surety to pay such cost shown on the invoice. Nothing in this subsection or subsection (iv) above shall limit or abrogate any other claims, demands or actions CVWD may have against Developer or Developer's Contractor on account of damages sustained by reason of such defects, nor shall the provisions of this Section limit, abrogate or affect any warranties in favor of CVWD which are expressed or implied by law or set forth in any construction agreement. 21 (b) Developer's Engineer shall provide to CVWD all field engineering surveys associated with the construction of the improvements, at Developer's sole expense. Developer shall promptly furnish to CVWD all field notes and grade sheets, together with all location, offset, and attendant data and reports, resulting from Developer's field engineering survey and/or proposed facility design changes, all of which have been prepared in accordance with generally accepted engineering practices, and allow CVWD sufficient time to approve or make any required design changes resulting therefrom prior to construction. Any inspection or review pursuant to this subsection shall be for the sole use and benefit of CVWD, and neither Developer nor any third party shall be entitled to rely thereon for any purpose. 10. Project Close Out Requirements After receipt of the Certificate of Completion and Final Acceptance the following requirements shall apply: (a) Upon completion of an improvement, Developer shall notify CVWD in writing, and cause contractors and all subcontractors and materialmen to provide unconditional lien and material releases. (b) Developer shall provide CVWD with a declaration by Developer's Contractor that the Developer's Contractor and all persons and entities who furnished material in the construction of the improvements have been paid in full. (c) All permits, plans and operating manuals related thereto, shall be delivered to and become the sole property of CVWD, subject to Developer's warranty work and other obligations required hereunder. On the acceptance of an improvement, Developer shall deliver to CVWD, at no cost to CVWD, all surveys and as -built drawings associated with the construction of the improvement. (d) Release of Construction Covenants. Upon request from Developer at any time after CVWD's final acceptance of the subject improvement (i.e., Domestic Water System, Sanitation System or Irrigation System Modification) or, if the approved plans for the particular improvement allow for phasing of the improvement, final acceptance of such improvements within a particular construction phase for such improvement (i.e., the portion of the Domestic Water System, Sanitation System or irrigation System Modification within a particular approved construction phase), Developer shall be entitled to a Release of Construction Covenants in the form of Exhibit "J" attached hereto (a "Release of Construction Covenants") for the applicable improvement. CVWD shall not unreasonably withhold any such Release of Construction Covenants, and if Developer is entitled thereto pursuant to the foregoing sentence, CVWD 051 shall furnish to Developer a recordable Release of Construction Covenants for the applicable improvements within fifteen (15) days after Developer's request thereof. Except for the warranty of Developer under this Agreement that the subject improvements will be free of construction defects for eighteen (18) months from the date of CVWD's final acceptance thereof (the "Warranty"), the Release of Construction Covenants shall be a conclusive determination of satisfactory completion of the applicable improvements and the Release of Construction Covenants shall so state. Except for the Warranty, any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the real property for which a Release of Construction Covenants has been issued shall not (because of such ownership, purchase, lease or acquisition) incur any obligation or liability under this Agreement. If CVWD refuses or fails to furnish a Release of Construction Covenants after written request from Developer, CVWD shall, within fifteen (15) days after written request therefor, provide Developer with a written statement of the reasons CVWD refused or failed to furnish a Release of Construction Covenants. The statement shall also contain CVWD's opinion of the actions Developer must take to obtain a Release of Construction Covenants for the applicable improvement. A Release of Construction Covenants shall not constitute a waiver or release of the Warranty and shall not constitute evidence of compliance with or satisfaction of any obligation of Developer to any holder of any mortgage, or any insurer of a mortgage securing money loaned to finance the applicable improvement. 11. CVWD Requirements for Domestic Water Service CVWD shall d❑ the following for domestic water service to the Project: (a) Not used. (b) Subject to federal, state and local laws, rules, regulations, ordinances and rulings with respect to the provisions of fire flow, including those of CVWD, provide a fire flow of two thousand two hundred and fifty (2,250) gallons per minute, respectively, to said Project subject to completion of all CVVVD's requirements in connection with the same, including, without limitation, Developer constructing all pipelines, BSTIPRV and PRV, subject to circumstances within the control of CVWD. (c) Subject to Developer constructing the Domestic Water System and complying with the terms of this Agreement, including, but not limited to the payment of fees, CVWD shall provide domestic water service to the Project subject to circumstances within the control of CVWD or as otherwise provided by CVWD's rules, regulations and indices, policies and procedures, as may be amended from time to time. Further, Developer acknowledges that domestic water service shall be provided from such 23 services and facilities as shall be available to CVWD. In the event water is unavailable to service all of CVVVD's customers, service to the Developer Property may be discontinued or subject to reduction in service, as determined by CVWD. (d) Not used. (e) Not used. (f) Not used. 12. CVWD Reauirements for Sanitation Service CVWD shall do the following for sanitation service to the Project: (a) Subject to Developer constructing the sanitation collection system and complying with the terms of this Agreement, including, but not limited to the payment of fees, CVWD shall provide sanitation service to the Project subject to circumstances within the control of CVWD or as otherwise provided by CVVVD's rules, regulations and indices, policies and procedures, as may be amended from time to time, Further, Developer acknowledges that sanitation service shall be provided from such services and facilities as shall be available to CVWD. In the event water is unavailable to service all of CVWD's customers, sanitation service to the Developer Property may be discontinued or subject to reduction in service, as determined by CVWD. (b) Not used. (c) Not used. (d) Not used. 13. CVWD Irrigation System Modification Requirements CVWD shall do the following for irrigation service to the Project: (a) Subject to the completion of the Irrigation System Modifications and complying with the terms of this Agreement, CVWD shall provide irrigation service to the Project subject to circumstances within the control of CVWD or as otherwise provided by CVVVD's rules, regulations and indices, policies and procedures, as may be amended from time to time. (b) Developer acknowledges and agrees that the irrigation provided by CVWD is of an interruptible nature and Developer shall maintain an alternative water supply in "ready" status. Developer further acknowledges and agrees that CVWD shall have no obligation to provide an alternative water supply to be used by Developer. If CVVVD does not or is unable to deliver irrigation, Developer waives and releases CVIND and City from any claims, loss, damage or action Developer may have against CVWD for failure to deliver irrigation, including, but not limited 0 to, loss of business, loss of profit or inconvenience (collectively, "Claims") and Developer shall hold CVWD and City free and harmless from any and all liabilities or economic losses which result in the failure to deliver irrigation to the Project. The foregoing indemnity shall not apply to the extent any Claims are ultimately established by a court of competent jurisdiction to have been caused by the gross negligence or willful misconduct of CVWD. (c) In conjunction with the Developer, obtain from USBR all necessary consents, approvals, permits, authority, licenses or entitlements required in order to abandon the portion of the Irrigation System within the USBR Easement and relocate such pipelines to the Replacement Easement. (d) Install a portion of lateral 120.8 at Developer's sole expense as described in the first bullet paragraph of Exhibit "F". (e) Abandon Lateral 120.8-0.3 at City's sole expense as described in the second bullet paragraph of Exhibit "F". (f) Abandon Lateral 120.8-0.3-0.5RT at City's sole expense as described in the third bullet paragraph of Exhibit "F". (g) Construct Bypass and Box Culvert work as described in fourth bullet paragraph of Exhibit "F", along with the associated provisions for inspection, soils and concrete testing, and construction management ("Bypass/Box Culvert Work"), subject to reimbursement of expenses by City (and, per Section 14(a) Developer's reimbursement of City) pursuant to the provisions described below: (i) City shall review and approve, in its reasonable discretion, the scope and estimated cost of the Bypass/Box Culvert Work prior to any soliciting of bids. Upon City's approval of the scope of work and estimated cost, the City shall be deemed to have approved its obligation to pay the expenses for the Bypass/Box Culvert Work up to and including the amount of the estimated cost, which shall be memorialized by written notice delivered to the parties. Based upon the City -approved scope of work and estimated cost amount, CVWD shall obtain bids from qualified and properly licensed, insured and bonded contractors reasonably approved by City and CVWD for the Bypass/Box Culvert Work. Subject to subsection (g)(iv) below, the construction of the Bypass/Box Culvert Work shall be awarded to the lowest responsive and responsible bidder. CVWD shall provide City a minimum of seven (7) business days' notice of the bid opening, which City may attend. Within seven (7) business days after the bid opening, CVWD shall deliver to City written notice of the bid amounts for the Bypass/Box Culvert Work along with estimated inspection costs of $30,000 and estimated soils and concrete testing costs of $18,000. Within seven (7) business days of City's receipt of the bid amounts and said costs, City shall deliver written notice to CVWD with one of the following directives: (A) Authorize CVWD to proceed with awarding a contract for the Bypass/Box Culvert Work to the lowest responsive and responsible 25 bidder; (B) Reject all bids associated with the Bypass/Box Culvert Work only; or (C) Request additional time for the City to review the Bypass/Box Culvert Work bids based on any failure of CVWD to comply with the noticing provisions in this paragraph. Notwithstanding any provisions in this Agreement to the contrary, in no event shall City have any obligation to pay or reimburse CVWD for any Bypass/Box Culvert Work awarded to any contractor that would result in either costs that exceed the City - approved estimated cost amount or would result in the City's payment obligations under this Agreement to exceed the "Not To Exceed Amount" as defined in Section 14(a) below. (ii) Subject to subsection (g)(i) above, after the bids are received, CVWD shall review and approve the bids and the successful bidder for the Bypass/Box Culvert Work. The parties agree that CVWD shall be the awarding body and shall be responsible for compliance and enforcement of all applicable laws relating thereto. In addition, CVVIVD shall ensure the following: (A) City is named as an obligee under any labor and material payment bonds and contract performance bonds for the Bypass/Box Culvert Work; (B) City is named as an additional insured on any general liability insurance required by CVWD; (C) City and its officers, officials, employees, agents, and successors and assigns are named as indemnified parties under all indemnifications, hold harmless provisions, waivers and releases in favor of CVWD for any contractor and subcontractor for the Bypass/Box Culvert Work; (D) City shall be entitled to all warranties, guarantees and post completion bonds with respect to the Bypass/Box Culvert Work. (iii) City shall be required to pay its share for the cost of the Bypass/Box Culvert Work, based upon the itemized bids, subject to the provisions in this subsection (g). (iv) Once construction of the Bypass/Box Culvert Work has commenced, City shall make monthly progress payments to CVWD for City's share of the Bypass/Box Culvert Work, subject to the provisions in this subsection (g). (v) The construction contract shall be set up so that CVWD's Contractor submits requests for progress payments by the 25th day of each calendar month (for Bypass/Box Culvert Work performed to that date from the 25th day of the prior month). Promptly thereafter representatives of CVWD and CVWD's Contractor shall meet at the site and inspect the Bypass/Box Culvert Work for which the progress payment is being requested. As soon as the request for payment has been approved by CVWD, CVW❑ shall commence its standard payment process, which involves issuing payment for the approved Bypass/Box Culvert Work by the third Monday of the following month. At such time as CVWD is prepared to pay CVWD's share (less retention), City shall pay to CVW❑ the full amount (less retention amounts) of its share of the requested progress payment. Payment shall not be made unless and until lien releases and other appropriate documents have been provided by CVWD's Contractor to the satisfaction of CVWD. City and CVWD shall withhold five percent (5%) retention amounts from each progress payment. (vi) (A) CVWD shall cause its contractors to complete the Bypass/Box Culvert Work in strict accordance with the scope of work approved by the City. Any deviation from the scope of work must be approved by City in writing. Change orders for the project may be warranted due to a variety of reasons, including but not limited to, unforeseen circumstances or need for additional construction. In the event of a change order, CVWD shall provide City with a copy of the change order within five (5) business days of receiving the change order for City's review. City and CVWD shall determine if a change order is valid. CVWD shall receive City's written authorization to proceed with the change order and any additional costs attributable thereto, for which the City agrees to pay, prior to the work under the change order commencing. Additionally, if as a result of any proposed change order the estimated inspection or material testing costs listed in Subsection 13(g)(j) above would be exceeded, CVWD shall notify and receive prior written approval from City before incurring those additional costs. (B) Subject to the foregoing, City shall have no obligation to pay any cost increases for changes unless City has approved the same in writing. CVWD shall have no obligation to pay any costs or change orders associated with the Bypass/Box Culvert Work including the estimated inspection, soils and concrete testing costs. 14. City's Requirements (a) Subject to Developer completing the sub -grading of SilverRock Way at Developer's cost and expense, City shall use bond proceeds in an amount not to exceed the amount identified and appropriated in the City's Fiscal Year 201$119 Capital Improvement Project budget (referred to as the "Not To Exceed Amount") for the construction of SilverRock Way and domestic water and sanitation facilities within SilverRock Way, and for the reimbursement to CVWD of the Bypass/Box Culvert Work (set forth in Section 13(g) above). The City shall construct and complete, or cause to be constructed and completed, the domestic water, sanitation, and infrastructure particularly described as items 3, 7, S, and 9 of Appendix A, attached hereto and collectively referred to herein as the "City SRW Improvements." Developer shall have the obligation to pay for any costs and expenses incurred by the City for the City SRW Improvements and the Bypass/Box Culvert Work that exceeds the Not To Exceed Amount and that are 27 not paid for by CVWD. Developer shall have no other cost responsibility for the City SRW Improvements and no cost responsibility for the City Irrigation Improvements (defined in subsection (b) below). The City shall cause the same to be accepted by CVWD and shall be responsible for the 18-month warranty to CVWD required hereunder regarding freedom from construction defects, ail in accordance with the construction terms of this Agreement applicable to the City SRW Improvements. City and Developer shall meet and confer and closely coordinate with one another as needed to assure that the City SRW Improvements and the City Irrigation Improvements (as defined below) and the balance of the infrastructure improvements to be completed by Developer are planned, developed and completed in a logical sequence within the context of the overall Project. Provided that Developer is otherwise in compliance with the development of the Project pursuant to the PSDA, the City shall commence the City SRW Improvements and the City Irrigation Improvements on or before Developer's commencement of either hotel/branded residence Project Component (as referred to in the PSDA) and shall complete the City SRW Improvements and City Irrigation Improvements no later than when the first Unit (as defined in Recital G) requires service from CVWD. (b) The work to be performed by City as described in Exhibit C to that certain Agreement Regarding Real Property dated April 19, 2017 by and between CVWD and City recorded in the Official Records of the County of Riverside Recorder's Office as instrument no. 2017-0218005 on June 1, 2017 (the "Agreement Regarding Real Property"), is referred to herein as the "City Irrigation Improvements". When the City Irrigation Improvements are completed, CVWD will cooperate with City and Developer to cause the Agreement Regarding Real Property to be released from title. The parties also agree that (i) the references in the Agreement Regarding Real Property to "SilverRock Development Company" shall now be "SilverRock Phase I, LLC", and (ii) the grant by SilverRock Phase i, LLC of a security interest in the property owned by SilverRock Phase I, LLC to its construction lender by means of a deed of trust (and any transfer following or in connection with its construction lender's exercise of its remedies thereunder) is not a violation of the Agreement Regarding Real Property. 15. General Provisions (a) Developer shall defend, indemnify, and hold harmless CVWD and City, and their respective officers, directors, administrators, representatives, consultants, engineers, employees and agents and their respective successors and assigns (collectively, "CVWD Indemnitees" and "City Indemnities"), in accordance with the provisions of Exhibit "I" attached hereto and by this reference incorporated herein. (b) Prior to the acceptance of the improvements by CVWD, Developer shall furnish to CVWD any and all documents reasonably requested by CVWD. m (c) Subject to Section 15(v), in the event that construction of any improvements to be constructed hereunder has not begun within twelve (12) months of the date of approval of the Plans, CVWD shall have the right to terminate this Agreement effective upon written notice to Developer. Following such termination, the Parties may enter into a new agreement which shall be subject to the fees, charges and Rules applicable at the time of the making of the new agreement. (d) All notices under this Agreement shall be in writing and mailed (registered or certified, postage prepaid, return receipt requested), or by express carrier (return receipt requested) or hand delivered to Parties at the addresses set forth below. All such notices shall, if hand delivered, or delivered by express carrier, be deemed received upon delivery and, if mailed, be deemed received three (3) business days after such mailing. ��] Coachella Valley Water District Attention: J.M. Barrett, General Manager Post Office Box 1058 Coachella, California 92236 [a]kl1 A City of La Quinta Attention: City Manager 78--495 Calle Tampico La Quinta, CA 92253 with copy to William H. ihrke, Esq. Rutan & Tucker, LLP 611 Anton Blvd., Suite 1400 Costa Mesa, CA 92626 DEVELOPER: SilverRock Phase 1, LLC c/o The Robert Green Company 3551 Fortuna Ranch Road Encinitas, CA 92024 Attn: Robert Green With a copy to: SilverRock Phase I, LLC c/o The Robert Green Company 3551 Fortuna Ranch Road Encinitas, CA 92024Attn: John Gamlin 29 (e) Time is of the essence of this Agreement and each and every term and provision thereof. (f) This Agreement shall be construed as if prepared by all of the Parties hereto. Accordingly, any rule of law (including California Civil Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the Party that has drafted it is not applicable and is waived. (g) No delay on the part of any Party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise of any other right, power or privilege hereunder. (h) If any of the provisions of this Agreement are held to be contrary to law by a court or governmental administrative agency of competent jurisdiction, such provisions will not be deemed valid and subsisting, except to the extent permitted by law, and the parties shall, if possible, enter into negotiations for the sole purpose of arriving at a mutually satisfactory replacement for such provisions. The remainder of this Agreement shall not be affected thereby and shall continue in full force and effect. (i) This Agreement may only be modified in a writing signed by all of the Parties. 0) In the event of any litigation or other action between the Pates arising out of or relating to this Agreement or the breach thereof, the prevailing party shall be entitled, in addition to such other relief as may be granted, to its reasonable costs and attorneys' fees. (k) The invalidity or illegality of any provision of this Agreement shall not affect the remainder of this Agreement. (1) Each Party hereto agrees to execute and deliver such documents and perform such other acts as may be reasonably necessary to effectuate the purposes of this Agreement. (m) Each individual executing this Agreement hereby represents and warrants that he or she has the full power and authority to execute this Agreement on behalf of the named Parties. (n) Developer shall maintain and make available for inspection by CVWD during regular office hours, accurate records pertaining to the design, construction and installation of the improvements to be constructed by Developer. (o) This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument. 30 (p) If any payment due CVWD hereunder is not paid within ten (10) business days after notice from CVWD that such sum is due, Developer shall pay to CVWD the lesser of $1,000 or an additional five percent (5%) for each payment due as an administrative processing charge. The Parties agree that this late charge represents a fair and reasonable estimate of the costs that CVWD will incur by reason of late payment by Developer. Acceptance of any late charge shall not constitute a waiver of Developer's default with respect to the overdue amount or prevent CVWD from exercising any of the other rights and remedies available to CVWD. Any payment not paid when due shall bear simple interest at the rate of ten percent (10%) per annum (provided such amount shall not exceed the maximum rate allowed under California law) from the date due until paid in full. (q) The Parties agree that any action or proceeding to enforce or relating to this Agreement shall be brought exclusively in the Federal or State courts located in Riverside County, California, and the Parties hereto consent to the exercise of personal jurisdiction over them by any such courts for purposes of any such action or proceeding. (r) This Agreement is entered into within the State of California, and all questions concerning the validity, interpretation and performance of any of its terms or provisions or any of the rights or obligations of the Parties hereto shall be governed by and resolved in accordance with the laws of the State of California without regard to conflict of law principles. (s) This Agreement supersedes the Previous Agreement and, upon the recordation of this Agreement, the Previous Agreement shall be of no further force or effect. (t) The terms and provisions set forth in this Agreement shall be deemed provisions, terms and/or covenants running with the Developer Property in accordance with applicable law, including, without limitation, Section 1468 of the California Civil Code and shall pass to and be binding upon the successor owners of the Developer Property. This Agreement shall burden the Developer Property and is binding on the successors, assigns and all persons acquiring ownership of any interest in, or any portion of the Developer Property. This Agreement shall benefit the Developer Property and inure to the benefit of the owners of the Developer Property. As such, all successor owners of the Developer Property will have the rights, responsibilities and liabilities of Developer relating to its period of ownership, as if such person or entity originally executed this Agreement in place and stead of Developer. Each and every contract, deed or other instrument hereafter executed conveying the Developer Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to such terms and conditions regardless of whether such terms and conditions are set forth in such contract, deed or other instrument. No transfer of the Developer Property shall relieve Developer or any successor owner of any responsibility or liability under this Agreement that relates to its period of ownership. In the event a property owner's 31 association is formed with respect to any portion of the Developer Property, the obligations in Sections 1.(g) through 0) applicable to such portion of the Developer Property shall be assigned to and accepted and assumed by the property owners association. Notwithstanding the foregoing, it is acknowledged that as of the Effective Date of this Agreement, the parcels of the City Property, within the SilverRock Resort Area, not yet sold to Developer are subject to the PSDA with Developer, and under the PSDA the City intends to self portions of the City Property, within the SilverRock Resort Area, to Developer in phases_ As such, excepting only the terms of Section 14(a), which are binding on the City from the Effective Date, the Parties intend for the terms and conditions of this Agreement relating to Developer to bind the City only if said PSDA is terminated. Further, if said PSDA is terminated, with the exception of the terms of Section 14(a), the terms and conditions of this Agreement shall be tolled for a period of up to twelve (12) months, during which time City shall attempt to select one or more developers (each, a "Subsequent Developer") to develop all or a portion of the Developer Property and assume the obligations of the "Developer" under this Agreement with respect to such portions of the Developer Property, and enter into with such Subsequent Developer(s) the appropriate agreement(s) (each a "Subsequent PSDA"). Provided City selects and enters into one or more Subsequent PSDAs with one or more Subsequent Developers, this Agreement shall be further tolled with respect to each portion of the Developer Property covered by a Subsequent PSDA until such time as that portion of the Developer Property has been transferred in fee to the applicable Subsequent Developer, but in no event for longer than an additional six (6) months. In no event shall the City have any obligation to contribute or fund any more than the amount identified in Section 14(a) unless and until the La Quinta City Council authorizes and appropriates funding in an amount or amounts that are sufficient for the City to have the ability to perform any terms and conditions of this Agreement relating to the Developer that may bind and be transferred to the City pursuant to this Section 15(t). (u) Following fulfillment of the terms and conditions herein and acceptance by CVWD of the improvements to be constructed hereunder, CVWD will provide domestic water and sanitation service to the Developer Property in accordance with the Rules. (v) A Force Majeure Event shall excuse the performance for a period equal to the period of any said prevention, delay, or stoppage, of the obligation hereunder, provided however, that no obligation for the payment of money shall be excused or delayed as a result of a Force Majeure Event. "Force Majeure Event" shall mean prevention, delay, or stoppage due primarily to any of the following: war; insurrection; terrorism, civil commotions; strikes; lockouts; labor disputes; riots; floods; earthquakes; fires; severe weather; concealed site conditions; acts of God or of a public enemy; terrorist acts; epidemics; quarantine restrictions; freight embargoes; archeological finds; inability to obtain labor, materials, or fuels or reasonable substitutes therefor; litigation; governmental restrictions, regulations, controls, action or inaction, or moratoriums, and, other causes beyond the reasonable control of the Party obligated to perform. 32 (w) A mortgagee who has delivered to CVWD a written notice stating that such mortgagee is the holder of a mortgage encumbering all or a portion of the Property shall receive a copy of any notice CVWD gives to Developer. In addition, this Agreement shall not be amended without such mortgagee's prior written consent, which consent shall not be unreasonably withheld. No breach of the covenants, conditions or restrictions herein contained shall affect, impair, defeat or render invalid the lien or charge of any mortgage made in good faith and for value encumbering any interest in the Property. A transferee who acquires title through a Foreclosure Event, shall not be obligated to cure any than existing breach. "Foreclosure Event" means a judicial or non -judicial foreclosure sale or a conveyance in lieu thereof. In the event of a default by Developer, the mortgagee providing notice of its interest shall have the right to cure such default concurrent with any right of Developer to so cure the same plus, except where the particular default creates a nuisance or a risk to public health or safety, such mortgagee shall have an additional thirty (30) day period to cure the subject default or, if not capable of cure in such thirty (30) day period, to commence such cure within such thirty (30) day period and thereafter proceed diligently to complete such cure. (x) With respect to their obligations under Sections 1 through 10 and Section 14 of this Agreement, a Party fails to comply with the terms of this Agreement, then the nondefaulting Party shall notify the defaulting Party of such failure in writing, which notice must include a reasonably detailed description of the default (a "Notice of Default"). Subject to any provision providing for longer or shorter notice and cure rights, on or before the thirtieth (30th) day following a receipt of a Notice of Default, the defaulting Party shall: (i) cure the default; or (ii) if the default cannot reasonably be cured within the thirty (30) day period, commence to cure the default and thereafter diligently pursue the cure to completion with such additional time necessary to complete such cure. If a material default is not cured within the time allowed, or a cure does not commence in accordance with the preceding sentence, the nondefaulting Party shall have the right to pursue any or all remedies available under this Agreement, at law or in equity, serially or concurrently. (y) This Agreement, together with the exhibits attached hereto and other writings referenced herein, such as, but not limited to the Rules, contains the entire agreement between the Parties relating to the subject matter hereof and supersedes any and all prior agreements between the Parties, oral or written, and any and all amendments thereto. Any oral representations or modifications concerning this Agreement shall be of no force and effect. IN WITNESS WHEREOF, the Parties have caused this Special Domestic Water System and Sanitation System Installation Agreement to be executed as of the day and year first set forth above. 33 Dated: CITY: ATTEST: Nichole Romane, Deputy City Clerk City of La Quinta, California APPROVED AS TO FORM: am H. IM , Ci Attorney 34 CITY OF LA QUINTA, a public agency of the State of California .ion nager Dated: u5 �a f : ) �I l i DEVELOPER: SILVERROCK PHASE I, LLC, a Delaware limited liability company By: The Robert Green Compan , a California C , By: Robert S. Green, Jr resident and Chief Executive Officer Dated: 06) • IZ • :W l''/ CVWD: 0 Sylvia Mermudez Clerk of the Board COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California 35 By: J.M. Ba e General Vanager ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. COUNTY OF %�Grbi cLZ ] On f� 21 ,_9 D19 before me, rat Fj (insert narAe and title of officer} personally appeared (_}�1 ��'YI + �,_ , who proved to me on the basis of satisfactory evidence to be the person(e whose name*Ware subscribed to the within instrument and acknowledged to me that(lia%helthey executed the same in(Dherltheir authorized capacity, aey, and that by is her/their signature($-yon the instrument the person(, or the entity upon behalf of which the person( -acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ; y ANGEIAFERREIRA Notary Public . Caiifornla f Riverside County ` Commission # 2282882 my Comm. Expires Apr 17. 2a23 Signatu (Seal) Ku ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF S-Rt[ On UNCI before me, _ Q%k L TV-E fftWk�j� [insert name and title of officer) v� uUouL � personally appeared �U tO, 7; R ' , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. PAULME FARQUHAR Notary ruWit • CafiFornia Sari Diego County F Commission 9 ZZ0411 MY Comm. Expires Nov 2, 2022 37 I:[1]I'll .1611 44Bit] 4l',l=1l11kI A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 641rTr1:9011116Y.11IIMQ IViaT.► COUNTY OF Rivzzfs idy, } On U, 42hl :) &L 0 pefore me, (insert name and title of officer) personally appeared ,I - /V . f �afrL PL who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the persons), or the entity upon behalf of which the person(s) acted* executed the instrument. l certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signatu M. (Seal) EWA L, CASARRLISIAS Notary public - California : Riverside County >; Commission # Z235852 My Comm. Expires Mar 15, 2022 CONSENT TO AGREEMENT MOSAIC SILVERROCK, LLC, a Delaware limited liability company ("Lien Holder") is the current holder of the beneficial interest under a Construction Deed of Trust, Security Agreement, Fixture Filing and Assignment of Leases and Rents dated November 28, 2018 and recorded November 28, 2018 as Document No. 2018-0464681, Official Records of Riverside County, California ("Lien"). Lien Holder hereby consents to the Agreement to which this Consent is attached, between COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California, its successors and assigns and the Owner of the subject real property. Lien Holder hereby agrees that in the event: of a foreclosure of the Lien, the Agreement shall survive such foreclosure and remain binding upon the subject real property and all subsequent owners thereof. Executed as of this day of 5Wemlonr, 2019. LIEN HOLDER MOSAIC SILYEWCK, LLC, a Delawar t liability c� By: Name: Title: 1 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On u11 before x Notary Public, personally appeared me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PER.NRY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. MICHELLE LORRAINE GIITIERREI Notary Public • Calltnrnla E, Los►n9eles County _ Commission My A 223R842 Comm. Expray 1, (Seal) EXHIBIT LIST EXHIBIT "A" DESCPITION ❑F SILVERROCK RESORT AREA EXHIBIT "B" ❑EPICTION OF SILVERROCK RESORT AREA EXHIBIT "C" STANDAR❑ INSTALLATION AGREEMENT EXHIBIT "D" ❑ESCRIPTIONIDEPICTION ❑F ❑OMESTIC WATER FACILITIES EXHIBIT "E" ❑ESCRIPTIONIDEPICTION OF SANITATION FACILITIES EXHIBIT "F" DESCRIPTION/DEPICTION OF IRRIGATION SYSTEM FACILITIES AND DESCRIPTION OF ABANDONED IRRIGATION SYSTEM FACILITIES EXHIBIT "G" BMPS EXHIBIT "H" INSURANCE EXHIBIT "I" INDEMNITY OBLIGATIONS EXHIBIT "J" RELEASE OF CONSTRUCTION COVENANTS EXHIBIT "K" PROJECT PHASING MAP APPENDIX A SCHEDULE 39 EXHIBIT "A" To Special Domestic Water System, Sanitation System, and Irrigation System Modification Installation Agreement Legal Description City and Developer Property CITY PROPERTY Parcels 2, 13 through 20, inclusive; A, B, and C of Parcel Map No. 37207, in the City of La Quinta, County of Riverside, State of California, filed in Book 242, Pages 72 through 87, inclusive, of Parcel Maps, in the office of the County Recorder of said county. CONTAINS 392.44 acres, more or less, as shown on Sheet 1 of 2 Sheets of Exhibit "B" attached hereto and by this reference made a part hereof. SUBJECT TO all covenants, rights, rights -of -way and easements of record. DEVELOPER PROPERTY Parcels 1, 3, 4, 5 through 12, inclusive; D, E, F and G, all of Parcel Map No. 37207, in the City of La Quinta, County of Riverside, State of California, filed in Book 242, Pages 72 through 87, inclusive, of Parcel Maps, in the office of the County Recorder of said county. Reserving therefrom Parcels 1, 3, 4, 5, and 6 all oil, gas, hydrocarbon substances, and minerals of every kind and character lying more than five hundred (500) feet below the surface, together with the right to drill into, through, and to use and occupy all parts of the phase 1a property lying more than five hundred (500) feet below the surface thereof for any and all purposes incidental to the exploration for and production of oil, gas, hydrocarbon substances or minerals from said phase 1 a property or other lands, but without, however, any right to use either the surface from said phase 1a property or any portion thereof within five hundred (500) feet of the surface for any purpose or purposes whatsoever, or to use the phase 1 a property in such a manner as to create a disturbance to the use ❑r enjoyment of the phase 1 a property, as reserved by the City of PAGE 1 of 2 � �:11 l k iv_% Ir Special Domestic Water System, Sanitation System, and Irrigation System Modification Installation Agreement Legal Description City and Developer Property La Quinta, a California municipal corporation and charter city, in the Grant Deed recorded November B, 2017, as Instrument No. 2017-0463950 of Official Records. Contains 128.87 acres, more or less, as shown on Sheet 2 of 2 Sheets of Exhibit "B" attached hereto and by this reference made a part hereof. SUBJECT TO all covenants, rights, rights -of -way and easements of record. This legal description and accompanying plat were prepared by me or under my direction in conformance with the requirements of the professional land surveyor's act. \1 E 8 I Christopher I. Alberts, PLS 8508 * Ls Ho. g Date PAGE 2of2 EXHIBIT "B" CITY PROPERTY PARf�L 13 14.57 AC. 5 PARCEL 17� 7$ PARCEL 1717 APN 770-260-037 APN 776-150-029 APN 777-490-050 PARCEL 1 45.63 AC. APN: .6a CITY PROPERTY PARCEL AREA (AQ 2 0.60 13 67.79 14 37.77 15 30.50 16 77.13 17 65.63 18 51.51 19 51.39 20 3.69 A 0.15 8 4.57 C 1.71 TOTAL 392.44 1000 500 0 1000 2000 300( SCALE: 1"=1000' PARCEL 16 APN n6-150-030 `52 ON 777-40-049 t77.13 AC. 5 4 5 PARCEL 6 PARCH PARCEL7 APN 777-490-048 LT0.50 AC. APN 777-490 mi PARCEL 9 f51.51 AC. AUAdERICAAI CAAd4(, PARCEL 4 PARCEL 9 PARCEL 14 APN 777-49o-047 07.77 AC. iF— W PARCEL 10 P (£1 C � APN 777—MM51 N 151.51 AC. f1.71 AC. PARCEL A PARCEL 10 ■0.15 AC. PARCEL 11 O C17 �L0 w APN 777-08 APN 777-49 L51.39 AC � LA* FI AM 74 APN m—M-079 PARCEL ±67.79 AC. i I e8RQQ-3D. APN 777-160-081 �3.69 AC. 8�j AVENUE 54 17116 SHEET 1 OF 2 SHEETS LEGEND CITY PROPERTY E/ISTING LOT LINE P Michael Baker SECTION ,i"E * 'LSNo. 8508INTERNATIONAL I� g,V-19 75M Gerald Ford Drive, Suite 100 Palm Desert, CA 922t1 LOCATED IN POR . OF SEC. 8, T . 6S . , R . 7E . , S.G.M. phone4 7B0-34E-7481 www mbakerintLcom EXHIBIT"B" DEVELOPER PROPERTY 1000 500 0 1000 2000 3000 - SCALE: 1"=1000' PARCEL B PARCEL� 9� APN 777-494-454 4.52 AC. �2 PARCEL 17 AM 777-4%-042 t3.28 AC. 6 5 PARCEL 17 _ 54 PAR {1 L 16 8 9PARMI a APN 777�496-043 0 49.05 AC. 31 2�026 M-49a-036 s13.90 AC. PAROD,_7 APN M-490-044 t11.41 AC. PARCEL 15 -j PARCEL 2 APN 777-490-053 5 II N 1.55 AC. 16.96 AC. PARCEL G APN 777-49U-055 PARCEL 3 t0.35 AC. ACC AWRICAN CANAL APN Tn-490-037 PARCEL 18 APN 777-490-040 g� t1.94 AC. PARCEL 14 I I, J U-j PARCEL C PARCEL 18 L/7 PARCEL I PARCEL A N 7T7-060-076 Z� PARCEL 11 03.46 AC. p APN 777-06"77 Ln f15.48 AC. I iU., LL. I PARCEL 19 I !� PA1O-0 APN 778 *2z.02— PARCEL 13 PARCEL 0 *2.20 AC. I I � I f 8 Q AVENUE 54 17 16 �Q*p,� f SHEET 2 OF 2 SHEETS LEGEND �SS��eHCR L, qC Michael� DEVELOPER PROPERTY o Baker EXISTING LOT LINE - - — CL- SECTION LINE * U LS N0, 8508 — cEr'TERLINE INTERNATIONAL �!f$'�"�� �Q 75410 Gerald Ford Drive, Suite 100 qlf' OF C A�IF��� Palm Desert, CA 922t1 LOCATED IN POR . OF SEC. $ , T . 65 . , R . 7E . , S.B.M. phonez 760--346-7481 www.mbakerinti.com DEVELOPER PROPERTY PARCEL AREA (AC.) 1 13.90 3 1.94 4 16.42 5 3.28 6 9.05 7 11.41 8 6.96 9 10.33 10 13.46 11 15.48 12 22.02 D 2.20 E 1.55 F 0.52 G 0.35 TOTAL 128.87 EXHIBIT "C" f SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AND IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT l;�lfl2111711:111111ill 601lf.1>A1:119ril0I:[el INxAkfxONiI EXHIBIT "D" TO SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AND IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT DESCRIPTION/DEPICTION OF DOMESTIC WATER FACILITIES Install an 18-inch diameter pipeline along SilverRock Way connecting to the existing 18-inch diameter ductile iron pipe approximately 1,000 feet south of Avenue 52 and the existing 18-inch diameter ductile iron pipe in Hideaway Club Drive at Jefferson Street (Lower La Quinta Pressure Zone). Install 36-inch diameter steel sleeve for the 18-inch diameter water pipeline under Coachella Canal crossing at SilverRock Way. 2. Install an 8-inch diameter pipeline connecting to the existing 18-inch diameter ductile iron pipe in Jefferson Street approximately 350 feet south of Rosewood Lane (Lower La Quinta Pressure Zone) 3. Install an 18-inch diameter pipeline (Lower La Quinta Pressure Zone) connecting to the proposed 18-inch diameter pipeline in SilverRock Way and the existing 24-inch diameter ductile iron pipe in Avenue 54 approximately 2,300 feet west of Jefferson Street (Lake Cahuilla Pressure Zone). 3.1. The pressure zone split will be accomplished through a Booster Station/Pressure Reducing Valve Station (BSTIPRV) provided by the developer. 3.2. CVW❑ shall be responsible for the upsizing costs from an 8-inch diameter pipeline to an 18-inch diameter pipeline and the upsizing costs of the Booster/Pressure Reducing Valve Station capacity from 1,000 gallons per minute to 2,000 gallons per minute. 4. Install an 8-inch diameter pipeline connecting to the proposed 18-inch diameter pipeline in SilverRock Way (Lower La Quinta Pressure Zone) to the existing 12-inch diameter ductile pipe in Jefferson Street, approximately 200 feet north of Avenue 54 (Lake Cahuilla Pressure Zone). 4.1. The pressure zone split will be accomplished through an 8-inch Pressure Reducing Valve Station, capable of transferring a minimum of 1,000 gallons per minute, provided by the developer. EXHIBIT "E" TO SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AND IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT DESCRIPTION/DEPICTION OF SANITATION FACILITIES Install 2,950 linear feet of 24-inch diameter gravity sewer pipeline connecting to the existing 27-inch diameter gravity sewer pipeline located at Jefferson Street and Hideaway Club Drive and will extend northwest crossing under the Coachella Canal along SilverRock Way. Install 48-inch diameter steel sleeve for the 24-inch gravity sewer pipeline under Coachella Canal crossing at SilverRock Way. Install 2,010 linear feet of 12-inch diameter gravity sewer pipeline connecting to the proposed 24-inch gravity sewer pipeline in SilverRock Way extending north along SilverRock Way. Install approximately 945 linear feet of 24-inch diameter gravity sewer pipeline connecting to the existing 24-inch diameter gravity sewer pipeline on Ave 52 approximately one -eighth of mile west of Jefferson Street and connect to the proposed 24-inch diameter gravity sewer pipeiine in SilverRock Way. This pipeline will convey existing sewer flows from the tributary area of CVWD's Lift Station 55-10. Upon completion of the gravity sewer pipelines listed above developer shall abandon at Developer's sole cost and expense, the remaining surface appurtenances (after CVWD has removed the reusable items) at the sewer lift station located on Avenue 52, approximately 1,800 feet west of Jefferson Street and abandon in place the existing 14-inch diameter sewer force main along Avenue 52 from the sewer lift station to Jefferson Street. ■ Install approximately 975 linear feet of 8-inch diameter gravity sewer pipeline connecting to the existing 12-inch diameter gravity sewer pipeline in Ave 54 extending north into project. EXHIBIT "F" TO SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AND IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT DESCRIPTION/DEPICTION OF IRRIGATION SYSTEM MODIFICATION FACILITIES AND DESCRIPTION OF ABANDONED IRRIGATION SYSTEM FACILITIES Developer is required to reimburse CVWD for the construction of an additional 2,750 linear feet of 24-inch diameter pipelines ("Pipeline") beginning at CVWD L- 4 Pump Station extending through interior streets of the development and connecting to lateral 120.8 at Avenue 52 west of Jefferson Street as shown an CVWD drawings 42554-42580. The Developer shall grant the USBRICVWD a thirty (32) foot easement for the two 24-inch diameter pipelines. ■ CVWD to abandon Lateral 120.8-0.3 along Avenue 52 between Adams Street 0.5 (one-half [112] mile east of Adams Street) and Jefferson Street once new Lateral is constructed_ City to reimburse CVWD for abandonment costs. • CVWD to abandon Lateral 120.8-0.3-0.5RT along Jefferson Street between Avenue 52 and Avenue 52.5 (one-fourth [114] mile south of Avenue 52) once new Lateral is constructed. City to reimburse CVWD for abandonment costs. • CVWD shall install and construct, at City's expense per Section 13, a dual reinforced concrete box culvert and a temporary by-pass channel per City's approved plans as shown on CVWD drawings 43568-43581. ■ In addition to the items outlined above, City to complete any items from Exhibit "C" of Agreement Regarding Real Property dated April 19, 2017 between CVWD and City, recorded in the Official Records of the County of Riverside as Document No. 2017-0218005 that have not already been completed. EXHIBIT "G" TO SPECIAL ❑OMESTIC WATER SYSTEM, SANITATION SYSTEM, AN❑ IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT BMPs Best Management Practices Apply frequent light rates ofN. 2. Use slow -release fertilizers. Avoid fertilizing during periods when turf grass is naturally slow growing, dormant or stressed. 4. Avoid fertilizing when rain is forecasted. 5. Conservatively irrigate greenbelt areas to save water and reduce leaching. Limit irrigation to the arnount necessary to replace moisture used by the plant. Irrigate according to ET an( soil infiltration rates. Maintain the highest possible irrigation distribution. Try not to have irrigation application rate exceed soil infiltration rate by using multiple, short run times. 6. Use less energy demanding plants where possible and reduce the scope of the "heavily managed" areas. 7. Reduce annual N application rates as much as possible. 8. Minimize the reduction of growth of base turf areas during preparations of overseeding. 9. Reduce the amount of area within greenbelt areas that is overseeded. 10. Install under -drain system to collect the leachate from areas of the greenbelt areas that may be susceptible to leaching. The leachate should be properly disposed of through irrigation via infiltration through a proper sail profile. 11. Develop collection ponds to collect surface runoff and if necessary, install impervious liners to prevent groundwater leaching. 12. Collect runoff from sensitive areas and pass it through grassed_ swales or vegetated buffer strips. 13. As a condition of service, the recommendations of Best Management Practices must be implemented unless the general manager — chief engineer finds it would be a hardship. 2 EXHIBIT "H" TO SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AND IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT INSURANCE EXHIBIT "H" INSURANCE REQUIREMENTS 1. MINIMUM SCOPE AND LIMIT OF COVERAGE. Prior to and at all times after executing the Agreement, Developer shall procure and maintain, at its sole cost, for the duration of Developer's construction obligations hereunder, not less than the following coverage and limits of insurance with insurers and under policy forms satisfactory to CVWD. (a) Commercial General Liability Insurance written an an occurrence basis of at least $2,000,000 per occurrencel$4,000,000 aggregate providing coverage for ongoing and products and completed operations, property damage, bodily injury, personal and advertising injury, property damage, and premises/operations liability. (i) Coverage for Commercial General Liability insurance shall be at least as broad as Insurance Services Office Commercial General Liability coverage form (Occurrence Form CG 00 01) or exact equivalent. (ii) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) productslcompleted operations liability; or (4) contain any other exclusion contrary to the Agreement. (iii) The policy shall be endorsed to name Coachella Valley Water District, its employees, directors, officers, and agents as additional insureds using ISO endorsement forms CG 20 10 07 04 and 20 37 07 04, or endorsements providing the exact same coverage. (b) Commercial Automobile Liability Insurance written on a per occurrence basis of at least $1,000,000 per occurrence for bodily injury and property damage. (i) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto) (ii) The policy shall be endorsed to name Coachella Valley Water District, its employees, directors, officers, and agents as additional insureds. (c) Workers' Compensation Insurance/Employers Liability as required by the State of California with statutory limits or be legally self -insured pursuant to Labor Code section 3700 et- seq. along with Employer's Liability limits of no less than $1,000,000 per occurrence for bodily injury or disease. The workers compensation insurer shall agree, using form WC 00 03 13 or the exact equivalent to waive all rights of subrogation against Coachella Valley Water District, its employees, directors, officers, and agents. 2 2. OTHER INSURANCE PROVISIONS. All of Developer's policies shall meet the following requirements and contain all specified provisions/endorsements noted hereunder. (a) Insurers shall provide CVWD at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that insurers shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. In the event any insurer issuing coverage hereunder does not agree to provide notice of cancellation to CVWD, Developer shall assume such obligation and provide written notice of cancellation in accordance with the above. If any of the required coverage is cancelled or expires during the term of this Agreement, Developer shall deliver renewal certificates) including endorsements to CVWD at least ten (10) days prior to the effective date of cancellation or expiration. (b) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Developer's policy is primary insurance and that any insurance, self-insurance or other coverage maintained by CVWD or any additional insureds shall not be called upon to contribute to any loss. (c) All required insurance coverages shall contain a provision, or be endorsed, to waive subrogation in favor of the Coachella Valley Water District, its employees, directors, officers, and agents or shall specifically allow Developer to waive its right of recovery prior to a loss. Developer hereby waives its own right of recovery against Coachella Valley Water District, its employees, directors, officers, and agents. (d) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, CVWD has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CVWD will be promptly reimbursed by Developer. In the alternative, CVWD may cancel this Agreement. (e) CVWD may require Developer to provide complete copies of all insurance policies and endorsements in effect for the duration of the Agreement. (f) Developer shall not allow any of its contractors, consultants, subcontractors or subconsultants to commence work under this Agreement until Developer has verified that contractors, subcontractors, consultants, or subconsultants have secured all insurance required herein, including waivers of subrogation and other endorsements. Policies of commercial general liability insurance provided by such contractors, consultants, subcontractors or subconsultants shall be endorsed to name Coachella Valley Water District, its employees, directors, officers, and agents as additional insureds using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Developer, CVWD may approve different scopes or minimum limits of insurance for particular contractors, consultants, subcontractors or subconsultants. 3 (g) The general liability program and automobile liability program may utilize either deductibles or provide coverage excess of a self -insured retention, subject to written approval by CVWD, and provided that such deductibles shall not apply to CVWD as an additional insured. (h) Claims made policies are not acceptable. 3. VERIFICATION OF COVERAGE. Prior to execution of the Agreement, Developer shall file with CVWD evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. All policies required shall be issued by acceptable insurance companies, as determined by CVWD. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. 4. LIABILITY NOT LIMITED. Defense costs shall be payable in addition to the limits set forth herein. Requirements of specific coverage or limits contained herein are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve Developer from liability in excess of such coverage, nor shall it limit Developer's indemnification obligations to CVVVD or City and shall not preclude CVWD or City from taking such other actions available to CVWD under other provisions of the Agreement or law. 5. AVAILABLE LIMITS. Notwithstanding the minimum limits set forth above, any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds. 6. RESERVATION OF RIGHTS. CVWD reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. S 4.14:1 <:11"m TO SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AN❑ IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT INDEMNITY ❑BLIGATIONS EXHIBIT "I" INDEMNITY OBLIGATIONS Developer shall assume the defense of, indemnify and hold harmless CVWD and its officers, directors, administrators, representatives, consultants, engineers, employees and agents, and their respective successors and assigns (collectively, "CVWD Indemnitees") and each and every one of them, from and against all actions, causes of action, damages, demands, liabilities, costs (including, but not limited to reasonable attorneys' fees), claims, losses and expenses of every type and description (collectively, "Costs") to which they may be subjected or put, by reason of, or resulting from: (A) Developer's performance under this Agreement: (B) the design, engineering and construction of the improvements by Developer- (C) the performance of or failure to perform, the work covered by this Agreement which is caused or occasioned by any act or neglect on the part of Developer or its Representatives (as defined below); (D) any death, injury, property damage, accident or casualty caused or claimed to be causes! by Developer or its Representatives or including Developer or its Representatives or its or their property; (E) any breach by Developer of its obligations under this Agreement; and (F) any enforcement against Developer by CVWD of any provision of this Agreement. The foregoing indemnity shall not apply to the extent any such Costs are ultimately established by a court of competent jurisdiction to have been caused by the gross negligence or willful misconduct of CVWD Indemnitees or any of them. CVWD shall make all decisions with respect to its representation in any legal proceeding concerning this Section. If Developer fails to do so, CVWD shall have the right, but not the obligation, to defend the same and charge all of the direct or incidental costs of such defense, including fees and costs, to Developer and to recover the same from Developer. The term "Representatives" shall mean employees, representatives, agents, contractors, subcontractors or any other persons directly or indirectly employed by any of the foregoing or reasonably under the control of any of the foregoing or for whose acts any of the foregoing may be liable. No provision of this Agreement shall in any way limit the extent of the responsibility of Developer for payment of damages resulting from its operations or the operations of any of its Representatives. Developer further covenants and agrees to pay, or reimburse CVWD Indemnitees, or any of them for any and all Costs in connection with the investigating, defending against or otherwise in connection with Developer's obligations pursuant to this Agreement, except liability arising through the gross negligence or willful misconduct of CVWD Indemnitees, or any of them. CVWD shall have the right, at Developer's expense, to commence, to appear in, or to defend any action or proceeding arising out of or in connection with this Agreement, and in connection therewith, may pay all necessary expenses if Developer fails upon reasonable notice to so commence, appear in or defend any action or proceeding with counsel reasonably acceptable to CVWD, Developer shall be furnished with copies of bills relating to the forgoing upon request. (continued on next pagel 2 EXHIBIT "I" INDEMNITY OBLIGATIONS (continued) Developer shall assume the defense of, indemnify and hold harmless City and its officers, directors, administrators, representatives, consultants, engineers, employees and agents, and their respective successors and assigns (collectively, "City Indemnitees") and each and every one of them, from and against all actions, causes of action, damages, demands, liabilities, costs (including, but not limited to reasonable attorneys' fees), claims, losses and expenses of every type and description (collectively, "Costs") to which they may be subjected or put, by reason of, or resulting from: (A) Developer's performance under this Agreement: (B) the design, engineering and construction of the improvements by Developer- (C) the performance of or failure to perform, the work covered by this Agreement which is caused or occasioned by any act or neglect on the part of Developer or its Representatives (as defined below); (D) any death, injury, property damage, accident or casualty caused or claimed to be caused by Developer or its Representatives or including Developer or its Representatives or its or their property; (E) any breach by Developer of its obligations under this Agreement; and (F) any enforcement against Developer by City of any provision of this Agreement. The foregoing indemnity shall not apply to the extent any such Costs are ultimately established by a court of competent jurisdiction to have been caused by the gross negligence or willful misconduct of City Indemnitees or any of them. City shall make all decisions with respect to its representation in any legal proceeding concerning this Section. If Developer fails to do so, City shall have the right, but not the obligation, to defend the same and charge all of the direct or incidental costs of such defense, including fees and costs, to Developer and to recover the same from Developer. The term "Representatives" shall mean employees, representatives, agents, contractors, subcontractors or any other persons directly or indirectly employed by any of the foregoing or reasonably under the control of any of the foregoing or for whose acts any of the foregoing may be liable. No provision of this Agreement shall in any way limit the extent of the responsibility of Developer for payment of damages resulting from its operations or the operations of any of its Representatives. Developer further covenants and agrees to pay, or reimburse City Indemnitees, or any of them for any and all Costs in connection with the investigating, defending against or otherwise in connection with Developer's obligations pursuant to this Agreement, except liability arising through the gross negligence or willful misconduct of City Indemnitees, or any of them. City shall have the right, at Developer's expense, to commence, to appear in, or to defend any action or proceeding arising out of or in connection with this Agreement, and in connection therewith, may pay all necessary expenses if Developer fails upon reasonable notice to so commence, appear in OF defend any action or proceeding with counsel reasonably acceptable to City, Developer shall be furnished with copies of bills relating to the forgoing upon request. W ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA 190111011 WAG79 On personally appeared before me, (insert name and title of officer) proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: (Seal) EXHIBIT "J" RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: c/o The Robert Green Company 3551 Fortuna Ranch Road Encinitas, CA 92024 LLC This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383 RELEASE OF CONSTRUCTION COVENANTS THIS RELEASE OF CONSTRUCTION COVENANTS (the "Release") is made by COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California ("CVWD"), in favor of , LLC, a Delaware limited liability company (the "Developer"), as of RECITALS A. CVWD and Developer have entered into that certain Special Domestic Water System, Sanitation Systems, and Irrigation System Modification Installation Agreement (the ",Agreement") dated concerning certain water system, sanitation system and irrigation system work and improvements serving certain real property situated in the City of La Quinta, California, a portion of which is more fully described in Exhibit "A" attached hereto and made a part hereof (the "Pro a "). Terms not otherwise defined herein have the meaning given in the Agreement. B. As referenced in Section 14(d) of the Agreement, CV WD is required to furnish Developer or its successors with a Release of Construction Covenants upon CVWD's acceptance of Select as appropriate: [a particular construction phase of] the Domestic Water System/Sanitation System/Irrigation System Modification], which release is required to be in such form as to permit it to be recorded in the Recorder's office of Riverside County. With respect to the improvements described below, except for the Warranty (as defined below) with respect to such improvements, this Release is conclusive determination of satisfactory completion of the construction and development of the below described improvements required by the Agreement. C. CV WD has conclusively determined that the conditions to a Release with respect to the below described Improvements has been satisfactorily completed. 4940-9556-9515.1 NOW, THEREFORE, CVWD hereby certifies as follows: 1. The [Domestic Water System/Sanitation System/irrigation System Modification] [or if phased: the portion of the Domestic Water System/Sanitation System/Irrigation System Modification described as and located on the portion of the Property described in Exhibit "B" attached hereto] to be constructed by Developer has been fully and satisfactorily completed in conformance with the Agreement and accepted by CVWD; however, the warranty of Developer under the Agreement that such improvements will be free of construction defects for eighteen (1 S) months from the date of such acceptance (the "Warran ") remains in effect and is not released or waived by this Release. Said improvements were accepted by CVWD on . As such, except the Warranty, the terms of the Agreement in Sections 1 through 10 of the Agreement applicable to Developer's obligations with respect to the [Domestic Water System/Sanitation System/Irrigation System Modification] (or if phased: the portion of the Domestic Water System/Sanitation System/Irrigation System Modification described as and located on the portion of the Property described in Exhibit "B" attached hereto] shall be of no further force or effect. Upon recordation of a Release with respect to each of the Domestic Water System, Sanitation System and the Irrigation System Modification, except the Warranty applicable thereto, Developer's obligations under Sections 1 through 10 of the Agreement with respect to each of the Domestic Water System, Sanitation System and the Irrigation System Modification shall be of no further force or effect and only the terms of Sections 11 through 15 of the Agreement and the Warranty shall remain effective. 2. This Release does not constitute evidence of compliance with or satisfaction of any obligation of Developer to any holder of a mortgage or any insurer of a mortgage security money loaned to finance the work of construction if improvements and development of the Property, or any part hereof. 3. This Release of Construction Covenants is not a notice of completion as referred to in Section 3093 of the California Civil Code. 4. Nothing contained in this instrument shall modify in any other way any other provisions of the Agreement. IN WITNESS WHEREOF, CVWD has executed this Release as of the date set forth above. CVWD: COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California Dated: J.M. Barrett General Manager -2- 4840-9556-9515.I ATTEST: Sylvia Bermudez Clerk of the Board -3- 4840-9556.9515.1 STATE OF CALIFORNIA COUNTY OF RIVERSIDE On , , before me, (insert name and title of the officer) Personally appeared who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my had and official seal. Signature STATE OF CALIFORNIA COUNTY OF RIVERSIDE On , before me, (Seal) (insert name and title of the officer) Personally appeared who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my had and official seal. Signature (Seal) -4- 4840-9555-9515A STATE OF CALIFORNIA COUNTY OF RIVERSIDE On , , before me, (insert name and title of the officer) Personally appeared who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my had and official seal. Signature (Seal) -5- 484fl-955G-9515.1 Exhibit "A" To Release of Construction Covenants LEGAL DESCRIPTION OF PROPERTY [TO BE ATTACHED] Exhibit "A" -1- rI:rIlOSSUszi9Mi Exhibit "B" To Release of Construction Covenants LEGAL DESCRIPTION OF PORTION OF PROPERTY {Containing Phase T of the [Domestic Water System/Sanitation System/ Irrigation System Modification] [TO BE ATTACHED] EXHIBIT 111co PHASING I uj J 4 U V7 z)n« i I QF 1 ® PHASE 1 PHASE 2 Michael Baker ® PHASE 3 CENTERLINEOTLI;+ I INTERNATIONAL 75410 Gerald Ford Drive, Suite 100 Palm Desert, CA 92211 LOCATED IN POR . OF SEC. S , T . 6S . , ME, 7E . , S.B.M. phone; 760-346-7481 www.mbakerintl.com APPENDIX A TO SPECIAL DOMESTIC WATER SYSTEM, SANITATION SYSTEM, AND IRRIGATION SYSTEM MODIFICATION INSTALLATION AGREEMENT SCHEDULE APPENDIX A SCHEDULE Construction and/or design of the facility N described herein must be No. Facilities Item completed before 0 domestic water service is initiated to the following `m portions within the Of Pro ect 1 1(one) Pressure Reducing 2(c)(iii) X Unit 1 of Phase 11 or III Valve Station 1 (one) Booster 2(c}(��} 2. Station/Pressure Reducing X Unit 1 of Phase 11 or III Valve Station Install an 18-inch diameter pipeline along SilverRock Way connecting to the existing 18-inch diameter ductile iron pipe approximately 1,000 feet south of Avenue 52 and the 3' existing 18-inch diameter 2(c)[iii) x Unit 1 of Phase l ductile iron pipe in Hideaway (iv) Club Drive at Jefferson street (Lower La Quinta Pressure Zone) Install 36-inch diameter steel sleeve for the 18-inch diameter water pipeline under Coachella Canal crossing at SilverRock Way. Install an 8-inch diameter pipeline connecting to the existing 18-inch diameter 4 ductile iron pipe in Jefferson 2(c)(iii) X Unit 1 of Phase I Street approximately 353 feet (iv) south of Rosewood Lane (Lower La Quinta Pressure Zone Install an 18-inch diameter pipeline (Lower La Quinta 2i)(iv} 5' Pressure Zone} connecting to (iii}(iv) ]C Unit 1 of Phase I{ or III the proposed 18-inch (v} diameter pipeline in SilverRock Way and the Construction and/or design of the facility a) described herein must be No. Facilities Item m cn completed before 0 -� im domestic water service is a N en initiated to the following a 7 portions within the Project existing 24-inch diameter ductile iron pipe in Avenue 54 approximately 2,300 feet west of Jefferson Street (Lake Cahuilla Pressure Zone). Install an 8-inch diameter pipeline connecting to the proposed 18-inch diameter pipeline in SilverRock Way (Lower La Quinta Pressure 2(C)(IEI) 6. Zone) to the existing 12-inch (iv) }C Unit 1 of Phase 11 or III diameter ductile pipe in Jefferson Street, approximately 200 feet north of Avenue 54 (Lake Cahuilla Pressure Zone Install 2,950 linear feet of 24- inch diameter gravity sewer i pipeline connecting to the existing 27-inch diameter gravity sewer pipeline located at Jefferson Street and Hideaway Club Drive and will 3(c}(ii} 7. extend northwest crossing X Unit 1 of Phase under the Coachella Canal along SilverRock Way. Install 48-inch diameter steel sleeve for the 24-inch gravity sewer pipeline under Coachella Canal crossing at SilverRock Way. Install 2,010 linear feet of 10- inch diameter gravity sewer pipeline connecting to the i} 8. proposed 24-inch gravity iii} Unit 1 of Phase I sewer pipeline in SilverRock (iii) Way extending north along SilverRock Way. Construction and/or design of the facility N described herein must be No. Facilities Item U) completed before Q domestic water service is N initiated to the following m portions within the Project Install approximately 946 linear feet of 24--inch diameter gravity sewer pipeline connecting to the existing 24- inch diameter gravity sewer 9- pipeline on Ave 52 3(c)(ii) X Unit 1 of Phase approximately one -eighth of (iii) mile west of Jefferson Street and connect to the proposed 24-inch diameter gravity sewer pipeline in SilverRock Way Upon completion of the gravity sewer pipelines listed in Facility Items 7,8, and 9 above shall abandon at Developer's sole cost and expense, the remaining surface appurtenances (after CVWD has removed the i} 10. reusable items} at the sewer iii} X Unit 1 of Phase I lift station located on Avenue (iji) 52, approximately 1,800 feet west of Jefferson Street and abandon in place the existing 14-inch diameter sewer force main along Avenue 52 from the sewer lift station to Jefferson Street. Install approximately 975 linear feet of 8-inch diameter gravity sewer pipeline i} 11. connecting to the existing 12- iii} X Unit 1 of Phase I inch diameter gravity sewer (iii) pipeline in Ave 54 extending north into project. Developer is required to 12 reimburse CVWD for the 4(c) X Unit 1 of Phase 1 additional 2,750 linear feet of ; 24-inch diameter pipelines Construction and/or design of the facility a� described herein must be No. Facilities item u, completed before domestic water service is a m initiated to the following Cr W portions within the 12� Q� ❑ Project ("Pipeline") as more particularly described therein. The Developer shall grant the USBRICVWD a thirty (32) foot easement for the two 24- inch diameter pipelines. CVWD to Abandon Lateral 120.8-0.3 along Avenue 52 13 between Adams Street 0.5 13(e) X Unit 1 of Phase I ' (one-half [112] mile east of Adams Street) and Jefferson Street at Cit 's expense. CVWD to Abandon Lateral 120.8-0.3-0.5RT along Jefferson Street between 14. Avenue 52 and Avenue 52.5 13(f) X Unit 1 of Phase I (one-fourth [114] mile south of i Avenue 52) at City's ex ense. Abandon Lateral 120.5 along Adams Street 0.75 (three- quarter [3/4] mile east of 15. Adams Street) between 4(c) X Complete Avenue 52.25 (one-fourth [114] mile south of Avenue 52) and Avenue 53. Abandon Lateral 121.3 along Avenue 53.5 (one-fourth [114] mile south of Avenue 53) 16 between Adams Street 0.50 4(c) X Complete (one-half [1/2] mile east of Adams Street) and Adams Street 0.75 (three -fourth [3/4] mile east of Adams Street). CVWD to install and construct a dual reinforced 17. concrete box culvert and a 13(g) X Unit 1 of Phase l temporary by-pass canal per Cit 's approved plans as Construction and/or design of the facility described herein must be No. Facilities Item rn completed before domestic is -a 0 water service °' �N—, initiated to the following Cr (D portions within the Of tf- 0 Project shown on CVWD drawings 43568-43581 at City's expense P