2006 - 32879 Griffin Ranch LLC & McComic-Griffin, LLC SIA Off- & On-SiteCITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 32879
OFF -SITE IMPROVEMENTS
THIS SU$DIVISION IMPROVEMENT AGREEMENT (the "A reement") is made and entered into this
{-('t day of t"L 20
f. by and between GRIFFIN RANCH and MCCOMIC-G IFFIN, both California Limited
Liability Companies hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal
corporation of the State of California, hereinafter referred to as "City."
RECITALS:
A. Subdivider has prepared and filed a final map or Tract map (the "Map") of a unit of land in the City of
La Quinta, County of Riverside, which unit of land is known as Tract No. 32879 (the "Tract") pursuant
to the provisions of Section 66410, et sec. of the California Government Code (the "Subdivision Map
Act").
B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and
private improvements (the "Improvements").
C. The Improvements have not been installed and accepted at this time.
D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the
Improvements as provided in Section 66462 of the Subdivision Map Act.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall
furnish original improvement plans meeting the requirements of the City Engineer.
2. Improvements. Subdivider shall construct the public and private street, drainage, utility, landscaping,
and other improvements required to be constructed or agreed to be constructed under this
Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards,
specifications, sequence, and scheduling of construction shall be as approved by the City Engineer.
3. Improvement Security.
A. One class of security to be provided by Subdivider, hereinafter referred to as "performance
security," shall assure the faithful performance of this Agreement including construction of the
Improvements, payment of Subdivider's fair share of Improvements which have been or will be
constructed by others ("Participatory Improvements"), and payment of plan check and permit
fees. A second class of security to be provided by Subdivider, hereinafter referred to as
"payment security," shall assure the payment of the cost of labor, equipment and materials
supplied to construct the Improvements. A third class of security to be provided by Subdivider,
hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the
Improvements for a period of one year following the completion and acceptance of the
Improvements. Subdivider shall furnish performance and payment security prior to and as a
condition of City Council approval of the Map. Subdivider shall provide warranty security after
Improvements are complete and accepted by the City Council and prior to or concurrently with
the final release of performance security. Warranty security shall not be required for
Monumentation or Participatory Improvements. However, the City may utilize Monumentation
Security for performance of or payment for the work in accordance with the Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty security, and in addition to the face amount of each such security, each such security
shall include and assure the payment of costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby
secured.
GARLESTROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\OFFSITE SIA GRR_MCG.doc 1 of 8
B. Improvement security shall conform with Section 66499 of the California Government Code and
one or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government
Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570
(latest version).
3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or
better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange
(of the Los Angeles County Treasurer's office).
4) Irrevocable letters of credit, issued by one or more financial institutions meeting the
requirements of Paragraph (3), pledging that the funds necessary to carry out the completion
of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund
which is not subject to levy or attachment by any creditor of the depositor until released by
City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to
the letters of credit will be paid upon the written demand of City and that such written demand
need not present documentation of any type as a condition of payment, including proof of
loss. The duration of any such letter of credit shall be for a period of not less than one year
from the execution of the agreement with which it is provided and shall state, on its face, that
the letter of credit will be automatically renewed until such time that City authorizes its
expiration or until sixty (60) days after City receives notice from the financial institution of
intent to allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the
final map or Tract map for which the Improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the Improvements and shall include
the power of sale of the real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and appurtenances thereunto
belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and
profits thereof. The collateral value of the property shall be established at Subdivider's
expense through an appraisal approved by City.
6) An instrument of credit from an agency of the state, federal or local government, when any
agency of the state, federal, or local government provides at least Twenty Percent (20%) of
the financing for the Improvements.
7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in
Section 16430 of the California Government Code, deposited, at City's option, with City or a
responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal One Hundred Percent (100%) of the estimated cost of
constructing the Improvements, including payment of plan check and permit fees, as estimated by
the City Engineer or a duly authorized representative of the City Engineer. The amount of
Payment security shall equal the amount of the amount of performance security, except as
otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security
shall equal Ten Percent (10%) of the amount of performance security except as otherwise set
forth in Exhibit A.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to
the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract
map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid
separately for each different form and/or source (surety or financial institution) of security initially
submitted and for substitution of securities but shall not be required for submittal of warranty
GARLESTROJECTS\GRIFFIN RANCHTROJECT MANAGEMENT\Bonds\Improvement Bonds\OFFSITE SIA GRR_MCG.doc 2 of 8
security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as follows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.B., which require the establishment of evidence of the reliability of the
surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars
($150.00).
2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will
prepare lien agreements and subordination agreements, administer valuation of the real
property and administer the agreements over the life of the lien, all of which require legal
assistance and financial advice, Subdivider shall pay to City an administration fee of One Half
of One Percent (0.5%) of the estimated cost of the improvements secured but not less than
Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory
Improvements shall remain in place until the Participatory Improvements are constructed and
actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost
of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of
Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty
security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in
replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit
said cash within 30 days of the date of the written demand from City, City may present a written
demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City
the lesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or become wholly or partially invalid for any reason,
including non-payment of premiums, modifications of this Agreement and/or expiration of the time
for performance stated in this Agreement, without express authorization from City unless the
surety provides City with sixty (60) days written notice by registered or certified mail, return
receipt requested.
G. Security shall be released in the following manner:
1) Performance security shall be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of paragraph B.
2) The City Engineer may authorize partial reduction of performance security as work
progresses, upon application by Subdivider. However, no such reduction shall be for an
amount less than Ten Percent (10%) of the total performance security provided for the faithful
performance of the act or work. In no event shall security be reduced below that required to
guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%).
The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) Participatory Improvement security shall be released upon payment by Subdivider of
Subdivider's share of the cost or estimated cost of the Participatory Improvements.
4) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the
Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision
Map Act shall apply.
5) Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Tract Improvements. However, if at the end
of the one-year warranty period, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the warranty, warranty
GARLES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\OFFSITE SIA GRR_MCG.doc 3 of 8
security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer.
4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits
required for that phase of work and pay all required fees. Work performed under a permit or permits
shall comply with all provisions of the required permits.
5. Off -site Improvements. When the construction of one or more of the Improvements requires or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its
best efforts purchase such real property at a reasonable price. In the event that Subdivider is
unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider
may request in writing that City attempt to acquire such real property. City may, but is not required to,
agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and
Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said
separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%)
of the appraised fair market value of the real property. Any unexpended portion of said advance shall
be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be
paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall
the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate
Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the
Conditions of Approval.
6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety
(90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later date, as determined by the
City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of
the Improvements within the specified time periods shall constitute cause for City, in its sole
discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise
improvement security requirements as necessary to ensure completion of the improvements, and/or
to require modifications in the standards or sequencing of the Improvements in response to changes
in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdivider's obligations hereunder.
7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to
strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected
by such events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of
time for completion of the Improvements. The City Council, in its sole and absolute discretion, may
approve or deny the request or conditionally approve the extension with additions or revisions to the
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance
to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the
securities shall be sufficient to ensure the performance of and payment for Improvements that remain
incomplete at the time of the extension, and to provide warranty security on completed
Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that
the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor
setting the monuments, and intersection monument tie -outs for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall
be accompanied by any required certifications from Subdivider's engineers or surveyors, approval
letters from other agencies having jurisdiction over and approval authority for improvements required
by this Agreement or the Conditions of Approval, and any required construction quality documentation
not previously submitted.
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\OFFSITE SIA GRR_MCG.doc 4 of 8
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the
required documentation and will inspect the Improvements. If the Improvements are determined to
be in accordance with applicable City standards and specifications, and as provided herein,
obligations required by the Conditions of Approval and this Agreement have been satisfied, and
Subdivider has provided revised plans as required in Paragraph 11, hereinafter, the City Engineer
shall recommend acceptance of the Improvements by the City Council.
11. Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the
plans depict the actual Improvements constructed. When necessary revisions have been made, each
separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or
"Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the
improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to
the City Engineer.
12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one
(1) year, beginning on the date of final acceptance of the Improvements by the City Council, against
any defective work or labor done, or defective materials furnished, and shall repair or replace such
defective work or materials.
13. Release of Security. City shall retain and release securities in accordance with the provisions of
Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require
Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may
affect the amount of payment security released.
14. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not
been performed within sixty (60) days after written notice of default from City, then City may perform
the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of
suit and reasonable attorney's fees incurred by City in enforcing such obligation. In cases of
emergency or compelling public interest, as determined by the City Engineer, the requirement for
written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other
provisions of this Article shall remain in effect.
15. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives,
executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold
City and its officers, employees, agents, representatives, and assigns harmless from and against any
losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in
any way connected with Subdivider's performance herein under, including costs of suit and
reasonable attorneys' fees.
16. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Conditions of Approval. In the event that any requirement or condition of this
Agreement is inconsistent with or fails to include one or more provisions of the Conditions of
Approval, which document(s) is (are) incorporated herein by reference, the provisions in the
Conditions of Approval shall remain in effect and shall control.
17. Severability. In the event that any provision or provisions of this Agreement are held unenforceable,
all provisions not so held shall remain in full force and effect.
18. General Provisions.
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent
by registered or certified mail, return receipt requested, to the parties at their respective
addresses indicated hereon. Notices personally delivered shall be effective upon delivery.
Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of
delivery or refusal indicated on the return receipt. Either party may change its address for notices
hereunder by notice to the other given in the manner provided in this subparagraph.
B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns, and successors of the parties hereto.
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\OFFSITE SIA GRR_MCG.doc 5 of 8
C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
D. This Agreement shall be governed by and interpreted with respect to the laws of the State of
California.
E. In the event of any dispute between the parties with respect to this Agreement, the prevailing
party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing
party.
F. Any failure or delay by either party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760/777-7075
Thomas P. Genovese, City Manager
ATTEST:
City Cle
Date
Developer Address
Griffin Ranch, LLC and McComic-Griffin, LLC
9968 Hib" rt St, Ste 102
San Di , CA 92131
( to J m Wait, C.O.O./Treasurer)
Y
Title: R. GeoffcComic, Ss retary, Trans West Housing Inc., Manager
By:
Title: James Wait, Treasurer, Trans West Housing, Inc., Manager
1 is E
Date
4i U,.�,��
ate
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\OFFSITE SIA GRR_MCG.doc 6 of 8
Developer Address
McComic-Griffin, LLC
9968 Hibert St, Ste 102
San Diego, CA 92131
(Atten R. Geoffre McComic, V.P. / Secretary)
v
Date
Title: R. Geoffrey McCoryl'ic, S
By:
, Trans West Housing, Inc., Manager
Date
Title: James Wait, Treasurer, Trans West Housing, Inc., Manager
Reviewed and Approved:
OA
ity E ineerT Date
Approved as to orm:
it A orn Date
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\OFFSITE SIA GRR_MCG.doc 7 of 8
Exhibit A
OFF -SITE SECURITY - TRACT MAP NO. 32879
Improvements designated as "Participatory" have been or will be constructed by others. Security for
Participatory Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or
released as specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total
performance security for the tract and shall not reduce total performance security below the amount
necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases
of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer.
Requests for partial releases, setting forth in detail the amount of work completed and the value thereof,
shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required tract improvements are
complete and accepted by the City Council.
Improvement Description Performance Labor & Materials
Ave 54 & Madison Street
$
1,122,689
$
1,122,689
Storm Drain
$
167,040
$
167,040
Signing and Striping
$
120,133
$
120,133
Totals
$
1,409,862
$
1,409,862
Standard 10% Contingency
$
140,986
$
140,986
Total Construction Cost
$
1,550,848
$
1,550,848
Professional Fees, Design 5%
$
77,542
$
77,542
Professional Fees, Const 10%
$
155,085
$
155,085
Bond Amount
$
1,783,475
$
1,783,475
Equestrian Trait
$
121,000
$
121,000
Totals
$
121,000
$
121,000
Standard 10% Contingency
$
12,100
$
12,100
Total Construction Cost
$
133,100
$
133,100
Professional Fees, Design 5%
$
6,655
$
6,655
Professional Fees, Const 10%
$
13,310
$
13,310
Bond Amount
$
153,065
$
153,065
Domestic Water
$
380,008
$
380,008
Sanitary Sewer
$
156,773
$
156,773
Totals
$
536,781
$
536,781
Standard 10% Contingency
$
53,678
$
53,678
Total Construction Cost
$
590,459
$
590,459
Professional Fees, Design 5%
$
29,523
$
29,523
Professional Fees, Const 10%
$
59,046
$
59,046
Bond Amount
$
679,028
$
679,028
GAFILES\PROJECTS\GRIFFIN RANCHTROJECT MANAGEMENT\Bonds\Improvement Bonds\OFFSITE SIA GRR_MCG.doc 8 of 8
State of California
County of San Diego
On January 16, 2006 before me, Jenna B. McFarland, Notary Public, personally appeared
James Wait, personally known to me to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person, or the entity upon behalf
of which the person acted, executed the instrument.
WITNESS my hand and official seal.
Signature _6;;,; �,r . �� �,r�i l ( Seal
ANNA B. MCFARLAND
Commission # 1532265
qbMy
Notary Public - California
San Diego County
Comm. Expires Dec 5, 2008
State of California
County of San Diego
On January 16, 2006 before me, Jenna B. McFarland, Notary Public, personally appeared
James Wait, personally known to me to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person, or the entity upon behalf
of which the person acted, executed the instrument.
WITNESS my hand and official seal.
Signature
ANNA B. MCFARIAND
Commission # 1532265
Notary Public - California
San Diego County
IAIMY
Comm. Expires Dec 5, 2008
State of California
County of San Diego
On January 16, 2006 before me, Jenna B. McFarland, Notary Public, personally appeared
R. Geoffrey McComic, personally known to me to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person, or the entity
upon behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
t� w.., ANNA 8. MCFARLANp
Commission # 1532265
"�' Notary
• Public -California
r ; ,� San Diego County
Signature �' �`'�/��" 'l L't(Seal)MY Comm. Ex it
gP es Dec 5. 2008
State of California
County of San Diego
On January 16, 2006 before me, Jenna B. McFarland, Notary Public, personally appeared
R. Geoffrey McComic, personally known to me to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person, or the entity
upon behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal. JENNA B. MCFARIAND
L
Commission # 1532265
Notary Public - California
San Diego County
MyComm. Expires Dec 5, 2008
Signature /f�! r`.%�� �� (Seal)
�c r b i --
CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 32879
ON -SITE IMPROVEMENTS
THIS SUBDIVI I?N IMPROVEMENT AGREEMENT (the "A reement") is made and entered into this
UJ day of Ln L(& a 20
by and between GRIFFIN RANCH and MCCOMIC-GRI FIN, both California Limited
Liability Companies hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal
corporation of the State of California, hereinafter referred to as "City."
RECITALS:
A. Subdivider has prepared and filed a final map or Tract map (the "Map") of a unit of land in the City of
La Quinta, County of Riverside, which unit of land is known as Tract No. 32879 (the "TRACT")
pursuant to the provisions of Section 66410, et sec. of the California Government Code (the
"Subdivision Map Act").
B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and
private improvements (the "Improvements").
C. The Improvements have not been installed and accepted at this time.
D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the
Improvements as provided in Section 66462 of the Subdivision Map Act.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall
furnish original improvement plans meeting the requirements of the City Engineer.
2. Improvements. Subdivider shall construct the public and private street, drainage, utility, landscaping,
and other improvements required to be constructed or agreed to be constructed under this
Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards,
specifications, sequence, and scheduling of construction shall be as approved by the City Engineer.
3. Improvement Security.
A. One class of security to be provided by Subdivider, hereinafter referred to as "performance
security," shall assure the faithful performance of this Agreement including construction of the
Improvements, payment of Subdivider's fair share of Improvements which have been or will be
constructed by others ("Participatory Improvements"), and payment of plan check and permit
fees. A second class of security to be provided by Subdivider, hereinafter referred to as
"payment security," shall assure the payment of the cost of labor, equipment and materials
supplied to construct the Improvements. A third class of security to be provided by Subdivider,
hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the
Improvements for a period of one year following the completion and acceptance of the
Improvements. Subdivider shall furnish performance and payment security prior to and as a
condition of City Council approval of the Map. Subdivider shall provide warranty security after
Improvements are complete and accepted by the City Council and prior to or concurrently with
the final release of performance security. Warranty security shall not be required for
Monumentation or Participatory Improvements. However, the City may utilize Monumentation
Security for performance of or payment for the work in accordance with the Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty security, and in addition to the face amount of each such security, each such security
shall include and assure the payment of costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby
secured.
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 1 of 9
B. Improvement security shall conform with Section 66499 of the California Government Code and
one or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government
Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570
(latest version).
3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or
better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange
(of the Los Angeles County Treasurer's office).
4) Irrevocable letters of credit, issued by one or more financial institutions meeting the
requirements of Paragraph (3), pledging that the funds necessary to carry out the completion
of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund
which is not subject to levy or attachment by any creditor of the depositor until released by
City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to
the letters of credit will be paid upon the written demand of City and that such written demand
need not present documentation of any type as a condition of payment, including proof of
loss. The duration of any such letter of credit shall be for a period of not less than one year
from the execution of the agreement with which it is provided and shall state, on its face, that
the letter of credit will be automatically renewed until such time that City authorizes its
expiration or until sixty (60) days after City receives notice from the financial institution of
intent to allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the
final map or TRACT map for which the Improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the Improvements and shall include
the power of sale of the real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and appurtenances thereunto
belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and
profits thereof. The collateral value of the property shall be established at Subdivider's
expense through an appraisal approved by City.
6) An instrument of credit from an agency of the state, federal or local government, when any
agency of the state, federal, or local government provides at least Twenty Percent (20%) of
the financing for the Improvements.
7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in
Section 16430 of the California Government Code, deposited, at City's option, with City or a
responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal One Hundred Percent (100%) of the estimated cost of
constructing the Improvements, including payment of plan check and permit fees, as estimated by
the City Engineer or a duly authorized representative of the City Engineer. The amount of
Payment security shall equal the amount of the amount of performance security, except as
otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security
shall equal Ten Percent (10%) of the amount of performance security except as otherwise set
forth in Exhibit A.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to
the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract
map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid
separately for each different form and/or source (surety or financial institution) of security initially
submitted and for substitution of securities but shall not be required for submittal of warranty
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 2 of 9
security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as follows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.B., which require the establishment of evidence of the reliability of the
surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars
($150.00).
2) For liens on real property as described in Paragraph 5) of SECTION 3.6., for which City will
prepare lien agreements and subordination agreements, administer valuation of the real
property and administer the agreements over the life of the lien, all of which require legal
assistance and financial advice, Subdivider shall pay to City an administration fee of One Half
of One Percent (0.5%) of the estimated cost of the improvements secured but not less than
Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory
Improvements shall remain in place until the Participatory Improvements are constructed and
actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost
of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of
Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty
security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in
replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit
said cash within 30 days of the date of the written demand from City, City may present a written
demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City
the lesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or become wholly or partially invalid for any reason,
including non-payment of premiums, modifications of this Agreement and/or expiration of the time
for performance stated in this Agreement, without express authorization from City unless the
surety provides City with sixty (60) days written notice by registered or certified mail, return
receipt requested.
G. Security shall be released in the following manner:
1) Performance security shall be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of paragraph B.
2) The City Engineer may authorize partial reduction of performance security as work
progresses, upon application by Subdivider. However, no such reduction shall be for an
amount less than Ten Percent (10%) of the total performance security provided for the faithful
performance of the act or work. In no event shall security be reduced below that required to
guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%).
The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) Participatory Improvement security shall be released upon payment by Subdivider of
Subdivider's share of the cost or estimated cost of the Participatory Improvements.
4) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the
Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision
Map Act shall apply.
5) Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Improvements. However, if at the end of the
one-year warranty period, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the warranty, warranty
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 3 of 9
security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer.
4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits
required for that phase of work and pay all required fees. Work performed under a permit or permits
shall comply with all provisions of the required permits.
5. Off -site Improvements. When the construction of one or more of the Improvements requires or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its
best efforts purchase such real property at a reasonable price. In the event that Subdivider is
unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider
may request in writing that City attempt to acquire such real property. City may, but is not required to,
agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and
Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said
separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%)
of the appraised fair market value of the real property. Any unexpended portion of said advance shall
be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be
paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall
the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate
Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the
Conditions of Approval.
6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety
(90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later date, as determined by the
City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of
the Improvements within the specified time periods shall constitute cause for City, in its sole
discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise
improvement security requirements as necessary to ensure completion of the improvements, and/or
to require modifications in the standards or sequencing of the Improvements in response to changes
in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdivider's obligations hereunder.
7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to
strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected
by such events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of
time for completion of the Improvements. The City Council, in its sole and absolute discretion, may
approve or deny the request or conditionally approve the extension with additions or revisions to the
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance
to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the
securities shall be sufficient to ensure the performance of and payment for Improvements that remain
incomplete at the time of the extension, and to provide warranty security on completed
Improvements.
9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that
the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor
setting the monuments, and intersection monument tie -outs for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall
be accompanied by any required certifications from Subdivider's engineers or surveyors, approval
letters from other agencies having jurisdiction over and approval authority for improvements required
by this Agreement or the Conditions of Approval, and any required construction quality documentation
not previously submitted.
GARLESTROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 4 of 9
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the
required documentation and will inspect the Improvements. If the Improvements are determined to
be in accordance with applicable City standards and specifications, and as provided herein,
obligations required by the Conditions of Approval and this Agreement have been satisfied, and
Subdivider has provided revised plans as required in Paragraph 11, hereinafter, the City Engineer
shall recommend acceptance of the Improvements by the City Council.
11. Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the
plans depict the actual Improvements constructed. When necessary revisions have been made, each
separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or
"Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the
improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to
the City Engineer.
12. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one
(1) year, beginning on the date of final acceptance of the Improvements by the City Council, against
any defective work or labor done, or defective materials furnished, and shall repair or replace such
defective work or materials.
13. Release of Security. City shall retain and release securities in accordance with the provisions of
Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require
Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may
affect the amount of payment security released.
14. City Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not
been performed within sixty (60) days after written notice of default from City, then City may perform
the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of
suit and reasonable attorney's fees incurred by City in enforcing such obligation. In cases of
emergency or compelling public interest, as determined by the City Engineer, the requirement for
written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other
provisions of this Article shall remain in effect.
15. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives,
executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold
City and its officers, employees, agents, representatives, and assigns harmless from and against any
losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in
any way connected with Subdivider's performance herein under, including costs of suit and
reasonable attorneys' fees.
16. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Conditions of Approval. In the event that any requirement or condition of this
Agreement is inconsistent with or fails to include one or more provisions of the Conditions of
Approval, which document(s) is (are) incorporated herein by reference, the provisions in the
Conditions of Approval shall remain in effect and shall control.
17. Severability. In the event that any provision or provisions of this Agreement are held unenforceable,
all provisions not so held shall remain in full force and effect.
18. General Provisions.
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent
by registered or certified mail, return receipt requested, to the parties at their respective
addresses indicated hereon. Notices personally delivered shall be effective upon delivery.
Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of
delivery or refusal indicated on the return receipt. Either party may change its address for notices
hereunder by notice to the other given in the manner provided in this subparagraph.
B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns, and successors of the parties hereto.
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 5 of 9
C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
D. This Agreement shall be governed by and interpreted with respect to the laws of the State of
California.
E. In the event of any dispute between the parties with respect to this Agreement, the prevailing
party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing
party.
F. Any failure or delay by either party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
��. 760/777-7075
/aoo
Thomas P. Genovese, City Manager Dale
ATTEST:
Developer Address
Griffin Ranch, LLC
9968 Hibert St, Ste 102
San Diego, CA 92,131
(Atten: Jame�at,,�.0.0. /Treasurer)
' Date
Title: R. Geoffrey... omic, Secretary, Trans West Housing, Inc., Manager
4
BXI-,
Y�
01 Date
Title: James Wait, Treasurer, Trans West Housing, Inc., Manager
GARLESTROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 6 of 9
Developer Address
McComic-Griffin, LLC
9968 Hibert St, Ste 102
San Diego, CA 92131
(Atten: R. Geoffre cComic, V.P. / Secretary)
I I I l� k�'
Date
Title: R. Geoffrey McComic, Secretary, Trans West Housing, Manager
12
By: �.
IrVIVirfate
Title: James Wait, Treasurer, Trans West Housing, Inc., Manager
Reviewed and Ap roved:
Ci ineer Date
r
Appr v d as to F m:
44 AttornW Date
GAFILES\PROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 7 of 9
Exhibit A
SECURITY — TRACT MAP NO. 32879
ON -SITE IMPROVEMENTS
Improvements designated as "Participatory" have been or will be constructed by others. Security for
Participatory Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or
released as specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total
performance security for the TRACT and shall not reduce total performance security below the amount
necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases
of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer.
Requests for partial releases, setting forth in detail the amount of work completed and the value thereof
shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required TRACT improvements are
complete and accepted by the City Council.
Improvement Description Performance Labor & Materials
Grading
Totals
Standard 10% Contingency
Total Construction Cost
Professional Fees, Design 5%
Professional Fees, Const 10%
Bond Amount
Street Improvements
Storm Drainage
Totals
Standard 10% Contingency
Total Construction Cost
Professional Fees, Design 5%
Professional Fees, Const 10%
Bond Amount
Sanitary Sewer
Domestic Water
Totals
Standard 10% Contingency
Total Construction Cost
Professional Fees, Design 5%
Professional Fees, Const 10%
Bond Amount
$ 270,682
$
2,706,818
$ 270,682
$
2,706,818
$ 27,068
$
270,682
$ 297,750
$
2,977,500
$ 14,888
$
148,875
$ 29,775
$
297,750
$ 342,413 '
$
3,424,125
$ 3,425,664
$
3,425,664
$ 1,624,740
$
1,624,740
$ 5,050,404
$
5,050,404
$ 505,040
$
505,040
$ 5,555,444
$
5,555,444
$ 277,772
$
277,772
$ 555,544
$
555,544
$ 6,388,760 -
$
6,388,760
$ 1,268,432
$
1,268,432
$ 1,347,302
$
1,347,302
$ 2,615,734
$
2,615,734
$ 261,573
$
261,573
$ 2,877,307
$
2,877,307
$ 143,865
$
143,865
$ 287,731
$
287,731
$ 3,308,903 -
$
3,308,903 '
GARLESTROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 8 of 9
Improvement Description Performance Labor & Materials
Dry Utilities
$
727,200
$
727,200
Totals
$
727,200
$
727,200
Standard 10% Contingency
$
72,720
$
72,720
Total Construction Cost
$
799,920
$
799,920
Professional Fees, Design 5%
$
39,996
$
39,996
Professional Fees, Const 10%
$
79,992
$
79,992
Bond Amount
$
919,908 -
$
919,908 =
Landscaping
$
2,829,200
$
2,829,200
Totals
$
2,829,200
$
2,829,200
Standard 10% Contingency
$
282,920
$
282,920
Total Construction Cost
$
3,112,120
$
3,1 12,120
Professional Fees, Design 5%
$
155,606
$
155,606
Professional Fees, Const 10%
$
311,212
$
311,212
Bond Amount
$
3,578,938'"
$
3,578,938
Monumentation
$
45,000
$
-
Totals
$
45,000
$
-
Standard 10% Contingency
$
4,500
$
-
Total Construction Cost
$
49,500
$
-
Professional Fees, Design 5%
$
2,475
$
-
Professional Fees, Const 10%
$
4,950
$
-
Bond Amount
$
56,925 -
$
-
GARLESTROJECTS\GRIFFIN RANCH\PROJECT MANAGEMENT\Bonds\Improvement Bonds\ONSITE SIA GRR_MCG.doc 9 of 9
State of California
County of San Diego
On January 16, 2006 before me, Jenna B. McFarland, Notary Public, personally appeared
James Wait, personally known to me to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person, or the entity upon behalf
of which the person acted, executed the instrument.
WITNESS my hand and official seal.
Signature < (Seal)
ANNA B. MCFARLAND
Commisslon # 1532265
•-' Notary Public - California
San Diego County
My Comm. Expires Dec 5, 2008
State of California
County of San Diego
On January 16, 2006 before me, Jenna B. McFarland, Notary Public, personally appeared
James Wait, personally known to me to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person, or the entity upon behalf
of which the person acted, executed the instrument.
WITNESS my hand and official seal.
_ r •
C
Signature ,�' ,�, ,,,�I1 f �.� _ _ (Seal)
ANNA B. MCFARIAND
'�"' Commission # 1532265
��� Notary Public - Copfornia
San Diego County
My Comm. Expires Dec 5.2008
State of California
County of San Diego
On January 16, 2006 before me, Jenna B. McFarland, Notary Public, personally appeared
R. Geoffrey McComic, personally known to me to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person, or the entity
upon behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
ANNA B. MCFARLAND
_01My
Commission # 1532265
Notary Publ� -California
' ' 4t �,'' Seal San Diego County
Signature_,;�., t_ .�.� ( ) Comm. Expires Dec 5, 2008
State of California
County of San Diego
On January 16, 2006 before me, Jenna B. McFarland, Notary Public, personally appeared
R. Geoffrey McComic, personally known to me to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person, or the entity
upon behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal. ANNA B. MCFARLAND
Commission # 1532265
Notary Public - California
San Diego County
qAINly Comm. Expires Dec 5, 2008
Signature
�. ` -� �ti� ` r' °_, - (Seal)
-f" r'r�e � � � ( �<<
Griffin Ranch - Parkway
0
CITY of LA QUINTA
REPLACEMENT SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 32879
OFFSITEIMPROVEMENTS
THIS REPLACEMENT SUBDIVISION IMPROVEMENT AGREEMENT fthe "Agreement") is made and
entered into this 17th day of January, 2014
2013, by and between Lennar Homes of California, Inc. a California corporation hereinafter referred to as
"Builder," and the City of La Quints, a municipal corporation of the State of Califomia, hereinafter referred
to as "City."
RECITALS:
A. A final map of the Tract has been approved and recorded subject to the Subdivision Laws and to the
requirements and conditions contained in City Council Resolution No. 2005-006 (the "Resolution of
Approval"). The Resolution of Approval is on file in the office of the City Clerk and is incorporated into
this Agreement by reference.
B. On or about January 16, 2006, Builder's predecessor in interest, Griffin Ranch, LLC and McComic-
Griffin, LLC ("Original Subdivider"), entered into the original Subdivision Improvement Agreement for
the above -references subdivision.
C. The Original Subdivider has constructed certain of the improvements ("Installed Improvements")
required pursuant to the Resolution of Approval, but that those improvements have not yet been
accepted by the City.
D. Builder has agreed to install the remaining public and private improvements (the "Remaining
Improvements') associated with this tract map.
E. The Remaining Improvements have not been installed and accepted at this time.
F. The Installed Improvement and the Remaining Improvements are referred to collectively hereinafter
as "the Improvements."
G. It is therefore necessary that Builder and City enter into an agreement for the installation of the
Remaining Improvements, and any final work needed in order for the Installed Improvements to be
accepted. Builder desires to enter into this Agreement, whereby Builder promises to install and
complete, at Builder's own expense, all the remaining public improvement work required by City in
connection with the proposed Tract. Builder has secured this Agreement by improvement security
required by the Subdivision Laws and approved by the City.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvement Plans. Builder shall furnish complete original improvement plans for the construction,
installation and completion of the Improvements meeting the requirements of the City Engineer. The
Improvement Plans for the Tract shall be maintained on file in the office of the City Engineer and shall
be incorporated into this Agreement by reference. All references in this Agreement to the
Improvement Plans shall include reference to any specifications for the Improvements as approved
by the City Engineer.
2. Improvements. Builder shall construct the Improvements required to be constructed or agreed to be
constructed under the Resolution of Approval and this Agreement as more specifically described in
Exhibit "A." attached hereto and expressly made a part hereof by this reference, and shall bear the
full cost thereof. The methods, standards, specifications, sequence, and scheduling of construction
shall be as approved by the City Engineer.
3. Improvement Security. Builder shall at all times guarantee Builder's performance of this Agreement
by furnishing to City, and maintaining, good and sufficient security as required by the Subdivision
Laws on forms and in the amounts approved by City for the purposes as follows:
Ias
A. One class of security to be provided by Builder, hereinafter referred to as "performance security,"
shall assure the faithful performance of this Agreement including construction of the
Improvements, payment of Builder's fair share of Improvements which have been or will be
constructed by others ("Participatory Improvements"), and payment of plan check and permit
fees. The performance security shall also include good and sufficient security in the amount of
one hundred percent (100%) of the estimated cost of setting subdivision monuments as stated
hereafter in this Agreement ('Monumentation Security"). A second Gass of security to be
provided by Builder, hereinafter referred to as "payment security," shall assure the payment of the
cost of labor, equipment and materials supplied to construct the Improvements. A third Gass of
security to be provided by Builder, hereinafter referred to as "warranty security,' shall serve as a
guarantee and warranty of the Improvements for a period of one year following the completion
and acceptance of the Improvements. Builder shall furnish performance and payment security .
Builder shall provide warranty security after Improvements are complete and prior to the City
Council acceptance of the Improvements. Warranty security shall not be required for
Monumentation or Participatory Improvements. However, the City may utilize Monumentation
Security for performance of or payment for the work in accordance with the Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty security, and in addition to the face amount of each such security, each such security
shall include and assure the payment of costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby
secured.
B. Improvement security shall conform with Section 66499 of the California Government Code and
may be one or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government
Code, issued by a surety or sureties listed in the U.S. Department of Treasury Circular 570
(latest version).
3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or
better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange
(of the Los Angeles County Treasurer's office).
4) Irrevocable letters of credit, in a form acceptable to and approved by the City Attorney, issued
by one or more financial institutions meeting the requirements of Paragraph (3), pledging that
the funds necessary to carry out the completion of the Improvements are on deposit,
guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment
by any creditor of the depositor until released by City. Letters of credit shall guarantee that all
or any portion of the funds available pursuant to the letters of credit will be paid upon the
written demand of City and that such written demand need not present documentation of any
type as a condition of payment, including proof of loss. The duration of any such letter of
credit shall be for a period of not less than one year from the execution of the agreement with
which it is provided and shall state, on its face, that the letter of credit will be automatically
renewed until such time that City authorizes its expiration or until sixty (60) days after City
receives notice from the financial institution of intent to allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the
final map or Tract map for which the Improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the Improvements and shall include
the power of sale of the real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and appurtenances thereunto
belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and
profits thereof. The collateral value of the property shall be established at Builder's expense
through an appraisal approved by City.
sae
6) An instrument of credit from an agency of the state, federal or local government, when any
agency of the state, federal, or local government provides at least twenty percent (20%) of
the financing for the Improvements.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal one hundred percent (100%) of the estimated cost of
constructing the Improvements, including payment of plan check and permit fees, as estimated by
the City Engineer or a duly authorized representative of the City Engineer. The amount of
Payment security shall equal the amount of the amount of performance security, except as
otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security
shall equal Ten Percent (10%) of the amount of performance security for the Improvements in the
amount of $206,764. The securities required by this Agreement shall be kept on file with the City
Clerk. The terms of the security documents specified in this Agreement are incorporated into this
Agreement by this reference. If any security is replaced by another approved security, the
replacement shall be filed with the City Clerk and, upon filing, shall be deemed to have been
made a part of and incorporated into this Agreement. Upon filing of a replacement security with
the City Clerk, the former security may be released. The City Engineer shall approve replacement
of security.
D. At the time of submittal of security, Builder shall pay to City administrative fees applicable to the
form of security provided. The fees shall be paid separately for each different form and/or source
(surety or financial institution) of security initially submitted and for substitution of securities but
shall not be required for submittal of warranty security if the warranty security is of the same form
and from the same source as the performance security it replaces. Administrative fees for
security shall be as follows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.B., which require the establishment of evidence of the reliability of the
surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars
($150.00).
2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will
prepare lien agreements and subordination agreements, administer valuation of the real
property and administer the agreements over the life of the lien, all of which require legal
assistance and financial advice, Builder shall pay to City an administration fee of One Half of
One Percent (0.5%) of the estimated cost of the improvements secured but not less than Five
Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory
Improvements shall remain in place until the Participatory Improvements are constructed and
actual costs are known and paid by Builder, or until Builder pays to City the estimated cost of the
Participatory Improvements, and shall guarantee the reimbursement by Builder of Builder's share
of the cost of the Participatory Improvements. Payment security and warranty security shall not
be required for Participatory Improvements.
Upon written demand from City, Builder shall deposit cash with City in lieu of or in replacement of
security guaranteeing Participatory Improvements. If Builder fails to deposit said cash within 30
days of the date of the written demand from City, City may present a written demand to Builder's
Surety for payment of said cash and Builder's Surety shall pay to City the lesser of: 1) the
amount demanded, or 2) the amount of the security.
F. Security shall not expire, be reduced or become wholly or partially invalid for any reason,
including non-payment of premiums, modifications of this Agreement and/or expiration of the time
for performance stated in this Agreement.
G. Security shall be released in the following manner:
3 of
1) Performance security shall be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of Section 10 of
this Agreement.
2) The City Engineer may authorize partial reduction of performance security as work
progresses, upon application by Builder. However, no such reduction shall be for an amount
less than Ten Percent (10%) of the total performance security provided for the faithful
performance of the Improvements. In no event shall security be reduced below that required
to guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%).
The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) Participatory Improvement security shall be released upon payment by Builder of Builder's
share of the cost or estimated cost of the Participatory Improvements.
4) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the
Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision
Map Act shall apply.
5) No security given for the guarantee or warranty of work shall be released until the expiration
of the warranty period and until any claims filed during the warranty period have been settled.
As provided in paragraph 13 of this Agreement, the warranty period shall not commence until
final acceptance of all the work and improvements by the City pursuant to Paragraph 10.
Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Improvements. However, if at the end of the
one-year warranty period, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the warranty, warranty
security shall be retained until the outstanding requests are satisfied or until Builder has
made other arrangements satisfactory to the City Engineer.
6) City may retain from any security released an amount sufficient to cover costs and
reasonable expenses and fees, including reasonable attorneys' fees.
4. Permits Reauired. Prior to commencing any phase of work, Builder shall obtain all permits required
for that phase of work and pay all required fees. Work performed under a permit or permits shall
comply with all provisions of the required permits.
5. Off -site Improvements. When the construction of one or more of the Improvements requires or
necessitates the acquisition of real property not owned by Builder or City, Builder shall use its best
efforts purchase such real property at a reasonable price. In the event that Builder is unsuccessful,
despite its best efforts, to acquire such real property at a reasonable price, Builder may request in
writing that City attempt to acquire such real property. City may, but is not required to, agree to
attempt to acquire such real property on behalf of Builder. If City so agrees, City and Builder shall
enter a separate written agreement in a form acceptable to the City Attorney. Said separate
agreement shall provide that Builder advance to City One Hundred Fifty Percent (150%) of the
appraised fair market value of the real property. Any unexpended portion of said advance shall be
refunded to Builder. Any additional funds required for acquisition of the real property shall be paid by
Builder to City upon the conveyance of said real property to Builder. In no event shall the failure of
Builder or City to acquire such real property excuse, waive, or otherwise terminate Builder's obligation
to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval.
6. Completion of Improvements: Inspection.
6.1 Construction of Improvements. Builder shall begin construction of the Improvements within ninety
(90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later date, as determined by the
City Engineer or as set forth in Exhibit A. Failure by Builder to begin or complete construction of the
Improvements within the specified time periods shall constitute cause for City, in its sole discretion
and when it deems necessary, to declare Builder in default of this agreement, to revise improvement
security requirements as necessary to ensure completion of the improvements, and/or to require
4 of
modifications in the standards or sequencing of the Improvements in response to changes in
standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Builder's obligations hereunder.
6.2 Inspection. Builder shall at all times maintain proper facilities and safe access for inspection of
the public improvements by City and to the shops wherein any work is in preparation. Upon
completion of the work, the Builder may request a final inspection by the City Engineer or the City
Engineer's authorized representative. If the City Engineer or the designated representative
determines that the work has been completed in accordance with this Agreement, then the City
Engineer shall certify the completion of the public improvements to the City Council. No
improvements shall be finally accepted unless all aspects of the work have been inspected and
determined to have been completed in accordance with the Improvement Plans and City standards
and accepted by the City as described in Paragraph 10 of this Agreement. Builder shall bear all costs
of plan check, inspection and certification.
7. Force Majeure. In the event that Builder is unable to perform within the time limits herein due to
strikes, act of God, or other events beyond Builder's control, the time limits for obligations affected by
such events will be extended by the period of such events.
8. Time Extension. Builder may make application in writing to the City Council for an extension of time
for completion of the Improvements. The City Council, in its sole and absolute discretion, may
approve or deny the request or conditionally approve the extension with additions or revisions to the
terms and conditions of this Agreement.
As a condition of the time extension, Builder shall furnish securities, similar in form and substance to
those required in SECTION 3 hereinabove, to cover the period of extension. The value of the
securities shall be sufficient to ensure the performance of and payment for Improvements that remain
incomplete at the time of the extension, and to provide warranty security on completed
Improvements.
9. Survey Monuments. Before final approval of street improvements, Builder shall place survey
monuments in accordance with the provisions of Sections 66495, at sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Builder shall provide the City Engineer written proof that the
monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor
setting the monuments, and intersection monument tie -outs for monuments set in public streets.
10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the
Improvements by City, Builder shall submit a request for final approval by City. The request shall be
accompanied by any required certifications from Builder's engineers or surveyors, approval letters
from other agencies having jurisdiction over and approval authority for improvements required by this
Agreement or the Conditions of Approval, and any required construction quality documentation not
previously submitted.
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the
required documentation and will inspect the Improvements. If the Improvements are determined to
be in accordance with applicable City standards and specifications, and as provided herein,
obligations required by the Conditions set forth in the Resolution of Approval and this Agreement
have been satisfied, and Builder has provided revised plans as required in Paragraph 12, hereinafter,
the City Engineer shall recommend acceptance of the Improvements by the City Council.
11. IJury to Improvements. Until such time as the Improvements are accepted by City in accordance
with Paragraph 10, Builder shall be responsible for and bear the risk of loss to any of the
improvements constructed or installed. Until such time as all Improvements required by this
Agreement are fully completed and accepted by City, Builder will be responsible for the care,
maintenance of, and any damage to such improvements. City shall not, nor shall any officer or
employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause,
happening or occurring to the work or improvements specified in this Agreement prior to the
completion and acceptance of the work or improvements. All such risks shall be the responsibility of
and are hereby assumed by Builder.
ea9
12. Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Builder shall make any necessary revisions to the original plans held by City so the plans
depict the actual Improvements constructed. When necessary revisions have been made, each
separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed;' or
"Record Drawing;" the marking shall be stamped by an engineer or surveyor, as appropriate for the
improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to
the City Engineer.
13. Improvement Warranty. Builder hereby guarantees the Improvements to City for a period of one (1)
year, beginning on the date of final acceptance of the Improvements by the City Council, against any
defective work or labor done, or defective materials furnished, and shall repair or replace such
defective work or materials. If within the warranty period any work or improvement or part of any
work or improvement done, furnished, installed, constructed or caused to be done, furnished,
installed or constructed by Builder fails to fulfill any of the requirements of this Agreement or the
improvement plans and specifications referred to herein, Builder shall without delay and without any
cost to City, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of
the work or structure. Should Builder fail to act promptly or in accordance with this requirement,
Builder hereby authorizes City, at City's sole option, to perform the work twenty (20) days after
mailing written notice of default to Builder and to Subidivider's Surety, and agrees to pay the cost of
such work by City. Should City determine that an urgency requires repairs or replacements to be
made before Builder can be notified, City may, in its sole discretion, make the necessary repairs or
replacement or perform the necessary work and Builder shall pay to City the cost of such repairs
14. Release of Security. City shall retain and release securities in accordance with the provisions of
Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require
Builder to provide a title report or other evidence sufficient to show claims of lien, if any, that may
affect the amount of payment security released.
15. City Right to Cure.. If Builder fails to perform any obligation hereunder and such obligation has not
been performed, or commenced and diligently pursued, within sixty (60) days after written notice of
default from City, then City may perform the obligation, and Builder shall pay the entire cost of such
performance by City including costs of suit and reasonable attorney's fees incurred by City in
enforcing such obligation. In cases of emergency or compelling public interest, as determined by the
City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall
be deemed waived and all other provisions of this Article shall remain in effect.
16. IJury to Public Improvements. Public Property or Public Utility Facilities. Builder shall replace or
have replaced, or repair or have repaired, as the case may be, all public improvements, public utilities
facilities and surveying or subdivision monuments which are destroyed or damaged as a result of any
work performed under this Agreement. Builder shall bear the entire cost of replacement or repairs of
any and all public or public utility property damaged or destroyed by reason of any work done under
this Agreement, whether such property is owned by the United States or any agency thereof, or the
State of California, or any agency or political subdivision thereof, or by City or any public or private
utility corporation or by any combination of such owners. Any repair or replacement shall be to the
satisfaction, and subject to the approval, of the City Engineer.
17. Indemnification.
a. Neither City nor any and all of its officials, employees and agents ("Indemnified Parties") shall be
liable for any injury to persons or property occasioned by reason of the acts or omissions of Builder,
its agents or employees in the performance of this Agreement. Builder further agrees to protect and
hold harmless Indemnified Parties form any and all claims, demands, causes of action, liability or loss
of any sort, including, but not limited to, attorney fees and litigation expenses, because of, or arising
out of, acts or omissions of Builder, its agents or employees in the performance of this Agreement,
including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole
or in part, the design of construction of the Improvements. This indemnification and agreement to hold
harmless shall extend to injuries to persons and damages or taking of property resulting from the
design or construction of said subdivision, and the public improvements as provided herein, and in
addition, to adjacent property owners as a consequence of the diversion of waters from the design or
construction of public drainage systems, streets and other public improvements.
6 of
b. Acceptance by City of the Improvements shall not constitute an assumption by City of any
responsibility for any damage or taking covered by this paragraph. City shall not be responsible for
the design or construction of the subdivision or the improvements pursuant to the approved
Improvement Plans or map, regardless of any negligent action or inaction taken by City in approving
the plans or map, unless the particular improvement design was specifically required by City over
written objection by Builder submitted to the City Engineer before approval of the particular
improvement design, which objection indicated that the particular improvement design was
dangerous or defective and suggested an alternative safe and feasible design. Except as may be
provided above, City shall not be liable for any negligence, nonfeasance, misfeasance or
malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in
approving, reviewing or inspecting any work or construction. Nothing contained in this paragraph is
intended to or shall be deemed to limit or waive any protections or immunities afforded by law to City
or any and all of its officials, employees and agents ("Indemnified Parties"), by virtue of city's approval
of the plan or design of the Improvements, including without limitation the protections and immunities
afforded by Government Code Section 830.6. After acceptance of the improvements, Builder shall
remain obligated to eliminate any defect in design or dangerous condition caused by the design or
construction defect; however, Builder shall not be responsible for routine maintenance. Provisions of
this paragraph shall remain in full force and effect for ten (10) years following the acceptance by City
of the Improvements. It is the intent of this paragraph that Builder shall be responsible for all liability
for design and construction of the Improvements installed or work done pursuant to this Agreement
and that city shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in
approving, reviewing, checking, or correcting any plans or specifications or in approving, reviewing or
inspecting any work or construction. The Improvement Security shall not be required to cover the
provisions of this paragraph.
18. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Conditions of Approval. In the event that any requirement or condition of this
Agreement is inconsistent with or fails to include one or more provisions of the Conditions of
Approval, which document(s) is (are) incorporated herein by reference, the provisions in the
Conditions of Approval shall remain in effect and shall control.
19. Severabiliri. In the event that a court of competent jurisdiction determines that any provision or
provisions of this Agreement are unenforceable, all provisions not so held shall remain in full force
and effect.
20. Builder No Agent of City. Neither Builder nor any of Builder's agents, employees, or contractors are
or shall be considered to be agents of City in connection with the performance of Builder's obligations
under this Agreement.
21. General Provisions.
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent
by registered or certified mail, return receipt requested, to the parties at their respective
addresses indicated hereon. Notices personally delivered shall be effective upon delivery.
Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of
delivery or refusal indicated on the return receipt. Either party may change its address for notices
hereunder by notice to the other given in the manner provided in this subparagraph.
B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns, and successors of the parties hereto.
C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
D. This Agreement shall be governed by and interpreted with respect to the laws of the State of
California.
E. In the event of any dispute between the parties with respect to this Agreement, the prevailing
party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing
party.
7dg
F. Any failure or delay by either party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
G. Time is of the essence in the performance of each and every provision of this Agreement.
H. The Recitals to this Agreement are hereby incorporated into and expressly made a part of the
terms of this Agreement.
I. This Agreement constitutes the entire agreement of the parties with respect to the subject matter.
All modifications, amendments, or waivers of the terms of this Agreement must be in writing and
signed by the appropriate representatives of the parties.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
CITY: City of La Quinta
78-495 Calls Tampico
La Quinta, CA 92253
76 77-
n e ek, City Manager
ATTE 3 .
Susan Maysels, City Clerk
BUILDER: Lennar Homes of California, Inc.
Lennar, Inland Region
980 Montecito Drive, Suite 302
Title: Jeffrey T/bemens, Vice President
By: %,
Title: Mark Torres, Vice President
WE � I
Zt'$iG/
Date
Date
Date
Reviead and proved:
I14
ity gineer Dates
Approved a dFd4 -IN COUNTERPART
City Attorney Date
sae
F. Any failure or delay by either party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
G. Time is of the essence in the performance of each and every provision of this Agreement.
H. The Recitals to this Agreement are hereby incorporated into and expressly made a part of the
terms of this Agreement.
I. This Agreement constitutes the entire agreement of the parties with respect to the subject matter.
All modifications, amendments, or waivers of the terms of this Agreement must be in writing and
signed by the appropriate representatives of the parties.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
_ __ CITY-City'of La Qulnta -
78-495 Calls Tampico
La Quinta, CA 92253
7601777-7075
Frank J. Spevaosk, City Manager
ENO *i III
Susan Maysels, City Clerk
Date
Date
BUILDER: Lennar Homes of California, Inc.
Lennar, Inland Region
980 Monteato Drive, Suite 302
Corona 2879
951- 3663
By:
Date
Title: Jeffrey T lemens, Vice President
_ By.
Title:
Mark Torres, Vice President Date
Revie Fred and proved:
{ /1 I 114
ltY gineer Date r
Appr d to F r . /
ney Date
ears
Exhibit A
SECURITY — TRACT MAP NO.32879
OFF -SITE IMPROVEMENTS
Improvements designated as 'Participatory" have been or will be constructed by others. Security for
Participatory Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or
released as specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Builder may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total
performance security for the Improvements and shall not reduce total performance security below the
amount necessary to complete the Remaining Improvements plus ten percent (10%) of the original
amount. Partial releases of performance security will be evaluated and may be granted, in whole or in
part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work
completed and the value thereof, shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required Tract improvements are
complete and accepted by the City Council.
Improvement Description
Performance
Labor & Materials
Ave 54
Parkway Landscaping
$
201,680
$
201,680
Parkway Landscping at Mery Griffin Estates
$
123,584
$
123,584
Trail Light Bollards
$
7.940
$
7,940
Woodcrete Fence with Colums
$
18,300
$
18,300
Sidewalk
$
43,400
$
43,400
Trail
$
92,250
$
92,250
SWPPP / PM-10
$
25,000
$
25,000
Traffic Signal at Ave 54 and Madison (25%)
$
107,500
$
107,500
Totals
$
619,654
$
619,654
Standard 10% Contingency
$
61,965
$
61,965
Professional Fees, Design 5%
$
30,984
$
30,984
Professional Fees, Const 10%
$
61,965
$
61,965
Bond Amount
$
774,668
$
774,668
9of9
ACKNOWLEDGEMENT
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )
On January 17, 2013, before me, Sherry Alworth, a Notary Public for the State of
California, personally appeared Mark Torres, 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 executed the same in his authorized capacity, and that by
his signature on the instrument the person, or the entity upon behalf of which the person
acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my and official seal.
Signature (Seal)
My Commission expires October 23, 2015
SHERRY ALWORTH r
��� Commission # 1957861
Notary Public • California s
Orange County
M Comm. Expires Oct 23, 2015
i
i
ACKNOWLEDGEMENT
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
On January 17, 2013, before me, Sherry Alwor
California, personally appeared Jeffrey T. Clemer
satisfactory evidence to be the person whose name
and acknowledged to me that he executed the same
his signature on the instrument the person, or the c
acted, executed the instrument.
a Notary Public for the State of
who proved to me on the basis of
subscribed to the within instrument,
his authorized capacity, and that by
ity upon behalf of which the person
I certify under PENALTY OF PERJURY under' the laws of the State of California
that the foregoing paragraph is true and correct. J
WITNESS my
Signature
My Commission
and official seal.
October 23, 2015
(Seal)
SHERRY ALWORTH
Commission # 1957861
i . `d Notary Public - California Z
'- Orange County n
My Comm. Expires Oct 23, 2015'
Griffin Ranch
Troll No. 32879
Onslte, and Offslte Improvements Bond Estimate
December 31, 2013
OFFSITE IMPROVEMENTS
Ave 54
UNI*OUANTITY
UNIT COST
TOTAL
Parkway Landscaping -Otfsite
SF
25210
$ 8.00
$ 201680.00
Parkway Landscaping at Griffin Estates
SF
15.448
S 8.00
$ 123 584.00
Landscape Lighting - Trail Light Bollard
EA
4
$ 4115.00
$ 1,940.00
Traffic Signal Ave 54 Q Madison 25%
LS
1
$ 107 500.00
$ 107,500.00
Woodcrete Fence with Stone Columns at 60" O.C.
LF
1,220
$ 15.00
18 300.00
6'Wide Wandering Sidewalk
SF
8680
$ 5.00
$ 43400.00
10" Wide Decomposed Granite Trail - Offsite
SF
12,300
$ 7.50
$ 92 250.00
TrailBollards,EA
4
$ 1600.00
1 $ 6000.00
Compliance with SWPPP-PM10
LS
1
$ 25000.00
$ 25000.00
Subtbfdtfo'r Ave S/ -
'
z.
iSubtotal v, .-',
S % '619854.00
TotahOffsite'bir roverirents
'Ii
,$ '"`%819;8tH:00`
Offsiteam `rdvemerits with"90%Coirtid �-nC „
=•
S .=881;819:40i
5•b;CdnOn anc fbi Desl n;
2-30,982:70`
10%'C6hdn`"ehe torCohdt'ructlon`Manb emeht
-61;965.'40J
Total Bond`Artiount0ffsit6im rovem6fiW
:.
$ -=774687[60:
The above cost estimate does not Include raw land, legal fees, agency permits
and fees, professional engineering fees, construction phasing, bonds,
financing/carrying costs, construction staking, soils testing, amounting and
construction management. MSA Consulting, Inc. makes no representation
concerning the estimated quanitites and cost figures other than that all such
figures are estimates only and the Engineer shall not be responsible for
fluctuations in cost factors or the actual cost at the time of construction.
Page 3