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2016 - 32201 - SC Homes Fund, LLC - SIA on-Site & Off-SiteCITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 32201 OFF-SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT"Agreement") is made and entered into this FEBRUARY day of, 20 16 by and between SC Homes Fund, LLC, a Delaware limited liability company, hereinafter referred to as "Subdivider," and the City of La Quinte, a municipal corporation of the State of California, hereinafter referred to as "City." RECITALS: A. Subdivider has prepared and submitted to City for final approval and recordation a final map or Tract map (the "Map") of a unit of land in the City of La Quinta, County of Rivemide, which unit of land is known as Tract No. 32201 (the "Tract") pursuant to the provisions of Section 00410, et seq. of the California Government Code (the "Subdivision Map Act'). The Subdivision Map Act and City ordinances and regulations relating to the fi|ing, approval and recordation of subdivision maps are sometimes collectively referred to in this Agreement as the "Subdivision Laws." B. A tentative map of the Tract has been approved subject to the Subdivision Laws and to the requirements and conditions contained in City Council Resolution No. 2UU4'08O(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. C. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and private improvements (the 'Improvements). D. The Improvements have not been installed and accepted at this time. E. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the lmprovements as provided in Section 66462 of the Subdivision Map Act. In consideration of approval of a final map for the Tract by the City Council, Subdivder desires to enter into this Agneement, whereby Subdivider promises to install and oomp|ehe, at Subdivider's own expenoe, all the public improvement work required by City in connection with the proposed Tract. Subdivider 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 foliows: 1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall furnish complete original improvement plans for the ounstnuction, 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. Subdivider shall construct the Improvements required to be constructed on the lmprovement Plans 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. Subdivder shall at all times guarantee Subdivider's performance of this Agreement by furnishing to City, and meintaining, good and sufficient security as required by the Subdivision Laws on forms and in the amounts approved by City for the purposes as follows: 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 |mprovements, payment of Subdivider's fair share of Improvements which have been or will be constructed by others ("Participatory |mpnnvemmnts^), and payment of plan check and permit 1 of 9 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 class of security to be provided by Subdividar, 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 Subdividar, 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 precedent to City Council approval of the Map. Subdivider shall provide warranty security after Improvements are complete and prior to acceptance of the Improvements by the City Council. 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 aeouhh/, and in addition to the face amount of each such oeouh<y, 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 bmttorondaonmmitmantno|iabi|ih/nadngof''F<'2^orbettmronthe|nvostmmntDatoExrhange (of the Los Angeles County Treasurers 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 deponit, 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 atmte, 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 be|onging, or in any wise apperteining, and the neomn/adons, rmmoinders, nants, innuon, 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 abate, 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 lmprovements. 2 of 9 7) When Subdivider is a non-profit organizadon, 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 seouhty, 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. 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 aoouhty, the replacement shall be filed with the City Clerk and, upon fi|ing, 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, 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 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 foliows: 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 instituUon, the administrative fee shall be One Hundred Fifty Dollars 2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will prepare lien agreements and subordination agnaements, 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 |mprovmments, 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 |mprovemanta, 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 Iesser of: 1) the amount demanded, or 2) the amount of the security. F. Security shall not mxpna, be reduced or become wholly or partially invalid for any reoson, including non-payment of pnemiuma, 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 9 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 progreuues, 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 (10Y6). 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 Acshall 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. Hovvaver, if at the end of the one-year warranty pehod, there are one or more outstanding requests by City for performance of work or provision of materials under the terms of the werranty, warranty security shall be retained until the outstanding requests are satisfied or until Subdivider 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 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 aU 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 unsuonessfu|, 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 agnaon. 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 (150Y6) 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 axouee, waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval. 6. Completion of Improvement ; Inspection. 6.1 Construction 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 data, 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 4 of 9 improvement security requirements as necessary to ensure completion of the improvamnnta, 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. 6.2 Inspection. Subdivider 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 Subdivider 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 Agpemment, 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. Subdivider shall bear all costs of plan check, inspection and certification. 7. Force Majeure. In the event that Subdivider is unable to perform within the time limits herein due to sthkeo.actofGod.oroUhereventobeyondSubdivide/snontro|.bheUme|imitaforob|igaUonsaffecb»d 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 dionreUon, 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 heneinebove, 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 e/tennion, and to provide warranty security on completed Improvements. 9. Survey Monuments. Before final approval of street improvmmonts. 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 Accetance of Improvements. At the completion of construction and prior to acceptance ofthe Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Subdividers engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation not previously submitted. 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 apeoifioadonu, and as provided herein, obligations required by the Conditions set forth in the Resolution of Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in Paragraph 12, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council. 11. Injury to Improvements. Until such time as the Improvements are accepted by City in accordance with Paragraph 10, Subdivider 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. Subdivider 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 Subdivider. 5 of 9 12. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Subdivider shall make any necessary revisons to the original plans held by City so the plans depict the actual lmprovements 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. 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 Counci|, 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, inutaUed, constructed or caused to be done, furniahed, installed or constructed by Subdivider fails to fulfill any of the requirements of this Agreement or the improvement plans and specifications referred to herein, Subdivider 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 Subdivider fail to act promptly or in accordance with this nequinement. Subdivider hereby authorizes City, at City's sole nption, to perform the work twenty (20) days after mailing written notice of default to Subdivider and to Subidivider's Suveh/, 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 Subdivider can be nodOod. City may, in its sole discretion, make the necessary repairs or replacement or perform the necessary work and Subdivider 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 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, 15. City Riqht to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been perfonned, or commenced and diligently puroued, 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 intenae1, 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. lnjury to Public lmprovements, Public Property or Public Utility Facilities. Subdivider 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. Subdivider 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 yatiafaction, and subject to the approval, of the City Engineer. 17. Indemnification. a. Neither City nor any and all of its officia|o, employees and agents ("Indemnified Parties") shall be liable for any injury to persons or property occasioned by reason of the acts or omissions of Subdivider, its agents or employees in the performance of this Agreement. Subdivider further agrees to protect and hold harmless Indemnified Parties form any and all c|aimn, demonds, causes of action, liability or loss of any sort, inn|uding, but not limited to, attorney fees and litigation expenoeo, because of, or arising out of, acts or omissions of Subdivider, its agents or employees in the performance of this Agreement, including all daims, dmmands, causes of action, |iabi|ity, 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 aubdivision, and the public improvements as provided hevain, and in additinn, to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage oyahema, streets and other public improvements. 6my 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 Subdivider submitted to the City Engineer before approval of the particular improvement deuign, 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 abovm. City shall not be liable for any nag|igmnoe, nonfeaamnro, misfeasance or malfeasance in approving, navimvving, ohaoking, or correcting any plans or specifications or in appvoving, 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 |mp,ovementa, including without limitation the protections and immunities afforded by Government Code Section 830.6. After acceptance of the improvements, Subdivider shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect; however, Subdivider 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 Subdivider shall be responsible for all Ilability for design and construction of the Improvements installed or work done pursuant to this Agreement and that city shall not be liable for any nmg|igenno, nonfoananom, misfeasance or malfeasance in app/oving, revievving, oheokin0, or correcting any plans or specifications or in approving, reviewing or inspecting any work or construction. The Improvement Security shali 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 /\pprova|, which document(s) is (are) incorporated herein by reference, the provisions in the Conditions of Approval shali remain in effect and shali control. 19. Severability. In the event that a court of competent jurisdictiodetermines that any provision or provisions of this Agreement are unonforoeab|e, all provisions not so held shall remain in full force and effect. 20. Subdivider No Agent of City. Neither Subdivider nor any of Subdivider's aQenta, emp|nyeeu, or contractors are or shall be considered to be agents of City in connection with the performance of Subdivider's obiigations 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 mai|, return receipt nsqumsbsd, to the parties at their respective addresses indicated hereon. Notices personally delivered shall be effective upon delivery. Notices maiied 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 bermo, oonditiona, oovenante, 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. O. This Agreement shall be governed by and interpreted with respect to the laws of the State of 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. 7m, 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 I. This Agreement constitutes the entire agreernent of the parties with respectto the subject matter, All modificationo, 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 78'405Calle Tampico LaOuinta. CA 92253 760/777-7075" ()wally sIgned by Frank J. Spevacekcn—Frank Spevacek Frank J. Spevacek, City Manager ATTEST: OAA of.4 Date Digitally signed by Susan Maysels cnbSusan Maysels Date: 2016.02.22 0933:46 -08'00' Susan K8ayoels, City Clerk SC Homes Fund, LLC, a Delaware Iimited Iiabflity company 10621 Civic Center Drive Rancho Cucamonga, CA 91730 Diversified PacifiOevelopment Group, LLC, aCalifornia limited liability company Authorized ' ByMdt te A. Jordan ~- By� Its Title: By: Title: Manu )0Man)her ed and Approved: Date Date Approved as to Form: y Engineer Da e William H. Ihrke, City Attorney Date 8 of 9 Exhibit A SECURITY — TRACT MAP NO. 32201 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, 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 Street Sidewalk Landscaping $ 78,414 $ 15,135 $ 56,720 $ 78,414 $ 15,135 $ 56,720 Totals $ 150,269 $ 150,269 Standard 10% Contingency $ 15,027 $ 15,027 Total Construction Cost $ 165,296 $ 165,296 Professional Fees, Design 10% Professional Fees, Const 10% Bond Amount $ 16,530 $ 16,530 $ 16,530 $ 16,530 198,356 198,356 9 of 9 Bond Number: PB03010402658 Premium: $2,975.00 SUBDIVISION IMPROVEMENTS Tract Map No. 32201 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of the City of La Quinta has approved the final map for Tract Map No. 32201 prior to installation of certain designated public improvements required by the Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code Section 66462) WHEREAS, the City Council of the City of La Quinta, State of California, and SC Homes Fund, LLC hereinafter designated as ("principal") have entered into an agreement whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated , 20 , and identified as Tract Map No. _312_41 . is hereby referred to and made a part hereof; and WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. NOW, THEREFORE, we, the principal and ,Philadelphia Indemnity Insurance Company , as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum of One Hundred Ninety Eight - thousand, Three HundredDOLLARS ($ 198.356M Fifty Six )lawful money of . _ the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed hereunder or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications. In witness whereof, this instrument has been duly executed by the principal and surety above named, (Seal) (Seal) SC Homes Fund, LLC BY: Diversified Pacific Development Group, LLC ITS: Manager Principal By Title | Phila Indemnity Insurance Company - ~ ture of Surety Monroe,/Janina .A�ornmv-|n-Fact /~ AtTitle of Signatory torney-In-Fact Irvine, CA 92612 Address of Surety 949-252-4400 Phone # of Surety Janina Monroe Contact Person For Surety CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of BO'(VLV 1O ) On Fr,' Ra V4 -Ack; before me, D te personally appeared Here Insert Name and Title of le Officer :ji..)161e1 11 Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person V) whose name,(15) is/are' subscribed to the within instrument and acknowledged to me that he/ hey executed the same in his/fidritheir authorized capacity(haS), and that by his/rieritheir signatureM on the instrument the persons, or the entity upon behalf of which the person acted, executed the instrument. SIMONE BASSO Commission # 1990814 Notary Public - California San Bernardino County My Comm. Expires Oct 9, 2016 Place Notary Seal Above z 2 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OPTIONAL ;„ Signature of Notary Public Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Doqu5nent Title or Type of Document: .-tef-revikla POO ?OM flnrr ImPrit Date: 1,61A (1„:166( Number of Pages: _ Signer(s) Other Than Named Above: .)1(1-11.,(14),, )(1101 Capacity(ies) Claimed by Signer(s) Signer's Name: 0 Corporate Officer — Title(s): 0 Partner — Fl Limited LI General El Individual 0 Attorney in Fact El Trustee 0 Guardian or Conservator 0 Other: Signer Is Representing: Signer's Name: Corporate Officer — Title(s): _ IA Partner —Lil Limited II General CI Individual II Attorney in Fact Lil Trustee 111 Guardian or Conservator 0 Other: Signer Is Representing: XZ? XC4 XX ©2014 National Notary Association • www.NationalNotary.org • 1 -800 -US NOTARY (1-800-876-6827) Item #5907 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange On FEB 02 zps before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(*) whose name(s) is/ subscribed to the within instrument and acknowledged to me that bia/she/...., executed the same in kis/her/ r authorized capacity (iesX and that by her/ signature* on the instrument the person*, or the entity upon behalf of which the person* acted, executed the instrument. ) M. Barreras, Notary Public mere Insert Warne en Janina Monroe I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. • NL ary Public Signature (Notary Public Seal) M. BARRERAS Commission # 2048208 Notary Public - California Orange County My Comm, l'rp!f:_s Nov 5, 2017 ADDITIONAL OPTIONAL INFORMAT ON INSTRUCTIONS FOR COMPLETING THIS FO This fortn complies with current Cal statutes regarding 110i01:1° wording and, if needed, should be completed and attached to the document. Ac/no/wedgentsfro,n other states may he completed for documents being sent to that state so long as the wording does not require the California notary to violate California notary law. • State and County information must be the State and County where the docutnent signer(s) personally appeared before the notary public for acknowledgment. * Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. 9 The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the dine of notarization. * Indicate the correct singular or plural forms by crossing off incorrect fonns (ix, he/she./ , is lefe ) or circling the correct fonns. Failure to correctly indicate this infonnation may lead to rejection of document recording. * The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re -seal if a sufficient arca permits. otherwise complete a different acknowledgment fonn. * Signature of the notary public must match the signature on file with the office of the county clerk. • Additional information is not requited but could help to ensure this acknowledgment is not misused oi attached to a different document. Indicate title or type of attached document, number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate riffled, indicate the title (i.e. (EO, CFO, Secretary). * Securely attach this document to the signed document with a staple DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description of attached document) (Title or description of attached document continued) Number of Pages Document Date CAPACITY CLAIMED BY THE SIGNER O Individual (s) O Corporate Officer (Title) • Partner(s) I5J Attomey-in-Fact o Trustee(s) o Other . YIN nitn 500 1 LI:n.bn PHILADELPHIA INDEMNITY INSURANCE COMPANY 231 St. Asaph's Rd.. Suite 100 Bala Cynwyd, PA 19004-0950 Power of Attorney 1,,:N(' 1 /LPL PFRSONS R5` THF;;F PRP`>FNT': that PHIL.AIUF'LPHIA. INOENINITY INSURANCE CO iSP. N r` (ticc: d a,mpany t, a ccrpc) ticbsa e exisiinp rani r thr, laws of th , Commonwealsh r,f P,'tuuc=,=i,; ni:.t oaorF. hcrehy .70!),crit.ute and aPpoint:.l.1NFNi;1, MONROE, TI-InfdAS 6. FICC.,\I.,L, T1P 1 NC+ON .,,,N AND MICHELLE HA ,\' [ CIF 1 ocK- i ij (r1PL1P4NIIES, LLC It, tilt(' and lawful r\tlot'ncyl;:) in fact with full attiin nbligatcory i+u the uatcue 1herer f, issued in rho; eroitrsn Thi; Poow,rr of Attorney is t ran sealed by fac:siuti P111LADELP111.\ 1-11LFMNIL1- INS T7P:\tJC`T 'Ca1vYI`.ANY at a nicaoinc,, RESOLVED: FURTHER RESOLVED: he Lrr Ihe.rc10 ant authori1y gr' 11711honds, ondcttakit lintal t,1ae C t>sttaean ,° rir�tt 1,, 11 Appannt :\tiorneyisa ut 11 ray bowl: ern! 'e'� �na� taK ilc'€ rrtn tPi�w t'+ n9'!e7{l.'Ptidid nt not to 1•x00ed $25,1)00,R1d10,1)1) of the fnllrawinl 1'., .oPluti idiant or a ice Pf4:s1d: o> tindn nt of 1110 and r.<<s1.. tht° va trn1l.; rtat.inG to wl nd w 3351 tor:. of TN TFSTIA1C,Nl"'Al1FRLr"t E. PML.:01)11 LPTii.A 'INDEMNITY R1llIR NCE C(11,1Pr\fJY HAS CAUSE THI.e ENSTR11AIENT TO HF SKTaNLD AND ITS CORPORATE SL'AL•T[+1BF AFFIXED FtA" 1'FS Aii'111 .1)1`ZF[OOFFICE THiS 70" [140 CIl'i L:hPit410 2013. r 5,:,s FI C,u 1FOhnutsv- 2013. he1'. me came the indi'••idtual Its' is the thereita,i;a,<<r0. aeti auUtnrizel othiccr of the PHIL % ""I ty; that the -:;aid ,: enpec0e. Seal ,and his P,ohcrl 13 Philadelphia indent! cotal.tnttwEALitiirPENNsyo..vAto, NOTARIAL SEAL DAt11ELLE FORAM, ilrrt y twat Metivo T -, Naar.Oom pry C MyCutwi" ` Mand `!, 41 Notary Pt7Fd msidfulg at: rick Company ied the precc,iirat in t tangent. t= nae gselcnnaliv known. and Ia=yin Fy me duly sworn said that INDLIyih:ET t01.1RANCE CO PAN I that 1o's,aal0)11'. <1 fl., a:ta+1 r¢a_,t3sraterat it; tic ae <'reduly. fti°c 1. 13ala.s:yntax..<I:.PA .. spires: 1larch 22,,20,a 1, Craig P. koG 11el, l xPc.utiv,r Vi,. Pre:°;i,1001. Clbs+, il?inancial officer and the lnnt?,airug resolution a,f the Bcnard int"DU'e stets ;sut1 rias r`lutiscr ccrti[\ tls,at.eaae t ri 0"Le:,rf?r. til-hK r,,eees1e 1 elect,a.1 Prr.sidnnr.ofP1411 f'LLPitIA INDE1,1r•T1`Il' 101 .11 retasab nT'T§TdLt\b)FI_.PHIA 17tDFtw1NIT0 1T 01 17 0NCF. 01 a01P:\NY, do hrih'. c0 r.l.uetl I,,arts+aa,tt r3aerc-to arc true and a'a",n'Ct1 and aro stilt in dull hatcc and e1ffz,-i. 1 c Preaid;.n1. \VIM on she date ni ho1n 01 the. attsch,rd Pc c r get'r,tt<erueo th 'ANY, In Te irna,'ony Whereof !have snbsenhed lTly name and affix- the farsitaai9c stag! of c,ach Company F E1> 0 2 2016 ma i4 P. Toolbar, F'ee.uttyc Vice PueF..idenl, Chief Futan0sal PHILADELPHIA INDEMNITY INSURANCE COME ANY Bond Number:PB03010402658 Premium: Included in Perf.Bond SUBDIVISION IMPROVEMENTS Tract Map No. _3220i LABOR AND MATERIAL BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of the City of La Quinta has approved the final map for Tract N prior 10 installation of certain designated public improvementsrequired by the Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code Section 66462) WHEREAS, the City Council of the City of La Quinta, State of Califomia, and .SC eS.|Ftiod(|C hereinafter designateas "the principal" have entered into an agreement whereby the principal agrees to install and complete certain designated public improvements, which agreement, dated .20.and identified mm Tract Map No. 377R1 is hereby referred to and made a part hereof; and WHEREAS, under the terms of the agreement, the principal is required before entering upon the performance of the work, to file a good and sufficient pnt bond with the City of La Quinta to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the CiviI Code or the State of Caiifomia. NOW, THEREFORE, the principal and the underhgnedwocorponab*munaty\mreha|dfinnkybpund unto the City of La Quinta and all contractors, subcontractors, |mbomans, nmohehm|men, and other persons employed in the performance of the agreement and referred to in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code in the sum of Qne Hundred Ninet Ei.ht Thousand, Three Hundred Fifty Six DOLLARS (Q1S83sWD0 ), for materials furnished or labor thereon of any kind, orfor amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney' s fees, incurred by city in successfully enforcing this obligation, to be awarded and fixed by the court, and 10 be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreedthatthi bond shall inure to the benefit of any anda|| persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, The surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, mxhenoinn, a|heotion, or addition. In witness whereofthis instrument has been duly executed by the principal and surety above named, on February 2 , 20 16. (Seal) (Seal) SC Homes Fund, LLC BY: Diversified Pacific Development Group, LLC ITS: Manager Ma#hanaging Member Philadelphia Indemnity Insurance Company S ture of Surety nina Monroe, Attorney -In -Fact Title of Signatory 108OOMacArthur Blvd, Ste. 125U Irvine, CA 92612 Address of Surety 849-253-4400 Phone # of Surety Janina Monroe Contact Person For Surety CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of '6e-6/aro Int On f42ikorkkj !bate personally appeared A0/6, before me, t Here Insert Name and Title of th Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the personwhose name N isPare subscribed to the within instrument and acknowledged to me that heMiteAttey executed the same in his/h 'I -authorized capacity(WS), and that by his/ -ttreit signature,() on the instrument the person) or the entity upon behalf of which the person (%) acted, executed the instrument. SIMONE BASSO Commission # 1990814 Notary Public - California San Bernardino County 32: omm. Expires Oct 9, 2016 Place Notary Seal Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OPTIONAL / Signature of Notarj Public Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document , Title or Type of Dnrument: 0,100Y (,110 )110.: 0-,xmd Document Date: 1,tida-tcl Number of Pages: Signer(s) Other Than Named Above: JO ft kYno,Akit, Capacity(ies) Claimed by Signer(s) Signer's Name: C] Corporate Officer — Title(s): E Partner — Limited 0 General Individual El Attorney in Fact II Trustee IA Guardian or Conservator El Other: Signer Is Representing: Signer's Name: El Corporate Officer — Title(s): 10I Partner — E Limited E General 101 Individual 0 Attorney in Fact El Trustee 0 Guardian or Conservator El Other: Signer Is Representing: 02014 National Notary Association • w.NationalNotary.org • 1 -800 -US NOTARY (1-800-876-6827) Item #5907 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange On FEB 0 2 2016 before me, personally appeared } } M. Barreras, Notary Public (Ho( a rrt Nun* and Lla of Lila Othca-ri Janina Monroe who proved to me on the basis of satisfactory evidence to be the persona whose name(s) subscribed to the within instrument and acknowledged to me that Iste/sheis executed the same in Is/her/ -r authorized capacity0testX and that by her signature* on the instrument the person*, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Notary Public Seal) M. BARRERAS Commission # 2048208 71 Z Notary Public - California z .. , .io Orange County ?. My Comm. Fxriires Nov 5, 2017 r ADDITIONAL OPTIONAL INFORMAT ON INSTRUCTIONS FOR COMPLETING THIS FO This form complies with CUITC1li California statutes regarding notary wording and, if needed should be completed and attached to the document Acknolwedgents from other slates may he completed for documents being sent to that state so long as the wording does not require the California notary to violate California notary law. • State and County information must he the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also he the same date the acknowledgment is completed, • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public), • Print the name(s) of document signer(s) who personally appear at the tiine of notarization, • Indicate the correct singular or plural forms by crossing off incorrect forms (ix, hoishe/ , is /ere ) or circling the correct fonns. Failure to correctly indicate this information may lead to rejection of document recording. • 1he notary seal impression must be clear and photographically reproducible. linpression must not cover text or lines. If seal impression smudges, re-scal if a sufficient area permits, otherwise complete a different acknowledgment fimn. • Signature of the notary public must match the signature on file with the office of the county clerk. • Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. • Indicate title or type of attached document, number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate °Meet, indicate the title (i.e. (EO, (FO, Secretary). • Securely attach this document to the signed docuinent with a staple. DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description of attached document) (Title or description of attached document continued) Number of Pages Document Date CAPACITY CLAIMED BY THE S GNER O Individual (s) O Corporate Officer (Title) O Partner(s) 541 Attomey-in-Fact o Trustee(s) o Other !, \P2, ;Aril Y.,:ii)SS b()(1 e cibbn 3345 PHILADELPHIA INDEMNITY INSURANCE. COMPANY 231 St. Asaph's Rd., Suite, 100 Fiala Cynwyd, PA 1 94)(14-0950 Power of Attorney 1:1) iOW ALL PERSONS F3 T1lLg2 PP ESENTS: that PHILADELPHIA INDEMNITY INSURANCE COMPANY ialic Ccaripany'r a cotTviration organ lied and existing, under the laws or ofie Commonwr:ahlt cirPotnylraitta, doc,. hvwhy conshrutc and appcont ./ AMIN, IF '1 ()[J u, Iv(CC„1 1 TIN/Well-1y T. J(1.-11-1NAN AND N 11 fiELLE HAASF OF Ll)(- KTON iTOMPANIES, LLC Its nab; cold lawful Attorney( s) in fact with full authority In :XeC.11(e on its behalf bniids, lInderiakings, recngnizancer, and other contraeb) of nut:minty and cvritilu7s obligatory in the MR/re (IV:WM-, 117431.101 in lir courftcs of its bitsirn:s and to boil tfr: Conpany idwrerry, in an ans.:nun n,-.4 1 i.)-v-ccil S25.000.01,11LIHI Thii) Prnvcr tAttiLtrney Jarited and is sittned and reakvi hy facsimile ander ..ttirl by the alilbol 3' f the following Resolution alopti.7.(1 b,.• Iii: Board of Dir2C: tr,^1'S ufr PFIILAPILIFIE INDEMNIFY INSIJR Ar,Ir L COI\ PAN V"u Illee101V duly P11ihe 1' day July, 20 1 I. RESOLVED: That the lioai.0 r+f Directors roht iulhOIl7r'v, or any c t.F.iidetit of the l_olorany to: 1 Appoint Anoitieryisiu 1-..(i( 100 1114141,11ZC the AttOrney(s) in Fact to 0\3 4110 Cni heltalf the C,Ympany horrIs and unk.riakings, contracill oI inekannity and otlii-J writings obligatory in Ole 11111111; OICIY‘of arid to 1:itraeli the thr: r2ompiiny 11l0 1) 34! 2 11 ranola:, a( any now., tris,, such Attrkrricy-in-Fara .and revoke the authority etvcn. And, he n. FURTHER RESOLVED: That the sip:mit-tics of such officer: and (he e1l of lilo Company ;13y 10 affrxcd to such 1' o or tAttorney r>r Gertiljeitc'. relating thi:rclo by facsimile, and any such Power of Artnorey so executed and c.nrified y facsimk vignalture.t and facsimilv wal shall he valid and hiding utv-m ilie i-otripany 14 tIK: furor., with the: respect io any bond or undertaking to shish it is attv:hcd. TESTIN trils,TY WHEREOF, PHIL.i'kDELPHIA INDFMNITY TN IIP NCE cir,4PANY HAS / \l [D TIlfS BF. SIGNED AND ITS 1.1'viRPriR ATI SE.A.LTri \1 31 AUTFIORIZED c+IFICE THIS 7 DAY tit, 1(803 r1"4 (43 Roller! D (t -Leal-,.. Jr , President lCErt Phi layklphia Indemnity Instiranco ‚14433' 31:' ITPu 144 ','" day n 201.3, hrfnir-..'11.1e came the individual ho executed the pr..ceding in5troinent, 10 rersnrally hown, and being h7 rn,t duly cwom tiaid that 1),.^ is du.' ihcaein ilescribcd and alithorizi.°0 crilie.c-r or The PIIILADE1,PIIIA 1NSUR A NCE COM P.A N 11,11 1110 sc 11 offu.;ed to 111 invmninent is the Ceriro scal :Eiatri Company, that OK: said Cr r' 11'. Sc:al and his f1iiz41a1111 3. 1411) duly affiNe.d. .0.1TLAL. 9C PUINSYLVANIA. tIOTARK SEAL OAMEILE PORAM, etriyPAl6 L lftrieo ,, larairaa res Marth ...„ (Notary Seat) Notary Public; rcsiding at: My COM1311SS(071 eMpifeS: Bala Cynwvd,PA March 22.2016 IL - 1, Crai2. P. Keller, F'. iii'.' Pir,silt-att, Chief Financial Offit:er and Secretair-,,, 11-111_,API LPH INDININITY iN01.TRANCL C(I)MPA N'., do 1ii:Thy ccrtity that tht)3 g rlfl tordtitioti the 11,-,111 Direct -1's and this Potwar of A 1lornt-.7 issued J1111 33111 [hp No ar,ts IJ 14 1110 ‚.1 '".1 and arc still in hill [04'o.! and trit.r:ct, I dri further that Robed 1-.1 (1./'1_,ear/ Jr executed the Power of \3 13:4' 3":= Pre'E;ident01•3 dair: )1:(:-/..,:vi.141,),11 1.111:. 1133 113 Power Anomcy the duly elected Presideul of PII1LADELPHIA 1NDENINITY INSLIRANCE C4)1`,ThANY, FEB 0 2 2016 In T,....ctiln,nv WI1Creof 1 have 5111117,:ribed Y name and affixed 1110 fi2c. stunk seal ell eaell Cornrow; Ibis day of • 20 . Craig P.1.ellcr IFY,ectu lye Vice Pt);:sidoit, Chid -Financial. 47) (ricer Si Scorct.tary PHILADELPHIA INDEMNITY INSURANCE COMPANY MEMORANDUM TO: Frank J. Spevacek, City Manager FROM: Timothy R. Jonasson, Design and Development Director / City Engineer DATE: February 17, 2016 RE: Subdivision Improvement Agreements for the Estates Collection at Coral Mountain Development Associated with Tract Map No. 32201 Attached for your signature are the agreements with SC Homes Fund, LLC for the property referenced above. Please sign the attached agreement(s) and return it to the City Clerk for processing and distribution. Requesting department shall check and attach the items below as appropriate: NLA Contract payments will he charged to account : A Conflict of Interest Form 700 Stoternent of Economic Interests from Consultant(s) is attached with no reportable interests in LQ or reportable interests N/A A Conflict of Interest Form 700 Statement of Economic Interests is not required because this Consultant does not meet the definition in FPPC regulation 18701(4 Authority to execute this agreement is based upon: Approved by the City Council on City Manager's signature authority provided under Resolution Ho. 2015-045 for budgeted expenditures of $50,000 or less Initial. to certify that 3 written informal bids or proposals were received and considered in selection The following required documents ore attached to the agreement: Insurance certificates as required by the agreement (initialed by Risk Manager on Performance and Labor & Materials bonds as required by the agreement (crigincris) X_ City of La Ouinta Business License (copy or note number & expiration date here ti,o.y:11'p:t IL)r cr'e NJ Purchase Order number CITY OF LA QUINTA SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 32201 ON-SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this day of FEBRUARY , 20 16 by and between SC Homes Fund, LLC, a Delaware limited liability company, hereinafter referred to as "Subdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter referred to as "City." RECITALS: A. Subdivider has prepared and submitted to City for final approval and recordation a final map or Tract map (the "Map") of a unit of land in the City of La Quinta, County of Riwymide, which unit of land is known as Tract No. 32201 (the "Tract") pursuant to the provisions of Section 08418, et seq. of the California Government Code (the "Subdivision Map Act"). The Subdivision Map Act and City ordinances and regulations relating to the D|ing, approval and recordation of subdivision maps are sometimes collectively referred to in this Agreement as the "Subdivision Laws." B. A tentative map of the Tract has been approved subject to the Subdivision Laws and to the requirements and conditions contained in City Council Resolution No. 2004'O80(the "Resolution of Approva|''). The Resolution of Approval is on file in the office of the City Clerk and is incorporated into this Agreement by reference. C. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and private improvements (the lmprovements). D. The Improvements have not been installed and accepted at this time. E. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the lmprovements as provided in Section 66462 of the Subdivision Map Act. In consideration of approval of a final map for the Tract by the City Council, Subdivder desires to enter into this Agreemert, whereby Subdivider promises to install and oomp|ehe, at Subdivider's own expenee, all the public improvement work required by City in connection with the proposed Tract. Subdivider 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. Prior to submittal of the Map for approval by the City Council, Subdivider shall furnish complete original improvement plans for the onnotnuotion, 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. Subdivider shall construct the Improvements required to be constructed on the tmprovement Plans or agreed to be constructed under the Resotution of Approval and this Agreement as more specificatty 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 scheduting of construction shall be as approved by the City Engineer. 3. Improvement Security. Subdivder shall at all times guarantee Subdivider's performance of this Agreement by furnishing to City, and meintaining, good and sufficient security as required by the Subdivision Laws on forms and in the amounts approved by City for the purposes as follows: 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 |mpnovoments, payment of Subdivider's fair share of Improvements which have been or will be constructed by others ("Participatory |mpnnvemmnts^), and payment of plan check and permit 1 of 9 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 class of security to be provided by Subdividar, 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 Subdividar, 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 precedent to City Council approval of the Map. Subdivider shall provide warranty security after Improvements are complete and prior to acceptance of the Improvements by the City Council. 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 aeouhh/, and in addition to the face amount of each such oeouh<y, 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 bmttorondaonmmitmantno|iabi|ih/nadngof''F<'2^orbettmronthe|nvostmmntDatoExrhange (of the Los Angeles County Treasurers 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 deponit, 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 atmte, 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 be|onging, or in any wise apperteining, and the neomn/adons, rmmoinders, nants, innuon, 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 abate, 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 lmprovements. 2 of 9 7) When Subdivider is a non-profit organizadon, 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 seouhty, 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. 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 aoouhty, the replacement shall be filed with the City Clerk and, upon fi|ing, 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, 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 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 foliows: 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 instituUon, the administrative fee shall be One Hundred Fifty Dollars 2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will prepare lien agreements and subordination agnaements, 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 |mprovmments, 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 |mprovemanta, 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 Iesser of: 1) the amount demanded, or 2) the amount of the security. F. Security shall not mxpna, be reduced or become wholly or partially invalid for any reoson, including non-payment of pnemiuma, 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 9 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 progreuues, 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 (10Y6). 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 Acshall 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. Hovvaver, if at the end of the one-year warranty pehod, there are one or more outstanding requests by City for performance of work or provision of materials under the terms of the werranty, warranty security shall be retained until the outstanding requests are satisfied or until Subdivider 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 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 aU 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 unsuonessfu|, 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 agnaon. 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 (150Y6) 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 axouee, waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval. 6. Completion of Improvement ; Inspection. 6.1 Construction 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 data, 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 4 of 9 improvement security requirements as necessary to ensure completion of the improvamnnta, 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. 6.2 Inspection. Subdivider 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 Subdivider 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 Agpemment, 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. Subdivider shall bear all costs of plan check, inspection and certification. 7. Force Majeure. In the event that Subdivider is unable to perform within the time limits herein due to sthkeo.actofGod.oroUhereventobeyondSubdivide/snontro|.bheUme|imitaforob|igaUonsaffecb»d 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 dionreUon, 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 heneinebove, 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 e/tennion, and to provide warranty security on completed Improvements. 9. Survey Monuments. Before final approval of street improvmmonts. 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 Accetance of Improvements. At the completion of construction and prior to acceptance ofthe Improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Subdividers engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation not previously submitted. 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 apeoifioadonu, and as provided herein, obligations required by the Conditions set forth in the Resolution of Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in Paragraph 12, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council. 11. Injury to Improvements. Until such time as the Improvements are accepted by City in accordance with Paragraph 10, Subdivider 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. Subdivider 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 Subdivider. 5 of 9 12. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Subdivider shall make any necessary revisons to the original plans held by City so the plans depict the actual lmprovements 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. 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 Counci|, 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, inutaUed, constructed or caused to be done, furniahed, installed or constructed by Subdivider fails to fulfill any of the requirements of this Agreement or the improvement plans and specifications referred to herein, Subdivider 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 Subdivider fail to act promptly or in accordance with this nequinement. Subdivider hereby authorizes City, at City's sole nption, to perform the work twenty (20) days after mailing written notice of default to Subdivider and to Subidivider's Suveh/, 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 Subdivider can be nodOod. City may, in its sole discretion, make the necessary repairs or replacement or perform the necessary work and Subdivider 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 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, 15. City Riqht to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been perfonned, or commenced and diligently puroued, 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 intenae1, 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. lnjury to Public lmprovements, Public Property or Public Utility Facilities. Subdivider 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. Subdivider 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 yatiafaction, and subject to the approval, of the City Engineer. 17. Indemnification. a. Neither City nor any and all of its officia|o, employees and agents ("Indemnified Parties") shall be liable for any injury to persons or property occasioned by reason of the acts or omissions of Subdivider, its agents or employees in the performance of this Agreement. Subdivider further agrees to protect and hold harmless Indemnified Parties form any and all c|aimn, demonds, causes of action, liability or loss of any sort, inn|uding, but not limited to, attorney fees and litigation expenoeo, because of, or arising out of, acts or omissions of Subdivider, its agents or employees in the performance of this Agreement, including all daims, dmmands, causes of action, |iabi|ity, 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 aubdivision, and the public improvements as provided hevain, and in additinn, to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage oyahema, streets and other public improvements. 6my 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 Subdivider submitted to the City Engineer before approval of the particular improvement deuign, 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 abovm. City shall not be liable for any nag|igmnoe, nonfeaamnro, misfeasance or malfeasance in approving, navimvving, ohaoking, or correcting any plans or specifications or in appvoving, 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 |mp,ovementa, including without limitation the protections and immunities afforded by Government Code Section 830.6. After acceptance of the improvements, Subdivider shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect; however, Subdivider 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 Subdivider shall be responsible for all Ilability for design and construction of the Improvements installed or work done pursuant to this Agreement and that city shall not be liable for any nmg|igenno, nonfoananom, misfeasance or malfeasance in app/oving, revievving, oheokin0, or correcting any plans or specifications or in approving, reviewing or inspecting any work or construction. The Improvement Security shali 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 /\pprova|, which document(s) is (are) incorporated herein by reference, the provisions in the Conditions of Approval shali remain in effect and shali control. 19. Severability. In the event that a court of competent jurisdictiodetermines that any provision or provisions of this Agreement are unonforoeab|e, all provisions not so held shall remain in full force and effect. 20. Subdivider No Agent of City. Neither Subdivider nor any of Subdivider's aQenta, emp|nyeeu, or contractors are or shall be considered to be agents of City in connection with the performance of Subdivider's obiigations 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 mai|, return receipt nsqumsbsd, to the parties at their respective addresses indicated hereon. Notices personally delivered shall be effective upon delivery. Notices maiied 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 bermo, oonditiona, oovenante, 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. O. This Agreement shall be governed by and interpreted with respect to the laws of the State of 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. 7m, 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 Agreernent constitutes the entire agreement of the parties with respectto the subject matter. All modifiuetiona, amendmonta, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives ofthe 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 78'4Q5Calle Tampico LoOuinta.CA82253 760/777-7075 Digitally signed by Frankt Spevacek DN: serialNumberuln615nh01202carnj, ou"ank,*,°+~"rank 1. Frank J. Spevacek, City Manager ATTEST: Date Digitally signed by Susan Maysels Date: 2016.02.22 09:34:55 -08'00' SC Homes Fund, LLC, a Delaware Iimited Iiability company 10621 Civic Center Drive Rancho Cucamonga, CA 91730 By: Diversified Pa[DevebopmentGroup.LLC.aCa|ifornia|imibad|iabi|bycompeny Its: AotUnrTod/Agont.'7 .� � By: �� =��a�AJordan Title: _k4ana't)in8Menba| By: Title: Reviewed and Approved. hyR.Jot Approved as to Form: Engineer D /7— (.6 Date Date William H. Ihrke, City Attorney Date 8ofo Exhibit A SECURITY — TRACT MAP NO. 32201 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 Rough Grading $ 56,340 Street $ 149,379 Storm Drain $ 48,354 Water $ 10,900 Sewer $ 18,000 Dry Utilities $ 142,500 Landscaping $ 66,212 Monumentation $ 10,000 Totals $ 501,685 Standard 10% Contingency $ 50,168 Total Construction Cost $ 551,853 Professional Fees, Design 10% Professional Fees, Const 10% $ 55,185 $ 55,185 Bond Amount $ 662,223 9 of 9 Bond Number: PB03010402659 Premium: $9,933.00 SUBDIVISION IMPROVEMENTS Tract Map No. 32201 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of the City of La Quinta has approved the final map for Tract Map No. 32201 prior to installation of certain designated public improvements required by the Conditions Approval for the subject map, in accordance with the California Map Act (Government Code Section 66462) WHEREAS, the City Council of the City of La Quinta, State of California, and SC Homes Fund, LLC hereinafter designated as ("principal") have entered into an agreement whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated . 20 , and identified as Tract Map No. 3220J is hereby referred to and made a part hereof; and WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. NOW, THEREFORE, we, the principal and Philadelphia Indemnity lnsurance Company . as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum of Six Hundred Siw\yT*mTxouaondTwonundrm:TwnntyThnmeDOLLARS($ 662,223 00 )|mmfu|monmyof the United States, for the payment of which sum well and truly to be made, we bind ourom|veo, our heirs, successors, executors and administrators, jointly and severally, firmly by theSe presents. The condition of this obligation is such that if the above bounded principal, his or its heirs, oxecutors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless theCity, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remairi in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shaU be included costs and reasonable expenses and fees, includirig reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered, The surety hereby stipulates that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed hereunder or the specifications accompanyingthm same shafl in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications. In witness whereof, this instrument has been duly executed by the principal and surety above named, (Seal) SC Homes Fund, LLC BY: Dversified Pacific Development Group, LLC ITS: Manager Principal /mdpal an, Managing Member Title Philadelphia Indemnity Insurance Company (Seal) Signdture of Surety Michelle Haase, Attorney -In -Fact Title of Signatory 1Q8OOMacArthur Blvd, Ste. 125O Irvine, CA 92612 Address of Surety 949-252-4400 Phone # of Surety Janina Monroe Contact Person For Surety CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of (11 On Date - personally appeared I 0 -1/ Q10 -before me, bIk Here Insert Name and Title of t e Officer Wla.ffkkk A. 03.ie1 Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person A whose name is/Arg subscribed to the within instrument and acknowledged to me that he/Sige-ithey executed the same in his/ 't authorized capacity(ieS), and that by hisit signatureK on the instrument the person(), or the entity upon behalf of which the persoWacted, executed the instrument. Ob. SIMONE BASSO Commission # 1990814 Notary Public - California San Bernardino County My Comm, Expires Oct 9, 2016 Place Notary Seal Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OPTIONAL Signature of Notary Public Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document 1b;-(-6,(nlavyaz Document Date: 1,00 Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: 0 Corporate Officer — Title(s): Lil Partner —LI Limited Fl General Li Individual El Attorney in Fact 11 Trustee 0 Guardian or Conservator El Other: Signer Is Representing: 02014 National Notary Association vv.NationaINotary.org • 1 -800 -US NOTARY (1-800-876-6827) Item #5907 Signer's Name: Corporate Officer — Title(s): Lil Partner — El Limited Li General Ill Individual El Attorney in Fact Trustee II Guardian or Conservator El Other: Signer Is Representing: ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange on FEB 0 2 2016 personally appeared who proved to me on the basis of satisfactory evidence to be the person (0 whose name) is/ subscribed to the within instrument and acknowledged to me that bie/she/executed the same in kis/herbr authorized capacity(40 and that by her signatures on the instrument the person*, or the entity upon behalf of which the person* acted, executed the instrument. before me, } M. Barreras, Notary Public tliare insect name and HI., of the officer} Michelle Haase I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. frif Notary Public Signature (Notary Public Seal) ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT (Tille or description of attached document) (Title or description of attached document continued) Number of Pages Document Date CAPACITY CLAIMED BY THE SIGNER O Individual (s) O Corporate Officer (Title) o Partner(s) tia Attomey-in-Fact o Trustee(s) • Other NOIR{ 600 qb.f.)t, z M. CARRERAS Commission # 2048208 Notary Public - California Orange County Comm. F)Tires Nov 5, 2017 INSTRUCTIONS FOR COMPLETING THIS FO z z This form complies with current Cahfornia statutes regarding notary wording and, if -needed, should he completed and attached to the document. Acknobredgents front other states May he completed documents being sent to that state so long as the wording does not require the California notary to violate California notary law. * State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. * Date of notarization must be the date that the signer(s) personally appeared which must also he the same date the acknowledgment is completed. * The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization, * Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. is /we ) or circling the correct fonns. Failure to correctly indicate this information may lead to rejection of document recording. * 1he notary seal impression must be clear and photographically reproducible. impression must not cover text or lines, If seal impression smudges, re•seal if a sufficient area permits, otherwise complete a different acknowledgment form. • Signature of the notary public must match the signature on tile with the office of the county clerk. * Additional information is not required but could help to ensure this acknowledgment is not misused 01 attached to a different document. * Indicate title or type of attached document, number of pages and date, 4- Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officei, indicate the title (i.e. CEO, CFO, Secretary). * Securely attach this document to the signed document with a staple. I NC+1a"' .i.1.1? °i kla 1%`, Ti1FSF P3�T f_'.1rintnol1,R',r.Sl N( ar rlgAN ,NL3 Alir_1-1t l-:f,F' 1-Inr"„I'.L f'ab L(r--};'1 PHILADELPHIA INDEMNITY INSURANCE COMPANY St. :1,,nrh'a Rd.. Suon I+.Afo T>>.taa Cyriw d, P.\ I °AIr1,.I-,^,.rst1 Power of Attorney NTS: th51 PHIL,Al7ELPTIlr1 INDEMNITY Y INS1 R,ANCE. COMPANY uib. Compam, k,: ca li a °�I"i°enn^;,'I�ca�ri;t. J,}us ht"bea_°.' cormiunt,. ;Ind '.1p.I,:,uot:.lAi'11N.A, tlrlN}:f)E, 1-FIra6,:1:'a G. MCC A its tnuc and 113;1°11 ,R,ttt°un= yo s? on fit, -.:1 with full ;uAlhor91y- to er",_cartc no ➢1. }.;,half honti,, 1u1aieirokitir, race°1^,,19: toclrr1. 30,1 0thrAr coulrraelq ,,f °udeonotin' nnrl'.vrili ohlivatnly in the 1,t aur.° Ih ue: P', us. cr,;l in the d"tilar;07 of it 1,usinrs; ;tn,1 tca hind )h,, r'w !lAll,eny dhe..Nhv" in n3A amount nr,q tr° txcertl "r2S,U1141,1100.011 'This, Powr. r a,f rlttnril°'V is °^r<cntn31 and is ,=i�ule.rl and :(cfa1' 1 hti la:7S101 f 11ti Following R 1,llnti,l u aJ PHIL ,SDELI'1rPA 11ib)ENMITY DrSt lf'.AP1r-L (.'r °'1F',";N1' al ;a ,r,P-.tiny ii tR=, cdlPt;a:% tiu<S 1 " ai;r°v t°i'Jul)', ; (11 I . RESOLVED: lint the Pu,nrrl of Ilarc,:tt,r> 1I'F,,1.31 3119!; (,aft3 333+ Iv+; I I h 11'1°6)1 :14!1° H1 un.1'i:+1 iha Ea,.' Ihr:.4l3 tine ,.^ra 1;'}°119',,0 ohS 4 3orop333y bnwl,ir; :ind nnrl°a0,.t:ola her t iioiol, a ,hlirntor,' i3A th; 1,i u,. obter a,A" uta1,9 t ° ;,tact,,} ll,c °al ilrocic°lo: :in°L I n t , i °um, s, 21 ;wry ki,n+:, ;to -A°,' titbtiPA t3.R+,1't,e:y Pr:,+denl CO' ally 1 FURTHER RESOLVED: That the i °°1t:thtrc' nf'sozor, "i91cc1°1 such P.w+rr 1,E ,ltlr^rro-y 1,r i Vnl1i Attoon•°:c „o caF'cuir°,1 and rind hi lir,! o,lron aio^ f`°'1313 n;' it uud rr:lkncg 1,1 ti hour if i:-. ;aui h'd Con-in:n:1y ma 50c31 of oh.. :44':,4 m Fly:t t,1 Iv nn,l Pory^r 1 s.bnrl P1r 3346 3131 TF S'TII,Arr' 'r .33 IILRY'r1T, Y 17YL:>_T_nLLI°llI.A INDEMNITY 313'4IRANCF {: a"r1 1T.yl)i f1.'\.3 1 1tlSED Til! 1T STi,131' IF3'IT Tunl 1)F SIGNET, ,A1\11) EIS C+F' :SUM:7'0 NUT' 11.6;r.It".1'i:a(ti'TICE TH(S:?'"°DAY (X1 3313Rl.➢:\lt'. +11 . P.nhcrl ID (T1 ('hilad.t^ltthio I 1,k 1.3rr: rot am°z 13-r indu -radau,31 who :,:ecoa°.3,3 tiv prcccalia a irvstnion1 , oc, n!7. }1er,on313' l oowro, and he is t9aPr th*r•miut Acs'aaa}ed 1rai autll,r,u rze.9 r,11'i^:er 1,1 tlrc PH/1A DFTP111\ INT! 1IIN,13 \ 1N 1'C{:.t }. T'(tA1Sn,4\'3 ,h,i3 11;r s;t:al ,,f slxi-°1 t s:tiri in°,art 17,1Tprw,o1 91:11 01 Cr`.1i({ tion Ih:f =;r°v,1 u °,rg,rr,;rt,; >;c" ul ,and hi, .;itroalo4.vssc gs� r1[. °� COM POTI WEALT19.OF Pfi3YN9YLV AN I.C. F OTARRAL SSAL DANIELLE PORAll1,11¢tttlr}� Pubic l,oxar Me m'l ., lhantozwrrp C 3cn Arty CrrapTk4nob1 2e, 241 _ 4Alnlar=:.'.c Il ,:1,71 141[ hint ary 3113 °9i: 1061AZL R, -da 41 'nvn,a PFl Rlarch Z?. 2411r; crai . P. k1ler, Exec 3(1Pe. Vine I'resid,'11 1 l f Ti,t 33 31 rtff,: o r and SC•:n::ARC,' !,1(3111(.141- PIIIA INDENINIT`s" i i . 1P.,1NI [ ((11' 3;1,NY, do I,,.r floc 1 .331 ,n r7 ° o asolrnir of oP'tbtr 1[3,1,369 °,1" L1urm.a rra3 , tolat [lui; Pntr :t ,33 /-,33( 3'I y nsirc,i 1°orrsruaru 11-ro, ta., are trltc .;nod :°<,1,33 11 31!11 t,4i11 iv 11113 tn,r°; 7,_°r1 caTm°o: 3373! c;.utii'E3131 R.nh,.u1 I) Ci'L,,: r..Ir da'lsc,t tsrsotl:31 the PovL,er,ll'r1Ur13113 ac; Pr=>ni=4rt. vsl.,°n i}te,11¢= nf,,L,:134!.1,1,➢ th,c c131 hr.d fr°,tc1111 SA.10.1A- ;.y e1.7ctod Prr;r:1,1,:0 9°I' 1'1131..,,,DE ['311, MDT' TvIiJ11-1S1-11--ZAN F C'{ 11411 .3P,S In Tc;rilanrr,: Ll`91rr.^nf 1313'' ;13llsc.3 1331 Any 1a x°.d Ilto; len:; 711a9, se31 of eutill t'aln3P a.11y this 41rai; Fa 13, lrr. Lxr,r: I'I1ILA11) 1[13 4.3 INF4F (N111 t d, iIR.1.Na'E C(.rNIP1,1413 FEB 0 2 2OIb ,r1 1, 014,3-1 nnncinl 1aff1 :r,: Secretror" 3 MEMORANDUM TO: Frank J. Spevacek, City Manager FROM: Timothy R. Jonasson, Design and Development Director / City Engineer DATE: February 17, 2016 RE: Subdivision Improvement Agreements for the Estates Collection at Coral Mountain Development Associated with Tract Map No. 32201 Attached for your signature are the agreements with SC Homes Fund, LLC for the property referenced above. Please sign the attached agreement(s) and return it to the City Clerk for processing and distribution. Requesting department shall check and attach the items below as appropriate: NLA Contract payments will he charged to account : A Conflict of Interest Form 700 Stoternent of Economic Interests from Consultant(s) is attached with no reportable interests in LQ or reportable interests N/A A Conflict of Interest Form 700 Statement of Economic Interests is not required because this Consultant does not meet the definition in FPPC regulation 18701(4 Authority to execute this agreement is based upon: Approved by the City Council on City Manager's signature authority provided under Resolution Ho. 2015-045 for budgeted expenditures of $50,000 or less Initial. to certify that 3 written informal bids or proposals were received and considered in selection The following required documents ore attached to the agreement: Insurance certificates as required by the agreement (initialed by Risk Manager on Performance and Labor & Materials bonds as required by the agreement (crigincris) X_ City of La Ouinta Business License (copy or note number & expiration date here ti,o.y:11'p:t IL)r cr'e NJ Purchase Order number City of La Quinta CITY COUNCIL MEETING: January 19, 2016 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTION GRANTING CONDITIONAL APPROVAL OF FINAL TRACT MAP AND SUBDIVISION IMPROVEMENT AGREEMENTS ASSOCIATED WITH THE ESTATE COLLECTION AT CORAL MOUNTAIN DEVELOPMENT (TRACT MAP NO. 32201) RECOMMENDATION Adopt a resolution granting conditional approval of Final Tract Map and Subdivision Improvement Agreements for the Estate Collection at Coral Mountain Development associated with Tract Map No. 32201; and authorize the City Manager to execute said agreements. EXECUTIVE SUMMARY  SC Homes Fund, LLC. (Developer), the developer of the Estate Collection at Coral Mountain, has requested conditional approval of a Final Tract Map.  This is a ministerial action that occurs when the conditions of development are satisfied or secured through agreements. Submitting securities for the off-site and on-site improvements is the only outstanding item. The Developer has 30 days to complete this item.  The Developer has agreed to complete the conditions of development within the next 30 days, thus, staff supports the recommended action. FISCAL IMPACT None. Securities of sufficient value will be submitted to secure the incomplete improvements prior to recordation of the Final Tract Map. BACKGROUND/ANALYSIS Estate Collection at Coral Mountain is a residential development located at the northwest corner of Avenue 60 and Madison Street (Attachment 1). The Final Tract Map subdivides the property into 24 single-family lots. The site was previously rough graded. On-site street improvements, the perimeter wall, and the retention basin were partially completed by the previous developer. The Developer seeks conditional approval of the Final Tract Map (Attachment 2) and Subdivision Improvement Agreements (Attachment 3). Thereafter, the Developer has 30 days to submit securities for the off-site and on-site improvements. If the Developer fails to complete this item within 30 days, the map will be rescheduled for Council consideration only after all items are complete. CONSENT CALENDAR ITEM NO. 79 ALTERNATIVES The Council could deny conditional approval and require the Developer to complete all items; however, this would unnecessarily burden the Developer and delay the project, thus, not recommended. Prepared by: Bryan McKinney, P.E., Principal Engineer Approved by: Timothy R. Jonasson, P.E., Public Works Director/City Engineer Attachments: 1. Vicinity Map 2. Tract Map 32201 3. Subdivision Improvement Agreements 80 V I C I N I T Y M A P NOT TO SCALE ATTACHMENT 1 TRACT map no. 32201 Estate collection at coral mountain 83 85 86 87 88