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2022 - 29283 Rancho LQ - Master Assoc Assignment & Assumption SIA from TD Desert Dev. LPMEMORANDUM DATE: TO: FROM: RE: Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. Authority to execute this agreement is based upon: ___ Approved by City Council on ___________________________________________ ___ City Manager’s signing authority provided under the City’s Purchasing Police [Resolution No. 2019-021] for budget expenditures of $50,000 or less. ___ Department Director’s or Manager’s signing authority provided under the City’s Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and $5,000, respectively, or less. Procurement Method (one must apply): ___ Bid ___ RFP ___ RFQ ___ 3 written informal bids ___ Sole Source ___ Select Source ___ Cooperative Procurement Requesting department shall check and attach the items below as appropriate: ___ Agreement payment will be charged to Account No.: _____________________ ___ Agreement term: Start Date ________________ End Date ________________ ___Amount of Agreement, Amendment, Change Order, etc.: $____________________ REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual Amendments or Change Orders! ___ Insurance certificates as required by the Agreement for Risk Manager approval Approved by: ______________________________ Date: _______________ ___ Bonds (originals)as required by the Agreement (Performance, Payment, etc.) ___ Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) NOTE: Review the “Form 700 Disclosure for Consultants” guidance to determine if a Form 700 is required pursuant FPPC regulation 18701(2) ___ Business License No. __________________; Expires: __________________ ___ Requisition for a Purchase Order has been prepared (Agreements over $5,000) July 12, 2022 Monika Radeva, City Clerk Amy Yu, Associate Engineer Assignment and Assumption Agreement and Amendment to Subdivision Improvement Agreement for Tract Map 29283 ✔May 3, 2022 Consent 7 July 12, 2022 N/A Rancho La Quinta LEGAL02/41174239v1 ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 29283 This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT (“Assignment & Amendment”) is made and entered into as of the _____ day of ________________ , 20___, by and among the CITY OF LA QUINTA, a municipal corporation of the State of California (“City”), T.D. Desert Development Limited Partnership, a Delaware limited partnership (“Assignor”), and Master Association for Rancho La Quinta, a California nonprofit mutual benefit corporation (“Assignee”). RECITALS A. City and Assignor entered into that certain Subdivision Improvement Agreement, dated September 12, 2000 (“SIA”), pursuant to which Assignor, as the “Subdivider” defined in the SIA, agreed to construct or secure certain traffic signal improvements at Avenue 50 and Orchard Lane for Tract No. 29283 (“Tract”), as more fully described in Exhibit “A” of the SIA (“Improvements”). B. Assignor has sold its interest in the Tract to Assignee. In conjunction with such transfer, Assignor desires to assign the SIA, and all of Assignor’s rights and obligations thereunder, to Assignee and Assignee desire to assume Assignor’s position with respect to the SIA and all of Assignor’s rights and obligations under the SIA subject to the terms of this Assignment & Amendment. C. In connection with the foregoing described assignment and assumption, the City and Assignee have agreed to certain modifications to the SIA as set forth herein to be effective upon full execution of this Assignment & Amendment by all the parties hereto. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Assignment and Assumption. Assignor hereby transfers and assigns to Assignee all of the Assignor’s rights, title, and interest in and to, and obligations under, the SIA, and Assignee hereby assumes all rights, title, and interest in and to, and obligations under, the SIA. By execution hereof, the City hereby (i) consents to the foregoing assignment and assumption, (ii) releases Assignor of all obligations and liability under the SIA, and (iii) agrees to look solely to Assignee for the performance of the obligations of “Subdivider” under the SIA. 13 July 22 ta QuiKra -cu[VORNi%- MEMORANDUM Date: July 12, 2022 To: Monika Radeva, City Clerk From: Amy Yu, Associate Engineer Re: Performance Bond for 50% of Traffic Signal at Ave 50 and Orchard Ln for Tract Map 29283, Rancho La Quinta The Rancho La Quinta HOA is posting the following performance bond with the City for the above referenced tract: Please keep the following performance security in your file: Tract Map No. 29283 Type of Bond Bond Number Security Amount Performance UCSX372X4787 $65,000 HOA: Nena T. Rutherford-Milward Master Association for Rancho La Quinta 79285 Rancho La Quinta Dr La Quinta, CA 92253 Surety Company: United Surety Insurance Company 233 Needham Street, Ste 440 Newton, MA 02464 RECEIVED J U L L_ ! 2022 r . BY: SUBDIVISION IMPROVEMENTS UUMMr-U I CU UMIU11NI iL Bond No. UCSX372X4787 Premium: $1,950.00 Tract Map No. 29283 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of the City of La Quinta has approved the final map for Tract Map No. 29283 , prior to Installation of certain designated public improvements required by the Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code Section 66462) WHEREAS, the City Council Master Association for Rancho La Quinta whereby principal agrees to install of the City of La Quinta, State of California, and hereinafter designated as ("principal") have entered into an agreement and complete certain designated public improvements, which said agreement, dated . 20 29283 , is hereby referred to and made a part hereof; and and identified as Tract Map No. WHEREAS, said principal is required under the terms of said agreement to famish a bond for the faithful performance of said agreement, to provide 50% of traffic signal at Avenue 50 and Orchard Lane (participatory improvement). NOW, THEREFORE, we, the principal and United Surety Insurance Company _ as surety, are held and firmlyy bound unto the City of La Quinta hereinafter called ("City"), in the penal sum of Sixty-five thousand 00l100 DOLLARS ($ 65,000.00 ]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 temps 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, on March 14, 20?2 . Master Association for Rancho La Quinta Principal (Seal) Signature of Principal Title of Signatory United Surety Insurance Company Surety (Seal) Signature of Surety Kelly A. Specht, Attorney -in -fact Title of Signatory 233 Needham Street Suite 440 Newton, MA 02464 Address of Surety 617-471-1112 Phone # of Surety Casey Parker Contact Person For Surety California Ali -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 July 5, 2022 before me, Merla Fregoso, Notary Public lem of Notary Public, Tifle personally appeared Kelly A. Specht I lame ��r N/A game of Signer (2) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. MERLA FREGOSO W ITN ESS my hand an official seal.: Notary Public - California r =� Orange County Commission 0 2328451 f - _�'' My U m. Expires May 16, 2024 •L a of OPTIONAL INFORMATION ,although the information in this section is not required by lan', it could prevent fraudulent removal and reattachment of this acknowledgment to an unauthorized document and may prove useful to persons retying on file attached obcurnent. Description of Attached Document The preceding Certificate of Acknowledgment is attached to a document titled/for the purpose of ..Corrected Original Performance Bond No. UCSX372X4787 containing 2 pages, and dated March 14, 2022 The signer(s) capacity or authority is/are as: ❑ Individual(s) ❑ Attorney -in -fact ❑ Corporate Officer(s) Title(s) ❑ Guardian/Conservator ❑ Partner - Limited/General ❑ Trustee(s) ❑ Other: representing: United Sure Insurance Company Mr me(s) of P--- rson(s) rntity(ies) Signer is Representing i Method of Signer Identification Proved to me on the basis of satisfactory evidence: ❑ form(s) of identification ❑ credible witness(es) Notarial event is detailed in notary journal on: Page # Entry # Notary contact: Other ❑ Additional Signer ❑ Signer(s) Thumbprints(s) 0 _e •...,,., TL, ., I.I �.fn„�c Clnrr� r�nni D 2009-2015 Notary Learning Center - All Rights Kesel vea r ou can pul I -I r. :: a uo ", ....,,., .....• ..•. UNITED CASUALTY AND SURETY INSURANCE COMPANY US Casualty and Surety Insurance Company United Surety Insurance Company POWER OF ATTORNEY Agency No. 171372 KNOW ALL MEN BY THESE PRESENTS: That United Casualty and Surety Insurance Company, a corporation of the State of Nebraska, and US Casualty and Surety Insurance Company and United Surety Insurance Company, assumed names of United Casualty and Surety Insurance Company (collectively, the Companies), do by these presents make, constitute and appoint: Kelly A. Specht, Kandis Gregory, Richard P. Ford, Thomas C. Buckner, Michael Herranen, Bethany Mercer, William Belpedio its true and lawful Attorney(s)-in-Fact, each in theirseparate capacity if more than one is named above, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognizances, undertakings or other instruments or contracts ofsuretyship to include riders, amendments, and consents of surety. This Power of Attorney shall expire without further action on December 31', 2023. This Power of Attorney is granted under and by authority of the following resolutions adopted by the Board of Directors of the Companies at a meeting duly called and held on the 1" day of July, 1993: Resolved that the President, Treasurer, or Secretary be and they are hereby authorized and empowered to appoint Attorneys -in -Fact of the Company, in its name and as its acts to execute and acknowledge for and on its behalf as Surety any and all bonds, recognizances, contracts of indemnity, waivers of citation and all other writings obligatory in the nature thereof, with power to attach thereto the seal of the Company. Any such writings so executed by such Attorneys -in -Fact shall be binding upon the Company as ifthey had been duly executed and acknowledged by the regularly elected Officers of the Company in their own proper persons That the signature of any officer authorized by Resolutions of this Board and the Company seal maybe affixed by facsimile to any power of attorney or special power of attorney or certification of either given for the execution of any bond, undertaking, recognizance or otherwritten obligation in the nature thereof; such signature and seal, when soused being hereby adopted by the Company as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the same force and effect as though manually affixed. IN WITNESS WHEREOF, the Companies have caused this instrument to be signed and their corporate seals to be hereunto affixed, this 15th day of February, 2021. q,SYlAg rr '•. ;•'SURETY :� 1W5� - cN'°wy _ ee•oxn, .'r-: -a: rP"'0`wr :ox -.`a ySFAL Corporate Seals Commonwealth of Massachusetts County of Suffolk ss: UNITED CASUALTY AND SURETY INSURANCE COMPANY US Casualty and Surety Insurance Company United Surety Insurance Company el R. Chachkes, Treasurer On this 15th day of February, 2021, before me, Thomas R Carrigan, Jr., a notary public, personally appeared Joel R. Chachkes, Treasurer of United Casualty and Surety Insurance Company, US Casualty and Surety Insurance Company and United Surety Insurance Company, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the Commonwealth of Massachusetts that the foregoing paragraph is true and correct. WITNESS my hand and seal. ------� THOMAS P. CARMAN, A. r (Seal) r ' Notary Pubk COmm01MMe* of M8SS8d laft Thomas P. Carrigan, Jr., Notary Publ c Commission Expires: 10/31/2025 My Commission Expires October 31, 2025 I, Robert F. Thomas, Chief Operating Officer of United Casualty and Surety Insurance Company, US Casualty and Surety Insurance Company and United Surety Insurance Company do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney, executed by said Companies, which is still in full force and effect; furthermore, the resolutions of the Board of Directors, set out in the Power of Attorney are in full force and effect. In Witness Whereof, I have hereunto set my hand and affixed the seals of said Companies at Boston, Massachusetts this 5th day of July . 2022 p iuwri� 00- u�u Corporate Seals'. ,vim• ) Fr$ ,r:"'.,, @'t �• E7� SEAL ; SEAL ? 4&� SEAL' • . Robert F. Thomas, Chief Operating Officer TO CONFIRM AUTHENTICITY OF THIS BOND OR DOCUMENT EMAIL: CONFIRMBOND@UNITEDCASUALTY.COM City of La Quinta CITY COUNCIL MEETING: May 3, 2022 STAFF REPORT AGENDA TITLE: APPROVE ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP NO. 29283, RANCHO LA QUINTA, A RESIDENTIAL DEVELOPMENT LOCATED NORTH OF AVENUE 50 AND EAST OF MOON RIVER DRIVE RECOMMENDATION Approve Assignment and Assumption Agreement and Amendment to Subdivision Improvement Agreement for Tract Map No. 29283, Rancho La Quinta, and authorize the City Manager to execute said agreement EXECUTIVE SUMMARY •Tract Map No. 29283 is a residential development located north of Avenue 50 and east of Moon River Drive (Attachment 1). •T.D. Desert Development Limited Partnership has sold its interest in this tract to Master Association for Rancho La Quinta (Assignee) and desires to assign the subdivision improvement obligation for 50% of the traffic signal at Avenue 50 and Orchard Lane to the Assignee. •Assignee requests approval of Assignment and Assumption Agreement and Amendment to Subdivision Improvement Agreement (Agreement) for Tract Map No. 29283, Rancho La Quinta. FISCAL IMPACT There is no fiscal impact to the City. Assignee will be submitting a replacement security for 50% of the traffic signal at Avenue 50 and Orchard Lane. BACKGROUND/ANALYSIS In September 2000, T.D. Desert Development Limited Partnership entered into a Subdivision Improvement Agreement for Tract Map No. 29283. All improvements conditioned for this tract have been constructed except for the traffic signal at Avenue 50 and Orchard Lane. T.D. Desert Development Limited Partnership has sold its interest in this tract to Assignee. The City will release T.D. Desert Development Limited Partnership’s security for the traffic signal upon executing the Agreement (Attachment 2) and receipt of the replacement security from Assignee. CONSENT CALENDAR ITEM NO. 7 51 ALTERNATIVES Staff does not recommend an alternative. Prepared by: Amy Yu, Associate Engineer Approved by: Bryan McKinney, P.E., Public Works Director / City Engineer Attachments: 1. Vicinity Map 2. Assignment and Assumption Agreement and Amendment to Subdivision Improvement Agreement 52 V I C I N I T Y M A P NOT TO SCALE TRACT MAP NO. 29283 ORCHARD LN ATTACHMENT 1 53