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2005 - 31202-2 La Quinta Quail Run, LLC Assignment & Assumption & Amendment to SIA - from Desert Cheyenne, Inc.TWY,, 4 ZoP 12u&A-4 COUNCIL/RDA MEETING DATE: August 1, 2006 ITEM TITLE: Adoption of a Resolution to Extend the Time for Completion of On Site Improvements for a Period of One -Year for Tract Map No. 31202-2, Quail Run, Ehline Builders and Developers RECOMMENDATION: AGENDA CATEGORY: C16 BUSINESS SESSION: CONSENT CALENDAR: L STUDY SESSION: PUBLIC HEARING: Adopt a Resolution of the City Council to extend the time for completion of On -Site Improvements as specified in the approved Subdivision Improvement Agreement (SIA) for a period of one year to July 20, 2007 for Tract Map No. 31202-2, Quail Run, Ehline Builders and Developers. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Quail Run (Tract Map No. 31202-2), is located south of Avenue 52, east of Madison Street, and west of Monroe Street (Attachment 1). On April 19, 2004, the City Council approved Tentative Tract Map No. 31202-2. On July 20, 2004, the City Council adopted a resolution granting conditional approval of the Final Map and SIA for Centre Pointe. Section 6 of the SIA requires "that the subdivision improvements shall be complete within twelve months after the approval of the SIA. 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 SIA, to revise improvement security requirements as necessary to ensure completion of 11n the improvements, and/or to require modifications in the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. " In a letter dated May 22, 2006, the developer requested a time extension and provided the City with an anticipated completion date of February 1, 2007 for the remainder of the on -site improvements. Staff does not believe these improvements to be critical at this time. As a result, City staff has prepared the attached resolution which provides.for approval of the extension of the SIA. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Adopt a Resolution of the City Council to extend the time for completion of on - site improvements as specified in the approved Subdivision Improvement Agreement for a period of one year to February 1, 2007 from the original date SIA was approved for Tract Map No. 31202-2, Quail Run, Ehline Builders and Developers; or 2. Do not adopt a Resolution of the City Council to extend the time for completion of on -site improvements time as specified in the approved Subdivision Improvement Agreement for a period of one year to February 1, 2007 from the original date the SIA was approved Tract Map No. 31202-2, Quail Run, Ehline Builders and Developers; or 3. Provide staff with alternative direction. Respectfully submitted, 1 �.1:vVrci v _34rmothy ona on, P.E. Public Works Director/City Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachment: 1. Vicinity Map , RESOLUTION NO. 2006-(Clerk's Office will enter) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, GRANTING AN EXTENSION OF TIME FOR THE COMPLETION OF ON - SITE IMPROVEMENTS AS SPECIFIED IN THE APPROVED SUBDIVISION IMPROVEMENT AGREEMENT FOR A PERIOD OF ONE YEAR FOR TRACT MAP NO. 31202-2, QUAIL RUN, EHLINE BUILDERS AND DEVELOPERS, INC. WHEREAS, the City Council approved the Subdivision Improvement Agreement (SIA) for Tract Map No. 31202-2, Quail Run, Ehline Builders and Developers, Inc. on July 20, 2005; and WHEREAS, Section 6. Completion of Improvements, of the approved SIA requires that the Subdivider begin construction of the improvements within ninety days and complete the construction within twelve months after the approval of the Agreement; and WHEREAS, failure by the Subdivider to complete construction of the improvements by July 20, 2006, shall constitute cause for the City, in its sole discretion and when it deems necessary, to declare the Subdivider in default of the approved agreement; and WHEREAS, Section 8. Time Extension, of the approved SIA allows for, at the City Council's sole and absolute discretion, an extension of time for completion of the improvements with additions or revisions to the terms and conditions of the Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta, California, as follows: Section 1. The time for the completion of improvements as required by the approved SIA is extended for a period of one year. Section 2. The time extension for completing the improvements shall expire when City offices close for regular business on July 20, 2007. If the Subdivider has not completed the improvements, the City, in its sole discretion and when deems necessary, may declare the Subdivider in default of the Agreement. Section 3. The provided security amount as required in the approved SIA is satisfactory. No additional securities are required. Section 4. All other terms, responsibilities and conditions as listed In thel 14 approved SIA shall remain in full force and effect. Resolution No. 2006- Tract Map No. 31202-2, Quail Run Adopted: August 1, 2006 Page 2 PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City Council held on this 1st day of August 2006, by the following vote, to wit: AYES:Council Members (Clerk's Office will enter) NOES: ABSENT: ABSTAIN: DON ADOLPH, Mayor City of La Quinta, California ATTEST: DEBORAH H. POWELL, INTERIM CITY CLERK City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHERINE JENSON, City Attorney City of La Quinta, California Nosllc)vp 91331AIS 3 . i33A . S 3028VAO" Ul) LLI UJ 133 o .4-43P OS113 L s A ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 31202-2 This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT ("Assignment & Amendment") is made and entered into as of theq_ day of �20a5; by and among the CITY OF LA QUINTA, a municipal corporation of the State of California ("City"), DESERT CHEYENE, Inc, a California Corporation ("Assignor"), and LA QUINTA QUAIL RUN, LLC, a California Limited Liability Company ("Assignee"). RECITALS A. City and Assignor entered into that certain Subdivision. Improvement Agreement, dated July 20, 2004 ("SIA"), pursuant to which Assignor, as the "Subdivider" defined in the SIA, agreed to plan for, install, and construct certain public and/or private improvements on Tract No. 31202-2 ("Tract"), as more fully described in Exhibit "A" of the SIA ("Improvements"). B. Assignor desires to sell 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 desires to assume Assignor's position with respect to the SIA and 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. City hereby consents to the foregoing assignment and assumption. F220 2. Replacement of Improvement Security. Pursuant has furnished the City security for the Improvements in the form of: (a) A Faithful Performance Bond in the amount of $ following improvements: 1. Drainage 2. Street Improvements 3. Domestic Water 4. Sanitary Sewer 5. Dry Utilities 6. Monumentation 7. 10% Standard Contingency 8. 10% Professional Fees 9. 10% Construction Fees 10. 17% No Plans Contingency to the SIA, Assignor 1,132,830.00 for the (b) A Labor and Material Bond in the amount of $ 1,118,820.00 for the following improvements: 1. Drainage 2. Street Improvements 3. Domestic Water 4. Sanitary Sewer 5. Dry Utilities 6. 10% Standard Contingency 7. 10% Professional Fees 8. 10% Construction Fees 9. 17% No Plans Contingency For purposes of this Assignment & Assumption, such security in the aggregate shall be hereinafter referred to as "Improvement Security." Assignee hereby warrants that within five (5) days of this executed Assignment and Amendment, it shall replace Assignor's Improvement Security with security of its own in an amount equal to the Improvement Security, unless the City otherwise determines at its discretion and in writing that such security can be issued at a lesser amount. Assignee's security shall be in full compliance with the terms and conditions stated in the SIA for such security. The City agrees that upon receipt of evidence that Assignee has obtained such new security in a form satisfactory to the City, the City shall release the Original Subdivider's Improvement Security. 3. Incorporation of SIA Provisions. The SIA, and each provision therein, unless otherwise modified in writing, is incorporated in this Assignment & Amendment in its entirety and Assignee agrees and warrants that it assumes and is bound by each obligation found in the SIA in the same manner as Assignor prior to this assignment. -2- F220 IN WITNESS WHEREOF, the parties hereto have executed this Assignment & Amendment one day of .7— 2Q2 CITY: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 (760) 777-7075 /J Thomas P. Genovese City Manager l�YI ATTEST: u Greek City Clerk Date ASSIGNOR: Mr. John Pedalino Desert Cheyenne, Inc 78401 Highway 111; Ste G La Quinta, CA 92253 Title: �'�� �'�'� Date ASSIGNEE: Richard Ehline La Quinta Quail Run, LLC 81480 National Drive La Quinta, CA 92253 Title: �i "e Date -3- F220 ALL PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA } COUNTY OF RIVERSIDE )SS. On January 4, 2005 before me, CYNTHIA ANN DIAZ, NOTARY PUBLIC personally appeared RICHARD EHLINE, (or 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 acknowledge me that he/she/they executed the same in his/her/their authorized capacity(ie , and that by his/her/the' gna re(s) on the instrument the person(s), or the entit upon behalf of which the rson(s) a ted, executed the instrument. WI NE ci I sea. 4f R1VERS1DE,0UPV'Ph + �I�� `qY a�0� ,. �xp�r®� O�iDhcr afi 3Qt7a Sig (NOTARY SEAL) ATTENTION NOJARY: Although the information requested below is OPTIONAL, it could prevent fraudulent attachment of this certificate to another document. THIS CERTIFICATE MUST BE ATTACHED TO Title of Document Type ASGN & ASSUMPT. AGREEMNT THE DOCUMENT DESCRIBED AT RIGHT. Number of Pages 3 Date of Document January 4, 2005 Signer(s) Other Than Named Above DOCUMENT PROVIDED BY STEW ART TITLE OF CALIFORNIA, INC. NOTARYI.DOC ALL PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA } COUNTY OF Riverside )SS. On January 4, 2005 before me, CYNTHIA ANN DIAZ, NOTARY PUBLIC personally) appeared JOHN R. PEDALINO, personally known to me to be the person whose name' is subscribed to within instrument and acknowledged to me that he executed the same in his a on ed capacity, and that by his signature on the instrument the person, or the entit upon ehalf of which the person acted;-axe�cuted the instrument. WITLure y tand I seal qY y a Sign (NOTARY SEAL) ATTENTION NOT1 : Although the information requested below is OPTIONAL, it could V prevent fraudulent attachment of this certificate to another document. THIS CERTIFICATE MUST BE ATTACHED TO Title of Document Type ASGN & ASSUMPT. AGREEMNT THE DOCUMENT DESCRIBED AT RIGHT. Number of Pages 3 Date of Document January 4, 2005 Signer(s) Other Than Named Above DOCUMENT PROVIDED BY STEWART TITLE OF CALIFORNIA. INC. NOTARYI DOC CITY OF LA QUINTA AMENDED SUBDIVISION IMPROVEMENT AGREEMENT TRACT MAP NO. 31202-2 ON -SITE IMPROVEMENTS THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into th2iss o�vl nd day of h - DO by and between LA QUINTA QUAIL RUN, LLC. a CALIFORNIA 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 filed a final map or Tract map (the "Map") of a unit of land in the City of La Quinta, County of the provisions sofa, which unit of s Section 66410, land is et sec.known of heas Tract No. Calffo nia Government n2-2 the r Code(the pursuant "Subdivision Map Act"). B. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and private improvements (the "Improvements"). C. The Improvements have not been installed and accepted at this time. D. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the improvements as provided in Section 66462 of the Subdivision Map Act. NOW, THEREFORE, it is agreed by and between the parties hereto as follows: 1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall furnish original improvement plans meeting the requirements of the City Engineer. 2. Improve_ments• Subdivider shall construct the public and private street, drainage, utility, landscaping, and other improvements required to be constructed or agreed to be constructed under this Agreement as listed in Exhibit "A", and shall bear the full cost thereof. The methods, standards, specifications, sequence, and scheduling of construction shall be as approved by the City Engineer. Improvement Security. A. One class of security to be provided by Subdivider, hereinafter referred to as "performance security," shall assure the faithful performance of this Agreement including construction of the Improvements, payment of Subdivider's fair share of Improvements which have been or will be constructed by others ('Participatory Improvements"), and payment of plan check and permit fees. A second class of security to be provided by Subdivider, hereinafter referred to as "payment security," shall assure the payment of the cost of labor, equipment and materials supplied to construct the Improvements. A third class of security to be provided by Subdivider, hereinafter referred to as "warranty security," shall serve as a guarantee and warranty of the Improvements for a period of one year following the completion and acceptance of the Improvements. Subdivider shall furnish performance and payment security prior to and as a condition of City Council approval of the Map. Subdivider shall provide warranty security after Improvements are complete and accepted by the City Council and prior to or concurrently with the final release of performance security. Warranty security shall not be required for Monumentation or Participatory Improvements. However, the City may utilize Monumentation Security for performance of or payment for the work in accordance with the Subdivision Map Act. As part of the obligation secured by each of the performance security, payment security and warranty security, and in addition to the face amount of each such security, each such security shall include and assure the payment of costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby secured. r.__f no..<j__1 nfvlcinn\Develooment Prolects\Agreements\SIA\SIAs In Progress\Rancho Sanlans 31202-2 & Company\LQ Qua" Run Swltch\ONSITE_SIA.doc 1 of B. Improvement security shall conform to Section 66499 of the California Government Code and one or more of the following: 1) A cash deposit with City or a responsible escrow agent or trust company, at City's option. 2) Surety bonds, of the form specified in subsection 66499.2 of the California Government Code, issued 'by a surety or sureties listed in the U.S. Department of Treasury Circular 570 (latest version). 3) Certificates of deposit, in City's name, from one or more financial institutions subject to regulation by the state or federal government and having a financial quality rating of "A" or better and a commitment reliability rating of "R-2" or better on the Investment Data Exchange (of the Los Angeles County Treasurer's office). 4) Irrevocable letters of credit, issued by one or more financial institutions meeting the requirements of Paragraph (3), pledging that the funds necessary to carry out the completion of the Improvements are on deposit, guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment by any creditor of the depositor until released by City. Letters of credit shall guarantee that all or any portion of the funds available pursuant to the letters of credit will be paid upon the written demand of City and that such written demand need not present documentation of any type as a condition of payment, including proof of loss. The duration of any such letter of credit shall be for a period of not less than one year from the execution of the agreement with which it is provided and shall state, on its face, that the iration or unit s xty (60)will be adays automatically City n receives until letter of vesnotice from timethat financial institution its exp intent to allow expiration of the letter of credit. 5) A lien upon the subdivided property, if City finds that it would not be in the public interest to require the installation of the Improvements sooner than two (2) years after recordation of the final map or Tract map for which the Improvements are required. The lien shall provide a collateral value of three (3) times the estimated cost of the Improvements and shall include the power of sale of the real property, all buildings and improvements thereon, or that may be erected upon or made thereto, together with all hereditaments and appurtenances thereunto belonging, or in any wise appertaining, and the reservations, remainders, rents, issues, and profits thereof. The collateral value of the property shall be established at Subdivider's expense through an appraisal approved by City. or local any 6) An agencyument of ofthe state, eddit erral, or local governom an agency of ment provides at least Twenty Percent (20%) of ag y the financing for the Improvements. 7) When Subdivider is a non-profit organization, security may be negotiable bonds, of the kind approved for securing deposits of public moneys with City or in favor of City, as specified in Section 16430 of the California Government Code, deposited, at City's option, with City or a responsible escrow agent or trust company. C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the performance security shall equal One Hundred Percent (100%) of the estimated cost of constructing the Improvements, including payment of plan check and permit fees, as estimated by the City Engineer or a duly authorized representative of the City Engineer. The amount of Payment security shall equal the amount of the amount of performance security, except as searate security. Waranty security otherwise set forth in Exhibit A, and rsamount all be furnof ished as an epsecur security except as rotherw se set shall equal Ten Percent (10%) of e forth in Exhibit A. D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid separately for each different form and/or source (surety or financial institution) of security initially submitted and for substitution of securities but shall not be required for submittal of warranty T•�p_is t nevalooment Divislon\Development Projects\Agreements\31A\SIAS in Progress\Rancho Santana 31202.2 & Company\LQ Quail Run Switch\ONSITE SIA.doc 201 security if the warranty security is of the same form and from the same source as the performance security it replaces. Administrative fees for security shall be as follows: 1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and 4) of SECTION 3.8., which require the establishment of evidence of the reliability of the surety or financial institution, the administrative fee shall be One Hundred Fifty Dollars ($150.00). 2) For liens on real property as described in Paragraph 5) of SECTION 3.6., for which City will prepare lien agreements and subordination agreements, administer valuation of the real property and administer the agreements over the life of the lien, all of which require legal assistance and financial advice, Subdivider shall pay to City an administration fee of One Half of One Percent (0.5%) of the estimated cost of the improvements secured but not less than Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00). 3) For other forms of security listed in Section 3 B, above, there will be no administrative fee. E. Participatory Improvements, if any, are identified in Exhibit A. Security for Participatory Improvements shall remain in place until the Participatory Improvements are constructed and actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost of the Participatory Improvements, and shall guarantee the reimbursement by Subdivider of Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty security shall not be required for Participatory Improvements. Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in replacement of security guaranteeing Participatory Improvements, If Subdivider fails to deposit said cash within 30 days of the date of the written demand from City, City may present a written demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City the lesser of: 1) the amount demanded, or 2) the amount of the security. F. Security shall not expire, be reduced or become wholly or partially invalid for any reason, including non-payment of premiums, modifications of this Agreement and/or expiration of the time for performance stated in this Agreement, without express authorization from City unless the surety provides City with sixty (60) days written notice by registered or certified mail, return receipt requested. G. Security shall be released in the following manner: 1) Performance security shall be released upon the final completion and acceptance or approval, by the City Council of the Improvements subject to the provisions of paragraph B. 2) The City Engineer may authorize partial reduction of performance security as work progresses, upon application by Subdivider. However, no such reduction shall be for an amount less than Ten Percent (10%) of the total performance security provided for the faithful performance of the act or work. In no event shall security be reduced below that required to guarantee the completion of the act or work or obligation secured, plus Ten Percent (10%). The City Engineer shall not allow more than two partial reductions of security furnished for any improvement agreement. 3) P,articipatory Improvement security shall be released upon payment by Subdivider of Subdivider's share of the cost or estimated cost of the Participatory Improvements. 4) If City receives no notice of recorded claims of lien, labor and materials security shall be released in full 90 days after final acceptance and/or approval by the City Council, of the Improvements. if City receives notice of any recorded lien, the provisions of the Subdivision Map Act shall apply. 5) Warranty security not utilized during the warranty period shall be released one year after final acceptance or approval by the City Council of all Tract Improvements. However, if at the end of the one-year warranty period, there are one or more outstanding requests by City for performance of work or provision of materials under the terms of the warranty, warranty 3of� TAProlect Development Division\Development ProJects\Agreements\SIA\SIAs In Progress\Rancho Santana_31202-2 & Company\LQ Quell Run Sw1lch\0NSITE_SIA.doc security shall be retained until the outstanding requests are satisfied or until Subdivider has made other arrangements satisfactory to the City Engineer. 4, Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits required for that phase of work and pay all required fees. Work performed under a permit or permits shall comply with all provisions of the required permits. 5. Off -site Improvements. When the construction of one or more of the Improvements requires or necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its best efforts purchase such real property at a reasonable price. In the event that .Subdivider is unsuccessful, despite its best efforts, to acquire such real property at a reasonable price, Subdivider may request in writing that City attempt to acquire such real property. City may, but is not required to, agree to attempt to acquire such real property on behalf of Subdivider. If City so agrees, City and Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150%) of the appraised fair market value of the real property. Any unexpended portion of said advance shall be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall the failure of Subdivider or City to acquire such real property excuse, waive, or otherwise terminate Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the Conditions of Approval. 6. Completion of Improvements. Subdivider shall begin construction of the Improvements within ninety (90) days and shall complete construction within twelve (12) months after the approval of this Agreement. Portions of the Improvements may be completed at a later date, as determined by the City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of the Improvements within the specified time periods shall constitute cause for City, in its sole discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise improvement security requirements as necessary to ensure completion of the improvements, and/or to require modifications in the standards or sequencing of the Improvements in response to changes in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise affect the validity of this agreement or Subdivider's obligations hereunder. 7. Force Maieure. In the event that Subdivider is unable to perform within the time limits herein due to strikes, act of God, or other events beyond Subdivider's control, the time limits for obligations affected by such events will be extended by the period of such events. 8. Time Extension. Subdivider may make application in writing to the City Council for an extension of time for completion of the Improvements. The City Council, in its sole and absolute discretion, may approve or deny the request or conditionally approve the extension with additions or revisions to the terms and conditions of this Agreement. As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance to those required in SECTION 3 hereinabove, to cover the period of extension. The value of the securities shall be sufficient to ensure the performance of and payment for Improvements that remain incomplete at the time of the extension, and to provide warranty security on completed Improvements. 9. Survey Monuments. Before final approval of street improvements, Subdivider shall place survey monuments in accordance with the provisions of Sections 66495, et sec. of the Subdivision Map Act and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor setting the monuments, and intersection monument tie -outs for monuments set in public streets. 10. Final Acceptance of Improvements. At the completion of construction and prior to acceptance of the improvements by City, Subdivider shall submit a request for final approval by City. The request shall be accompanied by any required certifications from Subdivider's engineers or surveyors, approval letters from other agencies having jurisdiction over and approval authority for improvements required by this Agreement or the Conditions of Approval, and any required construction quality documentation not previously submitted. TAProlect Development Dlvlslon\Development Pro)ectMgreemenls\SIA\SIAs in Progress\Rancho Santana_31202-2 & Company\LQ Quail Run Switch\ONSITE_SIA.doc 4of7 11 12 13 14 15 Upon receipt of said request, the City Engineer or a duly -authorized representative will review the required documentation and will inspect the Improvements. If the Improvements are determined to be in accordance with applicable City standards and specifications, and as provided herein, obligations required by the Conditions of Approval and this Agreement have been satisfied, and Subdivider has provided revised plans as required in Paragraph 11, hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council. Revisions to Plans. When the Improvements have been inspected and approved by the City Engineer, Subdivider shall make any necessary revisions to the original plans held by City so the plans depict the actual Improvements constructed. When necessary revisions have been made, each separate sheet of the plans shall be clearly marked with the words "As -Built, " "As -Constructed," o "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. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one (1) year, beginning on the date of final acceptance of the Improvements by the City Council, against any defective work or labor done, or defective materials furnished, and shall repair or replace such defective work or materials. 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. Cite Right to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not been performed within sixty (60) days after written notice of default from City, then City may perform the obligation, and Subdivider shall pay the entire cost of such performance by City including costs of suit and reasonable attorney's fees incurred by City in enforcing such obligation. In cases of emergency or compelling public interest, as determined by the City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall be deemed waived and all other provisions of this Article shall remain in effect. Indemnification. Subdivider hereby binds itself, its officers, employees, agents, representatives, executors, administrators, guarantors, heirs, and assigns, and agrees to indemnify, defend and hold City and its officers, employees, agents, representatives, and assigns harmless from and against any losses, claims, demands, actions, or causes of action of any nature whatsoever, arising out of or in any way connected with Subdivider's performance herein under, including costs of suit and reasonable attorneys' fees. 16, No Modification of Conditions. This Agreement shall in no respect act to modify or amend any provision of the Conditions of Approval. In the event that any requirement or condition of this Agreement whichcdocument(s)with is r(a efails ) incorporated herein bymore reference, the provisions iinsof the Approval, Conditions of Approval shall remain in effect and shall control. 17. Severability. In the event that any provision or provisions of this Agreement are held unenforceable, all provisions not so held shall remain in full force and effect. 18, General Provisions. A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent by registered or certified mail, return receipt requested, to the parties at their respective addresses indicated hereon. Notices personally delivered shall be effective upon delivery. Notices mailed as provided herein and sent postage prepaid shall be effective upon the date of delivery or refusal indicated on the return receipt. Either party may change its address for notices hereunder by notice to the other given in the manner provided in this subparagraph. B. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto. TAProject Development Division\Development ProjectMA9reements\SIA\SIA9 in Progress\Rancho Santana_31202-2 & Company\LQ Quail Run Switch\ONSITE SIA.doc 5of7 C. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement. D. This Agreement shall be governed by and interpreted with respect to the laws of the State of California. E. In the event of any dispute between the parties with respect to this Agreement, the prevailing party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing party. F. Any failure or delay by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies provided for hereunder. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 760/777-7075� Thomas P. Genovese, City Manager Date Principal Address La Quinta Quail Run 78-900 Avenue 47, Suite 102 La Quinta, CA 92253 . _ 71-8130 �. By: 7 Title: 0 Title: Date Date Rev'ewed an Approved: Date � DS �~ Enginee ney Date T:\Project Development Division\Development Prgjects\Agreemenls\SIA\SIAs In Progress\Rancho Santana_31202-2 & Company\LQ Quail Run Switch\ONSITE_SIA.doc 8ofi Exhibit A ON -SITE SECURITY — TRACT MAP NO. 31202-2 Improvements designated as "Participatory" have been or will be constructed by others. Security for Participatory improvements shall remain in place indefinitely until called upon or released by City. Monumentation security shall guarantee performance of or payment for the work and shall be utilized or released as specified in Chapter 4, Article 9 of the Subdivision Map Act. As elements of the work are completed, Subdivider may request a maximum of two partial releases of performance security. Partial releases shall be for not less than ten percent (10%) of the total performance security for the tract and shall not reduce total performance security below the amount necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer. Requests for partial releases, setting forth in detail the amount of work completed and the value thereof, shall be made in writing to the City Engineer. Labor & materials security shall remain in place until 90 days after all required tract improvements are complete and accepted by the City Council. Improvement Description Performance Labor & Materials Grading $ $ 40,730 $ 40,730 ' Drainage Street Improvements $ 252,320 $ 252,320 176,300 Domestic Water $ $ 176,300 124,260 $ $ 124,260 Sanitary Sewer $ 148,800 $ 148,800 Dry Utilities $ 9,300 $ _ Monumentation Totals $ 751,710 $ $ 742,410 74,240 Standard 10% Contingencey $ $ ,1 826,880 0 $ 816,650 Total Construction Cost Professional Fees, Design 10% $ 82,690 $ $ 81,670 81,670 Professional Fees, Const 10% $ 82,690 No Plans Contingency 17% $ 140,570 $ 138,830 Bond Amount $ 1,132,830 $ 1,118,820 na mmnmant Division0evelopment Projects\Agreemente\SIA\SIAs in Progress\Rancho Santana_31202-2 & Company\LQ Quail Run Switch\ONSITE_SIA.doc 7of7 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of Califo ' e l ��) ss. County of OnJ l(1'1 , ,before me, Date Name a M T" of orcer (e.g.. 'Ja Doe. DNotary Public') personally appeared �i chl 6b ! i , ems) of S�(e) proved to me on the basis of satisfactory 'evidence to be the person(x) whose name6) fs are subscribed to the within instrument and JEANNENt.s7MGE acknowledged to me that t e he/they executed Commission# 1340039 a itomiia the same in i ter/their L�a thorized pubiic- rcapacity(ie and that by e'er/their g.WNotarY Riverside County fires Jan 17, 2006 signature( on the instrument the person(4d), or My Comm. p the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. �V,�O(J _ S-`cu Place Notary Sed Above L11 Signature of Notary Publc OPTIONAL Though the information below is not required by law, It may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document �� ��f h ✓L Title fi— or Type of Document: j Document Date: I — � Jb � Number of Pages: : Signer(s) Other Than Named Above l 120�'�? k S �' 6-z ti e VpS C Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual Top of thumb here ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: a 1997 NB*NW Notary AnocWm . WN De Sob Ave.. P.O. Box 24o2 • Chawworth, CA 91313.2402 Prod. No. 5907 Reorder. CA To8-Free 1-800-876-6827 OUTSTANDING BOND REPORT Name: Desert Cheyenne, Inc. (Rancho Santana) Tract No. 31202-2 Date of Contract: July 20, 2004 Required Bond Amounts: Drainage Streets Water Sewer Utilities Monumentation 10% Contingency Prof. Fees Design Prof. Fees. Construction No Plans Contingency Dates of Bond Reductions: $ 40,730 performance / labor & materials $ 252,320 same $176,300 same $124,260 same $148,800 same $ 9,300 performance only $ 75,170 / $ 74,240 $ 82,690 / $ 81,670 $ 82,690 / $ 81,670 $140,570 / $138,830 Outstanding Bonds and Bond Company: Amount: $1,132,830 SU5013317 $1,118,820 same Arch Insurance Date Cancelled/Released: BOND NUMBER: SU5013317 PREMIUM: $22,657.00 SUBDIVISION IMPROVEMENTS Parcel Map NO. TRACT NO. 31202-2 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: THAT, the City Council of the City of La Quinta has approved the final map for Parcel Map No. TRACT NO. 31202-2 , prior to installation of certain designated public improvements required by the Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code Section 66462) WHEREAS, the City Council of the City of La Quinta, State of California, and LA QU I NTA QUA I L RUN, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY hereinafter designated as ("principal") have entered into an agreement whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated , 200 , and identified as Parcel Map No. TRACT NO. 31202-is hereby referred to and made a part hereof; and WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. NOW, THEREFORE, we, the principal and ARCH INSURANCE COMPANY as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum Of ONE MILLION ONE FtNFED 1HIRTY-1%O M-OL D Elair FINDO THIRTY --DOLLARS ($ 1 ,132 ,830.00--- ) 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 therefor, 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. F201 - Performance Bond Page 1 of 2 BOND NUMBER: SU5013317 PREMIUM CHARGED IS INCLUDED IN PERFORMANCE BOND SUBDIVISION IMPROVEMENTS Parcel Map NO. TRACT NO. 31202-2 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 Parcel Map No. TRACT NO. 31202-2 , 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 LA QU I NTA QUA L RUN, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY hereinafter designated as "the principal" have entered into an agreement whereby the principal agrees to install and complete certain designated public improvements, which agreement, dated 1 200 , and identified as Parcel Map No. TRACT NO. 31202-2 , 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 payment 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 Civil Code of the State of California. NOW, THEREFORE, the principal and the undersigned as corporate surety, are held firmly bound unto the City of La Quinta and all contractors, subcontractors, laborers, materialmen, 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 ONE MILLION ONE HUNDRED EIGHTEEN THOUSAND EIGHT HUNDRED TWENTY ---DOLLARS ($ 1 ,118,820.00--- ), for materials furnished or labor thereon of any kind, or for 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 to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all 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, otherwise it shall be and remain in full force and effect. F202 - Labor and Material Bond Page 1 of 2 COUNCIL/RDA MEETING DATE: January 18, 2005 ITEM TITLE: Conditional Approval of Assignment and Assumption Agreement and Amended Subdivision Improvement Agreement for Tract Map No. 31202-2, La Quinta Quail Run, LLC RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: I01... STUDY SESSION: PUBLIC HEARING: Adopt an agreement of the City Council granting Conditional Approval of Assignment and Assumption Agreement and Amended Subdivision Improvement Agreement (ASIA) for Tract Map No. 31202-2, La Quinta Quail Run, LLC. FISCAL IMPLICATIONS: None. CHARTER CITY IMPLICATIONS: None. BACKGROUND AND OVERVIEW: Tract Map No. 31202-2 is located south of Avenue 52 and west of Monroe Street (Attachment 1). This residential development will consist of 62 residential lots on approximately 18 acres (Attachment 2). On July 1, 2003, the City Council approved Tentative Tract Map No. 31202. The developer has requested the City Council's conditional approval of the ASIA (Attachment 3) and Assignment and Assumption Agreement (Attachment 4) which will allow 30 days for completion of its processing. To date, the ASIA has been executed by the developer but the associated securities have not yet been received. The developer expects that the associated securities and all signatures will be in place within the time allowed for its conditional approval. �93 This conditional approval is contingent upon receipt within 30 days (February 17, 2005), of the associated securities. If any of the required items are not received by City staff within the specified time frame, the Assignment and Assumption Agreement and ASIA will be considered disapproved and will be rescheduled for City Council consideration only after all required items have been received. FINDINGS AND ALTERNATIVES: The alternatives available to the City Council include: 1. Adopt an agreement of the City Council granting Conditional Approval of Assignment and Assumption Agreement and Amended Subdivision Improvement Agreement for Tract Map No. 31202-2, La Quinta Quail Run, LLC; or 2. Do not adopt an agreement of the City Council granting Conditional Approval of Assignment and Assumption Agreement and Amended Subdivision Improvement Agreement for Tract Map No. 31202-2, La Quinta Quail Run, LLC; or 3. Provide staff with alternative direction. Respectfully submitted, du;blic hy R."on sson Works irecto ity Engineer Approved for submission by: Thomas P. Genovese, City Manager Attachments: 1. Vicinity Map 2. Tract Map 3. Amended Subdivision Improvement Agreement 4. Assignment and Assumption Agreement 194 0 LO ATTACHMENT I 3 195 y7ky � � •, i. h 'tip-�`• : ATTACHMENT 2 t �g e 8' 196 i ,aY < tjr.r. sit 4AM. will 1 tt Yl r y�• L ._ ., tit O�i00Q•:0l�11/� 1. 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