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HomeMy WebLinkAboutPrtl Release - PM36792 - PD University Gtwy LLC STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: June 14, 2018 PREPARED BY: Christina Canales, Assistant Engineer CC, REQUEST: Accept partial improvements to Dinah Shore Drive and Portola Avenue, release a portion of security for the Millennium Project in the amount of $841,816.00 for Faithful Performance and $420,908.00 for Labor and Materials, and approve the subdivision improvement agreement. PM 36792. Recommendation By Minute Motion: 1. Accept partial improvements to Dinah Shore Drive and Portola Avenue. 2. Release a portion of security for the Millennium Project in the amount of $841,816.00 for Faithful Performance and $420,908.00 for Labor and Materials. PM 36792. 3. Approve the subdivision improvement agreement. Strategic Plan This action has no impact on the Strategic Plan. Background Analysis The Millennium project is a multi-phased, multi-use commercial and residential project located at the corner of Gerald Ford Drive and Portola Avenue. In 2015, at the time of map recordation, a subdivision improvement agreement and bonds for off-site improvements to Dinah Shore Drive and Portola Avenue in the amount of$2,906,577.00 for Faithful Performance and $1,453,288.50 for Labor and Materials were submitted for parcel map 36792. Construction for the Millennium Project has been ongoing since the submittal of bonds. In 2017, City Council approved a partial bond release of $1,453.288.00 for Faithful Performance and $726,644.00 for Labor and Materials for the offsite improvements completed up to that date, bringing the total amount held today as $1,453.288.00 for Faithful Performance and $726,644.00 for Labor and Materials. June 14, 2018 — Staff Report Accept partial improvements to Dinah Shore Drive and Portola Avenue, release a portion of security for the Millennium Project in the amount of$841,816.00 for Faithful Performance and $420,908.00 for Labor and Materials, and approve the subdivision improvement agreement. PM 36792. Page 2 of 2 Substantial work has been completed to off-site improvements since 2017. The developer has submitted a new engineer's estimate and subdivision improvement agreement that shows that they have completed $841,816.00 worth of work for Faithful Performance and $420,908.00 worth of work for Labor and Materials. Staff recommends that the City Council authorize the acceptance of partial improvements to Dinah Shore Drive and Portola Avenue, the reduction of the Faithful Performance bond in the amount of $841,816.00 worth of work for Faithful Performance and $420,908.00 worth of work for Labor and Materials, bringing the total amount to be held by the City to $611,472.00 for Faithful Performance and $305,736.00 for Labor and Materials, and approve the subdivision improvement agreement. Fiscal Analysis Per the conditions of approval for Parcel Map 36792, the developer is required to maintain the median islands on Dinah Shore Drive for five years. It is the responsibility of the City to maintain curb, gutter, sidewalks, curb ramps, and other off-site improvements within the City's right-of-way. Maintenance costs are accounted for in the operational costs budget in account number 1104310-4332000. LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER REVIEW • Ro ert . Hargrea s T othy o on, P.E. City Attorney -I depende t Ir>t rim Janet Moore Lauri Aylaian Director of Public Works Director of Finance City Manager APPLICANT: Palm Desert University Gateway, LLC 30875 Date Palm Drive, Suite C Cathedral City, California 92234 ATTACHMENTS: Bond Bond Rider Subdivision Improvement Agreement Vicinity Map CITY OF PALM DESERT STANDARD FORM SUBDIVISION FAITHFUL PERFORMANCE BOND NAME OF SUBDIVISION: The Millennium NAME OF SUBDIVIDER: Palm Desert University Gateway, LLC NAME OF SURETY: SureTec Insurance Company EFFECTIVE DATE: 05/27/2015 AMOUNT OF BOND:$2,906,577.00 BOND NUMBER: 4399817 PREMIUM: S46,192.00 KNOW ALL MEN BY THESE PRESENTS: That the person, firm, corporation, entity, or otherwise, named on line 2 above, without regard to gender and number, hereinafter referred to as PRINCIPAL, and the corporation named on Line 3 above, a corporation authorized to do business in the State of California and presently possessed of authority under Title 6 of the United States Code to do business under Sections 6 to 13 thereof, in the aggregate amounts . hereof, hereinafter referred to as SURETY, are jointly and severally held and firmly bound unto the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as CITY, in the sum mentioned on Line 6 above, for the faithful performance of that certain SUBDIVISION IMPROVEMENT AGREEMENT between PRINCIPAL and CITY regarding the subdivision named on Line 1 above, as required by the provision of the Subdivision Map Act and CITY ordinances, resolutions, rules, and regulations,for the payment of which sums well and truly to be made, PRINCIPAL and SURETY hereby bind themselves, their heirs, administrators, executors, successors and assigns,jointly and severally, firmly by these presents. The condition of the foregoing obligation is such that if the said PRINCIPAL shall faithfully perform the covenants, conditions, and agreements contained in that certain SUBDIVISION IMPROVEMENT AGREEMENT between PRINCIPAL and CITY regarding the subdivision named on LINE 1 of Page 1 hereof, which said agreement is by this reference incorporated herein, on its part to be kept and performed, in a manner and form therein specified, and shall furnish material in compliance with the specifications and perform all that certain work and improvement in said CITY which is more particularly described in said SUBDIVISION IMPROVEMENT AGREEMENT, then the obligation with respect to the faithful performance is by this reference incorporated herein. The said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the SUBDIVISION IMPROVEMENT AGREEMENT or to the work to be performed thereunder or the specifications accompanying the same shall in anywise 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 SUBDIVISION IMPROVEMENT AGREEMENT, the work, the specifications or any feature or item of performance thereunder. In the event it becomes necessary for CITY to bring an action to enforce this bond, SURETY shall pay CITY's reasonable attorney's fees and court costs in connection therewith. IN WITNESS WHEREOF, PRINCIPAL and SURETY have executed this instrument on the date mentioned on Line 4 of Page 1 hereof. PRINCIPAL'S SIG ATURE TA e-o ckay._ m.6 w_4J;rL i c/ Se./c%n PRINT NAME ?q 41 e.s e.ri u►e.:ut e� TITLE & COMPANY NAME PRINCIPAL'S SIGNATURE PRINT NAME TITLE & COMPANY NAME SureTec Insurance Company SURETY'S NAME SURETY'S SIG RE Stephanie Hoang,Attorney-in-Fact (Notarial acknowledgement of execution by ALL PRINCIPALS and SURETY must be attached.) 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 Orange -- ) On __. I Z�Ii�✓ before me. V.Copeland ,Notary Public, personally appeared _ -_ Stephanie Hoang - Nane(s)of Signer(s) vi ho 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 capacit)(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 wider PENALTY OF PERJURY under the "t„ V.COPELAND lays of the State of California that the foregoing Commissions 2016542 paragraph is true and correct. 0•••'a Notary Palk-California 44f Orange County WITNES y h d and offi 'al seal Hz Comm_ Etr�ltea Oct 24.2017 n Stgnaturc %patine of Notary uh is Ptacc Notary Scat Abo%e --- OPTIONAL -- Though the information below is not required by lay,it ma) prove valuable to persons relying on the document and could present fraudulent and reattachment of this form to another document. Description of Attached Document Type or Title of Document Document Date - Number of Pages. Signer(s)Other Than Named Above._ __ _._ _ -•___ ___ Capacity(ies)Claimed by Signer(s) Copacity(ies)Claimed by Signer(s) Signer's Name Stephanie Hoang Signer's Name. __ ❑ Individual 0 Individual ❑ Corporate Officer-Title(s). 0 Corporate Officer-Title(s): ❑ Partner ❑Limited ❑General 0 Partner ❑Limited 0 General ® Attorney in Fact ❑ Attorney in Fact ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other .._._._ ❑ Other Signer Is Representing._. Signer Is Representing __: . . .-1'. • POA M: 510006 SureTec Insurance Company LIMITED POWER OF ATTORNEY Know AII Men by These Presents, That SURETEC INSURANCE COMPANY (the "Company"), a corporation duly organized and existing under the laws of the State of Texas, and having its principal office in Houston,Harris County,Texas,does by these presents make,constitute and appoint Eric Lowey,Mark Richardson,Stephanie Hoang,Shawn Blume its true and lawful Attorney-in-fact,with full power and authority hereby conferred in ib name,place and stud,to execute,acknowledge and deliver any and all bonds,recognizances,undertakings or other Instruments or contracts of suretyship to include waivers to the conditions of contracts and consents of surety for. Five Million and 00/100 Dollars($5,000,000.00) and to bind the Company thereby as fully and to the same extent as if such bond were signed by the President,sealed with the corporate seal of the Company and duly attested by its Secretary,hereby ratifying and confirming al)that the said Attorney-in-Fact may do in the premises. Said appointment shall continue in force until 104112015 and is made under and by authority of the following resolutions of the Board of Directors of the SureTec Insurance Company: Be U Resolved that the President,any Vice-President,any Assistant Vice-President,any Secretary or any Assistant Secretary shall be and is hereby vested with full power and authority to appoint any one or more suitable persons as Attorneys)-in-Fact to represent and act for and on behalf of the Company subject to the following provisions: Attorney-In-Fact may be given full power and authority for and In the name of and of behalf of the Company,to execute,acknowledge and deliver,any and all bonds,recognizance!,contracts,agreements or indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's lability thereunder, and any such instruments so executed by any such Attorney-in-Pad shall be binding upon the Company as if signed by the President and sealed and effected by the Corporate Secretary. Be U Resolved that the signature of any authorized o®ccr and seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating thereto by facsimile,and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. (Adopted at a muting held on 2(t of April, 1444) In Witness 7tereof,,SURETEC INSURANCE COMPANY has caused these presents to be signed by its President,and its corporate seal to be hr.rete affixed this 21st day of March,A.D.2013. SURETEC INSURANCE COMPANY 4%% O # m``9\�; By: 7 y Jolty os Jr resident State of Texas ss: Comity of Hard •�.� On this 21st day of March,A.D.2013 before me personally came John Knox Jr.,to me known,who,being by me duly sworn,did depose and say,that he resides in Houston,Texas, that he is President of SURETEC INSURANCE COMPANY, the company described in and which executed the above • instrument;that be knows the seal of said Company,that the seal axed to said Instrwneat is such corporate seal;that it was so affixed by order of the . Board of Directors of said Company,and that he signed his name thereto by like order. wxtD �!-�-... ,tacoutetvr� ow�o ( state a Yu t my caw. snvtotr Jacq elyn Maldonado,Notary Public My commission expires May 18,2017 I,M.Brent Beaty,Assistant Secretary of SURETEC INSURANCE COMPANY,do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney,executed by said Company,which is still in full force and effect and furthermore,the resolutions of the Board of Directors,set out in the Power of Attorney are in full force and effect Given under my hand and the seal of said Company at Houston,Texas this 2 r day of M C1. 2.t+S_, A.D. .Bre t Beaty,Assistant ecretary Any Instrument issued In excess at the penalty stated above Is totally void and without any validity. For verification of the authority of this power you may call(713)e12-0e00 any business day between 8:00 am and 6:00 pm CST. • ACKNOWLEDGEMENT . A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document._ __1 State of California } } ss. County of X ill e r.5 ae } On Mail a R , 20• IS , before me, KC.1,j,W� H4�t.s e✓` , a Notary PbIic, personally appeared Meo art in. Selcf.'n , who proved to me on the basis of satisfactory evidence to be the person(t) whose name(p) is/axe subscribed to the within instrument and acknowledged to me that he/sheAhey executed the same in hislher/tfaair authorized capacity(ik), and that by his/hecltheir signature(13-on the instrument the person(), or the entity upon behalf of which the person 4-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. KAREN HANSEN p :� �� Commission ar 2052600 fp z :•:Yr;,x Nolar P tic- Yx I y u0 Calilornia Riverside County � r--x / M Comm.Expires Jan 16,2018 e Signature i'3GG21�1/C_— } [ CITY OF PALM DESERT STANDARD FORM SUBDIVISION PAYMENT BOND (LABOR& MATERIALS) NAME OF SUBDIVISION: The Millennium NAME OF SUBDIVIDER: Palm Desert University Gateway,LLC NAME OF SURETY: SureTec Insurance Company EFFECTIVE DATE: 0512712015 AMOUNT OF BOND: $1,453,288.50 BOND NUMBER: 4399817 PREMIUM: $46,192 00 KNOW ALL MEN BY THESE PRESENTS: That the person, firm, corporation, entity or otherwise, named on Line 2 of Page 1 hereof without regard to gender and number, hereinafter referred to as PRINCIPAL; and the corporation named on Line 3 of Page 1 hereof, a corporation authorized to do business in the State of California and presently possessed of authority under Title 6 of the United States Code to do business under Section 6 to 13 thereof in the aggregate amounts hereof, hereinafter referred to as SURETY; are jointly and severely held and firmly bound unto and all materialmen, persons, companies or corporations furnishing materials, provisions, provender or other supplies used, in, upon, for or about the performance of the work contracted to be executed or performed under the terms of that certain SUBDIVISION • IMPROVEMENT AGREEMENT hereinafter mentioned and all persons, companies or corporations renting or hiring teams or implements, or machinery, for contributing to said work to be done, all persons who performed work or labor upon the same, and all persons who supply both work and materials, and whose claim has not been paid by PRINCIPAL in the just and full sum mentioned on Line 5 of Page 1 hereof for the payment whereof, well and truly to be made, said PRINCIPAL and SURETY bind themselves, their heirs, administrators, successors and assigns,jointly and severally, firmly by these presents. THE CONDITION OF THE OBLIGATION is such that whereas the above- bounden PRINCIPAL has entered into a SUBDIVISION IMPROVEMENT AGREEMENT with the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as CITY, for the construction of public improvements in the subdivision named on Line 1 of Page 1 hereof, which said SUBDIVISION IMPROVEMENT AGREEMENT is by this reference incorporated herein: NOW, THEREFORE, if the above-bounden PRINCIPAL, contractor, person, company or corporation, or his or its subcontractor or subcontractors, fails to pay for any materials, provisions, provender, or the supplies, or teams used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work for labor, SURETY on this bond will pay the same, in an amount not exceeding the sum specified in this bond, and also, in case suit is brought on this bond, a reasonable attorney's fee which shall be awarded by the court to the prevailing party in said suit, said attorney's fee to be taxed as costs in said suit and to be included in the judgment therein rendered. This bond is executed and filed to comply with the provisions of the Subdivision Map Act; and all CITY ordinances, resolutions, rules and regulations supplemental thereto; and all amendments thereto; and shall inure to the benefit of any and all materialmen, persons, companies or corporations entitled to file claims under and by virtue of the provisions thereof. IN WITNESS WHEREOF, PRINCIPAL AND SURETY have executed this instrument the date mentioned on Line 4 of Page 1 hereof. PRINCIPAL'S SIGNATURE PRIN IPAL'S SIGNATURE rAieoclode /YJ 5164-4 PRINT NAME PRINT NAME TITLE & COMPANY NAME TITLE & COMPANY NAME SureTec Insurance Company SURETY'S NAME SURETY'S SIGNA E Stephanie Hoang,Attorney-in-Fact (Notarial acknowledgement of execution by ALL PRINCIPALS and SURETY must be attached.) 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 Counts of Orange On Si 1 / 15 before me. V.Copeland _ .Notary Public, personally appeared Stephanie Hoang Name(s)of Signer(s) 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(res), 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 v.COPELAND laws of the State of California that the foregoing , commission N 2016542 paragraph is true and correct. �;-•�_ Notary Public-California -t-r1►j Orange County WiTNES y hen and offic I scat AA Comm.E Iraa Oet 21.2017 Signature Si alive of\odsrr Public Place Notary Seal.hone -- OPTIONAL Though the information below is not required by lass.it may prose valuable to persons relying on the document and could present fraudulent and reattachment of this form to another document Description of Attached Document Type or Title of Document. _ _ _-. .•_._- N Document Date Number of Pages: Signer(s)Other Than Named Above:_.- -. _ . _ Capacity(ies)Claimed by Signer(s) Capacity(ies)Claimed by Signer(s) Signer's Name Stephanie Hoang Signer's Name' ❑ Individual 0 Individual ❑ Corporate Officer - Title(s). ❑ Corporate Officer-Title(s). _.-_- ❑ Partner❑Limited 0 General ❑ Partner❑Limited ❑General ❑ Attorney in Fact ❑ Attorney in Fact ❑ Trustee 0 Trustee ❑ Guardian or Conservator 0 Guardian or Conservator ❑ Other — ❑ Other. Signer Is Representing. Signer Is Representing Rev. 1-15 PO j: 510006 SureTec Insurance Company LIMITED POWER OF ATTORNEY Know All Men by These Presents, That SURETEC INSURANCE COMPANY(the "Company"), a corporation duly organized and existing under the laws of the State of Texas,and having its principal office in Houston, Harris County,Texas,does by these presents make,constitute and appoint Eric Lowey,Mark Richardson,Stephanie Hoang,Shawn Blume its true sod lawful Attorney-in-fact,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 of suretyship to include waivers to the conditions of contracts and consents of surety for. Five Milton and 00/100 Dollars(S5,000,000.00) and to bind the Company thereby as fully and to the same extent as if such bond were signed by the President,sealed with the corporate seal of the Company and duly attested by its Secretary,hereby ratifying and confirming all that the said Attorney-in-Fact may do in the premises. Said appointment shall continue in force until 10a112015 and is made under and by authority of the following resolutions of the Board of Directors of the SureTec Insurance Company: Be If Resolvet4 that the President,any Via-President,any Assistant Vice-President,any Secretary or any Assistant Secretary shall be and is hereby vested with full power and authority to appoint any one or more suitable persons as Attorneys)-in-Fact to represent and act for and on behalf of the Company subject to the following provbions: Anorreey-M-Fact may be given full power and authority for and in the name of and of behalf of the Company,to execute,acknowledge and deliver,any and all bonds,recognizances,contracts,agreements or indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such Instruments so executed by any such Attorney-in-Fact shall be binding upon the Company as if signed by the President and sealed and effected by the Corporate Secretary. Be U Resolved that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating thereto by facsimile,and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. (Adopted at a meeting held on 20"of April 1999.) In Wltne;s Whereof,SURETEC INSURANCE COMPANY has caused these presents to be signed by its President,and its corporate seal to be berets affixed this 21st day of March,A.D.2013. ÷SukAncF SURETEC INSURANCE COMPANY 4` = oI7 By: urn John ex Jr. resident State of Texas ss: � , -c Counv of Harris On this 21st day of March,A.D.2013 before me personally came John Knox Jr.,tome known,who,being by me duly sworn,did depose and say,that he resides in Houston, Texas,that he is President of SURETEC INSURANCE COMPANY,the company described in and which executed the above instrument;that be knows the seal.of said Company,that the seal affixed to said instrument is such corporate sal;that it was so affixed by order of the Board of Directors of said Company;and that be signed his name thereto by like order. 0 JAGQUELYN tALDONA O Notary Pubic Sala of Tana My Comm Exp.sner2017 Jacq gips Maldonado,Notary Public My commission expires May 18,2017 1,M.Brent Beaty,Assistant Secretary of SURETEC INSURANCE COMPANY,do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney,executed by said Company,which is still in full force and effect;and trrthermore,the resolutions of the Board of Directors,set out in the Power of Attorney are in full force and effect c7 L‘ p Given under my band and the seal of said Company at Houston,Texas this 01- rx day of I"i ,A-D. .Bre t Beaty,Assistant eretary Any Instrument issued In excess of the penalty stated above is totally void and without any validity. For verification of the authority of this power you may call(713)11241100 any business day between 8:00 am and 3:00 pm CST. ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } } ss. County of K,'Vers;de On g 20 �S , before me, kQ�u�,� �4�t.s e✓� ,�y a Notary Public, personally appeared Theodore M. .5elcl.p who proved to me on the basis of satisfactory evidence to be the person( whose name( is/axe subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in his/her-Abair authorized capacity(i), and that by his/herltheir signature(4)-on the instrument the person0), 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. 1UREN HANSEN (� Commission•2052600 -a.f5 11 Notary Public-California ��r1�� v— . Riverside County - Signature �~'u 4_ e21``� - M Comm EKplres Jan 16 2018 r SURETEC INSURANCE COMPANY 1330 Post Oak Blvd., Suite 1100 Houston, TX 77056 CHANGE RIDER Date: April 21, 2017 To be attached to and form a part of: Bond Number. 4399817 Principal: Palm Desert University Gateway, LLC Obligee: Said bond, issued by SureTec Insurance Company, is hereby amended as follows: Payment bond decrease to the amount of$726,644.00 And Performance bond decrease to the amount of$1,453,288.00 Effective date of rider: April 21, 2017 All other terms and conditions shall remain the same. Signed and sealed this 21st day of April 2017. SureTec Insurance Company Surety By: Eric Lowey,Attomey-in- act Change Rider rev. 1.1 06 1 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 Orange ) On /7 before me, B. Copeland .Notary Public, personally appeared Eric Lowey Name(s)of Sigma(s) tvho 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 8 COPEUWD paragraph is true and correct. = flolaryPubc-Ca. lifornia , - cow�seC County WITNESS my hand and official seal. k1 f Comm.Estes Apr 14.2011 / Signature: t aiure of Notary Public Play Notary Sral Above ((ti OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could present fraudulent and reattachment of this form to another document. Description of Attached Document Type or Title of Document- Document Date: Number of Pages: Signer(s)Other Than Named Above: Capacity(ies)Claimed by Signer(s) Capacity(ies) Claimed by Signer(s) Signer's Name Eric Lowey Signer's Name: ❑ Individual ❑ Individual ❑ Corporate Officer-Title(s): ❑ Corporate Officer-Title(s): ❑ Partner: ['Limited ❑General ❑ Partner. OLimited 0 General ® Attorney in Fact 0 Attorney in Fact ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: 0 Other: Signer Is Representing: Signer Is Representing: Rev. .-15 POAth 510006 SureTec Insurance Company LIMITED POWER OF ATTORNEY Know All Men by These Presents, That SURETEC INSURANCE COMPANY (the "Company"), a corporation duly organized and existing under the laws of the State of Texas, and having its principal office in Houston,Harris County, Texas, does by these presents make,constitute and appoint Eric Lowey,Mark Richardson,Shawn Blume,Kevin Cathcart its true and lawful Attorney-in-fact,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 of suretyship to include waivers to the conditions of contracts and consents of surety for,providing the bond penalty does not exceed Five Million and 00/100 Dollars($5,000,000.00) and to bind the Company thereby as fully and to the same extent as if such bond were signed by the President,sealed with the corporate seal of the Company and duly attested by its Secretary,hereby ratifying and confirming all that the said Attorney-in-Fact may do in the premises. Said appointment shalt continue in force until 1213112015 and is made under and by authority of the following resolutions of the Board of Directors of the SureTec Insurance Company: Be it Resolved,that the President,any Vice-President,any Assistant Vice-President,any Secretary or any Assistant Secretary shall be and is hereby vested with full power and authority to appoint any one or more suitable persons as Attomey(s)-in-Fact to represent and act for and on behalf of the Company subject to the following provisions: Attorney-in-Fact may be given full power and authority for and in the name of and of behalf of the Company,to execute,acknowledge and deliver,any and all bonds,recognizances,contracts,agreements or indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attorney-in-Fact shall be binding upon the Company as if signed by the President and sealed and effected by the Corporate Secretary. Be it Resolved that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating thereto by facsimile,and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. (Adopted at a meeting held on 2016 of April, 1999.) In Witness Whereof,SURETEC INSURANCE COMPANY has caused these presents to be signed by its President,and its corporate seal to be hereto affixed this 290i day of Marc, ,A.D. 2017. SU QF SURETEC I - ' E t eKANY Fliki 41',W ,9 ; By: F it u) John Knox ,,., 'resi' nt State of Texas ss: ,s 4 County of Harris * On this 29th day of March ,A.D.2017 before me personally came John Knox Jr.,to me known,who,being by me duly sworn,did depose and say,that he resides in Houston,Texas,that he is President of SURETEC INSURANCE COMPANY,the company described in and which executed the above instrument;that he knows the seal of said Company;that the seal affixed to said instrument is such corporate seal;that it was so,affixed by order of the Board of Directors of said Company;and that he signed his name thereto by like order. toot!!!,, XENIA CHAYE2 a'i� �cNotary Public,Stara of Texas y'.i" Comm.Expires 09-10-2020 %,,,,gt,, ° Notary Ili 129117659 X to avez,Notary Public y commission expires September 10,2020 I,M.Brent Beaty,Assistant Secretary of SURETEC INSURANCE COMPANY,do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney,executed by said Company,which is still in full force and effect;and furthermore,the resolutions of the Board of Directors,set out in the Power of Attorney are in full force and effect. Al'iven under my hand and the seal of said Company at Houston,Texas this c5 �d of 6ai1,'�; I / 7_2, ,A.D. t Be ,Assistant Se etary Any Instrument Issued In excess of the penalty stated above Is totally void and without any validity. For verification of the authority of this power you may call(713)812-0800 any business day between 8:00 am and 5:00 pm CST. N_ CI I-- IMF E IN THE CITY OF PALM DESERT,COUNTY OF RIVERSIDE,STATE OF CALIFORNIASHEET 4 OF 7 SHEETS h "`*a PARCEL MAP NO. 36792 Ill R1 h N'3 ■ :13 N 69512 E 4466' BEING A SUBDIVISION OF PORTIONS OF THE SOUTH HALF OF SECTION 28,AND THE 1-35,2) R 695114'E =Cal NORTH HALF OF SECTION 33,ALL WI NN TOWNSHIP 4 SOUTH,RANGE 6 EAST,SAN 5' BERNANpNO MERIDIAN. J 110S CONSULTING JANUARY,2015 STANLEY C.HORSE LS.3640 lilBASIS OF BEARINGS SURVEYOR'S NOTES j-r ME BEAPoNCS SN09M!1EREON ARE BASED 0 BE - -NOICA-ES FORA)Y0rUa1EN15 AS NOTED �l C443000 o OC GE3011 ,.P .B.DRI A5 00-10 B. 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C 6G CC58 CAJ, ZONE ' /, HORIZONTAL CONTROL j TO OPS STATIONS CA STATE RARE ZO[6 Val 15 MET FTET MONUMENT NOTES Q-FO040 COPPECM:J.SMPEO'15 4143,WAN,PER L,-J-FOOL COPPERAS,;.S.YPED'IS 7910'.RUSH,PER 3 -F0.+B t'P.TAGGED RCE 25651,R090,PER P.M PNB 130/10D-103 8 MIR 111/83-78,ACC.AS(M 1141 230/100-103&Ph0 211/63-78,ACC AS(M1 230/100-.f03 a PUB 191/18-21.KC AS PA.COR CERALD FORD D MC PORIC.A Art MO Pm CPR RC 33 GERALD:0I0 OB,E MO TECIN300`ORah LOT'6'P61 PA6 191/18-21. IP1 FUND CTEIOELD,STAIPED'IS 193P.RMS..PER ELI-FD.^C CCPPDARD.SOWED'IS 7133..12914.PER J-R&M 2 OP.TAGGED RCE 32162,N/5N,PER RC N6 230/130-:03 a PMB 111/63-75,ACC.AS(N' Plod 230/102-103 a PA6 21+/63-18.ACC AS BC OR 2 0/100-103,ACC.AS NE COL LOT'0 PER P16 CEPA10 FORD CA MC PA.'3FC*AMA. EC,GERYD FOB COW 230/100-103. 'I, 10.30".LION PPE.Th10..^5'.5.69r,01.10'21 It n-MVO COPP6MID.STOWED'1T 7930.RISK,PER :ice)-F360 2 IP,MCNED WE 32182.RU91,PER NC`-'' PCP P36 PIM 230/1C0-103 A RS 106/13,ACC.AS cud 230/10C-103 8 PH211/63-78,ACC.AS(NT 230/10C-103.ACC AS N6 C0R LOT'8'PER P16 t�1 KtL'JR 111C 33. OLRMD IOp ORNE MC COOK S1REE-. 110/100-103 J•FCWO CCPP61NEL0.SIMPCO'1S 4'46,1/4 S32/133 Isar, 10 -IOW;2'//4'BRASS Da SINPTED'00.1.OF TRANS, 16,-FOKC I-if,NC T9E.ON 0B.BCN',LOCATED 345E P.JSN,PER 88 323/I1-16 a WB 230/100-:03,ACC. AS LS 4430,RLS.,PER P16 230/100-103.ACC.AS • ACC.AS NIFRSECI.ON E/8 CEIOIR SEC LK NC 9'/4 CORNER.SECIM 33. (SC 51RIMINI.UP RR,RAP,PER NAB 191/18-21 I J•FC0.0 COPPERAE1O,S1AA0ED'RCE 16401,FLEA,PER illFOAC 2'/l•BRASS PSC SIAMRED'OTT OF TRANS, E-FOOL 2 IP.TAG0E0 RC(32182,11V91.PER ` 16 412/21.3'AGM 4(.0 OWN 51Ci5 06)40 ANC LS 4430 55.2180,11.09,.PER PIM 130/103•I03, PAS 170/'C0-•03,ALBS OANCR66E ICU POR-OU AVEMIE AGO.A(EC. 6] FG.NO 3/4':P,Rr#G'15 3'4t,CN DY,PLR 12 -FOAO 2 1/4'BRASS DCC S95413 DEPT Of TRANS. YB 4'2/11-11 A[[AS'1(Y•/4[DR.,SOC 78 LS 4433.11.331,PER NB(30/100-•03.ACC A 0 BC SUBDIVISION IMPROVEMENT AGREEMENT DATE OF AGREEMENT: , 20 NAME OF SUBDIVIDER: Palm Desert University Gateway, LLC ( (Referred to as "SUBDIVIDER"). NAME OF SUBDIVISION: The Millennium No. of Lots: (Referred to as "SUBDIVISION") PM TENTATIVE MAP RESOLUTION OF APPROVAL NO.: 2 coif 5 (PA-No: 51.flZ) (Referred to as"Resolution of Approval") IMPROVEMENT PLANS APPROVED ON. 11)4611) 2a415- (Referred to as Improvement Plans) ESTIMATED TOTAL COST OF IMPROVEMENTS: $ 611,472.00 ESTIMATED TOTAL COST OF MONUMENTATION: $ 25000.00 SURETY: 4399817 BOND NOS: SURETY: Sure Tec Insurance Company -OR- IRREVOCABLE STAND-BY LETTER OF CREDIT NO. FINANCIAL INSTITUTION: -OR- CASH/CERTIFICATE OF DEPOSIT, AGREEMENT DATED: FINANCIAL INSTITUTION: This Agreement is made and entered into by and between the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as "CITY', and the SUBDIVIDER. Revised - 1 - 9/1I/17 RECITALS A. SUBDIVIDER has presented to CITY for approval and recordation, a final subdivision map of a proposed SUBDIVISION pursuant to provisions of the Subdivision Map Act of the State of California and the CITY's ordinances and regulations relating to the filing, approval and recordation of subdivision maps. The Subdivision Map Act and the CITY's ordinances and regulations relating to the filing, approval and recordation of subdivision maps are collectively referred to in this Agreement as the "Subdivision Laws." B. A tentative map of the SUBDIVISION has been approved, subject to the Subdivision Laws and to the requirements and conditions contained in 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. The Subdivision Laws establish as a condition precedent to the approval of a final map that SUBDIVIDER must have complied with the Resolution of Approval and must have either (a) completed, in compliance with CITY standards, all of the improvements and land development work required by the Subdivision Laws or the Resolution of Approval or (b) have entered into a secured agreement with CITY to complete the improvements and land development within a period of time specified by CITY. D. In consideration of the approval of a final map for the SUBDIVISION by the City Council, SUBDIVIDER desires to enter into this Agreement, whereby SUBDIVIDER promises to install and complete, at SUBDIVIDER's own expense, all the public improvement work required by CITY in connection with the proposed SUBDIVISION. SUBDIVIDER has secured this Agreement by improvement security required by the Subdivision Laws and approved by the City Attorney. E. Complete Improvement Plans for the construction, installation, and completion of the improvements have been prepared by SUBDIVIDER and approved by the Revised — 2 — 9/I1/17 City Engineer. The Improvement Plans numbered as referenced previously in this Agreement are on file in the Office of the City Engineer and are incorporated into this Agreement by this 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. F. An estimate of the cost for construction of the public improvements and performing land development work in connection with the improvements according to the Improvement Plans has been made and has been approved by the City Engineer. The estimated amount is stated on Page 1 of this Agreement. The basis for the estimate is attached as Exhibit "A" to this Agreement. G. CITY has adopted standards for the construction and installation of improvements within the CITY. The Improvement Plans have been prepared in conformance with CITY standards in effect on the date of the Resolution of Approval. H. All public improvement monuments, street signs, and stakes as specified on the final map are to be completed prior to final formal acceptance by the City Council. Individual property monuments must be installed within one year from the formal final Council acceptance of said SUBDIVISION. I. SUBDIVIDER recognizes that by approval of the final map for SUBDIVISION, CITY has conferred substantial rights upon SUBDIVIDER, including the right to sell, lease, or finance lots within the SUBDIVISION. As a result, CITY will be damaged to the extent of the cost of installation of the improvements by SUBDIVIDER's failure to perform its obligations to commence construction of the improvements by the time established in this Agreement. CITY shall be entitled to all remedies available to it pursuant to this Agreement and law in the event of a default by SUBDIVIDER. It is specifically recognized that the determination of whether a reversion to acreage or rescission of the SUBDIVISION constitutes an adequate remedy for default by the SUBDIVIDER shall be within the sole discretion of CITY. Revised - 3 - 9/11/17 NOW, THEREFORE, in consideration of the approval and recordation by the City Council of the final map of the SUBDIVISION, SUBDIVIDER and CITY agree as follows: 1. SUBDIVIDER's Obligation to Construct Improvements. SUBDIVIDER shall: a. Comply with all the requirements of the Resolution of Approval, and any amendments thereto, and with the provisions of the Subdivision Laws. b. Complete at SUBDIVIDER's own expense, all the public improvement work required by the Resolution of Approval in conformance with approved Improvement Plans within one year from date of execution of this Agreement; provided however, that the improvements shall not be deemed to be completed until accepted by City Council as provided in Section (17) herein. c. Furnish the necessary materials for completion of the public improvements in conformity with the Improvement Plans. d. Acquire, or pay the cost of acquisition by CITY, and dedicate all rights-of-way, easements and other interests in real property for construction and installation of the public improvements, free and clear of all liens and encumbrances. The SUBDIVIDER's obligations with regard to acquisition by CITY of off-site rights-of- way, easements and other interests in real property shall be subject to a separate agreement between SUBDIVIDER and CITY. SUBDIVIDER shall also be responsible for obtaining any public or private sanitary sewer, domestic water, drainage, and/or utility easements or authorization to accommodate the SUBDIVISION. e. Commence construction of the improvements by the time established in Section (22) of this Agreement and complete the improvements by the deadline stated in Section (1)(b) above, Revised -4 - 9/I 1/17 unless a time extension is granted by the CITY as authorized in Section (22). f. Install all SUBDIVISION public improvement monuments required by law and prior to formal final acceptance of the public improvements by CITY. Individual property monuments shall be installed within one year of said acceptance. g. Install street name signs conforming to CITY standards. Permanent street name signs shall be installed before acceptance of the improvements by CITY. 2. Acquisition and Dedication of Easements or Rights-of-Way. If any of the public improvement and land use development work contemplated by this Agreement is to be constructed or installed on land not owned by CITY or SUBDIVIDER, no construction or installation shall be commenced before: a. The offer of dedication to CITY of appropriate rights-of-way, easements or other interests in real property, and appropriate authorization from the property owner to allow construction or installation of the improvements or work, or b. The dedication to, and acceptance by, CITY of appropriate rights- of-way, easements or other interests in real property, as determined by the City Engineer, or c. The issuance by a court of competent jurisdiction pursuant to the State Eminent Domain Law of an order of possession. SUBDIVIDER shall comply in all respects with the order of possession. Nothing in this Section (2) shall be construed as authorizing or granting an extension of time to SUBDIVIDER. Revised - 5 - 9/11/17 3. Security. SUBDIVIDER shall at all times guarantee SUBDIVIDER's performance by furnishing to CITY, and maintaining, good and sufficient security as required by the Subdivision Laws on forms approved by CITY for the purposes and in the amounts as follows: a. to assure faithful performance of this Agreement in regard to said improvements in an amount of 100% of the estimated cost of the improvements; and b. to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor and materials for the improvements required to be constructed and installed pursuant to this Agreement in the additional amount of 50% of the estimated cost of the improvements; and c. to guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by CITY against any defective work or labor done or defective materials furnished in the additional amount of 10% of the estimated cost of the improvements; and d. SUBDIVIDER shall also furnish to CITY good and sufficient security in the amount of one hundred percent (100%) of the estimated cost of setting SUBDIVISION monuments as stated previously in this Agreement in Section (1)(f) for a period of one year plus thirty (30) days from formal acceptance by the City Council. The securities required by this Agreement shall be kept on file with the City Clerk. The terms of the security documents referenced on page 1 of this Agreement are incorporated into this Agreement by this reference. If any security is replaced by another approved security, the replacement shall: 1) comply with all the requirements for security in this Agreement; 2) be provided to the City Engineer to be filed with the City Clerk and, upon filing, 3) shall be deemed to have been made a part of Revised - 6 - 9/11/17 and incorporated into this Agreement. Upon provision of a replacement security with the City Engineer and filing of a replacement security with the City Clerk, the former security may be released. 4. Alterations to Improvement Plans. a. Any changes, alterations or additions to the Improvement Plans not exceeding ten percent (10%) of the original estimated cost of the improvements, which are mutually agreed upon by CITY and SUBDIVIDER, shall not relieve the improvement security given for faithful performance of this Agreement. In the event such changes, alterations, or additions exceed 10% of the original estimated cost of the improvement, SUBDIVIDER shall provide improvement security for faithful performance as required by Section (3) of this Agreement for one hundred percent (100%) of the total estimated cost of the improvements as changed, altered, or amended, minus any completed partial releases allowed by Section (6) of this Agreement. b. The SUBDIVIDER shall construct the improvements in accordance with CITY standards in effect at the time of adoption of the Resolution of Approval. CITY reserves the right to modify the standards applicable to the SUBDIVISION and this Agreement, when necessary to protect the public safety or welfare or comply with applicable state or federal law or CITY zoning ordinances. If SUBDIVIDER requests and is granted an extension of time for completion of the improvements, CITY may apply the standards in effect at the time of the extension. 5. Inspection. SUBDIVIDER shall at all times maintain proper facilities and safe access for inspection of the public improvements by CITY inspectors and to the shops wherein any work is in preparation. Upon completion of Revised — 7 — 9/11/17 the work, 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 Agreement, then the City Engineer shall certify the completion of the public improvements to the City Council. No improvements shall be finally accepted by the City Council unless all aspects of the work have been inspected and completed in accordance with the Improvement Plans. When applicable law requires an inspection to be made by City at a particular stage of the work of constructing and installing such improvements, CITY shall be given timely notice of SUBDIVIDER's readiness for such inspection and SUBDIVIDER shall not proceed with additional work until the inspection has been made and the work approved. SUBDIVIDER shall bear all costs of inspection and certification. No improvements shall be deemed completed until accepted by the City Council pursuant to Section (17) herein. 6. Release of Securities. The securities required by this Agreement shall be released as following: a. Security given for faithful performance of any act, obligation, work or agreement shall be released upon the final completion and acceptance of the act or work, subject to the provisions of subsection (b) hereof. b. The City Engineer may release a portion of the security given for faithful performance of improvement work as the improvement progresses upon application thereof by the SUBDIVIDER; provided, however, that no such release shall be for an amount less than twenty-five percent (25%) of the total improvement security given for faithful performance of the improvement work and that the security shall not be reduced to an amount less than fifty percent (50%) of the total improvement security given for faithful Revised - 8 - 9/1 I/17 performance until final completion and acceptance of the improvement work. In no event shall the City Engineer authorize a release of the improvement security which would reduce such security to an amount below that required to guarantee the completion of the improvement work and any other obligation imposed by this Agreement. c. Security given to secure payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment shall, at six (6) months after completion and acceptance of the work, be reduced to an amount equal to no less than 125% of the total claimed by all claimants for whom liens have been filed and of which notice has been given to the CITY, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the Security. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given. d. 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 Section (10), the warranty period shall not commence until formal final acceptance of all the work and improvements by the City Council. e. CITY may retain from any security released, an amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorneys' fees. 7. Injury to Public Improvements, Public Property or Public Utilities Facilities. SUBDIVIDER shall replace or repair or have replaced or repaired, as the case may be, all public improvements, public utilities facilities and surveying or subdivision monument which are destroyed or damaged as a Revised - 9 - 9i11/17 result of any work 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 satisfaction, and subject to the approval, of the City Engineer. 8. Permits. SUBDIVIDER shall, at SUBDIVIDER's expense, obtain all necessary permits and licenses for the construction and installation of the improvements, give all necessary notices and pay all fees and taxes required by law. 9. Default of SUBDIVIDER. a. Default of SUBDIVIDER shall include, but not be limited to, (1) SUBDIVIDER's failure to timely commence construction of this Agreement; (2) SUBDIVIDER's failure to timely complete construction of the improvements; (3) SUBDIVIDER's failure to timely cure any defect in the improvements; (4) SUBDIVIDER's failure to perform substantial construction work for a period of twenty (20) calendar days after commencement of the work; (5) SUBDIVIDER's insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which SUBDIVIDER fails to discharge within thirty (30) days; the commencement of a foreclosure action Revised - 10 - 9/11/17 against the SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or (6) SUBDIVIDER's failure to perform any other obligation under this Agreement. b. CITY reserves to itself all remedies available to it at law or in equity for breach of SUBDIVIDER's obligations under this Agreement. CITY shall have the right, subject to this Section, to draw upon or utilize the appropriate security to mitigate CITY's damages in event of default by SUBDIVIDER. The right of CITY to draw upon or utilize the security is additional to and not in lieu of any other remedy available to CITY. It is specifically recognized that the estimated costs and security amounts may not reflect the actual cost of construction or installation of the improvements and, therefore, CITY's damages for SUBDIVIDER's default shall be measured by the cost of completing the required improvements. The sums provided by the improvement security may be used by CITY for the completion of the public improvements in accordance with the improvement plans and specifications contained herein. In the event of SUBDIVIDER's default under this Agreement, SUBDIVIDER authorizes CITY to perform such obligation twenty (20) days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER's surety, and agrees to pay the entire cost of such performance by CITY. CITY may take over the work and prosecute the same to completion, by contract or by any other method CITY may deem advisable, for the account and at the expense of SUBDIVIDER, and SUBDIVIDER's surety shall be liable to CITY for any excess cost or damages occasioned CITY thereby. In such event, CITY, without liability for so doing, may take possession of, and utilize in completing the work, such materials, appliances, plants and other property belonging to SUBDIVIDER as may be on the site of the work and necessary for performance of the work. Revised — I l — 9/I1/17 c. Failure of SUBDIVIDER to comply with the terms of this Agreement shall constitute consent to the filing by CITY of notice of violation against all the lots in the SUBDIVISION, or to rescind the approval or otherwise revert the SUBDIVISION to acreage. The remedy provided by this subsection (c) is in addition to and not in lieu of other remedies available to CITY. SUBDIVIDER agrees that the choice of remedy or remedies for SUBDIVIDER's breach shall be in the discretion of CITY. d. In the event that SUBDIVIDER fails to perform any obligation hereunder, SUBDIVIDER agrees to pay all costs and expenses incurred by CITY in securing performance of such obligations, including but not limited to fees and charges of architects, engineers, attorneys, other professionals, and court costs. e. The failure of CITY to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of SUBDIVIDER. 10. Warranty. SUBDIVIDER shall guarantee or warranty the work done pursuant to this Agreement for a period of one year after final formal acceptance of the SUBDIVISION by the City Council against any defective work or labor done or defective materials furnished. If within the warranty period any work or improvement or part of any work or improvement done, furnished, 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 requirement, Revised - 1? - 9/I 1/17 SUBDIVIDER hereby authorizes CITY, at CITY's option, to perform the work twenty (20) days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER's surety, and agrees to pay the cost of such work by CITY. Should CITY determine that an urgency requires repairs or replacements to be made before SUBDIVIDER can be notified, 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. 11. SUBDIVIDER Not Agent of CITY. Neither SUBDIVIDER nor any of SUBDIVIDER's agents, contractors or subcontractors are or shall be considered to be agents of CITY in connection with the performance of SUBDIVIDER'S obligations under this Agreement. 12. Iniury to Work. Until such time as the improvements are accepted by CITY, 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. 13. Environmental Warranty. Prior to the acceptance of any dedications or improvements by CITY, SUBDIVIDER shall certify and warrant that neither the property to be dedicated nor SUBDIVIDER is in violation of any environmental law and neither the property to be dedicated nor the SUBDIVIDER is subject to any existing, pending or threatened investigation by any federal, state or local governmental authority under or Revised — 13 - 9/11/17 in connection with environmental law. Neither SUBDIVIDER nor any third party will use, generate, manufacture, produce, or release, on, under, or about the property to be dedicated, any hazardous substance except in compliance with all applicable environmental laws. SUBDIVIDER has not caused or permitted the release of, and has no knowledge of the release or presence of, any hazardous substance on the property to be dedicated or the migration of any hazardous substance from or to any other property adjacent to, or in the vicinity of, the property to be dedicated. SUBDIVIDER's prior and present use of the property to be dedicated has not resulted in the release of any hazardous substance on the property to be dedicated. SUBDIVIDER shall give prompt written notice to CITY at the address set forth herein of: a. Any proceeding or investigation by any federal, state or local governmental authority with respect to the presence of any hazardous substance on the property to be dedicated or the migration thereof from or to any other property adjacent to, or in the vicinity of, the property to be dedicated; b. Any claims made or threatened by any third party against CITY or the property to be dedicated relating to any loss or injury resulting from any hazardous substance; and, c. SUBDIVIDER's discovery of any occurrence or condition on any property adjoining in the vicinity of the property to be dedicated that could cause the property to be dedicated or any part thereof to be subject to any restrictions on its ownership, occupancy, use for the purpose for which is it is intended, transferability or suit under any environmental law. 14. Other Agreements. Nothing contained in this Agreement shall preclude CITY from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreements with other subdividers for the apportionment of costs of water and sewer Revised - 14 - 9/I l/17 mains, or other improvements, pursuant to the provisions of the CITY ordinances providing therefore, nor shall anything in this Agreement commit CITY to any such apportionment. 15. SUBDIVIDER'S Obligation to Warn Public During Construction. Until formal final acceptance of the improvements, SUBDIVIDER shall give good and adequate warning to the public of each and every dangerous condition existent in said improvements, and will take all reasonable actions to protect the public from such dangerous condition. 16. Vesting of Ownership. Upon formal final acceptance of the work by CITY and recordation of the Resolution of Acceptance of Public Improvements, ownership of the improvements constructed pursuant to this Agreement shall vest in CITY. 17. Final Acceptance of Work. Acceptance of the work on behalf of CITY shall be made by the City Council upon recommendation of the City Engineer after final completion and inspection of all improvements. The City Council shall act upon the Engineer's recommendation within sixty (60) days from the date the City Engineer certifies that the work has been finally completed, as provided in Section (6). Such acceptance shall not constitute a waiver of defects by CITY. 18. Indemnity/Hold Harmless. CITY or any officer or employee thereof shall not be liable for any injury to persons or property occasioned by reason of the acts or omissions of SUBDIVIDER, its agents, or employees, contractors and subcontractors in the performance of this Agreement. SUBDIVIDER further agrees to protect, defend, indemnify and hold harmless CITY, its officials, boards and commissions, and members thereof agents and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions of SUBDIVIDER, its agents, employees, contractors and subcontractors in the performance of this Agreement, except for such Revised - 15 - 9/t 1/17 claims, demands, causes of action, liability, or loss arising out of the sole active negligence of the CITY, its officials, boards, commissions, the members thereof, agents, and employees, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the improvements. This indemnification and agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of said SUBDIVISION, and the public improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design and construction of public drainage systems, streets and other public improvements. Acceptance by CITY of the improvements shall not constitute an assumption by CITY of any responsibility for any damage or taking covered by this Section. CITY shall not be responsible for the design or construction of the property to be dedicated 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 design,which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design. After acceptance of the improvements, the 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 Section 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 Section that SUBDIVIDER shall be responsible for all liability for design and construction of the improvements installed or work done pursuant to this Agreement and that CITY shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving, reviewing, checking, or Revised - 16 - 9/I 1/17 inspecting any work or construction. The improvement security shall not be required to cover the provisions of this Section. SUBDIVIDER shall reimburse CITY for all costs and expenses (including but not limited to fees and charges of architects, engineers, attorneys, and other professionals, and court costs) incurred by CITY in enforcing the provisions of this Section. 19. Personal Nature of SUBDIVIDER'S Obligations. All of SUBDIVIDER's obligations under this agreement are and shall remain the personal obligations of SUBDIVIDER notwithstanding a transfer of all or any part of the property within the SUBDIVISION subject to this Agreement, and SUBDIVIDER shall not be entitled to assign its obligations under this Agreement to any transferee of all or any part of the property within the SUBDIVISION or to any other third party without the express written consent of CITY. 20. Sale or Disposition of SUBDIVISION. Seller or other SUBDIVIDER may request a novation of this Agreement and a substitution of security. Upon approval of the novation and substitution of securities, the SUBDIVIDER may request a release or reduction of the securities required by this Agreement. Nothing in the novation shall relieve the SUBDIVIDER of the obligations under Section (18) for the work or improvement done by SUBDIVIDER. 21. Time of the Essence. Time is of the essence in the performance of this Agreement. 22. Time for Commencement of Work; Time Extensions. SUBDIVIDER shall commence substantial construction of the improvements required by this Agreement not later than six (6) months after the date of this Agreement. In the event good cause exists as determined by the City Engineer, the time for commencement of construction or completion of the Revised — 17 — 9/1 I/17 improvements hereunder may be extended for a period or periods not exceeding a total of two (2) additional years. The extension shall be executed in writing by the City Engineer. Any such extension may be granted without notice to SUBDIVIDER's surety and shall not affect the validity of this Agreement or release the surety or sureties on any security given for this Agreement. The City Engineer shall be the sole and final judge as to whether or not good cause has been shown to entitle SUBDIVIDER to an extension. Delay, other than delay in the commencement of work, resulting from an act of CITY, act of God, or by storm or inclement weather, strikes, boycotts or similar political actions which prevents the conducting of work, which SUBDIVIDER could not have reasonably foreseen and, furthermore, were not caused by or contributed to by SUBDIVIDER, shall constitute good cause for and extension of the time for completion. As a condition of such extension, the City Engineer may require SUBDIVIDER to furnish new security guaranteeing performance of this Agreement as extended in an increased amount as necessary to compensate for any increase in construction costs as determined by the City Engineer. 23. No Vesting of Rights. Performance by SUBDIVIDER of this Agreement shall not be construed to vest SUBDIVIDER's rights with respect to any change in any zoning or building law or ordinance. 24. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States mail. Notices shall be addressed as follows unless a written change of address is filed with the City: Revised — 1 8 — 9/1 I/17 Notice to CITY: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Public Works Director Notice to SUBDIVIDER: Palm Desert University Gateway, Ll� 30875 Date Palm Drive, Ste C2 Cathedral City, CA 92234 Notice to SURETY: Sure Tec Insurance Company 952 Echo Lane Ste 450 Houston, Texas 77024 25. Compliance With Laws. SUBDIVIDER, its agents, employees, contractors and subcontractors shall comply with all federal, state and local laws in the performance of the improvements and land development work required by this Agreement. To the extent improvements to be constructed by SUBDIVIDER or under the direction of SUBDIVIDER hereunder are considered to be a public work requiring the payment of prevailing wages and compliance with other prevailing wage laws under Labor Code Sections 1720 et seq., SUBDIVIDER shall cause the contractor and subcontractors to pay prevailing wages and to comply with all other prevailing wage laws pursuant to California Labor Code Sections 1720 et seq. and implementing regulations of the California Department of Industrial Relations and comply with any other applicable provisions of Labor Code Sections 1720 et seq. and implementing regulations of the Department of Industrial Relations. SUBDIVIDER shall indemnify, defend, protect and hold harmless City, its agents, elected officials, officers, employees and independent consultants from and against any third party claim, cause of action, administrative or judicial proceeding or enforcement action of any kind arising out of or resulting from SUBDIVIDER or its contractors and subcontractors' alleged or actual Revised — 19 — 9/I I/I7 failure to comply with prevailing wage law. 26. Severability. The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties. 27. Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement. 28. Litigation or Arbitration. In the event that suit or arbitration is brought to enforce the terms of this Agreement, the prevailing party shall be entitled to litigation costs and reasonable attorneys' fees. 29. Incorporation of Recitals. The recitals to this Agreement are hereby incorporated into in the terms of this Agreement. 30. Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties. 31. Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California. 32. Jurisdiction. Jurisdiction of all disputes over the terms of this Agreement shall be in the County of Riverside, State of California. Revised - 20 - 9/1I/17 IN WITNESS WHEREOF, this Agreement is executed by the parties as of the date hereinabove first written; by CITY, by and through its Mayor. rglin OVA- Cdfas4ey SUBDIVIDER CITY OF PALM DESERT By: IVI R �/►^l��I� d��/I� LAURI AYLAIAN, CITY MANAGER SUB (Proper Notarization of SUBDIVID 's signature is required and shall be attached) ATTEST: RACHELLE D. KLASSEN, CITY CLERK APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY Revised - 7 1 - 9/11/17 ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } } ss. County of ►Z;tiec51cd2 } On fif\asA 16 , 201$ , before me, 4alef\ 1G,t e—e a Notary Public, personal) appeared Thauvt4 s J Id Khe:a \ , who proved to me on the basis of satisfactory evidence to be the person(.-rwhose names)'is/a subscribed to the within instrument and acknowledged to me that he/sheiThoy executed the same in his/her/thctr authorized capacity(ies), and that by his/her iteir signature(,.4 on the instrument the personcs4-or the entity upon behalf of which the person( cted, 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. t °'` KAREN HANSEN 'T +��'� Comm, #2225920 z • >` f Notary Public-California ' � Riverside County rti X2-12-4')/(— My Commission ExpiresJanuary 16, 2022 �=Signature - Revised - 22 - 9/11i17 MDS CONSULTING PLANNING.ENGINEERING,SURVEYING IRVINE/ PALM DESERT COST ESTIMATE PARCEL MAP 36792, City of Palm Desert PREPARED: May 20,2015 REVISED: May 3,2018 ITEM QUANTITY UNIT COST COST DINAH SHORE STREET IMPROVMENTS: CONST 5"AC OVER 10"CAB,CLASS II PAVEMENT 0 SF 3.65 $ 0 CONST CURB&GUTTER,TYPE I(8"CF)-CITY STD 102 0 LF 30 00 $ 0 CONST MEDIAN CURB,TYPE II(E CF)-CITY STD 103 0 LF 25 00 $ 0 CONST 6'CONCRETE SIDEWALK-CITY STD 104 12.752 SF 8.00 $ 102,016 CONST CONCRETE DRIVEWAY-CITY STD 105 0 EA 1,000.00 $ 0 CONST.LOCAL DEPRESSION NO 2 CASE C-RCFC STD LD201 0 EA 1,500.00 $ 0 CONST.CURB RAMP CASE"A"-CAL TRANS STD A88A 0 EA 1,500.00 $ 0 CONST CURB RAMP CASE"C"-CAL TRANS STD A88A 0 EA 1.500 00 $ 0 SAWCUT&REMOVE EXIST ASPHALT PAVING 0 SF 2.00 $ 0 INSTALL(2)6"IRRIGATION SLEEVES.SCH 40 0 LF 10.00 $ 0 INSTALL MEDIAN LANDSCAPING 17,776 SF 6.00 $ 106,656 Total Dinah Shore Street Improvements $ 208.672 PORTOLA AVENUE&GERALD FORD DRIVE CONST 8'MEANDERING SIDEWALK ALONG PORTOLA 10,640 SF 8.00 S 85.120 CONST.8'MEANDERING SIDEWALK ALONG GERALD FORD 4,800 SF 5.00 S 24,000 PERIMETER LANDSCAPING ALONG PORTOLA 22,736 SF 5.00 S 113.680 PERIMETER LANDSCAPING ALONG GERALD FORD 10,500 SF 5.00 5 52.500 CONST PAVEMENT WIDENING ON GERALD FORD AT ENTRANCE 1 LS 5.000 00 5 5.000 TO PARCEL 2 CONST DRIVEWAY APPROACH FOR PARCEL 2 2 EA 2.500 00 $ 5,000 PAINT 6"SOLID WHITE BIKE LANE.DETAIL 39 4.984 IF 1.50 $ 7.476 PAINT 6'DASHED WHITE BIKE LANE-DETAIL 39A 4,741 LF 1 50 S 7.112 PAINT"BIKE LANE,ARROW AND LEGEND-CITY STD 205 2 EA 500.00 S 1.000 Total Portola and Gerald Ford Improvements $ 300.884 Total Dinah Shore,Portola and Gerald Ford Improvements S 509,560 Contingency Fee 20% $ 101,912 TOTAL STREET IMPROVEMENT BOND ESTIMATE $ ;11 47 PARCEL MAP FINAL MONUMENTATON: PARCEL MAP FINAL SURVEY MONUMENTS 1 LS 25.000 00 $ 25.000 TOTAL MONUMENTATION CASH DEPOSIT $ 25.000 UNIT PRICES USED HEREIN ARE BASED UPON EITHER CLIENT PROVIDED INFORMATION OR FROM BEST AVAILABLE INDUSTRY DATA AT THE TIME OF PREPARATION CONSULTANT ASSUMES NO - RESPONSIBILITY FOR THE EXACTNESS OF SUCH UNIT PRICES IN . EITHER EVENT .'Q .OFESS/0 .\ PREPARED UNDER THE SUPERVISION OF ~,,t .00 C M 046 s%k i 03 No.20598 m m 61 May 3.2018 Exp.9-30-19 �; STANLEY C MORSE,R C E. 0596 DATE EXP DATE 9130/19 �I' CIV��. V. THE MILLENNIUM GHA COMPANIES PAGE 1 OF 1 CITY OF PALM DESERT G.\86902\PM 36792 DINAH SHORE EST xis