HomeMy WebLinkAboutRelease - TM31836-1 - Dahoon Invstmnt Cok-
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: RELEASE SECURITY FOR TRACT MAP 31836-1
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
APPLICANTS: Wilshire State Bank
3200 Wilshire Blvd.,
Los Angeles, CA 90010
Dahoon Investment Company, Inc.
77-200 California Drive
Palm Desert, CA 92211
LETTER OF
CREDIT NUMBER: S-7369-26
DATE:
CONTENTS
Recommendation
February 25, 2016
Agreement and Bonds
Vicinity Map
By Minute Motion, release security for Tract Map 31836-1.
Backqround
The subject property is located throughout Palm Desert Country Club within various
parcels between Fred Waring Drive and Hovley Lane East. At the time of permit
issuance, a letter of credit for $99,749 for sidewalk improvements was accepted. All
construction reviewed and approved for this project was completed. Staff recommends
that City Council authorize the release of the letter of credit.
Staff Report
Release Security for Tract Map 31836-1
Page 2 of 2
February 25, 2016
Fiscal Analvsis
There is no fiscal impact associated with this action.
Prepared By: Dtae/
ad:
Christina Canales, Assistant Engineer Mark GrTP
ood, .E.,
Director blic Works
Paul S. Oibson, Director of Finance
Approval:
;1
J�oh M. Wohlmuth, City Manager
I
SUBDIVISION IMPROVEMENT AGREEMENT
DATE OF AGREEMENT: gvme, , rJ �o (r,
NAME OF SUBDIVIDER: _PP , PerUcAp�lri 1 �,
(referred to as "SUnBDIVIDER").
NAME OF SUBDIVISION: P4, YQS ����1 'h C�✓ No. of Lots:
(referred to as "SUBDIVISION").
TENTATIVE MAP RESOLUTION OF APPROVAL NO.: (TM No:31
(referred to as "Resolution of Approval")
IMPROVEMENT PLANS APPROVED ON:
(referred to as "Improvement Plans").
ESTIMATED TOTAL COST OF IMPROVEMENTS:$ q 7, 747
ESTIMATED TOTAL COST OF MONUMENTATION: Af/4
I
SURETY:
BOND NOS:
SURETY: ov 44-
' -OR-
IRREVOCABLE STAND-BY LETTER OF CREDIT NO.
FINANCIAL INSTITUTION: UA Ls1uv?_ '5� TlaT C- -ba.,-Y -
-OR-
CASH/CERTIFICATE OF DEPOSIT, AGREEMENT DATED:
FINANCIAL INSTITUTION: N/4
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.
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
RMPUBIDIE11597
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 City Engineer. The Improvement Plans numbered as referenced previously in this
RMPUB\DJE11591 - 2
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 forthe 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
RMPUMDJEU597 - 3
constitutes an adequate remedy for default by the SUBDIVIDER shall be within the sole
discretion of CITY.
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 Obliaation 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.
RMPUB\DJE\1597 - -
(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, 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 Riahts-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 orgranting an extension
of time to SUBDIVIDER.
RN PUMME11597 - S -
(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 and incorporated into this
RMPUB\D1E\1597 - 6
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 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
RMPUBIDM 1597
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 improvementworkas 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 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
PMPUROJEU 597 - 8 -
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) Iniury to Public Improvements. Public Propertv 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 monuments
which are destroyed or damaged as a 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,
RMPUBIDJE11597 _ 9
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,
Agreement;
improvements;
improvements;
(1) SUBDIVIDER's failure to timely commence construction of this
(2) SUBDIVIDER's failure to timely complete construction of the
(3) SUBDIVIDER's failure to timely cure any defect in the
(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;
(6) the commencement of a foreclosure action against the
SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of
foreclosure; or
(7) SUBDIVIDER's failure to perform any other obligation under this
Agreement.
RMPUB\)JE\1597 -10 -
(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.
(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
RNIPUB\DJE11 i9i - 11 -
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 orwarrantythe 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, 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
RMPUMJE11597 - 12 -
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 Aaent 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 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
RMPUBI M1597 -13-
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 orthe migration thereof from orto any other property adjacent to,
or in the vicinity of, the property to be dedicated;
(b) Any claims made orthreatened by any third party against CITY orthe
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 Aa reements. 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 mains, or other improvements, pursuant to the
RMPUMM01597 -14 -
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 Durina Construction. Until formal
final acceptance of the improvements, SUBDIVIDER shall give good and adequatewarning
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) Vestina of Ownershio. 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 claims, demands, causes of action, liability, or loss arising out of the sole
RMPUMDMI397 -is-
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 forthe design or construction of the propertyto 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
n1PUB\DJE11597 - 16 -
be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving,
reviewing, checking, or 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 ofSUBDIVIDER'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
RMPUBUE\1597 -17 -
as determined by the City Engineer, the time for commencement of construction or
completion of the 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 Vestina of Riahts. 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:
R.11PUBOJEU597 - 18
Notice to CITY: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attn: PublicWorksDirector
Notice to SUBDIVIDER: (� C�-
Wales OeA,,gt 9zI-It
Notice to SURETY: 6UlL51uM-, S*fe,'
LoS Av)/j+ P1Ps r �-A �t oa i o
�.l A-- 3� -3200
(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.
(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) Incomoration of Recitals. The recitals to this Agreement are hereby
incorporated into in the terms of this Agreement.
RINPLIBUEUS97
(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.
IN WITNESS WHEREOF, this Agreement is executed by the parties as of the date
hereinabove first written; by CITY, by and through its Mayor.
l� CITY OF PALM DESERT
SUBDIVIDER CIS DtJevelopwanfi LL.0
U 1
- By:
SUBDIVIDER
(Proper Notarization of
SUBDIVIDER's signature is
required and shall be attached)
RMPUBI)MI591 - 2 0 -
MAYOR
ATTEST:
CITY CLERK
APPROV AS TO FORM:
Cl WATRNEY
RiNPU13W]E11597
STATE OF CALIFORNIA
Los P j ss
COUNTY OF RMSTMtDE.)
On Jr�f9:9§ , before me, a Notary Public in and for said State,
personally appeared Sa n q ,So v n ry, , personally known to me (or proved to me on
�f \J
the basis of satisfactory evidence) to be the person(s) whose name(s) iCg7,�re_subscribed
to the within instrument and acknowledged to me tha e/ elt#ey executed the same in
is heeif authorized capacity(ies), and that by is/ #fir signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
WITNESS my hand and official seal.
jtq,�-4))E --rz(,Q NOTARY PUBLIC
PAMPUBWCM760 - 2 2
AM M ,NMG
CornM *00n # 1424832
MofaY hd*-- • CcAnto
LMA%eles County
1101MVCMM- &PWO Jun 15, 20071
PROJECT:
BONDS:
CITY OF PALM DESERT
73-510 Fred Waring Drive .A
11
Palm Desert, California 92260-2578
Tel: 760 346-0611 Fax: 760 341-7098
info( .balm-desert.ora
BONDS AND FEES SUMMARY
TRACT NO. 31836-1 DATE: June 1, 2006
Faithful Performance
$
66,500.00
Labor and Materials
;
$
33,250.00
(Sidewalks)
TOTAL BONDS
$
99,750.00
SURVEY MONUMENTATION:
(Cash Deposit)
TOTAL DEPOSIT
Pd.
FEES:
Grading
$
-
Map
Pd.
Checking
$
-
Inspection
$
-
Lighting & Landscape District Formation
$
-
Park
Offset
Signalization
Pd.
Drainage
Pd.
Encroachment Permit
$
-
Fringed Toed Lizard
$
-
Transportation Uniform Mitigation Fee (T.U.M.F.)
$
-
Miscellaneous
$
-
TOTAL FEES
$
-
Prepared By: RPG
Checked By:
RPG p/,l&
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11w_CONFIRMAVON OF
1 WILSHIRE STATE L AI � CABLE TELEX OF OUR BRIEF
TRADE FINANCE DEPARTMENT
3200 Wilshire Blvd., Las Angeles, CA 90010 �������®
Telephone: (213) 387-3200 Telex: 183171
IRREVOCABLE STANDBY LETTER OF CREDIT
JUN - 9 2006
DATE OF ISSUE: JUKE 7, 2006 PUBLIC WORKS DEPARTMENT
NUMBER OF CREDIT: S-7369-26 CITY OF PALM DESERT
APPLICANT: DAHOON INVESTMENT COMPANY, INC.
77-200 CALIFORNIA DRIVE
PALM DESERT, CA 92211
BENEFICIARY: CITY OF PALM DESERT
73-510 FRED WARING DRIVE
PALM DESERT, CA 92260-2578
z. AMOUNT: US$99,749.00 '(U.S. DOLLARS NINETY NINE THOUSAND
SEVEN TrIUNDRED FORTY NINE ONLY)
A.
��' ) EXPIRATION DATE: JUKE 7, 2007 AT OUR COUNTERS
..•�.: GENTLEMEIJ; • . ,
WE HEREBY ISSUE OUR IRREVOCABLE STANDBY LETTER OF CREDIT N0: S-7369-26 IN
^^ 5 YQUR'FAVOR UP TQ AN. AGGREGATE AMOUNT OF 99,7'49.00 -(U ;S: DOLLARS NINETY
NINE T HOUSAND SEVEN $UNDRED. FORTY_ NINE ONLY); WHIG11 IS AVAILABLE FOR
PAYMENT BY, YOUR, DRAFT (S) AT -SIGHT DRAWN ON WILSHIRE•STATE3 BANK BEARING
THE GtiAU$L `DRAWN UNDER W. U S, . ESTATE BANK IRREVOCABLE STANDBY LETTER
OF CREDIT NUMBER S=7369-26 DATED JUKE 7, 2006' AND ACCOMPANIED BY DOCUMENTS
.SPECIFIED BELOW:
A. SUBDIVISION IMPROVEMENT AGREEMENT BETWEEN DAHOON INVESTMENT
COMPANY, INC. AND THE.CITY OF PALM DESERT.,
B. A WRITTEN DEMAND BY THE CITY OF PALM DESERT STATING THAT DAHOON
.- ' : INVESTYvIEIQ T COMPANY, INC. IS IN DEFAULT UNDER THE TERMS AND
CONDITIONS OF THE SUBDTVISION.IMPROVEMENT AGREEMENT
WE HEREBY AGREE. WITH YOU THAT DRAFT DRAWN UNDER AND IN COMPLIANCE WITH
THE TERkS•OI? CRtDIT WILL BE DULY HONORED, IF PRESENTED TO WII.Smm STATE
BANK AT 3,200 S
>. HIRE BLVD;S,UTI'E 500 LOS ANGELES,.CA 90010.ATTENTION: TRADE
....
FINANCE DEPARTMENT ON OR BEFOREOF B _OUR CLOSE.USINESS HOUR (3:00 PM) OF THE
ABOVE STATED. BXPIRY-RATE OR ANY EXTENDED EXPIRY DATE.
THIS CREDIT I9 SVBJECT TO UNIFORM CUSTOMS AND PRACTICE FOR.DOCUMENTARY
CREDIT (1993 REVISION) INTERNATIONAL, CHAMBER OF COMMERCE PUBLICATION
NUMBER 500.
,,KGTHORIZED SIGNATURE
TRADE FINANCE DEPARTMENT
AUT M S M Tr -NA
TRADE FINANCE DEPARI'Ivw "-
1
\MA MPG b 99
City of Palm Desert ArcIMS Map Output
TRACT NO. 31836-1 VICINITY MAP
Page 1 of 1
httn:// 10.20.2.35/servlet/eom. esri. esriman.Esriman?ServiceName=CitvOverview&ClientV ... 4/27/2006