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HomeMy WebLinkAboutRelease Security - T36554-1 - Pearwood VenturesX-P CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: RELEASE SECURITY FOR TR 36554-1 (ENCORE — PHASE 1) AND ACCEPT A MAINTENANCE BOND SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works APPLICANT: Pearwood Ventures, LLC 77682 Country Club Drive, Ste. A-3 Palm Desert, CA 92211 Suretec Insurance Company Attention: Eric Lowey 151 Kalmus Drive, Ste. A201 Costa Mesa, CA 92626 BOND NUMBERS: 4392974 Faithful Performance & Labor & Materials 4392974M Maintenance Bond BOND NUMBER: 4392974 DATE: June 11, 2015 CONTENTS: Faithful Performance & Labor & Materials Agreement and Bonds Maintenance Bond Vicinity Map Recommendation By Minute Motion, release security for TR 36554-1 (Encore — Phase 1) and accept a maintenance bond. Background The subject property is located at Anastasia Streets and Shepherd Lane. Prior to permit issuance, a Faithful Performance Bond of $472,272 and a Payment Bond for Labor and Materials of $236,136 were submitted for the subdivision improvements. All improvements related to the bonds have been completed. A Maintenance Bond in the amount of $47,227 representing 10 percent of the Faithful Performance Bond has been submitted and will be held for one year as required by the municipal code. Staff Report Release Security for TR 36554-1 (Encore — Phase 1) and Accept a Maintenance Bond Page 2 of 2 June 11, 2015 Staff recommends that the City Council authorize the release of the faithful performance and labor and materials deposits and accept the maintenance bond for one year. Fiscal Analysis There is no fiscal impact associated with this action. Prepared By: Departrr Bo Chen, P.E., City Engineer Mark Gr Director aul S. Gibson, Director of Finance M. Wohlmuth, City Manager vood, P.E., ublic Works I I I Y Of PRIM OESERI 73-510 FRED WARING DRIVE PALM DESERT, CALIFORN[A 92260-2578 TEL: 760 346-o61 i Info®cityofpalmdesert.org December 20, 2013 Mr. Mario Gonzalez GHA Communities 30-875 Date Palm Drive Cathedral City, California 92234 Dear Mr. Gonzalez: Subject: Request for Approval of the Final Subdivision Mau of Tract No. 36554-1 and the Related Improvement Agreement At its regular meeting of December 12, 2013, the Palm Desert City Council considered the subject request and took the following action: Waived further reading and adopted Resolution No. 201 -70, approving the final subdivision map of Tract No. 36554-1 and the related Improvement Agreement. Enclosed for your records are fully executed copies of Resolution No. 2013-70 and the related Subdivision Improvement Agreement. If you have any questions or require any additional information, please do not hesitate to contact us Sincerely, Od -7MM-V;�,ZooCITY CLERK RDK:mgs Enclosures (as noted) cetenc: Mark Greenwood, P.E., Public Works Director Pearwood Ventures LLC, 77-682 Country Club Drive, Suite A3, Palm Desert, CA RESOLUTION NO.2013- 70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA. APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 36554-1 AND THE RELATED IMPROVEMENT AGREEMENT BE IT HEREBY RESOLVED by the City Council of Palm Desert, as follows: 1. The Final Subdivision Map of Tract 36554-1 of City of Palm Desert, California, is hereby approved as the official subdivision map of said tract, subject to conditions of the Tentative Map. 2. The Mayor and City Clerk are authorized to execute on behalf of the City a Subdivision Improvement Agreement guaranteeing completion of the public improvements required by law. 3. The City Engineer is authorized to receive the improvement security on behalf of the City, as required by law, subject to the approval of the City Attorney as to form. 4. The City Engineer is directed to process the Final Map for recording upon receipt of the required improvement security and the payment of all fees. PASSED, APPROVED, AND ADOPTED on this 12t' day of December 2013 by the following vote, to wit: AYES: BENSON, NUMM, SPIEGEL, and WEBER NOES: Ron ABSENT: TA=m ABSTAIN: NONE SUSAN MARIE WEBER, MAYOR PRO TEN ATTEST: HELLE 0. KLASS ,CITY CLER CITY OF PALM DESERT, CALIFORNIA SUBDIVISION IMPROVEMENT AGREEMENT DATE OF AGREEMENT: November 22, 20 i3 NAME OF SUBDIVIDER: Pearwood Ventures LLC (referred to as "SUBDIVIDER"). NAME OF SUBDIVISION: Encore Palm Desert No. of Lots: 16 (referred to as "SUBDIVISION"). TENTATIVE MAP RESOLUTION OF APPROVAL NO.: 2605 (TM No: 36554 ) (referred to as "Resolution of Approval") IMPROVEMENT PLANS APPROVED ON: OC �oLx�y- Z S, Zo 13 (referred to as "Improvement Plans"). ESTIMATED TOTAL COST OF IMPROVEMENTS:$ 4 7 2, 2 -7 Z, O O ESTIMATED TOTAL COST OF MONUMENTATION: 141 4 ao. 00 SURETY: BOND NOS:4392974 SURETY: SureTec 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. RECITALS Ll7�I;1,:1 Tj �lii] 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. WUMM1597 -2- 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 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. 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 Constnxt 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 RhU%M u M"7 - 4 - 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 xb) 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) Acauisition 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. (3) S curs 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 0 (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 xf) 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 Cleric and, upon filing, 3) shall be deemed to have been made a part of 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• • • -=111=11 -1= (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 properfacilities 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 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 MeMM1597 -8 - 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 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 attomeys' tees. (7) Iniury 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 monuments R&OUHIDMIS97 -9- 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, 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 workfor 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; RbWUBOMIN7 -10- (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. (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 MOUVO su97 -11- 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 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) Warran . 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 RMPUR MM -12 - 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 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 ClTY. 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 RMPUW MI397 -13 - 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 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. RhOMM I "I -14 - 0 4) Other Aareements. 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 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, RNUUMM1597 -15- 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 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 R&GKIM 597 -16 - 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 inspecting any work or constriction. 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 rat 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 SUBDIVIDEKS Obikiations. 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 shaA relieve the SUBDIVIDER of the obligations under Section (18) for the work or improvement done by SUBDIVIDER. RMUMM1597 -1�- (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 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 shag not be construed to vest SUBDIVIDER's rights with respect to any change in any zoning or building law or ordinance. RmpuanmiN7 -18- (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: Notice to CITY: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Public Works Director Notice to SUBDIVIDER: Pearwood Ventures LLC 77682 Country Club Drive Suite A3 Palm Desert, CA 92211 Notice to SURETY: SureTec Insurance Comany do Pinnacle Surety 151 Kalmus Dr.; Suite A201 Costa Mesa, CA 92626 (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. MOUMMS97 -19 - (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 attomeys' fees. (29) Incorporation of Recitals. The recitals to this Agreement are hereby incorporated Into In the terns 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. RMPUB\DMI"7 - 2 0 - IN WITNESS WHEREOF, this Agreement is executed by the parties as of the date hereinabove first written; by CITY, by and through Its Mayor. PEARWOOD VENTURES LLC By: j4k SUBI)NIMR$1.,,r•� CI,�;,., �, SUBDIVIDER (Proper Notarization of SUBDIVIDER's signature is required and shall be attached) RhUVOMMM CITY OF PALM DESERT '-", �wx� MAYOR ATTEST: APPRO\TD S TO FORM: CITY ATTORNEY CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Rivprf idP On December 17, 2011before me, M. G. Sanchez, Notnry Public BW_Han 1100 Name and Tft al Ya oftw personally appeared Van G. Tanner --------------------------- Namaia) of 80"e) M. G. SANCHEZ Commission f 1905339 • Notary Public - Callfornia Riverside County My Comm, Ex lees Oct 29.201 Plena W" sw m " who proved to me on the basis of satisfactory evidence to be the person(p) whose name(A) is/gfe subscribed to the within instrument and acknowledged to me that he/stje M99 executed the same in hislh 0)eir authorized capacity(lpd), and that by hi"r/tVeir signature() on the instrument the persons), or the entity upon behalf of which the personp) 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 offleiabseal. Signature: OPTIONAL I Through the 10ftnatlon below is rwt required bylaw, It may prove vahm a to per s fwng on N and could prevent fraudulent removal and reattachment of tins another abcumei Description of Attached Document Subdivision Tmprovament Agreement Title or Type of Document: Per:rwood Venturan, LLC -- TM 36554-1 Document Date: November 22, 2013 Signer(s) Other Than Named Above: _ Capeclty(Ies) Claimed by Signer(s) Signer's Name: Van G. Tanner ❑ Corporate Officer — Tille(s): ❑ Individual ❑ PaMner — ❑ I kMted ❑ General Top o) twMo ►,ere ❑ Attorney In Fact ❑ Trustee ❑ Guardian or Conservator bl Other. Mayor Signer Is Representing: City of Palm Desert Number of Pages: SIQWs Name: ❑ Corporate Officer — Title(s): ❑ Ind ❑ Partner — ❑ Attorney In f ❑ Trustee ❑ Guardian or ❑ Other. Signer Is Representing: ❑ General I Top of euanb hwe vATAN MMMM Hoary Aaaoaaaon • naoorwMWV.ary • i-Oaaue WTMr (140"764=7) Nam esw CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of V �I F, On �• ,.lre me, personally appeared CIM cow # »a who proved to me on the basis of satisfactory evidence to be the persortwhose nameis/are— subscribed to the within in merit and ad=wledged to me that heAW%Ah" executed the same in hisrheiAhew authorized capacdy41esfi"and that by hisftwAheir signaturgW on the Instrument the tfAMANTtfA itCHwEMCK person! or the entity upon behalf of which the tt � Net�y personWacted, executed the instrument I�uNfe • CMKorttls I12NfW118 County gam• Doe 1. gall 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 Signature: _ Pkr Notry Sw Abow OPTIONAL Though the tnAwmadan below is not required by law, H may prove vai and could prevent fraudulent removal and reattachment of Description of Attached Document Tide or Type of Document: Document Date: Signer(s) Other Than Named Above: Capecity(les) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — ❑ Urnited ❑ General 7"Ou-1,1b ❑ Attorney in Fact ❑ Trustee O Guardian or Conservator ❑ Other: Signer is Representing: Of wzdF retying on the document to another document. Number of Pages: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — ❑ Limited O General Top a aaxnb hers ❑ Attorney in Fact ❑ Trustee O Guardian or Conservator O Other: Signer Is Representing: 0 2010 NOWW MA" Arodolm • NoWnd aov.orp • 1-000-US NOTARY (/4W4764W) Ntm f5w U EXH1g1—„A" kHIEI C Engineer's Cost Estimate C Q N • kb L T, N R TRACT NO. 36SU-1 42575 1110100W PL. =. M PONS OwrL CA 92221 Tel 760. 340.9e60 Fox 760.340.11M Client: Pearwood Ventures LLC WO No.: 130301 Caldd: J.R. Pa 1 Date: 10/25/13 Chk'd: M.H. I of. 1 DESCRIPTION QUANTITY UNIT COST SUBTOTAL STREET IMPROVEMENTS 4" A.C. over 7" A.B. Class 2 33,766 S.F. $4.00 $135,072.00 Cut A.C. Edge Pavement Overlay to Join 7 min. 8,481 S.F. $2.00 $16,962.00 6" Curb and Gutter 1,176 L.F. $18.00 $21.168.00 8" Curb and Gutter 275 L.F. $22.00 $6.050.00 Constr. Driveway approach per CPD Std. 105 W=16' 16 EA. $680.00 $10,880.00 Constr. PCC Cross Gutter 1,682 S.F. $10.00 $16.820.00 6' Wide, 4" thick P.C.C. Sidewalk 7,400 S.F. $4.00 $29,600.00 8' Wide, Meandering Sidewalk Per C.P.D. Std. No. 104 4,370 S.F. $5.00 $21,850.00 Adjust Water Valve to Grade Per C.V.W.D. STDS. 2 EA $300.00 $600.00 Adjust Manhole to Grade 2 EA $500.00 $1,000.00 Stop Sign, Stop Bar and Legend 1 EA $500.00 $500.00 Street Sign 1 EA $300.00 $300.00 Construct Catch Basin/Drywel Per CPD Std. No. 111A 1 EA $12,000.00 $12,000.0 Construct Gutter Depression Per Riv. Co. #311 1 EA $2,500.00 $2,500.00 Construct Access Ramp Per Riv. Co. Std. 403 case A 8 ADA std. 2 EA $1,500.00 $3,000.00 Install Blue F.H. Markers 2 EA $25.00 $50.00 Instal W14-1 "Dead End" Sign Per. CPD Std. DWG. No. 203 1 EA $300.00 $300.00 Install End of Street Sign W31 and N-2 Per CPD Std. No. 301 1 EA $500.00 $500.00 Total $279,152.00 STORM DRAIN IMPROVEMENTS AND MISC. Install 8" ADS Storm Drain Pipe 14 L.F. $38.00 $532.00 Construct Under Sidewalk Drain Per CPD Std. Dwg. No. 200 1 L.S. $2,200.00 $2,200.00 Install 36" CMP Riser 2 L.S. $2,500.00 $5.000.00 Install 24" RCP Storm Drain Pipe 17 L.F. $68.00 $1,156.00 ConTsch 96" CMP Stormwater Retention System 1 L.S. $70,000.00 $70,000.00 Landscaping 5,920 S.F. $6.00 $35 520.00 Total $114,408.00 SUB -TOTAL $393,660.00 20% CONTINGENCY $78712.00 TOTAL $472,272.00 Public Utilities Bond Estimate Does not include some hems not related to street and utility placement Does not include Bonds, M.S.W.D. Fees, Governmental Agency Fees. *Grading does not inchrds pre -watering or soils testing. "Soils report may uire over -excavation of street and pad sits* tMe cost Is not included. 130301 STREET .xis CITY OF PALM DESERT STANDARD FORM SUBDIVISION FAITHFUL PERFORMANCE BOND NAME OF SUBDIVISIOWENCORE PALM DESERT NAME OF SUBDMDER:PEARWOOD VENTURES LLC NAME OF SURETY: SureTec Insurance Company EFFECTIVE DATE: November 19, 2013 AMOUNT OF BOND:$472,272.00 BOND NUMBER: 4392974 PREMIUM: $9,945.00 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. PEARWOOD VEN.TyRES LLC BM - //JV . PRlkdPii:'§ SIGNATURE S6A CUA PRINT NAME TITLE &COMPANY NAME PRINCIPAL'S SIGNATURE PRINT NAME TITLE & COMPANY NAME LC SureTec Insurance Company SURETY'S SIGNATURE Stephanie (Notarial acknowledgement of execution by ALL PRINCIPALS and SURETY must be attached.) ri�-. ,1. , CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Orange l On Ia2013 before me, Barbara Copeland. Notary Public om personally appeared nIe lion who proved to me on the basis of satisfactory evidence to be the persons) whose names) Is/an subecribed b the within instrument and acknowledged to me that -i+e d*ftey executed the same in 4ftf erAhek authorized =,&BAIRBAR D �)• and that byfiislherAbeir signethxe(sf on the 48Instrt ywd the persona), or the entity upon behalf of nle = which the �so^(s* acted, exwAed the htskumert , 2017 + I certify under PENALTY OF PERJURY under the laws of the State of California that the bregdng paragraph is true and correct. WITNESS my and official seal ph" "w sad amSignature PUNo OPTIONAL 7bo&O ass, ibm agm batcw 1s not required by bwK At nW pnm ► AmW to persons m6ft an the document and oouW p mWV /raualdwV removal and reaBact;cwtt or b* brm to anonwr domm t Description of Attached Docunrsnt Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capu ty(les) Clsittned by Signers) Signers Name: Stephanie Hoang O tndividuel ❑ Corporals Ottber — Tide(s): ❑ Partner — ❑ Umited O General N Attorney in Fad ❑ Trustee Top d e,u hen ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Signers Name: ❑ Individual O Corporate Officer — Title(s): ❑ Partner — O Umited ❑ General ❑ Attorney In Fact ❑ Trustee a urine n.n. ❑ Guardian or Conservator ❑ Other•. Signer Is Representing: O W N01" mi.y r..owo�• wso o. sde ro eon tat•arr.ve� a et era:• �rNo�r�ao wM MM rradre d iiF$ 14aoweae� CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT crow 000e ! 1In State of California County of V s On O' before me,ihWHem bu"NWM TW co ow Maw IF personally appeared Old Lka,3 M 9"M LBAIMANMA SCHWENCK CO MM88100.111WM Notary PUMIC - CMIHornI8 Riwrsld. C" r CWAL Iru Oa 14. 2015 who proved to me on the basis of satisfactory evidence to be the personWwhose nameWistatre— subscrlbed to the within instrument and admowledged to me that hetshef tvW executed the same in hislawAheir authorized capac' , and that by his/herAheir signatur5aron the instrument the person or the en upon behalf of which the persorwacted, 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 h n o ' ial seal. Signature: w.a NWAry apt Abo" OPTIONAL S!== PUW 77ough the dnforma&n below is not requhed by law, it may prove valuable to persona relying on the document and could prevent fraudulent removal and reattachment of M form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: _ Capacity(les) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — ❑ Limited ❑ General Top d &,ft hers ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — ❑ Limited ❑ General Top of imp here ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: =ice 0 2010 Nssona NoWy Anods"n - NM -WNaary.mg • 14WUS NOTARY (1.8004" Qs27) — — Rwn RMW )U FoA u: 510006 SureTec Insurance Company LEWTED POWER OF ATTORNEY Know All Mar by Thee Prom^ 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, Haan Co make, constitute and appoint �Y� Texas, does by these presents Eric Lowey, Mark Richardson, Stephanie Hoang, Shawn Blume its true and lawful Attorney -in -fleet, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognirances, rmdaWdngs or other instruments or contracts of suretyship to include waivers to the conditions of contracts and consents of surety for. Frye Million and 00/100 Dollars ($5,000,000.00) and to bind the Company thereby as fWly and to the same extent as if such bond were signed by the President, sealed with the corporate seal of the Company and.duly atteated by its Secretary, hereby ratifying and co all that the said Attorn premises. Said appointment shall continue in force until tonlrtats confirming i and athoriFad may of in the resolutions of the Board of Directors of the SureTec Insurance Company: la mode �� by authority °f the following Be It Resolved that the President, any Vice -President; any Assistant Via -President, any Secretary or any Assistant Secretary shall be and is hereby vested with fuH power and authority to appoint any ant or mote suitable persons as Attorneys}in-Fact to represent and ad for and on behalf of the Company subject to the following provisions: Anoryln-Fact may be given fuH power and authority for and in the name of And of behalf of the Company, to execute, acknowledge and deliver, coy and all bonds, ncognimaces, contracts, agreements or indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attorney -in -Fact shall be binding upon the Company as if signet by the President and sealed and e$ected by the Corporate Secretary. Be it Raxafvsd that the signature of any authorized officer and seal of the Company heretofore or hereafter a8bcei to my power of attorney or any ccrI fiate relating thereto by facsimile, and any power of attorney or certificate bearing facsimile signeWe or facsimile sad shall be valid and binding upon the Company with respect to any bond or underttaking to which it is attached (Adopted at a neeating held on 10* ojApril, 1999.) In if7&m H%e oaf,, SURETEC INSURANCE COMPANY has caused these presents to be signed by its President, and its corporate seal to be hereto affixed this 21 st day of March, A.D. 2013. ?S�PF SURETEC INSURANCE COMPANY o cut' X If By: m John ox Jc: dent State of Texas ss: County of Hzrke • On this 21st day of March, A.D. 2013 before me personally ate 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 sod affixed to said instrument is such corporate seal: that it was so affixed by order of the Board of DireLlors of said Company; and that he signed his name thereto by like order. s.uc0MYN MuhnonAoo Nab" Pubic stab of Teas My Comm. EX;L s/lenot? JacqVielyn Maldousdo, Notary Public My commission expires May 18, 2017 1, M. Brent Beaty, Assistant Secretary of SURETEC INSURANCE COWANY, do hereby certify that the above and foregoing is a true and corrxt copy of a Power of Attorney, executed by said Company, which is still in fWl form and of eect; and f athermore, the resolutions of the Board of Directors, set out in the Power of Attorney are in Rill form and effect. Given under my hand and the seal of said Company at Houston, Texas this �- I day of NOVdn b A.D. lire i Beaty, Assistant kecretary My Instrument issued In excess of the penalty elated above Is totally void and without any validity. For vsrMeatlon of the authority of this power you may call (7131812.0800 any business day between 8:00 on and 5:00 pm CST. Company Profile Page 1 of 1 Company Profile Company Search Company Search Results Company Information Old Company Names Agent for Service Reference Information NAIC Group List Lines of Business Workers' Compensation Complaint and Request for Action/Appeals Contact Infbrmatlon Financial Statements PDF's Annual Statements Quarterly Statements Company Complaint Company Performance & Comparison Data Company Enforcement Action Composite Complaints Studies Additional Info Find A Company Representative In Your Area View Financial Disclaimer COMPANY PROFILE Company Information Old Company Names Agent For Service NANCY FLORES CIO CT CORPORATION SYSTEM 818 WEST SEVENTH STREET LOS ANGELES CA 90017 Reference Information SUR1FT1EC INSURANCE COMPANY 1330 POST OAK BLVD., SUITE 1100 HOUSTON, TX 77056 Effective Date NAIC *: 10916 California Company ID s: 4914-8 Date Authorized in California: 10/24/2005 License Status: UNLIMirED-NORMAL Company Type: Property & Casualty State of Domicile: TEXAS back to top NAIC Group Ust NAIC Group *: 4779 JK Grp Lines Of Business The company is authorized to transact business within these lines of Insurance. For an explanation of any of these terms, please refer to the glossary. SURETY back to top m 2008 California Department of Insurance https:Hinteractive.web. insurance.ca.gov/companyprofile/companyprofile?event=company... 11 /27/2013 CITY OF PALM DESERT STANDARD FORM SUBDIVISION PAYMENT BOND (LABOR & MATERIALS) NAME OF SUBDIVISION: ENCORE PALM DESERT NAME OF SUBDIVIDER: PEARWOOD VENTURES LLC NAME OF SURETY: SureTec Insurance Company EFFECTIVE DATE: November 19, 2013 AMOUNT OF BOND: $236,136.00 BOND NUMBER: 4392974 PREMIUM: $9,945.00 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. PEARWOOD VENTURES LLC By: TORE PRINCIPAL'S SIGNATURE J ICE'+ li4 l � PRINT NAME PRINT NAME d 1,6 -C w ux TITLE WCOMPANY NAME TITLE & COMPANY NAME SureTec Insurance Company SURETY'S NAME Stephanie (Notarial acknowledgement of execution by ALL PRINCIPALS and SURETY must be attached.) Aw Ca"ROR A��R�sE AC1C111p� stare of Cati>ornW ML°N7' County d Oran on;b;bb personty appearw Barham person( jmyw� basis of BARBARA COPELANOshwiftno�� �+nlentnons� Commission #� 20c6348 = ""�` f to � zamg Notary Public -California � )� arid ChB VFterYpa that Orange county p�,,�, her ,�,,��Ortzsd Comm. Expires4119.2017 ~ Which the Persp�(' 0) aa�.Or P� a(be�> of t certify under PENAVY OF �urttent, Ori, and �Caftrnis that t�Vl�y under Paragraph is wmvEss my hpV �•►�a,,,�„�,,. and °Ifiaal seal. �+► m. �„�„� signature &VCOW P W fi it'v,�wna Pp"ONAL Dftc►1p11on Aftched Down"MTwo or t�`syra 7wv of Aocurn ctap, dat.,w,a Doc"'nent Oate: Sioner{s) Other Nred Above: Nun*w of pages: Cap"Oft) cytnw by Sorwr,h Name. In Suphenle Hmn �p Partner to t Urniteda $): �01cw a: O Atterr�y in Fast Mnerat D Corporate, p Guardian e° a 0 Partner _ p rI*$) p uardian or "tor "'"'e, nr. ClAttorney to Fit L*dbdD av der ❑ Truatft yg►br � .. p 00*r or �tor bo a a�„+e ►a. Sfgrbr h A°pesw raoorrr,4w o�� �•4i�e,cc e+nsagr -- z: -_ r CALIFORNIA ALL-PURPOSE ACKNOWLEDQMENT State of Califofl2la County of L�Tiil-�(� On fore me. SIM& DW �--M . __ personally appeared WYIL CODE • 11" who proved to me on the basis of satisfactory evidence to be the person whose nameWiswif subscribed to the within instfument and acknowledged to me that he/she" executed the same in hisiberNmir-authorized capacityy 4, and that by hisraerAMeir signatureW on the instrument the rA SAAtAMM SCWMMK persor4. or the entity upon behalf of which the a ote *w "* 1910M personkg) acted, executed the instrument. t>W1 Pubk - Ca llonda RMnida co" Calm" On 16, 2015 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: Pop NoWy S" Above Notry Pubic oMONAL Though the h7lb matim below Is not required by law, it may prove va1uab persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Document Tide or Type of Document: Document Date: Signer(s) Other Than Named Above: _ Capacity(les) Claimed by Signer(s) Signer's Name: O Corporate Officer — Titie(s): ❑ Individual ❑ Partner — ❑ Limited ❑ General Top of Its tare ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Signer's Name: ❑ Corporate Officer — Titie(s): ❑ Individual ❑ Partner — ❑ Limited ❑ General Top a thw b he"m ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: 0 2010 Mabnd MM" AwdWon • N. wWMo*y rp • t 4WW NOTMY (14W47"LM "M MAINTENANCE BOND BOND NO.: 4392974M Premium included in Performance Bond KNOW ALL MEN BY THESE PRESENTS: THAT we, Pearwood Ventures LLC , as Principal, and SureTee Insurance Company a corporation organized and doing business under and by virtue of the laws of the State of Texas and duly licensed to conduct surety business in the State of California, as Surety, are held and firmly bound unto City of Palm Desert as Obligee, in the sum of forty seven thousand two hundred twenty seven & 00/100 ($ 47,227.00 ) Dollars, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and successors, jointly and severally firmly by these presents. THE CONDITION OF THE OBLIGATION IS SUCH THAT: WHEREAS, the above named Principal entered into an agreement or agreements with said Obligee to: The Final Subdivision Map of Tract No. 36554-1 and the Related Improvement WHEREAS, said agreement provided that Principal shall guarantee replacement and repair of improvements as described therein for a period of one year following final acceptance of said improvements; NOW, THEREFORE, if the above Principal shall indemnify the Obligee for all loss that Obligee may sustain by reason of any defective materials or workmanship which become apparent during the period of one year from and after acceptance of the said improvements by Obligee, then this obligation shall be void; otherwise to remain in full force and effect. IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said Surety is hereto affixed and attested by its duly authorized Attorney -in -Fact this 19th day of May 2015 YEAR Pearwood Vent res SureTqc4nsurance Company Principal BY: ep a oang, Attorney -in -Fact 'CALIFORNIA• • •D Cd;cC< CNs�.a�<!cC<�<.a<.a..a<��C�<!c�Y.cC<!cC<!�<�< .•�<!�<C.C<.:C<! �< CLa< < <!.�<C.�<! �<!.C.C<!LC«cC< < < <.cC<!�<!.�<..�< �<!sC<�< <. 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 &Vr eLsj oeJ __ ) On ,01 � before me, �c �7'k2V ate Here Insert Name and Title of the Officer personally appeared :Sn4aA;r_ �ffe�ih NameKof Signer,' who proved to me on the basis of satisfactory evidence to be the person,(9f whose nameX Warms subscribed to the within instrument and acknowledged to me that he45�hb/they executed the same in his/De6tll r authorized capacity(jesj, and that by his/.he6tWr signatureKon the instrument the personfs)! or the entity upon behalf of which the person,Wacted, executed the instrument. LORI J. CABOT Commission ! 20.06473 = Notary Public - California i flirersi0e County ' My Comm. Expires Oct 17 201 a I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Si ature of Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: %2��-�,�f �a.�.,�_ Document Date: hi9.3a/S Number of Pages: Signer(s) Other Than Named Above: Capacity(j"TClaimed by Signer�sJ� Signer's Name: Ste„—, I Corporate Officer — Title(s): 4- Y on�a-,.,� Partner — LI Limited El General Individual 7-'Attorney in Fact Trustee _ _ Guardian or Conservator i -1 Other: Signer Is Representing: T Signer's Name: - Corporate Officer — Title(s): Partner — 71 Limited :J General Individual Attorney in Fact Trustee L Guardian or Conservator Other: Signer Is Representing: 4C.=.!G�rii,�ei.vi•: i4�!tiG�.'✓ ✓4�✓,.C=!G'✓G'uG�:'aiv:'ei.<'✓GCti.•iiaG'�iG�G'eiG�:�.G ✓GC. 'e��iG��!s'uG'u4�.�G.� .�G.•'G. s, . 02 ionalNotary• •www.NationalNotary.org1-800-US NOTARY i • • • i I 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 Califomia Countv of Orange ) On 0l l1 1 (� 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/ar-e 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. V. COPELAND Commission # 2046542 Notary Public - California i i Orange County My Comm. Expires Oct 24, 2017 Place Notary Seal Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNES y and and officials 1. Signature: S' lure ofNotary Public ---------- -- -- 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: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Stephanie Hoang ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner: ❑Limited ❑ General ® Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of Pages: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner: ❑Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Rev. 1-15 PoA#: 510006 �nreTee Insurance Company LEMT'ED 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, Hams 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 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 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 Attomey-in-Fact may do in the premises. Said appointment shall continue in force until 10/31/2015 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 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, 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 2e 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 21 st day of March, A.D. 2013. yvpANC` SURETEC INSURANCE COMPANY ur q ''t By. w 1 w ' John o= Jr: resident R� C i State o. Texas ss: ' Y CC.Luty of Hp_ris 1 sue.» On ilris 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 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. JACQUELYN MALDONADO Notary Public State of Texas My Comm. Exp. 5118/2017 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. I , f_ K/* (� Given under my hand and the seal of said Company at Houston, Texas this I�-1'` day of ,�, V , A.D. . Breift Beaty, Assistant Secretary 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. may' 2� -► y M /`�� `ENCOREAIM . Circulation Network 4D City Boundary LI City Boundary — Streets ❑ Parcels (4/7014) ' 1: 1,980 0] Notes MAINTENANCE BOND BOND NO.: 4392974M Premium included in Performance Bond KNOW ALL MEN BY THESE PRESENTS: THAT we, Pearwood Ventures LLC , as Principal, and SureTec Insurance Company a corporation organized and doing business under and by virtue of the laws of the State of Texas and duly licensed to conduct surety business in the State of California, as Surety, are held and firmly bound unto City of Palm Desert as Obligee, in the sum of forty seven thousand two hundred twenty seven & 00/100 ($ 47,227.00 ) Dollars, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and successors, jointly and severally firmly by these presents. THE CONDITION OF THE OBLIGATION IS SUCH THAT: WHEREAS, the above named Principal entered into an agreement or agreements with said Obligee to: The Final Subdivision Map of Tract No. 36554-1 and the Related Improvement WHEREAS, said agreement provided that Principal shall guarantee replacement and repair of improvements as described therein for a period of one year following final acceptance of said improvements; NOW, THEREFORE, if the above Principal shall indemnity the Obligee for all loss that Obligee may sustain by reason of any defective materials or workmanship which become apparent during the period of one year from and after acceptance of the said improvements by Obligee, then this obligation shall be void; otherwise to remain in full force and effect. IN WITNESS WHEREOF, the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the said Surety is hereto affixed and attested by its duly authorized Attorney -in -Fact this 19th day of _May 2015 YEAR Pearwood Vent res SureTec4nsurance Company — Principal - , t BY: Nam ., Sher f�� ep a oang, nnomcy-in-Pact CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL •. •!z�...-�t.z.. i; �< : •.a\•.•t\..aC .T.. • . /; •�..s\..a\•.zt.s�t.. :..\t..�•�.•�..:�. \..:�:�t/; •�.: .!•.\:!\:!..\:. :\:�.�•!:�•.:\..•.\... • c\. cam.. 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��tlG�2SroCJ ) On before me, &c ate Here Insert Name and Title of the Officer personally appeared Sngd_Ar �ffe[-ih NameKof Signer who proved to me on the basis of satisfactory evidence to be the personle whose nameX is/ar-e subscribed to the within instrument and acknowledged to me that he/�/tt;leY executed the same in his/fjef/th3ef"r authorized capacity(4, and that by his/0ef/tJaetr signatureKon the instrument the person*,, or the entity upon behalf of which the personXacted, 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. LORI J. CABOT WITNESS my hand and official seal. Commission * 2006473 Notary Public - California Z Riverside County 9 Comm. M Oct 17 2018 + Signature Si6hature of Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: a�,,Lf.,,ti,,•�,�,,�__. Document Date: �'.i�r'•ao/S Number of Pages: _... Signer(s) Other Than Named Above: Capacity(iaSf Claimed by Signers)' Signer's Name: _ ,a)_ Corporate Officer — Title(s):ayu�u�r�_. _ Partner — Limited General Individual Attorney in Fact Trustee Guardian or Conservator Other: Signer Is Representing: Signer's Name: _ Corporate Officer — Title(s): Partner — Limited General Individual Attorney in Fact Trustee Guardian or Conservator Other: Signer Is Representing: 02014 National Notary Association • www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 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 l J 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(ies), and that by his/her/their signaturc(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. V. COPELAfi ND Commission # 2046542 < =: Notary Public - California i 30 i Orange County My Comm. Expires Oct 24, 2017 Place Notary Seal Above I certify umder PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS-rrf-Rand and official seal. Signature: t% OP77ONA/_ Though the inforniation 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: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Stephanie Hoang ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner: ❑Limited ❑ General ® Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Number of Pages: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner: ❑Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Signer Is Representing: Rev. 1-15 Pon a: 510006 �nY eTec 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 and lawful Attomey-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 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 Attomey-in-Fact may do in the premises. Said appointment shall continue in force until 10/31/2015 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 Attomey-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 2e 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 21st day of March, A.D. 2013. SUFAN , SURETEC INSURANCE COMPANY tuU! X q 't0 By: sl w 5 % John of Jr: resident Suite % Te%as ss: 7� ,'.r CCU -It) of Hs:ris �' . On dris ilst dap of Marcb, 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 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. JACQUELYN MALDONADO Notary Public State of Texas My Comm. Exp. 5/18/2017 JacqXiellyn 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 furthermore, the resolutions of the Board of Directors, set out in the Power of Attorney are in full force and effect. I , rLAM_ n�, Given under my hand and the seal of said Company at Houston, Texas this l •r t\ day of _ v 4'� , A.D. . Bredt Beaty, Assistant Secretary 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.