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HomeMy WebLinkAboutRES 2022-079RESOLUTION NO. 2022-79 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FINAL SUBDIVISION MAP OF TRACT NO. 37506-2 WHEREAS, Tract Map conforms to the requirements of the Subdivision Map Act and City Ordinances; and WHEREAS, the Final Subdivision Map of Tract 37506-2, has met the Conditions of Approval for this project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. That the foregoing Recitals are true and correct and are incorporated herein by this reference. SECTION 2. The Final Subdivision Map of Tract 37506-2, City of Palm Desert, California, is hereby approved as the official map of said tract, subject to the conditions of the Tentative Map. SECTION 3. The Director of Development Services is directed to process the Tract Map for recording upon receipt of the required payment of all fees and receipt of all necessary agreements. ADOPTED ON SEPTEMBER 15, 2022. JAN C. HARNIK MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK Anthony Mejia (Sep 23, 2022 14:14 PDT) Resolution No. 2022-79 Page 2 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2022-79 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on September 15 by the following vote: AYES: JONATHAN, KELLY, NESTANDE, QUINTANILLA, AND HARNIK NOES: NONE ABSENT: NONE ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on __________________. ANTHONY J. MEJIA CITY CLERK Anthony Mejia (Sep 23, 2022 14:14 PDT) Sep 23, 2022 MSA JOB # 2497 June 27, 2022 ENGINEER'S OPINION OF PROBABLE COST FOR PHASE 2 ROUGH GRADING IMPROVEMENTS Southeast Corner of Portola Avenue and Geral Ford Drive in the City of Palm Desert Tract No. 37506 Prepared for: Project Location: University Park Investor, LLC 3875 Hopyard Road Pleasanton CA 94588 Page 1 of 3 DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST Earthwork Raw Cut CY 107,453 $5.00 $537,265.00 Over-Excavation CY 104,718 $2.00 $209,436.00 Import CY 71,588 $5.00 $357,940.00 TOTAL OF EARTHWORK IMPROVEMENTS $1,104,641.00 DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST Demolition Remove and Dispose of Existing Fence LF 2,463 $5.00 $12,315.00 TOTAL OF DEMOLITION IMPROVEMENTS $12,315.00 DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST Rough Grading Costruct Garden Wall (By Separate Permit) Structural Calculations and Design by Others LF 1,804 $60.00 $108,240.00 Construct Combination Garden/Retaining Wall (By Separate Permit) Structural Calculations and Design by Others LF 548 $100.00 $54,800.00 Construct Retaining Wall (By Separate Permit) Structural Calculations and Design by Others LF 3,273 $120.00 $392,760.00 Construct Earthen Swale Per Detail on Sheet No. 3 LF 3,960 $5.00 $19,800.00 Construct 12" Thick (Min.) x 8" Nominal Grouted Rip-Rap Weir Outlet per Detail on Sheet 13 EA 1 $30,000.00 $30,000.00 ON SITE IMPROVEMENTS Page 2 of 3 Construct 6-foot Tubular Steel View Fence atop Existing Retaining Wall LF 1,025 $60.00 $61,500.00 TOTAL OF ROUGH GRADING IMPROVEMENTS $667,100.00 Assumptions: 1. 2 Earthwork associated with the public parks is included in this estimate. DESCRIPTION TOTAL COST On Site Improvements Earthwork $1,104,641.00 Demolition $12,315.00 Rough Grading $667,100.00 SUBTOTAL OF ALL IMPROVEMENTS $1,784,056.00 15% CONTINGENCY $267,608.40 TOTAL $2,051,664.40 1 2 MSA Consulting Inc. makes no representation concerning the estimated quantities and cost figures other than that all such figures are opinions only and the Engineer shall not be responsible for any fluctuations in cost factors or the actual quantities shown. The above opinion does not include raw land, legal fees, agency permits, professional engineering fees, construction phasing, bonds, financing/carrying costs, construction staking, soils testing, accounting or construction management. SUMMARY These quantities are based on the Rough Grading Plan comments received on 6/23/2022. Page 3 of 3 SUBDIVISION IMPROVEMENT AGREEMENT DATE OF AGREEMENT: __________________________ , 20____ NAME OF SUBDIVIDER: University Park Investor, LLC (Referred to as "SUBDIVIDER"). NAME OF SUBDIVISION: Tract Map No. 37506-2 No. of Lots: 201 (Referred to as “SUBDIVISION”) For complete legal description see Exhibit “B” attached hereto. TENTATIVE MAP RESOLUTION OF APPROVAL NO.: 2745 (TM No: 37506) (Referred to as "Resolution of Approval") IMPROVEMENT PLANS APPROVED ON:__________________________________ (Referred to as Improvement Plans) ESTIMATED TOTAL COST OF IMPROVEMENTS: $ 2,331,546.00 (excluding park improvements) ESTIMATED TOTAL COST OF MONUMENTATION: $51,000 SURETY: BOND NOS:___________________________________________________ SURETY:_____________________________________________________ -OR- IRREVOCABLE STAND-BY LETTER OF CREDIT NO.__________________ FINANCIAL INSTITUTION:________________________________________ -OR- CASH/CERTIFICATE OF DEPOSIT, AGREEMENT DATED:_____________ FINANCIAL INSTITUTION:___________________________ revised 1-27-2022 - 2 - 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 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. The required grading work is subject to a separate secured agreement between SUBDIVIDER and CITY (i.e., Grading Only Agreement), and the required park improvement work is subject to a separate secured agreement between SUBDIVIDER and CITY (i.e., Parks Improvement Agreement). 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 revised 1-27-2022 - 3 - 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. As used in this Agreement, “City Engineer” means the Acting City Engineer of CITY, or if there is no City Engineer, then such other CITY official then performing the functions of 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 street signs, and stakes as specified on the final map are to be completed prior to final formal acceptance by the City Council. All public improvement monuments and 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 revised 1-27-2022 - 4 - 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 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 revised 1-27-2022 - 5 - agreement between SUBDIVIDER and CITY. SUBDIVIDER shall also be responsible for obtaining any public or private sanitary sewer, domestic water, drainage, and/or utility easements or authorization to accommodate the SUBDIVISION. e. Commence construction of the improvements by the time established in Section (22) of this Agreement and complete the improvements by the deadline stated in Section (1)(b) above, unless a time extension is granted by the CITY as authorized in Section (22). f. Install all SUBDIVISION public improvement monuments required by law and prior to formal final acceptance of the public improvements by CITY. Individual property monuments shall be installed within one year of said acceptance. g. Install street name signs conforming to CITY standards. Permanent street name signs shall be installed before acceptance of the improvements by CITY. 2. Acquisition and Dedication of Easements or Rights-of-Way. If any of the public improvement and land use development work contemplated by this Agreement is to be constructed or installed on land not owned by CITY or SUBDIVIDER, no construction or installation shall be commenced before: a. The offer of dedication to CITY of appropriate rights-of-way, easements or other interests in real property, and appropriate authorization from the property owner to allow construction or installation of the improvements or work, or b. The dedication to, and acceptance by, CITY of appropriate rights-of- way, easements or other interests in real property, as determined by the City Engineer, or c. The issuance by a court of competent jurisdiction pursuant to the State Eminent Domain Law of an order of possession. SUBDIVIDER revised 1-27-2022 - 6 - 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. 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 an amount of 100% of the estimated cost of the improvements and conforming to the requirements of Section 25 of this Agreement (concerning prevailing wages) and Section 9554 of the California Civil Code (to the extent that a subject contract involves an expenditure in an amount subject to, and a contractor deemed to be a direct contractor under, Section 9550 of the California Civil Code), and which amount of such security shall be increased automatically by the SUBDIVIDER upon an increase in the cost of construction of the improvements or any of them, such that the payment bond(s) at all times shall be in an amount not less than 100% of the sum of the total amount payable pursuant to any construction contract(s) relating to the improvements and the estimated cost of any improvements not yet subject to a construction contract, and if the SUBDIVIDER fails to so increase the amount of the security in connection with such an increase in construction costs of the improvements, the SUBDIVIDER shall provide the additional security within thirty (30) days after revised 1-27-2022 - 7 - receiving demand from the City Engineer therefor; 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 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 revised 1-27-2022 - 8 - 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. Any changes, alterations or additions to the Improvement Plans, which are mutually agreed upon by CITY and SUBDIVIDER, shall not relieve the security given 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 event of any changes, alterations, or additions that increase the estimated cost of the improvement above the original estimated cost of the improvement, SUBDIVIDER shall provide security 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 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. c. 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. revised 1-27-2022 - 9 - 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 work has been completed in accordance with this Agreement, then the City Engineer shall certify the completion of the public improvements to the City Council. No improvements shall be finally accepted by the City Council unless all aspects of the work have been inspected and completed in accordance with the Improvement Plans. When applicable law requires an inspection to be made by City at a particular stage of the work of constructing and installing such improvements, CITY shall be given timely notice of SUBDIVIDER's readiness for such inspection and SUBDIVIDER shall not proceed with additional work until the inspection has been made and the work approved. SUBDIVIDER shall bear all costs of inspection and certification. No improvements shall be deemed completed until accepted by the City Council pursuant to Section (17) herein. 6. Release of Securities. The securities required by this Agreement shall be released as following: a. Security given for faithful performance of any act, obligation, work or agreement shall be released upon the final completion and acceptance of the act or work, subject to the provisions of subsection (b) hereof. b. The City Engineer may release a portion of the security given for faithful performance of improvement work as the improvement progresses upon application thereof by the SUBDIVIDER; provided, however, that no such release shall be for an amount less than twenty-five percent (25%) of the total improvement security given for faithful performance of the improvement work and that the security shall not be reduced to an amount less than fifty percent (50%) of the revised 1-27-2022 - 10 - 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 the date that is the latest of (i) six (6) months after completion and acceptance of the work, (ii) fifteen (15) days following the expiration of the applicable statutory period in which any person may bring suit against the surety(ies) on a payment bond as set forth in Sections 8609 or 9558 of the California Civil Code, or (iii) fifteen (15) days following the expiration of the applicable statutory period in which any person may record a lien pursuant to Sections 8412 or 8414 of the California Civil Code, be reduced to an amount equal to no less than 125% of the total claimed by all claimants for whom liens or suit 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. revised 1-27-2022 - 11 - e. CITY may retain from any security released, an amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorneys' fees. 7. Injury to Public Improvements, Public Property or Public Utilities Facilities. SUBDIVIDER shall replace or repair or have replaced or repaired, as the case may be, all public improvements, public utilities facilities and surveying or subdivision monument which are destroyed or damaged as a result of any work under this Agreement. SUBDIVIDER shall bear the entire cost of replacement or repairs of any and all public or public utility property damaged or destroyed by reason of any work done under this Agreement, whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by CITY or any public or private utility corporation or by any combination of such owners. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. 8. Permits. SUBDIVIDER shall, at SUBDIVIDER's expense, obtain all necessary permits and licenses for the construction and installation of the improvements, give all necessary notices and pay all fees and taxes required by law. 9. Default of SUBDIVIDER. a. Default of SUBDIVIDER shall include, but not be limited to, (1) SUBDIVIDER's failure to timely commence construction of this Agreement; (2) SUBDIVIDER’s failure to timely complete construction of the improvements; (3) SUBDIVIDER’s failure to timely cure any defect in the improvements; revised 1-27-2022 - 12 - (4) SUBDIVIDER's failure to perform substantial construction work for a period of twenty (20) calendar days after commencement of the work; (5) SUBDIVIDER's insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which SUBDIVIDER fails to discharge within thirty (30) days; the commencement of a foreclosure action against the SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or (6) SUBDIVIDER's failure to perform any other obligation under this Agreement. b. CITY reserves to itself all remedies available to it at law or in equity for breach of SUBDIVIDER's obligations under this Agreement. CITY shall have the right, subject to this Section, to draw upon or utilize the appropriate security to mitigate CITY's damages in event of default by SUBDIVIDER. The right of CITY to draw upon or utilize the security is additional to and not in lieu of any other remedy available to CITY. It is specifically recognized that the estimated costs and security amounts may not reflect the actual cost of construction or installation of the improvements and, therefore, CITY's damages for SUBDIVIDER's default shall be measured by the cost of completing the required improvements. The sums provided by the improvement security may be used by CITY for the completion of the public improvements in accordance with the improvement plans and specifications contained herein. In the event of SUBDIVIDER's default under this Agreement, SUBDIVIDER authorizes CITY to perform such obligation twenty (20) days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER's surety, and agrees to pay the entire cost of such performance by CITY. revised 1-27-2022 - 13 - 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 SUBDIVISION, or to rescind the approval or otherwise revert the SUBDIVISION to acreage. The remedy provided by this subsection (c) is in addition to and not in lieu of other remedies available to CITY. SUBDIVIDER agrees that the choice of remedy or remedies for SUBDIVIDER's breach shall be in the discretion of CITY. d. In the event that SUBDIVIDER fails to perform any obligation hereunder, SUBDIVIDER agrees to pay all costs and expenses incurred by CITY in securing performance of such obligations, including but not limited to fees and charges of architects, engineers, attorneys, other professionals, and court costs. e. The failure of CITY to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of SUBDIVIDER. 10. Warranty. SUBDIVIDER shall guarantee or warranty the work done pursuant to this Agreement for a period of one year after final formal acceptance of the SUBDIVISION by the City Council against any defective revised 1-27-2022 - 14 - 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 SUBDIVIDER can be notified, CITY may, in its sole discretion, make the necessary repairs or replacement or perform the necessary work and SUBDIVIDER shall pay to CITY the cost of such repairs. 11. SUBDIVIDER Not Agent of CITY. Neither SUBDIVIDER nor any of SUBDIVIDER's agents, contractors or subcontractors are or shall be considered to be agents of CITY in connection with the performance of SUBDIVIDER'S obligations under this Agreement. 12. Injury 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. revised 1-27-2022 - 15 - 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 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 revised 1-27-2022 - 16 - purpose for which is it is intended, transferability or suit under any environmental law. 14. Other Agreements. Nothing contained in this Agreement shall preclude CITY from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreements with other subdividers for the apportionment of costs of water and sewer 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 revised 1-27-2022 - 17 - 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 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 revised 1-27-2022 - 18 - routine maintenance. Provisions of this Section shall remain in full force and effect for ten (10) years following the acceptance by CITY of the improvements. It is the intent of this Section that SUBDIVIDER shall be responsible for all liability for design and construction of the improvements installed or work done pursuant to this Agreement and that CITY shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving, reviewing, checking, or inspecting any work or construction. The improvement security shall not be required to cover the provisions of this Section. In the event of any administrative, legal or equitable action instituted by a third party challenging the validity of any of the procedures leading to the adoption of the Resolution of Approval, the project approvals set forth therein or the project approvals themselves, or the terms of those approvals, including the failure to include specific terms, SUBDIVIDER and CITY each shall have the right, in their sole discretion, to elect whether or not to defend such action. SUBDIVIDER, at its sole expense, shall defend, indemnify, and hold harmless the CITY (including its agents, officers, and employees) from any such action, claim, damages, or proceeding of whatever nature with counsel chosen by the CITY, subject to SUBDIVIDER’s approval of counsel, which shall not be unreasonably denied, and at SUBDIVIDER’s sole expense. If the CITY is aware of such an action or proceeding, it shall promptly notify SUBDIVIDER and cooperate in the defense. SUBDIVIDER, upon such notification, shall deposit sufficient funds in the judgment of the CITY’s Finance Director to cover the expense of defending such action without any offset or claim against said deposit to assure that the CITY expends no CITY funds. If both parties to this Agreement elect to defend, the parties hereby agree to affirmatively cooperate in defending the said action and to execute a joint defense and confidentiality agreement in order to share and protect information, under the joint defense privilege recognized under the applicable law. As part of the cooperation in defending an action, CITY and SUBDIVIDER shall coordinate their defense in order to make the most efficient use of legal counsel and to share and protect information. SUBDIVIDER and CITY shall each have sole discretion to terminate its defense at any time. CITY shall not settle any third party litigation revised 1-27-2022 - 19 - arising from the Resolution of Approval, or the project approvals set forth therein, without SUBDIVIDER’s consent, which consent shall not be unreasonably withheld, conditioned or delayed unless SUBDIVIDER materially breaches this indemnification requirement. SUBDIVIDER shall reimburse CITY for all costs and expenses (including but not limited to fees and charges of architects, engineers, attorneys, and other professionals, and court costs) incurred by CITY in enforcing the provisions of this Section. 19. Personal Nature of SUBDIVIDER'S Obligations. All of SUBDIVIDER's obligations under this Agreement are and shall remain the personal obligations of SUBDIVIDER notwithstanding a transfer of all or any part of the property within the SUBDIVISION subject to this Agreement, and SUBDIVIDER shall not be entitled to assign its obligations under this Agreement to any transferee of all or any part of the property within the SUBDIVISION or to any other third party without the express written consent of CITY. If the CITY does consent to a transfer of this Agreement and the transferee assumes all of SUBDIVIDER’s obligations so transferred, SUBDIVIDER shall be released of its transferred obligations hereunder, all as more specifically provided in an agreement to be entered into in connection with such transfer and in form and substance acceptable to the City Attorney. 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. revised 1-27-2022 - 20 - 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 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 revised 1-27-2022 - 22 - applies. While acknowledging but without expressing any concurrence with the position stated in the foregoing sentence, the SUBDIVIDER hereby agrees that it shall (i) require the construction of all public improvements required by the Conditions of Approval, including but not limited to those identified as CFD eligible facilities in Schedule “A” attached hereto, to be performed as “public work” to which Section 1771 of the Labor Code applies, and (ii) in furtherance of Section 1781(a)(2)(C) of the Labor Code, comply with all payment bonding requirements of the CITY with respect to such public improvements, including but not limited to the provision by the SUBDIVIDER to the CITY of a payment bond with respect to each subject construction contract (A) securing with respect to such contract the payment of claims of laborers (including but not limited to the payment of prevailing wages as required by this Section 25), material suppliers, and other persons as provided by law, (B) conforming with the requirements of Section 9554 of the California Civil Code (to the extent that a subject contract involves an expenditure in an amount subject to, and a contractor deemed to be a direct contractor under, Section 9550 of the California Civil Code), and (C) naming the CITY as an obligee unto which the SUBDIVIDER, as principal, and the surety are bound. In the event a contractor to whom the SUBDIVIDER awards a subject construction contract provides a payment bond meeting the foregoing requirements and also naming the SUBDIVIDER as an additional obligee unto which the contractor, as principal, and the surety are bound, such contractor’s payment bond shall be deemed as the provision by the SUBDIVIDER of a payment bond hereunder. As used in this Agreement, “Conditions of Approval” means, with respect to any portion of the property within the SUBDIVISION, the conditions of approval of all land use entitlements approved by the CITY or any other governmental agency, including but not limited to the Resolution of Approval, and the conditions of this Agreement and any development agreement, which conditions must be satisfied in order to develop such property. revised 1-27-2022 - 23 - Without limiting the foregoing, with respect to improvements to be constructed by SUBDIVIDER or under the direction of SUBDIVIDER hereunder, SUBDIVIDER shall require the contractor and subcontractors to pay prevailing wages and to comply with all applicable prevailing wage laws pursuant to California Labor Code Sections 1720 et seq. and implementing regulations of the California Department of Industrial Relations. SUBDIVIDER shall indemnify, defend, protect and hold harmless City, its agents, elected officials, officers, employees and independent consultants from and against any third party claim, cause of action, administrative or judicial proceeding or enforcement action of any kind arising out of or resulting from SUBDIVIDER or its contractors and subcontractors’ alleged or actual failure to comply with prevailing wage laws. In addition, the SUBDIVIDER agrees to require any person or entity to whom the SUBDIVIDER sells the property within the SUBDIVISION to comply with this Section 25. Notwithstanding the foregoing, the CITY and the SUBDIVIDER agree that (x) this Agreement is not intended to be a public works contract; (y) the subject public improvements are of local and not state-wide concern, and (z) the foregoing shall not in any way imply or be construed to mean that this Agreement or the subject public improvements constitute a public work for any purpose other than to assure compliance with the Labor Code. 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. revised 1-27-2022 - 24 - 28. Litigation or Arbitration. In the event that suit or arbitration is brought to enforce the terms of this Agreement, the prevailing party shall be entitled to litigation costs and reasonable attorneys' fees. 29. Incorporation of Recitals. The recitals to this Agreement are hereby incorporated into in the terms of this Agreement. 30. Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties. 31. Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California. 32. No Third Party Beneficiaries. Nothing expressed or implied in this Agreement is intended to nor shall be construed to create or extend any rights or benefits to any third party, other than the Parties hereto. 33. Jurisdiction. Jurisdiction of all disputes over the terms of this Agreement shall be in the County of Riverside, State of California. [signature page follows] EXHIBIT A ESTIMATED COST OF WORK PURSUANT TO IMPROVEMENT PLANS [see attached] Prepared for: Mission Valley Properties Tract Map No. 37506 - 2 ENGINEER'S OPINION OF PROBABLE COST FOR PHASE 2 (AREA 3) ONSITE STREET AND STORM DRAIN IMPROVEMENTS Southeast Corner of Portola Avenue and Gerald Ford Drive 801 San Ramon Valley Blvd. Danville CA 94526 City Tracking No. PG21-0023 in the City of Palm Desert Project Location: July 5, 2022 MSA JOB #2497 Page 1 of 4 ON SITE IMPROVEMENTS DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST Street and Storm Drain Construct 3" A.C. Pavement Over 4" Class II Aggregate Base SF 270,951 $3.00 $812,853.00 Construct 6" Curb and Gutter Type I Per City of Palm Desert Standard Plan No. 102 LF 15,191 $20.00 $303,820.00 Construct Cross Gutter Type II per City of Palm Desert Standar Plan No. 108 With Modified Slope as Shown in Detail on Sheet No. 16 SF 12,026 $10.00 $120,260.00 Construct Sidewalk per City of Palm Desert Standard Plan No. 104 SF 58,581 $4.00 $234,324.00 Construct Concrete Driveway per City of Palm Desert Standard Plan No. 105 (Width per Plan)SF 21,642 $5.00 $108,210.00 Construct Type 1 Modified Curb Ramp Case C per Caltrans Std. Dwg. No. A88A and Detail on Sheet No. 16 SF 503 $10.00 $5,030.00 Construct Type 2 Modified Curb Ramp Case C per Caltrans Std. Dwg. No. A88A and Detail on Sheet No. 16 SF 4,600 $10.00 $46,000.00 Construct Curb Ramp Case A per Caltrans Std. Dwg. No. A88A and Detail on Sheet No. 16 EA 15 $1,100.00 $16,500.00 Construct Combination Curb Inlet Catch Basin No. 1 per County of Riverside Standard Dwg. No. 301, See Plan for W EA 6 $13,500.00 $81,000.00 Construct Gutter Depression for Combination Grate Opening Catch Basin Per Count of Riverside Standard Dwg. No. 301 EA 6 $900.00 $5,400.00 Install Stop Legend, Limit Line, Sign Post, Stop Sign and Street Name Sign per Stop Sign Legend and Sign Post Detail on Sheet No. 16 EA 17 $1,500.00 $25,500.00 Adjust Water Valve to Grade per CVWD Standard and Specifications, See Serate Proposed Water Plans N/A N/A Adjust Sewer Manhole to Grade per CVWD Standard and Specifications, See Separate Proposed Sewer Plans N/A N/A Page 2 of 4 Construct Ribbon Gutter per Detail on Sheet No. 16 LF 522 $20.00 $10,440.00 Construct 6" Curb Type II per City of Palm Desert Standard Plan No. 103 LF 464 $20.00 $9,280.00 Install 4" Wide Double Hairpin White Striping per Detail on Sheet No. 16 LF 425 $2.00 $850.00 Sawcut and Join Existing Pavement Per Overlay Join Detail on Sheet No. 16 LF 325 $2.00 $650.00 Remove and Replace A.C. Pavement as Necessary Per Existing Structural Section and Re-Paint Any Damaged or Disturbed Striping SF 528 $5.00 $2,640.00 Remove Existing Barrier Curb or Curb and Gutter LF 264 $10.00 $2,640.00 Remove Existing P.C.C. Concrete SF 1,549 $2.00 $3,098.00 Remove, Relocate or Adjust to Grade Existing Utility as Necessary (Contractor to Verify with Appropriate Purveyor's Disposition)N/A N/A Construct 8" Edge Band to 6" Curb & Gutter Transition per Detail on Sheet No. 15 LF 75 $30.00 $2,250.00 Construct 8" Edge Band per Detail on Sheet 16. LF 69 $20.00 $1,380.00 Provide Accessible Parking Symbol, Striping, and Signs per CBC (2019 Edition) with EV Charging Striping per Detail on Sheet 15. EA 1 $750.00 $750.00 Construct 6" Thick P.C.C Concrete (560-C- 3250) SF 139 $10.00 $1,390.00 Furnish and Install 18" HDPE Storm Drain. See HDPE Typical Trench Section On Sheet 15 LF 507 $75.00 $38,025.00 Furnish and Install 24" HDPE Storm Drain. See HDPE Typical Trench Section On Sheet 15 LF 607 $95.00 $57,665.00 Proposed Combination Curb Inlet Catch Basin per Street Plan. (See Plan "H" and "W") N/A N/A Furnish and Install 18" X 22 1/2° HDPE Bend EA 2 $2,000.00 $4,000.00 Furnish and Install 24" x 45° HDPE Bend EA 1 $2,500.00 $2,500.00 Furnish and Install 18" HDPE Flared End Outlet Structure EA 1 $2,000.00 $2,000.00 Page 3 of 4 Furnish and Install 24" HDPE Flared End Outlet Structure EA 3 $3,000.00 $9,000.00 Construct Concrete Collar per R.C.F.C.D. Std. Dwg. No. M803 EA 7 $1,000.00 $7,000.00 Furnish and Install 60" Inside Diameter Manhole per CVWD Dwg. Std. S-5 EA 3 $6,500.00 $19,500.00 Construct Rip Rap Energy Dissipator Pad per City of San Diego Dwg. No. SDD-104 and Detail on Sheet 12, 13 and 14 EA 3 $3,000.00 $9,000.00 TOTAL OF STREET AND STORM DRAIN IMPROVEMENTS $1,942,955.00 Assumptions: 1. DESCRIPTION TOTAL COST On Site Improvements STREET AND STORM DRAIN $1,942,955.00 SUBTOTAL OF ON SITE IMPROVEMENTS $1,942,955.00 20% CONTINGENCY $388,591.00 TOTAL $2,331,546.00 Assumptions: 1 2 SUMMARY MSA Consulting Inc. makes no representation concerning the estimated quantities and cost figures other than that all such figures are opinions only and the Engineer shall not be responsible for any fluctuations in cost factors or the actual quantities shown. The above opinion does not include raw land, legal fees, agency permits, professional engineering fees, construction phasing, bonds, financing/carrying costs, construction staking, soils testing, accounting or construction management. These quantities are based on Onsite Street and Storm Drain Improvement Plans submitted 6-28- 22. Page 4 of 4 EXHIBIT B LEGAL DESCRIPTION EXHIBIT “A” LEGAL DESCRIPTION PARK “D” PAGE 1 OF 2 IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF PARCEL 9, OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE IN BOOK 211 OF PARCEL MAPS, AT PAGES 63 THROUGH 75, INCLUSIVE, RIVERSIDE COUNTY RECORDS, AS ADJUSTED BY CERTIFICATE OF COMPLIANCE NO. 05-01, RECORDED AUGUST 24, 2005, AS DOCUMENT NO. 2005- 0696754, OFFICIAL RECORDS, LOCATED IN THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF PACIFIC AVENUE AND COLLEGE DRIVE AS SHOWN ON SAID PARCEL MAP 31730, SAID POINT ALSO BEING ON A CURVE IN COLLEGE DRIVE, A RADIAL LINE TO SAID POINT BEARS NORTH 07°29'27" EAST; THENCE SOUTH 37°20'49" EAST, A DISTANCE OF 537.35 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 379.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 29°15'38" EAST, AND THE TRUE POINT OF BEGINNING; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 05°48'57", AN ARC DISTANCE OF 38.47 FEET; THENCE NORTH 54°55'25" EAST, A DISTANCE OF 61.87 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 15.00 FEET; THENCE EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 53°38'58", AN ARC DISTANCE OF 14.05 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 18°34'23" EAST; THENCE NON-TANGENT TO SAID CURVE SOUTH 54°55'25" WEST, A DISTANCE OF 82.08 FEET; THENCE SOUTH 35°04'35" EAST, A DISTANCE OF 62.13 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 195.00 FEET; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 26°47'25", AN ARC DISTANCE OF 91.18 FEET; EXHIBIT “A” LEGAL DESCRIPTION PARK “D” PAGE 2 OF 2 THENCE SOUTH 61°52'00" EAST, A DISTANCE OF 58.80 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE EASTERLY, HAVING A RADIUS OF 1038.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 65°31'59" WEST; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 06°23'39", AN ARC DISTANCE OF 115.84 FEET; THENCE SOUTH 18°04'23" WEST, A DISTANCE OF 36.67 FEET; THENCE SOUTH 63°58'57" WEST, A DISTANCE OF 7.18 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 1038.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 19°53'31" EAST; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 05°38'40", AN ARC DISTANCE OF 102.26 FEET; THENCE NORTH 75°45'09" WEST, A DISTANCE OF 314.02 FEET; THENCE NORTH 01°23'06" EAST, A DISTANCE OF 14.67 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 750.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 00°14'21" WEST; THENCE EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 24°08'40", AN ARC DISTANCE OF 316.05 FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 15.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 23°54'19" EAST; THENCE NORTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 95°21'19", AN ARC DISTANCE OF 24.96 FEET; THENCE NORTH 29°15'38" WEST, A DISTANCE OF 75.93 FEET, TO THE TRUE POINT OF BEGINNING; SUBJECT TO EXISTING EASEMENTS, COVENANTS, RIGHTS AND RIGHTS-OF- WAY OF RECORD. CONTAINING 49,343 SQUARE FEET OR 1.133 ACRES MORE OR LESS. EXHIBIT “A” LEGAL DESCRIPTION PARK “E” PAGE 1 OF 1 IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF PARCEL 9, OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE IN BOOK 211 OF PARCEL MAPS, AT PAGES 63 THROUGH 75, INCLUSIVE, RIVERSIDE COUNTY RECORDS, AS ADJUSTED BY CERTIFICATE OF COMPLIANCE NO. 05-01, RECORDED AUGUST 24, 2005, AS DOCUMENT NO. 2005- 0696754, OFFICIAL RECORDS, LOCATED IN THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF PACIFIC AVENUE AND COLLEGE DRIVE AS SHOWN ON SAID PARCEL MAP 31730, SAID POINT ALSO BEING ON A CURVE IN COLLEGE DRIVE, A RADIAL LINE TO SAID POINT BEARS NORTH 07°29'27" EAST; THENCE SOUTH 05°06'22" WEST, A DISTANCE OF 637.33 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 14°14'51" WEST, A DISTANCE OF 225.00 FEET; THENCE NORTH 75°45'09" WEST, A DISTANCE OF 92.83 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 1033.00 FEET; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 01°48'48", AN ARC DISTANCE OF 32.69 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 16°03'39" WEST; THENCE NON-TANGENT TO SAID CURVE NORTH 16°03'39" EAST, A DISTANCE OF 225.00 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 808.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 16°03'39" WEST; THENCE EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 01°48'48", AN ARC DISTANCE OF 25.57 FEET; THENCE SOUTH 75°45'09" EAST, A DISTANCE OF 92.83 FEET, TO THE TRUE POINT OF BEGINNING; SUBJECT TO EXISTING EASEMENTS, COVENANTS, RIGHTS AND RIGHTS-OF- WAY OF RECORD. CONTAINING 27,441 SQUARE FEET OR 0.630 ACRES MORE OR LESS. -1- 12812-0001\2706359v3.doc RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Successor Agency to the Palm Desert Redevelopment Agency c/o City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: Executive Director SPACE ABOVE THIS LINE FOR RECORDER’S USE This Document is recorded for the benefit of the Successor Agency to the Palm Desert Redevelopment Agency and is exempt from recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code. TEMPORARY RETENTION BASIN AND CONSTRUCTION EASEMENT AGREEMENT THIS TEMPORARY RETENTION BASIN AND CONSTRUCTION EASEMENT AGREEMENT (the “Agreement”), dated as of ____________________, 2022 (the “Effective Date”), is entered into by and between SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, a public body (the “Grantor”), and UNIVERSITY PARK INVESTOR, LLC, a Delaware limited liability company (the “Grantee) with reference to the recitals of fact set forth below. Grantor and Grantee are from time to time hereinafter referred to individually as a “party” and collectively as the “parties.” RECITALS A. Grantor is the owner of certain real property located in the City of Palm Desert (the “City”), County of Riverside (the “County”), State of California, more particularly described in Exhibit A and depicted as the “SARDA Property” on Exhibit B, each attached hereto and incorporated herein by this reference (the “SARDA Property”). B. Grantee is the owner of certain real property located in the City, situated adjacent to the SARDA Property, more particularly described in Exhibit C attached hereto and incorporated herein by this reference, and depicted as the “UPI Property” on Exhibit B (the “UPI Property”). C. Grantee desires the temporary use of a portion of the SARDA Property, more particularly described in Exhibit D attached hereto and incorporated herein by this reference and depicted as the “Temporary Basin Easement” on Exhibit E attached hereto and incorporated herein by this reference (the “Temporary Basin Property”), in order to create temporary retention basins to direct and retain surface water runoff from the SARDA Property, as depicted on the approved Vesting Tentative Tract Map No. 37506, and to construct and grade the retention basins and those portions of the UPI Property that abut the SARDA Property. -2- 12812-0001\2706359v3.doc D. Grantor and Grantee anticipate that Grantor will sell the SARDA Property to one or more unaffiliated third parties pursuant to the Grantor’s Long Range Property Management Plan, as amended, for development of the SARDA Property, at which point the retention basins may no longer be required. E. In connection with the need to appropriately capture surface water runoff from the SARDA Property that would otherwise drain onto the UPI Property, Grantee desires to receive, and Grantor is willing to grant, an easement for the temporary construction, use, maintenance, operation, and potential removal of the retention basins upon the terms, covenants and conditions set forth herein. F. It is the intent of the parties that the Grantee shall be solely responsible for all costs associated with the Temporary Basin Easement (as defined in Section 1.1), and that the Temporary Basin Easement and the activities of the Grantee with respect thereto will not adversely affect the ability of the Grantor to properly dispose of the SARDA Property in conformance with Grantor’s Long Range Property Management Plan, as amended. NOW, THEREFORE, in consideration of the foregoing recitals of fact, the mutual covenants contained herein, and for such other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Grantor and Grantee, for themselves and their respective successors and assigns, hereby agree as follows: AGREEMENT 1. Easement. 1.1 Temporary Basin Easement. Grantor hereby grants to Grantee a temporary nonexclusive easement (the “Temporary Basin Easement”) over, under, upon, across and through the Temporary Basin Property. The Temporary Basin Easement shall be used by Grantee and other Permitted Users (as defined in Section 1.3) solely and exclusively for purposes of the construction, installation, start-up, operation, use, maintenance, inspection, testing, repair, reconstruction, replacement and (if necessary) removal of temporary storm water retention basins and related facilities and improvements (collectively, the “Retention Basins”). 1.2 Related Access Rights. The Temporary Basin Easement shall be deemed to include the right of Permitted Users for ingress and egress of trucks, automobiles, other vehicles, and equipment and personnel to and from the Temporary Basin Property as may be necessary to facilitate the construction, installation, start-up, operation, use, maintenance, inspection, testing, repair, reconstruction, replacement and, if necessary, removal of the Retention Basins. 1.3 Limitations on Use; Permitted Users. Use of the Temporary Basin Easement shall not commence unless and until plans and specifications for the Retention Basins have been submitted by Grantee or its designee to the City and the City or its designee has approved in writing such plans and specifications. In using the Temporary Basin Easement, Grantee and all other Permitted Users: (a) shall comply with all applicable federal, state, regional and local laws, statutes, ordinances, regulations, guidelines, rules, orders, judicial and administrative decisions (collectively, the “Applicable Laws”), including all Applicable Laws with respect to Hazardous -3- 12812-0001\2706359v3.doc Materials (as defined in Section 1.4), and any and all applicable insurance requirements; (b) shall not directly or indirectly create, incur, assume or suffer to exist any mechanic’s, materialmen’s or other liens, claims or levies of any kind upon the SARDA Property (each a “Lien”); and (c) shall promptly, at no cost to Grantor, take such action as may be necessary to discharge or eliminate or bond in a manner satisfactory to Grantor any such Lien. The Temporary Basin Easement may be used solely in accordance with the provisions hereof by Grantee, its successors and assigns, and their respective employees, representatives, agents, lessees, licensees, contractors, subcontractors and consultants (collectively, the “Permitted Users”). 1.4 Hazardous Materials. Without limiting the provisions of Section 1.3, in its use of the Temporary Basin Easement, Grantee shall not use, store or transport, or permit or cause to be used, stored or transported, any Hazardous Materials (as defined below) over, under, upon, across or through the SARDA Property except as permitted by, and in strict compliance with, all Applicable Laws and any and all applicable insurance requirements. In no event shall Grantee release or dispose of any Hazardous Materials over, under, upon, across or through the Temporary Basin Property. As used herein, “Hazardous Materials” means any chemical, material or substance now or hereafter defined as or included in the definition of hazardous substances, hazardous wastes, hazardous materials, extremely hazardous waste, restricted hazardous waste, toxic substances, pollutant or contaminant, imminently hazardous chemical substance or mixture, hazardous air pollutant, toxic pollutant, or words of similar import under any local, state or federal law or under the regulations adopted or publications promulgated pursuant thereto applicable to the SARDA Property, including, without limitation: the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601, et seq. (“CERCLA”); the Hazardous Materials Transportation Act, as amended, 49 U.S.C. 1801, et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq.; and the Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901, et seq. (“RCRA”). The term Hazardous Materials shall also include any of the following: any and all toxic or hazardous substances, materials or wastes listed in the United States Department of Transportation Table (49 CFR 172.101) or by the Environmental Protection City as hazardous substances (40 CFR. Part 302) and in any and all amendments thereto in effect as of the Effective Date; oil, petroleum, petroleum products (including, without limitation, crude oil or any fraction thereof), natural gas, natural gas liquids, liquefied natural gas or synthetic gas usable for fuel, not otherwise designated as a hazardous substance under CERCLA; any substance which is toxic, explosive, corrosive, reactive, flammable, infectious or radioactive (including any source, special nuclear or by-product material as defined at 42 U.S.C. 2011, et seq.), carcinogenic, mutagenic, or otherwise hazardous and is or becomes regulated by any governmental authority; asbestos in any form; urea formaldehyde foam insulation; transformers or other equipment which contain dielectric fluid containing levels of polychlorinated byphenyls; radon gas; or any other chemical, material or substance (i) which poses a hazard to the SARDA Property, to adjacent properties, or to persons on or about the SARDA Property, (ii) which causes the SARDA Property to be in violation of any of the aforementioned laws or regulations, or (iii) the presence of which on or in the SARDA Property requires investigation, reporting or remediation under any such laws or regulations. -4- 12812-0001\2706359v3.doc 2. Term; Easement In Gross and Appurtenant. 2.1 Term. The term of this Agreement and the Temporary Basin Easement (the “Term”) shall commence on the Effective Date and, unless otherwise agreed in writing by the parties, shall terminate upon the earlier of (i) acceptance of the maintenance of the Retention Basins by Grantor’s successor-in-interest to the Temporary Basin Property and the City’s approval of such acceptance, (ii) agreement by such successor-in-interest to Grantor with the City to construct alternative facilities to retain or redirect surface water runoff from the SARDA property and the City’s approval of such facilities, or (iii) at the option of the Grantor and with the prior consent of the City, the failure of Grantee to perform any of its obligations under this Agreement, and if such failure is curable within thirty (30) days, the expiration of thirty (30) days after notice of such failure from Grantor to Grantee. If such failure is not curable within thirty (30) days, Grantee may have such longer period of time as is reasonably necessary to complete the cure, provided that Grantee has commenced to cure within the initial thirty (30) day period and diligently prosecutes such cure to completion. Within thirty (30) days following the termination of this Agreement and the Temporary Basin Easement, the Grantee shall execute and record in the Official Records of the County a quitclaim deed acknowledging such termination and conveying all of its interests and rights, if any, under this Agreement to the owner of the Temporary Basin Property. Such quitclaim deed shall be in form and substance reasonably satisfactory to the owner of the Temporary Basin Property. 2.2 Easement Appurtenant. Until the expiration of the Term, the Temporary Basin Easement shall constitute an appurtenant easement in favor of Grantee for the benefit of Grantee, its successors and assigns, and the UPI Property; provided, however, that except as otherwise set forth in this Section 2.2, the Grantee may not assign or otherwise transfer its interest in this Agreement, or its interest in the Temporary Basin Easement, without the prior written consent of the Executive Director of the Grantor, which consent may be granted or withheld in the Executive Director’s sole discretion. Notwithstanding the foregoing, the Grantee may transfer, without the prior written consent of the Executive Director of the Grantor, its interest in this Agreement, and its interest in the Temporary Basin Easement, to a homeowners association that is responsible for the maintenance of common area property within the master-planned community on the UPI Property. 3. Ownership of Retention Basins. At all times during the Term, the Retention Basins shall be the sole and exclusive improvements of Grantee and shall not be deemed fixtures or any other part of the real property comprising the SARDA Property. Grantee shall not be responsible for the payment of any ad valorem property taxes associated with the SARDA Property or the Temporary Basin Easement. 4. Construction, Maintenance and Removal. During the Term, Grantee shall be solely responsible for all costs and expenses associated with the construction, installation, start- up, operation, use, maintenance, inspection, testing, repair, reconstruction, replacement and (if necessary) removal of the Retention Basins. Grantee shall maintain the Retention Basins in good and safe condition during the Term, and, except with respect to a Termination of this Agreement and the Temporary Basin Easement for the reason stated in Section 2.1(i), promptly following the Termination of this Agreement and the Temporary Basin Easement remove the Retention Basins, and restore the Temporary Basin Property to a condition as reasonably possible to that which -5- 12812-0001\2706359v3.doc preceded the construction of the Retentions Basins. If necessary and in order to facilitate the Grantee’s obligation to remove the Retention Basins, the Grantor shall grant to Grantee a license in scope and duration reasonably necessary to permit the Grantee to access the SARDA Property for the purpose of removing the Retention Basins. 5. Indemnification. 5.1 Bodily Injury and Property Damage. During the Term, Grantee, for itself, its successors and assigns, agrees to defend, indemnify and hold harmless the Grantor, the City, and their respective board members, city council members, officers, consultants and employees (the “Released Grantor Parties”) from and against any and all Claims asserted by any person, including but not limited to Permitted Users, for bodily injury, death or property damage arising directly or indirectly, or in any manner growing out of Grantee’s or Permitted Users’ activities on or about the SARDA Property. As used herein, “Claims” shall mean all claims, liens, liabilities, damages, losses, costs and expenses of any kind or whatever nature. Notwithstanding anything to the contrary contained herein, the provisions of this Section 5.1 shall survive the termination of this Agreement. 5.2 Breach of Agreement. Grantee, for itself, its successors and assigns, further agrees to defend, indemnify and hold harmless the Released Grantor Parties from and against any and all Claims asserted by any person that result from Grantee’s or Permitted Users’ failure to comply with the terms of this Agreement, including Grantee’s or Permitted Users’ failure to comply with Applicable Laws. Notwithstanding anything to the contrary contained herein, the provisions of this Section 5.2 shall survive the termination of this Agreement. 6. Insurance. Grantee shall comply with the insurance requirements set forth in Exhibit F. 7. Mortgagee Protection. No breach of any of the provisions of this Agreement nor the enforcement of this Agreement shall defeat or render invalid the lien of any mortgage, deed of trust, or other security interest against the SARDA Property or the UPI Property, but all of the provisions of this Agreement shall be binding on and effective against any person whose title is derived through foreclosure or otherwise; provided, however, that any such person shall have no liability for any breach occurring before the date that such person succeeded to title. It is the express intent of the parties that this Agreement and the easement granted herein shall at all times be superior to the lien of any deed of trust, mortgage, security interest, or other monetary lien or encumbrance that may exist against the SARDA Property or the UPI Property as of, or at any time after, the date of this Agreement. Each party, after receipt of a written request from the other party, shall use its best efforts to obtain written recordable agreements from its lenders and other holders of such liens, if any, by which those lienors agree to subordinate their interests under those liens to the rights and interests of the parties created by this Agreement. 8. Condemnation. In the event all or any portion of the Temporary Basin Property is taken by condemnation, the parties shall, to the greatest practical extent, relocate the Temporary Basin Property so that the use of the Temporary Basin Easement may continue hereunder, and Grantee shall be entitled to receive all payments allocated or made with respect to its rights, and -6- 12812-0001\2706359v3.doc interests in, to or under this Agreement, the Temporary Basin Easement, and/or the Retention Basins. 9. Estoppel Certificate. Within five (5) business days after receipt of a request for an estoppel certificate from either party, the other party shall provide an estoppel certificate stating that this Agreement has not been modified or, if modified, stating the nature of the modification, and certifying that this Agreement, as so modified, is in full force and effect. The estoppel certificate also shall identify any obligations then due or unperformed hereunder and shall contain any additional information regarding the Agreement as may be reasonably set forth in the request. 10. No Dedication or Merger. Nothing in this Agreement shall be construed or deemed to constitute a dedication or offer of dedication, express or implied, by Grantor or Grantee of all or any portion of the SARDA Property, the UPI Property, the Temporary Basin Property, or any interest therein, to any governmental entity or agency or utility or for any public use or purpose whatsoever. Subject to the provisions of Section 2.1, the Temporary Basin Easement shall not be terminated or extinguished by any merger of title or otherwise unless a written consent to such termination, or a quitclaim deed, is executed by Grantee and recorded in the Official Records of the County. 11. General Provisions. 11.1 Entire Agreement. Except as expressly set forth herein, this Agreement, including all recitals and exhibits hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes any and all prior or contemporaneous understandings, negotiations, representations, promises and agreements, oral or written, by or between the parties, with respect to the subject matter of this Agreement. No representations, inducements, promises, or agreements have been made in connection with this Agreement by any party, or anyone acting on behalf of any party, other than those expressly set forth herein. 11.2 Amendment. This Agreement may be amended, modified or supplemented only by a writing signed by both parties. 11.3 Waiver. No waiver of any provision of this Agreement shall be binding unless executed in writing by the party making the waiver. No waiver of any provision of this Agreement shall be deemed to constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver unless the written waiver so specifies. 11.4 Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one and the same instrument. 11.5 Successors and Assigns. Subject to Section 2.2, this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns, and all references in this Agreement to Grantor and Grantee shall be deemed to include their respective heirs, legal representatives, successors and assigns. Subject to Section 2.1, the provisions of this Agreement shall grant and establish an easement running with the Temporary Basin Property, and shall be binding upon each successor owner thereof during its/his/her -7- 12812-0001\2706359v3.doc ownership of any portion of the Temporary Basin Property and the UPI Property. Any transferee of title to the UPI Property shall be deemed, by acceptance of that title, to have automatically assumed all obligations under this Agreement with respect to the Temporary Basin Property, but only to the extent that those obligations accrue after the date of the transfer of title and have not terminated due to the expiration of the Term. Effective upon such transfer, the transferor shall be relieved of all further liability under this Agreement except for any liability which may have arisen during its period of ownership and that remains unsatisfied as of the time of the transfer. 11.6 Attorneys’ Fees. The prevailing party in any action or proceeding to enforce or interpret, or otherwise arising out of or relating to, this Agreement or any provision thereof (including but not limited to any suit, arbitration, administrative hearing, bankruptcy or appeal) shall be entitled to recover from the other party all of its costs and expenses, including but not limited to attorneys’ and experts’ fees and costs. 11.7 Governing Law. This Agreement is entered into in and shall be governed by and construed in accordance with the laws of the State of California, without reference to its conflict of laws principles. 11.8 Severability. If any term or provision of this Agreement is ever determined to be invalid or unenforceable for any reason, such term or provision shall be severed from this Agreement without affecting the validity or enforceability of the remainder of this Agreement. 11.9 Interpretation. Section headings in this Agreement are for convenience of reference only and shall not affect the meaning or interpretation of any provision of this Agreement. As used here: (a) the singular shall include the plural (and vice versa) and the masculine or neuter gender shall include the feminine gender (and vice versa) where the context so requires; (b) locative adverbs such as “herein,” “hereto,” “hereby,” and “hereunder” shall refer to this Agreement in its entirety and not to any specific section or paragraph; (c) the terms “include,” “including,” and similar terms shall be construed as though followed immediately by the phrase “but not limited to;” (d) “person” shall mean any person or any private or public entity; and (e) “shall,” “will,” and “must” are mandatory and “may” is permissive. The parties have jointly participated in the negotiation and drafting of this Agreement, and this Agreement shall be construed fairly and equally as to the parties, without regard to any rules of construction relating to the party who drafted a particular provision of this Agreement. 11.10 Notices. Any notice required by this Agreement shall be in writing and shall be deemed effective upon receipt or refusal of delivery by the appropriate party at the following addresses (each a “Notice Address”): if to Grantee: University Park Investor, LLC 801 San Ramon Valley Blvd., Suite F Danville, CA 94526 Attention: Ravi Nandwana -8- 12812-0001\2706359v3.doc with a copy to University Park Investor, LLC 4400 MacArthur Boulevard, Suite 700 Newport Beach, CA 92660 Attention: Rory Ingles If to Grantor: Successor Agency to the Palm Desert Redevelopment Agency c/o City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: Executive Director Either party may change its Notice Address by transmitting such change to the other party’s Notice Address. 11.11 Recording and Further Assurances. The parties shall cause this Agreement to be recorded promptly following their execution thereof, although such recording is not a condition to the effectiveness of this Agreement. Each party shall execute and deliver any additional documents and instruments and perform any additional acts that may be reasonably necessary or appropriate to effectuate and perform the provisions of this Agreement. IN WITNESS WHEREOF, Grantor and Grantee have executed this Agreement as of the date first set forth above. GRANTOR: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, a public body By: Name: Title: GRANTEE: UNIVERSITY PARK INVESTOR, LLC, a Delaware limited liability company By: Name: Title: -9- 12812-0001\2706359v3.doc 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 ) )ss. County of ) On ____________________, 20___, before me, ______________________, Notary Public, personally appeared ___________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Notary Public -10- 12812-0001\2706359v3.doc 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 ) )ss. County of ) On ____________________, 20___, before me, ______________________, Notary Public, personally appeared ___________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Notary Public A-1- 12812-0001\2706359v3.doc EXHIBIT A TO EASEMENT AGREEMENT LEGAL DESCRIPTION OF SARDA PROPERTY All that real property situated in the City of Palm Desert, County of Riverside, State of California, and more particularly described as follows: [SEE ATTACHED] EXHIBIT B TO EASEMENT AGREEMENT DIAGRAM OF SARDA/UPI PROPERTY [See Attached] EXHIBIT C TO EASEMENT AGREEMENT LEGAL DESCRIPTION OF UPI PROPERTY All that real property situated in the City of Palm Desert, County of Riverside, State of California, and more particularly described as follows: [See Attached] EXHIBIT D TO EASEMENT AGREEMENT LEGAL DESCRIPTION OF TEMPORARY BASIN AREA [See Attached] EXHIBIT E TO EASEMENT AGREEMENT DESCRIPTION AND DEPICTION OF RETENTION BASINS [See Attached] F-1- 12812-0001\2706359v3.doc EXHIBIT F TO TEMPORARY RETENTION BASIN AND CONSTRUCTION EASEMENT AGREEMENT INSURANCE REQUIREMENTS MINIMUM SCOPE AND LIMIT OF COVERAGE. Prior to and at all times after executing the Temporary Retention Basin and Construction Easement Agreement and during its Term, University Park Investors, LLC (the “Grantee” thereunder) shall procure and maintain, at its sole cost, for the duration of Grantee’s obligations hereunder, not less than the following coverage and limits of insurance, with insurers and under policy forms satisfactory to the Successor Agency to the Palm Desert Redevelopment Agency (the “Grantor” thereunder). (a) Commercial General Liability Insurance written on an occurrence basis of at least $1,000,000 per occurrence/$2,000,000 aggregate including ongoing operations, products and completed operations, property damage, bodily injury, personal and advertising injury, and premises/operations liability. (i) Coverage for Commercial General Liability insurance shall be at least as broad as Insurance Services Office Commercial General Liability coverage form (Occurrence Form CG 00 01) or exact equivalent. (ii) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products and completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (iii) The policy shall be endorsed to name the Grantor, its employees, directors, officers, agents, and volunteers as additional insureds using ISO endorsement forms CG 20 10, 10 01 and 20 37, 10 01, or endorsements providing the exact same coverage. (b) Commercial Automobile Liability Insurance written on a per occurrence basis of at least $1,000,000 per occurrence for bodily injury and property damage. (i) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto) (ii) The policy shall be endorsed to name the Grantor, its employees, directors, officers, agents, and volunteers as additional insureds. (c) Workers’ Compensation Insurance/Employers Liability as required by the State of California with statutory limits or be legally self-insured pursuant to Labor Code section 3700 et seq. along with Employer’s Liability limits of no less than $1,000,000 per occurrence for bodily injury or disease. The workers’ compensation insurer shall agree, using form WC 00 03 13 or the exact equivalent to waive all rights of subrogation against the Grantor, its employees, directors, officers, and agents. F-2- 12812-0001\2706359v3.doc (d) Pollution Liability Insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the Grantor providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities of the Grantee contemplated under the Agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the SARDA Property to the final disposal location, including non-owned disposal sites. OTHER INSURANCE PROVISIONS All of Grantee’s policies shall meet the following requirements and contain all specified provisions/endorsements noted hereunder. (a) Insurers shall provide the Grantor at least thirty (30) days prior written notice of cancellation of any policy required hereby, except that insurers shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. In the event any insurer issuing coverage hereunder does not agree to provide notice of cancellation to the Grantor, Grantee shall assume such obligation and provide written notice of cancellation in accordance with the above. If any of the required coverage is cancelled or expires during the term of this Agreement, Grantee shall deliver renewal certificate(s) including endorsements to the Grantor at least ten (10) days prior to the effective date of cancellation or expiration. (b) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Grantee’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the Grantor or any additional insureds shall not be called upon to contribute to any loss. (c) All required insurance coverages shall contain a provision, or be endorsed, to waive subrogation in favor of the Grantor, its employees, directors, officers, and agents or shall specifically allow Grantee to waive its right of recovery prior to a loss. Grantee hereby waives its own right of recovery against the Grantor, its employees, directors, officers, and agents. (d) If at any time during the term of the Agreement, any policy of insurance required hereby does not comply with these specifications or is canceled and not replaced, the Grantor has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the Grantor will be promptly reimbursed by Grantee. (e) The Grantor may require Grantee to provide complete copies of all insurance policies and endorsements in effect for the term of the Agreement. (f) The general liability and automobile liability programs may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the Grantor, and provided that such deductibles shall not apply to the Grantor as an additional insured. F-3- 12812-0001\2706359v3.doc (g) Claims made policies are not acceptable (h) Grantee shall not allow any of its contractors, consultants, subcontractors or subconsultants to commence work under the Agreement until Grantee has verified that contractors, subcontractors, consultants, or subconsultants have secured all insurance required hereby, including waivers of subrogation and other endorsements. Policies of commercial general liability insurance provided by such contractors, consultants, subcontractors or subconsultants shall be endorsed to name the Grantor, its employees, directors, officers, and agents as additional insureds using ISO form CG 20 10 11 85, CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Grantee, the Grantor may approve different scopes or minimum limits of insurance for particular contractors, consultants, subcontractors or subconsultants. VERIFICATION OF COVERAGE. Prior to commencing any activity on the SARDA Property, Grantee shall file with the Grantor evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. All policies required shall be issued by acceptable insurance companies, as determined by the Grantor. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. LIABILITY NOT LIMITED. Defense costs shall be payable in addition to the limits set forth herein. Requirements of specific coverage or limits contained herein are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve Grantee from liability in excess of such coverage, nor shall it limit Grantee’s indemnification obligations to the Grantor and shall not preclude the Grantor from taking such other actions available to the Grantor under other provisions of the Agreement or law. AVAILABLE LIMITS. Notwithstanding the minimum limits set forth above, any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds. RESERVATION OF RIGHTS. The Grantor reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.