HomeMy WebLinkAboutRelease Security PP 07-08 - Desert El Paseo/Harkham Family Ent. p.
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: Release the Improvement Security for the Colonnade (PP 07-08) and
Accept a One-Year Maintenance Bond
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
APPLICANT: Desert EI Paseo, LP
Harkham Family Enterprises, LP
c/o Jack Corrigan
210 E. Olympic Blvd., Suite 202
Los Angeles, CA 90015
BOND NUMBER: 2081039
North American Specialty Insurance Company
701 South Parker Street, Suite 3800
Orange, CA 92868
MAINTENANCE
BOND NUMBER: 642798-40
DATE: November 12, 2009
CONTENTS: Agreement
Performance Bond
Labor & Materials Bond
Maintenance Bond
Vicinity Map
Recommendation
By Minute Motion, release the improvement security for the Colonnade
(PP 07-08) and accept a one-year maintenance bond.
Backqround
At the time of grading permit issuance, the applicant submitted improvement security in
the total amount of $222,366 for precise grading and off-site improvements. All grading
and improvements have been completed, and staff has inspected the site and found it
to be acceptable. Per Chapter 26.28.100 of the Municipal Code, the applicant has
submitted a one-year maintenance bond in the amount of $14,824, which is ten percent
of the Performance Bond amount.
Staff Report
Release Improvement Security for PP 07-08 and Accept a One-Year Maintenance Bond
November 12, 2009
Page2of2
Therefore, staff recommends that Council authorize the City Clerk to release the
improvement security for the Colonnade (PP 07-08) in the total amount of $222,366 and
accept the one-year maintenance bond in the amount of$14,824.
Fiscal Analvsis
The City is in possession of a one-year maintenance bond in the event the Applicant
does not properly maintain the improvements.
Submitted By: Departmen H ad:
f�-
C�`l��`�"n Y1 C� ��.�1 ��
Christina Canales Mark Gree wood, P.E.
Assistant Engineer Director of Public Works
Paul S. Gibson
Finance Director
C1TY COUNCTL ACTION
Approval: APPROVF.D ��_n[�,NIE�
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GIPubWorkslSta(f Reports120091November 12103 Release Security for Colonnade PP 07-081SR Colonnade Re/ease Bonds.docx
IMPROVEMENT AGREEMENT
DATE OF AGREEMENT: OCTOBER 6, 2009
NAME OF DEVELOPER: THE COLONNADE ON EL PASEO, LP
(referred to as "DEVELOPER").
NAME OF DEVELOPMENT: THE COLONNADE
(referred to as "DEVELOPMENT").
DEVELOPMENT RESOLUTION
OF APPROVAL NO.: Resolution 07-75
(referred to as "Resolution of Approval")
IMPROVEMENT PLANS NO.: G-1203
(referred #o as "Improvement Plans").
ESTIMATED TOTAL COST OF IMPROVEMENTS: $14,824.00
SURETY: COMERICA BANK
LETTER OF CREDI�/BOND NOS.: 642798-40
This Agreement is made and entered into by and between the City of Palm Desert, a
municipal corporation of the State af Califorriia, hereinafter referred to as "CITY", and the
DEVELOPER.
RECITALS
A. DEVELOPER has presented to CITY for approval a Conditional Use
Permit/Precise Plan of Deve(opment pursuant to provisions of the CITY's
ordinances and regulations relating to development approval.
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B. A Conditional Use Permit/Precise Plan of Development has been
approved, subject to the requirements and conditions contained in the
Resolution of Approval. The Resofution of Approval is on fiie in the Office of
the Director of Community Development and is incorporated into this
Agreement by reference.
C, fn consideration of the approval of a Conditiona! Use PermiUPrecise
Plan of Development for the DEVELOPMENT by the Planning Commission,
DEVELOPER desires to enter into this Agreement, whereby DEVELOPER
promises to install and complete, at DEVELOPER's own expense, all the
public improvement work required by CITY in connection with the proposed
DEVELOPMENT. DEVELOPER has secured this Agreement by
improvement security required by the City and approved by the City Attorney.
D. Complete Improvement Plans for the construction, instailation, and
completion of the imp�ovements have been prepared by DEVELOPER and
approved by the City Engineer. The Improvement Plans numbered as
referenced previously in this Agr�ement 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.
E. An estimate af the cost for construction of the public improvements
and pE;rforming land development work in connection with the improvements
accorc�ing to the Improvement Plans has been made and has been approved
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by the City Engineer. The estimated amount is stated on Page 1 of this
Agreement. The basis for the estimate is on file in the Office of the City
Engineer and is incorporated into this agreement by reference.
F. CITY has adopted standards for the construction and installation of
improvements within the CITY. The Improvenient Plans have been prepared
in conformance with CiTY standards in effect on the da#e of the Resolution of
Approval.
NOW, THEREFORE, in consideration of the approval of the DEVELOPMENT,
DEVELOPER and CITY agree as follows:
1) DEVELOPER's Obliqation to_Construct Improvements.
DEVELOPER shall:
(a) Comply with all the requirements of the Resolution of Approval, and
any amendments thereto.
(b) Complete at DEVELOPER'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.
(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 DEVELOPER's obligations with regard to acquisition by
CITY t�f off-site rights-of-way, easements and o�ther interests in real property
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shall be subject to a separate agreement between DEVELOPER and CITY.
DEVELOPER shall also be responsible for obtaining any public or private
sanitary sewer, domestic water, drainage, and/or utility easements or
authorization to accommodate the DEVELOPMENT.
(e} Commence construction of the improvements by the time established
in Section (21) 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 (21).
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
DEVELOPER, 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. DEVEL4PER shall comply
in all respects with the order of possession.
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Nothing in this Section (2) shall be construed as authorizing or granting an
extension of time to DEVELOPER.
3) Security. DEVELOPER shall at all times guarantee DEVELOPER's
performance by furnishing to CITY, and maintaining, good and sufficient security as
required 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 amaunt of 100% of the estimated cost of the
improvements; and
(b} to secure payment to any contractor, subcontractor, persons renting
equipment, or furnishing labor and materials for the improvements required to
be constructed and installed pursuant to this Agreement in the additional
amount of 50% of the estimated cost of the improvements; and
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 inta 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 �eplacement security with the City Engineer
and filing of a replacement security with the City Clerk, the former security
may be released.
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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 DEVELOPER,
shall not relieve the improvement security given for faithful perFormance of
this Agreement. In the event such changes, alterations, or additions exceed
10% af the original estimated cost of the improvement, DEVELOPER shall
provide improvement security for faithful pertormance as required by Section
(3) of this Agreement for one hundred percent (1 QO%) of the total estimated
cost of the improvements as changed, altered, or amended, minus any
completed partial releases allowed by Sectian (6) of this Agreement.
(b) The DEVELOPER 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
DEVELOPMENT 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 DEVELOPER requests and is granted an extension of
time for completion of the improvements, CiTY may apply the standards in
effect at the time of the extension.
5) Inspection. DEVELOPER 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,
DEVELOPER may request a final inspection by the City Engineer, or the City
fLVIPUB\V CD\760
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 Gouncil. No improvements shall be ftnally accepted 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 DEVELOPER's readiness for such inspection
and DEVELOPER shall not proceed with additional work until the inspection has
been made and the work approved. DEVELOPER shall bear all costs of inspection
and certification. No improvements shall be deemed completed until accepted
pursuant to Section (16) herein.
6) Release of Securities. The securities required by this Agreement shall be
released as fallowing:
(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 DEVELOPER; provided, however, that no
such release shall be for an amount less than twenty-five percent (25%) of
the tatal improvemen# security given for faithful performance of the
improvement wark and that the security shal! not be reduced to an amount
less than fifty percent (50%) of the total improvement security given for
faithful performance until final completion and acceptance of the improvement
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work. In no event shall the City Engineer authorize a release of the
improvement security which would eeduce such security to an amount below
that re�uired to guarantee the completion of the improvement work and any
other obligation imposed by this Agreement.
(c} Security given to secure payment to the contractor, his or her
subcontractors and to persons furnishing labor, materials or equipment shall,
at six (6) months after completion and acceptance of the work, be reduced to
an amount equal to no less than 125% of the total claimed by all claimants for
whom liens have been filed and of which notice has been given to the CITY,
plus an amount reasonably determined by the City Engineer to be required to
assure the performance of any other obligations secured by the Security. The
balance of the security shall be released upon the settlement of all claims and
obligations for which the security was given.
(d) CITY may retain from any security released, an amount sufficient to
cover costs and reasanable expenses and fees, including reasonable
attorneys' fees.
7) Injury to Public Improvements, Public Property or Public Utilities
Facilities. DEVELOPER shalf replace or repair or have repiaced or repaired, as the
case may be, all public improvements, public utilities facilities and surveying or
subdivision rr�onuments which are destroyed or damaged as a result of any work
under this Ac�reement. DEVELOPER shall bear the entire cost of replacement or
repairs of any and all pubfic or public utifity 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 utifity corporation or
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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. DEVELOPER shall, at DEVELOPER's expense, obtain all
necessary permits and licenses for the construction and instaf{ation of the
improvements, give all necessary notices and pay all fees and taxes required by law.
9) Default of DEVELOPER.
(a) Default of DEVELOPER shall include, but not be limited to,
(1) DEVELOPER's failure to timely commence construction of this
Agreement;
(2) DEVELOPER's failure to timely complete construction of the
improvements;
(3) DEVELOPER's failure to timely cure any defect in the
improvements;
(4) DEVELOPER's failure to perfarm substantial construction work for
a period of twenty (20) calendar days after commencement of the
work;
(5) DEVELOPER's insolvency, appointment of a receiver, or the filing
of any petition in bankruptcy either voluntary or involuntary which
DEVELOPER fails to discharge within thirty (30) days;
(6) the commencement of a foreclosure action against the
DEVELOPMEIVT or a partion thereof, or any conveyance in lieu or in
avoidance of foreclosure; or
(7) DEVELOPER's failure to perform any other obligation under this
Agreement.
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(b) CITY reserves to itself all remedies available to it at law or in equity for
breach of DEVELOPER'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 DEVELOPER. 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 DEVELOPER'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.
(c) !n the event of DEVELOPER's default under this Agreement,
DEVELOPER authorizes CITY to perform such obligation finrenty (20) days
after mailing written notice of default to DEVELOPER and to DEVELOPER's
surety, and agrees to pay the entire cost of such performance by CITY.
CfTY 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 DEVELOPER, and DEVELOPER's surety shall be
iiable 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 materiafs, appliances, plants and other
property belonging to DEVELOPER as may be on the site of the work and
necessary for performance of the work.
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(d) Failure of DEVELOPER to comply with the terms of this Agreement
shall cc�nstitute consent to the filing by CITY of notice of violation against all
proposed improvements in the DEVELOPMENT, or to rescind the approval or
otherwise revert the DEVELOPMENT to acreage. The remedy provided by
this subsection (c) is in addition to and not in lieu of other remedies available
to CITY. DEVELOPER agrees that the choice of remedy or remedies for
DEVELOPER's breach shall be in the discretion of CITY.
(e) In the event that DEVELOPER fails to perForm any obligation
hereunder, DEVELOPER 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.
(fl 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 DEVELOPER.
(10) DEVELOPER Not Agent of CITY. Neither DEVELOPER nor any of
DEVFLOPER's agents, contractors or subcontractors are or shall be considered to
be agents of CITY in connection with the performance of DEVELOPER'S obligations
under this Agreement.
(91) Injury to Work. Until such time as the improvements are accepted by
CITY, DEVELOPER shall be responsible for and bear the risk of loss to any of the
improvements constructed or instailed. Until such time as all improvements required
by this Agreement are fully completed and accepted by CITY, DEVELOPER wif( be
responsible for the care, maintenance of, and any damage to such improvements.
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CITY shall not, nor shall any officer or employee thereof, be liable or responsibie for
any accident, loss or damage, regardfess of cause, happening or occurring to the
work or imprQvements 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 DEVELOPER.
(12) Environmental Warrantv. Prior to the acceptance of any dedications
or improvements by CITY, DEVELOPER shall certify and warrant that neither the
property to be dedicated nor DEVELOPER is in violation of any environmental law
and neither the property to be dedicated nor the DEVELOPER 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
DEVELOPER 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. DEVELOPER 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. DEVELOPER'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. DEVELOPER 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 au#hori#y with respect to the presence of any hazardous
substance on the property to be dedicated or the migration thereof from or to
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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) DEVELOPER's discovery of any occurrence ar condition on any
property adjoining in the vicinity of the property to be dedicated that could
cause the property ta be dedicated or any part thereof to be subject to any
restrictions on its ownership, occupancy, use for the purpose for which is it is
intended, transferability or suit under any environmental law.
(13) Qther Aqreements. 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
developers 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.
(14) DEVELOPER'S Obliqation to Warn Public Durinq Construction. Until
formal final acceptance of the improvements, DEVELOPER shall give good and
adequate warni�g to the public of each and every dangerous condition existent in
said improvements, and will take all reasonable act�ons to protect the public from
such dangerous condition.
{15) Vestina of Ownership. Upon farmal finai acceptance of the work by
CITY and recordation of the Resolution of Acceptance of Public Improvements,
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ownership of the improvements constructed pursuant to this Agreement shall vest in
CITY.
(16) Fina! 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 completian 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 shali not constitute a waiver af defects by CITY.
(17) Indemnitv/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 DEVELOPER, its agents, or employees, contractors and
subcontractors in the perfarmance of this Agreement. DEVELOPER 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, (iability or loss of any sort, because of, or arising out of,
acts or omissions of DEVELOPER, its agents, employees, contractors and
subcontractors in the performance of this Agreement, except for such claims,
demands, causes of action, liabiiity, or loss arising out of the sole active negfigence
of the CITY, its officials, boards, commissions, the members thereof, agents, and
employees, including all claims, demands, causes of actian, 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
injuriPs to persons and damages or taking of property resulting from the design or
construction of said DEVELOPMENT, and the public improvements as provided
herein, and in addition, to adjacent property owners as a consequence of the
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diversion of waters from the design and construction of public drainage systems,
streets and other public improvements. Acceptance by CITY of the improvements
shaH 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 af the property to be dedicated or the improvements pursuant to the
appraved 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 DEVELOPER
submitted to the City Engineer before approval of the particular improvement design,
which objectian indicated that the particular improvement design was dangerous or
defective and suggested an alternative safe and feasible design.
After acceptance of the improvements, the DEVELOPER shall remain
obligated to eliminat� any defect in design or dangerous condition caused by the design or
construction defect; however, DEVELOPER shall no# be responsible for routine
maintenance. Provisions of this Section shall remain in full force and effect for ten (10)
years following the acceptance by CITY of the improvements. It is the intent of this Section
that DEVELOPER shall be responsible for all liabi{ity 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.
DEVELOPER 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.
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(18) Personal Nature of DEVELOPER'S Obliqations. All of
DEVELOPER's obligations under this agreement are and shail remain the personal
obligations of DEVELOPER notwithstanding a transfer of all ar any part of the
property within the DEVELOPMENT subject to this Agreement, and DEVELOPER
shall not be entitled to assign its obligations under this Agreement to any transferee
of all or any �art of the property within the DEVELOPMENT or to any other third
party without the express written consent of CITY.
(19) Sale or Disposition of DEVELOPMENT. Seller or other DEVELOPER
may request a novation of this Agreement and a substitution of security. Upon
approval of the novation and substitution of securities, the DEVELOPER may
request a release or reduction of the securities required by this Agreement. Nothing
in the novation shall relieve the DEVELOPER of the obligations under Section (17)
for the work or improvement done by DEVELOPER.
(20) Time of the Essence. Time is of the essence in the performance of
this Agreement.
(21) Time for Commencement of Work� Time Extensions. DEVELOPER
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 consfiruction or completion of the improvements hereunder may
be extended for a period or periods not exceeding a total of finro (2) additional years.
The extension shall be executed in writing by the City Engineer. Any such extension
may be granted without notice ta DEVELOPER's surety and shall not affect the
validity of thi�� 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
RMPU B\V CD\760
not good cause has been shown to entitle DEVELOPER 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 DEVELOPER could not have
reasonably fareseen and, furthermore, were not caused by or contributed to by
DEVELOPER, shall constitu#e good cause for and extension of the time for
completion. As a condition of such extension, the City Engineer may require
DEVELOPER to furnish new security guaranteeing performance of this Agreement
as extended in an increased amount as necessary to compensate for any increase
in constructian costs as determined by the Cify Engineer.
(22) No Vestinq af Riqhts. Performance by DEVELOPER of this
Agreement shall not be construed to vest DEVELOPER's rights with respect to any
change in any zoning or building law or ordinance.
(23) Notices. All notices required or pravided for under this Agreement
shall be in writing and delivered in person or sent by mail, postage prepaid and
addressed as provided in this Section. Notice shall be effective on the date it is
delivered in person, or, if mailed, on the date of deposit in the United States mail.
Notices shall be addressed as follows unless a written change of address is filed
with the City:
Notice to CITY: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attn: Public Works Director
Notice to DEVELOPER: THE COLONNADE ON EL PASEO, LP
210 E. OLYMPIC BLVD, SUITE 202
LOS ANGELES, CA 90015
Notice to SURETY: COMERICA BANK, INTERNATIONAL TRADE SERVICES
2321 ROSECRANS AVE., 5TH FLOOR
EL SEGUNDO, CA 9Q245
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(24) Compliance With Laws. DEVELOPER, its agents, employees,
contractors and subcontractors shali comply with all federal, state and local laws in
the performance of the improvements and land development work required by this
Agreement.
(25) Severabilitv. The provisions of this Agreement are severable. If any
portion of this Agreement is held invalid by a cou�t 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.
(26) 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, construc�tion or meaning of any provisions of this Agreement.
(27) 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.
(28) Incorporation of Recitals. The recitals to this Agreement are hereby
incorporated into in the terms of this Agreement.
(29) Entire Aqreement. 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.
(30) Interqretation.This Agreement shall be interpreted in accordance with
the laws of the State of California.
(31) Jurisdiction. Jrarisdiction of all disputes over the terms of this
Agreement shail be in the County of Riverside, State of California.
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IN WITNESS WHEREOF, this Agreement is executed by the parties as of the date
hereinabove first written; by CITY, by and through its Mayor.
���'`
THE LONNADE ELPASEO, LP
By: e Colonnade n EI Paseo, LLC, its general partner
By: Jack Corrigan, its Chief Operating Officer
CITY OF PALM DESERT
By:
MAYOR
(Proper Notarization af
DEVELOPER's signature is
required artd shall be attached)
ATTEST:
CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY
Rb1NUB\VCDV60
CALIFt)F�NIA At,�.-PtIRPQSE �►CKMOWi.EDG�kItENT
State of Califarnia
County�of �('(�Qel-'�5
On 10'(�(���� b�fore me, �t�►c� C��t11i1� ��!v�ry�t 1�Ub�1 C.. ,
p�e He nsen Mame arM Ue oi Othcer
personaily appe�red �t�,t.. 0«1�
Nart�g(sy of Signer(a)
�
wtw provec!ta rne on khe basis of sa#isfactory euidence to
be�tF�e person(sj whQse narr�e�s} is/afe subseribed to the
within irtstrumerrt and acknowledg.ed to me that
hefshel�hey e�c;uted the same in his/her/�heit authorized
rt�, eapa�ity(ies�, and tl�at by h�s/her/their signature(s) an the
,,.�:,, D>;�€�}MENIANE � instrumerrt the persort(s}, or ths entity upan behalf t�f
CG��-3�1.# 1756571 z �vhich the person(s�acted, exeauted the ins�rumen�.
� ..�a ,
Z - j ?JOThR�PU6�IC-CALIFORNlA�
— LOS AHGELES GqUNTY i certi�y under PE�iAL"TY OF P�RJURY under the laws
'°`"��Nty Comm.�xy.�ir-es July 12,20�� o��,�S�ate of Gali#orn�a that fhe f�regoing paragra�h is
true and eorrect.
WITNESS my hand an eal. '"
Signature
Ptacg Motary Se�y!Rbove re q�Notary PubBc
o�-�a�v�c
Though ths intormation t.�laaw is not reqr�ired by law,i#rrray prave vaJuable fo perso�s relying on the documenf
arrd ca�td prevent frauduler�!rem�va!and reatfachmenf of thrs farrn ta anathe�document.
Descriptio�n o#AttacFied Qocurnent 1
Title or Type of Document: _ "f
Document Date: Number of Pa �
Signer(s)Other�han Namezi Abo�e:
Capac�ty(ies} Ctaimet! by Signer(s) �
Signer's Narne: Signer's tVarne:
O fndividual �tadivi�tual
� Corporate Ofiicer—Titte(sy: �J.�orporate t7fficer—Title(s);
(3 Parfner—L� Limited CJ G�rae�a{ _ ❑Pgrtner—{� Limi#ed O GQneral
0 Attorrzey in Fact �� �Atforne}!ir�Fact � �"
TqR ot th�mb here 7oR of thumb here
D Trustee D Trustee
p Guardian or�on a#or !�Guardian nr Cor�servator
O Other: 0 Other.
.
Signer Represerating: Signer Is Represeniing:
4,2()6?�NattonalNotaryASSaciaHorP��.B93DQaSo2a:Ave.,P.17�0ooc2402•Chat6wort�,CA9f3t&2402�•www.NaUonafNotary.o[g Item85807 RBbrdar:CaOTWI-FreQ1�0-876-5827
_ 1 _
CITY OF PALM DESERT Borr� No. 2081039
STANDARD FORM Px�Mztr�.: �3,465.00 �s
FAITHFUL PER�ORMANCE BOND �'OR A TERM OF TWO (2) XE�s
NAME OF DEVELOPMENT: PP 07-08 THE COLONNADE
NAME OF DEVELOPER: DESERT EL PASEO, LP and
HARKHAM FAMILY ENTERPRtSES, LP
NAME OF SURETY: Norfih American Specialty lnsurance Company
EFFECTIVE DATE: Aprit 18,20p8
AMOUNT OF BOND:' $148,244.00
BOND NUMBER: 2os�o39
PREMfUM: $s,465.oa 4
KNOW ALL MEN BY THESE PRESENTS: That the person, firm,
corporation, entity, or otherwise, named an Line 2 above, without regard to
gender and number, hereinafter referred to as PRINCIPAL, and fhe corporation
named on Line 3 above, a corporation authorized to do business in the State of
California and presenfily possessed of authority under Title 6 of the United States
Code to do business under Sections 6 to 13 thereof, in the aggregate amounts
hereof, hereinafter referred to as SURETY, are }ointly and severafly held and
firmiy bound unto the City of Palm Desert, a municipal corporation of the State of
Cali#ornia, hereinafter referred to as CITY, in the sum mentioned on Line 5
above, for the faithful perFormance of that certain iMPROVEMENT AGREEMENT
between PRINCIPAL and CITY regarding th� subdivision named on Line 1
above, as required by the provisions of the Subdivision Map Act and CITY
T:lgoldmine\MailSoxlAttachlFaithful Pertormance Bond Standard Form.doc �
_2 _ -
ordinances, resalutions, rules, and regulations, for the payment af which sums
wel! and truly to be made, PRINCIPAL and SURETY hereby bind themselves,
their heirs, administrators, executors, successars and assigns, jointly and
severally, firmly by these presents.
THE CONDITION of the faregaing obligation is such that if the said
PRWCIPAL shall #aithfully perform the covenants, conditions, and agreemen#s
contained in that certain fMPROVEMENT AGREEMENT between PRINCIPAL
and CITY regarding the development named on Line 1 of Page 1 hereof, which
said agreement is by this reference incorporated herein, on its part to be kept
and performed, in a manner and form therein specified, and shall furnish material
in compliance with the specifications and perform all #hat certain work and -
improvement in said CITY which is more particularly described in said
lMPROVEMENT AGREEMENT, then the obligation with respect to the faithful
perFormance of said IMPR4VEMENT AGREEMENT shall be void, atherwise #o
remain in full force and effect.
The said SURETY, far value received, hereby stipulates ar�d agrees that
no change, extensian of time, alteration or a�dition to the terms of the
iMPROVEMENT AGREEMENT or to the worlc to be performed thereunder or the
specifications accompanying the same shall in anywise affect its obfigations on
this bond, and it does hereby waive notice of any such change, extension of time,
alteration or addition ta the terms of the IMPR�VEMENT AGREEMENT, the
work, the specifications or any feat�re or item of performance thereunder. In the
event it becames necessary for CITY to bring an action ta en#orce this bond,
T:\galdminelMailBoxWttachlFaithful Performance Bond Standard Form.doc �
� �
- � -
SURETY si��al! pa�� GITY'S re�sonable aftort�ey'� �ees ai�� cou�-� casts in
cannection therewitl�i.
1i� WITNESS WHEREQF, PRIiVCIPAL ^atld SURETY haVe �XGCL1t�d this
instrument on the date mentioned on Line 4 af Page 1 hereof.
Desert E! Paseo, LP ,
' ,, , !f
`, . :
BY• f t;
PRINCIPAL � "
Moshe Afilalo, operating manager of
Aflalo Equities, LLC, its Generai Partn�r
Harkham F ' Enterprises, LP
B�: � Z/
PRINCIPAL ;
CA4.IFORNIA ALL-PURPOSE�►CiC�14WLEDGMEN4 � No.5t93
� State of Galifornia } OPTIONAI.SECTION�
� CAPACITY CLAIMED SY SIGNEEt
�i0U11�}I 0� SAN DIEGO � Though statute dces noi require the Notary to
fl! in the data befow, doing so may prove
invaluable to persons relying on the document.
On �/18/2008 beforeme, ����� �• DAVIS, NOTARY PU�iLIC ❑INOIVIDUAL
�C4Rf'ORATE OFFIC�R{S)
personally appeared MATTH�:W G �A,XNOR
TITLE�S�
who proved to me on the basis of satisfactory evidence to be the person(s) whase name(s) is/are �pARTNER(S) ❑ LlMITED
subscribed to the within instrument antl acknowledged � G�NERAL
to me that he/she/they executed the same in his/her/ �ATT�RNEY-IN-FACT
their authorized capacity(ies}, and that by his/her/thefr
signature(s)on the instrument the person(s),or the entify ❑TRUSTEE(5�
upon behalf of which the person(s) acted, executetl the [�GUARDIAN/CONSERVATOR
�,�;,.;�;,;�.���"�-°�� instrument. OTHER:
�, q�i�t�FiAl��i.4�VI5 ❑
�4 kyµ`Y, j CqMiJi.��17374�� � l certify untler PENALTY OF PERJURY under the laws of
N W ��, q m Np�q�Y PUiiUC-CAL�fQAN�p' N #he State of California that the foregoing paragraph is
� � �; ' � SpP1 DIEGO COl1NN
MyCornm F�P� �P�tL21�2oa� true and correct. SIGNER IS REPRESENTING:
�r�°r �--�-��i
�^�� WITIV�SS flly I13f�CI flC1CI O�ICIB{S@1I. NAM£OF PERSON(S)OR EM ITY(IES)
�
;z Signature of Notary
,
;� QPTIONAL SECTION
TMIS CERTIFICATE MUS7 BE ATCACHED TO TlTLE OR TYPE OF DOCUMENT
THE DOCUMENT DESCR{BED A7 RIGHT: �
NUMBER OF PAGES DATE�F DOCUMENT
Though ihe data requested here is not required by law,
it coufd prevent fraudulent reattachment of this torm. SIGNER(S)OTHER THAN NAMED ABOVE _ . —___ ..
"`�;'. � w.
T:1goldmineWlailBox\P.ttachl�aithful PerfoRnance 8ond` lc�ard�orm.doc ---
CALIFORNIA ALL-PURP4SE
CERTIFICATE OF ACKN�WLEDGMENT
State of California
County of � �p�e�
On 2� D'8 before me, ti f � P , �
(Here insert name and title of he o�cer)
personally appeared �R� N��1r�nm �
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 ta me that he/she/they executed the same in his/k�er/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 persan(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
DAViD MENIANE
.,i'`�?`'�" • CO�lIM.#1756571 Z >
�' � ,° NOTARY PU8L1C-CAL.lFORNIA� •
WITNESS m icial seal. ? � : �dg pN��LfS COUNTY
N,y Comm.Expires July 12,2011
� {Notary Seal)
Signature ofN ta A lic
U
ADDITIONAL�PTIONAL INFORMATION
INSTRUCTIONS FOR COMPLE G THIS FORM
Any ackno�vfedgmenl con�pleled rn Califor must ronlain verbiage exacfly as
DESCR[PTI�N OF THE ATTACHED DOCUMENT appears above in�he nota�y sectran or sepamte acknoivledgment fa•m nurst be
properly cornple�ed and altached 1ha1 docuurent. The on/y exceplio�r rs if u
docunrenl is lo be recorded o ide of Calrfornra.In such ins�ances,a�ry allernarrve
(Title or description oPattached document) acknowledgmenl verbia as»tay be prrnted on such a document so long as the
verbiage does not r rtrre 1he nolary to do soenething that is i/lega!fw•a nolary in
Calrfornia (i.e erl�ing ihe authori�ed capncity of rhe signei). Please check 1he
(Title or description of atlached document continued) doc:nnent refuUyfor proper nolaria!ioordiitg and artach lhisjonn ijrequired.
fate and County information must bc tBe SYate and County where the document
Number of Pages DOCUlnerit 13ate signer(s)personally appeared befora the notary public for acknowledgment.
• Date oP notarization must be the date that the signer(s)personally appenred which
must also be the same date the acknowIedgment is completed.
(Additiona[information) • The notary pnblic must print his or her name as it appears within his on c�r
commission follo�ved by a comma and then your title{notary pu6lic).
• Print the name{s) of document signer(s) who personally appear at the time of
Eiotarization.
CAPACTTY CLAIMED BY T IGNER • Indicate the correct singular or plural forms by crossing off incorrect Porms(i.e.
� Individual (s) 13e/she/tl3ey-is/aFe)or circling the cnrrect forms.Failure to correctly indicate this
information may lend to rejection of document recording.
❑ COl'pOC3tE�ff� t' • The notary seal impression must be clear and photographically reproducible.
Impression must not cover text or lines.If seal impression smudges, re-seAl if a
�e� s�fficient area permits,othcrwise complete a different acknowledgment form.
❑ �'a er(s) • Sigoature of the notary pubiic must match the signature on 61e with the office of
the county clerEc.
❑ ttorney-in-Fact . Addi[ionat information is not required but could help ta ensure this
Trustee(s) acknowledgment is not misused or attached to a different document.
� Other Indicate title or rype of attaclied document,number of pa�es and date.
. Indicate the capacity claimed by tltc signer. If the claimed capacity is a
corporate ofGcer,indicate tlie title(i.e.CEp,CrO,Secretary).
• Securely attach this document to the signed document �
2008 Version CAPA v12.10.07 800-873-9865 www.t�]otaryClasses.com
CALIF�RNIA ALL-PURPOSE
CERTIFICATE �F ACKNUWLEDGMENT
State of California
County of Q�,��
On ,22 p before me, OJs� � I� �` � ,
(Here insert ume and title of A of'(icer)
personally appeared��S�j� ��6.�� ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s} is/are subscribed to
the within instrunc�ent and acknowledged to me that he/she/they executed the same in his/her/�lieir authorized
capacity(ies), and that by his/her/their signature(s}an the instrument the person(s},or the entity upon behalf of
which the person(s}acted, executed the instrurnent.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
L�AVID MENIANE
•- e CO^�IM.# 1756571 Z 7
WITNESS my ha �i�cial seal. i� '� • NOTARY pUBLIC-CALIFORNIA� -
LOS ANGELES COU�FTY
� h1y Comm.Expires Jufy 12,2011
(Notary Seal)
Signaiure of?�otary t
1
ADDITIONAL OPTIONAL INFORMATION
INSTRUCTIONS FOR COMPLETING T ORM
Any acknotvJedg»}ent completed in Calrfornia mus� c t�i ver6iage exactly as
DESCRIPTION OF THE ATTACEIED DOCUMENT appears rrbove in lhe nofary seclron or a separ•a! cknoivledgment form nrarsr be
properly co�itpleted and attached to lhal d menl. The only exception is ?f a
doctuTienl is�o be recorded orrtside of C �ornia. In such instances,arry alJer•nalive
(Title or description of attached document} ackno�vledgme»t verbiage as may prrnted on such a document so long as the
verbiage does no1 requ�re Ihe rmy to do some[hing lhat is illega!for a nolary in
California (r.e. cert�in e autha•ized capacity oJ the srgnerJ. Please check!he
(Title or description of anached document continued) doctrn�ent carefeilly p:•oper nolarial irording and aitach ihisjonn ijreguired.
• State County information must be tlie State and County where the documcnt
Number of Pages DOCUtrient Date ' er(s)personally appeared before the notary public for acknowledgment.
Date of notarization must be tE�e date that the signcr(s)personally appeared which
must also be the same date the acknowledgment is comple[ed.
(Additionul information) • The notary public must print his or her name as it appears wid�in his or Uer
commission followed by a comma and then your title(notary pnblic).
• Print the name(s)of document signer�s) who personatly appear at the time of
nofarization.
CAPACITY CLAIMED BY THB S ER • Indicate the conect singular or plurat forms by crossing off incorrecc forms(i.e.
� Tndividual(s) k�e/she/4he�-is/ere)or circling the correct fornu.Foilure to correctly indicate tliis
information may lead ro rejection of document recording.
❑ Corparate Offieer • The notary seal impression must be clear and photographically reprodacible.
lmpression must not cover text or lines.If seal impression smudges,re-seal if a
(7'it � sufficient area pertnits,othenvise complete a different acknowledgment form.
� Partn S� • Signature ofthe notary public must match{he signature on file with the office of
tl3e county clerk.
� orney-in-Fact . Additional in€ormatian is noi required but could help to ensure this
TI'UStCC�S� acknowledgment is nof misused or atlached to a different document.
❑ Other . Indicate title or type of attached document,number of pages and date.
. Indicate the capacity claimed by the signer. lFtlie claimed capacity is a
wrporate ofTicer,indicate the tide(i.e.CEO,CFO,Secretary).
• Securcly attach this document to tlie signed document
2008 Version CAPA v12.10.07 800-873-9865 www.NotarvClasses.com
NAS SURETY GROUP
NORTH AMERICAN SPECIALTY iNSURANCE COMPANY
WASHINGTON INTERNATIONAL INSURANCE COMPANY
GEN�RAL POWER OF ATTORNEY
KNO�V ALL MEN BY 1'HESE PR�S�NTS,THAT North Ame�ican Specialty Tnsurance Company,a caporation duly organized and exis[inp under
]a�vs of the State of New Hampshire,a�id having its principal office in the City of Manchester,New Hampshire,and Wasliington fnternational
Insurance Company,a corporaUon organized m�d existing under tlie laws of ihe State of Arizona a�id having its principal office in the City uf�hasca,
Iilinois,each does hereby make,constitute and appoint:
JOHN MALONEY,1-IBLEN MALOTlE'Y,MARK D.IATAROLA,
KAREN JBAN HALL and MATTHBW C.GAYNOR
JOCNTLY OR SEVERALLY
Its true aitd lawful Attorney{s)-in-Fact,to mal:e,e�ecule,seal a�id deliver,for and on its Uehalf and as its act and deed,bonds or odier writings
obligatory in the nature of a bond on behalf of each of said Companies,as surety,on cotttracts of surerysliip as are or may be required or perniilted by
la�v,regulation,contract or othenvise,provided U�at no bond or undertaking or contract or suretyship exec�rted under tlxis authority shall exceed tlte
vnount of: TWENTY-FIVE MILLION($25,OOQ000.00)I�OLLARS
This Power of Attomey is granted and is signed by facsiinile under and by Uie autltorily oFthe following Resol�tions adopied by tl�e BoArds of
Directors of both North American Specialty Insurance Company a�id Washinaton:Cnternational Insurance Company at meetin;s duly called and held
on the 24'h of Marcl�,2000: '"
"RESOLVED,Uiat any iwo ot'the President,any Execvtive Vice President,any Vice President,any Assistant Vice President,the Secretary or any
Assistant Secretary be,and each or any of them hereUy is authorized co execute a Po�ver of Attorney quulifying the attorney named in the given Po�ver
of Attorney to execute on behaif oF tEie Company bonds,underlakings and alt coatracts of surety,and tliat each or any of them liereby is autl�orized to
attest to the execution of any such Power of Attprncy and to attach therein fhe seal of die Company; and it is
Y
PURTI-IER RESOLVED,that U�e signature of such of�'icers and tlie seal oFthe Company may be affixed to any such Power of Attomey or to any ,
certi f icate relating ihereto by facsimite,and any such Power oFAttorney or cerCilicate bearing such facsimile signatures or facsimile seal sliall be
bindin�upon tlie Company when so affixed and in[he future wid�regard to any bond,undertaking or contract ofsurety to which it is attached."
pnUUulupriq `,uanm�,.,,,,
������u.urY���ai, �/���^� �iPt1QNA(��;'�.,
:QE......a..N,y+4� ,;�G,,Y...,...,,..,rG%.
�_;C,�PP A*T.<'.G�� � �"a�,:' e:Pf'y'
^�f $EAL _n= Steren r.�nucrson,PrcSidcnl&Chic(&�ecu�ivc Officcrof Wushinglon Inlcr�mlion�E Insurance Company S ��!�����jE i�^'
=w�Y� 1973 r�;n� �ce Cresidenl of Nor11i American Specwlly Insurnnce Company ?y•, i o;
�y� h4uvs`��e.� :ys'c, ,tRQGtl1 :a.
; ya,-'
,''�����iin1111Uj�L�`� ���G'[ ''''`�",n�k..••'��,�•
Ry �"'� ..,�a••,••
David I1i.Layman,Vice Presidmt ofWm'l�ingfm�Inlemalimud Insw:v�ee Comp:my&
Vice Prcsident of Nortl�Ameriein$pKi�Jty[n5ur�qCC Ccmpany
IN WITNESS WEIEREOF,Norch American Specialty Insurance Compa�ry and Washington Inteinational lnsui�auce Company have caused tEieir
afficial seals to be liereunto aftixed,a��d these presents to be signed by lheir aufliorized oPficers this 30U� day of January 20 U8
Ya•th Amcricnn S�ecinity Insur�ncc Com�nny
Washington Iaternational Insurance Camp�ny
State of IUinois
Counry o€Du Page ss:
On this 30th day oF January ,20 03,Uefore me,a Notnry Public persona[ly appeared Steven P.Anderson ,P�•esident and CGO of
�Vashington International Ensurance Company and Vice President of North American 5pecialty Insurance Company a�id David M.Layman,
Vece President of Washington International I«surance Company and Vice President of Norch American Specialty Insu►•ance Company,
personally I:nown to n�e,who being by me duly s�vorn,�cluiowledged that ll�ey signed the above Po�ver of Attorney as off cers of a��d
acknowledged said instrument to be the voluntary act a��d deed ofdieir respective companies. � �
"'OI'F1CirlL S�#1L" � _ . _ _� %��Q
SUSAN ANSEL �'�Ga-r v
naidryPu2lic;Sialeaf�Jinas Susan Ansei,Notary Publec
tf.j Cammission�cpices 7�&�2,'�3
.,fafF�t`. ,n
I, James A.Carpenter , die duly elected Assistant Secretary of North American Speciakty Insura��ce Company and Washington
International Insurance Company,do hereby certiFy that d1e above azid Foregoing is a true and correet copy of a Power of Attorney�iveu by said North
American Specialty Insurance Company and Washinaton International Insurance Company,which is stiU ii�full force and effect.
IN W[TNESS WHEREOF,I have set my hand and aCfixecl tiie seaks of the Companies this 1���ay of APRII,, ,20 08.
�-XT,�J.c��1°"c.�.
i
Jamrs A.Carpenter,V[ce Presidenl&Assislart5ecteWp�oflVashi¢baon�ntemmicaal ln;urance Company&
North Ameriean Specialty Insu�nee Company
- 1 - .
CiTY OF PALM DESERT
STANDARD F�RM�• Bot�m No. 2091039
PAYMENT BOND PREMIIJII�IIV'CLUDED Q•p��pgM.�CE$OND
(LABOR 8� MATERIALS�
NAME O� PROJECT: PP 07-08 THE COLONNADE
NAME OF DEVELOPER: DESERT EL PASEO, LP and HARKHAM
FAMILY ENTERPRISES, LP
NAME OF SURETY: North American Speciaity insurance Company
EFFECTIVE DATE: Aprii 98, 2048
AMOUNT OF B4ND: $7�4,'122.00
BOND NUMBER: zos�a3s
PREMIUM: IS ZNCLUDED IN PERFORMP,NCE BOND •
KNOW ALL MEN BY THESE PRESENTS: That the person, firm,
corparation, entity, or otherwise, named on Line 2 of Page 1 hereof without
regard to gender and number, hereinafter referred ta as PRINCIPAL; and the
corporation named on Line 3 of Page 1 hereof, a corporatian authorized to da
business in the State of California and presently possessed of authority under
Title 6 of the United States Cod� to do business under Sectian 6 to '13 thereofi in
the aggregate amoun#s hereof, hereinafter referred to as SURETY; are joint(y
and severely held and firmly bound unto and all materialmen, persons,
companies or corporations furnishing materials, provisions, provender or other
supplies used, in, upon, for or about the performance of the work contracted to
be executed or performed under the terms of that certain IMPROVEMENT
AGREEMENT hereinafter mentioned and all p�rsons, companies or corporations
T:1aoldminelMailBoxlAttach\Labor&Materials Bond Standard Form.doc
_2 _ ,
renting or hiring teams or implements, or machinery, for contributing to said work
to be done, all persons who performed work o� labor upon the same, and afi
persons who supply both work and materials, and whose claim has not been paid
by PRiNCiPAL in the just and full sum mentioned on L.ine 5 of Page 1 hereof for
the payment whereof, we[i and truiy to be made, said PRINCIPAL and SURETY
bind themselves, their heirs, administrators, successors and assigns, jointly and
severally, firmly by these presents.
THE CONDITION OF THE OBL.IGATION is such that whereas the above-
bounden PR1NCiPAL has entered into an IMPROVEMENT AGREEMENT with
fhe City af Palm Desert, a municipal corporation of the State of California,
�
hereinafter referred to as CiTY, for the canstruction of public improvements in #he '
project named an Line 1 of Page 1 hereof, which said IMPROVEMENT
AGREEMENT is by this reference incorporated herein:
NOW, THEREFORE, if the above-bounden PRINCIPAL, contractor,
person, company or carporatian, or his or its subcontractor, or subcantractors,
fails to pay for any materiafs, provisions, provender, or the supplies, or teams
used in, upan, for, or about the perFormance of the work contracted fo be done,
or for any work or labor done thereon of any kind, or for amounts due under the
UnempSoyment fnsurance Act with respect to such work for labor, SURETY on
this bond wifl pay the same, in an amount not exceeding the sum specified �n this
bond, and also, in case suit �s brought on this bond, a reasonable attorney's fee
which shall be awarded by the court ta the pre�ailing party in said sui#, said
T:1�oldminelMailBoxlAttachlLabor&lviaterials Bond Standazd Form.doc
,
- 3 -
a�`�o;n�r�'s �Fee te be taxed �s costs in sai� suit���d ic� iaE incluc�ed i�7 the�udgm�nt
therein ��ei�de���a.
Tlzis hoi�d is executed �nd filed to comply wifih �he pro�isions of ali
applicable ClTY ordinances, resolutians, rules and regufations supplemental
thereto; and all amendments ihere�o; and shall inure to the benefit af any and aIl
mat�rialmen, persons, companies or corporations entitl�d to file claims under
and by virtue of the provisions thereof.
[N WITNESS WHEREOF, PRiPVCIPAL AND SURETY have executed fihis
instrument the date mentioned on Line 4 of Page 1 hereof.
Desert E�as�o, LP ��A ,
CALIFORNIA ALL-PllRPOSE ACKIVOWLEI3GIMEN'T � No.5S93
State of Califarnia ) OPTIONAI.SEGTiON�■
CAPACiTY CLAIMED BY SIGNER
� County of S� DIEGO � Though statute does not require the Notary to
fiU in the data below, doing so may prove
invaluable to persons relying on the document.
p� 4/1$/2008 beforeme, DEBORAH D. DAVIS, NOTARY PUBLIC , ❑INDIVIDUAI.
❑CORPORA7E OFFICER(S)
personally appeared MATTHEW C GAYNOR
TITLE(5�
who proved to m� on the basis of satis#actory evidence to be the person(sy whose name(s) is/are �PARTNER(S) (]LINfITED
subscribed to the within instrument and acknowledged �GENERA�
to me that he/she/they executetl the same in his/her/ �ATTORNEY-fN-FACT
their authorized capacity(ies), and that by his/her/their
signature{s)on the instrumentthe person(s},orthe sn#ity ❑TRUSTEE{S)
upon behalf of which the person(s) acted, execu#ed the �GUARDIAN/CONSERVATOR
���FN�. , instrument. �OTHER:
,� :� p�t�(��:��{�k D.DHvlS � certify untler PENALTY OF PERJURY under the laws of
N �;t�{�(�l.;#'[737�#i 1
� �, w-� ., �:R NO�`A!'y PUI3IJC�CALIFORNIA N the S#ate of California that the foregoing paragraph �s
� tv9 , S'�N ClEGO CQt1h1TY true and correct.
,,F°' �!y Comm.F�c�. ApRkl2t.2ot� SIGNER !S REPRESENTING:
WITNESS Illy haI1LI afICI OffIC11I S21I. NAME OF PERSON(5)OR EN711YQES}
� � � ���-
Signature of NoYary
� UPTIONAL SECTION
� THIS CERTIFICATE MUST BE ATfACHED 70 TITLE pR TYPE OF DOCUMENT
� THE DOCUMENT D�SCRIBED AT RfGHT:
Nl1MBER OF PAGES DATE OF DOCUMENT
Though the data requested here is not required by law,
it could prevent fraudulent reattachment of this form. SIGNER(S}OTHER THAN NAMED ABdVE
T:1goldminelNiailBoxlAttachlLabor&Materials 8ond Standard Form.doc ---
CALIFORNIA ALL-PURPOSE
CERTIFICATE UF ACKNOWLEDGMENT
State of California
County of 2
On 22 before me, t 'E �, �p � ',L
� ,
(Here insert name and title of c o�ccr)
personally appeared ��� l��y,��,C.�q�m ,
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 instn,unent the person(s}, or the entity upon behalf of
which the person(s)acted,executed the instrument.
I certify under 1'ENALTY OF PERNRY under the laws of the Sta.te of California that the foregoing paragraph
is true and correct. �
pAV{D iv1ENfANE
C01JfM.# 1756571 z y
WITNESS m h �cial seal. �'�a ' NOTARY PUBLIC-CALIFORNIA� �
y Z ` � LOS AHGELES COUNTY
�� My Comm.Expires JuEy 12,2011
Signuture oft�lotary u ic (Notary Seal)
ADDITI�NAL OPTIONAL INFORMATION
INSTRUCT10N5 FOR COMPLET HIS FORM
Any ack�toivledgment compleled in Calijornia nt contarn verbrage exac!!y as
DESCRIPTION OF THE ATTACHED DOCUMENT a/�pears above in!he nota�y seclron or•a se a�e acknoiv/edgment form mvs!be
propsrly compleled and at(ached to 1h document The only excep�ion is if a
document is fo be recorded ordsrde �ifornia.In such instances,arry alter•rrative
(TitEe or descripYion ofattached document) ackno�v(edgme»t verbiage as n be prinled on such a document so long as the
verbiage does no1 require nolary to do something lhat is illegaf for a rrolary in
Californip(i.e, cer1�' the arrtha•rzed capacity of lhe signer). Please check the
(Title or description of aMached document continued) document carejull ar proper nolarial ivor•di�rg und attach lhisjorm ifreguired.
Number of Pages L7ocumene Date • State County information must be thc State and Counry where the document
' er(s)personally appeared before the notary public for acknowledgment.
Date of notarization must be the date that the signer(s)personally appeared which
must also be the same date the acknowiedgment is completed.
(Additional information) • The notary public must print his or lier name as it appears witl�in his or her
commission folfo�ved by a comma and then your title(notary public).
• Print the name(s) of document signer{s) who personully appear at the time of
notarization.
CAPACITY CLATMED BY THE SIG R • Indicate the corcect singular or plural Eorms by crossing off inconect Eorms(i.e.
O individual(s) f�elshe/fl�is/are)or circling tl�e correct forms.Failure to correcUy indicate this
informafion may tead to rejection ofdocument recording.
0 Corporate Officer • The notary seal impression must be clear and photographically reproducible.
Impression must not cover text or lines. 1f seal impression smud�es,re-seal if a
(Title) su(iicient area permits,othenvise complete a different ackno�vledgment form.
O Partner • Signature of ihe notary public must match the signature on fi!e with the office of
the county clerk.
❑ Att ey-in-Fact . Aaditiona� information is not required but could help to ensure this
� USt£6�5� ackno�vledgment is not misused or attached to a different document.
Other . Indicate title or type of attached document,number of pages and date.
. Indicate the capacily claimed by ilte signer. IP the claimed capaciry is a
corporale officer,indica[e the ti[le(i.e.CEO,CFQ Secretary).
• Secnrely attacl�this dacumenY to the signed document
2008 Version CAPA v 12.10.07 8a0-873-9865 www.NotaryClasses.com
NAS SURETY GI20UP
NORTH AMERICAN SPECIALTY INSURANCE COMPANY
WASHINGTON INTERNATIONAL INSURANCE COMPANY
GENERAL POWER OF ATTORNEX
KNOW ALL IvIEN IIY TI-T�SE PItESL"NTS,TI�.4T Nortli American 3pecialty Insurance Company,a cwporation duiy organized and existing under
l:+ws of the State of New Hampsliire,and having its principal oFfice in the City oPManchesEer,New Hampshire,and Washington.Intsrnational
Insurance Conipany,a corporation organized and exisflng wider Ehe laws of tlie Siate of Arizona and l�avinp its principll office in d�e City of[tasca,
Illinois,eacl�does hereby make,constitute and appoint:
JQHN MALONEY,HELEN MALOIdEX,MAFZK D.IATAROLA,
KAREN JEAN I-[ALL and MATT1�iEW C.GAYNOR
JO�IVTLY OR SEVERALLY
Its true and lawful Attomey(s)-in-Fact,[o make,execute,seal and deliver,Por and on its behalf and as its act and deed,bonds or olher writings
obligatory in d�e nature oFa bond on behalf of eacl�ofsaid Companies,as surecy,on contracts of suretyship as are or may be required or permitted by
taw,regulatio�;contract a'odtenvise,provided that no hond or undertakina or contract or suretyship execated under this authority shall exceed the
amount of: TWENTY-FIVE MTLLION(S25,000,600.00)DOLLARS
This Power of Atton�ey is granted and is signed by facsimile under and by die authority of U�e following Resolutions adopted by tl�e Bom•ds of
Directors ofbath North American Specialty Insurance Company and W�shington Intei�national Insurance Company at mee[ings duly called and held
on tfie 24°i of Marcl�,2000: ''
"RESOLVED,that a�iy two of Uie President,any Executive Vice President,any Vice President,any Assistant Vice C'resident,the Secretm•y or any
Assistnr�t Secretary be,and eacli or any of tl�em hereby is authorized to execute a Power of Aitomey qualifying the attorney named in the given Power
of Attomey to execute on behalf of the Compa��y bonds,undertakings and all contracts of surety,And tF�at each or any oF diem hereby is authorized to
auest to the execution of any suclt Power of Attomey and to attach therein the seal of the Company; a�id it is
Y
PURTEIER It�SOLVGD,that the signature oPsuch officers and the seal of the Company may be affixed to any sucli Power of Attomey or to any _
certificate relating tl�ereto by facsimite,a�id any sucli Power of Attorney or certiGcate bearing suclz facsimile signatures or facsimile senl shall be
binding upon the Company wl�en so afGxed and in Ehe future wiUi regm•d to any bond,undertaking or contract of surety to which it is attached."
�qtAill�r�U�ri �„aui na,,,,
`������ti��AUTY�N 4i� Q,dpl10HA[�,y''�a
��yQ:•'PPOR' `PG�� ``��..:...........��,
-r:o° �r�;q,% B ` - ��,r '��=
=�' Svu ic�i Steven P.Mderson,PreslJent&Chlef Eseculive Ofltcer af Washington Internatlanal Insuranee Compaoy& :ti:C��Pn��:�^"
=�tiZ� 9B)3 ��n� VicePresidealofNoralaAmeriesn$pecioJ�ylnsuranecCompany ry'; S��L ;�;
�� j!pMPsa`Pi��s :��`•.AAitGtih ;�aa�:
f'/'�����An1li,N�a``� �y �='°wra ��^',rR,`7�"-'—'� ,����'%���„*�����`�?,,`
�f
UxviJ Df.Loymoo�Vicc PicsiJcut of Washing�on Inla�+nlioaal lnsurnnce Compnny S
Vice McsiJenl af Norlh Ame�ir.in Speci�lly 6isnnuce Campsn�.
[N WITNESS WHER�OF,North Americau Specialty Insurance Company and Washington Internationa)Insurance Company liave caused their
officiat seals Yo be liereunto affixed,and Qiese presents to be signed by their audiorized o€ficers this 30th day of January 20 Os
NorU�Amcric:m Spccixtty Insurancc Company
tVushington Intcrnational Insur�nce Company
5tate of Illinois
County of Du Pa�e ss:
On tl�is 30th day oF �an�_,_,.�arYA_�20 08,before me,�Notary Public personaEly�ppea��ed Steven P.Anderson ,President and CEO of
Washington Intemational lnsurance Compv�y and Vice President of Nortl�A�3ierican Specialry Insur;uice Company tu�d David M.Layman,
Vice President of Wasl�ingto�i lnternntional Insurance Compazry a��d Vice President ofNorth American Specialty Insurance Company,
personally kna�m to me,�vho being Uy me duly swom,ackno�vledged tl�at Uiey signed the above Potver of Attorney as officers of and
ackno�vledoed said instrument to be the voluntary act and deed of iheir respective companies. !� ,
"OrFfGIAL Sk.:�L" � /
SUSAN AN3EL , ����.-�- G��
hOld�y°uLIiC,5131eai Jinds 5usan Ansel,Notary Public
lJ,yCommissian Fxrires7tFV'ts�'`OB
w:�.�.
I, J1mes A.Cu�enter , the duly elected Assistant Secretary of North American Specialty insurance Company and Washington
lnlei��alional Insurance Company,do hereby certiFy d�at Qie above and foregoing is a GZ�e and cornect copy of a Power of Attomey given by said North
American Specia[ty Insurv�ce Company and Washington International Insurai3ce Company,which is still in full fo�re and effecc,
3.8TH
1N WET`NESS�Vl-[EREO7=,I have set my hand and affixed tiie seals of tl3e Comptu�ies Uiis_day of APRTT. ,:C_�
����r�
lamcs A.Carpcnter,Vice PresiJrnl&AsSislant Secretap'oCSVashinston Inl,malional Insur,e�ce Companp&
NonhAmericanSpecialtyInsuranceCompany �-
l;ompany Yrottle Page 1 of 2
�� �• j
���,�' `,. �� � �,�,a�a
COMPANY PROFILE
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Company tVQRTH AMERICAN SPECIALTY IIVSURANC�COMPANY
Information 650�R.M STREET, fiTH�LOOR
Old Company MANCHESTER, NH 03101-2524
Names . .., ....... „..._..... . _
Agent for Service
Old Company Names EfEective DaYe
Reference
Information
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Company �9ent For Service
Performance& �ERE KEPRIOS
Camparison Data C/O CT CORPORATION SYSTEM
Financial Statements 818 WCST SEVENTH STREET,2ND FLOOR
PDF'S LOS ANGELES CA 90017
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CA Supplements Reference information �
�ompany Complaint � ,
Company NAIC�: � 29874
Enforcement Action California Company ID#: � 3208-6
Composite
Complaints Studies Date Authorized In California: 06/30J1989
Additional Info
Find A Company License Sta[us: UNIIMITED-MORMAL
Representative Tn Company Type: Property&Casualty
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The company is authorizeH to transact business within these lines of insurance.
For an explanation of any of these terms, please refer to the glossary.
AIRCRAFT
AUTOMOBIL[
B�ILER AND MACHINERY
BURGLARY
DISABIl.T7Y
FSRE
LIABILIFY
MAR[NE
http://interactive.web.insurance.ca.gov/companyprofile/companyprofile?even�companyPro... 8/6/2008'�
Company Profile Page 2 of 2
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SPRINKLER
SURETY
WOftKERS'COMPENSATIQN
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c 2008 California Department of Insurance
Y
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' �., : ..
International Department
COMERICA BANIC
'rELEX NO: 3772134 MNB INTI, DEP INTERNATIONAL TRADE SERVICES
FAX N0: 310-297-2886. . 2321 ROSECRANS AVE.,:' 5TH FLOOR
SWIFT: MNBDUS6S. LAX. . EL' SEGUNDO, GA 90245 .
BEIV�FICIARY:
CITY OR PALM DESERT. `
' ATTN:: CHRISTTNA.CANALES
; DEP�'::.OF .PUBLIC WORKS
` 73-510 FRED WARING DRIVE
PALM DESERT, CA::.:92260 :
DATE OF:ISSUE: .00TOBER 2, 2009
WE;HEREBY .OPEl�F .OUR IRREVOCABX.�E 'STANDBY LETTER':OF CREDI'�P.NO. 642798-40 IN YOUR
_
FAVOR, FOR'ACCOUNT OF;THE COLONNAT}E ON,:EL PASEO, LP;: 210 E. OLYMPIC BLVD. ,
,..... , :
SUI'�E 202,;'LOS ANGELES; CA 90415, ';,FOR A SUM NOT EXCEEDTNG USD14:�824.0.0(FOURTEEN
' THOUSAND, :EIGHT FNNDRED ANDiTWEIJTY FpUR:`U.S. DOLT�ARS) AVAILABLE':BY YOUR DRAFT `.
_... _ .
{S) ;AT SIGHT ON COMERICA BANK, (IN TT3E;FORM ATTRCHED HERETO AS ANNEX A) WFiEN
' ACCOMFANIED BY: ::.
1. THE ORIGINAL OF THIS STANDBY LETTER OF CREDTT`AND.AMENDMENT ;($) IFrANY. '
SPECIAL COAIAITIONS:
' ALL..`INFORMATION:REQUIRED;WHETHER INDICATED BY'BLANK5, BRACICETS OR OTHERWTSE;
MUST`SE. COMPLETED-AT THE TIME OF DRAWTNG.
ALli SZGNATUR£S`MUST BE; MANIIA'L,LY EXECUTED IN ORIGINALS
PARTTAL DRAWINGS ARE I30T ALLOWED.
ALL:DRAFT3:.REQUIRED 'UND�R THIS STANDBY L�TTER':QF.CREDIT MUST BE"MARRED: "DRAWN, '-
UNDER .COMERICA BANK STANDBY'LETTER' OF CREDI.T:NO. 642798-.40'.' .
7 ALL DOCUMEIVTS ARE TO BE DISPATCHED IN ONE L,OT',BY :COURIER SERVICE TO COMERICA
BANK' INTERNATIONAL TRA17E SERVICES,:- 2321 ROSECRANS AVE„ 5TH FL.� EL SEGUNDO; CA
' 9024'S, AT.TN: STANDBY LETTER .OF CREbIT DEPT, TF,}1M 40_
WE HEREBY ENGAGE` WITH'YOU.TSiAT ALL DRAFT (S) DRAWN UNDER AND IN COMPLIANCE WTTH
,,.
THE TERMS OF. THTS STANABX LETTER .OF CREDIT WILL BE'.DULY HONORED:'IF.DRAWN RND `
PRESEI�T�D'F'OR PAXMENT AT OUR OFFICE LOCATED AT COMERICA BANK INTERNATIONAL i
TRADE SERVICES, 2321..ROSECFI�N'S AVE. , 5.TH FL_, '.EL SEGUNDO, ';CA 90245, ATTTF:
_.
ST.ANABY.LETTER OF CREDIT DEPT, TEAM 40 ON QR BEFORE.`THE EXPIRA.2'IOiV.DATE OF TFiIS
CREDTT, .`AUGUST 31, 2010. ` `` '
EXCEPT SO..�'AR AS' OTHERWISE EXPT2'ESSLY STATED HEREIN, THIS STANDBY LETTER OF `
_. _.
CREDIT.IS. SUBJECT TO THE INTERNATIONAL CFIAMBER OF COMMERCE .(PUBLIC.ATION NO. '
590) (1998`VERSION AND ANY SUBSEQUENT REVISTONS) .
VER'Y;TT2U
�. � ' NE�L.RALPH :
"` - V.P.;1NT'LTRADE SERVICES
OMERI sarrx AilTHOR1ZED SEGNATURE
, , . �.
Intemational�epartment
ANNEX A
: STGHT DRAFT
DATE: . . : . REF;NO. .
AT STGHT
PAY TO THE ORDER OF' US$;:
US DOLLARS
` "DRAWN UNDER`COMERTCA BANK;IRREVOCABLE STANDBY LETTER OF CREDTT
NUMBER NO. DATED. . :`: _,20Q8"
TO: COMERICA BANK
2321 ROSECRANS AVE:,STH FL ;.(INSERT NAME Q�BENEFICIAR�
` EL SEGUNDO,CA 90245
'AUTHORIZED SIGNATURE �:
GUIDELINES TO`:PREPARE THE SIGHT DRAFTc
1. DATE:.TSSUANCE DATE OF:DRAFT:
2. REF.NO.:;YOUR':REFERENCE NUIVIBER,:IF ANY:'
' 3. PAY TO,THE ORDER OF: BENEFICIARY'S NAME ` >'
4. US�: AMOUNT OF DRAWING 1N FIGURES:
' S. US DOLLA.RS:AMOLTNT OF DRAWING IN WORDS.
' 6. LETTER OF CREDIT NUMBER:OUR STANDBY`L/C NUMBER THAT
PERTAINS TO THE DRAWING.
' 7, DATED:I5SUANCE DATE OF OUR STANDBY L/C.
NOTE: BENEFICIARY'S NA1V1E SHOULD BE PRINTED AT:THE BACK OF THE
SIGHT Dl�'I'WITH ENDORSEMENT.
l
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