HomeMy WebLinkAboutRelease Security Tract 35426 Starwood Vacation OwnershpCITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: RELEASE SECURITY FOR WESTIN DESERT WILLOW (TRACT
35426)
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
APPLICANT: Brett Cimorelli
Starwood Vacation Ownership
9002 San Marcos Court
Orlando, FL 32819
DATE: May 12, 2011
CONTENTS: Agreement
Vicinity Map
Recommendation
By Minute Motion, release security for Westin Desert Willow (Tract
35426).
Background
The subject property is located within Desert Willow Golf Resort and adjoins the east
side of Portola Avenue. A cash deposit in the total amount of $252,797 was submitted
at the time of permit issuance for various public improvements.
All off -site improvements are complete. The faithful performance and labor and
materials bonds were held for one-year in lieu of a maintenance bond submittal. The
one-year maintenance period is now complete and staff recommends that the City
Council authorize the release of the faithful performance and labor and materials
deposits.
Staff Report
Release Security for Westin Desert Willow (Tract 35426)
May 12, 2011
Page 2 of 2
Fiscal Analysis
There is no fiscal impact associated with this action.
Prepared By:
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Christina Canales, Assistant Engineer
6 �
Paul S. Gibson, Director of Finance
M. Wohlmuth, City Manager
CITY COUNCELACTION
APPROVED..��_r____ � DFNiF.D
RECEIVED OTHER,
MEETING DATE
AYES: f
NOES:1LCAC
ABSENT: IV%Y) P
ABSTAIN:
VERIFIED BY: 5
777
Original on File with City Clerks Office
Departme
Mark Greenwfod, P.E.,
Director of Public Works
SUBDIVISION IMPROVEMENT AGREEMENT
DATE OF AGREEMENT: November 13, 2007.
NAME OF SUBDIVIDER: WVC Rancho Mirage. Inc. a Delaware corporation
(referred to as "SUBDIVIDER").
NAME OF SUBDIVISION: Desert Willow Resort Condominium No. of Lots: _
(referred to as "SUBDIVISION").
TENTATIVE MAP RESOLUTION OF APPROVAL NO.: 2435 (TM No: 35426 )
(referred to as 'Resolution of Approval')
IMPROVEMENT PLANS APPROVED ON: Pending
(referred to as "Improvement Plans").
ESTIMATED TOTAL COST OF IMPROVEMENTS: $385,375.00
ESTIMATED TOTAL COST OF MONUMENTATION: $5000.00
SURETY:
BOND NOS: NA— Payment by Check (see below)
SURETY: $297,337
-OR-
IRREVOCABLE STAND-BY LETTER OF CREDIT NO.NA-Payment by Check (see below)
FINANCIAL INSTITUTION:
-OR-
CASH/CERTIFICATE OF DEPOSIT, AGREEMENT DATED: November 07.07
FINANCIAL INSTITUTION: Wachovia
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
10,114,111111 1597
Map Act of the State of California and the CITY's ordinances and regulations relating to the
filing, approval and recordation of subdivision maps. The Subdivision Map Act and the
CITY's ordinances and regulations relating to the filing, approval and recordation of
subdivision maps are collectively referred to in this Agreement as the "Subdivision Laws".
B. A tentative map of the SUBDIVISION has been approved, subject to the
Subdivision Laws and to the requirements and conditions contained in the Resolution of
Approval. The Resolution of Approval is on file in the Office of the City Clerk and is
incorporated into this Agreement by reference.
C. The Subdivision Laws establish as a condition precedent to the approval of a
final map that SUBDIVIDER must have complied with the Resolution of Approval and must
have either (a) completed, in compliance with CITY standards, all of the improvements and
land development work required by the Subdivision Laws or the Resolution of Approval or
(b) have entered into a secured agreement with CITY to complete the improvements and
land development within a period of time specified by CITY.
D. In consideration of the approval of a final map for the SUBDIVISION by the
City Council, SUBDIVIDER desires to enter into this Agreement, whereby SUBDIVIDER
promises to install and complete, at SUBDIVIDER's own expense, all the public
improvement work required by CITY in connection with the proposed SUBDIVISION.
SUBDIVIDER has secured this Agreement by improvement security required by the
Subdivision Laws and approved by the City Attorney.
E. Complete Improvement Plans for the construction, installation, and
completion of the improvements have been prepared by SUBDIVIDER and approved by
the City Engineer. The Improvement Plans numbered as referenced previously in this
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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.
N. All public improvement monuments, street signs, and stakes as specified on
the final map are to be completed prior to final formal acceptance by the City Council.
Individual property monuments must be installed within one year from the formal final
Council acceptance of said SUBDIVISION.
I. SUBDIVIDER recognizes that by approval of the final map for SUBDIVISION,
CITY has conferred substantial rights upon SUBDIVIDER, including the right to sell, lease,
or finance lots within the SUBDIVISION. As a result, CITY will be damaged to the extent of
the cost of installation of the improvements by SUBDIVIDER's failure to perform its
obligations to commence construction of the improvements by the time established in this
Agreement. CITY shall be entitled to all remedies available to it pursuant to this
Agreement and law in the event of a default by SUBDIVIDER. It is specifically recognized
that the determination of whether a reversion to acreage or rescission of the SUBDIVISION
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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 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.
K\I PI 13U.II 4"1,
(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 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.
M111 IS DR Bi",
(3) Securi . SUBDIVIDER shall at all times guarantee SUBDIVIDER's
performance by furnishing to CITY, and maintaining, good and sufficient security as
required by the Subdivision Laws on forms approved by CITY for the purposes and in the
amounts as follows:
(a) to assure faithful performance of this Agreement in regard to said
improvements in an amount of 100% of the estimated cost of the improvements; and
(b) to secure payment to any contractor, subcontractor, persons renting
equipment, or furnishing labor and materials for the improvements required to be
constructed and installed pursuant to this Agreement in the additional amount of 50% of
the estimated cost of the improvements; and
(c) to guarantee or warranty the work done pursuant to this Agreement for
a period of one year following acceptance thereof by CITY against any defective work or
labor done or defective materials furnished in the additional amount of 10% of the
estimated cost of the improvements; and
(d) SUBDIVIDER shall also furnish to CITY good and sufficient security in
the amount of one hundred percent (100%) of the estimated cost of setting SUBDIVISION
monuments as stated previously in this Agreement in Section (1)(f) for a period of one year
plus thirty (30) days from formal acceptance by the City Council.
The securities required by this Agreement shall be kept on file with the City Clerk.
The terms of the security documents referenced on page 1 of this Agreement are
incorporated into this Agreement by this reference. If any security is replaced by another
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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 for faithful performance as required by
Section (3) of this Agreement for one hundred percent (100%) of the total estimated cost of
the improvements as changed, altered, or amended, minus any completed partial releases
allowed by Section (6) of this Agreement.
(b) The SUBDIVIDER shall construct the improvements in accordance
with CITY standards in effect at the time of adoption of the Resolution of Approval. CITY
reserves the right to modify the standards applicable to the SUBDIVISION and this
Agreement, when necessary to protect the public safety or welfare or comply with
applicable state or federal law or CITY zoning ordinances. If SUBDIVIDER requests and is
granted an extension of time for completion of the improvements, CITY may apply the
standards in effect at the time of the extension.
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(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
sinms sun i;,'
faithful performance of the improvement work and that the security shall not be reduced to
an amount less than fifty percent (50%) of the total improvement security given for faithful
performance until final completion and acceptance of the improvement work. In no event
shall the City Engineer authorize a release of the improvement security which would reduce
such security to an amount below that required to guarantee the completion of the
improvement work and any other obligation imposed by this Agreement.
(c) Security given to secure payment to the contractor, his or her
subcontractors and to persons furnishing labor, materials or equipment shall, at six (6)
months after completion and acceptance of the work, be reduced to an amount equal to no
less than 125% of the total claimed by all claimants for whom liens have been filed and of
which notice has been given to the CITY, plus an amount reasonably determined by the
City Engineerto be required to assure the performance of any other obligations secured by
the Security. The balance of the security shall be released upon the settlement of all claims
and obligations for which the security was given.
(d) No security given for the guarantee or warranty of work shall be
released until the expiration of the warranty period and until any claims filed during the
warranty period have been settled. As provided in Section (10), the warranty period shall
not commence until formal final acceptance of all the work and improvements by the City
Council.
(e) CITY may retain from any security released, an amount sufficient to
cover costs and reasonable expenses and fees, including reasonable attorneys' fees.
(7) Iniury to Public Improvements, Public Property or Public Utilities Facilities.
SUBDIVIDER shall replace or repair or have replaced or repaired, as the case may be, all
public improvements, public utilities facilities and surveying or subdivision monuments
which are destroyed or damaged as a result of any work under this Agreement.
SUBDIVIDER shall bear the entire cost of replacement or repairs of any and all public or
public utility property damaged or destroyed by reason of any work done under this
Agreement, whether such property is owned by the United States or any agency thereof, or
the State of California, or any agency or political subdivision thereof, or by CITY or any
public or private utility corporation or by any combination of such owners. Any repair or
replacement shall be to the satisfaction, and subject to the approval, of the City Engineer.
(8) Permits. SUBDIVIDER shall, at SUBDIVIDER's expense, obtain all
necessary permits and licenses for the construction and installation of the improvements,
give all necessary notices and pay all fees and taxes required by law.
(9) Default of SUBDIVIDER.
(a) Default of SUBDIVIDER shall include, but not be limited to,
Agreement;
improvements;
improvements;
(1) SUBDIVIDER's failure to timely commence construction of this
(2) SUBDIVIDER's failure to timely complete construction of the
(3) SUBDIVIDER's failure to timely cure any defect in the
(4) SUBDIVIDER's failure to perform substantial construction 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;
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(6) the commencement of a foreclosure action against the
SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of
foreclosure; or
(7) SUBDIVIDER's failure to perform any other obligation under this
Agreement.
(b) CITY reserves to itself all remedies available to it at law or in equity for
breach of SUBDIVIDER's obligations under this Agreement. CITY shall have the right,
subject to this Section, to draw upon or utilize the appropriate security to mitigate CITY's
damages in event of default by SUBDIVIDER. The right of CITY to draw upon or utilize the
security is additional to and not in lieu of any other remedy available to CITY. It is
specifically recognized that the estimated costs and security amounts may not reflect the
actual cost of construction or installation of the improvements and, therefore, CITY's
damages for SUBDIVIDER's default shall be measured by the cost of completing the
required improvements. The sums provided by the improvement security may be used by
CITY for the completion of the public improvements in accordance with the improvement
plans and specifications contained herein.
In the event of SUBDIVIDER's default under this Agreement, SUBDIVIDER
authorizes CITY to perform such obligation twenty (20) days after mailing written notice of
default to SUBDIVIDER and to SUBDIVIDER's surety, and agrees to pay the entire cost of
such performance by CITY.
CITY may take over the work and prosecute the same to completion, by contract or
by any other method CITY may deem advisable, for the account and at the expense of
SUBDIVIDER, and SUBDIVIDER's surety shall be liable to CITY for any excess cost or
damages occasioned CITY thereby. In such event, CITY, without liability for so doing, may
icr.m,
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 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
HNIPl IMA 119
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.
01) SUBDIVIDER Not Agent of CITY. Neither SUBDIVIDER nor any of
SUBDIVIDER's agents, contractors or subcontractors are or shall be considered to be
agents of CITY in connection with the performance of SUBDIVIDER'S obligations under
this Agreement.
(12) Iniury to Work. Until such time as the improvements are accepted by CITY,
SUBDIVIDER shall be responsible for and bear the risk of loss to any of the improvements
constructed or installed. Until such time as all improvements required by this Agreement
are fully completed and accepted by CITY, SUBDIVIDER will be responsible for the care,
maintenance of, and any damage to such improvements. CITY shall not, nor shall any
officer or employee thereof, be liable or responsible for any accident, loss or damage,
regardless of cause, happening or occurring to the work or improvements specified in this
Agreement prior to the completion and acceptance of the work or improvements. All such
risks shall be the responsibility of and are hereby assumed by SUBDIVIDER.
(13) Environmental Warranty. Prior to the acceptance of any dedications or
improvements by CITY, SUBDIVIDER shall certify and warrant that neither the property to
be dedicated nor SUBDIVIDER is in violation of any environmental law and neither the
itnmiitun l;.„
property to be dedicated nor the SUBDIVIDER is subject to any existing, pending or
threatened investigation by any federal, state or local governmental authority under or in
connection with environmental law. Neither SUBDIVIDER nor any third party will use,
generate, manufacture, produce, or release, on, under, or about the property to be
dedicated, any hazardous substance except in compliance with all applicable
environmental laws. SUBDIVIDER has not caused or permitted the release of, and has no
knowledge of the release or presence of, any hazardous substance on the property to be
dedicated or the migration of any hazardous substance from or to any other property
adjacent to, or in the vicinity of, the property to be dedicated. SUBDIVIDER's prior and
present use of the property to be dedicated has not resulted in the release of any
hazardous substance on the property to be dedicated. SUBDIVIDER shall give prompt
written notice to CITY at the address set forth herein of:
(a) Any proceeding or investigation by any federal, state or local
governmental authority with respect to the presence of any hazardous substance on the
property to be dedicated or the migration thereof from or to any other property adjacent to,
or in the vicinity of, the property to be dedicated;
(b) Any claims made or threatened by any third party against CITY or the
property to be dedicated relating to any loss or injury resulting from any hazardous
substance; and,
(c) SUBDIVIDER's discovery of any occurrence or condition on any
property adjoining in the vicinity of the property to be dedicated that could cause the
property to be dedicated or any part thereof to be subject to any restrictions on its
ownership, occupancy, use for the purpose for which is it is intended, transferability or suit
under any environmental law.
(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) SUB DIVIDER'S Obligation to Wam Public During Construction. Until formal
final acceptance of the improvements, SUBDIVIDER shall give good and adequate warning
to the public of each and every dangerous condition existent in said improvements, and will
take all reasonable actions to protect the public from such dangerous condition.
(16) Vesting of Ownership. Upon formal final acceptance of the work by CITY and
recordation of the Resolution of Acceptance of Public Improvements, ownership of the
improvements constructed pursuant to this Agreement shall vest in CITY.
(17) Final Acceptance of Work. Acceptance of the work on behalf of CITY shall
be made by the City Council upon recommendation of the City Engineer after final
completion and inspection of all improvements. The City Council shall act upon the
Engineer's recommendation within sixty (60) days from the date the City Engineer certifies
that the work has been finally completed, as provided in Section (6). Such acceptance
shall not constitute a waiver of defects by CITY.
(18) Indemnity/Hold Harmless. CITY or any officer or employee thereof shall not
be liable for any injury to persons or property occasioned by reason of the acts or
omissions of SUBDIVIDER, its agents, or employees, contractors and subcontractors in the
performance of this Agreement. SUBDIVIDER further agrees to protect, defend, indemnify
and hold harmless CITY, its officials, boards and commissions, and members thereof,
itmriisun i;,
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 overwritten objection by
SUBDIVIDER submitted to the City Engineer before approval of the particular improvement
design, which objection indicated that the particular improvement design was dangerous or
defective and suggested an alternative safe and feasible design.
After acceptance of the improvements, the SUBDIVIDER shall remain
obligated to eliminate any defect in design or dangerous condition caused by the design or
construction defect; however, SUBDIVIDER shall not be responsible for routine
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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.
SUBDIVIDER shall reimburse CITY for all costs and expenses (including but not
limited to fees and charges of architects, engineers, attorneys, and other professionals,
and court costs) incurred by CITY in enforcing the provisions of this Section.
(19) Personal Nature of SUBDIVIDER'S Obligations. All of SUBDIVIDER's
obligations under this agreement are and shall remain the personal obligations of
SUBDIVIDER notwithstanding a transfer of all or any part of the property within the
SUBDIVISION subject to this Agreement, and SUBDIVIDER shall not be entitled to assign
its obligations under this Agreement to any transferee of all or any part of the property
within the SUBDIVISION or to any other third party without the express written consent of
CITY.
(20) Sale or Disposition of SUBDIVISION. Seiler 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.
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(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.
KVII"sit I11I<i'
(24) Notices. All notices required or provided for under this Agreement shall be in
writing and delivered in person or sent by mail, postage prepaid and addressed as
provided in this Section. Notice shall be effective on the date it is delivered in person, or, if
mailed, on the date of deposit in the United States mail. Notices shall be addressed as
follows unless a written change of address is filed with the City:
Notice to CITY: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, California 92260
Attn: Public Works Director
Notice to SUBDIVIDER: Starwood Vacation Ownership - Design and Construction
ATTN: Michael Williams
8801 Vistana Centre Drive
Suite 120
Orlando, FI 32821
Notice to SURETY:
(25) Compliance With Laws. SUBDIVIDER, its agents, employees, contractors
and subcontractors shall comply with all federal, state and local laws in the performance of
the improvements and land development work required by this Agreement.
(26) Severability. The provisions of this Agreement are severable. If any portion
of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the
agreement shall remain in full force and effect unless amended or modified by the mutual
consent of the parties.
(27) Captions. The captions of this Agreement are for convenience and reference
only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation,
construction or meaning of any provisions of this Agreement.
(28) Litigation or Arbitration. In the event that suit or arbitration is brought to
enforce the terms of this Agreement, the prevailing party shall be entitled to litigation costs
and reasonable attomeys' fees.
(29) Incorporation of Recitals. The recitals to this Agreement are hereby
incorporated into in the terms of this Agreement.
(30) Entire Agreement. This Agreement constitutes the entire agreement of the
parties with respect to the subject matter. All modifications, amendments, or waivers of the
terms of this Agreement must be in writing and signed by the appropriate representatives
of the parties.
(31) Interpretation. This Agreement shall be interpreted in accordance with the
laws of the State of California.
(32) Jurisdiction. Jurisdiction of all disputes over the terms of this Agreement
shall be in the County of Riverside, State of California.
RNIPI III)JI #;07
IN WITNESS WHEREOF, this Agreement is executed by the parties as of the date
hereinabove first written; by CITY, by and through its Mayor.
WVC Rancho Mirage, Inc., CITY OF PALM DESERT
a Delaware corporation
Y' By:
Serg' D. Ri era MAYOR
President
(Proper Notarization of
SUBDIVIDER's signature is
required and shall be attached)
ATTEST:
CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY
STATE OF C->i4fiFt� ) �L1Dla}
COUNTY OF l NEftlflEss
) 259-4t'j4v
On IVQVCM6- 13, 200 , before me, a Notary Public in and for said State,
personally appeared cyrr io D. �IVLYrsonally known to me
the h cic off evince) 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.
WITNESS my hand and official seal. LrnN i. srucwns
No#cry Public state of P�orido
*C0M*sbn 6q*w Nov 8, 2008
Commlasion DD 370297
Bonded By Nallonot NolaryAssn
/3 , D 7NOTARY PUBLIC
4
$�,blD .370Z97
NMPUH VCD 760
STATE OF CALIFORNIA )
ss
COUNTY OF RIVERSIDE )
On , 20_, before me, a Notary Public in and for said State,
personally appeared , personally known to me (or 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.
WITNESS my hand and official seal.
NOTARY PUBLIC
n'pX
d �n '
Legend
-- Circulation Network
City Boundary
Streets
❑ Parcels (4/2011)
1: 2,700 O
Notes