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HomeMy WebLinkAboutRelease Security and Accept New Agmt and Security T32498 Harrison Road VenturesCITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: RELEASE SECURITY FOR TRACT 32498 AND ACCEPT NEW SECURITY AND AGREEMENT SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works APPLICANTS: Insurance Company of the West Attention David L. Styers 11455 El Camino Real San Diego, CA 92130 Harrison Road Ventures, LLC 77682 Country Club Drive, Suite A3 Palm Desert, CA 92260 SureTec Insurance Co. c/o Pinnacle Surety & Insurance Services 151 Kalmus Drive, Suite A201 Costa Mesa, CA 92626 BOND NUMBERS: 2172847 Insurance Company of the West DATE: 4385558 SureTec Insurance Co. August 23, 2012 CONTENTS: Agreement and Bonds - Released Agreement and Bonds - Replacement Vicinity Map Recommendation By Minute Motion, release security for tract 32498 and accept new security and agreement. Background The subject property is located at Shepherd Lane and University Pointe Court. At the time of map recordation in 2005 bonds were submitted in the total amount of Staff Report Release Security for Tract 32498 and Accept New Security August 23, 2012 Page 2 of 2 $447,766.50 for grading and public improvements. The owner of this tract subsequently filed for bankruptcy and did not complete the tract's improvements. Harrison Road Ventures, LLC is the new owner of tract 32498. Because city and state codes have changed in the last seven years, the design of the tract has changed slightly and the bond amount has increased. Harrison Road Ventures, LLC would like Council to release the old bonds and accept their new agreement and new bonds in the total amount of $517,758.00 for grading and public improvements. This will bring the bond amount to current values. Staff recommends that City Council authorize the release of the faithful performance and labor and materials bonds from the previous owner and accept the new bonds and agreement at this time. Fiscal Analysis There is no fiscal impact associated with this action. Prepared By: NOS YVA oan-a.stl--3 Christina Canales, Assistant Engineer Depaitineht dead: Mark Gr e vkod, P" , Director bf Public Work, CITY COUNCIL AC ON Paul S. Gibson, Director of Finance APPROVED DENIED RECEIVED OTHER MEETING DATE Approval: AYES: NOES: DIU- ABSENT: � ABSTAIN: tJ J h M. Wo muth, City Manager VERIFIED By KDIL I� Original on File with City Clerk's Office I M 0 _ zo 73-510 PREO WARING DRIvc PALM DEscu, CALIFORNIA 92260-2578 TEL:760 346-o6n FAX: 760 340-0574 info@palm-deserr.org January 30, 2006 Mr. James E. Thompson Urban Habitat 2 Crooked Stick Drive Newport Beach, California 92660 Dear Mr. Thompson: Subject: Tract Map No. 32498 - Subdivision Improvement Agreement At its regular meeting of January 12, 2006, the Palm Desert City Council adopted Resolution No. 06-2, approving the Subdivision Improvement Agreement for Tract Map No. 32498 and authorizing the Mayor to execute same. Enclosed for your records is a fully executed copy of the subject agreement. If you have any questions or require any additional information, please do not hesitate to contact us. Sincerely, RACHELLE D. KLASSEN, CIVIC CITY CLERK RDK:mgm Enclosure�(as noted) cc: ,,ublic Works Department n �--i r-n za w n rn rr"n � fTl Z~ r-n . 00MUM+w M SUBDIVISION IMPROVEMENT AGREEMENT DATE OF AGREEMENT: 12- i - .20 NAME OF SUBDIVIDER: �ACw� ^TAg ow5, L, p (referred to as "SUBDIVIDER"). NAME OF SUBDIVISION: 01AW ey51tH ?tit J-e- No. of Lots: 1 (referred to as "SUBDIVISION'). TENTATIVE MAP RESOLUTION OF APPROVAL NO.: Z 3 2-, (TM No.121Q$) (referred to as "Resolution of Approval") IMPROVEMENT PLANS APPROVED ON:_.. (referred to as "Improvement Plans"). ` a ESTIMATED TOTAL COST OF IMPROVEMENTS:$ ' ''" CM-10 ESTIMATED TOTAL COST OF MONUMENTATION: 4 `3�D04 "=' SURETY: BOND SUREI oS I ry ^.r> . f ..., IRREVOCABLE STAND-BY LETTER OF CREDIT NO. FINANCIAL INSTITUTION: -OR- CASH/CERTIFICATE OF DEPOSIT, AGREEMENT DATED: FINANCIAL INSTITUTION: This Agreement is made and entered into by and between the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as "CITY", and the SUBDIVIDER. RECITALS A. SUBDIVIDER has presented to CITY for approval and recordation, a final subdivision map of a proposed SUBDIVISION pursuant to provisions of the Subdivision Map Act of the State of California and the CITY's ordinances and regulations relating to the filing, approval and recordation of subdivision maps. The Subdivision Map Act and the CITY's ordinances and regulations relating to the filing, approval and recordation of subdivision maps are collectively referred to in this Agreement as the "Subdivision Laws". B. A tentative map of the SUBDIVISION has been approved, subject to the Subdivision Laws and to the requirements and conditions contained in the Resolution of Approval. The Resolution of Approval is on file in the Office of the City Clerk and is incorporated into this Agreement by reference. C. The Subdivision Laws establish as a condition precedent to the approval of a final map that SUBDIVIDER must have complied with the Resolution of Approval and must have either (a} completed, in compliancewith 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 consideratiort 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 securest this Agreement by improvement security required by the Subdivision Laws and approved by the, City Attorney. 6 RWUMJMI"7 E. Complete Improvement Plans for the construction, installation, and completion of the improvements .have been prepared by SUBDIVIDER and approved by the City Engineer. The Improvement Plans numbered as referenced previously in this Agreement are on file in the Office of the City Engineer and are incorporated into this Agreement by this reference. All references in this Agreement to the Improvement Plans shall include reference to any specifications for the improvements as approved by the City Engineer. F. An estimate of the cost for construction of the public improvements and performing land development work in connection with the improvements according to the Improvement Plans has been made and has been approved by the City Engineer. The estimated amount is stated on Page 4 of this Agreement. The basis for the estimate is attached as Exhibit "A" to this Agreement. C. 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. M. 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 4 RMQ UMEU397 3 _ 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 acreageor rescission of the SUBDIVISION constitutes an adequate remedy for default by the SUBDIVIDER shall be within the sole discretion of CITY. NOW, THEREFORE, in consideration of the approval and recordation by the City Council of the final map of the SUBDIVISION, SUBDIVIDER and CITY agree as follows: (1) SUBDIVIDER's Obligation to Construct Improvements. SUBDIVIDER shall: d� (a) Comply with all the requirements of the Resolution of Approval, and any amendments thereto, and with the provisions of the Subdivision Laws. 1't (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 4 EMUB{A IS97 -4- any public or private sanitary sewer, domestic water, drainage, and/or utility easements or authorization to accommodate the SUBDIVISION. (e) Commence construction of the improvements by the time established in Section (22) of this Agreement and complete the improvements by the deadline stated in Section (1)(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 tothe State Eminent Domain Law of an order of possession. SUBDIVIDER shall comply in all respects with the order of possession. e RMeu6{DM1597 -5- Nothing in this Section (2) shall be construed as authorizing or granting an extension of time to SUBDIVIDER. (3) Security. SUBDIVIDER shall at all times guarantee SUBDIVIDER's performance by furnishing to CITY, and maintaining, good and sufficient security as required by the Subdivision Laws on forms approved by CITY for the purposes and in the amounts as follows: (a) to assure faithful performance of this Agreement in regard to said improvements in an amount of 100% of the estimated cost of the improvements; and (b-� to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor and materials for the improvements required to be constructed- and installed pursuant to this Agreement in the additional amount of 50°16 of the estimated cost of the improvements; and (c) to guarantee or warranty the work done pursuant tothis 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 toCITY 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 RWU81 MtS97 -6- approved security, the replacement shall: 4) 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 fling 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 (90%) 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 701/6 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 (1000/a} of thetotal 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. it&RVMM15W -7 - (5) lnspecti_o_. SUBDIVIDER shall at all times maintain proper facilities and safe access for inspection of the public improvements by CITY inspectors and to the shops wherein any work is in preparation. Upon completion of the work, SUBDIVIDER may request a final inspection by the City Engineer, or the City Engineer's authorized representative. If the City Engineer, or the designated representative, determines that the work has been completed in accordance with this Agreement, then the City Engineer shall certify the completion of the public improvements to the City Council. No improvements shall be finally accepted by the City Council unless all aspects of the work have been inspected and completed in accordance with the Improvement Plans. When applicable law requires an inspection to be made by City at a particular stage of the work of constructing and installing such improvements, CITY shall be given timely notice of SUBDIVIDER's readiness for such inspection and SUBDIVIDER shall not proceed with additional work until the inspection has been made and the work approved. SUBDIVIDER shall bear all costs of inspection and certification. No improvements shall be deemed completed until accepted by the City Council pursuant to Section (17) herein. (6) Release of Securities. The securities required by this Agreement shall be released as following: (a) Security given for faithful performance of any act, obligation, work or agreement shall be released upon the final completion and acceptance of the act or work, subject to the provisions of subsection (b) hereof. (b) The City Engineer may release a portion of the security given for faithful performance of improvement work as the improvement progresses upon application thereof by the SUBDIVIDER; provided, however, that no such release shall be for an amount less than twenty-five percent (25%) of the total improvement security given for faithful performance of the improvement work and that the security shall not be reduced to an amount less than fifty percent (50%) of the 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 toan amount equal tono less than 125% of the total claimed by all claimants for whom liens have been filed and of which notice has been- given to the CITY, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the Security. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given. (d) No security given for the guarantee or warranty of work shall be released until the expiration of the warranty period and until any claims filed during the warranty period have been settled. As provided in Section (10), the warranty period shall not commence until formal final acceptance of all the work and improvements by the City Council. (e) CITY may retain from any security released, an amount sufficient to cover costs and reasonable expenses and. fees, including reasonable attorneys' fees. (7) Iniury to Public Improvements, Public 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 L RWLT=MtM -9- which- are destroyed or damaged as a result of any work under this Agreement. SUBDIVIDER shall bear the entire cost of replacement or repairs of any and all public or public utility property damaged or destroyed by reason of any work done under this Agreement, whether such property is owned bythe United States orany agencythereof, 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) SUBMIDER'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; 4 neUMMIM (B) the commencement of a foreclosure action against the SUBDIVISION or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure, or Agreement_ (7) SUBDIVIDER's failure to perform any other obligation under this (b) CITY reserves to itself all remedies available to it at law or in equityfor 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 liabilityfor so doing, may U RbOUM J597 -11- take possession of, and utilize in completing the work, such materials, appliances, plants and other property belonging to SUBDIVIDER as may be on the site of the work and necessary for performance of the work. (c) Failure of SUBDIVIDER to comply with the terms of this Agreement shall constitute consent to the filing by CITY of notice of violation against all the lots in the SUBDIVISION, or to rescind the approval or otherwise revert the SUBDIVISION to acreage. The remedy provided by this subsection (c) is in addition to and not in lieu of other remedies available to CITY. SUBDIVIDER agrees that the choice of remedy or remedies for SUBDIVIDER's breach shall be in the discretion of CITY. r (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, shalt not be construed as a waiver of that default or breach or any subsequent default or breach of SUBDIVIDER. 0-G) 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 4 RNUIMM1597 -12- parts of the work or structure. Should SUBDIVIDER fail to act promptly or in accordance with this requirement, SUBDIVIDER hereby authorizes CITY, at CITY's option, to perform the work twenty (20) days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER's surety, and agrees to pay the cost of such work by CITY. Should CITY determine that an urgency requires repairs or replacements to be made before SUBDIVIDER can be notified, CITY may, in its sole discretion, make the necessary repairs or replacement or perform the necessary work and SUBDIVIDER shall pay to CITY the cost of such repairs. (11) SUBDIVIDER Not Agent of 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 bearthe 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 suctt 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 RWU91DM1597 -13- property to. be dedicated nor the SUBDIVIDER is subject to any existing, pending or threatened investigation by any federal, state or local governmental authority under or in connection with environmental law. Neither SUBDIVIDER nor any third party will use, generate, manufacture, produce, or release, on, under, or about the property to be dedicated, any hazardous substance except in compliance with all applicable environmental laws. SUBDIVIDER has not caused or permitted the release of, and has no knowledge of the release or presence of, any hazardous substance on the property to be dedicated or the migration of any hazardous substance from or to any other property adjacent to, or in the vicinity of, the property to be dedicated. SUBDIVIDER's prior and present use of the property to be dedicated has not resulted in the release of any hazardous substance on the property to be dedicated. SUBDIVIDER shall give prompt written notice to CITY at the address set forth herein of: (a) Any proceeding or investigation by any federal, state or local governmental authority with respect to the presence of any hazardous substance on the property to be dedicated or the migration thereof from or to any other property adjacent to, or in the vicinity of, the property to be dedicated; f b1 Any claims made or threatener} by any third party against C ITY 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. RbMMM1597 -14- (14) Other Agreements. Nothing contained in this Agreement shall preclude CITY from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreements with. other subdividers for the apportionment of costs of water and sewer mains, or other improvements, pursuant to the provisions of the CITY ordinances providing therefore, nor shall anything in this Agreement commit CITY to any such apportionment. (15) SUBDIVIDER'S Obligation to Warn Public During Construction. Until formal final acceptance of the improvements, SUBDIVIDER shall give good and adequate warning tathe public of each and every dangerous condition existent in said improvements, and will J take all reasonable actions to protect the public from such dangerous condition. (16) Vesting of Ownership Upon €ormal 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 (6% 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, 1 nUUMM1597 -� 5- agents and employees from any and all claims, demands, carries 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 shalt not constitute an assumption by CITY of any responsibility for any damage or taking covered by this Section. CITY shall not be responsible for the design or construction of the property to be dedicated or the improvements pursuant to the approved improvement plans or map, regardless of any negligent action or inaction taken by CITY in approving the plans or map, unless the particular improvement design was specifically required by CITY over written objection by SUBDIVIDER submitted to the City Engineer before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design. After acceptance of the improvements, the SUBDIVIDER shall remain obligated to -eliminate any defect in design or dangerous condition caused by the design or construction defect, however, SUBDIVIDER shall not be responsible for routine 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. Seller or other SUBDIVIDER may request a novation of this Agreement and a substitution of security_ Upon approval of the novation and substitution of securities, the SUBDIVIDER may request a release or reduction of the securities required by this Agreement. Nothing in the novation shall relieve the SUBDIVIDER of the obligations under Section (18) for the work or improvement done by SUBDIVIDER. RWVUBCM$97 -17 (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. Asa 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 SUBDNIDER's rights with respect to any change in any zoning or building taw or ordinance. MaIMMIN7 -18- (24) Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date it is delivered in person, or, if mailed, on the date of deposit in the United States mail. Notices shall be addressed as follows unless a written change of address is filed with the City: Notice to CITY: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Public Works Director Notice to SUBDIVIDER: _? Atvvt -eg evk Jova rvt tYS 1 L • (� . Ce2oal%D SMOd Dv & Gv �riu ..Stwt 11nQw.Qse►J P�R'4R-S'33-Q�F� Notice to SURETY: CLI Dan,�, , AO. 5 3 SAO :lam eA far 8, - 5543 Lg-- 35d v1f" (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) Severabiliiy. 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. 4 MOLMORusm —19— (28) Litigation or Arbitration. In the event that suit or arbitration is brought to enforce the terms of this Agreement, the prevailing party shall be entitled to litigation costs and reasonable attorneys' fees. (29) Incorporation of Recitals. The recitals to this Agreement are hereby incorporated into in the terms of this Agreement. (30) Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties. ` (31) Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California. (32) Jurisdiction. Jurisdiction of all disputes over the terms of this Agreement shall be in the County of Riverside, State of California. //l /// 111 6 PMPUB JM597 -20_ IN WITNESS WHEREOF, this Agreement is executed by the parties as of the date hereinabove first wrrtten; by CITY, by and through its Mayor. t.)vb,*j 7t-%�/ye.L-&t frZ,p SUBDIVIDER Pre$ SUBDIVIDER (Proper Notarization of SUBDIVIDER's signature is required and shall be attached) IN ATTEST: APPROVED AS TO FORM: STATE OF CALIFORNIA } ORAAl fir) ss COUNTY OF RWERei$E ) On��Cremll 1Jr , 20®S, before me, a Notary Public in and for said State, personally appearedJw-es 9.. l, 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), orthe entity upon behalf of which the person(s) acted, executed the instrument. WIT ESS my hand and official seal. NOTARY PUBLIC RMPMVCDIM -22- rorrovvAon * 1577507 'a -tary t'ubk Calla ft OMW I CITY OF PALM DESERT STANDARD FORM SUBDIVISION FAITHFUL PERFORMANCE BOND NAME OF SUBDIVISION: UNIVERSITY POINTS / TRACT No. 32498 NAME OF SUBDIVIDER: PALM DESERT PAMERS, LP NAME OF SURETY: INSURANCE C aMPANX OF THE WEST EFFECTIVE DATE: NOVEKBER 301 2005 AMOUNT OF BOND: $296,511.00 BOND NUMBER: 217 28 47 PREMIUM: $4,151.00 KNOW ALL MEN BY THESE PRESENTS: That the person, firm, corporation, entity, or otherwise, named on line 2 above, without regard to gender and number, hereinafter referred to as PRINCIPAL, and the corporation named on Line 3 above, a corporation authorized to do business in the State of California and presently possessed of authority under Title 6 of the United States Code to do business under Sections 6 to 13 thereof, in the aggregate amounts hereof, hereinafter referred to as SURETY, are jointly and severally held and firmly bound unto the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as CITY, in the sum mentioned on Line 5 above, for the faithful performance of that certain SUBDIVISION IMPROVEMENT AGREEMENT between PRINCIPAL and CITY regarding the subdivision named on Line 1 above, as required by the provision of the Subdivision Map Act and CITY ordinances, resolutions, rules, and regulations, for 01 the payment of which sums well and truly to be made, PRINCIPAL and SURETY hereby bind themselves, their heirs, administrators, executors, successors and assigns, jointly and severally, firmly by these presents. The condition of the foregoing obligation is such that if the said PRINCIPAL shall faithfully perform the covenants, conditions, and agreements contained in that certain SUBDIVISION IMPROVEMENT AGREEMENT between PRINCIPAL and CITY regarding the subdivision named on LINE 1 of Page 1 hereof, which said agreement is by this reference incorporated herein, on its part to be kept and performed, in a manner and form therein specified, and shall furnish material in compliance with the specifications and perform all that certain work and improvement in said CITY which is more particularly described in said SUBDIVISION IMPROVEMENT AGREEMENT, then the obligation with respect to the faithful performance is by this reference incorporated herein. The said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the SUBDIVISION IMPROVEMENT AGREEMENT or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the SUBDIVISION IMPROVEMENT AGREEMENT, the work, the specifications or any feature or item of performance thereunder. In the event it becomes necessary for CITY to bring an action to enforce this bond, SURETY shall pay CITY's reasonable attorney's fees and court costs in connection therewith. . 3 IN WITNESS WHEREOF, PRINCIPAL and SURETY have executed this instrument on the date mentioned on Line 4 of Page 1 hereof. PALM DESERT PARTNERS, LP PRINCIPAL NCI PAL SURETY SURETY INSURANCE COMPANY OF THE WEST DANIEL P. DOLE, ATIORNEX--IN-FACT' (Notarial acknowledgement of execution by ALL PRINCIPALS and SURE T Y must be attached.) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT '�`.�iCR�=.r.!LCgcf`z :(`.i:!'.c:4, �t.7t=�`.c:C�:M..c:<Sf:h.,tl>,isd;.'Ae�,i•,^,CzC�•�C'��[5�,"`,•,'.{'.e�s�X`•S`f'r�5d�5�c�(!..c?P.,ist`�s�,�:C.F.�,.c�1�.cl`xtfH.r.C.S�::•C�c`.L'!C55^.�.' State of California ss. County of D .�Ir� On ��s�befare me, ��/___5� I Dole Name and We of 091cer (C9. Jane Doo. Notary Publfc') personally appeared GERMH [a., cornT"w # 1577607 1k.mry Public . C01111 i m 9 W O personally known to me moved 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 slgnature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the Instrument. WITNESS nd and official seal. place Notary Sell Above Slgrwtura of N PWC OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and would prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signers) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Individual ❑ Corporate Officer —Title(s): • Partner —❑ Limited ❑ General ❑ Attorney in Fact Top of ttumrb here ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: u Number of Pages: Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact lop of ttlumb here ❑ Trustee 0 Guardian or Conservator ❑ Other. Signer Is Representing: WIC 02004 Nalanal Notary Assoetalon • 930 De Soto Ave., P.O. Box 2402 • Clralsnedh CA 91313.24M Rem No. 5907 Reorder. Cal Tol•Frae 14=4794tf27 I.C_W- GROUP Insurance Company of The West The Explorer Insurance Company Independence Casualty and Surety Company 11455 El Canino Real, San Diego. CA 92130-2034; P.O. BOX 85363. San Diego. CA 92196-5563 (858) 350-2400 FAX (858) 350-2707 Iran '.Lcwg oup.com Bond Number_ 217 28 47 Terrorism Rusk Rider This rider addresses the requirements of the Terrorism Risk Insurance Act of2002. In accordance with the above Act, we are providing this disclosure notice for all bonds on whicb one or more ofthe above identified companies is a surety. Coverage for ceraf ed acts of terrorism is included in the attached bond and will be partially reimbursed by the United States under a formula established by the. Act. The United States will pay 90% of covered terrorism losses in excess of a statutory established deductible to the insurance company issuing the bond. in no way will the payment for loss on this bond exceed the limit of liability under this bond. This rider does not provide coverage for any loss that would otherwise be excluded by the terms of this bond. The portion of the premium, for this bond, attributable to coverage for certified acts of terrorism under the Act is One Dollar ($I.00) Important Notice: The cost of terrorism coverage is subject to change on any bond that premium is charged annually. No. 0001256 ICW GROUP Power of Attorney Insurance Company of the West Explorer Insurance Company independence Casualty and Surety Company KNOW ALL MEN BY THESE PRESENTS: That Insurance Company of the Wes4 a Corporation duly organized under the laws of the State of Calitbrnia, Explorer Insurance Company, a Corporation duly organized under the laws of the State of California, and Independence Casualty And Surety Company, a Corporation duly organized tinder the laws of the State of Texas, (collectively referred to as the "Companies''), do hereby appoint NICK[ EDWARDS, JOJIN T. DOLE, DANIEL P. DOLE, JAMES F. TEGHTMEYER, ROBERT P. DOLE their true and lawful Atmmey(S)-in-'act with authority to date, execute, sign, seal, and deliver on behalf of the Companies, fidelity and surety bonds, undertakings, and other similar contracts of suretyship. and any related documents. In witness whereof, the Companies have caused these presents to be executed by its duly authorized officers this I st day of November, 2005. suurNrrapl boa oRN �5� ,,r� INSURANCE COMPANY OF THE WEST e d�ntratatFo i a + '* 4 EXPLORE, R INSURANCE COMPANY INDEPENDENCE CASUALTY AND SURETY '�ua,t.nrt+n"�i��Ra��^faro ab� COMPANY Jeffrey D. Sweeney, Assistant Secretary John L. Hannum, Executive Vice President State of Califomla County of5an Diego Ss. On November t, 2005, before me, Francis Fafaul, Notary Public, personally appeared John L. Hannum and Jeffrey D. Sweeney, personally known to me to be the persons whose names are subscribed to the within instrument, and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument, the entity upon behalf of which the persons acted, executed the instrument. mwwm srw.>��Qo RESOLUTIONS Witness my hand and official seal. b, I Francis Fafaul, Notary Public This Power of Attorney Is granted and is signed, sealed and notarized with facsimile signatures and seals under authority of the following resolutions adopted by the respective Boards of Directors of each of the Companies: "RESOLVED: That the President, an Executive or Senior Vice President of the Company, together with the Secretary or any Assistant Secretary, are hereby authorized to execute Powers or Attorney appointing the person(s) named as Attorneys) -in -Fact to date, execute, sign, seal, and deliver on behalf o€ the Company, fidelity and surety bonds, undertakings, and other similar contracts of suretyship, and any related documents. RESOLVED FURTHER: That the signatures of the officers making the appointment, and the signature of any officer certifying the validity and current status of the appointment, may be Facsimile representations of those signatures; and the signature and seal of any notary, and the seal of the Company, may be facsimile representations of those signatures and seals, and such facsimile representations shall have the same force and effect as if manually affixed. The Facsimile representations referred to herein may be affixed by stamping, printing, typing, or photocopying." CERTIFICATE J, the undersigned, Assistant Secretary of Insurance Company of the West, Explorer Insurance Company, mid Independence Casualty and Surety Company, do hereby certify that the foregoing Power of Attorney is in full force and effect, and has not been revoked, and that the above resolutions were duly adopted by the respective Boards of Directors of the Companies, and are now in full force. IN WITNESS WHEREOF, I have set my hand this 'V day of,.,,,_ Jeffrey D. Sweeney, Assistant Secretary To verify the authenticity ofthis Power of Attorney you may call 1-800-877-1111 and ask for the Surety Division. Please refer to the Power ofAttorney Number, the above named individual(s) and details ofthe bond to which the power is attached For information or tiling claims, please contact Surety Claims. ICW Oroap, t 1455 E1 Camino Real, San Diego, CA 92130 2045 or call (858) 3502400. si'ATI; OF CALWOuNIA DEPARTMENT OF INSUILANCE SAN I-RANCISCO Ar1E11DED Certificate of Authority TIrt3 Is To Clumpy, That, INlmerani It) the Iflsarance Cade of fha State of California, - INSNRAIICR COrhl'ANY OF 'k1iJ: WMT of SAN DIAGO, CALIMNIA , organized tauter the laws of CALIFORNIA , subject to fu ,Artfdes of dt;ccirttarattau or - other j n dautental organizational rlacurnents, tv hereby authorfml to lowmad :within dits Stare, subject to arl p►adtions of this Ceriffeata, the fallotoing classes at huttlrance. viliL, Ff uMs, SURr!WY, DISAIIILITY, PLATE GUSS, LIABILITY, WORKERS' COi`1PEIMAT.IUN, COMMON CARRIER LIABILITY, BOILER ARD H&CHINEUY, BURGLARY, CHWIT, SI'l1ItViMER, TEAK AND VEIIICJ:1:, AUTO10BILEF, AIRORKPI' acid, 11MCEGLANFOUS as mach dussas are swig or may hereafter he defened its the Insuranae Lams of the State of Catt fomia. 'rIjl$ CM(TIVICAT8 IS asj)ressly canllftfoned upon the Rattler ltareaf now and heimiler bring in full compliance with all, and 1101 if] Ofulatton of ally, of the apidieable latos afut lale/ul requilvinelus ntuda under anthorft y a f the tatas of the state of Caff fdrlita as long, as suds laum or mqutraments are its of fact and alrtrl foable, and as sate(( laws and f equfre-ments noro are, or stay hareaf fer be changed or narcndul. Its Ivrrumss wilrxttmt i effcetfue as of ilia . 3OL11 rlall of ..... .._ — lo-retabes, _ _ _ —> 197ti„ I hove hercuwto set rng halal curl cattsad fny ojjictai seal to Lc aQfxed this 3() yl I (fait of WGSLEY J. Ifi1MFa11 futasanea GaanM►Wner By JOUIR- J. PARER emtary of State nuat tie accomplitbod as m4lutratl by the Cadilornia Corpmallau Cetit- f lists Cctillicate of Authority. Patinas to tlo so will be a violatlan of Tns. Coda Sec 701. oral a9ll Iw gmuads tar revoking lids CortilimW of Autbosily pursnaut to lite enveoanty mm& fa tho appilcAlkin llu retur and lbu comhilhnts co7alaWell borcht. FORA ens .m+.aa> >. —e,. et- 1. eke orwm gtwd, Juba t, Ilaauatt, Ksoeteive Vise s'x"nt or lasorwere Caapaay or the West. do h,=hy mxti(y thA the original Cenirtatda arAuthaaly, of"Ich this toregoha` Is a tall.161, U4 Cons¢( spit, is is ralh (am =a ere". awl has sot tees tevo al. IN WFIMM, WIIF.ttl;()F, l have haramte whsetibaimy item(( as lixomuUrt: Vim Ynaadtst sad affixed the Coslaxaft Sass of Pee cotiastatlat, this _ �doy of • w _..._._.: INSU[iA Cg PANYOFUIRWYAT tottII . ItanIItaD, IsYaxalhse YMY' t`/Ni,L:al 6 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of San Diego On 11/30/2005 before me, Nick] Edwards, Notary Public, personally appeared Daniel P. Dole, ® personally known to me--9R--4e- o be the persoo- whose nameV is1we subscribed to the within instrument and acknowledged to me that he/ska4hey executed the same in his/hogthek authorized capacily(itI7, , and that by his/her/their signaturew on the instrument the personK, or the entity upon behalf of which the personfla'f acted, executed the instrument. OFFICIAL SEAL NICKI EDWARDS NOTARY PUBLIC-CALIFORNIA w eMy COMMISSION # 1585730 SAN DIECO COUNTY WITNESS my hand and official seal. Commfsslon Exp. March al. 2t>a8 Signature of Notary Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER ❑ PARTNER(S) ❑ LIMITED ® ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIANICONSERVATOR OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) Insurance Company of the West CA.ICW 24 (710 I CITY OF PALM DESERT STANDARD FORM SUBDIVISION PAYMENT BOND (LABOR & MATERIALS) NAME OF SUBDIVISION: UNIVERSITY PomE / 'mac' NO. 32498 NAME OF SUBDIVIDER: PAIL'q DESERT PAR=S, LP NAME OF SURETY: INSURANCE OOMPANY OF THE WEST EFFECTIVE DATE: NOVEMBER 30, 2005 AMOUNT OF BOND: $148, 255.50 BOND NUMBER: 217 28 47 PREMIUM: INCLUDED IN PREMIUM CHARGED FOR PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That the person, firm, corporation, entity or otherwise, named on Line 2 of Page 1 hereof without regard to gender and number, hereinafter referred to as PRINCIPAL; and the corporation named on Line 3 of Page 1 hereof, a corporation authorized to do business in the State of California and presently possessed of authority under Title 6 of the United States Code to do business under Section 6 to 13 thereof in the aggregate amounts hereof, hereinafter referred to as SURETY; are jointly and severely held and firmly bound unto and all materialmen, persons, companies or corporations furnishing materials, provisions, provender or other supplies used, in, upon, for or about the performance of the work contracted to be executed or performed under *the terms of that certain SUBDIVISION GAPubWodcAUnd DevelopmentOwnplatesXUbor & Materials Bond Subdivisiomdoc 2 IMPROVEMENT AGREEMENT hereinafter mentioned R and all persons, companies or corporations renting or hiring teams or implements, or machinery, for contributing to said work to be done, all persons who performed work or labor upon the same, and all persons who supply both work and materials, and whose claim has not been paid by PRINCIPAL in the just and full sum mentioned on Line 5 of Page 1 hereof for the payment whereof, well and truly to be made, said PRINCIPAL and SURETY bind themselves, their heirs, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THE OBLIGATION is such that whereas the above - bounden PRINCIPAL has entered into a SUBDIVISION IMPROVEMENT AGREEMENT with the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as CITY, for the construction of public improvements in the subdivision named on Line 1 of Page 1 hereof, which said SUBDIVISION IMPROVEMENT AGREEMENT is by this reference incorporated herein. NOW, THEREFORE, if the above -bounden PRINCIPAL, .contractor, person, company or corporation, or his or its subcontractor or subcontractors, fails to pay for any materials, provisions, provender, or the supplies, or teams used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work for labor, SURETY on this bond will pay the same, in an amount not exceeding the sum specified in this bond, and also, in case suit is brought on this bond, a reasonable attorney's fee G.TubWoftUand DevelopmenATemplatesUabor & Materials Bond Subdivision doe 3 which shall be awarded by the court to the prevailing party in said suit, said attorney's fee to be taxed as costs in said suit and to be included in the judgment therein rendered. This bond is executed and filed to comply with the provisions of the Subdivision Map Act; and all CITY ordinances, resolutions, rules and regulations supplemental thereto; and all amendments thereto; and shall inure to the benefit of any and all materialmen, persons, companies or corporations entitled to file claims under and by virtue of the provisions thereof. IN WITNESS WHEREOF, PRINCIPAL AND SURETY have executed this instrument the date mentioned on Line 4 of Page 1 hereof. PALM DESERT PAi2'I MS, INC. _ PRINCIPAL -RUANCIPAL IN OQ MW OF THE 14M RETY SURETY DANIEL P. DOLE, A —IN—FACT (Notarial acknowledgement of execution by ALL PRINCIPALS and SURETY must be attached.) G\PubWor4iUnd Dcvdop=nAT=ptates\Labor & Materials Band Subdivision.doc CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT �c�4-r�-•r��•r.rrcrotl;�cr.rxr�<�,r.�"�^^s�Y.�'-"r.:r.��•;M�.fci:ccr=.sc!r.�r�:r%��:���'r..•.��'�' State of California County of QPIAII.I C5 ss, On before me, /-/. Date Name and 10fe of O 11cer te.g., Jane Doe, Notary Publicly personally appeared 49 ' 67S ?�IM&W , Name(s) of Signer(a) N. GH�1 comrradon 01577507 lactcw t�ub6c Caffanb aretrpe County Comrrr. ' M 9.' ❑ personally known to me L(pl'oved 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 eapacity(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 nd and official seal. Place Notary Sea! Above Signature or Notary P&vc OPnONAL Though the information below is not required by taw, if may prove valuable to persons retying on the document and could prevent fraudulent removal and reattachment of this fort to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's Name: ❑ Individual ❑ Corporate Officer — Ttle(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact Top of tbumb here ❑ Trustee 0 Guardian or Conservator ❑ Other Signer Is Representing: u Signer's Name: ❑ Individual ❑ Corporate Officer — Titie(s): ❑ Partner —O Limited O General ❑ Attorney in Fact NORIO Tap of thumb here ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: .:i.�.• ��,v�t mac, wt. „�v,.r. ,... ,ee: _ �s �,:. Yv_; _ _ �:..r,.._ . . 0 2004 National Notary Association • MO De Soto Ave., P.O. Box 24a2 • Chatsworth, CA 213IM402 Item No. 6907 Reorder. call Toti•Frae I-WO-57a -6027 I.C-W- GROUP Insurance Company of The West The Explorer Insurance Company Independence Casualty and Surety Company 1145:5 E1 Camino Real.. San Diego- CA 92130-2045 P.O. BOX 85563. San Diego. CA 92186-»63 (858) 350-2400 FAX (838) 350-2707 u "-%'v- iM group.coM Bond Number. 217 28 47 Terrorism Risk Rider This rider addresses the requirements of the Terrorism Risk Insurance Act of 2002. In accordance with the above Act, we are providing this disclosure notice for all bonds on which one or more of the above identified companies is a surety. Coverage for certified acts of terrorism is included in the attached bond and will be partially reimbursed by the United States under a formula established by the. Act The United States with pay 90% of covered terrorism losses in excess of a statutory established deductible to the insurance company issuing the bond. In no way will the payment for loss on this bond exceed the limit of liability under this bond. This rider does not provide coverage for any loss that would otherwise be excluded by the terms of this bond. The portion of the premium, for this bond, attributable to coverage for certified acts of terrorism under the Act is One Dollar (S 1.00) Important Notice: The cost of terrorism coverage is subject to chattge on any bond that premium is charged annually- No. 0001256 ICW GROUP Power of Attorney Insurance Company or the West Explorer Insurance Company Independence Casualty and Surety Company KNOW ALL MEN BY THESE PRESENTS: That Insurance Company of tlne West, a Corporation duly organized under the laws of the State of Catifomfs, Explorer Insurance Company, a Corporation duty organized under the laws of the State of California, and Independence Casualty and Surety Company, a Corporation duly organized under the laws o f the State of Texas, (collectively referred to as the "Companies"}, do hereby appoint NICI F EDWARDS, JOHN T. DOLE, DANIEL P. DOLE, JAMES F. TEGETMEYER, ROBERT P. DOLE thew true and lawfiil Attomey(s)-in-Fact with authority to date, execute, sign, seal, and deliver on behalfof the Companies, fidelity and surety bonds, undertakings, and other similar contracts of suretyship, and any related documents. In witness whereof, the Companies have caused these presents to be executed by its duty authorized officers this I st day of November, 2005. �eulul r /9'uR4�V - t�� , �. o, f / oo c INSURANCE COMPANY OF TF& WEST �. -. a �t,ORr01GIF0 yp (o F e'p c, b k � EXPLORER INSURANCE COIVIPANY SEAL-�$ INDEPENDENCE CASUALTY AND SURETY CII I, Itrr ��o.'i ti°° v COMPANY ✓ :GJ �—/ f Jeffrey D. Sweeney, Assistant Secretary John L. Hannum, Executive Vice President State ofCalifomia 11 County of San Diego I ss. On November 1, 2005, before me, Francis Foftutl, Notary Public, personally appeared John L. Hannum and Jeffrey D. Sweeney, personally known to me to be the persons whose names are subscribed to the witldn instrum=e and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument, the entity upon behalf of which the persons acted, oxecuted the instrument. Witness my hand and official seal. Francis Fafsal, Notary Public RESOLUTIONS This Power of Attorney is granted and is signed, seated and notarized with facsimile signatures and seats under authority of the following resolutions adopted by the respective Boards ofDirectors of each of the Companies: "RESOLVED: That die President, an Executive or Senior Vice President of the Company, together with the Secretary or any Assistant Secretary, are hereby authorized to execute Powers of Attorney appointing the person(s) named as Attorney(s)-in Fact to date, execute, sign, seat, and deliver on behalf of the Company, fidelity and surety bonds, undertakings, and other similar contracts of suretyship, and any related documents. RESOLVED FURTHER: 'that the signatures of the officers making the appointment, and the signature of any officer certifying the validity and current status of the appointment, may be facsimile representations ofthose signatures; and the signature and seal ofany notary, and the seal of the Company, may be facsimile representations of tuose signatures and seals, and such facsimile representations shall have the same force and effect as if mannatly affixed. The fl,esimile representations referred to herein may be affixed by stamping, printing, typing, or photocopying." CERTIFICATE 1, the undersigned, Assistant Secretary of Insurance Company of the West, Explorer Insuranes Company, and Independence Casualty and Surety Company, do hereby certify that the foregoing Power of Attorney is in full force and effect, and has not been revoked, and that the above resolutions were duly adopted by the respective Boards of Directors of the Companies, and are now in full force. IN WITNESS WHEREOF, I have set my hand this 50 day of YI�.Y/fir Jeffrey D. Sweeney, Assistant Secretary To verify the authenticity of this Power of Attorney you may call 1-300.877-111 land ask for the Surety Division. Please refer to the Power of Attorney Number, the above named individual(s) and details of the bond to which the power is attached_ For information or filing claims, please contact Surety Claims, ICW Group, 11455 El Camino Real, San Diego, CA 92130-2045 or call (958) 350 2400. MATS OF CALIFORNIA DEPAW MLNT OF iNSUILANCE SAN I ANC1SCO AHifiAF,D Certificate of Authority Tills Is zit Cuivim Thal, pursuant tit the ttlsuralwo Code of the State of California, INSURANCE COMIANY Off THA VISST of SAN DIEGO, CALIFORNIA , organtxact under the stuns of CALIBORNIA , subject to its Arfidw of &icorpomtfoit or other ftoirlaatental organisutioual docaments, is hereby anihorivid to tfansact ttlifititi this Slate, subject to aft provistous of this Cerltjitcate, the falluiotng classes of famrance: Film, MARItIE, SUItL-LwY, DISABILITY, PLATE MASS, LIABILITY, WORKERS" COMPERSAT.IUM, UOmmuN CAItRTER LIABILITY, ROILElt MID MhallXNERY, BURGLARY. CtiLPIR, SI.'RINMER, TLAM AND VFIME, AUTOMOBILE, AMORAPP atut HMSCELIANEOUS as such classes are rwry or stta{t hereafter Le defined in the ftrsurance Lagos of the State of Callfonia. 7'tus (;tat-nvtCs.'r's is expressly miditinued upoi► the holder hereof two and hereafter bong fu full coulliftmles ivull art, and not in ofalation of any, of tits applicable lates mad lafoful requirements rna(Icutirterauthorliyof the faros of the StetsofCalfforntaaslong assudslaws orraquiramarnsme in affect acid atrpliwbte, and rrs such, rates and requirements noro are. or may haretlftar be chnrrgrit or amended. IN WIrNlta.t'' Wtimt mu. effactiot: as of the . 30L)i dog of...... __ _titwemtium— ._._, 1078-1 have hereuuta set illy hand and wrtsrul my afctalseal to be of fixed this 3t)l:tt (lay of. .._.._...14ovember...... WESLEY J. KINDER ttuaronce Qatnetrrt<ena By t J011i!• J . F�AsBER rretaty of Suite must he accomptl&W as mquircia by the California Corpomtlous Code if !tits CorllReats of Aulbority. FNisim to do so will. be ■ violation of Ins. Crula See. 701 :cvokhtlt this Cortifirnte of Auiborly pummut to ilia cevaumb• tnatki !u [Ito appficaikin thrrdur aura ilia wudiihills amtaincd herein. Fo enJ 1, the taklasilywt, )An t..1 wizutm, I;fasWive vice j'u:.Qeut or tmeresre rouWany at tke wait. tie twci y vA iIy Umi am ek gW1 Cet Wjda of AtttLoiity,af wliieh the farwieg ism fdR, tiva wl come 9PM is in full Qm and elfec{ msl itu nil bean revotal iN Vttl'NI•:SSWLIF.RtXtf, f have Ittsomto suhato'6a1 my acme m iixautirc Yioc i'nxidmt, and el6xad the tbgwtrta SW of IOc cotiimelioti,atis dayor !NS[IRA C& PANY OP171S WY.ST Soh tLiimipa, [?mxidirc V$r t4a�ci�1 � CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of San Diego On 11/30/2005 before me, Nicki Edwards, Notary Public, personally appeared Daniel P. Dole, ® personally known to me-49R --E3" to be the personX whose name(, islare subscribed to the within instrument and acknowledged to me that helake4key executed the same in his/her4heir. authorized capacity(ies); and that by his/kefAlteir signature(4 on the instrument the person; or the entity upon behalf of which the persoq K acted, executed the instrument. OFFINI0KJ D ARDSSEA. NiCKi EDWARI7S NOTARY PUBLIC-CALIFORNIA m COMMISSION # 1566730 �S SAN DIEGO COUNTY WITNESS my hand and official seal. My Commission Exp. March 31, 2009 Signature of Notary ­ Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment ofthis form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER ❑ PARTNER(S) ❑ LIMITED ® ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR OTHER: SIGNER IS REPRESENTING: NAME OF PERSONS) OR ENTITY(IES) Insurance Company of the West DESCRIPTION OF ATTACHED DOCUMENT 4 CMCW 24 (7110) "'ITY OF PALM DES"lT 73-510 Fred Waring Drive Palm Desert, California 92260-2678 , X 14 1 F 1 7— % Tel: 760 346-0611 Fax: 760 341-7098 info(taim-desert.o-m BONDS AND FEES SUMMARY PROJECT: TR 32498 PORTOLA POINTE DATE: October 18, 2005 BONDS Faithful Performance $ 296,511.00 Labor and Materials $ 148,255.50 TOTAL BONDS $ 444,766.50 REFUNDABLE CASH DEPOSITS Survey Monumentation $ 3,000.00 PM10 $ 9,360.00 TOTAL DEPOSIT $ 12,360.00 FEES Plan Check $ (69.00) Inspection $ 4,752.00 Park $ 83,192.72 Signalization $ 800.00 Drainage $ 7,020.00 Fringed Toed Lizard $ 2,808.00 Transportation Uniform Mitigation Fee (T.U.M.F.) B & S COLLECTS Miscellaneous $ - TOTAL FEES $ 98,503.72 Prepared By: BENJAMIN D. EGAN Checked By: R. PAGE GARNER G-Wu6WQ"rwVKWfi31GALC FFES1.0s SUBDIVISION IMPROVEMENT AGREEMENT DATE OF AGREEMENT: August 2, 2012. NAME OF SUBDIVIDER: HARRISON ROAD VENTURES LLC (referred to as "SUBDIVIDER"). NAME OF SUBDIVISION: UNIVERSITY POINTE No. of Lots: 16 (referred to as "SUBDIVISION"). TENTATIVE MAP RESOLUTION OF APPROVAL NO.: 2323(TM No: 32498) (referred to as "Resolution of Approval') IMPROVEMENT PLANS APPROVED ON: (referred to as "Improvement Plans") ESTIMATED TOTAL COST OF IMPROVEMENTS. ESTIMATED TOTAL COST OF MONUMENTATION: I SURETY: BOND NOS: �S-SS SURETY: I eC �1Cvr 44� C e_ -OR- IRREVOCABLE STAND-BY LETTER OF CREDIT NO. FINANCIAL INSTITUTION: -OR- CASH/CERTIFICATE OF DEPOSIT, AGREEMENT DATED: FINANCIAL INSTITUTION: This Agreement is made and entered into by and between the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as "CITY", and the SUBDIVIDER. RECITALS RMPUB\DJE\ l 597 A. A predecessor owner of the subject property to SUBDIVIDER ("Predecessor") had presented to CITY for approval and recordation, a final subdivision map of a proposed SUBDIVISION pursuant to provisions of the Subdivision Map Act of the State of California and the CITY's ordinances and regulations relating to the filing, approval and recordation of subdivision maps. The Subdivision Map Act and the CITY's ordinances and regulations relating to the filing, approval and recordation of subdivision maps are collectively referred to in this Agreement as the "Subdivision Laws". B. A tentative map of the SUBDIVISION has been approved, subject to the Subdivision Laws and to the requirements and conditions contained in the Resolution of Approval. The Resolution of Approval is on file in the Office of the City Clerk and is incorporated into this Agreement by reference. C. The Subdivision Laws establish as a condition precedent to the approval of a final map that SUBDIVIDER must have complied with the Resolution of Approval and must have either (a) completed, in compliance with CITY standards, all of the improvements and land development work required by the Subdivision Laws or the Resolution of Approval or (b) have entered into a secured agreement with CITY to complete the improvements and land development within a period of time specified by CITY. D. In consideration of the approval of the final map forthe SUBDIVISION by the City Council, Predecessor entered into a subdivision improvement agreement for this SUBDIVISION with the City dated December 15, 2005 and amended December 2, 2008 (the "Previous Agreement"), whereby Predecessor promised to install and complete, at Predecessor's own expense, all the public improvement work required by CITY in connection with the SUBDIVISION. RMPUB\DJE\1597 - 2 - E. SUBDIVIDER desires to replace the Previous Agreement and 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. F. Complete Improvement Plans for the construction, installation, and completion of the improvements have been prepared by SUBDIVIDER and approved by the City Engineer. The Improvement Plans numbered as referenced previously in this Agreement are on file in the Office of the City Engineer and are incorporated into this Agreement by this reference. All references in this Agreement to the Improvement Plans shall include reference to any specifications for the improvements as approved by the City Engineer. G. 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. H. 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 this Agreement. I. 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. RMPUB\DJE\1597 _ 3 _ Individual property monuments must be installed within one year from the formal final Council acceptance of said SUBDIVISION. J. SUBDIVIDER recognizes that by approval of the final map for SUBDIVISION, CITY has conferred substantial rights upon SUBDIVIDER, including the right to sell, lease, or finance lots within the SUBDIVISION. As a result, CITY will be damaged to the extent of the cost of installation of the improvements by SUBDIVIDER's failure to perform its obligations to commence construction of the improvements by the time established in this Agreement. CITY shall be entitled to all remedies available to it pursuant to this Agreement and law in the event of a default by SUBDIVIDER. It is specifically recognized that the determination of whether a reversion to acreage or rescission of the SUBDIVISION constitutes an adequate remedy for default by the SUBDIVIDER shall be within the sole discretion of CITY. NOW, THEREFORE, in consideration of the prior approval and recordation by the City Council of the final map of the SUBDIVISION and the replacement of this Agreement for the Previous Agreement, 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 which have not already been completed 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. RMPUB\DJE\1597 (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 which have not already been dedicated. 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 to the extent not already obtained. (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: RMPUB\DJE\1597 - rj - (a) The offer of dedication to CITY of appropriate rights -of -way, easements or other interests in real property, and appropriate authorization from the property owner to allow construction or installation of the improvements or work, or (b) The dedication to, and acceptance by, CITY of appropriate rights -of - way, easements or other interests in real property, as determined by the City Engineer, or (c) The issuance by a court of competent jurisdiction pursuant to the State Eminent Domain Law of an order of possession. SUBDIVIDER shall comply in all respects with the order of possession. Nothing in this Section (2) shall be construed as authorizing or granting an extension of time to SUBDIVIDER. (3) Security. SUBDIVIDER shall at all times guarantee SUBDIVIDER's performance by furnishing to CITY, and maintaining, good and sufficient security as required by the Subdivision Laws on forms approved by CITY for the purposes and in the amounts as follows: (a) to assure faithful performance of this Agreement in regard to said improvements in an amount of 100% of the estimated cost of the improvements; and (b) to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor and materials for the improvements required to be constructed and installed pursuant to this Agreement in the additional amount of 50% of the estimated cost of the improvements; and (c) to guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by CITY against any defective work or labor done or defective materials furnished in the additional amount of 10% of the estimated cost of the improvements; and RMPUB\DJE\1597 - 6 - (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 RMPUB\DJE\1597 - ] - 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. RMPUB\DJE\1597 - 8 - (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 RMPUB\DJE\1597 - 9 - faithful performance of the improvement work and that the security shall not be reduced to an amount less than fifty percent (50%) of the total improvement security given for faithful performance until final completion and acceptance of the improvement work. In no event shall the City Engineer authorize a release of the improvement security which would reduce such security to an amount below that required to guarantee the completion of the improvement work and any other obligation imposed by this Agreement. (c) Security given to secure payment to the contractor, his or her subcontractors and to persons furnishing labor, materials or equipment shall, at six (6) months after completion and acceptance of the work, be reduced to an amount equal to no less than 125% of the total claimed by all claimants for whom liens have been filed and of which notice has been given to the CITY, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the Security. The balance of the security shall be released upon the settlement of all claims and obligations for which the security was given. (d) No security given for the guarantee or warranty of work shall be released until the expiration of the warranty period and until any claims filed during the warranty period have been settled. As provided in Section (10), the warranty period shall not commence until formal final acceptance of all the work and improvements by the City Council. (e) CITY may retain from any security released, an amount sufficient to cover costs and reasonable expenses and fees, including reasonable 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 RMPUB\DJE\1597 - 1 Q - which are destroyed or damaged as a result of any work under this Agreement. SUBDIVIDER shall bear the entire cost of replacement or repairs of any and all public or public utility property damaged or destroyed by reason of any work done under this Agreement, whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by CITY or any public or private utility corporation or by any combination of such owners. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. (8) Permits. SUBDIVIDER shall, at SUBDIVIDER's expense, obtain all necessary permits and licenses for the construction and installation of the improvements, give all necessary notices and pay all fees and taxes required by law. (9) Default of SUBDIVIDER. (a) Default of SUBDIVIDER shall include, but not be limited to, Agreement; improvements; improvements; (1) SUBDIVIDER's failure to timely commence construction of this (2) SUBDIVIDER's failure to timely complete construction of the (3) SUBDIVIDER's failure to timely cure any defect in the (4) SUBDIVIDER's failure to perform substantial construction workfor a period of twenty (20) calendar days after commencement of the work; (5) SUBDIVIDER's insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which SUBDIVIDER fails to discharge within thirty (30) days; RMPUB\DJE\1597 -1 1- (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 RMPUB\DJE\1597 -12 - 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 RMPUB\DJE\1597 -13 - parts of the work or structure. Should SUBDIVIDER fail to act promptly or in accordance with this requirement, SUBDIVIDER hereby authorizes CITY, at CITY's option, to perform the work twenty (20) days after mailing written notice of default to SUBDIVIDER and to SUBDIVIDER's surety, and agrees to pay the cost of such work by CITY. Should CITY determine that an urgency requires repairs or replacements to be made before SUBDIVIDER can be notified, CITY may, in its sole discretion, make the necessary repairs or replacement or perform the necessary work and SUBDIVIDER shall pay to CITY the cost of such repairs. (11) SUBDIVIDER Not Agent of CITY. Neither SUBDIVIDER nor any of SUBDIVIDER's agents, contractors or subcontractors are or shall be considered to be agents of CITY in connection with the performance of SUBDIVIDER'S obligations under this Agreement. (12) Injury to Work. Until such time as the improvements are accepted by CITY, SUBDIVIDER shall be responsible for and bear the risk of loss to any of the improvements constructed or installed. Until such time as all improvements required by this Agreement are fully completed and accepted by CITY, SUBDIVIDER will be responsible for the care, maintenance of, and any damage to such improvements. CITY shall not, nor shall any officer or employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the work or improvements specified in this Agreement prior to the completion and acceptance of the work or improvements. All such risks shall be the responsibility of and are hereby assumed by SUBDIVIDER. (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 RMPUB\DJE\1597 -14 - 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. RMPUB\DJE\1597 -15 - (14) Other Agreements. Nothing contained in this Agreement shall preclude CITY from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreements with other subdividers for the apportionment of costs of water and sewer mains, or other improvements, pursuant to the provisions of the CITY ordinances providing therefore, nor shall anything in this Agreement commit CITY to any such apportionment. (15) SUBDIVIDER'S Obligation to Warn Public During Construction. Until formal final acceptance of the improvements, SUBDIVIDER shall give good and adequate warning to the public of each and every dangerous condition existent in said improvements, and will take all reasonable actions to protect the public from such dangerous condition. (16) Vesting of Ownership. Upon formal final acceptance of the work by CITY and recordation of the Resolution of Acceptance of Public Improvements, ownership of the improvements constructed pursuant to this Agreement shall vest in CITY. (17) Final Acceptance of Work. Acceptance of the work on behalf of CITY shall be made by the City Council upon recommendation of the City Engineer after final completion and inspection of all improvements. The City Council shall act upon the Engineer's recommendation within sixty (60) days from the date the City Engineer certifies that the work has been finally completed, as provided in Section (6). Such acceptance shall not constitute a waiver of defects by CITY. (18) Indemnity/Hold Harmless. CITY or any officer or employee thereof shall not be liable for any injury to persons or property occasioned by reason of the acts or omissions of SUBDIVIDER, its agents, or employees, contractors and 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, RMPUB\DJE\I597 - 1 6 - agents and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions of SUBDIVIDER, its agents, employees, contractors and subcontractors in the performance of this Agreement, except for such claims, demands, causes of action, liability, or loss arising out of the sole active negligence of the CITY, its officials, boards, commissions, the members thereof, agents, and employees, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the improvements. This indemnification and agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of said SUBDIVISION, and the public improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design and construction of public drainage systems, streets and other public improvements. Acceptance by CITY of the improvements shall not constitute an assumption by CITY of any responsibility for any damage or taking covered by this Section. CITY shall not be responsible for the design or construction of the property to be dedicated or the improvements pursuant to the approved improvement plans or map, regardless of any negligent action or inaction taken by CITY in approving the plans or map, unless the particular improvement design was specifically required by CITY over written objection by SUBDIVIDER submitted to the City Engineer before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design. After acceptance of the improvements, the SUBDIVIDER shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect; however, SUBDIVIDER shall not be responsible for routine RMPUB\DJE\1597 -17 - 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. Seller or other SUBDIVIDER may request a novation of this Agreement and a substitution of security. Upon approval of the novation and substitution of securities, the SUBDIVIDER may request a release or reduction of the securities required by this Agreement. Nothing in the novation shall relieve the SUBDIVIDER of the obligations under Section (18) for the work or improvement done by SUBDIVIDER. RMPUB\DJE\1597 -18 - (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. RMPUB\DJE\1597 (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: Harrison Road Venures LLC 77682 Country Club Drive; Suite A3 Palm Desert, California 92211 Attn: Stuart Chelin or Steven Hyman Notice to SURETY: SureTec Insurance Co. c/o Pinnacle Surety & Insurance Services 151 Kalmus Drive; Suite A201 Costa Mesa, California 92626 Attn: Eric Lowey or Stephanie Hoang (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. RMPUB\DJE\1597 - 2 Q - (28) Litigation or Arbitration. In the event that suit or arbitration is brought to enforce the terms of this Agreement, the prevailing party shall be entitled to litigation costs and reasonable attorneys' fees. (29) Incorporation of Recitals. The recitals to this Agreement are hereby incorporated into in the terms of this Agreement. (30) Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties. (31) Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California. (32) Jurisdiction. Jurisdiction of all disputes over the terms of this Agreement shall be in the County of Riverside, State of California. RMPUB\DJE\1597 - 2 1- A HEITEC Engineer's Cost Estimate A 6J L T, N G TRACT NO.32498 42575 Melanie Pl.. Ste. H Palm Desert, CA 92211 Client: Harrison Road Ventures LLC WO No.: 040401 Calc'd: J.R. Page: 1 Tel 760. 340.9060 Fax 760.340.9070 Date: 04/19/12 Chk'd: M.H. Of: 1 DESCRIPTION QUANTITY UNIT COST SUBTOTAL STREET IMPROVEMENTS 4" A.C. over 7" A.B. Class 2 27,325 S.F. $5.00 $136,625.00 Cut A.C. Edge Pavement Overlay to Join 2' min. 912 S.F. $2.00 $1,824.00 SAW Cut and Remove Curb and Gutter 103 L.F. $12.00 $1,236.00 6" Curb and Gutter 598 L.F. $20.00 $11,960.00 8" Curb and Gutter 282 L.F. $25.00 $7,050.00 Constr. Emergency Access Driveway Per Plan W=24' 839 S.F. $6.00 $5,034.00 Constr. Driveway Per Riv. Co. Std. 207 W=17' 1,976 S.F. $6.00 $11,856.00 Constr. PCC Cross Gutter 1,682 S.F. $10.00 $16,820.00 6' Wide, 4" thick P.C.C. Sidewalk 7,580 S.F. $5.00 $37,900.00 8' Wide, Meandering Sidewalk Per C.P.D. Std. No. 104 4,426 S.F. $5.00 $22,130.00 Adjust Water Valve to Grade Per C.V.W.D. STDS. 2 E.A. $300.00 $600.00 Adjust Manhole to Grade QFt )FESS/pN9 1 E.A. $500.00 $500.00 Stop Sign, Stop Bar and Legend �cc�pD N�Oc2 1 EA. $500.00 $500.00 CO Street Sign w N . 5 06rn 1 EA. $300.00 $300.00 Construct Catch Basin Per Riv. Co. #300 12 1 1 EA. $12,000.00 $12,000.00 Install Residential Lighting sC1V1L ��� 1 EA. $3,500.00 $3,500.00p Install Blue F.H. Markers qTF OF CA1 �FC� 2 EA. $25.00 $50.00 Remove Barricade 1 EA. $800.00 $800.00 Handicap Ramp 2 EA. $1,500.00 $3,000.00 Total <_ -73 x : � ,'.I $273,685.00 GRADING AND MISC.* 18" ADS N-12 120 L.F. $25.00 $3,000.00 Storm Tech Chambers for Underground Retaining System 1 L.S. $44,000.00 $44,000.00 Landscape 1 L.S. $20,000.00 $20,000.00 Total x $67,000.00 SUB -TOTAL $340;685.00 20% CONTINGENCY SAC,,`'; $68 '08 TOTAL $498i88-2Y00 Public Utilities Bond Estimate Does not include some items not related to street and utility placement. Does not include Bonds, M.S.W.D. Fees, Governmental Agency Fees. *Grading does not include pre -watering or soils testing. **Soils report may require over -excavation of street and pad sites this cost is not included. 040401 04-16-12.xls IN WITNESS WHEREOF, this Agreement is executed by the parties as of the date hereinabove first written; by CITY, by and through its Mayor. A So iv P w.+0 tV&-j4-Tv R&1C- LLC CITY OF PALM DESERT SUSDIVIDER r _r c�vvrA C"tA By: SUBDIVIDER (Proper Notarization of SUBDIVIDER's signature is required and shall be attached) MAYOR ATTEST: CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY RMPUB\DJE\1597 — 2 2 — ACKNOWLEDGMENT State of California County of Riverside On A11A 1 9-- _ before me, K4«r-, RAo-nSe.n rjalac, %kJ'IC (insert name and title of the officer) personally appeared s4 U qyr+ C-k Ai who proved to me on the basis of satisfactory evidence to be the person(,') whose name() is/p-op subscribed to the within instrument and acknowledged to me that he/sheAhey executed the same in his/heFAheir authorized capacity(,ift), and that by his/her/their signatureW on the instrument the person(), or the entity upon behalf of which the personw 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. +++� KAREN HANSEN Commission #E 1877216 z w Notary Public - California WITNESS my hand and official seal. i Riverside County my Comm. Ex fires Jan 16, 2014 Signature /dip ghmA?p (Seal) RMPUB\VCD\760 - 2 4 - lJtc I lit ii-100 AND IS SL111F, 10 AIy11 IS1"Of Al PAY'D (;' ; , /y, r ON' 1 :i3CT PRICT, CITY OF PALM DESERT STANDARD FORM SUBDIVISION FAITHFUL PERFORMANCE BOND NAME OF SUBDIVISION:UNIVERSITY POINTE/ TRACT NO.32498 NAME OF SUBDIVIDER: HARRISON ROAD VENTURES LLC NAME OF SURETY: SureTec Insurance Company EFFECTIVE DATE: July 25, 2012 AMOUNT OF BOND: $345,172.00 BOND NUMBER: 4385558 PREMIUM: $7,403.00 KNOW ALL MEN BY THESE PRESENTS: That the person, firm, corporation, entity, or otherwise, named on line 2 above, without regard to gender and number, hereinafter referred to as PRINCIPAL, and the corporation named on Line 3 above, a corporation authorized to do business in the State of California and presently possessed of authority under Title 6 of the United States Code to do business under Sections 6 to 13 thereof, in the aggregate amounts hereof, hereinafter referred to as SURETY, are jointly and severally held and firmly bound unto the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as CITY, in the sum mentioned on Line 6 above, for the faithful performance of that certain SUBDIVISION IMPROVEMENT AGREEMENT between PRINCIPAL and CITY regarding the subdivision named on Line 1 above, as required by the provision of the Subdivision Map Act and CITY ordinances, resolutions, rules, and regulations, for the payment of which sums well and truly to be made, PRINCIPAL and SURETY hereby bind themselves, their heirs, administrators, executors, successors and assigns, jointly and severally, firmly by these presents. The condition of the foregoing obligation is such that if the said PRINCIPAL shall faithfully perform the covenants, conditions, and agreements contained in that certain SUBDIVISION IMPROVEMENT AGREEMENT between PRINCIPAL and CITY regarding the subdivision named on LINE 1 of Page 1 hereof, which said agreement is by this reference incorporated herein, on its part to be kept and performed, in a manner and form therein specified, and shall furnish material in compliance with the specifications and perform all that certain work and improvement in said CITY which is more particularly described in said SUBDIVISION IMPROVEMENT AGREEMENT, then the obligation with respect to the faithful performance is by this reference incorporated herein. The said SURETY, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the SUBDIVISION IMPROVEMENT AGREEMENT or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the SUBDIVISION IMPROVEMENT AGREEMENT, the work, the specifications or any feature or item of performance thereunder. In the event it becomes necessary for CITY to bring an action to enforce this bond, SURETY shall pay CITY's reasonable attorney's fees and court costs in connection therewith. IN WITNESS WHEREOF, PRINCIPAL and SURETY have executed this instrument on the date mentioned on Line 4 of Page 1 hereof. S +off Ct,,e.0 PRINT NAME: l l iTX-( `" VW ^ TITLE & OMPANY NAME PRINCIPAL'S SIGNATURE PRINT NAME TITLE & COMPANY NAME SURETY'S SIGNKURE Stephanie HoaIIlg, ttorney-in-Fact N/A SURETY'S SIGNATURE (Notarial acknowledgement of execution by ALL PRINCIPALS and SURETY must be attached.) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA County of Orange On �P5 112— before me, Irene Luong, Notary Public Datell Here Insert Name and Title of the Officer personally appeared Stephanie Hoang Name(s) of Signer(s) mac`" IRENE LUONG Q f'' Commission # 1883838 ' z.� �, z notary Public - California zz zOrange County " v Comm Fyplrt, "Aar 22, 2014 Place Notary Seal Above who proved to me on the basis of satisfactory evidence to be the person(e) whose name(s) is/are subscribed to the within instrument and acknowledged to me that 4ie/she/thay executed the same in-his/her/their authorized capacity(i46), and that by his/her/their signature(&) on the instrument the person(&), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoin paragraph is true and correct. Witness my brand Signature OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Stephanie Hoang ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ® Attorney in Fact ❑ Trustee O F SIGNER ❑ Guardian or Conservator I Top of thumb here ❑ Other: Signer Is Representing: Number of Pages: Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s) ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Top of thumb here P 2007 National Notary Assoc; ration - 9350 De Soto Ave., P.O. Box 2402 -Chatsworth. CA 91313-2402 - www.NationalNotary.org Item u5907 Reorder: Call 'roil -Free 1-800-876-6827 ACKNOWLEDGMENT State of California County of Riverside On before me, Ka('e.n R aA s e- 084-acf . R(6L C (insert name and title of the officer personally appeared S±L-j c" C he); I0 who proved to me on the basis of satisfactory evidence to be the personW whose name(4t) Wade subscribed to the within instrument and acknowledged to me that he/she##ey executed the same in his/hegtheitauthorized capacity(.iep), and that by his/her/their signature.($] on the instrument the person), or the entity upon behalf of which the person) 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. KAREN HANSEN Commission # 1877216 WITNESS my hand and official seal. a �:� Notary Public - California z i Riverside County D My Comm. Expires Jan 16, 2014 Signature ![ ��LL (Seal) CITY OF PALM DESERT STANDARD FORM SUBDIVISION PAYMENT BOND (LABOR & MATERIALS) NAME OF SUBDIVISION: UNIVERSITY POINTE/ TRACT NO.32498 NAME OF SUBDIVIDER: HARRISON ROAD VENTURES LLC NAME OF SURETY: SureTec Insurance Company EFFECTIVE DATE: July 26, 2012 AMOUNT OF BOND: $172,586.00 BOND NUMBER: 4385558 PREMIUM: Listed on Performance Bond KNOW ALL MEN BY THESE PRESENTS: That the person, firm, corporation, entity or otherwise, named on Line 2 of Page 1 hereof without regard to gender and number, hereinafter referred to as PRINCIPAL; and the corporation named on Line 3 of Page 1 hereof, a corporation authorized to do business in the State of California and presently possessed of authority under Title 6 of the United States Code to do business under Section 6 to 13 thereof in the aggregate amounts hereof, hereinafter referred to as SURETY; are jointly and severely held and firmly bound unto and all materialmen, persons, companies or corporations furnishing materials, provisions, provender or other supplies used, in, upon, for or about the performance of the work contracted to be executed or performed under the terms of that certain SUBDIVISION IMPROVEMENT AGREEMENT hereinafter mentioned and all persons, companies or corporations renting or hiring teams or implements, or machinery, for contributing to said work to be done, all persons who performed work or labor upon the same, and all persons who supply both work and materials, and whose claim has not been paid by PRINCIPAL in the just and full sum mentioned on Line 5 of Page 1 hereof for the payment whereof, well and truly to be made, said PRINCIPAL and SURETY bind themselves, their heirs, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THE OBLIGATION is such that whereas the above - bounden PRINCIPAL has entered into a SUBDIVISION IMPROVEMENT AGREEMENT with the City of Palm Desert, a municipal corporation of the State of California, hereinafter referred to as CITY, for the construction of public improvements in the subdivision named on Line 1 of Page 1 hereof, which said SUBDIVISION IMPROVEMENT AGREEMENT is by this reference incorporated herein: NOW, THEREFORE, if the above -bounden PRINCIPAL, contractor, person, company or corporation, or his or its subcontractor or subcontractors, fails to pay for any materials, provisions, provender, or the supplies, or teams used in, upon, for, or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work for labor, SURETY on this bond will pay the same, in an amount not exceeding the sum specified in this bond, and also, in case suit is brought on this bond, a reasonable attorney's fee which shall be awarded by the court to the prevailing party in said suit, said attorney's fee to be taxed as costs in said suit and to be included in the judgment therein rendered. This bond is executed and filed to comply with the provisions of the Subdivision Map Act; and all CITY ordinances, resolutions, rules and regulations supplemental thereto; and all amendments thereto; and shall inure to the benefit of any and all material men, persons, companies or corporations entitled to file claims under and by virtue of the provisions thereof. IN WITNESS WHEREOF, PRINCIPAL AND SURETY have executed this instrument the date mentioned on Line 4 of Page 1 hereof. HARRISON ROAD VENTURES LLC %, , //&w - PR IP L'S SIGNATURE S A-Vee-k C�Ie,[ t r PRINT NAME PRINCIPAL'S SIGNATURE PRINT NAME fie,. UC TITLE &GOMPANY NAME TITLE & COMPANY NAME III ;URETY'S S19"TURE Stephanie Ho ng, Attorney -in -Fact N/A SURETY'S SIGNATUR (Notarial acknowledgement of execution by ALL PRINCIPALS and SURETY must be attached.) ACKNOWLEDGMENT State of California County of Riverside On ��Lo'� before me, Karen Hansen, Notary Public /! (insert name and title of the officer) personally appeared Sf4�r-l' who proved to me on the basis of satisfactory evidence to be the person(*) whose nameM is/ice' subscribed to the within instrument and acknowledged to me that he/sHeAhtey executed the same in his/he AUsir authorized capacity(,B0, and that by his/h@FAheit signature(,* on the instrument the person.}, or the entity upon behalf of which the perso*) 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. .r.r KAREN HANSEN WITNESS my hand and official seal. Commission # 1877216 . �+a Notary Public - California i Z Riverside County ' My Comm. Expires Jan 16, 2014 Signatureo� (Seal) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA County of Orange } On +2� before me, Irene Luong, Notary Public Date Here Insert Name and Title of the Officer personally appeared Stephanie Hoang Names) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/thay executed the same inihts/her/their authorized capacity(iss), and that byhislher/their signature(&) on the instrument the person(&), or the entity upon behalf of which the person(s) ENE LUONG # 1883838 acted, executed the instrument. I� °'. Commission z California Notary Public - D I certify under PENALTY OF PERJURY under the laws of the State California foregoing is true Z ti orange County My Comm. Expires Mar 22, 2014 of paragraph and correct.. Witness my and offici e Signature Place Notary Seal Above Signatur of Notary Pu Ic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Stephanie Hoang ❑ Individual ❑ Corporate Officer— Title(s): ❑ Partner ❑ Limited ❑ General ® Attorney in Fact ❑ Trustee OF SIGNER ❑ Guardian or Conservator Top of thumb here El Other: Signer Is Representing: Number of Pages: Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s) _ ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Top of thumb here 02007 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 - www.NationalNolary.org Item 45907 Reorder: Call Toll -Free 1-800-876-6827 POA #: 510006 SureTec Insurance Company LIMITED POWER OF ATTORNEY Know All Men by These Presents, That SURETEC INSURANCE COMPANY (the "Company"), a corporation duly organized and existing under the laws of the State of Texas, and having its principal office in Houston, Harris County, Texas, does by these presents make, constitute and appoint Eric Lowey, Mark Richardson, Stephanie Hoang, Shawn Blume its true and lawful Attorney -in -fact, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognizances, undertakings or other instruments or contracts of suretyship to include waivers to the conditions of contracts and consents of surety for: Five Million and 00/100 Dollars ($5,000,000.00) and to bind the Company thereby as fully and to the same extent as if such bond were signed by the President, sealed with the corporate seal of the Company and duly attested by its Secretary, hereby ratifying and confirming all that the said Attorney -in -Fact may do in the premises. Said appointment shall continue in force -until 10/31/2013 and is made under and by authority of the following resolutions of the Board of Directors of the SureTec Insurance Company: Be it Resolved, that the President, any Vice -President, any Assistant Vice -President, any Secretary or any Assistant Secretary shall be and is hereby vested with full power and authority to appoint any one or more suitable persons as Attorney(s)-in-Fact to represent and act for and on behalf of the Company subject to the following provisions: Attorney -in -Fact may be given full power and authority for and in the name of and of behalf of the Company, to execute, acknowledge and deliver, any and all bonds, recognizances, contracts, agreements or indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attorney -in -Fact shall be binding upon the Company as if signed by the President and sealed and effected by the Corporate Secretary. Be it Resolved, that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating thereto by facsimile, and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. (Adopted at a meeting held on 20`4 of April, 1999.) In Witness Whereof, SURETEC INSURANCE COMPANY has caused these presents to be signed by its President, and its corporate seal to be hereto,ffixed this 3d day of September, A.D. 2010. SURETEC INSU E C PANY \�yVRANCFc 0 - X q 0 By: Ulf , D John o Jr., resident State of Texas ss: 7� 1 County of Harris On this 3rd day of September, A.D. 2010 before me personally came John Knox Jr., to me known, who, being by me duly sworn, did depose and say, that he resides in Houston, Texas, that he is President of SURETEC INSURANCE COMPANY, the company described in and which executed the above instrument; that he knows the seal of said Company; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto by like order. JACA EU L N MALDONADO V _ `°•' Notary Public, State of Texas z,•• My Commission Expires acq relyTion aldo ado, Notary Public May 18, 2013 y comm ex s May 18, 20)3 I, M. Brent Beaty, Assistant Secretary of SURETEC INSURANCE COMPANY, do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney, executed by said Company, which is still in full force and effect; and furthermore, the resolutions of the Board of Directors, set out in the Power of Attorney are in full force and effect. Given under my hand and the seal of said Company at Houston, Texas this �_ day of ) M. Brent Beaty, Assistant Secretary Any instrument issued in excess of the penalty stated above is totally void and without any validity. For verification of the authority of this power you may call (713) 812-0800 any business day between 8:00 am and 6:00 pm CST. 4 TRACT 32498 4 W W Z � Q Z J W 7 Wa APN: 694200022 = C House#: 0 a 0 W a. = O N 4 OOLLEGE--ViiEW-CiR Lf—E-- , TRNCT 32498 APN: 694200011 ALPINE LANE UNIVERSITY POINTE COURT j House#: 0 W W � Q W Q W � J 4 W � O N 4 DAISY LANE --PELF PLAGf-- APN: 694200022 House#: 0 FRANK SINATRA DRIVE Legend — Circulation Network Li City Boundary Streets ❑ Parcels (1/2012) 1: 1,639 O Notes