HomeMy WebLinkAboutRecorded Doc 2017-221 RECORDING REQUESTED BY: 2017-0512812
CITY CLERK 12/07/2017 08:18 AM Fee: $ 0.00
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WHEN RECORDED RETURN TO: Recorded in Official Records
2017-221 County of Riverside
Peter Aldana
City Clerk Assessor-County Clerk-Recorder
City of Cathedral City 1 WIRE:Vag lirit011(1!,
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234 g u ri
SPACE ABOVE THIS LINE FOR RECORDER'S USE
CITY OF CATHEDRAL CITY
IMPROVEMENT AGREEMENT
PARCEL MAP 30726
DATE OF AGREEMENT: November 8, 2017
NAME OF SUBDIVIDER: 63 MAXX DEVELOPMENT CATHEDRAL CITY, LLC
a Wyoming Limited Liability Company
(REFERRED TO AS "SUBDIVIDER")
NAME/NUMBER OF PARCEL MAP AND OTHER APPROVALS:
TENTATIVE PARCEL MAP NO. 30726
(REFERRED TO AS "SUBDIVISION")
TENTATIVE MAP APPROVED BY CITY COUNCIL ON SEPTEMBER 28, 2005 (THE "APPROVAL
ACTION")
PROPERTY SUBJECT TO THIS AGREEMENT is described in Exhibit "A", attached hereto and
incorporated herein (hereinafter the "Property")
EST. TOTAL COST OF EST. TOTAL COST OF EST. TOTAL COST OF
PUBLIC IMPROVEMENTS: PRIVATE IMPROVEMENTS: MONUMENTATION:
$ 929,400.00 $ 828,200.00 $ 10,000.00
see Exhibit "B" See Exhibit "B" See Exhibit "B"
SURETY COMPANY and BOND NUMBERS:
International Fidelity Insurance Company Bond No. 0730414
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This Agreement is made and entered into by and between the City of Cathedral City,
California, a municipal corporation of the State of California, hereinafter referred to as CITY,
and 63 Maxx Development Cathedral City, LLC, a Wyoming Limited Liability Company,
hereinafter referred to as "SUBDIVIDER".
RECITALS
A. Subdivider has presented to City an application for the construction of a
commercial center on Date Palm Drive, southerly of Varner Road, and has submitted an
application for the approval and recordation of a Tentative Parcel Map to divide the site of the
commercial center into ten (10) parcels and to thereafter develop the site. The final Parcel Map
and the development of the site are subject to the filing and recordation of a final parcel map,
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. The City Council of the City of Cathedral City has reviewed the applications and
has approved Tentative Parcel Map No. 30726 for the subdivision of the land, subject to the
Subdivision Laws and to the requirements and conditions of approval imposed thereon by the
Approval Action by the City Council on September 28, 2005. The tentative parcel map and all
requirements and conditions imposed thereon by the Approval Action are necessary for the
public health and safety and for the orderly development of the surrounding area, and are on file
in the Office of the City Engineer and are 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 requirements of the Approval Action and must
have either (a) completed, in compliance with City standards, all of the public and private
improvement and work required by the Subdivision Laws or the Conditions of Approval or, (b)
entered into a secured agreement with City to complete the public and private improvements
within a period of time specified by City.
D. In consideration of the approval of the final parcel map for the subdivision and
development 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 and
private improvement work required by City in connection with the proposed subdivision.
Subdivider has secured this Agreement by improvement security required by the Subdivision
Laws and approved by the City Attorney.
E. 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 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.
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F. An estimate of the cost for construction of the public and private improvements
and performing land development work in connection with the improvements according to the
Improvement Plans has been made and had been approved by the City Engineer. The
estimated amounts are stated on Page 1 of this Agreement, and the basis for the estimate of the
public and private improvements is attached as Exhibit "B" to this Agreement.
G. The City has adopted standards for the construction and installation of
improvements within the City. The Improvement Plans have been prepared in conformance
with the City standards in effect on the date or approval of the Conditions of Approval.
H. Within thirty (30) days after completion of the required improvements and their
acceptance by City, certain survey monuments and markers as specified on the final parcel map
shall be installed in accordance with the provisions of the State Subdivision Map Act and with
the ordinances of the City.
I. Subdivider recognizes that by approval of the final parcel map, City has conferred
substantial rights upon Subdivider, including the right to sell, lease, or finance lots within the
parcel map, and that Subdivider has taken the final acts necessary to subdivide the property
within the parcel map. 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 under this Agreement,
including, but not limited to, Subdivider's obligation to complete 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 lots and parcels within the parcel map 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 for Parcel Map No. 30726, Subdivider and City agree as follows:
1. Subdivider's Obligation to Construct Improvements.
Subdivider shall:
(a). Comply with all the requirements and conditions in the Approval Action and any
amendments thereto, and with provisions of the Subdivision Laws.
(b). Complete at Subdivider's own expense, all the public and private improvement
work on as required on the Tentative Map of Parcel Map No. 30726, and in the Approval Action,
all in conformance with approved Improvement Plans and the City standards, within twenty-
four (24) months of the date of final parcel map approval by the City Council, or by the date of
final City Building Division inspection and approval of any of the first two commercial buildings
constructed within Parcel Map No. 30726, on any parcel or parcels, whichever date is the
earliest.
(c). Furnish the necessary materials for completion of the public improvements in
conformity with the Improvement Plans and City standards.
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(d). Acquire and dedicate, or pay the cost of acquisition by City, of all rights-of-way,
easements and other interests in real property for construction or installation of the public
improvements, free and clear of all liens and encumbrances. The Subdivider's obligations with
regard to acquisition by City of off-site rights-of-way, easements and other interests in real
property shall be subject to a separate agreement between Subdivider and City. Subdivider
shall also be responsible for obtaining any public or private drainage easements or
authorizations to accommodate the development of the parcel map.
(e) Commence construction of the improvements and complete the improvements by
the deadline stated in paragraph 1(b) above, unless a time extension is granted by the City as
authorized in Section 19.
(f). Install all subdivision monuments, property corners, and other survey markers as
shown on the recorded parcel map and required by law within thirty days after the completion of
the public improvements and prior to their acceptance by the City.
2. Security
(a). Subdivider shall at all times guarantee Subdivider's performance of this
Agreement 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:
(i). $ 1,757,600.00 to assure faithful performance of this Agreement in regard
to said improvements which is 100% of the estimated cost of the public and private
improvements set forth in Exhibit "B"; and
(ii). $ 878,800.00 to secure payment to any contractor, subcontractor, persons
renting equipment, or furnishing labor materials for the improvements required to be constructed
or installed pursuant to the Agreement, which is 50% of the estimated cost of the improvements,
set forth in Exhibit "B" and
(iii). $ 175,760.00 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, which is 10% of the estimated cost of the
improvements set forth in Exhibit "B", which warranty security is to be provided to the City prior
to the City's release of any bonds or securities filed with this Agreement; and
(iv). $ 10,000.00 in cash, to assure the placement of permanent survey
monuments, lot corners, stakes and markers as shown on the final parcel map, to provide
centerline ties to the City Engineer, and to provide corner records to the County Surveyor, if
applicable, and to guarantee payment to the licensed surveyor or civil engineer of record for the
performance of these actions.
(b) The Improvement Securities required by this Agreement shall be kept on file with
the City Clerk. If surety bonds are used, they must be issued by a surety company currently
admitted to transact surety insurance business in California by the California Department of
Insurance, with a Best's Insurance Guide rating of no less than "A-" ("A-minus"). The terms of
any documents evidencing such Improvement Securities as set forth in this Section 2 or
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referenced on Page One (1) of this Agreement, are incorporated into this Agreement by this
reference as if set forth fully herein. If any Improvement Security is replaced by another type or
kind of approved Improvement Security, subject to the approval of the form thereof by the City
Attorney, the replacement shall be filed with City Clerk and, upon filing, shall be deemed to have
been made a part of and incorporated into this Agreement. Upon filing of a satisfactory
replacement Improvement Security with the City Clerk, the former Improvement Security shall
be released.
(c) Subdivider agrees to keep its Improvement Securities in full force and effect until
they are reduced or released by City. If any Improvement Security provided by Subdivider is
cancelled or terminated for any reason by the action of a surety, financial institution or other
party, it shall be the responsibility of the Subdivider to immediately, upon written notice from
City, provide a substitute Improvement Security which conforms to all the requirements of this
Section 2 in the same amount or amounts.
(d) Except as otherwise provided in this Agreement, any additions, changes,
alterations, or modifications of this Agreement or to the Plans, Specifications and Improvements
referred to herein, including any extension of time within which the work hereunder may be
completed, shall not release or exonerate any surety or sureties on the Improvement Security
given in connection with this Agreement.
3. Alterations to Improvement Plans; Modification of City Standards.
(a) Any changes, alterations or additions to the Plans or to the Improvements, not
exceeding 10% of the original estimated cost of the Improvements, which are mutually agreed
upon by City and Subdivider, shall not require Developer to increase any Improvement
Securities provided under this Agreement. In the event such changes, alterations, or additions
exceed 10% of the original estimated cost of the Improvements, Subdivider shall provide
additional Performance Security as required by Section 2 of this Agreement for 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. Subdivider shall also provide additional
Labor & Materials Security as required by Section 2 of this Agreement for 50 % of the total
estimated cost of the Improvements as changed, altered, or amended.
(b) Subdivider shall construct all Improvements in accordance with the City Standards
in effect as of the date of the Approval Action specified on Page One (1) hereof. The City
reserves the right to modify the Standards applicable to the subdivision created by the
recordation of the parcel map and this Agreement, when necessary to protect the public safety
or welfare or to 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, the
City may apply the Standards in effect at the time the extension is granted.
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4. Modification of Drainage Plan.
Subdivider agrees that if during the course of construction and installation of
Improvements it shall be determined by the City Engineer that revision of the drainage plan is
necessary in the public interest, it will undertake such design and construction changes as may
be reasonable and as are indicated by the City Engineer and approved by City. Said changes, if
any, shall be confined to the Property.
5. Inspections: Final Acceptance and Certification of Improvements.
(a) Subdivider shall at all times maintain proper facilities and safe access for
inspection of the Improvements by City inspectors and to the shops wherein any work is in
preparation.
(b) Upon completion of the Improvements covered in this Agreement, the Subdivider
shall request a final inspection by the City Engineer or his/her authorized representative.
Following receipt of such request, the City Engineer shall inspect the Improvements, make
certain determinations and take certain actions as follows:
(i) If the City Engineer, or his/her authorized representative, determines that
the Improvements requiring dedication to and acceptance by the City for public use (the
"Public Improvements") have been completed in accordance with this Agreement, then
the City Engineer shall certify the completion of the Public Improvements by placing a
resolution on the next most convenient City Council agenda seeking: (1) formal
acceptance of the Public Improvements; (2) release of the Improvement Securities; and
(3) authorization to file and record a Notice of Completion. Said determination by the City
Engineer and agendization of the acceptance and release shall not be unreasonably
withheld or delayed. Any certification and/or acceptance of the Public Improvements
shall not constitute a waiver of any defects by City.
(ii) For Improvements not requiring dedication to or acceptance by the City (the
"Private Improvements"), the City Engineer or his/her authorized representative shall
inspect such improvements, and/or shall have the discretion to accept a certification from
Subdivider's registered civil engineer stating that the Private Improvements have been
completed in accordance with the approved Plans, City Standards and the Tentative
Map. If the City Engineer, or his/her authorized representative, makes a finding, based
on his/her own inspection (and/or any certification submitted by Subdivider's registered
civil engineer) that the Private Improvements have been installed and constructed in
accordance with the approved Plans, City Standards and the Tentative Map, the City
Engineer shall recommend certification of the completion of the Private Improvements by
placing an item on the next most convenient City Council agenda requesting certification
and authorization to release the Improvement Securities. Said determination by the City
Engineer and agendization of the certification and release shall not be unreasonably
withheld or delayed.
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(c) Subdivider shall bear all costs of inspection and certification of the Improvements.
6. Release of Improvement Securities.
Except as otherwise provided in this Agreement, the Improvement Securities shall be
released only as specified in this Section:
(a) The Performance Security shall be fully released only upon the final completion
and certification of all Public and Private Improvements, and after acceptance of the Public
Improvements by the City Council. Partial releases may be permitted subject to the provisions
of Subsections (a)(i) and (a)(ii) hereof. Upon final completion of the Public and Private
Improvements under this Agreement, and after City Council acceptance/certification, the City
shall file a Notice of Completion in accordance with the California Civil Code.
(i) The City Engineer may release a portion of the Performance Security, as
work on the Improvements progresses, upon written application thereof by the
Subdivider; provided, however, that no such release shall be considered by City until the
value of the work remaining to be completed is twenty percent (20%) or less of the
estimate of the total amount of work to be done as shown in Exhibit "B". Upon approval of
a partial release or the reduction of Performance Security, the City shall not reduce such
Performance Security to an amount less than two hundred percent (200%) of the value of
the work remaining to be done. City and Subdivider agree that not more than two
requests for reduction or partial release of Performance Security shall be considered
between the start of construction and the completion and acceptance/certification of the
Improvements by the City.
(ii) In no event shall the City Engineer authorize a release of the Performance
Security which would reduce such security to an amount below that required to guarantee
the completion of the Improvements and any other obligations imposed upon Subdivider
by this Agreement.
(iii) No partial reduction or release of the Performance Security shall constitute
or be construed as the City's acceptance of any Improvements or related work. Such
partial reductions or releases (if any) will merely reflect that a certain portion of the
required work has been done.
(b) The Labor & Materials Security shall, ninety (90) days after the City's recordation
of the Notice of Completion described Subsection 6(a), be reduced to an amount equal to the
total claimed by all claimants for whom liens have been filed and of which notice has been given
to City, plus an amount reasonably determined by the City Engineer to be required to assure the
performance of any other obligations secured by the Labor & Materials Security and to cover
legal costs. The balance shall be released upon the settlement of all claims and obligations for
which the Labor & Materials Security was given. If no claims or liens have been filed and no
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notice has been given to City within said ninety (90) day period, then the Labor & Materials
Security shall be released in full.
(c) The Warranty Security shall not be released until after the expiration of the one-
year (1-year) warranty period and until any claims filed during the warranty period have been
settled. As provided in Section 10, below, the warranty period shall not commence until final
acceptance/certification of the Improvements and related work by the City Council.
(d) The Monumentation Security may be released in full by the City Engineer in
accordance with the terms of the separate monument agreement with the City, or if there is
none, upon submittal of the following:
(i) a written certification from the professional engineer or surveyor responsible
for setting the monuments stating that all the final monuments, boundary corners and lot
corners for the Subdivision have been set in accordance with the Professional Land
Surveyors Act and the Subdivision Map Act, and that the professional engineer or
surveyor has been paid in full by Subdivider for such services; and
(ii) centerline tie sheets prepared in a manner acceptable to the City Engineer
showing the locations of centerline monuments in existing public or private streets.
(e) Except as otherwise provided in the Subdivision Laws (including, without limitation,
Section 66499.19 of the California Government Code), the City may retain from any
Improvement Securities released an amount sufficient to cover costs and reasonable expenses
and fees actually incurred by the City, including reasonable attorneys' fees.
7. Injury to Public Improvements, Public Property or Public Utilities Facilities.
Subdivider shall replace or repair, or cause the repair or replacement of any and all public
or private improvements, public utilities facilities and survey or subdivision monuments which
are destroyed or damaged as a result of any work done by Subdivider or its agents under this
Agreement. Subdivider shall bear the entire cost of replacement or repairs of any and all public
or private improvements or utility property damaged or destroyed by reason of any work done by
Subdivider or its agents 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 the City or any public or private utility corporation or by any combination of such
owners. Any repair or replacement shall be made to the reasonable satisfaction, and subject to
the approval of the City Engineer and the owner of any such public or private improvement.
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.
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9. Notice of Breach/Default of Subdivider.
(a) Default of Subdivider shall include, but not be limited to:
(1) Subdivider's failure to timely complete construction of the Improvements;
(2) Subdivider's failure to timely cure any defect in the Improvements;
(3) Subdivider's failure to perform substantial construction work for a period of twenty (20)
calendar days after commencement of the work;
(4) 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;
(5) the commencement of a foreclosure action against the Property or a portion thereof,
or any conveyance in lieu or in avoidance of foreclosure;
(6) Subdivider's failure to keep the Improvement Securities in full force and effect;
(7) Subdivider's failure to notify the City of any sale, transfer or other disposition of the
Property to a purported new subdivider or developer;
(8) Subdivider's failure to maintain insurance; or
(9) the failure of Subdivider or Subdivider's contractors, subcontractors, agents or
employees to comply with any other terms and provisions of this Agreement.
(b) In the event of any such default, the City Engineer or the City Council may serve
written notice to Subdivider specifying in reasonable detail the nature of the default. Subdivider
shall have thirty (30) days from receipt of said notice to cure the default; provided that, if the
default is not reasonably susceptible to being cured within said thirty (30) days, Subdivider shall
have a reasonable period of time to cure the default so long as Subdivider commences to cure
the default within said thirty (30) days and diligently prosecutes the cure to completion.
(c) If following service of such written notice of default, Subdivider fails to cure or
commence curing the default to the satisfaction of City within the cure period specified in
Subsection 9(b), above, the City Engineer or the City Council may serve notice of Subdivider's
default upon Subdivider and where applicable Subdivider's surety, or the holder(s) of any other
Improvement Securities, in accordance with the notice provisions set forth in Section 21 of this
Agreement.
(d) In the event of service of the notice of default specified in Subsection 9(c), above,
Subdivider's surety shall have the duty to take over and complete the Improvements and related
work required under this Agreement; provided; however, that if the surety, within twenty (20)
days after the serving upon it of such notice of default, does not give the City written notice of its
intention to take over the construction of said Improvements or does not, within ten (10) days
after giving City notice of such election, commence to complete the Improvements, City may
take over the work and prosecute the Improvements 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 costs or damages occasioned City thereby;
and, in such event, City, without liability for so doing, may take possession of, and utilize in
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completing the Improvements, such materials, appliances, plant and other property belonging to
Subdivider as may be on the site of the work and necessary for the completion of same.
(e) The City reserves to itself all remedies available to it at law or in equity for
Subdivider's default under this Agreement. The City shall have the right, subject to this Section,
to draw upon or utilize the appropriate Improvement Securities to mitigate City's damages in
event of default by Subdivider. The right of City to draw upon or utilize the Improvement
Securities is additional to and not in lieu of any other remedy available to City. It is specifically
recognized that the estimated costs and amounts of Improvement Securities 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 actual cost of completing the required
Improvements. The sums provided by the Improvement Securities may be used by City for the
completion of the Improvements in accordance with the Plans.
(f) Failure of Subdivider to comply with the terms of this Agreement, including but not
limited to, construction of all the Improvements as set forth herein and as required by the
Tentative Map, shall constitute Subdivider's consent to: (1) the filing by City of a notice of
violation against all of the lots in the Subdivision; (2) a rescission by the City Council of the map
approval; (3) action by City to otherwise revert the Subdivision to acreage; and (4)withholding of
Building permits, utility connections and/or Certificates of Occupancy. The remedies provided
by this Subsection (f) are in addition to and not in lieu of any other remedies available to City at
law or in equity. Subdivider agrees that the choice of remedy or remedies for Subdivider's
default or breach shall be in the sole discretion of City.
(g) In the event that Subdivider fails to perform any obligation hereunder, Subdivider
agrees to pay all costs and expenses actually incurred by City in securing performances of such
obligations, including costs of suit and reasonable attorney's fees.
(h) The failure of City to take an enforcement action with respect to a default, or to
declare a default or breach, shall not be construed as a waiver of that default or breach, or of
any subsequent default or breach of Subdivider. Any failure by the City to enforce any provision
of this Agreement shall not be construed as a waiver of the right to compel enforcement of such
provision(s) and further shall not act to release any surety from its obligations under this
Agreement.
10. Warranty.
(a) For a period of one (1) year after final acceptance/certification by the City Council
of the Improvements, Subdivider shall guarantee or warranty the Improvements against any
defective work or labor done or defective materials furnished. If within the warranty period any
work relating to the Improvements or any part of thereof furnished, installed, constructed or
caused to be done, furnished, installed or constructed by Subdivider fails to fulfill any of the
requirements of this Agreement or the Plans, Subdivider shall without delay and without any
cost to City, commence to repair or replace or reconstruct any defective or otherwise
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unsatisfactory part or parts of the work or structure within thirty (30) days of receiving written
notice from City of the defect and diligently prosecute the repair or replacement work to
completion.
(b) Should Subdivider fail to act promptly or in accordance with the repair/replacement
requirements set forth herein, Subdivider hereby authorizes City, at City's option, to perform the
repair/replacement work twenty (20) days after mailing written notice to Subdivider and to
Subdivider's surety, and Subdivider agrees to pay City for the cost of such work.
(c) Should the City determine that an emergency or a threat to the public safety and
welfare exists from the condition of the Improvements which require repairs, replacements or
remedial measures to be made before Subdivider can be notified, City may, in its sole
discretion, make the necessary repairs or replacements 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, officers, employees, or contractors
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 Improvement Work; Risk of Loss.
Until such time as the Public Improvements are accepted by City, Subdivider shall be
responsible for and bear the risk of loss to any of the Public Improvements constructed
or installed and shall be responsible for the care, maintenance of and any damage to
such Public Improvements. Neither City, nor any of its agents, officers or employees
shall be liable or responsible for any accident, loss or damage, regardless of cause,
happening or occurring to the Public Improvements specified in this Agreement prior to
the completion and acceptance of the Public Improvements by City. All such risks shall
be the responsibility of and are hereby assumed by Subdivider. Subdivider is
responsible for and shall bear the risk of loss for all Private Improvements at all times.
13. 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 City
ordinances providing therefor, nor shall anything in this Agreement commit to any such
apportionment.
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14. Subdivider's Obligation to Warn Public During Construction.
Until final acceptance/certification of the Public Improvements pursuant to Section
5(b)(i), and final certification of construction of the Private Improvements pursuant to
Section 5(b)(ii), 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 conditions on or around
the work site.
15. Vesting of Ownership.
Upon acceptance of the Public Improvements and related work on behalf of the
City, and after recordation of the Notice of Completion, ownership of the Public
Improvements and any improvement constructed on any public street or alleys pursuant
to this Agreement shall vest in City.
16. Indemnity/Hold Harmless.
(a) Neither the City, nor any official, officer, employee, contractor or agent thereof,
shall be liable for any injury to persons or property occasioned by reason of the acts or
omissions of Subdivider, its agents, subcontractors or employees in the performance of this
Agreement. Subdivider hereby agrees to, and shall defend (with legal counsel reasonably
acceptable to the City) and hold harmless City, its elective and appointive boards, commissions
and officers, and its agents, contractors and employees from and against any and all claims,
demands, causes of action, damages, costs, expenses, actual attorneys' fees, consultant's fees,
expert's fees, losses or liability, in law or in equity, of every kind and nature whatsoever arising
out of or in connection with Subdivider's operations, or any subcontractor's operations, to be
performed under this Agreement for Subdivider's or subcontractor's tort negligence including
active or passive, or strict negligence, including but not limited to personal injury including, but
not limited to bodily injury, emotional injury, sickness or disease, or death to persons and/or
damage to property of anyone, including loss of use thereof, caused or alleged to be caused by
any act or omission of Subdivider or any subcontractor, or anyone directly or indirectly employed
by any of them or anyone for the full period of time allowed by law, with the exception of the sole
negligence or willful misconduct of City.
(b) Subdivider's indemnity, defense and hold harmless obligations under this Section
16 are not conditioned or dependent upon whether City, or its elective and appointive boards,
commissions and officers, or its agents, contractors and employees, prepared, supplied or
reviewed any Plans or related specifications in connection with the Improvements, or whether
City or Subdivider has insurance or other indemnification covering any of these matters.
(c) Subdivider's obligation to indemnify, hold harmless and defend City shall extend to
injuries to persons and damages to or alleged taking of property resulting from the design or
construction of the Improvements. City's acceptance and/or certification of the Improvements
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shall not constitute an assumption by City of any responsibility or liability for any damage or
alleged taking of property referenced herein. City shall not be responsible or liable for the
design or construction of the Improvements constructed or installed pursuant to the Plans,
unless the particular Improvement design was required by City over the written objection of
Subdivider, which objection stated that the Improvement design was potentially dangerous or
defective and set forth a safe and feasible alternative design. After City's
acceptance/certification of the Improvements, Subdivider shall remain obligated to correct or
eliminate all dangerous conditions caused by defects in design or construction; provided,
however, that the Subdivider shall not be responsible for routine maintenance. Subdivider
acknowledges and agrees that Subdivider shall be responsible and liable for the design and
construction of the Improvements and other work done pursuant to this Agreement, and except
as may be provided above, City shall not be liable for any acts or omissions in approving,
reviewing, checking, correcting or modifying any Plans, or in inspecting, reviewing or approving
any work or construction of Improvements. Subdivider's Improvement Securities shall not be
required to secure, and shall not secure, Subdivider's obligations under this Section 16.
17. Sale or Disposition of Subdivision; Assignment.
(a) Subdivider acknowledges and agrees that sale, transfer or other disposition of the
Property prior to completion of the Improvements required hereunder will not relieve Subdivider
from the obligations set forth in this Agreement, and Subdivider shall be required to notify City
sixty (60) day in advance of any sale or transfer of ownership of the Property or any proposed
assignment of this Agreement. If Subdivider sells or otherwise transfers the Property to any
other person or entity prior to final completion of the Improvements, or wishes to assign this
Agreement, Subdivider may request a novation of this Agreement and a substitution of
Improvement Securities by the new owner or proposed assignee (hereinafter collectively for
purposes of this Section, "Successor"). Subdivider shall be required to provide any
documentation reasonably required by City to determine the appropriateness of any proposed
Successor.
(b) Any proposed Successor must demonstrate to the City its ability to perform and
complete the obligations of Subdivider under this Agreement, as determined by objective
standards of financial capability, creditworthiness and experience required for such
performance, and the City shall have the right to compel the Successor to disclose all
documents, information and other material which, in City's sole reasonable discretion, may
establish or tend to establish that the proposed Successor meets the standards specified herein.
Following approval by City and full execution of a novation (or other such release or assignment
and assumption agreement(s) entered into by Subdivider, Successor and City), posting of
satisfactory replacement Improvement Securities and submission of required insurance by
Successor, City shall immediately release the Improvement Securities posted by Subdivider in
accordance with the provisions of such novation (or other such release or assignment and
assumption agreement entered into by Subdivider, Successor and City), and Subdivider shall
have no further obligations under this Agreement except as otherwise provided in the novation
Page 13 of 23
(or other such release or assignment and assumption agreement entered into by Subdivider,
Successor and City).
18. Time is of the essence in this Agreement.
19. Time for Completion of Improvements: Extensions.
(a) Subdivider shall commence and diligently prosecute to completion construction of
all the Improvements required by this Agreement. The time for completion of the
Improvements as specified in Section 1(b) of this Agreement may be extended as permitted by
City ordinance. The City Manager may grant an extension of time for such period as may be in
the public interest upon the showing of the Subdivider of good cause. Any such extension
granted shall be subject to the limitations and conditions set forth in Sections 19(b) and (c),
below, and shall be made by a writing executed by the in a form as approved by the City
Attorney.
(b) 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 Improvement
Securities given for this Agreement. However, City reserves the right to require as part of any
extension amendment a written assurance from the surety acceptable to the City Attorney that
the Improvement Securities required by Section 2 of this Agreement shall remain enforceable
throughout the term of any extension.
(c) The City Manager shall be the sole and final judge as to whether or not good
cause has been shown to entitle Subdivider to an extension. In addition, the time for completion
of the Improvements shall be extended for any delay resulting from an act of City, or from an act
of God, which Subdivider could not have reasonably foreseen, or by storm or inclement weather
which prevents the conducting of work, or by strikes, boycotts, similar actions by employees or
labor organizations, which prevent the conducting of work, and which were not caused by or
contributed to by Subdivider, provided that Subdivider provides City with written notice of the
delaying event within fifteen (15) days of the commencement of the delay. In the event of such
delaying event, Subdivider shall use all reasonable efforts to remedy same and resume
completion of the Improvements as promptly as practicable.
(d) As a condition of granting an extension of time to complete the Improvements
required by this Agreement, the City Manager may require Subdivider to furnish new or
additional Improvement Securities 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.
20. 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.
Page 14 of 23
21. Notice.
All notices required by or provided for under this Agreement shall be in writing and
delivered in person or sent by certified or registered 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 City:
Notice to City: City of Cathedral City
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
Attn: City Manager
With a Copy to: Eric S. Vail, City Attorney
Burke, Williams & Sorensen, LLP
1600 Iowa Ave, Suite 250
Riverside, CA 92507
Notice to Subdivider: 63 Maxx Development Cathedral City, LLC
1712 Pioneer Avenue, Suite 500
Cheyenne WY 82001
With a Copy To:
Notice to surety:
22. Severability.
The provisions of this Agreement may be severed from the remainder of this
Agreement in accordance with the provisions of this Section 22 and applicable law. 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 in writing by the mutual consent of the Parties.
Page 15 of 23
23. 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.
24. Insurance.
(a) Subdivider shall, at all times upon commencement of the construction of the
improvements and during the construction of the Improvements, obtain, carry, maintain, and
keep in full force and effect, at its sole cost and expense, policies of insurance of the types and
in at least the minimum amounts described below:
(i) Commercial General Liability policy with a minimum combined single limit of
One Million Dollars ($1,000,000) for each occurrence and Two Million Dollars
($2,000,000) in the aggregate for bodily injury, death, personal injury and property
damage arising out of or in connection with the activities of the Subdivider and its
contractors and subcontractors in performance of the work under this Agreement.
Coverage shall be at least as broad as Insurance Services Office Commercial General
Liability coverage (Occurrence Form CG 0001) and shall, in addition to the other
coverages specified in this subsection, include coverage for independent contractors,
ongoing operations, products and completed operations, contractual liability and personal
and advertising injury.
(ii) Commercial Vehicle/Automotive Liability policy covering personal injury and
property damage, with minimum limits of One Million Dollars ($1,000,000) per
occurrence, combined single limit, covering any vehicle utilized by Subdivider, its officers,
agents, employees, subcontractors or independent contractors in performing the work
required by this Agreement.
(iii) Workers' Compensation and Employer's Liability policy for all Subdivider's
employees, with Workers' Compensation limits as required by State law and Employer's
Liability coverage of $1,000,000 per accident for bodily injury or disease. In case any
work is sublet, Subdivider shall require any contractor or subcontractor similarly to
provide Workers' Compensation and Employer's Liability Insurance for all contractor's or
subcontractor's employees, unless such employees are covered by the protection
afforded by Subdivider.
(1) In case any class of employees engaged in work under this Agreement at
the work site(s) is not protected under any Workers' Compensation law,
Subdivider shall provide and shall cause each contractor or subcontractor to
provide, adequate insurance for the protection of employees not otherwise
protected.
Page 16 of 23
(2) Subdivider hereby indemnifies City for any damages or claims resulting
from failure of either Subdivider or any contractor of subcontractor to take out or
maintain such liability or Workers' Compensation insurance.
(b) Insurer Rating; Acceptability. Except as set forth otherwise herein, the policies
required by this Section shall be issued by a California-admitted insurer with a rating of at least
a B+;VII in the latest edition of Best's Insurance Guide. A Commercial General Liability policy
issued by an insurer that is on the California Department of Insurance's List of Approved
Surplus Line Insurers ("LASLI") will be acceptable, if no coverage from an admitted insurer can
be obtained by Subdivider, and further provided that such insurer maintains a Best's rating of at
least "A-; X" and remains on the LASLI during the term hereof. Workers' Compensation
coverage issued by the State Compensation Insurance Fund shall be acceptable if no other
coverage can be obtained by Subdivider, and further provided such insurer remains admitted in
California and is otherwise financially acceptable to City.
(c) Deductibles. Any deductibles or self-insured retentions must be declared in writing
by Subdivider to City and subsequently approved by City prior to its execution of this Agreement
and prior to commencement of any work hereunder. At City's option, Subdivider shall either
reduce or eliminate the deductibles or self-insured retentions with respect to City, or Subdivider
shall procure a bond guaranteeing payment of losses and expenses.
(d) Certificates and Endorsements Verification. Subdivider shall submit to the City
original certificates of insurance and endorsements evidencing the coverages required by this
Section. The certificates and endorsements for each insurance policy shall be signed by a
person authorized by that insurer to bind coverage on its behalf. All certificates and
endorsements must be approved by City Attorney prior to the City's issuance of any permits for
work on or in Parcel Map No. 30726. The City reserves the right to require complete, certified
copies of all required insurance policies at any time and/or to require Subdivider to shall provide
reports or status updates to evidence compliance of its contractors and subcontractors with the
provisions of this Section.
(e) Required Endorsements.
(i) The Commercial General Liability and Commercial Vehicle/Automotive
Liability policies are to contain or be endorsed to contain the following provisions:
(1) Additional Insureds. The City of Cathedral City, its officials, officers,
employees, agents and independent contractors shall be named as additional
insured with respect to liability arising out of automobiles owned, leased, hired or
borrowed by or on behalf of the Subdivider; and with respect to liability arising out
of work or operations performed by or on behalf of the Subdivider including
materials, parts or equipment furnished in connection with such work or
operations.
(2) Primary Insurance. For any claims related to this project, the Subdivider's
insurance coverage shall be primary insurance as respects the City of Cathedral
City, its officials, officers, employees, agents and independent contractors. Any
Page 17 of 23
insurance or self-insurance maintained by the City of Cathedral City, its officials,
officers, employees, agents and independent contractors shall be excess of the
Subdivider's insurance and shall not contribute with it. This endorsement is not
applicable to the Commercial Vehicle/Automotive Liability Policy.
(3) Waiver of Subrogation. Endorsements waiving all rights of subrogation
against the City of Cathedral City, its officials, officers, employees, agents and
independent contractors shall be provided.
(ii) The Workers' Compensation policy shall be endorsed to waive all rights of
subrogation against the City of Cathedral City, its officials, officers, employees, agents
and independent contractors.
(f) Other Insurance Requirements. All policies required under this Agreement shall
contain provisions stating that such policies cannot be canceled or reduced except on at least
thirty (30) days prior written notice to Subdivider (ten (10) days' notice for cancellation due to
non-payment). Subdivider further agrees to: (1) provide to City copies of any notices relating to
cancellation or reduction of insurance within two (2) days of receipt; and (2) cause all certificates
of insurance to include language indicating that the issuers or producers of such policies will
endeavor to provide copies of any such notices directly to City.
(g) Commencement of Work. Subdivider shall not be issued permits to commence
work under this Agreement until Subdivider has obtained all insurance required pursuant to this
Section, and such insurance has been approved by City; nor shall Subdivider allow any
contractor or subcontractor to commence work on the Improvements until all similar insurance
required of the contractor or subcontractor has been obtained. Certificates, endorsements, and
where applicable, full copies of policies shall be maintained on file with the City Clerk.
(h) Higher Limits. If Subdivider maintains higher limits than the minimums specified in
this Section 24, the City requires and shall be entitled to coverage for the higher limits
maintained by Subdivider. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the City.
25. Attorneys' Fees.
In the event any action at law or in equity is brought to enforce the terms of this
Agreement, the prevailing Party shall be entitled to litigation costs and reasonable
attorneys' fees.
26. Incorporation of Recitals.
The Recitals to this Agreement are hereby incorporated into the terms of this
Agreement.
Page 18 of 23
27. Entire Agreement.
This Agreement constitutes the entire agreement of the Parties and supersedes
any prior written or oral agreements between them with respect to the subject matter
hereof. All modifications, amendments, or waivers of the terms of this Agreement must
be in writing and signed by the appropriate representatives of the Parties.
28. Governing Law; Venue.
This Agreement shall be governed by and interpreted in accordance with the laws
of the State of California. In the event that suit shall be brought by either Party to this
contract, the Parties agree that venue shall be exclusively vested in the State courts of
the County of Riverside, California or where appropriate, in the United States District
Court, Southern District of California, Riverside, California.
29. Runs with the Land; Recordation.
(a) The Parties agree that the terms and provisions set forth in this Agreement shall
be deemed provisions, terms and/or covenants running with the Property in accordance with
applicable law, including without limitation, California Civil Code section 1468, and shall pass to
and be binding upon the heirs, successors and assigns of the Parties to this Agreement, and on
any successor owner of the Property.
(b) The provisions of Subsection 29(a) notwithstanding, Subdivider shall remain jointly
and severally liable with its heirs, successors, assigns or successor owners of the Property for
the responsibilities and liabilities imposed by this Agreement unless a novation agreement is
executed in accordance with the provisions of Section 17 of this Agreement.
(c) Upon execution, this Agreement shall be recorded in the Official Records of
Riverside County, and by such recordation, it is the intention of the Parties to give notice to and
bind their successors, heirs and assigns hereto.
30. Authority of Executing Parties.
Each person executing this Agreement on behalf of a Party represents and
warrants that such person is duly and validly authorized to do so all behalf of the entity it
purports to bind and that he/she is authorized to enter into contracts on behalf of
Subdivider. The undersigned, on behalf of Subdivider, binds Subdivider, its partners,
successors, executors, administrators, and assigns with respect to the terms and
provisions of this Agreement.
[END OF THIS PAGE; SIGNATURES ON FOLLOWING PAGE]
Page 19 of 23
IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto on the date above
first written.
Subdivider: City:
63 MARX DEVELOPMENT CATHEDRAL CITY, CITY OF CATHEDRAL CITY
LLC, a Wyoming Limited Liability Company A Munici• -1 o •oration,
David L. Browning Stanley E. Henry, . 'or
ATTEST:
fiSod
Gary F. owe I, 7 ity Clerk
See Attached
NOTARIAL CERTIFICATE APPROV • .S • F: -M:
City Attorney
APPRO ED S T C NTENT:
Jo . Corella, City ngineer
AE"OVED:
(2p, c�?
Charles P. McClendon
City Manager
(Proper Notarization of Subdivider's Signature is required and shall be attached)
Page 20 of 23
ACKNOWLEDGMENT
A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the I
document to which this certificate is attached,and not the 1
truthfulness,accuracy,or validity of that document.
State of California
} County of 1.— cm�r.\ ,
,c)CI me, K C-,cs� NUS-,v ---A ��v,
On NC�.��mbe��s, (here insert name and title of the officer)
personally appeared '1 c:), /,cJ '- --P)\--cm� -C\, yThci
1
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
+ K.GEORGE
,,. NotaryPublic-California
WITNESS my hand and official seal. i` 11 Los Angeles County D
qr`/ Commission#2184722
,� My Comm.Expires Mar 23,2021
Signature 1 (Seal)
I I:
I
EXHIBIT "A"
Legal Description of Real Property Subject to this Agreement
Tentative Parcel Map No. 30726, comprised of the following real property in the City of
Cathedral City, County of Riverside, State of California:
Parcel 1:
That portion of Government Lot 65, in Section 34, Township 3 South, Range 5 East, San
Bernardino Meridian, according to United States Survey thereof, lying Northeasterly of the
Northeasterly line of Date Palm Drive, conveyed to the County of Riverside by deed recorded
April 22, 1964 as Instrument No. 49595, of Official Records.
Excepting therefrom that portion conveyed to Southern California Edison Company in deed
recorded March 25, 1971, as Instrument No. 49934, of Official Records.
Also excepting therefrom all oil, gas and other mineral deposits, together with the right to
prospect for, mine, and remove the same, according to the provisions of the Act of Congress
approved June 1, 1938 (52 Stat. 609), as reserved in the Patent recorded June 20, 1960, as
Instrument No. 54491, of Patents, records of Riverside County.
(APN 659-230-039)
Parcel 2:
Those portions of Government Lots 65, in Section 34, Township 3 South, Range 5 East, San
Bernardino Meridian, according to United States Survey thereof, lying Southeasterly of the
Southeasterly line of Date Palm Drive, conveyed to the County of Riverside by deeds recorded
April 14, 1964 as Instrument No. 46109 and April 22, 1964 as Instrument No. 49595, both of
Official Records.
Excepting therefrom all oil, gas and other mineral deposits, together with the right to prospect
for, mine, and remove the same, according to the provisions of the Act of Congress approved
June 1, 1938 (52 Stat. 609), as reserved in the Patent recorded December 14, 1959, as
Instrument No. 105806, June 20, 1960, as Instrument No. 54491, and March 23, 1964 as
Instrument No. 35924, all of Official Records of Riverside County.
(APN 659-230-004)
Parcel 3:
Those portions of Government Lots 66 and 67, in Section 34, Township 3 South, Range 5 East,
San Bernardino Meridian, according to United States Survey thereof, lying Northwesterly of the
Northwesterly line of Date Palm Drive, conveyed to the County of Riverside by deeds recorded
April 14, 1964 as Instrument No. 46109 and April 22, 1964 as Instrument No. 49596, both of
Official Records.
Excepting therefrom that portion lying Northeasterly of the Southwesterly line of Varner Road.
Also excepting therefrom all oil, gas and other mineral deposits, together with the right to
prospect for, mine, and remove the same, according to the provisions of the Act of Congress
Page 21 of 23
approved June 1, 1938 (52 Stat. 609), as reserved in the United States Patents recorded
December 14, 1959 as Instrument No. 105806, June 20, 1960, as Instrument No. 54491, and
March 23, 1964 as Instrument No. 35924, all of Official Records.
(APN 659-230-003)
Parcel 4:
Government Lot 67, in Section 34, Township 3 South, Range 5 East, San Bernardino Meridian,
according to United States Survey thereof.
Excepting therefrom that portion lying within Date Palm Drive, conveyed to the County of
Riverside by deed recorded April 22, 1964 as Instrument No. 49596, of Official Records.
Also excepting therefrom that portion lying within Varner Road.
Also excepting therefrom that portion lying Northwesterly of Date Palm Drive.
Also excepting therefrom all oil, gas and other mineral deposits, together with the right to
prospect for, mine, and remove the same, according to the provisions of the Act of Congress
approved June 1, 1938 (52 Stat. 609), as reserved in the Patent recorded December 14, 1959,
as Instrument No. 105806, of Patents, records of Riverside County.
(APN 659-230-009 and -010)
Parcel 5:
The Southeast quarter of the Southeast quarter of the Southeast quarter of Section 33,
Township 3 South, Range 5 East, San Bernardino Meridian.
(said land is created and described as adjusted Parcel B in that certain Certificate of
Compliance recorded November 1, 2002, as Instrument No. 2002-628165, of Official Records.)
(APN 660-390-024)
(the above legal descriptions were taken from the Preliminary Report of Orange Coast Title
Company, Order No. 140-1861364-66, dated June 16, 2017)
Page 22 of 23
EXHIBIT "B"
Summary of Estimated Costs of Improvements for PM 30726
The following cost summary is based upon the attached Improvement Cost estimate worksheets
prepared by David K. Rice dated June 14, 2017, and on the monumentation estimate submitted
by David Rice of Coachella Valley Engineers, dated August 7, 2017, both on file in the office of
the City Engineer.
1. Off-site (public) improvements:
a. Street improvements: $ 623,850.00
b. Storm drain (inlets, pipe): 8,920.00
c. Signing, striping: 7,642.00
d. Water improvements: 68,822.00
e. Sewer improvements: 65,300.00
Subtotal: $ 774,534.00
Contingencies @ 20%: 154,906.00
Total: $ 929,440.00
Rounded: $ 929,400.00
2. On-site (private) improvements:
a. Grading: $ 462,909.00
b. Storm drain (rip rap, basins, drywells): 215,040.00
c. Landscaping, irrigation: 12,250.00
Subtotal: $ 690,199.00
Contingencies @ 20%: 138,040.00
Total: $ 828,239.00
Rounded: $ 828,200.00
Grand Total—rounded: $1,757,600.00
Surveyor's Estimate for Monumentation: $ 10,000.00
IMPROVEMENT SECURITY SUMMARY:
FAITHFUL PERFORMANCE BOND: @100% $ 1,757,600
PAYMENT BOND (LABOR & MATERIALS):@ 50% $ 878,800
WARRANTY BOND: @10% $ 175,760*
MONUMENT CASH SECURITY: $ 10,000
*Warranty bond to be posted upon completion of improvements
Attachments: Estimate Worksheets ( 8 pages)
Surveyor's Estimate (1 page)
Page 23 of 23
Bond No.: 0730414
Bond Fee: $33,394.00/2 Years
FAITHFUL PERFORMANCE BOND SUBDIVISION
IMPROVEMENT AGREEMENT
PARCEL MAP NO. 30726
(California Government Code § 66499.1)
WHEREAS, the City Council of the City of Cathedral City, State of California, and
63 Maxx Development Cathedral City, LLC, a Wyoming Limited Liability Company,
(hereinafter designated as "Principal"), have entered into an agreement pursuant to California
Government Code section 66462 whereby Principal agrees to install and complete certain
designated public improvements, which said agreement, dated /Ve.EM C3
2017, and identified as "Improvement Agreement, Parcel Map No. 30726" (hereinafter
designated as "Agreement"), is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of said Agreement, to furnish a
good and sufficient bond for the faithful performance of said Agreement; and
NOW, THEREFORE, we, the Principal and
International Fidelity Insurance Company , (hereinafter designated as "Surety"),
a corporation organized and doing business under and by virtue of the laws of California and
duly licensed to transact surety business in the State of California, are held firmly bound unto
the City of Cathedral City (hereinafter designated as "City") in the penal sum of One Million
Seven Hundred Fifty Seven Thousand Six Hundred Dollars ($ 1,757,600.00), lawful
money of the United States, for the payment of which sum well and truly to be made, we bind
ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by
these presents.
The condition of this obligation is such that if the above bounded Principal, his or its
heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide
by, and well and truly keep and perform the covenants, conditions and provisions in said
Agreement and any alteration thereof made as therein provided, on his or their part, to be
kept and performed at the time and in the manner therein specified, and in all respects
according to their true intent and meaning, and shall indemnify and save harmless the City,
its officers, agents and employees, as therein stipulated, then this obligation shall become
null and void; otherwise it shall be and remain in full force and effect.
As part of the obligation secured hereby and in addition to the face amount specified
therefor, there shall be included costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all
to be taxed as costs and included in any judgment rendered.
Surety hereby stipulates and agrees that no change, extension of time, alteration or
addition to the terms of said Agreement or to the work to be performed thereunder or the
specifications accompanying the same shall in any manner affect its obligations on this bond,
1
Bond No.: 0730414
Bond Fee: $33,394.00/2 Years
and it does hereby waive notice of any such change, extension of time, alteration or addition
to the terms of said Agreement or to the work or to the specifications.
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and
Surety named herein, on October 30 , 20 17
APPROVED AS TO CONTENT: PRINCIPAL:
City of a edral ity 63 Maxx Development Cathedral City, LLC
s ./LL4 A Wyoming Limited Liability Company
harles P. McClendon By: 4,00---
City Manager
qN JkM lJ E• 14 Fl.vs
APPROVED AS TO FOR •
City of Cathedr C ty
By
r S. ,,,1 City Attorney
APPROVED: SURETY:
City of Cathedral City
International Fidelity Insurance Company
By _ Surety • •any
City gineer
'rte I 011 14a r:
Signat re of A ut on -d R-
•` C0 •. .
Janin- Monroe, Attorney-In-Fact •
Printe• narrne !'I • . `'
19800 MacArthur Blvd Ste. 1250, Irivne, CA 9261'2:.
Surety Address and City
949-252-4400
Contact Phone and E-mail
Principal and Surety signatures must be notarized and Acknowledgment of Authorized
Representative/Attorney in Fact must be attached for both Principal and Surety. Three (3)
originals must be executed.
2
CALIFORNIA ALL- PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity
of the individual who signed the document to which this certificate is attached,
and not the truthfulness, accuracy, or validity of that document.
State of California }
County of V\vtlicAok,Q }
On QCt,• .4)\9_t Ax before me, t\wit_, �'1. X1.14 k U ,
( ere insert name ao r
personally appeared %u \\osn:i.‘ V . \\05\G.A.S
who proved to me on the basis of satisfactory evidence to be the person(s) whose
name( isIste subscribed to the within instrument and acknowledged to me that
heiskalsay executed the same in hisikaiiheir authorized capacity(), and that by
hiss signatures on the instrument the person(3), 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.
�,. SELENE VALDEZ
WI NESS my hand and official seal. . ` Commission#r 2082501
Notary Public-California
Mme',',
-2.144/ Riverside County
NI/Comm.Exelres Oct 18`2018
Notary •ublict nature (Notary Public Seal)
ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM
This form complies with current California statutes regarding notary wording and
DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknowledgments
from other states may be completed for documents being sent to that state so long
as the wording does not require the California notary to violate California notary
Y
1 I 4)\%VittVffrrtl.%t4 S4"40‘ law.
(Title or descnption of attached document) • State and County information must be the State and County where the document
` gl1 kin J NJ. . V signer(s)personally appeared before the notary public for acknowledgment.
`"` • Date of notarization must be the date that the signer(s)personally appeared which
(Title or description of attaolted docuMent continued) must also be the same date the acknowledgment is completed.
• The notary public must print his or her name as it appears within his or her
Number of Pages 1• Document Date'O.'j X\ commission followed by a comma and then your title(notary public).
• Print the name(s) of document signer(s) who personally appear at the time of
notarization.
CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e.
he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this
❑ Individual (s) information may lead to rejection of document recording.
❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible.
Impression must not cover text or lines. If seal impression smudges,re-seal if a
(Title) sufficient area permits,otherwise complete a different acknowledgment form.
I=1 Partner(s) • Signature of the notary public must match the signature on file with the office of
the county clerk.
❑ Attorney-in-Fact . Additional information is not required but could help to ensure this
❑ Trustee(s) acknowledgment is not misused or attached to a different document.
.t Other�tu e, Indicate title or type of attached document,number of pages and date.
Indicate the capacity claimed by the signer. If the claimed capacity is a
corporate officer,indicate the title(i.e.CEO,CFO,Secretary).
• Securely attach this document to the signed document with a staple.
ALL- PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate
is attached, and not the truthfulness, accuracy,or validity of that document.
State of California }
County of Orange }
Notary Public M. Barreras, Nota
On WI 3 0 NI/ before me,
(Here insert name and title of the officer)
personally appeared Janina Monroe
who proved to me on the basis of satisfactory evidence to be the person*whose
name(s) is/ it subscribed to the within instrument and acknowledged to me that
Stsa/she/ty executed the same in kis/her/their authorized capacity(ie )c and that by
iaas(her/tbak signature* on the instrument the person*, or the entity upon behalf of
which the personi 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.
M.BARRERAS
4, . Commission#2048208
�_
WITNESS my hand and official seal. _ !t c Notary Public-California z
= Orange County
Comm.Expires Nov 5,2017
Al AI) A• .1 A .f
otary ' 7ic gnature — (Notary Public Seal)
• _ •
ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM
This form complies with current California statutes regarding notary wording and,
DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknohsedgentsfrom
other states may be completed for documents being sent to that state so long as the
wording does not require the California notary to violate California notary law.
(Title or description of attached document) • State and County information must be the State and County where the document
signer(s)personally appeared before the notary public for acknowledgment.
• Date of notarization must be the date that the signer(s)personally appeared which
(Title or description of attached document continued) must also be the same date the acknowledgment is completed.
• The notary public must print his or her name as it appears within his or her
Number of Pages Document Date commission followed by a comma and then your title(notary public).
• Print the name(s) of document signer(s) who personally appear at the time of
notarization.
CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e.
he/she/they is/are)or circling the correct forms.Failure to correctly indicate this
❑ Individual(s) information may lead to rejection of document recording.
❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible.
Impression must not cover text or lines. If seal impression smudges,re-seal if a
(Title) sufficient area permits,otherwise complete a different acknowledgment fonn.
• Signature of the notary public must match the signature on file with the office of
❑ Partner(s) the county clerk.
R Attorney-in-Fact + Additional information is not required but could help to ensure this
❑ Trustee(s) acknowledgment is not misused or attached to a different document.
¢ Indicate title or type of attached document,number of pages and date.
Other
❑ • Indicate the capacity claimed by the signer. If the claimed capacity is a
corporate officer,indicate the title(i.e.CEO,CFO,Secretary).
7015 Version a,., v Notar)Classes curl.800.87:;-9bb5 • Securely attach this document to the signed document with a staple.
'kip
INTERNATIONAL FIDELITY INSURANCE COMPANY I
ALLEGHENY CASUALTY COMPANY
ONE NEWARK CENTER, 20TH FLOOR NEWARK,:NEW JERSEY 07102-5207
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY,a corporation organized and existing under
the laws of the State of New Jersey, and ALLEGHENY CASUALTY COMPANY a corporation organized and existing under the laws of the State of
New Jersey,having their principal office in the City of Newark,New Jersey,do hereby constitute and appoint
JANINA MONROE, PAUL BOUCHER, MICHELLE HAASE
Irvine, CA.
their true and lawful attorneys)-in-fact to execute,seal and deliver for and on its behalf as surety,any and all bonds and undertakings,contracts of indemnity
and other writings obligatory in the nature thereof, which are or may be allowed,required or permitted by law,statute,rule,regulation contract or otherwise
and the execution of such instruments) in pursuance of these presents,shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE`
COMPANY and ALLEGHENY CASUALTY COMPANY, as fully and amply, to all intents and purposes,as if the same had been duly executed and
acknowledged by their regularly elected officers at their principal offices. by authority By
COMPANY and ALLEGHENY CASUAL lYCOMPArevoked.,i granted under and by authority of the followingsresolu on adopted by�t FIDELITY oP f D Iecto sE
of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 20th day of July,2010 and by the Board of Directors of ALLEGHENY
CASUALTY COMPANY at a meeting duly held on the 10th day of July,2015:
"RESOLVED,that (1)the Chief Executive Officer,President,Executive Vice President,Vice President or Secretary of the Corporation shall have the power to
appoint,and to revoke the appointments of,Attorneys-in-Fact or agents with power and authority as defined or limited in their respective,powers of attorney,
and to execute on behalf of the Corporation and affix the Corporation's seal thereto,bonds,undertakings, recognizances, contracts of indemnity and other
written obligations in the nature thereof or related thereto; and (2)any such Officers of the Corporation may appoint and revoke the appointments of
joint-control'custodians,agents for acceptance of process and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation;
and (3)the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification
given for the execution of any bond,undertaking,recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto,
such signature and seals when soused whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer
and the original seal of the Corporation,to be valid and binding upon the,Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY have each executed and
attested these presents on this 31st day of December,2016.
tiLITY 1i STATE OF NEW JERSEY y GASUgLTy
4,� " County of Essex / c'a�
pelf
SEAL 4 1936*
George R.James •
/ iii 1, Executive Vice President(International Fidelity 4' , ,,„s�`y/ ;
Insurance Company)and Vice President :
(Allegheny Casualty Company)
On this 31st day of December 2016,before me came the individual who executed the preceding instrument,to me personally known,and,being by me duly
sworn, said he is the therein described and authorized officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY
COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies;that the said Corporate Seals and his signature were
duly affixed',by order of the Boards of Directors of said Companies.
IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal,
��,,,,,,iut,,,, at the City of Newark,New Jersey the day and year first above written.
�,.. �H1t C 44,,,
,a` G, Abt,,,6,
:.( jeç
Y ":
T. N A NOTARY PUBLIC OF NEW JERSEY
�•'•it,;',,,../?f,-'•'a:�'9'.i�: My Commission Expires April 16,2019•F NEW .•
'•�•'■��a,,,,,,n```�� CERTIFICATION
I,the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY ani ALLEGHENY CASUALTY COMPANY do hereby certify that I have
compared the foregoing copy of the Power of Attorney and affidavit,and the copy",)f the Sections of the By-Laws of said Companies as set forth in said
Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof,and of the whole
of the said originals,and that the said Power of Attorney has not been revoked-and is now in,fuli force and effect
IN TESTIMONY WHEREOF, I have hereunto set my hand this day of OAT 3 0 2017
449
°: -. fill
ARI1> BRANCO Asslstaflt Secretary
V I
R'
�� .n>a,.,�c 311...,.J�. . .• e. , e..,>... . v, An .d� e ,f.,•4.,•,-..r�...-.4.....„,:.,..-."...,:,,,,9,2; ,...•....,.•„.•:.., :. .✓ n '..::::•:... . . .. , , ..,3:. ..,. .._ ;.:,y,•,..•
,.. .. i�
Bond No.: 0730414
Bond Fee: Included with Performance
LABOR AND MATERIAL BOND
SUBDIVISION IMPROVEMENT AGREEMENT
PARCEL MAP NO. 30726
(California Government Code § 66499.2)
WHEREAS, the City Council of the City of Cathedral City, State of California, and
63 Maxx Development Cathedral City, LLC, a Wyoming Limited Liability Company,
(hereinafter designated as "Principal") have entered into an agreement whereby the Principal
agrees to install and complete certain designated public and private improvements, which
agreement, dated t t o'EM Qe , 20 i and identified as "Improvement
Agreement, Parcel Map No. 30726" (hereinafter d signated as "Agreement"), is hereby
referred to and made a part hereof; and
WHEREAS, under the terms of the Agreement, the Principal is required before
entering upon the performance of the work, to file a good and sufficient payment bond with
the City of Cathedral City (hereinafter designated as "City") to secure the claims to which
reference is made in Title 3, (commencing with Section 9000) of Part 6 of Division 4 of the
Civil Code.
NOW, THEREFORE, the Principal and the undersigned as corporate surety
(hereinafter designated as "Surety"), are held firmly bound unto the City and all contractors,
subcontractors, laborers, material suppliers, and other persons employed in the performance
of the Agreement and referred to in Title 3 (commencing with Section 9000) of Part 6 of
Division 4 of the Civil Code in the sum of Eight Hundred Seventy Eight Thousand Eight
Hundred Dollars ($ 878.800.00), for materials furnished or labor thereon of any kind, or for
amounts due under the Unemployment Insurance Act with respect to this work or labor, that
the Surety will pay the same in an amount not exceeding the amount hereinabove set forth,
and also in case suit is brought upon this bond, will pay, in addition to the face amount
thereof, costs and reasonable expenses and fees, including reasonable attorney's fees,
incurred by the City in successfully enforcing this obligation, to be awarded and fixed by the
court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of
any and all persons, companies, and corporations entitled to file claims under Title 3
(commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right
of action to them or their assigns in any suit brought upon this bond.
Should the condition of this bond be fully performed, then this obligation shall become
null and void, otherwise it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration,
or addition to the terms of the Agreement or the specifications accompanying the same shall
3
Bond No.: 0730414
Bond Fee: Included with Performance
in any manner affect its obligations on this bond, and it does hereby waive notice of any such
change, extension, alteration or addition.
IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety
named herein, on October 30 , 20 17
APPROVED AS TO CONTENT: PRINCIPAL:
City of Ca dral City 63 Maxx Development Cathedral City, LLC
/ �� }`j A Wyoming Limited Liability Company
By 1L- t[ -l' ~-
Charles P. McClendon By: l
City Manager
APPROVED AS TO FORM:
City of Cathedral City
By
City Attorney SURETY:
Int-a--tional Fidelity Insurance Company
APPROVED: Sur-ty Co •-
City of Cathedral City 1
By / OP Sign. ure o Authorized Representative
City : • neer
Jan. a Monroe, Attorney-In-Fact
Prin -Fame
19800 MacArthur Blvd Ste. 1250, Irivne, CA 92612
Surety Address and City
949-252-4400
Contact Phone and E-mail
Principal and Surety signatures must be notarized and Acknowledgment of Authorized
Representative/Attorney in Fact must be attached for both Principal and Surety. Three (3)
originals must be executed.
4
CALIFORNIA ALL- PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity
of the individual who signed the document to which this certificate is attached,
and not the truthfulness, accuracy, or validity of that document.
State of California }
County of 1),`v@KS4..t }
On W„'>b\1_5J\'\ before me, srz\rLm,t, r
(H Insert am � �`"
ere Inse
personally appeared )thyn` h .��;��nS
who proved to me on the basis of satisfactory evidence to be the person) whose
names) isamps subscribed to the within instrument and acknowledged to me that
hatiaget executed the same in his/Muir authorized capacity{), and that by
his/lir 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.
•
WITNESS my hand and official seal. Commission VAL08
y Commission 0 2082501
i Notary Public•California
i-r % Riverside County
Comm. ices Oct 18,2018
Nota • •Ile • "1,er ature (Notary Public Seal)
• •
ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM
This form complies with current California statutes regarding notary wording and,
DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknowledgments
from other states may be completed for documents being sent to that state so long
as the wording does not require the California notary to violate California notary
Nc" \ tAt4 law.
(Title or description of a ached document) • State and County information must be the State and County where the document
signer(s)personally appeared before the notary public for acknowledgment.
• Date of notarization must be the date that the signer(s)personally appeared which
(Title or description of attached document continued) must also be the same date the acknowledgment is completed.
• The notary public must print his or her name as it appears within his or her
Number of Pages 1.. Document Date,'&\ commission followed by a comma and then your title(notary public).
• Print the name(s) of document signer(s) who personally appear at the time of
notarization.
CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e.
he/she/they;-is late)or circling the correct forms.Failure to correctly indicate this
❑ Individual (s) information may lead to rejection of document recording.
❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible.
Impression must not cover text or lines. If seal impression smudges,re-seal if a
(Title) sufficient area permits,otherwise complete a different acknowledgment form.
❑
Partner(s) • Signature of the notary public must match the signature on file with the office of
the county clerk.
❑ Attorney-in-Fact • Additional information is not required but could help to ensure this
❑ Trustee(s) acknowledgment is not misused or attached to a different document.
Other �(kVt�� • Indicate title or type of attached document,number of pages and date.
` • Indicate the capacity claimed by the signer.If the claimed capacity is a
corporate officer,indicate the title(i.e.CEO,CFO,Secretary).
• Securely attach this document to the signed document with a staple.
. - _. 7° _. �1 ear. -.. i♦ _ i" .' . •
ALL- PURPOSE 1
CERTIFICATE OF ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate
is attached,and not the truthfulness, accuracy,or validity of that document.
•
State of California )
County of Orange }
On OCT 3 0 2011 before me, M. Barreras, Notary Public
(Here insert name and tide of the officer)
personally appeared Janina Monroe
who proved to me on the basis of satisfactory evidence to be the person* whose
namess) islaist subscribed to the within instrument and acknowledged to me that
lita/Sheithey executed the same in kis/her/their authorized capacityfis;lt)c and that by
iais(her/lbsi t signatures on the instrument the person*, or the entity upon behalf of
which the personle 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.
M.BARRERAS
Commission#2048208
WITNESS my hand and official seal. i Ml k Notary Public-California
/ Orange County
Comm.Ex ties Nov 5,2017
No ary Public Signatu (Notary Public Seal)
• •
ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM
This form complies with current California statutes regarding notary wording and.
DESCRIPTION OF THE ATTACHED DOCUMENT if needed.should be completed and attached to the document.Acknolwedgents from
other states may be completed for documents being sent to that state so long as the
wording does not require the California notary to violate California notary law.
(Title or description of attached document) • State and County information must be the State and County where the document
signer(s)personally appeared before the notary public for acknowledgment.
• Date of notarization must be the date that the signer(s)personally appeared which
(Title or description of attached document continued) must also be the same date the acknowledgment is completed.
• The notary public must print his or her name as it appears within his or her
Number of Pages Document Date commission followed by a comma and then your title(notary public).
• Print the name(s) of document signer(s) who personally appear at the time of
notarization.
CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e.
he/she/they—is/are)or circling the correct forms.Failure to correctly indicate this
❑ Individual(s) information may lead to rejection of document recording.
❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible.
Impression must not cover text or lines. If seal impression smudges,re-seal if a
(Title) sufficient area permits,otherwise complete a different acknowledgment form.
❑ Partner(s) • Signature of the notary public must match the signature on file with the office of
the county clerk.
p Attorney-in-Fact • Additional information is not required but could help to ensure this
❑ Trustee(s) acknowledgment is not misused or attached to a different document.
Indicate title or type of attached document,number of pages and date.
Other
❑ + Indicate the capacity claimed by the signer. If the claimed capacity is a
corporate officer,indicate the title(i.e.CEO,CFO,Secretary).
2015 Version vrww NotaryClasses.curn 800-873-9865 • Securely attach this document to the signed document with a staple.