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CITY CLERK
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Recorded in Official Records
City Clerk County of Riverside
Peter Aldana
City of Cathedral City Assessor-County Clerk-Recorder
68-700 Avenida Lalo Guerrero 4 i ,, ,
Cathedral City, CA 92234 II N�2� i, 1� i� � '' 1,1
SPACE ABOVE THIS LINE FOR RECORDER'S USE
CITY OF CATHEDRAL CITY
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT NO. 37473
DATE OF AGREEMENT: -5e7' N'll �2-4)
NAME OF SUBDIVIDER: VALLEY PROPERTY VENTURES, LLC, a Wyoming Limited
Liability Company (hereinafter referred to as "Subdivider").
NAME/NO. OF SUBDIVISION: Tract No. 37473 (hereinafter referred to as "Subdivision").
TENTATIVE MAP APPROVED ON AUGUST 15, 2018, BY ACTION OF THE CITY
PLANNING COMMISSION (the "Approval Action").
PROPERTY SUBJECT TO AGREEMENT: The real property is n the City of Cathedral City,
County of Riverside and 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:
$ 14,000.00 $ N/A $ 5,000.00
(see Exhibit "B-2") (see Exhibit "B-2") (see Exhibit "B-4")
EST. TOTAL COST OF EST. TOTAL COST OF
SEWER MPROVEMENTS: WATER IMPROVEMENTS:
$ 125,000.00 $ N/A
(see Exhibit "B-3") (see Exhibit "B-3")
BOND NUMBERS: Public Improvements Bond # PB00618100086;
Sewer Improvements Bond #: PB00618100087
P/li L n �f,f rh 4- //9,)&7,4 //lbw-4 riot`
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THIS SUBDIVISION IMPROVEMENT AGREEMENT ("Agreement") is made and
entered into by and between the City of Cathedral City, a California municipal corporation
(hereinafter referred to as "City"), and Valley Property Ventures, LLC, a Wyoming Limited
Liability Company (hereinafter referred to as "Subdivider"). City and Subdivider are sometimes
referred to hereinafter individually as a "Party", and collectively as the "Parties".
RECITALS
A. Subdivider is the owner of certain real property located in the City of Cathedral
City legally described on Exhibit "A" attached hereto and incorporated and made part of this
Agreement by this reference (the "Property").
B. 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 (the "Act") and the ordinances and regulations of the City relating to the filing,
approval and recordation of subdivision maps. The Act, and the ordinances and regulations of
the City are collectively referred to in this Agreement as the "Subdivision Laws", and Subdivider
acknowledges familiarity with the Subdivision Laws and hereby agrees to comply therewith.
C. Pursuant to the Approval Action, a tentative map of the Subdivision has been
approved, subject to the Subdivision Laws and the requirements and conditions contained on
the tentative map approved thereby (hereinafter the "Tentative Map"). The Tentative Map and
the Approval Action are on file in the Office of the City Clerk, and such Tentative Map, and all
requirements and conditions imposed thereon by the Approval Action are incorporated into this
Agreement by this reference as if set forth fully herein.
D. The Subdivision Laws establish as a condition precedent to the approval of a final
map that Subdivider must have complied with the requirements and conditions of the Tentative
Map by either: (1) completing in accordance with City Standards, as hereinafter defined, all of
the public and private improvements and land development work required by the Subdivision
Laws and the Tentative Map; or (2) have entered into a secured agreement with the City to
complete such improvements.
E. In consideration of the approval of a final map for the Subdivision by the City
Council, Subdivider desires to enter into this Agreement to complete at its own expense all of
the improvements for the proposed Subdivision. Subdivider has secured this Agreement with
sufficient improvement securities in a form approved by the City Attorney (referred to collectively
hereinafter as "Improvement Securities" and individually as "Improvement Security") to
guarantee the construction and completion of all of the improvements.
F. Improvement Plans (the "Plans") for the construction, installation, and completion
of the public and private improvements have been prepared by Subdivider and approved by the
City Engineer. The City has adopted standards (hereinafter "Standards") for the construction
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and installation of improvements within the City, and the Plans have been prepared in
conformance with the Standards in effect on the date of the Approval Action. The Plans are on
file in the Office of the City Engineer and are incorporated into this Agreement by this reference
as if set forth fully herein. All references in this Agreement to the Plans shall be deemed to
include reference to any specifications for all of the improvements as approved by the City
Engineer.
G. An estimate of the cost for construction of the public and private improvements
and performing the land development work in connection with the improvements according to
the Plans has been made and approved by the City Engineer. The estimated cost of these
improvements is set forth on Page One (1) of this Agreement, and the basis for the estimate is
attached hereto as Exhibit "B" and incorporated and made part of this Agreement by this
reference. The amounts of the Improvement Securities required to be posted with this
Agreement are also based upon the estimates in Exhibit "B". The estimated cost of the sewer
improvements in Exhibit "B" was submitted by Desert Water Agency (DWA), which will be the
owner and operator of the sewer system uponits completion and acceptance by DWA.
NOW, THEREFORE, in consideration of the City Council's approval and recordation of
the final map of the Subdivision, and the mutual covenants of the Subdivider and City herein
contained, Subdivider and City hereby agree a ree as follows:
1. Subdivider's Obligation to Construct Improvements.
(a) In constructing and installing the Improvements (as hereinafter defined),
Subdivider shall complywith all the requirements and conditions of the Tentative Map, any
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amendments thereto, as well as the provisions of the Subdivision Laws.
(b) Subdivider shall complete, at its own expense, all the public and private
improvements and related work on the Subdivision, as required by the conditions of approval of
the Tentative Map in conformance with the approved Plans and City Standards, including
without limitation, those improvements set forth in Exhibits "B-1 through B-4" (hereinafter
collectively the "Improvements"), within twenty-four (24) months of the date of final map
approval by the City Council, unless a time extension is granted by the City as authorized by
Section 20 of this Agreement.
(c) Notwithstanding the time limits specified in Section 1(b) above, no single family
dwelling unit or group of units shall be given final inspection and clearance for occupancy by
City unless the public or private streets providing access to and fronting such units are
completed, the final lifts of pavement on the streets are in place, and all wet and dry utility
services (e.g. sewer, water, electrical power, telephone, gas, etc.) to such units are in place and
are operational.
(d) Subdivider shall furnish the necessary materials for completion of the
Improvements in conformity with the Plans and City Standards.
(e) Subdivider shall acquire and dedicate, or pay the cost of acquisition by the City, of
all right-of-way, easements and other interests in real property required for construction or
installation of the Improvements, free and clear of all liens and encumbrances. Subdivider's
obligations relating to acquisition by City of off-site rights-of-way, easements and other interests
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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 therefor to accommodate the Subdivision.
(g) Subdivider shall furnish and install all monuments, stakes and property corners as
specified on the final map for the Subdivision in accordance with the provisions of the
Subdivision Laws, and submit centerline tie sheets to City, within thirty (30) days after
completion of the Improvements, or as specified in any separate monument agreement with the
City, but in any event prior to their acceptance by the City.
2. Improvement Securities.
(a) Subdivider shall at all times guarantee Subdivider's performance of this
Agreement by furnishing and maintaining good and sufficient Improvement
Securities with the City as required by the Subdivision Laws on forms approved by
City for the purposes and in the amounts as follows:
Public Improvements:
(i) Fourteen Thousand and 00/100 DOLLARS ($ 14,000.00) to ensure faithful
performance of the construction and installation of the Improvements required by this
Agreement ("Performance Security"), which amount is 100% of the estimated cost of the
public improvements as set forth in Exhibits "B-1 and B-2"; and
(ii) Seven Thousand and 00/100 DOLLARS ($ 7,000.00) 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 this Agreement
("Labor & Materials Security"), which amount is 50% of the estimated cost of the
Improvements; and
(iii) Fourteen Hundred and 00/100 DOLLARS ($ 1,400.00) in the form of a
Warranty Bond or cash deposit with the City to guarantee or warranty the Improvement
work done pursuant to this Agreement for a period of one (1) year following
acceptance/certification thereof by City, against any defective work or labor done or
defective materials furnished ("Warranty Security"). The Warranty Security is 10% of the
estimated cost of the Performance Security amount described above, and such Warranty
Security must be provided by Subdivider to City prior to the City's release of any bonds or
Improvement Securities filed with this Agreement; and
Sewer Improvements:
(iv) One Hundred Twenty Five Thousand and 00/100 DOLLARS
($ 125,000.00) to ensure faithful performance of the construction and installation of the
sewer improvements required by Desert Water Agency, which is 100% of the estimated
cost of the sewer improvements as set forth in Exhibit "B-3"; and
(v) Sixty Two Thousand Five Hundred and 00/100 DOLLARS ($ 62,500.00) to
secure payment to any contractor, subcontractor, persons renting equipment or
furnishing labor materials for the sewer improvements required to be constructed or
installed pursuant to this Agreement ("Labor & Materials Security"), which amount is 50%
of the estimated cost of the sewer improvements; and
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(vi) Twelve Thousand Five Hundred and 00/100 DOLLARS ($ 12,500.00) in the
form of a Warranty Bond or cash deposit with the City to guarantee or warranty the sewer
-• Improvement work done pursuant to this Agreement for a period of one (1) year following
acceptance/certification thereof by Desert Water Agency, against any defective work or
labor done or defective materials furnished ("Warranty Security"). The Warranty Security
is 10% of the estimated cost of the Performance Security amount described above in
Sec. (v), and such Warranty Security must be provided by Subdivider to City prior to the
City's release of any bonds or Improvement Securities filed with this Agreement; and
Monuments:
(vii) Five Thousand and 00/100 DOLLARS ($ 5,000.00) in the form of a cash
deposit, which is 100% of the estimated cost of setting final subdivision monuments,
boundary corners, front and rear lot corners and providing centerline ties
("Monumentation Security") as set forth in Exhibit "B-4".
(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-. The terms of any documents
evidencing such Improvement Securities as set forth in this Section 2 or 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) Subdivider understands and agrees that the Desert Water Agency is the local
sewer purveyor, that the sewer improvements to be constructed will be owned and operated by
Desert Water Agency, and that the City will hold and administer the Improvement Securities for
the sewer and water improvements described herein on behalf of and in cooperation with the
Desert Water Agency.
(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.
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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 Subdivider 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 7 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 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.
4. Modification of Drainage Plan. Subdivider agrees that if during the course of
construction and installation of Improvements it shall be determined by the Director of
Engineering 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
Director of Engineering and approved by City. Said changes, if any, shall be confined to the
Property.
5. Reserved.
6. Inspections; Final Acceptance and Certification of Improvements.
(a) Subdivider shall at all times maintain proper facilities and safe access for
inspection of the public and private improvements and the sewer and water improvements by
City and/or Desert Water Agency inspectors and to the shops wherein any work is in
preparation.
(b) Upon completion of the public and private improvements covered in this
Agreement, the Subdivider shall request a final inspection by the Director of Engineering or
his/her authorized representative. Following receipt of such request, the Director of Engineering
shall inspect the Improvements, make certain determinations and take certain actions as
follows:
(i) If the Director of Engineering, 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 Director of Engineering shall certify the completion of the Public
Improvements by placing a resolution on the next most convenient City Council agenda
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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 Director of Engineering 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) With regard to the sewer improvements which will be owned and operated
by Desert Water Agency (DWA), if the General Manager or Chief Engineer of DWA, or
his/her authorized representative, determines that the sewer improvements requiring
acceptance by DWA for public use have been completed in accordance with this
Agreement and DWA plans and specifications, then upon receipt of written approval from
the DWA General Manager, Chief Engineer or authorized representative, the Director of
Engineering shall certify the completion of the sewer improvements by placing a
resolution on the next most convenient City Council agenda seeking: (1) formal
acknowledgment of their acceptable completion; and (2) release of the Improvement
Securities posted therefor. Said determination by the Director of Engineering and
agendization of the acceptance and release shall not be unreasonably withheld or
delayed after receipt from said approval from Desert Water Agency. Any certification
and/or acceptance of the sewer improvements shall not constitute a waiver of any defects
by City or Desert Water Agency.
(c) Subdivider shall bear all costs of inspection and certification of all the
Improvements in the tract.
7. Release of Improvement Securities. Except as otherwise provided in this
Agreement (including, without limitation, in Section 33 of this Agreement entitled "Reversion to
Acreage"), the Improvement Securities shall be released only as specified in this Section. The
Performance Security shall be fully released only upon the final completion and certification of
all public improvements, and after acceptance of the public Improvements by the City Council as
specified in Section 6(b). Upon final completion of the public improvements under this
Agreement, and after City Council acceptance, the City shall file a Notice of Completion in
accordance with the California Civil Code.
(a) Partial releases of the Performance Security may be permitted subject to the
provisions of Subsections (a)(i), (a)(ii) and (a)(iii) hereof:
(i) The Director of Engineering 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 fifty percent (50%) or less of the
estimate of the total amount of work to be done as shown in Exhibit "B-1". 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 one-hundred fifty percent (150%) of
the value of the work remaining to be done. City and Subdivider agree that not more
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than two requests for reduction or partial release of Performance Security shall 'oe
considered between the start of construction and the completion and
acceptance/certification of the Improvements by the City. No reduction in any security
posted for completion of sewer improvements will be considered without the written
concurrence of the Desert Water Agency.
(ii) In no event shall the Director of Engineering 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 in this Section 7, 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 Director of Engineering 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 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 11 , below, the warranty period shall not commence until final
acceptance of the Improvements and related work by the City Council.
(d) The Monumentation Security may be released in full by the Director of Engineering
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
ir r
(ii) Director
0
centerline tie sheets prepared in a manner acceptable to the i
Engineering showing the locations of centerline monuments in existing public streets.
(e) The Performance Security posted for the sewer improvements to be owned and
operated by Desert Water Agency, shall be fully released only upon the receipt from Desert
Water Agency of written approval thereof, as outlined in Section 6 (b)(ii) above and after
approval thereof by the City Council. Partial releases of the performance security posted for
sewer improvements may be permitted subject to the provisions of Subsections (a)(i), (a)ii and
(a)(iii) hereof only upon the Director of Engineering's receipt of written approval of the partial
release from the Desert Water Agency.
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(f) The Labor & Materials Security posted for the sewer improvements to be owned
and operated by Desert Water Agency shall, ninety (90) days after the City's recordation of the
Notice of Completion described in this Section 7, be reduced to an amount equal to the total
claimed byall claimants for whom liens have been filed and of which notice has been given to
City, plus an amount reasonably determined by the Director of Engineering 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 notice has been given to City within said ninety (90) day period, then the Labor &
Materials Security shall be released in full.
(g) 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.
8. 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 Director of Engineering and the owner of any such public or private
improvement.
9. 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.
10. 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; (8) Subdivider's failure to maintain insurance; or (9)
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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 Director of Engineering 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 10(b), above, the Director of Engineering 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 22 of this Agreement.
(d) In the event of service of the notice of default specified in Subsection 10(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
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 any or all of the following: (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
(subject to Section 33, below, of this Agreement); and (4) withholding of Building permits,
inspections, utility connections and/or Certificates of Occupancy. The remedies provided by this
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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.
11. Warranty.
(a) For a period of one (1) year after final acceptance/certification by the City Council
of the public improvements, or by Desert Water Agency for sewer improvements, Subdivider
shall guarantee or warranty all such 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 or Desert
Water Agency, as the case may be, commence to repair or replace or reconstruct any defective
or otherwise unsatisfactory part or parts of the work or structure within thirty (30) days of
receiving written notice from City, or Desert Water Agency, 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 and/or Desert Water Agency, at
City's or DWA'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 and/or
DWA for the cost of such work.
(c) Should the City or DWA, in the case of sewer improvements, 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 and/or DWA 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.
12. 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.
13. Injury to Improvement Work; Risk of Loss. Until such time as the Public
Improvements, sewer improvements, and water improvements are accepted by City, Subdivider
shall be responsible for and bear the risk of loss to any of the Improvements constructed or
Page 11 of 23
installed and shall be responsible for the care, maintenance of and any damage to such
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 Improvements specified in this Agreement prior to the completion and acceptance of the
Improvements by City. All such risks shall be the responsibility of and are hereby assumed by
Subdivider.
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 City ordinances
providing therefor, nor shall anything in this Agreement commit to any such apportionment.
15. Subdivider's Obligation to Warn Public During Construction. Until final
acceptance of the Public Improvements pursuant to Section 6(b)(i), and acceptance of the
sewer and water improvements by Desert Water Agency pursuant to Section 6(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.
16. 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 pursuant to this
Agreement shall vest in City. Ownership of the sewer improvements to be owned and operated
by Desert Water Agency shall vest in DWA after acceptance and recordation of a Notice of
Completion therefor, and after a Bill of Sale or other document of ownership transfer as required
by DWA has been executed.
17. 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
Page 12 of 23
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
17 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
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 17.
18. 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.
Page 13 of 23
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
(or other such release or assignment and assumption agreement entered into by Subdivider,
Successor and City).
19. Time of the Essence. Time is of the essence in this Agreement.
20. 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 Subsection 1(b) of this Agreement may be extended as permitted
by City ordinance. The City Manager may also 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 Subsections
20(b) and (c), below, and shall be made by a writing executed by the City Manager 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 Director of Engineering.
Page 14 of 23
(e) Any extension of time granted under this Section 20 shall be evidenced in writing,
executed by the City Manager and Subdivider, in a form approved by the City Attorney, and
shall require the written concurrence of the Subdivider's surety.
21. 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.
22. 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: Valley Property Ventures, LLC
3727 West Magnolia Blvd.
Suite 750
Burbank CA 91505
Attn: Chris Ifeanyi
chris@blueoceanspg.com
With a Copy To: La Costa Loans, Inc
703 Palomar Airport Road, Suite 225
Carlsbad, CA 92011
Notice to surety: Philadelphia Indemnity Insurance Company
251 S. Lake Avenue, Suite 360
Attn: Michael G. Hall
gerald.hall@phly.com
23. Severability. The provisions of this Agreement may be severed from the
remainder of this Agreement in accordance with the provisions of this Section 23 and applicable
law. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the
Page 15 of 23
remainder of the Agreement shall remain in full force and effect unless amended or modified in
writing by the mutual consent of the Parties.
24. 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.
25. Insurance.
(a) Subdivider shall, at all times 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
Y
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.
(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
Page 16 of 23
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 Tract 37473. 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
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.
Page 17 of 23
(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 25, 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.
26. 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.
27. Incorporation of Recitals. The Recitals to this Agreement are hereby
incorporated into the terms of this Agreement.
28. 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.
29. 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.
30. 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 30(a) notwithstanding, Subdivider shall remain jointly
and severally liable with its heirs, successors, assigns or successor owners of the Property for
Page 18 of 23
•
the responsibilities and liabilities imposed by this Agreement unless a novation agreement is
executed in accordance with the provisions of Section 18 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.
31. Miscellaneous. Subdivider further agrees to provide to City, on or before
occupancy of first residential structure, a copy of the final Public Report or such other evidence
acceptable to the City Attorney, stating that the construction of any common private
improvements is guaranteed with the State of California Bureau of Real Estate.
32. 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.
33. Reversion to Acreage. Nothing in this Agreement shall be deemed, construed,
or interpreted to waive or impair in any way Subdivider's or City's right to seek or allow the
reversion to acreage of the Property pursuant to Section 66499.11 , et seq., of the California
Government Code and the Subdivision Ordinance. All proceedings for reversion to acreage of
the Property, whether initiated by the Subdivider or the City, shall be conducted fairly and
without unnecessary delay. Upon the effective date of the reversion to acreage of the Property
pursuant to Government Code Section 66499.18, Subdivider shall have no further obligations
under this Agreement, all of the Improvement Securities shall be immediately released, and all
fees and deposits theretofore paid by Subdivider (if any) shall be immediately returned to
Subdivider pursuant to Section 66499.19 of the California Government Code, less any allowable
retentions including retentions to cover costs actually and reasonably incurred by City.
/
/
/
/
/
[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:
VALLEY PROPERTY VENTURES, LLC, CITY OF CATHEDRAL CITY
a Wyo .ted Liability Company a Municipal Corporation
1
Chris Ifeanyi, Joh VAgui ar, May:r
Sole Member
ATT T:
. '___/A •
Tracey R. .rtine C.M.C.
City Clerk
APPROVED AS TO Fe -MI—
City
Ili%
City Attorney
APPROVED AS TO CONTENT:
/ 0
sem• _
Joh 7 Corella,
Direc or of Engineering
APPROVED:
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 document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of ��
�
OnO -2"1"
`J `Z6 before me, rL� / 6oyl {2?
A Notary Public personally appeared Lam`Y 1 S t PtAu
1
who proved to me on the basis of satisfactory evidence to be the person(.s1 whose name(s).
is/a6 subscribed to the within instrument and acknowledged to me that he/she/they-executed
the same in his/ieritlicirauthorized capacity(iee), and that by his/herftheir signature(,sr)'on the
instrument the person(s)- or the entity upon behalf of which the personleacted, 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.
n ARCE A.GONZALEZ
!! cows 2184557
ti,► NOTARY/USUC•CAUFORM A
Signature 1 `F-+ LOS ANGELES COUNTYmow }' "'/ Comm.Exp.FEB.25,2021 t
(Seal)
EXHIBIT "A"
Legal Description of Real Property Subject to this Agreement
Page 21 of 23
EXHIBIT "A"
Legal Description of Real Property Subject to this Agreement
Note: The following property description is taken from First American Title Company Preliminary
Report Order No. NHSC-5686789 (tc), Update 2, dated as of September 23, 2019:
Real property in the City of Cathedral City, County of Riverside, State of California, described as follows:
PARCEL A OF LOT LINE ADJUSTMENT NO. 2018-504 RECORDED AUGUST 14, 2018 AS INSTRUMENT NO.
2018-0325012 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
THOSE PORTIONS OF LOT 78 OF PALM SPRINGS COUNTRY CLUB ESTATES IN THE CITY OF CATHEDRAL
CITY, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, RECORDED IN BOOK 22, PAGES 40 THROUGH
44, INCLUSIVE, OF MAPS, RECORDS OF SAID COUNTY, AND THAT PORTION OF LOT 518 OF PALM
SPRINGS COUNTRY CLUB ESTATES UNIT NO. 3 IN SAID CITY OF CATHEDRAL CITY, RECORDED IN
BOOK 34, PAGES 73 AND 74 OF MAPS, RECORDS OF SAID COUNTY, AND THAT PORTION OF LOT
"S"DESCRIBED IN THE QUITCLAIM DEED RECORDED AS DOCUMENT NUMBER 2018-0252395 ON JUNE
22, 2018 OF OFFICIAL RECORDS OF SAID COUNTY,AND LOT"A"AS VACATED PER THE "CATHEDRAL
CITY COUNCIL RESOLUTION NO. 2005-89" RECORDED AS DOCUMENT NUMBER 2005-1043211 ON
DECEMBER 19, 2005,OFFICIAL RECORDS OF SAID COUNTY,ALL LOCATED IN SECTION 17,TOWNSHIP
4 SOUTH, RANGE 5 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 17,AS SHOWN ON SAID MAP OF PALM
SPRINGS COUNTRY CLUB ESTATES;
THENCE NORTH 89°38'20" EAST ALONG THE NORTHERLY LINE OF SAID SECTION 17, A DISTANCE OF
40.00 FEET TO THE NORTHEAST CORNER OF LOT"A" AS SHOWN ON SAID MAP OF PALM SPRINGS
COUNTRY CLUB ESTATES;
THENCE CONTINUING NORTH 89°38'20" EAST,ALONG THE NORTHERLY LINE OF SAID PORTION OF
LOT"S A DISTANCE OF 47.08 FEET,TO THE EAS l ERLY MOST POINT OF PARCEL"A" DESCRIBED IN
THE GRANT OF EASEMENT RECORDED AS DOCUMENT NUMBER 2005-1073 871 ON DECEMBER 29, 2005
OF OFFICIAL RECORDS OF SAID COUNTY,ALSO BEING THE EASTERLY RIGHT OF WAY OF SAN
JOAQUIN DRIVE AS SHOWN THEREON AND THE TRUE POINT OF BEGINNING;
THENCE CONTINUING NORTH 89°38'20" EAST,ALONG THE NORTHERLY LINE OF SAID PORTION LOT
"5",A DISTANCE OF 251.17 FEET MORE OR LESS TO THE NORTHEAST CORNER OF SAID PORTION OF
LOT"S";
THENCE SOUTH 00°18' EAST ALONG THE EASTERLY LINE OF SAID PORTION OF LOT"S", ALSO BEING
THE NORTHERLY PROLONGATION OF THE EASTERLY LINE OF SAID LOT 518, A DISTANCE OF 40.00
FEET TO THE NORTHEAST CORNER OF SAID LOT 518;
THENCE CONTINUING SOUTH 00°18' EAST ALONG THE EASTERLY LINE OF SAID LOT 518 AlDISTANCE
OF 104.00 FEET TO A POINT;
THENCE SOUTH 89°38'20" WEST,A DISTANCE OF 172.69 FEET TO A POINT;
Page 21A of 23
THENCE SOUTH 00°13'13" EAST, A DISTANCE OF 217.76 FEET MORE OR LESS TO A POINT ON THE
SOUTHERLY LINE OF SAID LOT 78;
THENCE SOUTH 89°42'WEST A DISTANCE OF 136.00 FEET MORE OR LESS TO A POINT ON THE
EASTERLY RIGHT-OF-WAY UNE OF SAN JOAQUIN DRIVE SHOWN ON THE RESOLUTION RECORDED AS
DOCUMENT NUMBER 2005-1043211 ON DECEMBER 19, 2005 OF OFFICIAL RECORDS OF SAID COUNTY;
THENCE NORTH 00°13'13"WEST ALONG SAID RIGHT-OF-WAY, A DISTANCE OF 93.09 FEET TO THE
BEGINNING OF A TANGENT CURVE, CONCAVE EASTERLY AND HAVING A RADIUS OF 470.00 FEET;
THENCE CONTINUING ALONG SAID RIGHT-OF-WAY, NORTHERLY ALONG SAID CURVE, THROUGH A
CENTRAL ANGLE OF 08°43'37",AN ARC DISTANCE OF 71.59 FEET;
THENCE NORTH 08°3024"WEST ALONG SAID RIGHT-OF-WAY, A DISTANCE OF 30.04 FEET TO THE
EASTERLY LINE OF LOT"A"AS SHOWN ON SAID MAP OF PALM SPRINGS COUNTRY CLUB ESTATES;
THENCE CONTINUING NORTH 08°30'24" WEST ALONG THE EASTERLY RIGHT-OF-WAY UNE OF SAN
JOAQUIN DRIVE AS SHOWN ON THE GRANT OF EASEMENT RECORDED AS DOCUMENT NUMBER 2005-
1073870 ON DECEMBER 29, 2005 OF OFFICIAL RECORDS OF SAID COUNTY,A DISTANCE OF 128.78
FEET MORE OR LESS TO THE SOUTHERLY LINE OF SAID PORTION OF LOT"S";
THENCE CONTINUING NORTH 08°30'24" WEST ALONG THE EASTERLY RIGHT-OF-WAY LINE OF SAN
JOAQUIN DRIVE AS SHOWN ON THE GRANT OF EASEMENT RECORDED AS SAID DOCUMENT NUMBER
2005-1073871 A DISTANCE OF 19.08 FEET;
THENCE NORTH 49°0422" EAST ALONG SAID RIGHT-OF-WAY, A DISTANCE OF 32,52 FEET, MORE OR
LESS,TO THE TRUE POINT OF BEGINNING.
Page 21B of 23
EXHIBIT "B-1"
Estimated Costs of Public and private Improvements for Tract 37473
(the following cost and bond amount summaries are based upon costs in the Engineer's Cost
Estimates for Improvements in Tract No. 37354„ dated August 3, 2020, prepared by Robert J.
Mainiero, P.E., attached hereto as Exhibit "B-2". The figures below for sewer bond amounts are
based upon the letter from Desert Water Agency dated July 29, 2020, attached hereto as Exhibit
"B-3". The amount stated below for the monument cash bond is based upon the Engineer's
Cost Estimated dated August 5, 2020, , prepared by Robert J. Mainiero, P.E., attached hereto
as Exhibit "B-4".
1. Off-site (public) improvements: $ 14,000
2. Sewer system improvements: $ 125,000
3. Monumentation: $ 5,000
Page 22 of 23
EXHIBIT "B-1"
IMPROVEMENT SECURITY SUMMARY:
PUBLIC IMPROVEMENTS:
FAITHFUL PERFORMANCE BOND,
At 100% of public and private improvements: $ 14,000
PAYMENT BOND (LABOR & MATERIALS),
At 50% of public and private improvements: $ 7,000
WARRANTY BOND, at 10% of total, posted at
Acceptance of improvements: $ 1,400
SEWER IMPROVEMENTS:
FAITHFUL PERFORMANCE BOND, At 100% $ 125,000
Of sewer improvements, per DWA:
PAYMENT BOND (LABOR & MATERIALS) At $ 62,500
50% of sewer improvements, per DWA:
WARRANTY BOND, At 10% of sewer improve- $ 12,500
ments, posted at acceptance of sewer system:
MONUMENT CASH SECURITY: $ 5,000
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