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CITY CLERK 2019-0513612
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WHEN RECORDED RETURN TO: Recorded in Official Records
County of Riverside
Cit Clerk Peter Aldana
Y
Cityof Cathedral Cit 151951.0241411111 r'ssessor-County Cler -Rrder
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
SPACE ABOVE THIS LINE FOR RECORDER'S USE
CITY OF CATHEDRAL CITY
IMPROVEMENT AGREEMENT
TRACT NOS. 28561 & 28561-1
RIO DEL SOL - MONTECITO
DATE OF AGREEMENT: October 23 , 2019
NAME OF DEVELOPER: HOLT OPPORTUNITY FUND (PARALLEL-1), 2013, L.P.
(hereinafter referred to as "Developer").
NAME/NUMBER OF DEVELOPMENT: RIO DEL SOL / MONTECITO (hereinafter referred to
as "Subdivision"). Fifty-seven (57) residential lots, in a portion of Planned Unit Development
PUD 97-4, originally approved on September 24, 1997 (and amended on June 6, 2018), and
Tentative Tract 28561 , originally approved on September 24, 1997.
PLANNED UNIT DEVELOPMENT 97-4 AMENDMENT APPROVED ON June 6, 2018, BY
ACTION OF THE PLANNING COMMISSION (the "Approval Action").
ORIGINAL PLANNED UNIT DEVELOPMENT 97-4 APPROVED by Resolution of the City
Council No. on September 3, 1997.
FINAL MAPS FOR THE DEVELOPMENT 28561-1 & 28561 APPROVED RECORDED ON
September 17, 2002 (No. 2002-515045), and October 14, 2003 (No. 2003-805429),
respectively.
PROPERTY SUBJECT TO AGREEMENT: The real property which is the subject of this
Agreement is located in the City of Cathedral City, County of Riverside and is described in
Exhibit "A" attached hereto and incorporated herein (hereinafter the "Property").
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EST. TOTAL COST OF EST. TOTAL COST OF EST. TOTAL COST OF
PUBLIC IMPROVEMENTS: PRIVATE IMPROVEMENTS: MONUMENTATION:
$195,580.00 $935,453.37 $7,206.00
(see Exhibit "B-1") (see Exhibit "B-1") (see Exhibit "B-1")
EST. TOTAL COST OF STREET COMPLETION WORK (EXISTING STREETS IN THE
MONTECITO VILLAGE & 100% OF PASEO DEL SOL):
$208,160.37
(see Exhibit "B-1")
BOND NUMBERS:
LETTER OF CREDIT NUMBERS:
FINANCIAL INSTITUTION:
THIS DEVELOPMENT 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 Holt Opportunity Fund (Parallel-1),
2013, L.P., a Delaware limited partnership, (hereinafter referred to as "Developer"). City
and Developer are sometimes referred to hereinafter individually as a "Party", and
collectively as the "Parties".
RECITALS
A. Developer is the lessee of certain real property located in the City of
Cathedral City wherein certain Indian Alloteees and members of the Caliente Band of
Cahuilla Indians are the lessors, legally described on Exhibit "A" attached hereto and
incorporated and made part of this Agreement by this reference (the "Property"). The
Property is owned by the Allotees and is held in trust by the United States Department
of Interior, Bureau of Indian Affairs which has consented to the Development of the
Property by the Developer.
B. Developer has submitted to City an application, hereinafter "Application", for
the amendment of Planned Unit Development No. 97-4, as originally approved by City
Council Resolution No. 97-55 on September 24, 1997, to allow the construction of 57
single family detached residential units, hereinafter "Development" on its property
located south of Gerald Ford Drive and west of Da Vail Drive, as described in the above
described Exhibit "A", all as required by the City's Zoning Code and Ordinances. Said
"Development" is known as "Rio Del Sol-Montecito", and is one phase of a multi-phase
development of the Property and adjacent properties Subleased by Developer.
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C. Final subdivision maps for the Property have previously been approved and
recorded, pursuant to Tentative Tract No. 28561 , as originally approved by City Council
Resolution No. 97-54 on September 24, 1997, as follows: Tract Map No. 28561-1 ,
recorded on September 17, 2002, in Book 323 at Pages 35 through 49, inclusive, of
Maps, and Tract Map No. 28561 , recorded on October 14, 2003, in Book 343 at Pages
15 through 22, inclusive, of Maps, both in the office of the Riverside County Recorder.
All the requirements and conditions of approval imposed on Planned Unit Development
No. 97-4 and on Tentative Tract No. 28561 are incorporated into this Agreement by this
reference as if set forth fully herein.
D. On June 6, 2018, the Planning Commission reviewed and approved the
above-mentioned amendment of Planned Unit Development No. 97-4, subject to the
original conditions of approval, and those described in the Planning Commission Staff
Report dated May 31, 2018, which are incorporated into this Agreement by this
reference as if set forth fully herein.
E. The conditions of approval of Planned Unit Development No. 97-4 and
Tentative Tract Map No. 28561 require that prior to the issuance of building permits, the
Developer and the City shall enter into an Improvement Agreement, secured with
sufficient security, as a guarantee of the construction and completion of all public and
private improvements and land development work required by said conditions of
approval and by the City subdivision laws and codes.
F. In consideration of the approval of the amendment to Planned Unit
Development No. 97-4 by the Planning Commission and for the issuance by City of
building permits on the lots and properties described in Exhibit "A", and of City's
inspection of such permits and issuance of certificates of occupancy therefor upon their
completion, Developer desires to enter into this Agreement to complete at its own
expense all of the public and private improvements and land development for the
proposed Development.
G. Improvement Plans (the "Plans") for the construction, installation, and
completion of the public and private improvements are being prepared by Developer
and will be subject to approval by the City Engineer. The City has adopted standards
(hereinafter "Standards") for the construction and installation of improvements within the
City, and the Plans will be prepared in conformance with the Standards in effect on the
date of the approval of the Application. The Plans will be 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.
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H. 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-1" 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 estimate in Exhibit "B-1".
For the purposes of this Agreement, the term "Public Improvements"
means all those water and sewer system improvements within Tract No. 28561-1 and
Tract No. 28561 , which upon completion of their construction and installation, will come
under the jurisdiction, maintenance and control of the Coachella Valley Water District
("CVWD"). The estimated cost of their construction is included in the above estimate
included herein as Exhibit "B-1".
NOW, THEREFORE, in consideration of the Planning Commission's approval of
the Application and subsequent issuance of building permits, and of City's inspection of
such permits and issuance of certificates of occupancy therefor upon their completion,
Developer and City hereby agree as follows:
1. Developer's Obligation to Construct Improvements.
(a) In constructing and installing the improvements in said Development,
Developer shall comply with all of the requirements and conditions of approval of
Planned Unit Development No. 97-4 and the amendment thereto, and Tentative Tract
No, 28561, as well as the provisions of the Municipal Code and Subdivision Laws.
(b) Developer shall complete, at its own expense, all the public and private
improvements and related work on the Development, 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 Exhibit "B-1" and
shown in Exhibit "B-2" (hereinafter collectively the "Improvements") within twenty-four
(24) months of the date of this Agreement , 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 private and public 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.
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(d) Developer shall furnish the necessary materials for completion of the
Improvements in conformity with the Plans and City Standards.
(e) Developer 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. Developer's obligations relating 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 Developer and City. Developer shall also be responsible for
obtaining any public or private drainage easements or authorizations therefor to
accommodate the Development.
(f) Developer shall furnish and install all monuments, stakes and property
corners as specified on the final recorded tract maps for the Development 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.
(g) Developer shall cause to be prepared and recorded a Record of Survey as
required by Section 8762, et. Seq. of the State Business and Professions Code, for any
previously recorded lot line adjustment within the Development, for which no Record of
Survey has previously been recorded. The estimated cost of such Record of Survey is
included in the above described Exhibit "B-1".
2. Improvement Securities.
(a) Developer agrees to secure this Agreement with good and 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 the improvements. All such
improvement securities shall be posted with the City prior to the City's final building
inspection and issuance of a Certificate of Occupancy for any single family dwelling
constructed by the Developer, its agents, assigns or contractors, on any lot within the
Property, as described in Exhibit "A". Said securities are estimated at this time in
Exhibit "B-1" to be in the following amounts, and shall be for the purposes described as
follows:
(i) Nine Hundred Twenty-Two Thousand Eight Hundred Seventy-
Three and 00/100 DOLLARS ($922,873.00) 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
Improvements as set forth in Exhibit "B-1"; and
(ii) Two Hundred Eight Thousand One Hundred Sixty and 37/100
DOLLARS ($208,160.37) to ensure faithful performance of the street completion
work for the existing streets located within the Montecito Village as required by
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this Agreement ("Performance Security"), which amount is 100% of the estimated
cost of the Improvements as set forth in Exhibit "B-1"; and
(iii) Five Hundred Sixty-Five Thousand Five Hundred Sixteen and
68/100 DOLLARS ($565,516.68) 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
(iv) Ninety-Two Thousand Two Hundred Eighty-Seven and 00/100
DOLLARS ($92,287.00) 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 Developer to City prior to the City's release of any bonds or
Improvement Securities filed with this Agreement.
(v) Twenty Thousand Eight Hundred Sixteen and 03/100 DOLLARS
($20,816.03) in the form of a Warranty Bond or cash deposit with the City to
guarantee or warranty the Street Completion 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 Developer to City prior to the City's release of any
bonds or Improvement Securities filed with this Agreement.
(vi) Seven Thousand Two Hundred Six and 00/100 Dollars ($7,206.00)
in the form of a cash deposit, which is 100% of the estimated cost of setting all
final subdivision monuments, boundary corners, front and rear lot corners and
centerline ties not previously set or submitted on the lots and streets within the
Property as described in Exhibit "A", and for the preparation and recordation of
any related Certificate of Correction, as required by Section 66469 of the State
Subdivision Map Act.
(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
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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) Developer 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 Developer 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 Developer 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) 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 Developer, 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, Developer 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. Developer 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) Developer 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
Developer 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. Developer 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. Reserved.
6. Inspections; Final Acceptance and Certification of Improvements.
(a) Developer 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
Developer 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 Public Improvements requiring acceptance by the Coachella
Valley Water District have been completed in accordance with this Agreement,
then the City Engineer shall request said District to make a final inspection of
such improvements and certify to the City that such improvements have been
completed and installed to the satisfaction of said District. Upon receipt of such
certification, the City Engineer may release or reduce the securities held for such
improvements. 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
Coachella Valley Water District (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 Developer'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 Developer'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) Developer shall bear all costs of inspection and certification of the
Improvements.
7. Release of Improvement Securities.
(a) The Performance Security shall be fully released only upon the final
completion and certification of all Private Improvements, and after acceptance of the
Public Improvements by the Coachella Valley Water District. 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 Developer; 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 Developer 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 Developer by this Agreement.
(iii) No partial reduction or release of the Performance Security shall
constitute or be construed as the City's acceptance or certification 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 7(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 related 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
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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/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 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 Developer 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) The City may retain from any Improvement Securities released an amount
sufficient to cover costs and reasonable expenses and fees, including reasonable
attorneys' fees.
8. Injury to Public Improvements, Public Property or Public Utilities
Facilities.
Developer 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 under this
Agreement. Developer 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 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.
9. Permits. Developer shall, at Developer'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 Developer.
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(a) Default of Developer shall include, but not be limited to: (1) Developer's
failure to timely complete construction of the Improvements; (2) Developer's
unwarranted failure to timely cure any defect in the Improvements; (3) Developer's
failure to perform substantial construction work for a period of twenty (20) consecutive
calendar days after commencement of the work; (4) Developer's insolvency,
appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or
involuntary which Developer fails to discharge within thirty (30) days; (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) Developer's failure to keep the
Improvement Securities in full force and effect; (7) Developer's failure to notify the City
of any sale, transfer or other disposition of the Property to a purported new Developer;
(8) Developer's failure to maintain insurance; or (9) the failure of Developer or
Developer'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 Developer specifying in reasonable detail the nature of the
default. Developer 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, Developer shall have a reasonable period of time to cure the
default so long as Developer 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, Developer fails to cure
or commence curing the default to the satisfaction of City within the cure period
specified in Subsection 10(b), above, the City Engineer or the City Council may serve
notice of Developer's default upon Developer and where applicable Developer'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, Developer'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 Developer, and Developer'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 Developer as may be on the site of the work and necessary for the
completion of same.
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(e) The City reserves to itself all remedies available to it at law or in equity for
Developer'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 Developer. 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 Developer'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 Developer 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 Developer's consent to: (1) the filing by
City of a notice of violation against all of the lots in the Subdivision; (2) 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. Developer agrees that the choice of remedy or
remedies for Developer's default or breach shall be in the sole discretion of City.
(g) In the event that Developer fails to perform any obligation hereunder,
Developer agrees to pay all costs and expenses 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 Developer. 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 Improvements, Developer 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
Developer fails to fulfill any of the requirements of this Agreement or the Plans,
Developer shall without delay and without any cost to City, 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 of the defect and
diligently prosecute the repair or replacement work to completion.
(b) Should Developer fail to act promptly or in accordance with the
repair/replacement requirements set forth herein, Developer hereby authorizes City, at
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City's option, to perform the repair/replacement work twenty (20) days after mailing
written notice to Developer and to Developer's surety, and Developer 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 Developer can be notified, City
may, in its sole discretion, make the necessary repairs or replacements or perform the
necessary work and Developer shall pay to City the cost of such repairs.
12. Developer Not Agent of City. Neither Developer nor any of Developer's
agents, officers, employees, or contractors are or shall be considered to be agents of
City in connection with the performance of Developer's obligations under this
Agreement.
13. Injury to Improvement Work; Risk of Loss. Until such time as the
Public Improvements are accepted by City, Developer 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 Developer. Developer is responsible for and shall bear
the risk of loss for all Private Improvements at all times.
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 Developers
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. Developer's Obligation to Warn Public During Construction. Until
final acceptance/certification of the Public Improvements pursuant to Section 6(b)(i),
and final certification of construction of the Private Improvements pursuant to Section
6(b)(ii), Developer 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 in, 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,
Page 13 of 24
ownership of the Public Improvements constructed within the Private streets in the
Development shall vest in the name of the Coachella Valley Water District , or
applicable utility company, and any improvement constructed on any public street
pursuant to this Agreement shall vest in City.
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 Developer, its agents, subcontractors or employees in the
performance of this Agreement. Developer hereby agrees to, and shall defend 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 Developer's operations, or any subcontractor's
operations, to be performed under this Agreement for Developer'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 Developer 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) Developer'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 Developer has insurance or other indemnification
covering any of these matters.
(c) Developer'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 Developer, 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,
Developer shall remain obligated to correct or eliminate all dangerous conditions
caused by defects in design or construction; provided, however, that the Developer shall
not be responsible for routine maintenance. Developer acknowledges and agrees that
Page 14 of 24
Developer 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. Developer's Improvement
Securities shall not be required to secure Developer's obligations under this Section 17.
18. Sale or Disposition of Subdivision; Assignment.
(a) Developer acknowledges and agrees that sale, transfer or other
disposition of the Property prior to completion of the Improvements required hereunder
will not relieve Developer from the obligations set forth in this Agreement, and
Developer 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
Developer 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, Developer
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"). Developer 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 Developer 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 Developer, Successor and City), posting of satisfactory
Improvement Securities and submission of required insurance by Successor, City shall
release or reduce the securities posted by Developer in accordance with the provisions
of such novation and release Developer of its obligations under this Agreement.
Nothing in the novation (or other such release or assignment and assumption
agreement entered into by Developer, Successor and City) shall relieve Developer of its
obligations under any other Section of this Agreement for work or Improvements
performed by Developer prior to the novation.
19. Time of the Essence. Time is of the essence in this Agreement.
20. Time for Completion of Improvements; Extensions.
(a) Developer shall commence and diligently prosecute to completion
construction of all the Improvements required by this Agreement. The time for
Page 15 of 24
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 grant an
extension of time for such period as may be in the public interest upon the showing of
the Developer 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 in a form as approved by the City Attorney.
(b) Any such extension may be granted without notice to Developer'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 Developer 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 Developer 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 Developer,
provided that Developer 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, Developer 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 Developer 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.
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
Page 16 of 24
With a Copy to: Burke, Williams & Sorensen, LLP
1600 Iowa Ave, Suite 250
Riverside, CA 92507
Notice to Developer: Holt Opportunity Fund (Parallel-1), 2013, L.P.
P.O. Box 61426
Vancouver, WA 98666
Attn: Randy Rutherford
Phone: 360.892.0514
With a Copy To: The Rilington Group
78115 Calle Estado, Suite 205
La Quinta, CA 92253
Attn: Mickie Riley
Phone: 760.777.4088
Notice to surety:
22. Severability. The provisions of this Agreement are severable. If any
portion of this Agreement is held invalid by a court of competent jurisdiction, the
remainder of the Agreement shall remain in full force and effect unless amended or
modified in writing by the mutual consent of the Parties.
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) Developer 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 Developer 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.
Page 17 of 24
(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 Developer, 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
Developer'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, Developer 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 Developer.
(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, Developer shall provide and shall cause each
contractor or subcontractor to provide, adequate insurance for the
protection of employees not otherwise protected.
(2) Developer hereby indemnifies City for any damages or claims
resulting from failure of either Developer 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 Developer, 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 Developer, 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 Developer 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,
Developer shall either reduce or eliminate the deductibles or self-insured retentions with
respect to City, or Developer shall procure a bond guaranteeing payment of losses and
expenses.
(d) Certificates and Endorsements Verification. Developer 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.
Page 18 of 24
All certificates and endorsements must be approved by City Attorney prior to the City's
approval or execution of this Agreement. The City reserves the right to require
complete, certified copies of all required insurance policies at any time and/or to require
Developer 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 Developer; and with
respect to liability arising out of work or operations performed by or on
behalf of the Developer including materials, parts or equipment furnished
in connection with such work or operations.
(2) Primary Insurance. For any claims related to this project, the
Developer'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 Developer'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 Developer (ten (10)
days' notice for cancellation due to non-payment). Developer 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. Developer shall not commence work under this
Agreement until Developer has obtained all insurance required pursuant to this Section,
and such insurance has been approved by City; nor shall Developer allow any
Page 19 of 24
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 Developer 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 Developer. 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 in the terms of this Agreement.
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 30(a) notwithstanding, Developer 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
18 of this Agreement.
Page 20 of 24
(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 Developer. The undersigned, on behalf
of Developer, binds Developer, 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 21 of 24
IN WITNESS WHEREOFF, this agreement is executed by the Parties hereto on the date
above first written.
Developer:
HOLT OPPORTUNITY FUND City:
(Parallel-1), 2013, L.P., CITY OF CATHEDERAL CITY
A Delaware Limited partnership a M ' ipal orp ration
Charles P. McClendon City Mgr.
By: HOF MANAGEMENT LLC ATTEST:
A Delaware Limited Liability Company
Its General Partner
By: Holt Holdings LLC %.14GeL<L)P-W.1
A Delaware Limited Liability Tracey R. Martinez( City Clerk
Company
APPROVED AS T• FQ cl:
By:
Greg Ku cek, Member al ACi
City At orn-y1 5 U 1
r r
J.®A. Corella, Director of
E . neering/Public Works
APPROVED:
(Proper Notarization of Developer's Signature is required and shall be attached)
P:\APPS\WPDATA\CATH\0007 ENGINEERING\DOC\1781.24.0-FORM SIA REVISED AS OF 091515 V2 CLEAN VER.DOC
Page 22 of 24
STATE OF WASHINGTON )
) ss.
COUNTY OF CLARK )
On this IO+h day of O C to b t R , 2019, before me personally appeared
GR r9 k u bi c tit , to me personally known to be the M c m b c e of
I-101-'1-1°1d i n9 s LLC the corporation that executed the within and foregoing
instrument, and acknowledged said instrument to be the free and voluntary act and deed of
said corporation, for the uses and purposes therein mentioned, and on oath stated that (s)he
was authorized to execute said instrument and that the seal affixed, if any, is the corporate seal of
said corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and
year first above written.
,001111)////,, Signature: 1�.0.) V •
s•
o,. �y�''% Name (Print): b 1 a n A V . 1. 0
s.
•°NGT
�„ �.=� y _ NOTARY PUBLIC in and for the State of
VBI,I C• = Washington,residing at V a n C o u v t R
My appointment expires: 3/15 J a o a 0
,,„ 11 A SHI►`�`�e
93595935.1 0065711-00001 3
EXHIBIT "A"
Legal Description of Real Property Subject to this Agreement
Page 23 of 24
Montecito legal description
LOTS 28, 29 AND 30 AND LETTERED LOT E OF TRACT NO.
28561-1 AS SHOWN ON A MAP FILED IN BOOK 323, PAGES 35
TO 49, INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE
COUNTY, CALIFORNIA.
ADJUSTED LOTS 31, 32 AND 33 AS SHOWN ON LOT LINE
ADJUSTMENT NO. 2004-385, RECORDED OCTOBER 7, 2004 AS
INSTRUMENT NO. 2004-797891, OF OFFICIAL RECORDS, BEING
LOTS 31, 32 AND 33 OF TRACT NO. 28561-1, IN THE CITY OF
CATHEDRAL CITY, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 323 PAGES 35
THROUGH 49, INCLUSIVE OF MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
ADJUSTED LOTS 34 AND 35 AS SHOWN ON LOT LINE
ADJUSTMENT NO. 2004-386, RECORDED OCTOBER 7, 2004 AS
INSTRUMENT NO. 2004-797892, OF OFFICIAL RECORDS, BEING
LOTS 34 AND 35 OF TRACT NO. 28561-1, IN THE CITY OF
CATHEDRAL CITY, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 323 PAGES 35
THROUGH 49, INCLUSIVE OF MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
ADJUSTED LOTS 45 AND 46 AS SHOWN ON LOT LINE
ADJUSTMENT NO. 2004-361, RECORDED JUNE 3, 2004 AS
INSTRUMENT NO. 2004-421697, OF OFFICIAL RECORDS, BEING
A PORTION OF LOTS 45 AND 47 AND ALL OF LOT 46 OF TRACT
NO. 28561-1, IN THE CITY OF CATHEDRAL CITY, COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED
IN BOOK 323 PAGES 35 THROUGH 49, INCLUSIVE OF MAPS, IN
THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
MODIFIED LOT 47 AND ADJUSTED LOTS 49 AND 50 AS SHOWN
ON LOT LINE ADJUSTMENT NO. 2004-377, RECORDED AUGUST
24, 2004 AS INSTRUMENT NO. 2004-0667902, OF OFFICIAL
RECORDS, BEING LOTS 47 TO 49, INCLUSIVE AND A PORTION
OF LOT 50 OF TRACT NO. 28561-1, IN THE CITY OF
CATHEDRAL CITY, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 323 PAGES 35
THROUGH 49, INCLUSIVE OF MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
MODIFIED LOT 54 AND ADJUSTED LOT 55 AS SHOWN ON
CERTIFICATE OF COMPLIANCE LOT LINE ADJUSTMENT NO.
2004-379, RECORDED AUGUST 24, 2004 AS INSTRUMENT NO.
2004-0667904 OF OFFICIAL RECORDS. BEING A PORTION OF
LOTS 53, 54 AND 55 OF TRACT NO. 28561-1, AS PER MAP
RECORDED IN BOOK 323 PAGES 35 THROUGH 49, INCLUSIVE
OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF
SAID COUNTY.
ADJUSTED LOT 60 AS SHOWN ON CERTIFICATE OF
COMPLIANCE LOT LINE ADJUSTMENT NO. 2004-381,
RECORDED AUGUST 24, 2004 AS INSTRUMENT NO. 2004-
0667906 OF OFFICIAL RECORDS. BEING A PORTION OF
MERGED LOTS 59 AND 60 AND PORTION OF LOT 58 OF TRACT
NO. 28561-1, AS PER MAP RECORDED IN BOOK 323 PAGES 35
THROUGH 49, INCLUSIVE OF MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
ADJUSTED LOT H AS SHOWN ON CERTIFICATE OF
COMPLIANCE LOT LINE ADJUSTMENT NO. 2004-358
RECORDED JUNE 03, 2004 AS INSTRUMENT NO. 2004-0421694
OF OFFICIAL RECORDS. BEING A PORTION OF LOT H TRACT
NO. 28561-1, AS PER MAP RECORDED IN BOOK 323 PAGES 35
THROUGH 49, INCLUSIVE OF MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
LOTS 1 TO 41, INCLUSIVE AND LETTERED LOTS A, E, F, G AND
I OF TRACT NO. 28561 AS SHOWN ON A MAP FILED IN BOOK
343, PAGES 15 TO 22, INCLUSIVE OF MAPS, RECORDS OF
RIVERSIDE COUNTY, CALIFORNIA.
EXHIBIT "B-1"
Estimated Costs of Public/Private Improvements
Page 24 of 24
Rio Del SOL Cathedral City, CA
RIO DEL SOL
OPINION OF PROBABLE
CONSTRUCTION COSTS TO COMPLETE
BY PHASE
Prepared for:
The Holt Group(Developer)
2601 NE 162nd Avenue
Vancouver, WA 98684
Project:
Rio Del Sol Villages
Cathedral City,CA
July 20,2017
This Opinion is based on the Site Plan (Exhibit A), the Proposed Storm Drain Alignment (Exhibit B) and the "draft"
Subdivision Improvement Agreement for Tentative Tract Maps Nos 28561-1 and 28561.The purpose of which is to help
evaluate construction phasing costs.
Lots fronting improved streets are assumed to already have utility stubs to each lot.
This probable opinion of construction cost to compete does not include costs for any vertical construction(home building).
Information provided is based on improvement plans made available to us by the City of Cathedral City, some of which
have not been approved. All quantities and costs are subject to change. This Opinion represents the Consultant's best
judgment as a design professional. This Opinion is supplied only for the guidance of the Client.
MONTECITO
DEMO
DESCRIPTION UNIT QUANTIT UNIT COST TOTAL COST
Demolition
Demo Sales Parking Lot at Lot 60 EA 1 $10,000.00 $10,000.00
EA 1 $2,000.00
Catch Basin(Calle La Costa) $2,000.00
Miscellaneous Demo and Repairs LS 1 $10,000.00 $10,000.00
TOTAL OF DEMOLITION $22,000.00
Assumptions:
1. Sales parking lot approximately 4,100 s.f.
2. Misc,demo and repair is associated with the poor condition of existing pavement in Paseo Del Sol,Calle La Costa
and Corta Aguila.
GRADING
DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST
Grading
Refurbish Streets to Rough Grade Specs LF 1,100 $3.60 $3,960.00
Precise Grading LOT 57 $500.00
$28,500.00
3
PM-IO Mitigation/Stabilization and SWPPP ACRE 8 $3,000.00 $24,000.00
TOTAL OF GRADING $56,460.00
Assumptions:
1. The entire site has been rough graded. All undeveloped lots will need to be reconditioned to restore them to a
condition of finish grade.
2. Grading assumes a balanced site. Any excess soil will be stock piled elsewhere on the property. Probably within
the Elements portion of the site.
WATER IMPROVEMENTS
DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST
Water
8"D.I.P Water Main LF $40.00 $44,000.00
1,100
Wet Barrel Fire Hydrant Ass.w/GV and Tee EA 5 $3,500.00 $17,500.00
Adjust Valve Cans to Finished Street Grade EA 18 $200.00
$3,600.00
Water Service Laterals with Meter Box(no LOT 49 $450.00 $22,050.00
meter)
TOTAL OF WATER IMPROVEMENTS $87,150.00
Assumptions:
1. There is a total of 57 vacant lots as part of Montecito. Of those lots, 8 already have improvements to the lot. 49
need services.
2. Adjustment of valve cans includes all existing and proposed.
3. Fire Hydrants were assumed at the end of all cul-de-sacs and not more than 300 feet apart.
SEWER IMPROVEMENTS
DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST
Sewer
8" VCP Sewer Main LF 1,100
$40.00 $44,000.00
4'Manholes EA 5 $3,500.00 $17,500.00
Sewer Cleanouts EA 1 $250.00
$250.00
Ad'ust Manholes to Finished Street Grade EA
11 $400.00 $4,400.00
Sewer Service Laterals LOT 49 $500.00 $24,500.00
TOTAL OF SEWER IMPROVEMENTS $90,650.00
Assumptions:
1.There is a total of 57 vacant lots as part of Montecito.Of those lots,8 already have improvements to the lot.49 need
services.
2.Adjustment of sewer manholes includes all existing and proposed.
4
STREET IMPROVEMENTS
DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST
Streets
Paseo Del Sol
SF
1.0"A-C.Final Lift(1220 LF X 16') 19,520 $1.10 $21 ,472.00
All Other Streets
1.0" A.C.Final Lift(720 LF X 32') SF 23,040 $1.10 $25,344.00
2 1/2"A-C.Pavement over 4"Crushed AB(1100' SF
x 32') 35,200 $3.50 $123,200.00
LF 1,100 $15.00 $16,500.00
3'Wide Concrete Ribbon Gutter 5"Thick
6" Wide Concrete Edge Band LF 2,200 $12.00 $26,400.00
TOTAL OF STREET IMPROVEMENTS $212,916.00
Assumptions:
I. Paseo Del Sol cross section is 70'wide from R/W to RTW. Included is a 14'wide raised median,2'wide modified
wedge curb and gutter on both sides with a 10'wide landscaped shoulder on either side. There are no sidewalks.
Montecito portion of the improvements is half street only. Improvements have already been made but an asphalt
final lift is needed.The Montecito portion of Paseo Del Sol is 1220'long X 16'wide.
2.All interior streets are 36'wide from RAN to R/W with 6" wide concrete edge bands and a 3'wide Valley or Ribbon
Gutter.The paved section is 32'wide.Length of street needing full pavement is 1100'.
PRIVATE STORM DRAIN IMPROVEMENTS
DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST
Private Storm Drain
36" HDPE Storm Drain LF 110 $150.00 $16,500.00
30" HDPE Storm Drain LF 630 $95.00 $59,850.00
6'Wide Catch Basin EA $5,000.00 $10,000.00
2
Strom Drain Manhole EA 2 $3,800.00 $71600.00
PRIVATE STORM DRAIN IMPROVEMENTS $93,950.00
Assumptions:
1 .Quantities are based on the conceptual hydrology and storm drain study.
MISCELLANEOUS
DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST
Miscellaneous
Perimeter Block Walls LF 2,590 $65.00 $168,350.00
5
Common Area Landscaping SF 21,500 $5.00 $107,500.00
TOTAL OF MISCELLANEOUS $275,850.00
Assumptions:
1. Proposed perimeter wall is standard 6'tall CMU block wall.No retaining walls are anticipated as part of Montecito.
There are existing perimeter walls around Montecito, however the existing walls vary in height and material. In
many cases less than 6-feet tall, particularly along the east boundary. New walls adjacent to existing walls are
proposed due to significant differences between proposed pad elevations and the existing neighbors pad elevations.
2. Common area landscaping is a combination of 6 open space lots.
MONTECITO SUMMARY
DESCRIPTION TOTAL COST
Construction Costs
Demolition
$22,000.00
Grading
$56,460.00
Water
$87,150.00
Sewer
$90,650.00
Street
$212,916.00
Storm Drain
$93,950.00
Miscellaneous
$275,850.00
Subtotal of All Construction Costs $838,976.00
10% Contingency $83,897.00
Total of All Montecito Construction $922,873.00
Costs
MONTECITO
PRELIMINARY COST PROJECTION OF STREET COMPLETION
TRACT 28561-1 RIO DEL SOL
Calle La Costa, Corta Aquila, Paseo Del Mar and Paseo Del Sol (100%)
ON-SITE STREET REPAIR WORK PREPARED: January 30,2019
ITEM QUANTITY UNIT UNIT COST COST
Portland Cement Concrete
Remove P.C.C. Flush Curb 5 LF 18.00 $ 90.00
Remove P.C.C. Curb and Gutter 6 LF 18.00 $ 108.00
Remove and replace existing P.C.C. street areas 155 SF 15.00 $ 2,325.00
Construct P.C.C. Flush Curb 17 LF 12.00 $ 204.00
Construct P.C.C. Curb and Gutter 6 LF 15.00 $ 90.00
Construct P.C.C. Ribbon Gutter 42 LF 10.00 $ 420.00
Construct P.C.C. Spillway 1 EA 4,000.00 $ 4,000.00
Pavement
3"AC over 4"AG Base, Remove and Replace 2,951 SF 4.50 $ 13,279.50
Grind and Remove 1,922 SY 2.60 $ 4,997.20
A.C. Overlay- 0.12', Crack Fill 17,296 SF 1.50 $ 25,944.00
Sawcut 1,889 LF 1.00 $ 1,889.00
Remove existing cross gutter 16 LF 4.00 $ 64.00
Remove existing ribbon gutter 42 LF 4.00 $ 168.00
Pavement- Paseo Del Sol
3"AC over 4" AG Base, Remove and Replace 2,863 SF 4.50 $ 12,883.50
Grind and Remove 7,590 SY 2.60 $ 19,734.00
A.C. Overlay- 0.12', Crack Fill 68,309 SF 1.50 $ 102,463.50
Sawcut 577 LF 1.00 $ 577.00
SUBTOTAL: $ 189,236.70
10% CONTINGENCY: $ 18,923.67
TOTAL COST PROJECTION $ 208,160.37
COST ESTIMATE FOR BONDING PURPOSES
TRACT NO. 28561-1 AND 28561
PREPARED: DEC. 11, 2018
28561-1 MONUMENTATION
REMAINING NUMBERED LOTS TO BE MONUMENTED PER 56 LOTS $ 90.00 $ 5,040.00
ORIGINAL MAP.
TOTAL $ 5,040.00
28561 MONUMENTATION
STREET CENTERLINE MONUMENTS, TIES &CORNER RECO! 42 EA $ 240.00 $ 10,080.00
NUMBERED LOTS TO BE MONUMENTED 159 LOTS $ 90.00 $ 14,310.00
TOTAL $ 24,390.00
LOT LINE ADJUSTMENT RECORD OF SURVEY AND MONUMENTATION
RECORD OF SURVEY OF APPROX. 30 ADJUSTED
UNMONUMENTED LOTS 1 EA $ 7,260.00 $ 7,260.00
NUMBERED LOTS TO BE MONUMENTED 28 LOTS $ 96.43 $ 2,700.00
TOTAL $ 9,960.00
I TOTAL COST $ 39,390.00 I
PREPARED UNDER THE SUPERVISION OF:
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BREAKDOWN BY VILLAGE MONUMENTATION LLA& RS TOTAL
MONTECITO 7,206.00 1 0.00 $ 7,206.00
PALAZZO 10,576.00 3,201.43 $ 13,777.43
ESPANA 3,796.00 1,067.14 $ 4,863.14
ELEMENTS 7,852.00 5,691.43 $ 13,543.43
TOTAL $ 39,390.00