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HomeMy WebLinkAboutRecorded Doc 2023-019 RECORDING REQUESTED BY: 2023-0064099 CITY CLERK 03/06/2023 05:00 PM Fee: $ 0.00 WHEN RECORDED RETURN TO: page 1 of 67 Recorded in Official Records City Clerk County of Riverside ofCathedral CityPeter Aldana City Assessor-County Clerk-Recorder 0 Avenida Lal Guerrero Cathedral 9 ii KE I�I� ORIII III 1948 Cathedral City, CA 2234 SPACE ABOVE THIS LINE FOR RECORDER'S USE CITY OF CATHEDRAL CITY IMPROVEMENT AGREEMENT TRACT NO. 32557 DATE OF AGREEMENT: NAME OF DEVELOPER: EMP1 , LLC, a California Limited Liability Company (hereinafter referred to as "Developer"). NAME/NUMBER OF DEVELOPMENT: Tract No. 32557, a residential subdivision located north of Diamond Road, in the Southwest quarter of Section 8, T4S, R5E, SBM, in the City of Cathedral City 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"). DESCRIPTION OF IMPROVEMENTS: See Exhibit "B" THIS 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 EMP1, LLC, a California Limited Liability Company (hereinafter referred to as "Developer"). City and Developer are sometimes referred to hereinafter individually as a "Party", and collectively as the "Parties". Page 1 of 24 RECITALS A. Developer is the owner of certain real property located in the City of Cathedral City legally described in Exhibit "A" attached hereto and incorporated and made part of this Agreement by this reference (the "Property"). B. The Property includes Tract No. 32557, a final subdivision map previously approved and recorded, pursuant to Tentative Tract No. 32557, as originally approved by City Council by Resolution No. 2005-9 on January 26, 2005. All the requirements and conditions of approval imposed on Tentative Tract No. 32557 are incorporated into this Agreement by this reference as if set forth fully herein. C. The original subdivider of Tract No. 32557, Palm Springs Classic, LLC, executed a subdivision agreement on November 9, 2005, with the City and initiated construction of the public and private improvements within the tract, but did not complete the work. D. Developer now desires to construct single family residences on the Property and to complete the remaining public and private improvements related thereto as required as conditions of approval of Tentative Tract No. 32557. E. Developer agrees to assume the responsibility from Palm Springs Classic, LLC, for the construction and completion of the incomplete and unfinished portions of the public and private improvements which are currently the responsibility and obligation of Palm Springs Classic pursuant to its Subdivision Improvement Agreement with City, by its execution of a Termination, Release and Assumption Agreement ("TRA") with Palm Springs Classic, LLC, and City, to be executed concurrently with this Agreement. F. In consideration of the issuance by City of building permits to Developer to construct single family residences on the lots and properties in Tract No. 32557 described in Exhibit "A" (the "Development"), and of City's inspection of said residences and issuance of certificates of occupancy therefor upon their completion, Developer agrees to enter into this Agreement to complete at its own expense all of the public and private improvements and land development as required by the conditions of approval of Tentative Tract No. 32557 as related to said lots. Developer 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. G. Improvement Plans (the "Plans") for the construction, installation, and completion of the public and private improvements have been or will be prepared by Developer, subject to approval by the Director of Engineering. The City has adopted standards (hereinafter "Standards") for the construction and installation of improvements within the City, and the Plans have been or will be prepared in conformance with such Standards. The Plans are or will be on file in the Office of the Director of Engineering and are incorporated into this Agreement by this Page 2 of 24 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 Director of Engineering. 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 Director of Engineering The estimated cost of these improvements is attached hereto as Exhibit "C" 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 "C". The estimated cost of the sewer and water improvements in Exhibit "C" were prepared and submitted by Desert Water Agency (DWA), which will be the owner and operator of the sewer and water system upon their completion by EMP1 and acceptance by DWA. NOW, THEREFORE, in consideration of the issuance by City of building permits to Developer to construct single family dwellings on the lots and properties described as "the Property" in Exhibit "A", and of City's inspection of said residences and issuance of certificates of occupancy therefor upon their completion, Developer and City hereby agree as follows: 1. Subdivider's Obligation to Construct Improvements. (a) In constructing and installing the Improvements (as hereinafter defined), Developer shall comply with all the requirements and conditions of the Tentative Map, and any amendments thereto, as well as the provisions of the Subdivision Laws. (b) Developer 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" and "C", (hereinafter collectively the "Improvements"), within twelve (12) months of the date of execution of this Agreement unless a time extension is granted by the City as authorized by Section 18 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) 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 easements or authorizations therefor to accommodate the Subdivision. Page 3 of 24 (g) Developer 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) Developer shall at all times guarantee Developer'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: Private Street and Drainage Improvements: (i) One Hundred Ninety Five Thousand Three Hundred DOLLARS ($ 195,300.00) 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 and private improvements as set forth in Exhibits "C-2 and C-3"; and (ii) Ninety Seven Thousand Six Hundred Fifty DOLLARS ($ 97,650.00) 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) Nineteen Thousand Five Hundred Thirty DOLLARS ($ 19,530.00) 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; and Sewer Improvements: (iv) One Hundred Fifty Thousand DOLLARS ($ 150,000.00) 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 "C-3"; and (v) Seventy Five Thousand DOLLARS ($ 75,000.00) 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 (vi) Fifteen Thousand DOLLARS ($ 15,000.00) in the form of a Warranty Bond or cash deposit with the City to guarantee or warranty the sewer Improvement work done Page 4 of 24 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 Water Improvements: (vii) Two Hundred Thirteen Thousand DOLLARS ($ 213,000.00) to ensure faithful performance of the construction and installation of the water improvements required by Desert Water Agency, which is 100% of the estimated cost of the water improvements as set forth in Exhibit "C-3"; and (viii) One Hundred Six Thousand Five Hundred DOLLARS ($ 106,500.00) to secure payment to any contractor, subcontractor, persons renting equipment or furnishing labor materials for the water improvements required to be constructed or installed pursuant to this Agreement ("Labor & Materials Security"), which amount is 50% of the estimated cost of the water improvements; and (ix) Twenty One Thousand Three Hundred DOLLARS ($ 21,300.00) in the form of a Warranty Bond or cash deposit with the City to guarantee or warranty the water 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. (viii), 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; and Monuments: (x) Three Thousand Three Hundred DOLLARS ($ 3,300.00) 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 "C-2". (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 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. Page 5 of 24 (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) Developer understands and agrees that the Desert Water Agency is the local sewer and water purveyor, that the sewer and water 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. 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 5 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 of this Agreement by the City Council . 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. 4. Inspections; Final Acceptance and Certification of Improvements. (a) Developer 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 Developer shall request a final inspection by the Director of Engineering or his/her authorized representative. Following receipt of such request, the Director of Engineering Page 6 of 24 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 acceptance or certification by the City have been completed in accordance with this Agreement, then the Director of Engineering shall certify the completion of the Improvements by placing a resolution on the next most convenient City Council agenda seeking: (1) formal acceptance of the Public Improvements or certification of the private 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 Improvements shall not constitute a waiver of any defects by City. (ii) With regard to the sewer and water 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 and/or water 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 and/or water 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 or water improvements shall not constitute a waiver of any defects by City or Desert Water Agency. (c) Developer shall bear all costs of inspection and certification of all the Improvements in the tract. 5. Release of Improvement Securities. Except as otherwise provided in this Agreement (including, without limitation, in Section 31 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 and private improvements, and after acceptance or certification of the Improvements by the City Council as specified in Section 4(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) and (a)(ii) 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 Page 7 of 24 the Developer, 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 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 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 Developer 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 5, 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 9, 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 Developer for such services; and (ii) centerline tie sheets prepared in a manner acceptable to the Director of Engineering showing the locations of centerline monuments in existing public or private streets. Page 8 of 24 (e) The Performance Security posted for the sewer or water 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 4(b)(ii) above and after approval thereof by the City Council. Partial releases of the performance security posted for sewer and water improvements may be permitted subject to the provisions of Subsections (a)(i) and (a)(ii) hereof only upon the Director of Engineering's receipt of written approval of the partial release from the Desert Water Agency. (f) The Labor & Materials Security posted for the sewer or water improvements to be owned and operated by Desert Water Agency hall, ninety (90) days after the City's recordation of the Notice of Completion described in this Section 5, 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. (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. 6. 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 done by Developer 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 Developer 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. 7. Permits. Developer 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. 8. Notice of Breach/Default of Subdivider. (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 failure to timely cure any Page 9 of 24 defect in the Improvements; (3) Developer's failure to perform substantial construction work for a period of twenty (20) 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 Director of Engineering 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 8(b), above, the Director of Engineering 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 20 of this Agreement. (d) In the event of service of the notice of default specified in Subsection 8(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. (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 Page 10 of 24 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 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 31, below, of this Agreement); and (4) withholding of Building permits, inspections, 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 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 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. 9. 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 and water improvements, Developer 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 Developer fails to fulfill any of the requirements of this Agreement or the Plans, Developer 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 Developer fail to act promptly or in accordance with the repair/replacement requirements set forth herein, Developer 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 Page 11 of 24 written notice to Developer and to Developer's surety, and Developer agrees to pay City and/or DWA for the cost of such work. (c) Should the City or DWA, in the case of sewer and water 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 Developer can be notified, City and/or DWA 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. 10. 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 Subdivider's obligations under this Agreement. 11. Injury to Improvement Work; Risk of Loss. Until such time as the Public or private Improvements, sewer improvements, and water improvements are accepted by City, Developer shall be responsible for and bear the risk of loss to any of the Improvements constructed or 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 Developer. 12. 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. 13. Developer's Obligation to Warn Public During Construction. Until final acceptance of the Public and private Improvements pursuant to Section 4(b)(i), and acceptance of the sewer and water improvements by Desert Water Agency pursuant to Section 4(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 on or around the work site. 14. 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 and water 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. Page 12 of 24 15. 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 (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 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 15 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 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, and shall not secure, Developer's obligations under this Section 15. Page 13 of 24 16. 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. 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 shall 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 replacement Improvement Securities and submission of required insurance by Successor, City shall immediately release the Improvement Securities posted by Developer in accordance with the provisions of such novation (or other such release or assignment and assumption agreement entered into by Developer, Successor and City), and Developer 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 Developer, Successor and City). 17. Time of the Essence. Time is of the essence in this Agreement. 18. 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 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 Developer of good cause. Any such extension granted shall be subject to the limitations and conditions set forth in Subsections 18(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 Page 14 of 24 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 Director of Engineering. (e) Any extension of time granted under this Section 18 shall be evidenced by an Amendment to this Agreement 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 Developer's surety. 19. No Vesting of Rights. Performance by Developer of this Agreement shall not be construed to vest Developer's rights with respect to any change in any zoning or building law or ordinance. 20. 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 Page 15 of 24 Notice to Developer: EMP1, LLC South Coast Corporate Center 3080 Bristol Street Sixth Floor, Suite 630 Costa Mesa CA 92626 Attn: Jeffrey Benice, Manager Phone: 714-641-0507 E-mail: jeffreybenice@jeffreybenice.com With a Copy To: Notice to surety: Everest Reinsurance Company 1340 Treat Blvd., Suite 450 Walnut Creek, CA 945597 21. Severability. The provisions of this Agreement may be severed from the remainder of this Agreement in accordance with the provisions of this Section 21 and applicable law. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified in writing by the mutual consent of the Parties. 22. 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. 23. 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. (ii) Commercial Vehicle/Automotive Liability policy covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per Page 16 of 24 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. 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 32557. The City reserves the right to require complete, certified copies of all required insurance policies at any time and/or to require Developer to provide reports or status updates to evidence compliance of its contractors and subcontractors with the provisions of this Section. Page 17 of 24 (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 be issued permits to 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 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 23, 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. Page 18 of 24 24. 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. 25. Incorporation of Recitals. The Recitals to this Agreement are hereby incorporated into the terms of this Agreement. 26. 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. 27. 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. 28. 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 28(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 or approved assignment is executed in accordance with the provisions of Section 16 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. 29. Miscellaneous. Developer 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. 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 Page 19 of 24 on behalf of Developer. The undersigned, on behalf of Subdivider, binds Developer, its partners, successors, executors, administrators, and assigns with respect to the terms and provisions of this Agreement. 31. Reversion to Acreage. Nothing in this Agreement shall be deemed, construed, or interpreted to waive or impair in any way Developer'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 Developer 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, Developer 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 Developer (if any) shall be immediately returned to Developer 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 20 of 24 IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto on the date above first written. Developer: City: EMP1, LLC CITY OF CATHEDRAL CITY A California Limited Lia 'lit Company a u I ipal Corp ration By: J. Ran of h Poag, Man er Charles P. McClendon City Manager ATTEST: JintliA)- Tracey R. l-t osillo C.M.C. City Clerk APPROVED AS TO F . City Attorney APPROVED AS TO CONTENT: ilb John A orella, Director of Engi =-ring/Public Works (Proper Notarization of Subdivider's Signature is required and shall be attached) Page 21 of 24 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared J. Randolph Poag who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/site/I-Key executed the same in his/her/016i authorized capacity(ies), and that by his/"�r eir signature* on the instrument the person(s), or the entity upon behalf of which the person(-s-) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SUSAN E. MORALES COMM.#2279182 - NOTARY PUBLIC-CALIFORNIA� a76.0 4_ . r),— .0 ORANGE COUNTY air) , My Comm.Expires March 28,2023 Notary Public Signature (Notary Public Seal) „ , ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Improvement Agreement wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. Number of Pages 24 Document Date 9/28/22 • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. ❑ Attorney-in-Fact Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. • Other Manager • Indicate title or type of attached document,number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. EXHIBIT "A" Legal Description of Real Property Subject to this Agreement The "Property" In the City of Cathedral City, County of Riverside, State of California, being a portion of the Southwest quarter of Section 8, Township 4 South, Range 5 East, San Bernardino Meridian, more particularly described as: Lots 1 through 11, and Lettered Lots "A" through "D", all as shown on the map of Tract 32557, filed in Book 394, at Pages 78 through 80, inclusive, of Maps, in the office of the County Recorder of said County, The above lots are described in the Grant Deed recorded on October 7, 2021, as Instrument No. 2021-0596434, in Official Records of said Riverside County. Assessor Parcels: 675-520-001 through 014 Page 22 of 24 N Le) 7 CC 11 Le, Li.) N O N 4 o, s O N 1 i O x a 9- `U K N O x M og y OL A V!O F W ba° ! t ex) �,t 3 9a • N �n -V ,•�6 N O L // Q�V �, .(A 't 1 7O V O �� O `.60' �. tlWl 4 O < Z V F f , Y! VCA X o a NO t:; ç'i ® COo0 w O ::: .7 li at pg W F P91 9i. V 9L•U i `*. 9P[9 1 I MLtSZWOON r ' r W y w •-1 = 4,........ . ._,...; ...,,,, (11D _..., ....= ISM- Rim go trs M/▪1~IN{il n U to W.-02 •3. et C El▪g Ca tn on 41 ilia 95e N ?4Z ,"Nk 1 EXHIBIT "B" GENERAL DESCRIPTION OF IMPROVEMENTS IN TRACT NO. 32557 The public and private improvements to be constructed include but are not limited to improvement of all or portions of private streets Emerald Way and Sapphire Way, and open space Lots "C" and "D". The above improvements include but are not limited to street grading and paving, construction of curbs, gutters, cross gutters, sidewalks, parkway improvements, street lighting, cross gutters, entry gates, storm drains and inlets, dry wells, installation and extension of utility services including water, sewer, telephone, electrical power, gas, and other communication systems, to serve all lots and residences in the tract. The improvements also include the setting and placement of all survey monuments, property corners, centerline points and other survey monuments and points as shown on the recorded map of Tract No. 32557, and providing City with centerline ties sheets, related to the streets and lots being improved and developed which have not yet been set, or which have been lost or destroyed. Improvement Securities are required to be posted, as outlined in Section 2(a) of this Agreement, based upon a cost estimate to be prepared by the Developer's engineer and Desert Water Agency, and subject to the review and approval by the City Director of Engineering. An estimate of the cost of the required improvements and monumentation is attached as Exhibit "C-2" and "C-3". Page 23 of 24 EXHIBIT "C-1" ESTIMATED COST OF IMPROVEMENTS TRACT 32557 The following cost summary is based upon the attached improvement estimate worksheets prepared by MSA dated July 1, 2022, and Desert Water Agency letter dated June 22, 2022. Private Street Improvements: 1. Grading improvements:' $ 5,500 2. Street improvements: 140,343 3. Drainage improvements: 24,010 Subtotal: $ 169,853 15% continencies: 25,478 Total: $ 195,331 Rounded Total: $ 195,300 Monuments: $ 3,300 Sewer and Water improvements (DWA): Sewer improvements: $ 150,000 Water improvements: $ 213,000. Page 24 of 24 EXHIBIT "C-1" IMPROVEMENT SECURITY SUMMARY: TRACT 32557 PRIVATE STREET AND DRAINAGE IMPROVEMENTS: FAITHFUL PERFORMANCE BOND, At 100% of public and private improvements: $ 195,300 PAYMENT BOND (LABOR & MATERIALS), At 50% of public and private improvements: $ 97,650 WARRANTY BOND, at 10% of total, posted at Acceptance of improvements: $ 19,530 SEWER IMPROVEMENTS: FAITHFUL PERFORMANCE BOND, At 100% $ 150,000 Of sewer improvements, per DWA: PAYMENT BOND (LABOR & MATERIALS) At $ 75,000 50% of sewer improvements, per DWA: WARRANTY BOND, At 10% of sewer improve- $ 15,000 ments, posted at acceptance of sewer system: WATER IMPROVEMENTS: FAITHFUL PERFORMANCE BOND, at 100% of $ 213,000 Water improvements, per DWA: PAYMENT BOND (LABOR & MATERIALS) at 50% $ 106,500 Of water improvements, per DWA: WARRANTY BOND, at 10% of water improve- $ 21,300 ments, posted at acceptance of water system: MONUMENT CASH SECURITY: $ 3,300 EXHIBIT "C-2" ENGINEER'S OPINION OF PROBABLE COST FOR TRACT NO. 32557 ONSITE STREET AND STORM DRAIN IMPROVEMENTS Prepared for: EMP1, LLC 3080 Bristol Street, Suite 630 • Costa Mesa, CA 92626 Tract Map No. 32557 Project Location: Escena in the City of Cathedral City QRofE38/ P4. 4, .oft,�ly -70 v� 99 i C43880 July 1, 2022 ..•;�� �j' r ��9rF C i V , •OF O��`! MSA JOB # 1609 MSA CONSULTING, INC. ;,Y > PLANNING > CIVIL ENGINEERING > LAND SURVEYING 34200 Bob Hope Drive, Rancho Mirage, CA 92270 760.320.9811 msaconsuitinginc.com Page 1 of 3 ONSITE IMPROVEMENTS ... Sd+4�4!soar A+3.. no °k' Mobilization and Re-S•innin• Pads EA 11 $500.00 $5 500.00 N7 COY • •Y` E� � . . p} �iit i n -m # d`. ,„e 0 a ' : .. P. =�* j ' r 0 dui ® *° + :v:-S ` w = 4 a - +�d . w ®2' t ` —7.1 yS te . e` 1 .P Construct 3"A.C. Pavement Over 4.5" Class II Aggregate Base. SF 16,825 $5.50 $92,537.50 Construct 6" Wedge Curb per Detail on Sheet No.3. LF 936 $30.00 $28,080.00 Remove Existing Barricade. _ LF 72 $10.00 $720.00 Construct P.C.C. Cross Gutter per Riverside County Standard Drawing No. 209. SF 933 $15.00 $13,995.00 Construct Curb Inlet Catch Basin per Riverside County Standard Drawing No.300 (See Plan for "W" and "H"). EA 2 $10,000.00 $20,000.00 Construct Local Depression per Riverside County Standard Drawing No. 311 (Case "C"). LF 34 $40.00, $1,360.00 Install Stop Sign R1-1 (30"x30") AND Sign Post.Apply 12"Thermoplastic Limit Line (Stop Line) and Stop Legend per Detail on Sheet No. 3. EA 1 $350.00 $350.00 Sawcut and Smooth Join Existing. LF 36 $10.00 $360.00 Construct Curb Transition per Detail on Sheet No. 3. LF 60 $30.00 $1,800.00 Construct 6"Type "A-6" Curb and Gutter per Riverside County Standard Drawing No.200. LF 79 $30.00_ $2,370.00 Install 18" R.C.P. Storm Drain (D=2000). LF 11 $150.00 $1,650.00 Page 2 of 3 Remove Existing Bulkhead and Connect Proposed 18" R.C.P. Storm Drain. EA 2 $500.00 $1,000.00 Adjust Existing Manhole To Grade. EA 1 $1,000.00 $1,000.00 Install Object Marker 0M4-1 (Red) per MUTCD 2003 Edition. EA 3 $100.00 $300.00 .. �E1014 WXX ~ z tUNtTiCOSTi CA ST • Monumentation LS 11 $300.00 $3 300.00 SUM MARY 'OPZ a d a x ' TOTAL O -s .wwa w m •> y k°! z",„' a x�ee s�^,.,v —r-. �' r4, a Y s.. �, 77 Grading $5,500.00 Street and Storm Drain $165,522.50 Miscellaneous $3,300.00 15% CONTINGENCY $26,148.38 0 Assumptions: 1 These quantities are based on the Tract Map No. 32557 Street and Storm Drain Improvement Plan completed on 06/21/2022. 2 The above opinion does not include raw land, legal fees, agency permits, professional engineering fees, construction phasing, bonds, financing/carrying costs, construction staking,soils testing, accounting or construction management. 3 MSA Consulting Inc. makes no representation concerning the estimated quantities and cost figures other than that all such figures are opinions only and the Engineer shall not be responsible for any fluctuations in cost factors or the actual quantities shown. Page 3 of 3 Kristin Bloomer,President(Division 5) ral Manager-Chief Engineer �ES.�R Mark S. Krause,Gene James Cioffi,Vice'President(At large) Best. Best&Krieger,General Counsel Joseph K.Stuart,.Secretary-Treasurer(At large) Krieger&Stewart,Consulting Engineers Patricia G.Qygar..Direr. (At large) 000TekWATER Paul Ortega,Director(Division 4) EXHIBIT "C-3" June 22,2022 Lennar Communities 391 North Main Street,Suite 301 Corona,CA 92880. RE; ESCENATRACT.32557—CITY BOND ESTIMATES Gentlemen: This Agency has reviewed the water,and/or sewer improvement:plans for the above referenced project. Said plans have not been signed by this Agency's Engineer. As stipulated in the Subdivision Map Act,improvement bonds for the domestic water facilities and/or sanitary sewer facilities are to be secured by the Local Agency prior.to approval of the subdivision map. This Agency has determined the required bond amounts for this project and they are as follows: Domestic Water 1. Faithful Performance Bond: $ 213,000.00 2. Labor&Material Performance Bond: $ 106,000.00 Sanitary Sewer 1. Faithful Performance Bonds $ 150,000.00 2. Labor&Material Performance Bond: $ 75,000.00 These amounts shall not be released until the,obligation is performed to the satisfaction of the Desert WaterAgency. Please notify this Agency In writing to request approval to release said.amounts. If you have any questions,please call me at the number listed below, Sincerely, S,E.Jgovidwa,org, aD- TWATER AGENCY, Jose Govea .%., Jose_Govea Engineering Technician JG/Idj LDJfSTAFF/Govea/Escena 32557 Bond Desert Water Agency—1200.South Gene Autry Trail,Palm Springs,.CA 92264 PO.Box 171 Q,Palm Springs,CA 92263-17 10 I Phone;.(7601 3 23-497 1 I'Fax:(7601325-650S.I WPhcitP•..�. .,.i., Bond No.: ES00012286 Bond Fee: $2,930.00/annual FAITHFUL PERFORMANCE BOND SUBDIVISION IMPROVEMENT AGREEMENT TRACT NO. 32657 (California Government Code § 66499.1) PRIVATE STREET IMPROVEMENTS WHEREAS, the City Council of the City of Cathedral City, State of California, and EMP1, LLC, a California Limited Liability Company (hereinafter designated as "Principal"), have entered into an agreement pursuant to California Government Code section 66462 whereby Principal agrees to install and complete certain designated private improvements, which said agreement, dated September , 2022, and identified as "Subdivision Improvement Agreement, Tract No. 32557" (hereinafter designated as "Agreement"), is hereby referred to and made a part hereof; and WHEREAS, said Principal is required under the terms of said Agreement, to furnish a good and sufficient bond for the faithful performance of said Agreement; and NOW, THEREFORE, we, the Principal and Everest Reinsurance Company , (hereinafter designated as "Surety"), a corporation organized and doing business under and by virtue of the laws of Delaware and duly licensed to transact surety business in the State of California, are held firmly bound unto the City of Cathedral City (hereinafter designated as "City") in the penal sum of One Hundred Ninety Five Thousand Three Hundred Dollars ($ 195,300.00), lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in said Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of said Agreement or to the work or to the specifications. 1 Bond No.: ES00012286 Bond Fee: $2,930.00/annual IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety named herein, on September 28th , 2022 APPROVED AS TO CONTENT: PRINCIPAL: City of Cathedral City EMP1, LLC A i al Corpora 'on A California L. ite ility Company By: Charles P. McClendon J. Rand ph Poag, Man ger City Manager APPROVED AS TO FORM: SURETY: City of Cathedral Ci By Everest Reinsurance Company 21� S r4 City Attorney Surety Company APPROVED: A )L_5- City of Cat edr I Ci S. nature of Authorized Representative By Beata A. Sensi,Attorney-in-Fact r. f ngineering ublic Works Printed name 1340 Treat Blvd., Suite 450, Walnut Creek, CA 94597 Surety Address and City (714) 516-2960 & Swolf@rohmins.com Contact Phone and E-mail Principal and Surety signatures must be notarized and Acknowledgment of Authorized Representative/Attorney in Fact must be attached for both Principal and Surety. Three (3) originals must be executed. 2 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared J. Randolph Poag who proved to me on the basis of satisfactory evidence to be the persons}whose name fs) is/afe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/tier/their authorized capacity(res), and that by his her/their si nature on the instrument the person (s),signature* p (s), or the entity upon behalf of which the persons-) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SUSAN E.MORALES COMM.#2279182 "'-es NOTARY PUBLIC-CALIFORNIAK ram, u� /-�,� IPYN -� , / I0.7 % ,C ORANGE COUNTY otary Public Signature (Notary Public Seal) My Comm.Expires March 28,2023 ♦ . ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Performance& Payment Bonds wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9�28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this 0 Individual (s) information may lead to rejection of document recording. O Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. ❑ Attorney-in-Fact . Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Manager Indicate title or type of attached document,number of pages and date. ❑ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared Beata A. Sensi who proved to me on the basis of satisfactory evidence to be the persons) whose names-) is/sfe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in tris/heritheif authorized capacityfies), and that by fris/her/their signatures) on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. SUSAN E. MORALES WITNESS myhandand officialseal. o � COMM.#2279182 -2 NOTARY PUBLIC-CALIFORNIAg -�` ORANGE COUNTY (4,60etert ' rn My Comm.Expires March 28,2023 Notary Public Signature ���///y��y// (Notary Public Seal) •— ♦ ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Bond#ES00012286 wording does not require the California notary to violate California notary law. (Title or description of attached bon p� document) • State and County information must be the State and County where the document Everest Reinsurance Company signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9/28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they,is/are)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. El Attorney-in-Fact Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. 4. Indicate title or type of attached document,number of pages and date. ❑ Other Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. Everest Reinsurance Company I�c 461 5th Avenue-4f4 Floor J New York,N.Y 10017 ,r ER SURETY BOND SEAL ADDENDUM EVEREST REINSURANCE COMPANY Due to logistical issues associated with the use of traditional seals during the COVID-19 pandemic, Everest Reinsurance Company("Everest") has authorized its Attorney-in-Fact to affix Everest's corporate seal to any bond executed on behalf of Everest by any such Attorney-in- Fact by attaching this Addendum to said bond. To the extent this addendum is attached to a bond that is executed on behalf of Everest by its Attorney-in-Fact, Everest hereby agrees that the seal below shall be deemed affixed to said bond to the same extent as if its raised corporate seal was physically affixed to the face of the bond. Dated this 7th day of April 2020. EVEREST REINSURANCE COMPANY By: Anthony Romano—Vice President&Global Head of Surety uran,,' `, r.. ` c a SEAL 1973 .,= ri EVE R ES\ POWER OF ATTORNEY EVEREST REINSURANCE COMPANY DELAWARE KNOW ALL PERSONS BY THESE PRESENTS: That Everest Reinsurance Company, a corporation of the State of Delaware ("Company") having its principal office located at 477 Martinsville Road, Liberty Corner, New Jersey 07938, do hereby nominate, constitute,and appoint: Shane Wolf,Cathy S.Kennedy,Beata A.Senoi,Cheryl L.Thomas,Todd M.Rohm its true and lawful Attorney(s)-in-fact to make,execute,attest,seal and deliver for and on its behalf,as surety,and as its act and deed, where required,any and all bonds and undertakings in the nature thereof,for the penal sum of no one of which is in any event to exceed UNLIMITED,reserving for itself the full power of substitution and revocation. Such bonds and undertakings,when duly executed by the aforesaid Attorney(s)-in-fact shall be binding upon the Company as fully and to the same extent as if such bonds and undertakings were signed by the President and Secretary of the Company and sealed with its corporate seal. This Power of Attorney is granted and is signed by facsimile under and by the authority of the following Resolutions adopted by the Board of Directors of Company("Board")on the 28th day of July 2016: RESOLVED, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby appointed by the Board as authorized to make,execute, seal and deliver for and on behalf of the Company, any and all bonds, undertakings,contracts or obligations in surety or co-surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to attest to the execution of any such bonds, undertakings, contracts or obligations in surety or co-surety and attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute,on behalf of the Company,bonds and undertakings in surety or co-surety with others,and that the Secretary or any Assistant Secretary of the Company be,and that each of them is hereby authorized to attest the execution of any such power of attorney,and to attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be affixed to such powers of attorney or to any certificate relating thereto by facsimile,and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond,undertaking,contract or obligation in surety or co-surety with others to which it is attached. IN WITNESS WHEREOF, Everest Reinsurance Company has caused their corporate seals to be affixed hereto,and these presents to be signed by their duly authorized officers this 28th day of July 2016. ttraR` Everest Reinsurance Company `dryayr,.` SEAL $ cetAwook * Attest: Nicole Chase,Assistant Secretary By:Anthony Romano,Vice President On this 28th day of July 2016,before me personally came Anthony Romano,known to me,who,being duly sworn,did execute the above instrument;that he knows the seal of said Company; that the seal affixed to the aforesaid instrument is such corporate seal and was affixed thereto;and that he executed said instrument by like order. LINDA ROBINS / Notary Public,State of New York No 01 R06239736 Qualified in Queens County u�• ✓ Term Expires April 25,2023 Linda Robins,Notary Public IN WITNESS WHEREOF,I have hereunto set my hand and affA ektile s�A;c0—jmp}ny,at the Liberty Corner,this 28th day of September 2022 . "" " r. .t"; • q • ES 00 01 04 16 , , • Bond No.: ES00012286 Bond Fee: included with the Performance Bond LABOR AND MATERIAL BOND SUBDIVISION IMPROVEMENT AGREEMENT TRACT NO. 32557 (California Government Code § 66499.2) PRIVATE STREET IMPROVEMENTS WHEREAS, the City Council of the City of Cathedral City, State of California, and EMP1, LLC, a California Limited Liability Company (hereinafter designated as "Principal") have entered into an agreement whereby the Principal agrees to install and complete certain designated private improvements, which agreement, dated September 2022 and identified as "Subdivision Improvement Agreement, Tract No. 32557" (hereinafter designated as "Agreement"), is hereby referred to and made a part hereof; and WHEREAS, under the terms of the Agreement, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Cathedral City (hereinafter designated as "City") to secure the claims to which reference is made in Title 3, (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. NOW, THEREFORE, the Principal and the undersigned as corporate surety (hereinafter designated as "Surety"), are held firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Agreement and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the sum of Ninety Seven Thousand Six Hundred Fifty Dollars ($ 97,660.00), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition. 1 Bond No.: ES00012286 Bond Fee: included with the Performance Bond IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety named herein, on September 28th , 2022 APPROVED AS TO CONTENT: PRINCIPAL: City hedral City EMP1, LLC A California Li ited ' ility Company Charles P. McClendon By: City Manager J. Ran Iph Poag, Manag r APPROVED AS TO FO SURETY: City of Cathe ity /' Everest Reinsurance Company By Sure Company il City Attorney • A • Si toe of Authorized Representative ;1 ) APPROVED: 9R ` P , 4 - City of Cathed al ity Beata A. Sensi,Attorney-in-Fact �.�✓,� � " By Printed name EY' , Dir. f E g' ee ing/P blic Works __ 1340 Treat Blvd., Suite 450, Walnut Creek, CA 94597 • - • Surety Address and City (714) 516-2960 &Swolf@rohmins.com Contact Phone and E-mail Principal and Surety signatures must be notarized and Acknowledgment of Authorized Representative/Attorney in Fact must be attached for both Principal and Surety. Three (3) originals must be executed. 2 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared J. Randolph Poag who proved to me on the basis of satisfactory evidence to be the person(s)whose names) is/afe subscribed to the within instrument and acknowledged to me that he/s#tethey executed the same in his/her/thee authorized capacity(les), and that by signature(s) on the instrument the person(s),(s� p (s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. rowomor.wm,wobv.wwwftwAs SUSAN E. MORALES WITNESS my hand and official seal. o ;;� COMM.#2279182 2 z = '�"ram, ' NOTARY PUBLIC-CALIFORNIAM ORANGE COUNTY « "C2 Moe) My Comm.Expires March 28,2023 4.242 Notary Public Signature (Notary Public Seal) • ♦ ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Performance&Payment Bonds wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9�28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is lace)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment for. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. ❑ Attorney-in-Fact . Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Manager Indicate title or type of attached document,number of pages and date. O Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared Beata A. Sensi who proved to me on the basis of satisfactory evidence to be the personfsj whose names-) is/are subscribed to the within instrument and acknowledged to me that he/she/trey executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature es) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. SUSAN E. MORALES WITNESS my hand and official seal. . COMM.#2279182 zz 4-4,4,,• NOTARY PUBLIC-CALIFORNIAK &Warn ORANGE COUNTY • � My Comm.Expires March 28,2023 eng..& Notary Public Signature (Notary Public Seal) • • ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Bond#ES00012286 wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. Everest Reinsurance Company • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9/28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/ace)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. Attorney-in-Fact Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Indicate title or type of attached document,number of pages and date. ❑ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. Everest Reinsurance Company �� 461 5th Avenue-4" Floor J New York,N.Y 10017 nVE R Usk SURETY BOND SEAL ADDENDUM EVEREST REINSURANCE COMPANY Due to logistical issues associated with the use of traditional seals during the COVID-19 pandemic, Everest Reinsurance Company("Everest") has authorized its Attorney-in-Fact to affix Everest's corporate seal to any bond executed on behalf of Everest by any such Attorney-in- Fact by attaching this Addendum to said bond. To the extent this addendum is attached to a bond that is executed on behalf of Everest by its Attorney-in-Fact, Everest hereby agrees that the seal below shall be deemed affixed to said bond to the same extent as if its raised corporate seal was physically affixed to the face of the bond. Dated this 7th day of April 2020. EVEREST REINSURANCE COMPANY By: Anthony Romano—Vice President &Global Head of Surety e`Asuran,. . L SEAL 1973 :: � Jr Z-vE R ES'\ POWER OF ATTORNEY EVEREST REINSURANCE COMPANY DELAWARE KNOW ALL PERSONS BY THESE PRESENTS: That Everest Reinsurance Company, a corporation of the State of Delaware ("Company") having its principal office located at 477 Martinsville Road, Liberty Corner, New Jersey 07938, do hereby nominate, constitute,and appoint: Shane Wolf,Cathy S.Kennedy,Beata A.Senoi,Cheryl L.Thomas,Todd M.Rohm its true and lawful Attorney(s)-in-fact to make,execute,attest,seal and deliver for and on its behalf,as surety,and as its act and deed, where required,any and all bonds and undertakings in the nature thereof,for the penal sum of no one of which is in any event to exceed UNLIMITED,reserving for itself the full power of substitution and revocation. Such bonds and undertakings,when duly executed by the aforesaid Attorney(s)-in-fact shall be binding upon the Company as fully and to the same extent as if such bonds and undertakings were signed by the President and Secretary of the Company and sealed with its corporate seal. This Power of Attorney is granted and is signed by facsimile under and by the authority of the following Resolutions adopted by the Board of Directors of Company("Board")on the 28th day of July 2016: RESOLVED, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby appointed by the Board as authorized to make,execute,seal and deliver for and on behalf of the Company, any and all bonds, undertakings,contracts or obligations in surety or co-surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to attest to the execution of any such bonds, undertakings, contracts or obligations in surety or co-surety and attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute,on behalf of the Company,bonds and undertakings in surety or co-surety with others, and that the Secretary or any Assistant Secretary of the Company be,and that each of them is hereby authorized to attest the execution of any such power of attorney,and to attach thereto the corporate seal of the Company. RESOLVED,FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be affixed to such powers of attorney or to any certificate relating thereto by facsimile,and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond,undertaking,contract or obligation in surety or co-surety with others to which it is attached. IN WITNESS WHEREOF, Everest Reinsurance Company has caused their corporate seals to be affixed hereto,and these presents to be signed by their duly authorized officers this 28th day of July 2016. bra Everest Reinsurance Company Q' dt�+tq ti V rf SEAL I , un * Attest: Nicole Chase,Assistant Secretary By:Anthony Romano,Vice President On this 28th day of July 2016,before me personally came Anthony Romano,known to me,who,being duly sworn,did execute the above instrument;that he knows the seal of said Company; that the seal affixed to the aforesaid instrument is such corporate seal and was affixed thereto;and that he executed said instrument by like order. LINDA ROBINS /• Notary Public,State of New York No 01R06239736 Qualified in Queens County ,� y CL^ Term Expires April 25,2023 f, • Linda Robins,Notary Public • , ....- • IN WITNESS WHEREOF,I have hereunto set my head„enc;:a1Iixe ;7 J,2ff i#Company,at the Liberty Corner,this 28th day of September 20 22 Cr) Es000loals .r.`•^��� �4'. Bond No.: ES00012287 Bond Fee: $2,250.00/annual FAITHFUL PERFORMANCE BOND SUBDIVISION IMPROVEMENT AGREEMENT TRACT NO. 32557 (California Government Code § 66499.1) SEWER IMPROVEMENTS WHEREAS, the City Council of the City of Cathedral City, State of California, and EMP1, LLC, a California Limited Liability Company (hereinafter designated as "Principal"), have entered into an agreement pursuant to California Government Code section 66462 whereby Principal agrees to install and complete certain designated public sewer system improvements, which said agreement, dated September , 20 22, and identified as "Subdivision Improvement Agreement, Tract No. 32557" (hereinafter designated as "Agreement"), is hereby referred to and made a part hereof; and WHEREAS, said Principal is required under the terms of said Agreement, to furnish a good and sufficient bond for the faithful performance of said Agreement; and NOW, THEREFORE, we, the Principal and Everest Reinsurance Company , (hereinafter designated as "Surety"), a corporation organized and doing business under and by virtue of the laws of Delaware and duly licensed to transact surety business in the State of California, are held firmly bound unto the City of Cathedral City (hereinafter designated as "City") in the penal sum of One Hundred Fifty Thousand Dollars ($ 150,000.00), lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in said Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of said Agreement or to the work or to the specifications. 1 Bond No.: ES00012287 Bond Fee: $2,250.00/annual IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety named herein, on September 28th , 2022 APPROVED AS TO CONTENT: PRINCIPAL: City o C-thedral Cit EMP1, LLC A California L. it d 'ability Company Charles P. McClendon By: City Manager J. an oiph Poag, M nager APPROVED AS TO FOR • SURETY: City of Cathe I it By Everest Reinsurance Company City Attorney Sur ty Company APPROVED: City of Cathedral City Si ure of Authorized Representative By Beata A. Sensi, Attorney-in-Fact Dj . Engineering/ ublic Works Printed name 1340 Treat Blvd., Suite 450, Walnut Creek, CA 94597 Surety Address and City (714) 516-2960 &Swolf@rohmins.com Contact Phone and E-mail Principal and Surety signatures must be notarized and Acknowledgment of Authorized Representative/Attorney in Fact must be attached for both Principal and Surety. Three (3) originals must be executed. 2 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared J. Randolph Poag who proved to me on the basis of satisfactory evidence to be the person(s-)whose name* is/efe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/tier/them authorized capacity(les), and that by hisTherAheif signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. SUSAN E. MORALES • WITNESS my hand and official seal .,_ COMM.#2279182 z f) NOTARY PUBLIC-CALIFORNIAK ,0. ORANGE COUNTY ( � p yy� , My Comm.Expires March 28,2023 Notary Public Signature (Notary Public Seal) ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Performance& Payment Bonds wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9/28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. ❑ Attorney-in-Fact 4. Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Manager Indicate title or type of attached document,number of pages and date. Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } j On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared Beata A. Sensi who proved to me on the basis of satisfactory evidence to be the personfsj whose name() is/ere subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacityfies), and that by hielher/thei•r signature(e) on the instrument the person(s), or the entity upon behalf of which the person(e) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SUSAN E. MORALES ,r,401. COMM.#2279182 (/t D Z , NOTARY PUBLIC-CALIFORNIA-. iZAani f/lCnt.a0 a. ORANGE COUNTY Notary Public Signature (Notary Public Seal) My Comm.Expires March 28 2023 ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Bond #ES00012287 wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. Everest Reinsurance Company • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9/28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. Cl Attorney-in-Fact Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Indicate title or type of attached document,number of pages and date. ❑ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. Everest Reinsurance Company 461 5th Avenue-4th Floor New York,N.Y 10017 1IC ,r E R SURETY BOND SEAL ADDENDUM EVEREST REINSURANCE COMPANY Due to logistical issues associated with the use of traditional seals during the COVID-19 pandemic, Everest Reinsurance Company ("Everest") has authorized its Attorney-in-Fact to affix Everest's corporate seal to any bond executed on behalf of Everest by any such Attorney-in- Fact by attaching this Addendum to said bond. To the extent this addendum is attached to a bond that is executed on behalf of Everest by its Attorney-in-Fact, Everest hereby agrees that the seal below shall be deemed affixed to said bond to the same extent as if its raised corporate seal was physically affixed to the face of the bond. Dated this 7th day of April 2020. EVEREST REINSURANCE COMPANY By: Anthony Romano—Vice President & Global Head of Surety , urai 4 .=dQ`po r'. E 0 SEAL i dl 1973 1 a ; 'v> .4Uwn�..' te EVE R ES\. POWER OF ATTORNEY EVEREST REINSURANCE COMPANY DELAWARE KNOW ALL PERSONS BY THESE PRESENTS: That Everest Reinsurance Company, a corporation of the State of Delaware ("Company") having its principal office located at 477 Martinsville Road, Liberty Corner, New Jersey 07938, do hereby nominate, constitute,and appoint Shane Wolf,Cathy S.Kennedy,Beata A.Sensi,Cheryl L.Thomas,Todd M.Rohm its true and lawful Attorney(s)-in-fact to make,execute,attest,seal and deliver for and on its behalf,as surety,and as its act and deed, where required,any and all bonds and undertakings in the nature thereof,for the penal sum of no one of which is in any event to exceed UNLIMITED,reserving for itself the full power of substitution and revocation. Such bonds and undertakings,when duly executed by the aforesaid Attorney(s)-in-fact shall be binding upon the Company as fully and to the same extent as if such bonds and undertakings were signed by the President and Secretary of the Company and sealed with its corporate seal. This Power of Attorney is granted and is signed by facsimile under and by the authority of the following Resolutions adopted by the Board of Directors of Company("Board")on the 28th day of July 2016: RESOLVED, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby appointed by the Board as authorized to make,execute, seal and deliver for and on behalf of the Company,any and all bonds, undertakings,contracts or obligations in surety or co-surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to attest to the execution of any such bonds, undertakings, contracts or obligations in surety or co-surety and attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute,on behalf of the Company, bonds and undertakings in surety or co-surety with others,and that the Secretary or any Assistant Secretary of the Company be,and that each of them is hereby authorized to attest the execution of any such power of attorney, and to attach thereto the corporate seal of the Company. RESOLVED,FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be affixed to such powers of attorney or to any certificate relating thereto by facsimile,and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond,undertaking,contract or obligation in surety or co-surety with others to which it is attached. IN WITNESS WHEREOF, Everest Reinsurance Company has caused their corporate seals to be affixed hereto,and these presents to be signed by their duly authorized officers this 28th day of July 2016. ,ealb� (ai 0 Everest Reinsurance Company , L f d SEAL Lire QUwr 4 lteitel6e_ Attest: Nicole Chase,Assistant Secretary By:Anthony Romano,Vice President On this 28th day of July 2016,before me personally came Anthony Romano,known to me,who,being duly sworn,did execute the above instrument;that he knows the seal of said Company; that the seal affixed to the aforesaid instrument is such corporate seal and was affixed thereto;and that he executed said instrument by like order. LINDA ROBINS / Notary Public,State of New York No0ueens kte71 _ y ./ Qualified inn Queens ueens County Term Expires April 25,2023 Linda Robins,Notary Public IN WITNESS WHEREOF, I have hereunto set my hand arid pftixell-tht eet of sgid,,Company,at the Liberty Comer,this 28th day of September 20 22 _ t} ES00010416 t':;' -'• � �i;1 .#, I� l. r „ Bond No.: ES00012287 Bond Fee: included with the Performance Bond LABOR AND MATERIAL BOND SUBDIVISION IMPROVEMENT AGREEMENT TRACT NO. 32557 (California Government Code § 66499.2) SEWER IMPROVEMENTS WHEREAS, the City Council of the City of Cathedral City, State of California, and EMP1, LLC, a California Limited Liability Company (hereinafter designated as "Principal") have entered into an agreement whereby the Principal agrees to install and complete certain designated public sewer improvements, which agreement, dated September 20?2 and identified as "Subdivision Improvement Agreement, Tract No. 32557" (hereinafter designated as "Agreement"), is hereby referred to and made a part hereof; and WHEREAS, under the terms of the Agreement, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Cathedral City (hereinafter designated as "City") to secure the claims to which reference is made in Title 3, (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. NOW, THEREFORE, the Principal and the undersigned as corporate surety (hereinafter designated as "Surety"), are held firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Agreement and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the sum of Seventy Five Thousand ($ 75,000.00) dollars, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition. 1 Bond No.: ES00012287 Bond Fee: included with the Performance Bond IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety named herein, on September 28th , 2022 APPROVED AS TO CONTENT: PRINCIPAL: City of Cathedral City EMP1, LLC A California Li ite i bility Company By Charles P. McClendon By: City Manager J. Rand ph Poag, Man ger APPROVED AS TO FORM: SURETY: City of Cathedral City Everest Reinsurance Company By Surety Company City Attorney I n APPROVED: Sig ure of Authorized Representativ. . ,(T,' ; City of Cathe al ity '' Beata A. Sensi,Attorney-in-Fact By Printed name Y ` a tti - City n ne r '' 1340 Treat Blvd., Suite 450, Walnut CreeK,•VL 97_ :`- rr ' I;' £.c.. Surety Address and City (714) 516-2960 &Swolf@rohmins.com Contact Phone and E-mail Principal and Surety signatures must be notarized and Acknowledgment of Authorized Representative/Attorney in Fact must be attached for both Principal and Surety. Three (3) originals must be executed. 2 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared J. Randolph Poag who proved to me on the basis of satisfactory evidence to be the persons)whose names) is/alfe subscribed to the within instrument and acknowledged to me that he/sfre tey executed the same in his/her/lheil authorized capacity(ies), and that by his/ ter/their signatures) on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. SUSAN E. MORALES WITNESS my hand and official seal. COMM.#2279182 r "�'ti%+ 3=I NOTARY PUBLIC-CALIFORNIA� r ORANGE COUNTY �(,(,��y}� 4 ��� My Comm.Expires March 28,2023 NotaryPublic Signature (Notary Public Seal) • • ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Performance& Payment Bonds wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. Number of Pages 2 Document Date 9/28/22 • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. ❑ Attorney-in-Fact . Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Manager • Indicate title or type of attached document,number of pages and date. 0 • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. 1 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared Beata A. Sensi who proved to me on the basis of satisfactory evidence to be the persons) whose name(e-) is/me subscribed to the within instrument and acknowledged to me that he/she/they executed the same in trisiher/their authorized capacityfies), and that by ttis/her/their signature(sj on the instrument the person(s), or the entity upon behalf of which the person* acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS myhand and official seal. SUSAN E.MORALES COMM.#2279182 NOTARY PUBLIC-CALIFORNIA� z t ORANGE COUNTY (/gyp • m� .+�� *.& My Comm.Expires March 28,2023 NotaryPublic Signature (Notary Public Seal) ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Bond#ES00012287 wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document Everest Reinsurance Company signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9/28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. f ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. El Attorney-in-Fact 4. Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Indicate title or type of attached document,number of pages and date. ❑ • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. Everest Reinsurance Company flirt 461 5th Avenue-4t°Floor New York,N.Y 10017 I/' E RV.SX. SURETY BOND SEAL ADDENDUM EVEREST REINSURANCE COMPANY Due to logistical issues associated with the use of traditional seals during the COVID-19 pandemic, Everest Reinsurance Company("Everest") has authorized its Attorney-in-Fact to affix Everest's corporate seal to any bond executed on behalf of Everest by any such Attorney-in- Fact by attaching this Addendum to said bond. To the extent this addendum is attached to a bond that is executed on behalf of Everest by its Attorney-in-Fact, Everest hereby agrees that the seal below shall be deemed affixed to said bond to the same extent as if its raised corporate seal was physically affixed to the face of the bond. Dated this 7th day of April 2020. EVEREST REINSURANCE COMPANY By: Anthony Romano—Vice President &Global Head of Surety Asuran� e . Qe.`_nP01tgTF. n'. SEAL 1 ,M ` y 1973 Bond No.: ES00012288 Bond Fee: $3,195.00/annual FAITHFUL PERFORMANCE BOND SUBDIVISION IMPROVEMENT AGREEMENT TRACT NO. 32557 (California Government Code § 66499.1) WATER IMPROVEMENTS WHEREAS, the City Council of the City of Cathedral City, State of California, and EMP1, LLC, a California Limited Liability Company (hereinafter designated as "Principal"), have entered into an agreement pursuant to California Government Code section 66462 whereby Principal agrees to install and complete certain designated public water system improvements, which said agreement, dated September , 20 22, and identified as "Subdivision Improvement Agreement, Tract No. 32557" (hereinafter designated as "Agreement"), is hereby referred to and made a part hereof; and WHEREAS, said Principal is required under the terms of said Agreement, to furnish a good and sufficient bond for the faithful performance of said Agreement; and NOW, THEREFORE, we, the Principal and Everest Reinsurance Company , (hereinafter designated as "Surety"), a corporation organized and doing business under and by virtue of the laws of Delaware and duly licensed to transact surety business in the State of California, are held firmly bound unto the City of Cathedral City (hereinafter designated as "City") in the penal sum of Two Hundred Thirteen Thousand Dollars ($ 213,000.00), lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in said Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of said Agreement or to the work or to the specifications. 1 J"` EVER ESN POWER OF ATTORNEY EVEREST REINSURANCE COMPANY DELAWARE KNOW ALL PERSONS BY THESE PRESENTS: That Everest Reinsurance Company, a corporation of the State of Delaware ("Company") having its principal office located at 477 Martinsville Road, Liberty Corner, New Jersey 07938, do hereby nominate, constitute,and appoint: Shane Wolf,Cathy S.Kennedy,Beata A.Sensi,Cheryl L.Thomas,Todd M.Rohm its true and lawful Attorney(s)-in-fact to make,execute,attest,seal and deliver for and on its behalf,as surety,and as its act and deed, where required,any and all bonds and undertakings in the nature thereof,for the penal sum of no one of which is in any event to exceed UNLIMITED,reserving for itself the full power of substitution and revocation. Such bonds and undertakings,when duly executed by the aforesaid Attorney(s)-in-fact shall be binding upon the Company as fully and to the same extent as if such bonds and under-takings were signed by the President and Secretary of the Company and sealed with its corporate seal. This Power of Attorney is granted and is signed by facsimile under and by the authority of the following Resolutions adopted by the Board of Directors of Company("Board")on the 28th day of July 2016: RESOLVED, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby appointed by the Board as authorized to make,execute, seal and deliver for and on behalf of the Company, any and all bonds, undertakings,contracts or obligations in surety or co-surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to attest to the execution of any such bonds, undertakings, contracts or obligations in surety or co-surety and attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute,on behalf of the Company,bonds and undertakings in surety or co-surety with others,and that the Secretary or any Assistant Secretary of the Company be,and that each of them is hereby authorized to attest the execution of any such power of attorney,and to attach thereto the corporate seal of the Company. RESOLVED,FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be affixed to such powers of attorney or to any certificate relating thereto by facsimile,and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond,undertaking,contract or obligation in surety or co-surety with others to which it is attached. IN WITNESS WHEREOF, Everest Reinsurance Company has caused their corporate seals to be affixed hereto,and these presents to be signed by their duly authorized officers this 28th day of July 2016. elrape Everest Reinsurance Company ti L f SEAL an v► �UwNt eiZado. ^ * Attest Nicole Chase,Assistant Secretary By:Anthony Romano,Vice President On this 28th day of July 2016,before me personally came Anthony Romano,known to me,who,being duly sworn,did execute the above instrument;that he knows the seal of said Company; that the seal affixed to the aforesaid instrument is such corporate seal and was affixed thereto;and that he executed said instrument by like order. LINDA ROBINS / Notary Public,State of New York No 01R06239736 Qualified in Queens County (�t�,c.., y`) Term Expires April 25,2023 J Linda Robins,Notary Public IN WITNESS WHEREOF,I have hereunto set my hapd° nd;'affxed.thespal,of said Company,at the Liberty Corner,this 28th day of September 2022 c'f O,r ` i ES00010416Cr3 0' 7J73 , a^ — •� i S • • t I I i t ' .` Bond No.: ES00012288 Bond Fee: $3,195.00/annual IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety named herein, on September 28th , 2022 APPROVED AS TO CONTENT: PRINCIPAL: City • C ' edral ity EMP1, LLC A California Li ite a ility Company Charles P. McClendon By: City Manager J. Rand Iph Poag, Mana er APPROVED AS TO FORM: SURETY: City of Cathed al Cit By Everest Reinsurance Company ntS. df,LCity Attorney Sur ty Company APPROVED: City of Cathe al i Sig ature of Authorized Representative By Beata A. Sensi,Attorney-in-Fact Dir. f gineering/Public Works Printed name . --" 1340 Treat Blvd., Suite 450, Walnut Creek C• .9 97_; Surety Address and City • (714) 516-2960 & Swolf@rohmins.com Contact Phone and E-mail Principal and Surety signatures must be notarized and Acknowledgment of Authorized Representative/Attorney in Fact must be attached for both Principal and Surety. Three (3) originals must be executed. 2 ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT i ! A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared J. Randolph Poag who proved to me on the basis of satisfactory evidence to be the persons)whose name(s) is/ere-subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/tl ieit authorized capacity(res), and that by hisffier/their signatures) on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ,,-- SUSAN E. MORALES WITNESS my hand and official seal. COMM #2279182 - NOTARY k IKIC-CALIFORNIA ORANGE COUNTY arn My Comm.Expires March 26,2023• Notary Public Signature (Notary Public Seal) - a i ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Performance& Payment Bonds wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. Number of Pages 2 Document Date 9/28/22 • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. 0 Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. ❑ Attorney-in-Fact . Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Manager • Indicate title or type of attached document,number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and tale of the officer) personally appeared Beata A. Sensi who proved to me on the basis of satisfactory evidence to be the person e) whose name(s) is/efe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by f /her/their signature(sj on the instrument the person(sj, or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. , SUSAN E.MORALES n. COMM.#2279182 z = `NOTARY PUBLIC-CAUFORNIA ORANf3E COUNTY gaioaer% • �� �?!..' My Comm.Expires Marc?t 28,2023 ublic Signature (Notary Public Seal) �— • ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Bond#ES00012288 wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. Everest Reinsurance Company • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9/28/22 commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is late)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. 0 Attorney-in-Fact Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Indicate title or type of attached document,number of pages and date. ❑ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. Everest Reinsurance Company )11b . 461 5th Avenue-4th Floor New York,N.Y 10017 `!AC I I'E R T SURETY BOND SEAL ADDENDUM EVEREST REINSURANCE COMPANY Due to logistical issues associated with the use of traditional seals during the COVID-19 pandemic, Everest Reinsurance Company("Everest") has authorized its Attorney-in-Fact to affix Everest's corporate seal to any bond executed on behalf of Everest by any such Attorney-in- Fact by attaching this Addendum to said bond. To the extent this addendum is attached to a bond that is executed on behalf of Everest by its Attorney-in-Fact, Everest hereby agrees that the seal below shall be deemed affixed to said bond to the same extent as if its raised corporate seal was physically affixed to the face of the bond. Dated this 7th day of April 2020. EVEREST REINSURANCE COMPANY By: Anthony Romano—Vice President &Global Head of Surety Asuran„ sr G v , : SEAL 1973 ';v) ',law , * J"` EYE R ES'\ POWER OF ATTORNEY EVEREST REINSURANCE COMPANY DELAWARE KNOW ALL PERSONS BY THESE PRESENTS: That Everest Reinsurance Company, a corporation of the State of Delaware ("Company") having its principal office located at 477 Martinsville Road, Liberty Corner, New Jersey 07938, do hereby nominate, constitute,and appoint: Shane Wolf,Cathy S.Kennedy,Beata A.Sensi,Cheryl L.Thomas,Todd M.Rohm its true and lawful Attorney(s)-in-fact to make,execute,attest,seal and deliver for and on its behalf,as surety,and as its act and deed, where required,any and all bonds and undertakings in the nature thereof,for the penal sum of no one of which is in any event to exceed UNLIMITED,reserving for itself the full power of substitution and revocation. Such bonds and undertakings,when duly executed by the aforesaid Attomey(s)-in-fact shall be binding upon the Company as fully and to the same extent as if such bonds and undertakings were signed by the President and Secretary of the Company and sealed with its corporate seal. This Power of Attorney is granted and is signed by facsimile under and by the authority of the following Resolutions adopted by the Board of Directors of Company("Board")on the 28th day of July 2016: RESOLVED, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby appointed by the Board as authorized to make,execute,seal and deliver for and on behalf of the Company, any and all bonds, undertakings,contracts or obligations in surety or co-surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to attest to the execution of any such bonds, undertakings, contracts or obligations in surety or co-surety and attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute,on behalf of the Company,bonds and undertakings in surety or co-surety with others,and that the Secretary or any Assistant Secretary of the Company be,and that each of them is hereby authorized to attest the execution of any such power of attorney,and to attach thereto the corporate seal of the Company. RESOLVED,FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be affixed to such powers of attorney or to any certificate relating thereto by facsimile,and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond,undertaking,contract or obligation in surety or co-surety with others to which it is attached. IN WITNESS WHEREOF, Everest Reinsurance Company has caused their corporate seals to be affixed hereto,and these presents to be signed by their duly authorized officers this 28th day of July 2016. tAolJrary� Everest Reinsurance Company ` von;, g E SEAL 'i, an ZO 44w* V el:711"....1— * AeLCV6C. Attest: Nicole Chase,Assistant Secretary By:Anthony Romano,Vice President On this 28th day of July 2016,before me personally came Anthony Romano,known to me,who,being duly sworn,did execute the above instrument;that he knows the seal of said Company; that the seal affixed to the aforesaid instrument is such corporate seal and was affixed thereto;and that he executed said instrument by like order. LINDA ROBINS /' Notary Public,State of New York , No 01R06239736 / Qualified in Queens County ✓7y/L-t''L_ y -ui G r.---- ) Term Expires April 25,2023 Linda Robins,Notary Public IN WITNESS WHEREOF,I have hereunto set my hand and` fi,Red the 0,eet•of;saki company,at the Liberty Corner,this 28th day of September 2022 . r ES00010416 `� Bond No.: ES00012288 Bond Fee: included with the Performance Bond LABOR AND MATERIAL BOND SUBDIVISION IMPROVEMENT AGREEMENT TRACT NO. 32657 (California Government Code § 66499.2) WATER IMPROVEMENTS WHEREAS, the City Council of the City of Cathedral City, State of California, and EMP1, LLC, a California Limited Liability Company (hereinafter designated as "Principal") have entered into an agreement whereby the Principal agrees to install and complete certain designated public water system improvements, which agreement, dated September , 2022, and identified as "Subdivision Improvement Agreement, Tract No. 32557" (hereinafter designated as "Agreement"), is hereby referred to and made a part hereof; and WHEREAS, under the terms of the Agreement, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Cathedral City (hereinafter designated as "City") to secure the claims to which reference is made in Title 3, (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code. NOW, THEREFORE, the Principal and the undersigned as corporate surety (hereinafter designated as "Surety"), are held firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Agreement and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the sum of One Hundred Six Thousand Five Hundred ($ 106.500.00) dollars, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such 1 Bond No.: ES00012288 Bond Fee: included with the Performance Bond change, extension, alteration or addition. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety named herein, on September 28th , 2022 APPROVED AS TO CONTENT: PRINCIPAL: City hedral City EMP1, LLC A California • it i bility Company Charles P. McClendon By: ' City Manager J. nd Iph Poag, Man ger APPROVED AS TO FOR : SURETY: City of Cathedr I Cit Everest Reinsurance Company By Sur ty Compan City Attorney 7 /� APPROVED: Si ature of Authorized Representative,; ,` -L..... .,' City of Cath drat City �" r Beata A. Sensi,Attorney-in-Fact ' f ~ By Printed name � r ity gi `- > 1340 Treat Blvd., Suite 450, Walnut Creek:ICA-9;4.597 1 f Surety Address and City (714) 516-2960&Swolf@rohmins.com Contact Phone and E-mail Principal and Surety signatures must be notarized and Acknowledgment of Authorized Representative/Attorney in Fact must be attached for both Principal and Surety. Three (3) originals must be executed. 2 I ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public , (Here insert name and title of the officer) personally appeared J. Randolph Poag who proved to me on the basis of satisfactory evidence to be the person*whose name(e) is/afe subscribed to the within instrument and acknowledged to me that heist tey executed the same in hi5/h i/theTr authorized capacity(ies), and that by his/ht,� eif signature(s) on the instrument the person(s), or the entity upon behalf of which the persons-) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. /74.4w#4*******4,(.:i.,::„:„;.„,,,,,,,_ SIJSAN E. MORtCOM NOTARY PUBLIC-CALIFORNIA? /�� f ORANGE COUNTY ��'� � "/Oh ��� My Comm.Expires March 28,2023 Notary Public Signature (Notary Public Seal) • ♦ ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Performance& Payment Bonds wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9/28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is/are)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. D Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. 0 Attorney-in-Fact Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Manager Indicate title or type of attached document,number of pages and date. ❑ 4. Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California } County of Orange } On September 28, 2022 before me, Susan E. Morales, Notary Public (Here insert name and title of the officer) personally appeared Beata A. Sensi who proved to me on the basis of satisfactory evidence to be the personfe) whose name(-sr) is/ere subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature fsj on the instrument the person(*, or the entity upon behalf of which the person(* acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SUSAN E. MORALES COMM.#2279182 ���� _ + �' �NOTARYPUBLIC-CALIFORNIAa �ag1YYr �`. % ORANGE COUNTY otary Public Signature (Notary Public Seal) My Comm.Expires March 28,2023 • ♦ ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM This form complies with current California statutes regarding notary wording and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed,should be completed and attached to the document.Acknolwedgents from other states may be completed for documents being sent to that state so long as the Bond#ES00012288 wording does not require the California notary to violate California notary law. (Title or description of attached document) • State and County information must be the State and County where the document Everest Reinsurance Company signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s)personally appeared which (Title or description of attached document continued) must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her Number of Pages 2 Document Date 9/28/22 • commission followed by a comma and then your title(notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the correct singular or plural forms by crossing off incorrect forms(i.e. he/she/they, is late)or circling the correct forms.Failure to correctly indicate this ❑ Individual (s) information may lead to rejection of document recording. ❑ Corporate Officer • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges,re-seal if a (Title) sufficient area permits,otherwise complete a different acknowledgment form. ❑ Partner(s) • Signature of the notary public must match the signature on file with the office of the county clerk. 0 Attorney-in-Fact Additional information is not required but could help to ensure this ❑ Trustee(s) acknowledgment is not misused or attached to a different document. Other Indicate title or type of attached document,number of pages and date. ❑ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer,indicate the title(i.e.CEO,CFO,Secretary). • Securely attach this document to the signed document with a staple. Everest Reinsurance Company 461 5th Avenue-4th Floor New York,N.Y 10017 EVER T. SURETY BOND SEAL ADDENDUM EVEREST REINSURANCE COMPANY Due to logistical issues associated with the use of traditional seals during the COVID-19 pandemic, Everest Reinsurance Company("Everest") has authorized its Attorney-in-Fact to affix Everest's corporate seal to any bond executed on behalf of Everest by any such Attorney-in- Fact by attaching this Addendum to said bond. To the extent this addendum is attached to a bond that is executed on behalf of Everest by its Attorney-in-Fact, Everest hereby agrees that the seal below shall be deemed affixed to said bond to the same extent as if its raised corporate seal was physically affixed to the face of the bond. Dated this 7th day of April 2020. EVEREST REINSURANCE COMPANY By: Anthony Romano—Vice President &Global Head of Surety SEALs. r i� dt 1973 : j 7 Ei'ERF.S\ POWER OF ATTORNEY EVEREST REINSURANCE COMPANY DELAWARE KNOW ALL PERSONS BY THESE PRESENTS: That Everest Reinsurance Company, a corporation of the State of Delaware ("Company") having its principal office located at 477 Martinsville Road, Liberty Corner, New Jersey 07938, do hereby nominate, constitute,and appoint: Shane Wolf,Cathy S.Kennedy,Beata A.Sensi,Cheryl L.Thomas,Todd M.Rohm its true and lawful Attorney(s)-in-fact to make,execute,attest, seal and deliver for and on its behalf,as surety,and as its act and deed, where required,any and all bonds and undertakings in the nature thereof,for the penal sum of no one of which is in any event to exceed UNLIMITED,reserving for itself the full power of substitution and revocation. Such bonds and undertakings,when duly executed by the aforesaid Attorney(s)-in-fact shall be binding upon the Company as fully and to the same extent as if such bonds and undertakings were signed by the President and Secretary of the Company and sealed with its corporate seal. This Power of Attorney is granted and is signed by facsimile under and by the authority of the following Resolutions adopted by the Board of Directors of Company("Board")on the 28th day of July 2016: RESOLVED, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby appointed by the Board as authorized to make,execute, seal and deliver for and on behalf of the Company, any and all bonds, undertakings,contracts or obligations in surety or co-surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to attest to the execution of any such bonds, undertakings, contracts or obligations in surety or co-surety and attach thereto the corporate seal of the Company. RESOLVED, FURTHER, that the President, any Executive Vice President, and any Senior Vice President and Anthony Romano are hereby authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute,on behaff of the Company,bonds and undertakings in surety or co-surety with others,and that the Secretary or any Assistant Secretary of the Company be,and that each of them is hereby authorized to attest the execution of any such power of attorney, and to attach thereto the corporate seal of the Company. RESOLVED,FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be affixed to such powers of attorney or to any certificate relating thereto by facsimile, and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond,undertaking,contract or obligation in surety or co-surety with others to which it is attached. IN WITNESS WHEREOF, Everest Reinsurance Company has caused their corporate seals to be affixed hereto,and these presents to be signed by their duly authorized officers this 28th day of July 2016. s,Urai p cN� Everest Reinsurance Company r SEAL un 414widi AtIOYJE__ * Attest: Nicole Chase,Assistant Secretary By:Anthony Romano,Vice President On this 28th day of July 2016,before me personally came Anthony Romano,known to me,who,being duly sworn,did execute the above instrument;that he knows the seal of said Company; that the seal affixed to the aforesaid instrument is such corporate seal and was affixed thereto;and that he executed said instrument by like order. LINDA ROBINS Notary Public,State of New York / No 01 R06239736 Qualified in Queens County y <� ✓ Term Expires April 25,2023 / Linda Robins,Notary Public IN WITNESS WHEREOF,I have hereunto set myacid a� ,s hand x�J f�aQv^SQ�f of Liompany,at the Liberty Corner,this 28th day of September 2022 O r"1 c� n • ES 00 01 04 16 / ,t f/