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HomeMy WebLinkAboutRecorded Doc 2023-037 REQUESTED BY: 2023-0178041 CITY CLERK 06/21/2023 04:46 PM Fee: $ 0.00 Page 1 of 34 Recorded in Official Records WHEN RECORDED RETURN TO: County of Riverside Peter Aldana Assessor-County (Clerk-Recorder City Clerk City of Cathedral City 1 5' I ':', ke lil' 68-700 Avenida Lab Guerrero Cathedral City, CA 92234 554 SPACE ABOVE THIS LINE FOR RECORDER'S USE CITY OF CATHEDRAL CITY IMPROVEMENT AGREEMENT PARCEL MAP 37876 DATE OF AGREEMENT: Mc,y 2.1+12DV NAME OF DEVELOPER: CATHEDRAL COVE 1.0, LLC, a California limited liability company, (REFERRED TO AS "DEVELOPER") NAME/NUMBER OF PARCEL MAP AND OTHER APPROVALS: TENTATIVE PARCEL MAP NO. 37876 and CONDITIONAL USE PERMITS CUP 21-006, 21-007, 21-008 and 21-009, and DESIGN REVIEWS DR 21-001, 21-002, AND 21-003. (REFERRED TO AS "DEVELOPMENT") TENTATIVE MAP, CONDITIONAL USE PERMITS AND DESIGN REVIEWS APPROVED BY CITY COUNCIL ON SEPTEMBER 28, 2022 (THE "APPROVAL ACTION") PROPERTY SUBJECT TO THIS AGREEMENT is described in Exhibit "A", attached hereto and incorporated herein (hereinafter the "Property") EST. TOTAL COST OF EST. TOTAL COST OF EST. TOTAL COST OF PUBLIC IMPROVEMENTS: PRIVATE IMPROVEMENTS: MONUMENTATION: $ 1,365,300.00 $ 213,600.00 $ 59,800.00 see Exhibit "B-1" See Exhibit "B-1" See Exhibit "B-1" EST. TOTAL COST OF DWA EST. TOTAL COST OF DWA SEWER IMPROVEMENTS: WATER IMPROVEMENTS $ 282,283.00 $ 102,000.00 See Exhibit "B-1" See Exhibit "B-1" Page 1 of 23 This Agreement is made and entered into by and between the City of Cathedral City, California, a municipal corporation of the State of California, hereinafter referred to as "CITY", and Cathedral Cove 1.0, LLC, a California limited liability company, hereinafter referred to as "DEVELOPER". RECITALS A. Developer has presented to City an application for the construction of a commercial retail center on the southerly side of East Palm Canyon Drive, east of Van Fleet Avenue, and has submitted an application for the approval and recordation of a Tentative Parcel Map to divide the site into nine (9) parcels (the "Subdivision") and to develop the Property subject to several Conditional Use Permits and Design Reviews. The final Parcel Map and the development of the Property are subject to the filing and recordation of a final parcel map, pursuant to provisions of the Subdivision map Act of the State of California and the City's Ordinances and regulations relating to the filing, approval and recordation of subdivision maps. The Subdivision Map Act and the CITY's ordinances and regulations relating to the filing, approval and recordation of subdivision maps are collectively referred to in this Agreement as the "Subdivision Laws". B. The City Council has reviewed the applications and has approved Tentative Parcel Map No. 37876 ("Tentative Map") for the subdivision of the land and has approved Conditional Use Permits CUP 21-006, 21-007, 21-008 and 21-009 and Design Reviews DR 21-001 AND 21- 002 for the development of various commercial sites within the Subdivision, all subject to the Subdivision Laws and to the requirements and conditions of approval imposed thereon by the Approval Action by the City Council on September 28, 2022. The tentative parcel map and all requirements and conditions imposed thereon by the Approval Action are on file in the Office of the City Engineer and are incorporated into this Agreement by reference to the extent the same relate to the Property. C. Developer is in escrow to purchase the portion of the land being divided by Parcel Map 37876 as described in the attached Exhibit "A". Close of escrow is conditioned upon approval and recordation of Parcel Map 37876 and Developer complying with the requirements of the Approval Action which relate to the Property and either (a) completing in compliance with City standards, all of the public and private improvement relating to the Property and work required by the Subdivision Laws or the Conditions of Approval which relate to the Property or, (b) entering into a secured agreement with City to complete the public and private improvements relating to the Property within a period of time specified by City. D. In order for the final map of Parcel Map 37876 to be recorded and for the close of escrow to take place, Developer desires to enter into this Agreement, whereby Developer promises to install and complete, at Developer's own expense, all the public and private improvement work related to the Property which is required by City, which work is generally described in the attached Exhibit "B-3". Developer has secured this Agreement by improvement security required by the Subdivision Laws and approved by the City Attorney. E. Improvement Plans ("Improvement Plans" or "Plans") for the construction, installation, and completion of the improvements have been prepared by Developer and Page 2 of 23 E. Improvement Plans ("Improvement Plans" or "Plans") for the construction, installation, and completion of the improvements have been prepared by Developer and approved by the City Engineer. The Improvement Plans are on file in the Office of the City Engineer and are incorporated into this Agreement by this reference to the extent the same relate to the Property. All references in this Agreement to the Improvement Plans shall include reference to any specifications ("Specifications") for the improvements related to the Property as approved by the City Engineer. F. An estimate of the cost for construction of the public and private improvements related to the Property and performing the land development work for the Property in connection with the improvements according to the Plans has been made and approved by the Director of Engineering A Summary of the estimated costs of all public and private improvements, sewer and water improvements, and monumentation related to the Property is attached hereto as Exhibit "B-1" and is incorporated and made part of this Agreement by this reference. The amounts of the Improvement Securities ("Improvement Securities") required to be posted with this Agreement are listed in the Summary attached hereto as Exhibit "B-2" and are based upon the estimates in Exhibit "B-1". The estimated cost of the sewer and water improvements in Exhibit "B-1" were prepared and submitted by Desert Water Agency (DWA), which will be the owner and operator of the sewer and water system facilities upon their completion by Developer and acceptance by DWA. G. The City has adopted standards for the construction and installation of improvements within the City. The Improvement Plans have been prepared in conformance with the City standards in effect on the date or approval of the Conditions of Approval. H. Within thirty (30) days after completion of the required improvements and prior to their acceptance by City, certain survey monuments and markers as specified on the final parcel map shall be installed in accordance with the provisions of the State Subdivision Map Act and with the ordinances of the City. I. Developer recognizes that by City's approval and recordation of the final parcel map, and by Developer's purchase of the Property, City has conferred substantial rights upon Developer, including the right to sell, lease, or finance lots within the parcel map. As a result, City will be damaged to the extent of the cost of installation of the improvements by Developer's failure to perform its obligations under this Agreement, including, but not limited to, Developer's obligation to complete construction of the improvements related to the Property by the time established in this Agreement. City shall be entitled to all remedies available to it pursuant to this Agreement and law in the event of a default by Developer. It is specifically recognized that the determination of whether a reversion to acreage or rescission of the lots and parcels within the parcel map constitutes an adequate remedy for default by the Developer shall be within the sole discretion of City. Page 3 of 23 NOW, THEREFORE, in consideration of the approval and recordation by the City Council of the final map for Parcel Map No. 37876, Developer and City agree as follows: 1. Developer's Obligation to Construct Improvements. Developer shall: (a). Comply with all the requirements and conditions in the Approval Action and any amendments thereto, and with provisions of the Subdivision Laws, in each case, to the extent the same relate to the Property. (b). Complete at Developer's own expense, all the public and private improvement work for the Property as required on the Tentative Map of Parcel Map No. 37876, and in the Approval Action, all in conformance with approved Improvement Plans and the CITY standards, within eighteen (18) months of the date of final parcel map approval by the City Council, or by the date of final City Building Division inspection and approval of the first commercial building constructed within the Property, on any parcel or parcels on the Property, whichever date is the earliest. (c). Furnish the necessary materials for completion of the public and private improvements related to the Property in conformity with the Improvement Plans and City standards. (d). Acquire and dedicate, or pay the cost of acquisition by City, of all rights-of-way, easements and other interests in real property for construction or installation of the public improvements related to the Property, free and clear of all liens and encumbrances. The Developer's obligations with regard to acquisition by City of off-site rights-of-way, easements and other interests in real property shall be subject to a separate agreement between Developer and City. Developer shall also be responsible for obtaining, any public or private drainage easements or authorizations to accommodate the development of the Property. (e) Commence construction of the improvements related to the Property and complete the improvements related to the Property by the deadline stated in paragraph 1(b) above, unless a time extension is granted by the City as authorized in Section 19. (f). Install all subdivision monuments, property corners, and other survey markers related to the Property as shown on the recorded parcel map and required by law within thirty days after the completion of the public improvements related to the Property and prior to their acceptance by the City. 2. Security (a). Developer shall at all times guarantee Developer's performance of this Agreement by furnishing to City, and maintaining, good and sufficient security as required by the Subdivision Laws, on forms approved by City for the purposes and in the amounts as follows: Page 4 of 23 (i). $1,578,900.00 Dollars to assure faithful performance of this Agreement in regard to said improvements which is 100% of the estimated cost of the public and private improvements set forth in Exhibit "B-1"; and (ii). $789,450.00 Dollars to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor materials for the improvements required to be constructed or installed pursuant to the Agreement, which is 50% of the estimated cost of the improvements, set forth in Exhibit "B-1"; and (iii). $157,890.00 Dollars to guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by City against any defective work or labor done or defective materials furnished, which is 10% of the estimated cost of the improvements set forth in Exhibit "B-1", which warranty security is to be provided to the City prior to the City's release of any bonds or securities filed with this Agreement; and Sewer Improvements: (iv) $282,283.00 Dollars to ensure faithful performance of the construction and installation ("Performance Security") of the sewer improvements related to the Property required by Desert Water Agency, which is 100% of the estimated cost of the sewer improvements as set forth in Exhibit "B-1"; and (v) $141,141 .00 Dollars to secure payment to any contractor, subcontractor, persons renting equipment or furnishing labor or materials ("Labor & Materials Security") for the sewer improvements required to be constructed or installed pursuant to this Agreement, which amount is 50% of the estimated cost of the sewer improvements related to the Property; and (vi) $28,228.00 Dollars in the form of a Warranty Bond or cash deposit with the City to guarantee or warranty the sewer improvement work done pursuant to this Agreement for a period of one (1) year following acceptance/certification thereof by Desert Water Agency, against any defective work or labor done or defective materials furnished ("Warranty Security"). Such Warranty Security is 10% of the estimated cost of the Performance Security amount described above in Section 2(a)(iv), 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 Water Improvements: (vii) $102,000.00 Dollars to ensure faithful performance of the construction and installation of the water improvements related to the Property required by Desert Water Agency, which is 100% of the estimated cost of the water improvements as set forth in Exhibit "B-1"; and Page 5 of 23 (viii) $51,000.00 Dollars as a Labor & Materials Security for the water improvements required to be constructed or installed pursuant to this Agreement, which amount is 50% of the estimated cost of the water improvements; and (ix) $10,200.00 Dollars as a Warranty Security 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. Such Warranty Security is 10% of the estimated cost of the Performance Security amount described above in Section 2(a)(vii), 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 (x). $59,800.00 in cash, to assure the placement of permanent survey monuments, lot corners, centerline points, stakes and markers related to the Property as shown on the final parcel map, to provide centerline ties to the City Engineer, and to provide corner records to the County Surveyor, if applicable, and to guarantee payment to the licensed surveyor or civil engineer of record for the performance of these actions ("Monumentation Security"). (b) The Improvement Securities required by this Agreement shall be kept on file with the City Clerk. If surety bonds are used, they must be issued by a surety company currently admitted to transact surety insurance business in California by the California Department of Insurance, with a Best's Insurance Guide rating of no less than "A-" ("A-minus"). The terms of any documents evidencing such Improvement Securities as set forth in this Section 2 or referenced on the first page of this Agreement and in Exhibits "B-1" and "B-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. (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 Page 6 of 23 Improvement Securities for the sewer and water improvements described herein on behalf of and in cooperation with the Desert Water Agency. (e) 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 required to be constructed pursuant to this Agreement ("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 6 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 ("Standards") in effect as of the date of the Approval Action specified on the first page of this Agreement. The City reserves the right to modify the Standards applicable to the subdivision created by the recordation of the parcel map and this Agreement, when necessary to protect the public safety or welfare or to comply with applicable State or Federal law or City zoning ordinances. If 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. Modification of Drainage Plan. Developer agrees that if during the course of construction and installation of Improvements it shall be determined by the City Engineer that revision of the drainage plan for the Property is necessary in the public interest, it will undertake such design and construction changes as may be reasonable and as are indicated by the City Engineer and approved by City. Said changes, if any, shall be confined to the Property. 5. Inspections; Final Acceptance and Certification of Improvements. Page 7 of 23 (a) Developer shall at all times maintain proper facilities and safe access for inspection of the Improvements by City inspectors and to the shops wherein any work is in preparation. (b) Upon completion of the Improvements covered in this Agreement, the Developer shall request a final inspection by the City Engineer or his/her authorized representative. Following receipt of such request, the City Engineer shall inspect the Improvements, make certain determinations and take certain actions as follows: (i) If the City Engineer, or his/her authorized representative, determines that the Improvements requiring dedication to and acceptance by the City for public use (the "Public Improvements") have been completed in accordance with this Agreement, then the City Engineer shall certify the completion of the Public Improvements by placing a resolution on the next most convenient City Council agenda seeking: (1) formal acceptance of the Public Improvements; (2) release of the Improvement Securities; and (3) authorization to file and record a Notice of Completion. Said determination by the City Engineer and agendization of the acceptance and release shall not be unreasonably withheld or delayed. Any certification and/or acceptance of the Public Improvements shall not constitute a waiver of any defects by City. (ii) For Improvements not requiring dedication to or acceptance by the City (the "Private Improvements"), the City Engineer or his/her authorized representative shall inspect such improvements, and/or shall have the discretion to accept a certification from Developer's registered civil engineer stating that the Private Improvements have been completed in accordance with the approved Plans, City Standards and the Tentative Map. If the City Engineer, or his/her authorized representative, makes a finding, based on his/her own inspection (and/or any certification submitted by Developer's registered civil engineer) that the Private Improvements have been installed and constructed in accordance with the approved Plans, City Standards and the Tentative Map, the City Engineer shall recommend certification of the completion of the Private Improvements by placing an item on the next most convenient City Council agenda requesting certification and authorization to release the Improvement Securities. Said determination by the City Engineer and agendization of the certification and release shall not be unreasonably withheld or delayed. (iii) 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 Page 8 of 23 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 the Improvements. 6. Release of Improvement Securities. Except as otherwise provided in this Agreement, the Improvement Securities shall be released only as specified in this Section: (a) The Performance Security shall be fully released only upon the final completion and certification of all Public Improvements and Private Improvements, and after acceptance of the Public Improvements by the City Council. Partial releases may be permitted subject to the provisions of Subsections (a)(i) and (a)(ii) hereof. Upon final completion of the Public Improvements and Private Improvements under this Agreement, and after City Council acceptance/certification, the City shall file a Notice of Completion in accordance with the California Civil Code. (i) The City Engineer may release a portion of the Performance Security, as work on the Improvements progresses, upon written application thereof by the Developer; provided, however, that no such release shall be considered by City until the value of the work remaining to be completed is thirty percent (30%) 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 two hundred percent (200%) of the value of the work remaining to be done. City and Developer agree that not more than two requests for reduction or partial release of Performance Security shall be considered between the start of construction and the completion and acceptance/certification of the Improvements by the City. (ii) In no event shall the City Engineer authorize a release of the Performance Security which would reduce such security to an amount below that required to guarantee the completion of the Improvements and any other obligations imposed upon Developer by this Agreement. (iii) No partial reduction or release of the Performance Security shall constitute or be construed as the City's acceptance 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. Page 9 of 23 (b) The Labor & Materials Security shall, ninety (90) days after the City's recordation of the Notice of Completion described Subsection 6(a), be reduced to an amount equal to the total claimed by all claimants for whom liens have been filed and of which notice has been given to City, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the Labor & Materials Security and to cover legal costs. The balance shall be released upon the settlement of all claims and obligations for which the Labor & Materials Security was given. If no claims or liens have been filed and no notice has been given to City within said ninety (90) day period, then the Labor & Materials Security shall be released in full. (c) The Warranty Security shall not be released until after the expiration of the one- year (1-year) warranty period and until any claims filed during the warranty period have been settled. As provided in Section 10, below, the warranty period shall not commence until final acceptance/certification of the Improvements and related work by the City Council. (d) The 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 5(b)(iii) 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. (e) The Labor & Materials Security posted for the sewer or water improvements to be owned and operated by Desert Water Agency shall, ninety (90) days after the City's recordation of the Notice of Completion described in this Section 6, 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. (f) The Monumentation Security may be released in full by the City Engineer in accordance with the terms of the separate monument agreement with the City, or if there is none, upon submittal of the following: (i) a written certification from the professional engineer or surveyor responsible for setting the monuments stating that all the final monuments, boundary corners and lot corners for the Subdivision have been set in accordance with the Professional Land Page 10 of 23 Surveyors Act and the Subdivision Map Act, and that the professional engineer or surveyor has been paid in full by Developer for such services; and (ii) centerline tie sheets prepared in a manner acceptable to the City Engineer showing the locations of centerline monuments in existing public or private streets. (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. 7. 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. Developer shall bear the entire cost of replacement or repairs of any and all public or private improvements or utility property damaged or destroyed by reason of any work done 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 City Engineer and the owner of any such public or private improvement. 8. Permits. Developer shall, at Developer's expense, obtain all necessary permits and licenses for the construction and installation of the Improvements, give all necessary notices and pay all fees and taxes required by law. 9. Notice of Breach/Default of Developer. (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 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 subdivider or developer; (8) Developer's failure to maintain insurance as required by this Agreement; or (9) the failure of Developer or Developer's Page 11 of 23 contractors, subcontractors, agents or employees to comply with any other terms and provisions of this Agreement. (b) In the event of any such default, the City Engineer or the City Council may serve written notice to Developer specifying in reasonable detail the nature of the default. Developer shall have thirty (30) days from receipt of said notice to cure the default; provided that, if the default is not reasonably susceptible to being cured within said thirty (30) days, Developer shall have a reasonable period of time to cure the default so long as Developer commences to cure the default within said thirty (30) days and diligently prosecutes the cure to completion. (c) If following service of such written notice of default, Developer fails to cure or commence curing the default to the satisfaction of City within the cure period specified in Subsection 9(b), above, the City Engineer or the City Council may serve notice of Developer's default upon Developer and where applicable Developer's surety, or the holder(s) of any other Improvement Securities, in accordance with the notice provisions set forth in Section 21 of this Agreement. (d) In the event of service of the notice of default specified in Subsection 9(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 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 Page 12 of 23 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 comprising the Property; (2) a rescission by the City Council of the map approval; (3) action by City to otherwise revert the Property to acreage; and (4) withholding of Building permits, building inspections, utility connections and/or Certificates of Occupancy related to the Property. 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. 10. Warranty. (a) For a period of one (1) year after final acceptance/certification by the City Council of the Improvements Developer shall guarantee or warranty such Improvements against any defective work or labor done or defective materials furnished. Additionally, for a period of one (1) after final acceptance/certification by the Desert Water Agency for the sewer or water improvements, Developer shall guarantee or warranty such improvements against any defective work or labor done or defective materials furnished. If within the warranty periods set forth above in this Section, 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 applicable Plans, Developer shall without delay and without any cost to City, commence to repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure within thirty (30) days of receiving written notice from City of the defect and diligently prosecute the repair or replacement work to completion. (b) Should Developer fail to act promptly or in accordance with the repair/replacement requirements set forth herein, Developer hereby authorizes City, at City's option, to perform the repair/replacement work twenty (20) days after mailing written notice to Developer and to Developer's surety, and Developer agrees to pay City for the cost of such work. (c) Should the City determine that an emergency or a threat to the public safety and welfare exists from the condition of the Improvements which require repairs, replacements or Page 13 of 23 remedial measures to be made before Developer can be notified, City may, in its sole discretion, make the necessary repairs or replacements or perform the necessary work and Developer shall pay to City the cost of such repairs. 11. Developer Not Agent of City. Neither Developer nor any of Developer's agents, officers, employees, or contractors are or shall be considered to be agents of City in connection with the performance of Developer's obligations under this Agreement. 12. Injury to Improvement Work; Risk of Loss. Until such time as the 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. Developer is responsible for and shall bear the risk of loss for all Private Improvements at all times. 13. Other Agreements. Nothing contained in this Agreement shall preclude City from expending monies pursuant to agreements concurrently or previously executed between the Parties, or from entering into agreements with other developers or subdividers for the apportionment of costs of water and sewer mains, or other improvements, pursuant to the provisions of City ordinances providing therefor, nor shall anything in this Agreement commit to any such apportionment. 14. Developer's Obligation to Warn Public During Construction. Until final acceptance/certification of the Improvements pursuant to Section 5(b)(i), and final certification of construction of the Private Improvements pursuant to Section 5(b)(ii), or acceptance by Desert Water Agency of the sewer or water improvements pursuant to Section 5(b)iii, 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. 15. Vesting of Ownership. Upon acceptance of the Public Improvements and related work on behalf of the City, and after recordation of the Notice of Completion, ownership of the Public Improvements and any improvement constructed on any public street or alleys pursuant to this Agreement shall vest in City. Page 14 of 23 16. Indemnity/Hold Harmless. (a) Neither the City, nor any official, officer, employee, contractor or agent thereof, shall be liable for any injury to persons or property occasioned by reason of the acts or omissions of 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 16 are not conditioned or dependent upon whether City, or its elective and appointive boards, commissions and officers, or its agents, contractors and employees, prepared, supplied or reviewed any Plans or related specifications in connection with the Improvements, or whether City or 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 16. Page 15 of 23 17. Sale or Disposition of Subdivision; Assignment. (a) Developer acknowledges and agrees that, except as expressly set forth in Section 17(b) below, the sale, transfer or other disposition of the Property prior to completion of the Improvements required hereunder will not relieve Developer from the obligations set forth in this Agreement, and Developer shall be required to notify City sixty (60) day in advance of any sale or transfer of ownership of the Property or any proposed assignment of this Agreement. If Developer sells or otherwise transfers the Property to any other person or entity prior to final completion of the Improvements, or wishes to assign this Agreement, Developer may request a novation of this Agreement and a substitution of Improvement Securities by the new owner or proposed assignee (hereinafter collectively for purposes of this Section, "Successor"). Developer shall be required to provide any documentation reasonably required by City to determine the appropriateness of any proposed Successor. (b) Any proposed Successor must demonstrate to the City its ability to perform and complete the obligations of Developer under this Agreement, as determined by objective standards of financial capability, creditworthiness and experience required for such performance, and the City shall have the right to compel the Successor to disclose all documents, information and other material which, in City's sole reasonable discretion, may establish or tend to establish that the proposed Successor meets the standards specified herein. Following approval by City and full execution of a novation (or other such release or assignment and assumption agreement(s) entered into by Developer, Successor and City), posting of satisfactory 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). (c) Notwithstanding anything to the contrary contained herein, from and after the date on which the Improvements are completed and accepted by action of the City Council, Developer may, without the approval or consent of the City, sell, transfer, or otherwise dispose of the Property. Additionally, from and after the date on which the Improvements are completed and accepted by action of the City Council, Developer shall not be required to provide any notice to the City regarding any sale, transfer or other disposition of the Property. The Parties acknowledge and agree that the provisions of Sections 17(a) and 17(b) above only apply prior to the completion of the Improvements and their acceptance by action of the City Council. 18. Time. Time is of the essence in this Agreement. 19. Time for Completion of Improvements; Extensions. Page 16 of 23 (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 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 19(b) and (c), below, and shall be made by a writing executed by the in a form as approved by the City Attorney. (b) Any such extension may be granted without notice to Developer's surety and shall not affect the validity of this Agreement or release the surety or sureties on any Improvement Securities given for this Agreement. However, City reserves the right to require as part of any extension amendment a written assurance from the surety acceptable to the City Attorney that the Improvement Securities required by Section 2 of this Agreement shall remain enforceable throughout the term of any extension. (c) The City Manager shall be the sole and final judge as to whether or not good cause has been shown to entitle Developer to an extension. In addition, the time for completion of the Improvements shall be extended for any delay resulting from an act of City, or from an act of God, which Developer could not have reasonably foreseen, or by storm or inclement weather which prevents the conducting of work, or by strikes, boycotts, similar actions by employees or labor organizations, which prevent the conducting of work, and which were not caused by or contributed to by Developer, provided that Developer provides City with written notice of the delaying event within fifteen (15) days of the commencement of the delay. In the event of such delaying event, Developer shall use all reasonable efforts to remedy same and resume completion of the Improvements as promptly as practicable. (d) As a condition of granting an extension of time to complete the Improvements required by this Agreement, the City Manager may require Developer to furnish new or additional Improvement Securities guaranteeing performance of this Agreement as extended in an increased amount as necessary to compensate for any increase in construction costs as determined by the City Engineer. 20. 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. 21. Notice. All notices required by or provided for under this Agreement shall be in writing and delivered in person or sent by certified or registered mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date it is delivered in person, Page 17 of 23 or, if mailed, on the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change of address is filed with City: Notice to City: City of Cathedral City 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 Attn: City Manager With a Copy to: Eric S. Vail, City Attorney Burke, Williams & Sorensen, LLP 1600 Iowa Ave, Suite 250 Riverside, CA 92507 Notice to Developer: Cathedral Cove 1 .0, LLC 1401 Quail Street Suite 100 Newport Beach CA 92660 Attn: Craig A. Smith, Manager With a Copy To: Bryan Cave Leighton Paisner LLP 1920 Main Street, Suite 1000 Irvine, California 92614 Attn: Holly Lopez Notice to surety: 22. Severability. The provisions of this Agreement may be severed from the remainder of this Agreement in accordance with the provisions of this Section 22 and applicable law. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified in writing by the mutual consent of the Parties. 23. Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provisions of this Agreement. 24. Insurance. Page 18 of 23 (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 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 Page 19 of 23 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 Parcel Map 37876. The City reserves the right to require complete, certified copies of all required insurance policies at any time and/or to require Developer to shall provide reports or status updates to evidence compliance of its contractors and subcontractors with the provisions of this Section. (e) Required Endorsements. (i) The Commercial General Liability and Commercial Vehicle/Automotive Liability policies are to contain or be endorsed to contain the following provisions: (1) Additional Insureds. The City of Cathedral City, its officials, officers, employees, agents and independent contractors shall be named as additional insured with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Developer; and with respect to liability arising out of work or operations performed by or on behalf of the Developer including materials, parts or equipment furnished in connection with such work or operations. (2) Primary Insurance. For any claims related to this project, the Developer's insurance coverage shall be primary insurance as respects the City of Cathedral City, its officials, officers, employees, agents and independent contractors. Any insurance or self-insurance maintained by the City of Cathedral City, its officials, officers, employees, agents and independent contractors shall be excess of the Developer's insurance and shall not contribute with it. This endorsement is not applicable to the Commercial Vehicle/Automotive Liability Policy. Page 20 of 23 (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) business 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 24, the City requires and shall be entitled to coverage for the higher limits maintained by Developer. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 25. Attorneys' Fees. In the event any action at law or in equity is brought to enforce the terms of this Agreement, the prevailing Party shall be entitled to litigation costs and reasonable attorneys' fees. 26. Incorporation of Recitals. The Recitals to this Agreement are hereby incorporated into the terms of this Agreement. 27. Entire Agreement. This Agreement constitutes the entire agreement of the City and Developer (collectively, the "Parties," and individually, each, a "Party") and supersedes any prior written or oral agreements between them with respect to the subject matter hereof. All Page 21 of 23 modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the Parties. 28. Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California. In the event that suit shall be brought by either Party to this contract, the Parties agree that venue shall be exclusively vested in the State courts of the County of Riverside, California or where appropriate, in the United States District Court, Southern District of California, Riverside, California. 29. Runs with the Land; Recordation. (a) The Parties agree that the terms and provisions set forth in this Agreement shall be deemed provisions, terms and/or covenants running with the Property as described in Exhibit "A" in accordance with applicable law, including without limitation, California Civil Code section 1468, and shall pass to and be binding upon the heirs, successors and assigns of the Parties to this Agreement, and on any successor owner of the Property. (b) The provisions of Subsection 29(a) notwithstanding, prior to the completion of the Improvements, Developer shall remain jointly and severally liable with its heirs, successors, assigns or successor owners of the Property for the responsibilities and liabilities imposed by this Agreement unless a novation agreement is executed in accordance with the provisions of Section 17 of this Agreement. (c) Upon execution, this Agreement shall be recorded in the Official Records of Riverside County, and by such recordation, it is the intention of the Parties to give notice to and bind their successors, heirs and assigns hereto. 30. Authority of Executing Parties. Each person executing this Agreement on behalf of a Party represents and warrants that such person is duly and validly authorized to do so all behalf of the entity it purports to bind and that he/she is authorized to enter into contracts on behalf of Developer. The undersigned, on behalf of Developer, binds Developer, its partners, successors, executors, administrators, and assigns with respect to the terms and provisions of this Agreement. [END OF THIS PAGE; SIGNATURES ON FOLLOWING PAGE] Page 22 of 23 IN WITNESS WHEREOF, this Agreement is executed by the Parties hereto on the date above first written. Developer: City: CATHEDRAL COVE 1.0, LLC CITY OF F CATHEDRAL CITY a California Limited Liability Company a unicip Corporati By: Fountainhead Development 2.0, LLC A California limited liability company Rita amb, Mayor Its General Partner ATTEST: By: / Craig . Smith, Manager LQ)1JYvitr C�fi r c��sillo CMC. Tracey , City Clerk APPROVE T OR • Eric S. Vail, City Attorney APPROVED AST CONTENT: J h A. orella, Director of E neering/Public Works APP OVED: • /( ‘-0-°'—r-g' Charles P. McClendon City Manager (Proper Notarization of Developer's Signature is required and shall be attached) Page 23 of 23 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 ) ) ss County of Orange ) On May 17, 2023 before me, Sheri Franco-Mora, Notary Public, personally appeared Craig A. Smith who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted,executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. t• `,� Notary RIPublic FRANCO-MORACa lifornia Z Orange County 1144.1/41. . ,. � Commission tt 2294357 My Comm.Expires Jul 19,2023 Signature EXHIBIT "A" LEGAL DESCRIPTION OF "PROPERTY" PARCELS 1, 2, 3, 4 AND 5 OF PARCEL MAP NO. 37876, AS FILED IN PARCEL MAP BOOK 2c) i.,, AT PAGES 4 L THROUGH U4) INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA; PORTIONS OF ASSESSOR PARCELS 687-500-001, 003, 012, 014 AND 018 EXHIBIT "B-1" SUMMARY OF ESTIMATED IMPROVEMENT COSTS PARCEL MAP NO. 37876 "CATHEDRAL COVE" The following cost summary is based upon the attached improvement estimate worksheets and survey monument bond estimate prepared by David Evans Associates dated April 5, 2023, and May 2, 2023, and Desert Water Agency letter dated March 2, 2023.. Public Street Improvements: 1. Demolition. $ 82,252 2. Street improvements: 1,093,690 3. Drainage improvements: 65,200 Subtotal: $1,241,142 10% continencies: 124,114 Total: $1,365,256 Rounded Total: $1,365,300 On-Site Improvements: $ 194,166 10% contingencies: 19,416 Total: $ 213,582 Rounded Total: $ 213,600 Total Off-site and On-site: $ 1,578.900 Monuments: $ 59,800 Sewer and Water improvements (DWA): Sewer improvements: $ 282,283 Water Improvements: $ 102,000 ENGINEER'S COST ESTIMATE 111 PROJECT NO: Cathedral Cove Center LOCATION: East Palm Canyon Drive and Date Palm Drive DAVID EVANS AND ASSOCIATES Imo. DATE: 04/05/2023 BY: David Evans and Associates ITEM DESCRIPTION NO. QTY. UNIT UNIT COST COST Demolition I REMOVE EXISTING ASPHALT CONCRETE PAVEMENT. 24,715 SF $ $ - 2 REMOVE EXISTING CONCRETE PAVEMENT. 10,713 SF $ - $ _ 3 REMOVE EXISTING CONCRETE K-RAIL. 35 LF $ - $ - 4 REMOVE EXISTING 6"CURB AND GUTTER, 1,665 LF $ - $ _ 5 REMOVE EXISTING CONCRETE CURB. 305 LF —$ - $ - 6 REMOVE EXISTING TREE. 19 EA $ - $ - 7 REMOVE EXISTING STORM DRAIN CATCH BASIN. 7 EA $ - Is _ 8 REMOVE AND RELOCATE EXISTING ROAD SIGN. 11 EA $ - ' $ _ REMOVE AND REFURBISH EXISTING DECORATIVE DOUBLE 9 STREET LIGHT. 5 EA $ - $ - REMOVE AND RELOCATE EXISTING PUBLIC ART I EA $ $ 10 MONUMENT. 1 REMOVE(E)IRRIGATION CONTROL VALVES AND 11 COMPONENTS. 11 EA $ - $ 12 REMOVE AND RELOCATE EXISTING TRAFFIC SIGNAL PULL 12 EA $ BOX. $ - 13 REMOVE AND RELOCATE EXISTING TRAFFIC CABINET. 3 EA $ $ - 14 REMOVE AND RELOCATE EXISTING TRAFFIC SIGNAL POLE. 8 EA $ $ _ 15 REMOVE AND RELOCATE EXISTING ELECTRIC PULL BOX. 19 EA $ - $ - 16 REMOVE AND RELOCATE EXISTING ELECTRIC CABINET. 2 EA $ - $ _ 17 REMOVE EXISTING BLOCK/RETAINING WALL. 725 LF $ - $ _ PROTECT IN PLACE EXISTING TELEPHONE UTILITY 18 MANHOLE AND RAISE TO GRADE. 2 EA $ $ _ PROTECT IN PLACE EXISTING TELEPHONE UTILITY PULL $ 19 BOX AND RAISE TO GRADE. 2 EA $ - _ PROTECT IN PLACE EXISTING ELECTRIC VAULT AND RAISE 20 1 , EA $ - $ TO GRADE. - 21 REMOVE AND/OR RELOCATE EXISTING WATER FACILITY. 5 EA $ - $ - PROTECT IN PLACE EXISTING STORM DRAIN MANHOLE AND 22 RAISE TO GRADE. 6 EA $ - $ PROTECT IN PLACE EXISTING SANITARY SEWER MANHOLE 23 AND RAISE TO GRADE. 4 EA $ - $ PROTECT IN PLACE EXISTING WATER GATE VALVE AND 24 RAISE TO GRADE. 4 EA $ - $ _ 25 PROTECT IN PLACE EXISTING ELECTRIC SERVICE MANHOLE 1 I EA $ - $ AND RAISE TO GRADE. I - 26 RELOCATE EXISTING ELECTRIC VENT 2 I EA $ _ 27 OFF-SITE DEMO 1 LS _$ 82,252.00 $ 82,252.00 Sub Total: $ 82,252.00 1 10%Contingency I $ 8,225.20 Total Cost I $ 90,477.20 *Unit cost determined by owner. Prepared By: David Evans and Associates Inc. 18484 OUTER HIGHWAY 18 N 1/2 PSPW0000-0006 ENGINEER'S COST ESTIMATE WIPROJECT NO:Cathedral Cove Center LOCATION:East Palm Canyon Drivb and Date Palm Drive DAVtO EVANS AN.ASSOCIATES'no. DATE:04/05/2023 BY:David Evans and Associates I ITEM it NO. 1. DESCRIPTION QTY. UNIT UNIT COST COST Comments Street Improvement t 1 CONSTRUCT 5.5"AC OVER 6.5"CLASS II AGGREGATE BASE OVER 31,440 SF $ 4.00 ($ 125,760.00 I COMPACTED SUBGRADE MILL&OVERLAY 2 CONSTRUCT SIDEWALK PER MODIFIED RIVERSIDE COUNTY 10,385 SF $ $ STD.401. , 3 SAWCUT AND JOIN EXISTING PAVEMENT. 1,490 LF $ - $ - I Includes 4 CONSTRUCT 6"CURB AND GUTTER PER RIVERSIDE COUNTY 1 LS $ 14B4O00.DO $ 148,000.00 sidewalk,drive STD.200(TYPE A-6). (approaches,& Icross gutters 5 CONSTRUCT CURB RAMP PER RIVERSIDE COUNTY STD.403 4 $ $ - t CASE A'. - 1 Included in#4 6CONSTRUCT CONCRETE DRIVEWAY PER RIVERSIDE COUNTY STD.213. 200 I SF $ $ - Included in#4 7 CONSTRUCT MASONARY RETAINING WALL PER S.P.P.W.C. 48 LF $ $ STD.618-3(TYPE B).COLOR OF BLOCK TO MATCH EXISTING WALL. , g CONSTRUCT 10'WIDE CROSS GUTTER PER RIVERSIDE COUNTY STD.209. 1,415 SF $ $ Included in#4 CONSTRUCT 6"HEIGHT CURB(TYPE D)PER RIVERSIDE COUNTY - 9 STD.204. 340 LF $ $ Included in#4 10 CONSTRUCT GUTTER DEPRESSION PER RIVERSIDE COUNTY 5 EA $ $ STD.311 CASE 13). - Included in#4 11 CONSTRUCT GUTTER DEPRESSION PER RIVERSIDE COUNTY STD.311(CASE C. 1 EA $ $ - Included in#4 12 INSTALL DECORATIVE DOUBLE STREET LIGHT POLE REMOVED 5 I EA $ 4,200.00 $ 21,000.00 AND REFURBISHED. 13 REFURBISH EXISTING DECORATIVE DOUBLE STREET LIGHT PER 1 EA $ 3,800.00 $ 3,800.00 CITY REQUIREMENTS. j 14 (COLD MILL 1-1/2"THICK OF EXISTING AC PAVEMENT AND SF $ - $ - I OVERLAY WITH VARIABLE THICK AC PAVEMENT 3'IN WIDTH. Included in#1 CONSTRUCT REINFORCED 6"STAMPED PCC OVER 5"CLASS II SF $ $ 1 13 AGGREGATE BASE OVER 24"COMAPACTED SUBGRADE. 16 CONSTRUCT GUTTER DEPRESSION PER RIVERSIDE COUNTY 1 EA $ $ STD.312,CASE A. Included in#4 17 'PROTECT IN-PLACE EXISTING UTILITY MANHOLE AND ADJUST RIM 5 EA $ $ TO GRADE AS NECESSARY Included in demo 18 EARTHWORK CUT/FILL 1 LS $ 51,5613.00 $ 51,568.00 Grading for AC, C&G,sidewalk, subgrades,spoil haul off 19 EARTHWORK FILL 0 CY $ - I$ - CONSTRUCT CONCRETE FINISH AT MEDIAN NOSE TO MATCH 20 EXISTING-COLOR:RED,FINISH:DIAGONAL DIAMOND SCORING 0 LF I - $ - 21 ISiGNING AND STRIPING 1 I LS �S 15,062.00`5 15,062.00 22 S GNAL MODIFICATION(ALLEN AVE; 1 LS $ 320,500.00 $ 320,500.00 1 23 SIGNAL MODIFICATION DATE PALM DRIVE) 1 LS $ 395,000.00 $ 395,000.00 I 24 EROSION CONTROL IMPLEMENTATION 1 LS $ 1'3,000.00 $ 13,000.00 Sweeping&inlet i protection II Sub Total: I$ 1,093,690.00 I 10%Contingency 1$ 109,369.00 I FTotal Cost I$ 1,203,059.00 I) 'Unit cost determined by owner. Prepared By: David Evans and Associates Inc. 18484 OUTER HIGHWAY 18 N APPLE VALLEY,CA 92307 760-524-9100 1/1 PSPW0000-0006 ENGINEER'S COST ESTIMATE >0 PROJECT NO: Cathedral Cove Center IV" LOCATION: East Palm Canyon Drive and Date Palm Drive DAVID EVANS Avo A S S O C I AT E S iNG DATE: 04/05/2023 BY: David Evans and Associates ITEM DESCRIPTION QTY. UNIT UNIT COST COST NO. Storm Drain Improvement 1 POTHOLING AND UTILITY LOCATION 1 LS $ - $ CONSTRUCT STORM DRAIN CATCH BASIN PER 2 RIVERSIDE COUNTY STD. NO.300 AND LOCAL 3 EA $ - $ DEPRESSION PER RIVERSIDE COUNTY STD. NO.311, CASE B. 3 CONSTRUCT 18"R.C.P. STORM DRAIN PIPE. 75 LF $ - $ 4 JOIN EXISTING STORM DRAIN WITH CONCRETE 1 EA $ - $ COLLAR PER S.P.P.W.C. 380-4. JOIN EXISTING STORM DRAIN AND CONSTRUCT 5 JUNCTION STRUCTURE PER RIVERSIDE COUNTY 2 EA $ - $ FLOOD CONTROL AND WATER CONSERVATION DISTRICT STD.JS227. 6 OFF-SITE STORM DRAIN(CATCH BASINS;JUNCTION 1 LS $ 65,200.00 $ 65,200.00 STRUCTURES, 18'LATERAL $ - ' $ $ - $ _ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ $ $ $ $ Sub Total: $ 65,200.00 10%Contingency $ 6,520.00 Total Cost 1 $ 71,720.00 *Unit cost determined by owner. Prepared By: David Evans and Associates Inc. 18484 OUTER HIGHWAY 18 N APPLE VALLEY,CA 92307 760-524-9100 1/1 PSPW0000-0006 OOOOOOO � � �CO CO e- coOO ' OCO CO O O � Nt U) M NN M In O T O E- e- NIO O o U 0 n F Q a. a. o: (a v,, Ea a} 64 69. cfl ' . 69, 40 W Q E1 co O O O Jr) O 0 in 0 N N N v- N O 01 O co u .. 1/J L V caN I- U C z W a6r 69 VI CO N- F-- u i E o > g E. W a• v. '� V) U)LL" J J J J J5 y C > rrr...�......a �U u W` O Q-,r..,,,,r. .....s,..,.s.. s,.. -,re...am....w wawa Alm.x,_ .►... 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Q a O DAVID EVANS AND ASSOCIATES INC- SURVEY MONUMENT BOND ESTIMATE PARCEL MAP NO. 37876 CATHEDRAL CITY, CA ' (Revised May 2,2o23) Description of Services Sovered by Estimate: The scope of work covered by this survey monument bond estimate letter to ensure the setting of final monumentation of Parcel Map No.37876 on the south side of East Palm Canyon Drive between Van Fleet Avenue and Date Palm Drive,is itemized below. Costs are based on current prevailing wage rates,the assumption that David Evans and Associates will perform this work,and that it will be accomplished by November 2o24. Centerline monuments and parcel corner monuments are included,as described in the monumentation note on Sheet 4 of the Parcel Map. Also included in the estimate is setting four ties per centerline monument,which includes eight existing and eight new centerline monuments,as shown on sheets 3 and 4 of the Parcel Map. Scop_e_of Work&Costs: Field Work: - Control establishment and/or verification - Set 8 centerline spikes and washers - Set 4 reference ties(lead,tack and tag or other suitable permanent reference point)for 8 new and 8 existing centerline monuments - Set 26 lead,tack and tag parcel corner monuments - Set 32 one-inch iron pipe and cap parcel corner monuments - Set io spike and washer parcel corner monuments Office Work: - Prepare field work;boundary verification - Prepare centerline tie sheets or Corner Records and file with City of Cathedral City or Riverside County Surveyor(includes addressing one round of plan check comments) - Materials&Mileage - Project Management Total $59,800 4.10 LAND sU *4, 'PL .73 No.7137 cr, Ro rt Walker,LS 7137 -97 OF Paul Ortega, President(Division 4) f E S E R T \A/l ,T E R Mark S. Krause,General Manager-Chief Engineer Jeff Bowman,Vice President(Division 3) .� Best, Best&Krieger,General Counsel Gerald McKenna,Secretary Treasurer(Division 2) Krieger&Stewart,Consulting Engineers Kristin Bloomer,Director(Division 5) Steve Grasha,Director(Division I) March 2, 2023 CITY OF CATHEDRAL CITY ATTN;JOHN CORELLA 66700 Avenida Lalo Guerrero Cathedral City,CA 92234 RE: PM 37876—CATHEDRAL COVE PROJECT 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 sanita-y 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: $ 102,000.00 2. Labor&Material Performance Bond: $ 51,000.00 Sanitary Sewer 1. Faithful Performance Bond: $ 282,282.50 2. Labor&Material Performance Bond: $ '141,141.25 These amounts,shall not be released until.,i;_he obligation is.perforrried tq.the i; i action.,of the Desert Water.Agency. 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, ON:C,=US,E=Jgovea@dwa.org, Q,-CESERT WATER AGENCY, Jose GovpaOU=Engineeerirg,CN=Jose Govea Jose Govea Engineering Technician JG/Idj GAIT/FORMS/BOND1 Desert Water Agency— 1200 South Gene Autry'Pair:Palm Springs,CA 92264 n/n n r,1" n_i., r_ . . /`• nnn/n 191n 1 hL_.__ r1/n\nnn An>, I I- ,-r/no'1'lr rrnr. 1 ,.r r _, EXHIBIT "B-2" SUMMARY OF REQUIRED IMPROVEMENT SECURITIES PARCEL MAP NO. 37876 "CATHEDRAL COVE" PUBLIC AND PRIVATE IMPROVEMENTS Faithful performance bond: $ 1,578,900 Labor & materials bond: $ 789,450 WATER IMPROVEMENTS Faithful performance bond: $ 102,000 Labor & materials bond: $ 51,000 SEWER IMPROVEMENTS Faithful performance bond: $ 282,283 Labor & materials bond: $ 141,141 SURVEY MONUMENTS, CORNERS, CENTERLINE TIES Cash bond: $ 59,800 EXHIBIT B-3 DESCRIPTION OF IMPROVEMENTS COVERED BY THIS AGREEMENT The public and private improvements covered by this Improvement Agreement generally include, but are not limited to the following: --the widening and improvement of the southerly side of East Palm Canyon Drive, easterly of Van Fleet Street, between Stations 783+28 and 798+00, as shown on Sheets 5 and 6 of the "Offsite Improvements for Phase 1 of Cathedral Cove Center", prepared by DEAAssociates, which plans are on file in the office of the City Engineer of Cathedral City, including construction of new concrete curb and gutter, asphaltic concrete pavement, sidewalks, parkway improvements, cross gutters, spandrels, access ramps, curb returns, decorative pavement, concrete driveway approaches, storm drain inlets and connector pipes,. decorative street lights, median island reconstruction, and traffic signal modifications, pavement markers, traffic signs and pavement striping. --on-site improvements including paved access ways, decorative pavement, curbing, gutters, sidewalks, drainage facilities, landscaped median island --construction of sanitary sewer main, fire protection facilities, water pipelines and hydrants, water meter connections and manifolds, and related valves, manholes, and appurtenances.