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HomeMy WebLinkAbout05080 - K HOVNANIAN'S FOUR SEASON AT PALM SPRINGS LLC TM30058 SUBDIVISION IMPROVEMENT AGREEMENT 0 Kathie Hart From: Carol Templeton Sent: March 22, 2011 8:16 AM To: Kathie Hart Subject: RE: A5080 -TM 30058- Four Seasons Hi Kathie, Yes, close it! Carol Templeton, Engineering Associate City of Palm Springs Engineering Division 1..� Direct(760) 323-8253 Ext. 8741 1 Fax (760) 322-8360 or 322-8325 Please note new email address: C...a..r..of,templeton„c@palmspringsca.gov http://www.qcode.us/codes/paimsprings/view.p p NOTE THAT CITY HALL OFFICE HOURS ARE MONDAY THROUGH THURSDAY 8 AM TO 6 PM. THE PUBLIC ENGINEERING COUNTER IS CLOSED MONDAY THROUGH THURSDAY 11 AM TO 2 PM. CONFIDENTIALITY NOTICE—This e-mail transmission, and any documents, files or previous e-mail messages attached to it may contain information that is confidential or legally privileged. If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you are hereby notified that you must not read this transmission and that any disclosure, copying, printing, distribution or use of any of the information contained in or attached to this transmission is STRICTLY PROHIBITED. If you have received this transmission in error, please immediately notify the sender by telephone at(760) 323-8253 X8741 or return e-mail and delete the original transmission and its attachments without reading or saving in any manner. From: Kathie Hart Sent: Monday, March 21, 2011 4:19 PM To: Carol Templeton Subject: A5080 -TM 30058 - Four Seasons Carol: May this agreement f ile be closed? Thx! k Kathie Hart, CMC Chief Deputy City Clerk City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs,CA 92262 T (760) 323-8206 1 g (760) 322-8332 ® Kathie.Hart@ Pal mSpringsCA,gov Please note that City Hall is open S a.m. to 6 p.m.Monday through Thursday,and closed on Fridays at this time. n11iT_)i1 i X Q Kr a� s�f'i City of Palm Springs r Department of Public Works and Engineering 3200 E Tahquitr Ginycm Way • Palm Springs, California 9226? T(+ (76o) 323 82.53 • Fax. (760) 322-8360 • Web www.palmspring sc41" —4 v� '� n C✓ March 9, 2011 cam 1 r C; x� n Lockton Insurance Agency �K(j,, 19800 MacArthur Blvd., Suite 550 C' Irvine, CA 92612 �� N Attn: Melissa Lopez Re: Tract Map 30058, "Four Seasons" Please consider this letter as the City of Palm Springs' notice that the obligations of the Subdivision Improvement Agreement between the City of Palm Springs and K. Hovnanian's Four Seasons Palm Springs, LLC, related to Tract Map 30058, have been satisfied. The one-year Maintenance/Warranty period ended on March 8, 2011, so that the $687,600.00 Maintenance/Warranty Bond can now be released. • Maintenance &Warranty Bond; Bond No. 4402034-M; $0.00 The other bonds that were associated with the Subdivision Improvement Agreement have been released previously. • Faithful Performance Bond; Bond No. 4402034; $0.00 • Labor/Materials Bond; Bond No. 4402034 $0.00 Included in Perf. Bond premium) • Monumentation Bond; Bond No. 4402033; $0.00 If you have any questions, I can be reached at (760) 323-8253, extension 8741. Sincerely, Carol Templeton Engineering Associate cc: Melissa Lopez, Lockton Insurance Brokers, Inc. - via facsimile: (949) 252-4410; Chris Courtney of K. Hovnanian via email;James Thompson, City Clerk; TM30058 file t) .#- n47r;,--_ u,_v ')-7/z 9 n i.v Off. PA!/w.SA U - City of Palm Springs Department of Public Works and Engineering �Aokared � 3200 E.Tahquirz Canyon Way • Palm Springs,California 92262 C,q 0 Tel; (760) 323-8253 - Fax:(760) 322-8360 • Web: www.paimspringsca.gov February 22, 2011 K. Hovnanian's Four Seasons Palm Springs, LLC 1500 S. Haven Avenue, Suite 100 Ontario, CA 91761 Attn: Christopher Courtney Re:Tract Map 30058 (K. Hovnanian's Four Seasons Palm Springs, LLC): Time Extension for Subdivision Improvement Agreement Mr. Courtney: On February 2, 2011, the City Council approved a one-year time extension for Subdivision Improvement Agreement No. 5080 for Tract Map No. 30058 (Four Seasons II), with K. Hovnanian's Four Seasons Palm Springs, LLC. The new expiration date for the Tract Map No. 30058 Subdivision Improvement Agreement is April 16, 2012. If you have any questions, I can be reached at(760) 323-8253, extension 8741. Sincerely, > Carol Templeton Engineering Associate ca Cc: Christopher Courtney of K.Hovnanian,via email;City Clerk;TM30058 file Post Office Box 2743 0 Palm Springs, California 92263-2743 QpALMS A'P/ City of Palm Springs 4 N w Depafcrnent of Public Works and Engineering '�.�o0 0��+ y 3200 E.T:i6quitz Canyon Wqy • Palm Sprin3ti,UiFornia 92262 • C " ' �p Tel. (160)323-8253 ' Pax. (76u) 322-8360 • Web. www.ci.palm-springsx,us ItlFC7R� o March 8, 2010 Lockton Insurance Agency =I _ 19800 MacArthur. Blvd., Suite 550 r Irvine, CA 92612 Attn: Melissa Lopez Re: Tract Map 30058, "Four Seasons" Please consider this letter as the City of Palm Springs' notice that the obligations of the Subdivision Improvement Agreement between the City of Palm Springs and K. Hovnanian's Four Seasons Palm Springs, LLC, related to Tract Map 30058, have been fully satisfied. The Desert Water Agency has authorized the release of the $1,680,000 water bond remaining in the Faithful Performance Bond, as well as the $840,000 water bond remaining in the Labor/Materials Bond. The following securities required by the agreement may now be reduced to the following amounts: • Faithful Performance Bond; Bond No. 4402034; $0.00 • Labor/Materials Bond; Bond No. 4402034; $0.00 (Included in Perf. Bond premium) The date of acceptance of all of the work in its entirety is March 8, 2010. The Maintenance/Warranty Bond shall remain in full force and effect for one year after the date of acceptance of all of the improvements (i.e., until March 8, 2011). The following security required by the Subdivision Improvement agreement shall remain in effect at this time. • Maintenance &Warranty Bond; Bond No. 4402034-M; $ 687,600.00 • Monumentation Bond; Bond No. 4402033; $ 0.00 If you have any questions, I can be reached at(760) 323-8253, extension 8741. Sincerely, C' J_0��V� Carol Templeton Engineering Associate CC! Melissa Lopez, Lockton Insurance Brokers, Inc. - via facsimile: (949) 2524410, Chris Courtney of K Hovnanian via email; James Crandall of K. Hovnanian via email;Aaron Hardy of K. Hovnanian via email;James Thompson, City Clerk; TM30056 file Post Office Box 2743 • Palm Springs, Cal iforaia 92263-2743 kpArM Sp A. 'c City of Palm Springs V N • Deparunenr of Public Works and Engineering * q o ^ 3200 E Tahquaz n s Canyon Way • Palm Spri , Caldorma 92262 v C -P TcF (760) 32 i-8253 • Fax: (760) 322-8360 • Webt www❑palm-sprin�aea us -1 IFORN January 5, 2010 Lockton Insurance Agency 19800 MacArthur Blvd., Suite 550 V V V Irvine, CA 92612 Attn: Melissa Lopez Re: Tract Map 30058, "Four Seasons" Please consider this letter as the City of Palm Springs' notice that the obligations of the Subdivision Improvement Agreement between the City of Palm Springs and K. Hovnanian's Four Seasons Palm Springs, LLC, related to Tract Map 30058, have been partially satisfied. The following security required by the Subdivision Improvement agreement shall remain in effect at this time. The remaining portion of the Labor/Materials Bond can not be released until the Desert Water Agency authorizes the release of the $1,680,000 water bond remaining in the Faithful Performance Bond. The following security required by the agreement may now be reduced to the following amount: • Labor/Materials Bond; Bond No- 4402034 $840,000.00 (Included in Perf. Bond premium) The Desert Water Agency has not yet authorized the release of the water bond at this time (which accounts for $1,680,000 in Faithful Performance Bond). The Maintenance/Warranty Bond shall remain in full force and effect for one year after the date of acceptance of all of the improvements (which has not occurred yet). • Faithful Performance Bond; Bond No. 4402034; $1,680,000.00 • Monumentation Bond; Bond No. 4402033; $ 0.00 • Maintenance &Warranty Bond; Bond No. 4402034-M: $ 687,600-00 If you have any questions, I can be reached at(760) 323-8253, extension 8741. Sincerely, Carol Templeton Engineering Associate CC.' Melissa Lopez Lockton Insurance Brokers, Inc. - via facsimile: (949) 252-4410; Chris Courtney of K. Hovnanian via email;James Crandall of K Hovnanian via email;Aaron Hardy of K Hovnanian via email;James Thompson, City Clerk; TM30058 file Posz Office Box 274) • Palm Springs, California 92263-2743 �ppLM S,0 amity of Palm springs c U N * Department of Public Works and Engineering 3200 B. TahcTnirz,Cinyon IX/ay • Palm Springy, ClI1Forn11 92262 r e°a R°raa' P 7e] (760)323.3253 ' Fix: (760) 322.8360 • Wcb. mcv w.ci.paLn-5priug5.n.us 0 p,5n$a February 27, 2009 K. Hovnanian's Four Seasons Palm Springs, LLC 1500 S. Haven Avenue, Suite 100 Ontario, CA 91761 Attn: Aaron Hardy Re:Tract Map 30058 (K. Hovnanian's Four Seasons Palm Springs, LLC): Time Extension for Subdivision Improvement Agreement Mr. Hardy: On February 18, 2009, the City Council approved a one-year time extension for the completion of improvements associated with Subdivision Improvement Agreement No. 5080 for Tract Map No. 30058 (Four Seasons II), with K. Hovnanian's Four Seasons Palm Springs, LLC, adding a requirement that by June 1, 2009, the base paved on-site streets be fully paved, with the final adjustment to grade of the sewer manholes and water valves on these streets. The new expiration date for the Tract Map No. 30058 Subdivision Improvement Agreement is April 16, 2010_ If you have any questions, I can be reached at (760) 323-8253, extension 8741. Sincerely, �u/w �- Carol Templeton o Engineering Associate Co. Aaron Hardy of K Hovnanian via email,City Clerk;TM30058 file n 7-1 c C7 C GQl _ Post Office Box 2743 • Palm Springs, California 92263-2743 I- PALM \ City of Palm Springs , Department of Public Works and l;ngineering 3200 E.Tahyu=Canyon Way • Palm Springs, California 92262 q(IFpRN� Tel: (760)323-8253 • Pax:(760)322-5360 • Web:www.ci.palm-springs.ca.us April 21, 2008 K. Hovnanian's Four Seasons Palm Springs, LLC 2525 Campus Drive Irvine, CA 92612 Attn: Sylvia Smith Re:Tract Map 30058 (K. Hovnanian's Four Seasons Palm Springs, LLC): Time Extension for Subdivision Improvement Agreement Ms. Smith: On April 16, 2008, the City Council approved a one-year time extension for the completion of improvements associated with Subdivision Improvement Agreement No. 5080 for Tract Map No. 30058 (Four Seasons), with K. Hovnanian's Four Seasons Palm Springs, LLC, adding a requirement that by June 21, 2008, the base paved on-site streets be fully paved, with the final adjustment to grade of the sewer manholes and water valves on these streets. The only streets that do not have to be final paved by June 21, 2008 are Suncrest Trail (or Lot °V°), Blue Mountain Road, and Desert Creek. The new expiration date for the Tract Map No. 30058 Subdivision Improvement Agreement is April 16, 2009. If you have any questions, I can be reached at(760) 323-8253, extension 8741. Sincerely, Carol Templeton Engineering Associate r, '= cc. Cheryl Krnsley,K Hovnanian's Four Seasons at Palm Springs,LLC -via email;Sylvia Smith,K.HOVnSniaO Four Seasons at Palm Springs,LLC;CO Clerk;TM30058 file - Cn Post Office Box 2743 1 Palm Springs, California 92263-2743 C OOC N 200S-0341L284 04/29/2005 08:00R Fee:NC Page 1 of 31 Recorded in Official Records County of Riverside RECORDING REQUESTED BY: Larry W. Ward CITY OF PALM SPRINGS Assessor, County Clerk & Recorder I IIIIII IIIIIII IIII IIII IIIIII IIIII IIIIII III IIIII IIII IIII AND WHEN RECORDED MAIL TO: ` -- -- - -- City of Palm Springs M $ U PAGE SIZE DA POOR INDOOR ONE misc. P. O. Box2743 � Palm Springs, CA 92263VIE' —141� C1 Attn: City Clerk A R L COPY LONG REFUND CHG I u SPACE ABOVE FOR RECORDER ONLY Filing fee EXEMPT per Government Code -103 TP A5080 Subdivision Improvement Agreement K HOVNANIAN'S FOUR SEASONS AT PALM SPRINGS LLC Title or Document K Hovnanian's Four Seasons at Palm Springs, LLC Subdivision Imprrnrement Agr AGREEMENT#5080 Res 21246, 4-20..05 THIS AREA FOR RECORDERS' USE ONLY THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) H:\USERS\C-CLK\RECORDER\RECORD.REQ.dm C W"0' t SUBDIVISION IMPROVEMENT AGREEMENT by and between CITY OF PALM SPRINGS and K. HOVNANIAN'S FOUR SEASONS AT PALM SPRINGS, LLC A CALIFORNIA LIMITED LIABILITY COMPANY III III I I II I I 1 111111111111 Hill I II 04.'^c9�200£¢38�0E+fl t TABLE OF CONTENTS 1.Construction Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Works of Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Other Obligations Referenced in Conditions of Tentative Map Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.3 Intent of Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.4 Survey Monuments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.5 Performance of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.6 Changes in the Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.7 Defective Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.8 No Warranty by City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.9 Authority of the City Engineer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.10 Documents Available at the Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.11 Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.12 Compliance with Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.13 Suspension of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.14 Final Acceptance of Works of Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2. Time for Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1 Commencement and Completion Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.2 Phasing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.3 Force Majeure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.4 Continuous Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.5 Reversion to Acreage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.6 Time of the Essence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3. Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3.1 Labor Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3.2 Nondiscrimination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3.3 Licensed Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3.4 Workers' Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4. Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4.1 Required Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4.2 Form of Security Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4.3 Subdivider's Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4.4 Letters of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 4.5 Release of Security Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5. Cost of Construction and Provision of Inspection Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5.1 Subdivider Responsible for All Related Costs of Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5.2 Payment to City for Cost of Related Inspection and Engineering Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6. Acceptance of Offers of Dedication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 i 1111 II 11111111111111111111111111111 III 04�r9 3 of' �1 ©©R 7. Warranty of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8. Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8.1 Remedies Not Exclusive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8.2 City Right to Perform Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8.3 Attorney's Fees and Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9. Indemnity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10.1 Successors and Assigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10.2 No Third Party Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10.3 Entire Agreement; Waivers and Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 11. Corporate Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 IIIIIIIIIIIIII IIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIII 04 9040of 38p90R SUBDIVISION IMPROVEMENT AGREEMENT THIS SUBDIVISION IMPROVEMENT AGREEMENT (this "Agreement") is entered into this day of �XoA\ 2005, by and between the CITY OF PALM SPRINGS, a municipal corporation of the State of California ("CITY"), and K. HOVNANIAN'S FOUR SEASONS PALM SPRINGS, LLC, a California Limited Liability Company ("Subdivider"). RECITALS A. Subdivider is the owner of, and has obtained approval of a subdivision map for Tract Map No. 30058, located in the City of Palm Springs, County of Riverside, State of California (the "Property"), as described on Exhibit "A". The map contains conditions of approval for the development of the Property (the "Conditions") as described on Exhibit "B". B. Pursuant to the Conditions, Subdivider, by the Map, has offered dedication to the City of Palm Springs an easement for public sewer and public utility purposes, with the right of ingress and egress for service and emergency vehicles and personnel over Lots "N", "Q", "R", 'S", "T", "U", W", "W", "X", "Y", "Z", "AA", "BB", "CC", "DID", "EE", and "FF"; and an easement for public utility purposes over Lots "J", "K", "L", and "M"; and City desires to accept said dedications and to accept certain other improvements as described in this Agreement. C. Subdivider has delivered to City and City has approved plans and specifications and related documents for certain "Works of Improvement" (as hereinafter defined) which are required to be constructed and installed in order to accommodate the development of the Property. D. Subdivider's agreement to construct and install the Works of Improvement pursuant to this Agreement and its public dedications and other improvements, as described in this Agreement, are a material consideration to City in approving the parcel map for the Property and permitting development of the Property to proceed. COVENANTS Based upon the foregoing Recitals which are incorporated herein by reference and in consideration of City's approving the Map for the Property and permitting development of the Property to proceed, Subdivider agrees to timely perform all of its obligations as set forth herein. 1. Construction Obliqations. 1.1 Works of Improvement. Subdivider agrees, at its sole cost and expense, to construct or install or cause to be constructed or installed the street, drainage, domestic water, sanitary sewer and other improvements (herein sometimes collectively referred to as the"Works of Improvement"), as the same may be supplemented and revised from time to time as set forth herein (said plans and specifications, together with all related documents, are referred to herein as the "Plans"). The estimated construction cost for the Works of Improvement is $4,584,000.00. 1.2 Other Obliqations Referenced in Conditions of Tentative Map Approval. In addition to the foregoing, Subdivider shall satisfy all of the conditions of approval on the Tentative Map for the Property. The conditions of approval associated with the Tentative Map are included as Exhibit "B" attached hereto. 1 ������1111111 fill IIII Pill 1111111111111111 fill IIII ��? 5°f 31 1.3 Intent of Plans. The intent of the Plans referenced in Section 1.1 is to prescribe a completework of improvement which Subdividershall perform orcause to be performed in a manner acceptable to the City Engineer (or his/her designee) and in full compliance with all codes and the terms of this Agreement. Subdivider shall complete a functional or operable improvement orfacility, even though the Plans may not specifically call out all items of work required for the contractor to complete its tasks, incidental appurtenances, materials, and the like. If any omissions are made or information necessary to carry out the full intent and meaning of the Plans, Subdivider or its contractor shall immediately notify its design engineer who will seek approval of the City Engineerfor furnishing of detailed instructions. In the event of any doubt or question arising regarding the true meaning of any of the Plans, reference shall be made to the City Engineer whose decision thereon shall be final. Subdivider recognizes that the Plans consist of general drawings. All authorized alterations affecting the requirements and information given on the Plans shall be in writing and approved bythe City Engineer.The Plans shall be supplemented by such working or shop drawings as are necessary to adequately control the work. Without the City Engineer's prior written approval, no change shall be made by Subdivider or Subdivider's contractor to any plan, specification, or working or shop drawing after it has been stamped as approved. 1.4 Survey Monuments. Before final approval of street improvements, Subdivider will place survey monument(s) as shown on the Map in accordance with the provisions of the State Subdivision Map Act and the Subdivision Ordinance of the City of Palm Springs. Subdivider shall provide security for such obligation as provided in Section 4.1(a)(iii) and, after setting the monument(s), Subdivider shall furnish the City Engineer of the City of Palm Springs written notice of the setting of said monument(s) and written proof of having paid the engineer or surveyor for the setting of said monument(s). 1.5 Performance of Work. Subdivider shall furnish or cause to be furnished all materials, labor, tools, equipment, utilities, transportation, and incidentals required to perform Subdivider's obligations under this Agreement. 1.6 Changes in the Work. The City Engineer, without invalidating this Agreement and without notification to any of the sureties or financial institutions referenced in Paragraph 4, may order extra work or may make changes by altering or deleting any portion of the Works of Improvement as specified herein or as deemed necessary or desirable by the City Engineer as determined necessary to accomplish the purposes of this Agreement and to protect the public health, safety, or welfare. The City Engineer shall notify Subdivider or Subdivider's contractor in writing (by Correction Notice) at the time a determination has been made to require changes in the work. No field changes performed or proposed by Subdivider or its contractor shall be binding on City unless approved in writing by the City Engineer. 1.7 Defective Work. Subdivider shall cause its contractor to repair, reconstruct, replace, or otherwise make acceptable any work found by the City Engineer to be defective. 1.8 No Warranty bV City. The Plans for the Works of Improvement have been prepared by or on behalf of Subdivider or its consultants or contractors, and City makes no representation or warranty, express or implied, to Subdivider or to any other person regarding the adequacy of the Plans or related documents. 1.9 Authority of the City Engineer. In addition to the authority granted to the City Engineer elsewhere in this Agreement,the City Engineer shall have the authority to decide all questions which may arise as to the quality and acceptability of materials furnished and work performed, and all questions as to the satisfactory and acceptable fulfillment of the terms of this Agreement by Subdivider and Subdivider's contractor. III I 11111111111 II I II1111111111111111111111 II 04/50 200541 08 OCR 6 of 31 1.10 Documents Available at the Site. Subdivider shall cause its contractor to keep a copy of all approved Plans at the job site and shall give access thereto to the City's inspectors and engineers at all times. 1.11 Inspection. Subdivider shall have an authorized representative on the job site at all times during which work is being done who has full authority to act for Subdivider, or its design engineer, and Subdivider's contractor(s) regarding the Works of Improvement. Subdivider shall cause its contractor to furnish the City with every reasonable facility for ascertaining whether or not the Works of Improvement as performed are in accordance with the requirements and intent of this Agreement, including the Plans. If the City inspector requests it, the contractor at any time before acceptance of the Works of Improvement shall remove or uncover such portions of the finished work as may be directed which have not previously been inspected.After examination,the contractor shall restore said portions of the work to the standards required hereunder. Inspection or supervision by the City shall not be considered as direct control of the individual workmen on the job site. City's inspector shall have the authority to stop any and all work not in accordance with the requirements contained or referenced in this Agreement. The inspection of the work by City shall not relieve Subdivider or the contractor of any obligations to fulfill this Agreement as herein provided, and unsuitable materials or work may be rejected notwithstanding that such materials or work may have been previously overlooked or accepted. 1.12 Compliance With Law. In addition to the express provisions of this Agreement and the Plans, Subdivider shall cause construction of the Works of Improvement to be completed in accordance with all other applicable federal, state, and local laws, ordinances, rules and regulations. 1.13 Suspension of Work. City Engineer shall have authority to order suspension of the work for failure of the contractor to comply with law pursuant to Section 1.11. In case of suspension of work for any cause whatever, Subdivider and its contractor shall be responsible for all materials and shall store them properly if necessary and shall provide suitable drainage and erect temporary structures where necessary. 1.14 Final Acceptance of Works of Improvement. After Subdivider's contractor has completed all of the Works of Improvement, Subdivider shall then request a final inspection of the work. If items are found by the inspector to be incomplete or not in compliance with this Agreement or any of the requirements contained or referenced herein, City will inform the contractor of such items. After the contractor has completed these items, the procedure shall then be the same as specified above for the contractor's initial request for final inspection. If items are found by City's inspector to be incomplete or not in compliance after two (2)"final" inspections, City may require the contractor, as a condition to performing further field inspections, to submit in writing a detailed statement of the work performed subsequent to the date of the previous inspection which was found to be incomplete or not in compliance at that time. No inspection or acceptance pertaining to specific parts of the Works of Improvement shall be construed as final acceptance of any part until the overall final acceptance by City is made. Final acceptance shall not constitute a waiver by City of defective work subsequently discovered. The date on which the Works of Improvement will be considered as complete shall be the date of the Notice of Acceptance. 2. Time for Performance. 2.1 Commencement and Completion Dates. Subject to Section 2.2 and 2.3 below, Subdivider shall (i) commence with construction and installation of the Works of Improvement thirty IIIIIIIIN1111111111111111111111111111111111111111111 Ea za67 f' 318eeA 30 days following City's approval of the Plans("Commencement Date"); and (ii)complete or cause to be completed all of the Works of Improvement two (2) years after the Commencement Date. Extensions of time for completion of the Works of Improvement may be granted upon approval by the City Engineer or his designee. Extension of time may be granted upon mutual agreement of the City Engineer and Subdivider, either verbally or in writing, as required by the City Engineer or his designee. 2.2 Phasing Requirements. Notwithstanding the provisions of Section 2.1, City reserves the right to control and regulate the phasing of completion of specific Works of Improvement as required to comply with applicable City ordinances, regulations, and rules relating to the timely provision of public services and facilities. In addition to whatever other remedies City may have for Subdivider's failure to satisfy such phasing requirements, as the same now exist or maybe amended from time to time, Subdivider acknowledges City's right to withhold the issuance of further building permits on the Property until such phasing requirements are satisfied. Prior to issuance of building permits, Subdivider shall provide satisfactory evidence that all applicable requirements that are a condition to issuance of building permits have been satisfied. Such requirements may include the payment of fees, construction of improvements,or both. Final inspections or issuance of Certificates of Occupancy may be withheld from the Subdivider by the City, if, upon a determination by the City Engineer or his designee, completion of specific Works of Improvements or other requirements associated with the development of the Property have not been completed to his satisfaction. 2.3 Force Majeure. Notwithstanding the provisions of Section 2.1, Subdivider's time for commencement and completion of the Works of Improvement shall be extended for the period of any enforced delay caused due to circumstances beyond the control and without the fault of Subdivider, including to the extent applicable adverse weather conditions, flood, earthquakes, strikers, lockouts, acts or failures to act of a public agency(including City), required changes to the scope of work required by City, and similar causes; provided, however, that the period of any enforced delay hereunder shall not include any period longer than five(5)days prior to City's receipt of a written notice from Subdivider or its Contractor detailing the grounds for Subdivider's claim to a right to extend its time for performance hereunder. City Engineer shall evaluate all claims to Force Majeure and his decision shall be final. 2.4 Continuous Work. After commencement of construction of the Works of Improvement (or separate portion thereof), Subdivider shall cause such work to be diligently pursued to completion, and shall not abandon the work for a consecutive period or more than thirty(30) days, events of Force Majeure excepted. 2.5 Reversion to Acreaqe. In addition to whatever other rights City may have due to Subdivider's failure to timely perform its obligations hereunder, Subdivider recognizes that City reserves the right to revert the Property to acreage subject to the limitations and requirements set forth in California Government Code Sections 66499.11-66499.20-3/4. In this regard, Subdivider agrees that if the Works of Improvement have not been completed on or before the later of two (2) years from the date of this Agreement or within the time allowed herein, whichever is the later, and if City thereafter initiates proceedings to revert the Property to acreage, pursuant to Government Code Section 66499.16 Subdivider hereby consents to reversion and agrees that any improvements made by or on behalf of Subdivider shall not be considered in determining City's authority to revert the Property to acreage. 2.6 Time of the Essence. Time is of the essence of Subdivider's performance of all of its obligations under this Agreement, e II IN III 11111111111111111111111111 e4,�8 ¢ o£�1 3. Labor. 3.1 Labor Standards. Subdivider shall be responsible for causing all contractors and subcontractors performing any of the Works of Improvement to comply with all applicable federal and state labor standards, including to the extent applicable the prevailing wage requirements promulgated by the Director of Industrial Relations of the State of California Department of Labor. 3.2 Nondiscrimination. Subdivider agrees that no contractor or subcontractor performing any of the Works of Improvement shall discriminate against any employee or prospective employee with respect to such work in hiring, promotion, seniority, or any other terms and conditions of employment on the grounds of race, creed, color, national origin, ancestry, religion, sex, or marital status. 3.3 Licensed Contractors. Subdivider shall cause all of the Works of Improvement to be constructed by contractors and subcontractors with valid California Contractors' licenses for the type of work being performed. 3.4 Worker's Compensation. Subdivider shall cause every contractor and subcontractor performing any of the Works of Improvement to carry Workers'Compensation Insurance as required by the Labor Code of the State of California and shall cause each such contractor and subcontractor to submit to City a Certificate of Insurance verifying such coverage prior to such contractor or subcontractor entering onto the job site. 4. Security. 4.1 Required SecuritV. (a) At the time Subdivider executes this Agreement, Subdivider shall furnish to City the following bonds, letters of credit, instruments of credit (assignment of deposit account) or other security acceptable to City in its sole and absolute discretion and satisfying the requirements of the applicable provisions of this Section 4 below (hereinafter"Security Instruments"): (i) A Security Instrument securing Subdivider's faithful performance of all of the Works of Improvement("Faithful Performance Security Instrument"), in the amount of$4,584,000.00 equal to 100% of the estimated construction cost referenced in Section 1.1. (ii) A Security Instrument guaranteeing the payment to contractors, subcontractors, and other persons furnishing labor, materials, and/or equipment ("Labor and Materials Security Instrument") with respect to the Works of Improvement in an amount equal to $2,292,000.00 equal to 50% of the estimated construction cost referenced in Section 1.1. (iii) A Security Instrument guaranteeing the payment of the cost of setting monuments as required in Section 1.4 in the amount of$53, 225.00 equal to 100% of the cost thereof. This Agreement shall not be effective for any purpose until such Security Instruments are supplied to and approved by City in accordance herewith. (b) Required Security Instrument for Maintenance and Warranty. Prior to the City Council's acceptance of the Works of Improvement and recordation of a Notice of Completion, Subdivider shall deliver a Security Instrument warranting the work accepted for a period of one(1)year following said acceptance ("Maintenance and Warranty Security Instrument"), in the amount of$687,600.00 equal to 15% of the estimated construction cost set forth in Section 1.1 or a suitable amount determined by the City Engineer. II III I I I II I I I I I II I II I I I II earn EJ e es 98 OQR 9 of 31 4.2 Form of Security Instruments. All Security Instruments shall be in the amounts required under Section 4.1 (a) or 4.1(b), as applicable, shall meet the following minimum requirements and otherwise shall be in a form provided by City or otherwise approved by the City Attorney: (a) Bonds. For Security Instruments provided in the form of bonds, any such bond must be issued and executed by an insurance company or bank authorized to transact surety business in the State of California.Any insurance company acting as surety shall have a minimum rating of A-IX, as rated by the current edition of Best's Key Rating Guide published by A.M. Best's Company, Oldwick, New Jersey, 08858. Any bank acting as surety shall have a minimum rating of AA, as rated by Moody's or Standard & Poor's. (b) Letters of Credit. For Security Instruments which are letters of credit, any letter of credit shall be an original separate unconditional, irrevocable, negotiable and transferable commercial letter of credit issued by a financial institution with offices in the State of California acceptable to City. Any such letter of credit shall specifically permit City to draw on same by unilateral certification of the City Engineer of the City that Subdivider is in default under its payment or performance obligations hereunder or in the event Subdivider fails to deliver a replacement letter of credit not less than thirty (30)days prior to the date of expiration of any such letter of credit and shall further be subject to the provisions of Section 4.4. (c) Instrument of Credit. For Security Instruments which are Instruments of Credit, any Instrument of Credit shall be an assignment of deposit account assigning as security to City all of Subdivider's interest in funds on deposit in one or more bank accounts with financial institutions acceptable to City. (d) General Requirements for all Security Instruments. (i) Payments under any Security Instruments shall be required to be made (and, with respect to bonds, litigation shall be required to be instituted and maintained) in the City of Palm Springs, State of California (and the Security Instrument shall so provide). (ii) Each Security Instrument shall have a minimum term of one (1)year after the deadline for Subdivider's completing the Works of Improvement, in accordance with Section 2.1 (other than Instruments of Credit, which shall have no defined term or expiration date). (iii) Each Security Instrument shall provide that changes may be made in the Works of Improvement pursuant to the terms of this Agreement without notice to any issuer or surety and without affecting the obligations under such Security Instrument. 4.3 Subdivider's Liability. While no action of Subdivider shall be required in order for City to realize on its security under any Security Instrument, Subdivider agrees to cooperate with City to facilitate City's realization under any Security Instrument, and to take no action to prevent City from such realization of any Security Instrument. Notwithstanding the giving of any Security Instrument or the subsequent expiration of any Security Instrument or any failure by any surety or financial institution to perform its obligations with respect thereto, Subdivider shall be personally liable for performance under this Agreement and for payment of the cost of the labor and materials for the improvements required to be constructed or installed hereby and shall, within ten (10) days after written demand therefor, deliver to City such substitute security as City shall require satisfying the requirements in this Section 4. IIIIII IIIIIII IIII IIII IIIIII(IIII IIIIII III IIIIII III IIII 04 2tl�2005 `08100R 4.4 Letters of Credit. (a) In the event a letter of credit is given pursuant to Section 4.2(b), City shall be entitled to draw on any such letter of credit if a replacement letter of credit (expiring in not less than one (1) year, unless City agrees to a lesser term in City's sole and absolute discretion) is not delivered not less than thirty(30) days prior to the expiration of the original letter of credit, such substitute letter of credit being in the same amount and having the terms and conditions as the initial letter of credit delivered hereunder, issued by a financial institution acceptable to City as of the date of delivery of the replacement letter of credit. (b) In the event of draw by the City on a letter of credit, the City may elect, in its sole and absolute discretion, to apply any such funds drawn to the obligations secured by such letter of credit or to hold such funds in an account under the control of the City,with no interest accruing thereon for the benefit of the Subdivider. If the City elects to hold the funds in an account pursuant to the foregoing, City may thereafter at any time elect instead to apply such funds as provided in the foregoing. Subdivider agrees and hereby grants City a security interest in such account to the extent required for City to realize on its interests therein and agrees to execute and deliver to City any other documents requested by City in order to evidence the creation and perfection of City's security interest in such account. 4.5 Release of Security Instruments. (a) City shall release the Faithful Performance Security Instrument and Labor and Materials Security Instrument when all of the following have occurred: (i) Subdivider has made written request for release and provided evidence of satisfaction of all other requirements in this Section 4.5; (ii) the Works of Improvement have been accepted; (iii) Subdivider has delivered the Maintenance and Warranty Security Instrument; and (iv) subject to the following sentences after passage of the time within which lien claims are required to be made pursuant to Article 3 (commencing with Section 3114) of Chapter 2 of Title 15 of Part IV of Division 3 of the California Civil Code. If lien claims have been timely filed, City shall hold the Labor and Materials Security Instrument until such claims have been resolved, Subdivider has provided a statutory bond, or otherwise as required by applicable law. (b) City shall release the Maintenance and Warranty Security Instrument upon Subdivider's written request upon the expiration of the warranty period, provided no claims are outstanding at that time regarding defective work. 5. Cost of Construction and Provision of Inspection Service. 5.1 Subdivider Responsible for All Costs of Construction. Subdivider shall be responsible for payment of all costs incurred for construction and installation of the Works of Improvement. In the event Subdivider is entitled to reimbursement from City for any of the Works of Improvement, such reimbursement shall be subject to a separate Reimbursement Agreement to be entered into between Subdivider and City prior to construction of the works. 5.2 Payment to City for Cost of Related Inspection and Engineerinq Services. Subdivider shall compensate City for all of City's costs reasonably incurred in having its authorized representative make the usual and customary inspections of the Works of Improvement. In addition, Subdivider shall compensate City for all design, plan check,evaluating any proposed or agreed-upon changes in the work. The procedures for deposit and payment of such fees shall be as established by the City Council. In no event shall Subdivider be entitled to additional inspections or a final inspection and acceptance of any of the Works of Improvement until all City fees and charges have been fully paid, including without limitation, charges for applicable penalties and additional required inspections. 6. Acceptance of Offers of Dedication. The City Council shall pass as appropriate resolution or resolutions accepting all offers of dedication shown on the Map for the Property, with acceptance to become effective upon completion and acceptance by City of the Works of Improvement. Such resolution(s)shall authorize the City Clerk to execute the Certificate made a part of the Map regarding said acceptance of the offer of dedication. 7. Warranty of Work. Subdivider shall guarantee all Works of Improvement against defective materials and workmanship for a period of one (1) year from the date of final acceptance. If any of the Works of Improvement should fail or prove defective within said one(1)year period due to any reason other than improper maintenance, or if any settlement of fill or backfill occurs, or should any portion of the Works of Improvement fail to fulfill any requirements of the Plans, Subdivider, within fifteen (15)days after written notice of such defects, or within such shorter time as may reasonably be determined by the City in the event of emergency, shall commence to repair or replace the same together with any other work which may be damaged or displaced in so doing. Should Subdivider fail to remedy defective material and/or workmanship or make replacements or repairs within the period of time set forth above, City may make such repairs and replacements and the actual cost of the required labor and materials shall be chargeable to and payable by Subdivider. The warranty provided herein shall not be in lieu of, but shall be in addition to, any warranties or other obligations otherwise imposed by law. 8. Default. 8.1 Remedies Not Exclusive. In any case where this Agreement provides a specific remedy to City for a default by Subdivider hereunder, such remedy shall be in addition to, and not exclusive of, City's right to pursue any other administrative, legal, or equitable remedy to which it may by entitled. 8.2 City Riqht to Perform Work. In addition to whatever other rights or remedies it may have for Subdivider's default hereunder, in the event Subdivider shall fail to timely perform any work required to be performed under this Agreement and such failure shall continue for a period of twenty (20) days after receipt of written notice of default from City, or thereafter Subdivider shall fail to diligently and continuously pursue the cure of any such default to completion, City shall have the right to enter into the Property and perform any of the uncompleted work by force account or contract or both and thereupon recover from Subdivider or any Security Instrument, or both, the full cost and expense thereby incurred by City. 8.3 Attorneys Fees and Costs. In the event that Subdivider fails to perform any obligation under this Agreement, Subdivider agrees to pay all costs and expenses incurred by City in securing performance of such obligations, including costs of suit and reasonable attorney's fees. In the event of any dispute arising out of Subdivider's performance of its obligations under this Agreement or under any of the Security Instruments referenced herein, the prevailing party in such action, in addition to any other relief which may be granted, shall be entitled to recover its reasonable attorney's fees and costs. Such attorney's fees and cost shall include fees and costs on any appeal, and in addition a party entitled to attorney's fees and costs shall be entitled to all other reasonable costs incurred in investigating such action, taking depositions and discovery, retaining expert witnesses, and all other necessary and related costs with respect to the litigation. All such fees and costs shall be deemed to have accrued on commencement of the action and shall be enforceable whether or not the action is prosecuted to judgment. IIIIII IIIIIII IIII IIII IIIIII IIIII IIIIII III IIIIII III IIII 04 28 120£08 GOA 1 9. Indemnity. Subdivider agrees to indemnify, defend, and hold harmless City and City's officers, employees, and agents from and against any and all claims, liabilities, losses, damages, causes of action, and obligations arising out of Subdivider's failure to perform the construction and installation of the Works of Improvement in accordance with the requirements contained or referenced in this Agreement. Said indemnity obligation shall apply to personal injury, death, property damage, economic loss, and any other monetary damage or penalty to which City may be subjected, including without limitation, attorney's fees and costs and the costs of realizing on any Security Instrument provided by Subdivider pursuant to the terms hereof. Such indemnity obligation shall not extend to any loss resulting from City's sole negligence or willful misconduct. 10. General Provisions. 10.1 Successors and Assiqns. This Agreement shall be binding upon all successors and assigns to Subdivider's right, title, and interest in and to the Property and any portion thereof. 10.2 No Third Party Beneficiaries, This Agreement is intended to benefit only the parties hereto and their respective successors and assigns. Neither City nor Subdivider intend to create any third party beneficiary rights in this Agreement in any contractor, subcontractor, member of the general public, or other person or entity. 10.3 Entire Agreement; Waivers and Amendments. This Agreement integrates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties with respect to all or part of the subject matter hereof, except as may be expressly provided herein.All waivers of the provisions of this Agreement must be in writing and signed by an authorized representative of the party to be charged, and all amendments hereto must be in writing and signed by the appropriate representatives of both parties. 11. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant the (1) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii)by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into of this Agreement does not violate any provisions of any other Agreement to which said party is bound. (Signatures on Next Page) IIIIIIIIIIIIIIIIIIIII IIIIIIIIIII IIIIII III IIIIII III IIII 04. 2W2&O5 W GOA IN WITNESS WHEREOF, the parties hereto have executed this Subdivision Improvement Agreement as of the date first above written. ATTEST: CITY OF PALM SPRINGS, CALIFORNIA James Thompson, Ci Clerk David H. Ready, City are"r RECOMMENDED BY: ." David Barakian, City Engineer �12?/ /W e;r Marc. .-_f`✓ i" K SUBDIVIDER: K. HOVNANIAN'S FOUR SEASONS PALM SPRINGS, LLC, a California Limited Liability Company (Check One: _individual, partnership, corporation) APPROVED BY C!Y COUNC9tl. By: lIgnature '.'" JAMES HgNUND,VICE PRESIDENT By: K.NOVNANIANnOlIV7"CI'C�..,..',PQANIEE OF CALIFORNIA,INC. AUTHORIZED' and Title Mailing Address: 2495 Campus Drive Irvine, CA 92612 III II IIIIIII IIII IIII IIIIII(IIII IIIIII III IIIIII III IIII 0 l2005-0341284 2 0 14 of05 1 ALL-PURPOSE ACKNOWLEDGMENT State of I,'d`aArlmV(lt(:"� CAPACITY CLAIMED BY SIGNER County of h)f�vr e_ ❑ INDIVIDUAL(S) U / El CORPORA TE before me,�� -��w"!J.'a� _ 4 pi,�1'�t}fVtl ���--y+l-!ba X'Cetr7�(L , OFFICER(S) Date 6 N me,Title yof Officer ° TITLE(S) personally appeared `—p �(�w"i.(��'Iia 5(�'�6(�G1 ��� ❑ PARTNER(S) NAME(S)OF SIGNtk(S) ❑ ATTORNEY-IN-PACT ❑ TRUSTEE(S) ❑personally known to me-OR- ❑ SUBSCRIBING WITNESS ❑ GUARDIAN/CONSERVATOR W proved to me on the basis of satisfactory evidence to be the persons(j) whose name(4) Wine ❑ OTHER subscribed to the within instrument and acknowledged to me that he/she/they executed the same in iris/her'ldreir authorized capacity(ie&-), and that by his/laerddieir signamre('.5 on the instrument the person(g}'or the entity upon behalf of which the persons(O acted, executed the instrument. 111SI IS REPRESENTING: mess ray hand and 9fticial sealVAL. -- _ 'ERIE L. ,� „" i if �S,,< < GIa�.,ry rtunisa. C_9aicr�ir Signature°of Notary a; ." r crmotgoCounty It ATTENTION NOTARY: Although the information requested below is OPTIONAL, it could prevent fraudulent attachment of this certificate to unauthorized document. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DATE of DOCUMENT DESCRIBED AT RIGHT: Signer(s)Other Than Named Above III I II I I I II III I I I II II II II �earza zr of 0eR 5 31 EXHIBIT "A" TRACT MAP 30058 LEGAL DESCRIPTION Tract Map No. 30058, as recorded in Map Book_, Pages through inclusive, records of Riverside County, California. IIIIIIIIIIIIIIIII IIII IIIIIIIIIII IIIIII III IIIIII III IIII 03. 9%1-0341284 0 £08 rWA Resolution 20935 1 Page 7 EXHIBIT A ' CASE 5.0889-PD-269 PRELIMINARY PLANNED DEVELOPMENT DISTRICT(PD#269) TENTATIVE TRACT MAP 30058 3801 SUNRISE WAY NORTH K HOVNANIAN, FOUR SEASONS REVISED CONDITIONS OF APPROVAL MAY 19,2004 Before final acceptance of the project, all conditions listed below shall be completed to the satisfaction of the City Engineer,the Director of Planning,the Chief of Police,the Fire Chief or their designee, depending on which department recommended the condition. Any agreements, easements or covenants required to be entered into shall be in a form approved by the City Attorney. PLANNING DEPARTMENT: 1. The proposed development of the premises shall conform to all applicable regulations of the Palm Springs Zoning Ordinance, Municipal Cade, or any other City Codes, ordinances and resolutions which supplement the zoning district regulations. la. The owner shall defend, indemnify, and hold harmless the City of Palm Springs, its agents,officers, and employees from any claim,action,or proceeding against the City of Palm Springs or its agents,officers or employees to attach,set aside,void or annul, an approval of the City of Palm Springs, its legislative body, advisory agencies, or administrative officers concerning Case 5.0889-PD 269 and TTM 30058.The City of Palm Springs will promptly notify the applicant of any such claim,action,or proceeding against the City of Palm Springs and the applicant will either undertake defense of the © matlerand pay the City's associated legal costs orwill advance funds to payfordefense �M of the matter by the City Attorney. If the City of Palm Springs fails to promptly notify the n M o applicant of any such claim, action or proceeding or fails to cooperate fully in the ti� defense,the applicant shall not,thereafter,be responsible to defend,indemnify,or hold ti harmless the City of Palm Springs. Notwithstanding the foregoing,the City retains the right to settle or abandon the matter without the applicant's consent but should it do so, the City shall waive further indemnification hereunder, except, the City's decision to settle or abandon a matterfollowing an adversejudgment orfailure to appeal,shall not cause a waiver of the indemnification rights herein. 2. That the property owner(s)and successors and assignees in interest shall maintain and repair the improvements including and without limitation sidewalks, bikeways, parking areas, landscape, irrigation, lighting, signs, walls, and fences between the curb and property line, including sidewalk or bikeway easement areas that extend onto private property, in a first class condition,free from waste and debris,and in accordance with ' all applicable law,rules,ordinances and regulations of all federal,state,and local bodies C and agencies having jurisdiction at the property owner's sole expense. This condition shall be included in the recorded covenant agreementfor the property if required by the r, Resolution 20935€,` Page 8 ' City. 3. If, within two (2)years after the date of approval by the city council of the preliminary development plan,the final development plan, as indicated in Section 94.03.00(I), has not been approved by the Planning Commission, the procedures and actions which have taken place up to that time shall be null and void and the planned development district shall expire. Extensions of time may be allowed for goad cause, The final development plans shall be submitted in accordance with Section 9403.00 of the Zoning Ordinance. Final construction plans shall include site plans, building elevations,floor plans, roof plans,fence and wall plans,entry plans, landscape plans, irrigation plans, exterior lighting plans, sign program, site cross sections, property development standards, street improvement plans and other such documents as required by the Planning Commission. Final construction plans shall be submitted within two years of the Planning Commission approval. 4. The applicant prior to issuance of building permits shall submit a draft declaration of covenants, conditions and restrictions ("CC&R's") to the Director of Planning and Building for approval in a form to be approved by the CityAttomey,to be recorded prior to issuance of occupancy permits. The CC&R's shall be enforceable by the City,shall not be amended without City approval, shall require maintenance of all property in a good condition and in accordance with all ordinances.The applicant shall submit to the City of Palm Springs, a deposit in the amount of$5,000 for the review of the CC&R's by the City Attorney. 5. The project shall be developed in two phases. A. Phase 1 shall include completion of the specific requirements of the subdivision including all street improvements, and all off-site improvements. These improvement shall include improvements of Sunrise Way. B. Phase 2 shall include the residences and on site amenities, including tot lots, pools spas and other passive and active recreation areas.Phasing of amenities shall be concurrent with construction of adjacent residential units. Phase 2 includes site plans, roof plans, floor plans, exterior building elevations, landscape plans(front yards only), irrigation plans exterior lighting plans, etc., for all single family residences. 6. Final landscaping,irrigation,exterior lighting,and fencing plans foreach phase shall be submitted for approval by the Planning Commission(see Condition#3 above)prior to issuance of a building permit(construction permits. Landscape plans shall be approved by the Riverside County Agricultural Commissioner's Office prior to submittal. A substantial windbreak shall be provided in the rear yards along the northern project perimeters, using trees and shrubs. The windbreak shall be installed as residential phases are developed, 7. The project is subjectto the City of Palm Springs WaterEfficient Landscape Ordinance. ' The applicantshall submitan appliGationfor Final Landscape Document Package to the Director of Planning and Building for review and approval prior to the issuance of a building permit. Refer to Chapter 8.60of the Municipal Code for specifiicrequirements. III IVII III 111104,€©190 f' 31 1 � 8. All proposed trees within the public right-of-wayand within 10 feet of the public sidewalk ' and/or curb shall have City approved deep root barriers installed per City of Palm Springs Engineering specifications. 9. All roof mounted mechanical equipment shall be screened from all possible vantage points both existing and future per Section 9303.00 of the Zoning Ordinance. The screening shall be considered as an element of the overall design and must blend with the architectural design of the building(s). The exterior elevations and roof plans of the buildings shall indicate any fixtures or equipment to be located on the roof of the building, the equipment heights, and type of screening. Parapets shall be at least 6" above the equipment for the purpose of screening 10. No exterior down spouts shall be permitted on any facade on the proposed building(s) which are visible from adjacent streets or residential and commercial areas. 11. The design,height,texture and color of building(s),fences and walls shall be submitted for review and approval prior to issuance of building permits. 12. The street address numbering/lettering shall not exceed eight inches in height. 13. An exterior lighting plan in accordance with Zoning Ordinance Section 93.21.00, Outdoor Lighting Standards,shall be submitted for review and approval by the Director of Planning & Building prior to the issuance of building permits. Manufacturer's cut ' sheets of all exterior lighting shall be submitted to and approved by the Director of Planning and Building priorto issuance of a building permit If lights are proposed to be mounted on buildings, down-lights shall be utilized. 14. The detention basins shall be fully landscaped and designed to provide passive recreation opportunities,to the extent possible. 15. Plans meeting City standards for approval on the proposed trash and recyclable materials enclosure shall be submitted prior to issuance of a building permit. Forsingle family residences,cans must be located with 50'of the street. For the common areas, trash enclosures shall be required in each recreation area. 16. Details of pool fencing(materials and color)and equipment area shall be submitted with final landscape plan. 17. Handicapped accessibility shall be indicated on the site plan to include the location of handicapped parking spaces,the main entrance to the proposed pool structure and the path of travel to the main entrance. Consideration shall be given to potential difficulties with the handicapped accessibility to the building due to the future grading plans forthe property. 18. Common areas pool hours shall be closed between the hours of 10 pm to 7 am. 19. The maximum building height shall be 24.A maximum of 25%of the units(44)may be , two-story.The windows of the second story units shall be oriented away from the living space of adjoining areas.Two-story units shall be located a minimum of 200'from the 2005-0341284 la/7 01 7 II III I I II I I I I III III I II 04'2910o 2 0 .100R 20 Resolution 20935 Page 10 project perimeter, and are prohibited on the following lots:#1-9, 11-23, 30-60, 69-70, 81-82,96, 113-114, 126-146, and 154-168, 170-175. This condition shall be added as a note on the Final Map. 20. The entry plan for the project entry shall be refined to provide adequate improvements and provide additional wall, gate, lighting and landscape details as part of the Final Planned Development plans. 21, Front yards shall be fully landscaped,with a minimum of three trees, priorto issuance of a certificate of occupancy. The developer shall be responsible for completed front yard landscape, irrigation and exterior lighting plans. In addition, rear and side yards shall be landscaped within 90 days of occupancy per the CC&R's. The HOA will be responsible for enforcement of this requirement. 22. The project entry shall incorporate decorative street, landscape and safety lighting. Decorate lighting at entries shall be pedestrian scale. 23. Project setbacks shall be as follows: Front yard setback- 5'for side entry garages and residence; 20'for front loaded garages; Side yard setback- 5; and Rear yard setback- 15'. 24. The minimum house size shall be 1,650 square feet,with a mix of housing sizes up to 2,700 square feet.Larger residences may be permitted as long as the building footprint is consistent with setback and lot coverage requirements.The maximum lot coverage shall be 45% of the net lot area. 25. All proposed single family residences shall be submitted for Planning Commission approval, subject to Condition#3.A fee to$225 per typical model shall be paid upon submission of final development plans. 26. The Developer shall construct a minimum sixfoot tall, decorative block wall around the entire project as part of Phase 1.Where necessary,the use of a retaining wall may be required. Final wall plans shall be required as part of the Final Development Plans.All walls shall be decorative. Perimeter walls along Sunrise Way may be constructed on a berm a maximum of one foot(1')high and shall be six feet(6')in height. Walls along the north perimeter of the site with a maximum height of seven feet (T-6") shall be permitted. 27. Front, rear and side yards shall be landscaped prior to issuance of the certificate of occupancy. 28. Priorto issuance of building permit,the applicant shall pay developer fees to the Palm ' Springs Unified School District pursuant to the requirements established in SB50.The amount of fees paid will be determined based on the established state formula for determining construction costs. 1 ' �� 11111111111 II111111111111111111111111111111111 04�s�cz eof 21 eR ■ 29. In accordance with Public Resource Code 6097. 94, if human remains are found, the Riverside County Coroner must be notified within 24 hours of the discovery. If the Coroner determines that the remains are not recent, the coroner will notify the Native American Heritage Commission in Sacrament to determine the most likely descendent for the area. The designated Native American representative then determines in consultation with the property owner the disposition of the human remains. 30. A Riverside County-certified archeologist shall be retained to attend pre-grade meetings. The archeologist will carefully inspect the area to assess the potential for significant prehistoric or historic remains. If a site is uncovered, than a subsurface investigation may be needed if the site is determined unique/important for its prehistoric information. 31. During construction activities,the archeologist shall have the opportunity to temporarily divert of direct earth moving to allow time to evaluate any exposed prehistoric or historic material.Any recovered prehistoric or historic artifacts shall b offered,on a first right-of- refusal basis,to a repository with a retrievable collection system and an educational and research interest in the materials such as the Western Center for Archeology and Paleontology(UCR) ' MITIGATION MEASURES 32. Out and fill quantities will be balanced onsite. 33, Any construction equipment using direct internal combustion engines shall use a diesel fuel with a maximum of 0.05 percent sulfur and a four-degree retard. 34. Construction operations affecting offsite roadways shall be scheduled by implementing traffic hours and shall minimize obstruction of through-traffic lanes. 35. The use of energy efficient street lighting(high pressure sodium vapor lights)shall be considered onsite to reduce emissions at the power plant serving the site. 36, Remove sand and repair any damages to surrounding properties caused by sand and Wind erosion. 37. All construction vehicles or equipment,fixed or mobile, operated within 1,000 feet of a dwelling shall be equipped with properly operating and maintained mufflers. This requirement shall be shall be included on the contractor specifications and shall be verified by the Director of Planning and Zoning. 38. Stockpiling and/or vehicle staging areas shall be located onsite and as far as practical , from sensitive noise receptors, i.e., residential areas. This requirement shall be shall be included on the contractor specifications and shall be verified bythe Building Official. IAN9 IIIIII IIIIIII IIII IIII IIIIII IIIII IIIIII III II IIIIIII IIII 200 220o1284 94 ' 31 BUILDING 39. Prior to any construction on-site, all appropriate permits must be secured. All Construction shall comply with Title 24 of the California Administrative Code. 40. Outdoor construction activities shall not take place between the house of 7:00 pm and 7:00 am on weekdays, between the house of 5:00 pm and 8:00 am on Saturdays or at anytime on Sundays or on a Federal holiday.Time restrictions shall be included in the contractor specifications and shall be verified by the Director of Building and Safety. 41. Proposed structural designs shall complywith provisions of the current Uniform Building Code and seismic design criteria of the Structural Engineers Association of California, Compliancewith these criteria will be verified bythe Directorof Building and Safety prior to the issuance of building permits. FIRE 42. Comments will be provided during plan check process. Fire sprinklers shall be required in all structures.The secondary emergency access shall be accessible by Knox box. ENGINEERING The Engineering Division recommends that if this application is approved, such approval is subject to the following conditions being completed in compliance with City standards and ordinances: Before final acceptance of the project, all conditions listed below shall be completed to the satisfaction of the City Engineer. 43. A Lot Line Adjustment between APN 669-500-001 and 669-500-025 shall be recorded prior to City Council approval of a final map. 44. A Lot Line Adjustment between APN 669-500-025,026 and 027 shall be recorded prior to City Council approval of a final map. 45. A Lot Line Adjustment between APN 669-500-024 and 025 shall be recorded prior to City Council approval of a final map. STREETS 46. Dedicate an easement for sewer and public utility purposes with right of ingress and egress over Streets "A" through "M" inclusive, and the northerly extension of Blue Mountain Road identified as "Secondary Fire Access". The easements shall be the width of the travel wayfrom back of curb to back of curb.The City shall be provided with a key and/or card for access to the development for sewer maintenance purposes. 47. Dedicate an easement, 25 feet wide,for sewer purposes within Lot"E"adjacent to the easterly line of Lot 32. 1AA 0 IIIIII IIIIIII IIII IIII IIIIII IIIII IIIIII III IIIIIII II IN04 G 8 23 Ro£©81F R Page 13 48. Submit street improvement plans prepared by a Registered Civil Engineer to the ' Engineering Division. The plan(s) shall be approved by the City Engineer prior to issuance of any grading or building permits. Minimum submittal shall include the following: A. Copy of signed Conditions of Approval from Planning Department. B. All agreements and improvement plans approved by City Engineer, IF applicable. C. Proof of processing dedications of right-of-way, easements, encroachment agreements/licenses,covenants,reimbursement agreements,etc.required by these conditions. SUNRISE WAY NORTH 49. The`M"Street main entrance to the project shall match centerlines with the proposed entrance to Tract 30054 on the east side of Sunrise Way North. 50. Dedicate a 20 feetwide sidewalk/bikepath easement along the entire project frontage. 51. Any improvements within the street right-of-way require a City of Palm Springs ' Encroachment Permit Work shall be allowed according to Resolution 17950 - Restricting Street Work on Major and Secondary Thoroughfares. 52. Construct an 8 inch curb and gutter, 43 feet EAST of centerline along the entire frontage,with a 35 feet radius curb return and spandrel at each side of the "M"Street main entry to the subject property per City of Palm Springs Standard Drawing No.200 and 206. 53. Constructan8feetwide cross gutteratthe intersection ofSUNRISEWAYNORTHand MAIN ENTRY with a flow line parallel with and 43 feet EAST of the centerline of SUNRISE WAY NORTH in accordance with City of Palm Springs Standard Drawing Nos. 206 and 207. 54. Construct a 10 feet wide meandering combination sidewalk and bicycle path along the entire SUNRISE WAY NORTH frontage.The construction shall bewith colored Portland Cement concrete.The admixture shall be Palm Springs Tan,Desert Sand,or approved equal color by the Engineering Division. The concrete shall receive a broom finish. 55. Construct a curb ramp meeting current California State Accessibility standards at each side of the "M" Street main entry,of the subject property, per City of Palm Springs Standard Drawing Nos. 212 and 212A. 56. A temporary cul-de-sac shall be constructed approximately 300 feet north of the"M" Street main entry centerline in accordance with City of Palm Springs Standard Dwg.No. 101. IIIIII IIIIIII IIII IIII IIIIII IIIII IIIIII III IIIIIIIII IIII 04 29/2905924 of H 00 31 Resolution 20935 Page 14 57. Construct a 14 feet wide landscaped, raised median island as specified by the City Engineerfrom the south properly line at Sunrise Way North to north terminus of Sunrise Way North. Provide left and right turn pockets, as required, at all intersections. The length of the turn pockets shall be designed in accordance with Caltrans Highway Design Manual Sec.405 and be approved bythe City Engineer.(Developershall annex the median islands if a city-wide district is formed or available for maintenance of the future landscaped median islands and pay all associated fees prior to issuance of the grading or building permit). 58. Construct a minimum pavement section of 5 inch asphalt concrete pavement over 4 inch aggregate base with a minimum subgrade of 24 inches at 95% relative compaction, OR equal, from edge of proposed gutter to proposed median curb or centerline along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 110 and 345.The pavement section shall be designed, using"IT'values, by a licensed Soils Engineer and submitted to the City Engineer for approval. 50 FEET WIDE UNNAMED PUBLIC RIGHT-OF-WAY 59. Developershall applyforthe vacation of the 50 feet wide right-of-wayfrorn the west side of Sunrise Way North to the west property line of the Desert Water Agency well site (APN 669-500-024), adjacent to the north property line of the subject property. Developershall be responsible forfinal resolution of all utilities,demolition of all existing improvements, reconstruction of affected intersecting streets and coordination of improvements with adjacent property owners, if applicable,for the street vacation. All agreements and improvement plans relative to the above mentioned items shall be approved by the City Engineer prior to the submittal of the street improvement plans. Developershall provide Desert WaterAgencywith an easement for ingress and egress from the well site (APN 669-500-024)to Sunrise Way, through "M" Street, including dedication of easements to Desert Water Agency for relocation of existing domestic water utilities relocated within the project. ON-SITE STREETS (Private) 60. The gated entry at the east end of"M" Street shall be constructed as shown on the detail approved by the Fire Department on Aug. 13, 2001, on file in the Public Works and Engineering Department. 61. All median islands within"M"Street shall be landscaped as required and approved by the Planning Department. 62, Construct a 6 inch curb and gutter, 20 feet on both sides of centerline along the"M" Street frontage from the gated entry to the "J" Street intersection, with 25 feet radius curb returns and spandrels at intersecting on-site streets, per City of Palm Springs Standard Drawing No. 200 and 206. ' 63. Construct a 6 inch curb and gutter, 18 feet on both sides of centerline along all other street frontages,with 25 feet radius curb returns and spandrels at intersecting on-site streets, per City of Palm Springs Standard Drawing No. 200 and 206. o'wFalaw II II II IIII II II I II I II II II II II 54 ?05 05 53 a©R 25 of 31 64. Construct 6 feet wide cross gutters at all intersections(where required)with a flow line parallel with and 18 feet from the centerline of the intersecting street,in accordance with City of Palm Springs Standard Drawing Nos. 200 and 206. 65. Construct a minimum 5 feet wide sidewalk behind the curb along both sides of on-site street frontages in accordance with City of Palm Springs Standard Drawing No. 210. 66. Construct curb ramps meeting current California State Accessibility standards at all intersections, per City of Palm Springs Standard Drawing No. 212 and 212A. 67. Construct mid-block Type B curb ramps per City of Palm Springs Standard Drawing No.213 and 212A,or locate driveway approaches across from curb ramps at Streets "C", "D", "H", "r, and "L" to provide access to sidewalks on opposite sides of the streets. 68. Construct a minimum pavement section of 3 inch asphalt concrete pavement over 6 inch aggregate base with a minimum subgrade of 24 inches at 95% relative compaction, OR equal, from edge of proposed gutter to edge of proposed gutter (excluding the median island)along the"M"Street frontage from Sunrise Way North to the"J" Street intersection. The pavement section shall be designed using "R" values provided by a licensed Soils Engineer and submitted to the City Engineer for approval. 69. Construct a minimum pavement section of 2-1/2 inch asphalt concrete pavement over 4 inch aggregate base with a minimum subgrade of 24 inches at 95% relative compaction,OR equal,from edge of proposed gutter to edge of proposed gutter along all on-site street frontages in accordance with City of Palm Springs Standard Drawing No. 110 and 300. The pavement section shall be designed using"R"values provided by a licensed Soils Engineer and submitted to the City Engineer for approval. 70. The following traffic calming devices shall be incorporated into the on-site streets: Narrowed pavement `chokers' shall be provided on "B" Street between "A" and "C" Streets and between"D"and "I"Streets, as approved by the City Engineer. Chokers shall be designed with a transition using 25 feet reverse curves and a 50 to 100 feet long,24 feet wide(12 feet each side of centerline)narrowed travel way.The narrowed travel way shall be constructed with a colored or decorative Portland cement concrete section 6 inches thick as approved by the City Engineer. A traffic circle shall be provided at the intersection of"A" and "E" Streets and at the intersection of"I", "J", and "M" Streets. The traffic circle shall be designed using a 27 feet radius island and a 20 feet wide travel way around the traffic circle.The travel way throughout the traffic circle shall be constructed with a colored or decorative Portland cement concrete section 6 inches thick as approved by the City Engineer. The traffic circle shall be fully landscaped as required and approved by the Planning Department. ' 71. All on-site cul-de-sacs shall be designed with a minimum curb radius of 43 feet. j '�3 ���� IIIIIII III1111111111111111111111111111111111111111111ea,©©2 e£081 • i ' Resolution 20935 Page 16 72. Street knuckles shall be designed in accordance with City of Palm Springs Standard Dwg. No.104. 73. All driveway approaches shall be constructed in accordance with City of Palm Springs Standard Drawing No.201. SANITARY SEWER 74. Connect all sanitary facilities to the City sewer system. Lateral shall not be connected at manhole. 75. Developer shall construct 8 inch sewer mains within all on-site streets and connect to the existing 10"sewer main at the north end of Blue Mountain Road and to the existing 8" sewer main at the northeast corner of the Santiago Mobile Home Park. The Developer shall extend the existing 10"sewer main within Sunrise Way to the northerly property line of the subject property and connect to the proposed 8"sewer main at the "M"Street main entry. 76. All sewer mains constructed by the developer and to become part of the City sewer system shall be televised by the developer prior to acceptance of said lines. 77. Submit sewer improvement plans prepared by a Registered Civil Engineer to the Engineering Division. The plan(s) shall be approved by the City Engineer prior to issuance of any grading or building permits. Minimum submittal shall include the following: A. Copy of signed Conditions of Approval from Planning Department, B. Proof of processing dedications of right-of-way, easements, encroachment agreements/licenses,covenants,reimbursement agreements,etc.required by these conditions. GRADING 78. A copy of a Title Report prepared/updated within the past 3 months and copies of record documents shall be submitted to the City Engineerwith the first submittal of the Grading Plan. 79. Prior to issuance of a grading permit, the project shall pay mitigation fees for the Coachella Valley Fringe Toed Lizard in the amount of$600 per acre.The payment shall be made and verified by the Director of Planning and Zoning prior to issuance of a grading permit. 80. Submit a Grading Plan prepared by a Registered Civil Engineer to the Engineering Department for plan check. Grading plan shall be submitted to the Planning Department for approval to submit for plan-check priorto submittal to the Engineering ,Jy II II II III II I I I I I II II I II earzs0 z©e©s eeA 27 0£ 01 Resolution 20935 Page 17 Department.A PM 10(dust control)Plan shall be submitted to and approved by the ' Building Department prior to approval of the grading plan. The Grading Plan shall be approved by the City Engineer prior to issuance of any grading or building permits. Minimum submittal includes the following: A. Planning Department approval to submit for plan-check. B. Copy of signed Conditions of Approval from Planning Department. C. Copy of Site Plan stamped approved and signed by the Planning Department. D. Copy of Title Report prepared/updated within past 3 months. E. Copy of Soils Report. F. Copy of Hydrology Study/Report. 81. Drainage swales shall be provided adjacent to all curbs and sidewalks-3'wide and 6" deep-to keep nuisance water from entering the public streets, roadways, or gutters. 82. Developer shall obtain a General Construction Activity Storm Water Permit from the State Water Resources Control Board(Phone No.(916}657-0687)and provide a copy of same,when executed,to the City Engineer. A copy of the permit shall be provided to the Engineering Department prior to approval of the grading plan. 83, In accordance with City of Palm Springs Municipal Code, Section 8.50.00, the developer shall post with the City a cash bond of two thousand dollars($2,000.00)per acre for mitigation measures of erosion/blowsand relating to his property and development. 84. A soils report prepared by a licensed Soils Engineer shall be required for and incorporated as an integral part of the grading plan for the proposed site.A copy of the soils report shall be submitted to the Building Department and to the Engineering Division along with plans,calculations and other information subject to approval by the City Engineer prior to the issuance of the grading permit. 85. Contact the Building Department to get information regarding the preparation of the PM10 (dust control) Plan requirements. 86. in cooperation with the Riverside County Agricultural Commissioner and the California Department of Food and Agriculture Red Imported Fire Ant Project, applicants for grading permits involving an engineered grading plan and the export of native soil from the site will be required to present a clearance document from a Department of Food and Agriculture representative in the form of an approved"Notification of Intent To Move Soil From or Within Quarantined Areas of Orange, Riverside, and Los Angeles Counties"(RIFA Form CA-1) or a verbal release from that office prior to the issuance , of the City grading permit.The California Department of Food and Agriculture office is located at 73-710 Fred Waring Drive, Palm Desert. (Phone; 760-776-8208) 2005-034128����� II III I I III I I I II III II A I II Wzs 28 o e31QQA DRAINAGE 87. The project is subject to flood control and drainage implementation fees. The acreage drainage fee at the present time is$6,511.00 per acre per Resolution No. 15189.Fees shall be paid prior to issuance of building permits. 88. The developer shall construct storm drain improvements, including but not limited to catch basins, storm drain lines, outlet structures, and detention basins for drainage of off-site tributary areas and on-site streets, as described in the Hydrology Analysis for Tentative Tract Map 30058 prepared by Hunsaker & Associates. A final hydrology/hydraulic study shall be prepared, as necessary, to determine appropriate storm drain pipe sizing and other required storm drain improvements identified in the Hydrology Analysis. 89. Submit Storm Drain Improvement Plans prepared by a Registered Civil Engineer to the Engineering Department for plan check. The Storm Drain Plans shall be approved by the City Engineer prior to issuance of any grading or building permits. Minimum submittal includes the following: A. Copy of signed Conditions of Approval from Planning Department, B. Copy of Site Plan stamped approved and signed by the Planning Department. C. Copy of Title Report prepared/updated within past 3 months. D. Copy of Hydrology Study/Report. GENERAL 90. Any utility cuts in the existing off-site pavement made by this development shall receive trench replacement pavementto match existing pavement plus one additional inch.See City of Palm Springs Standard Drawing No. 115. Pavement shall be restored to a smooth rideable surface. 91. All existing and proposed utility lines that are less than 35kV on/or adjacent to this project shall be installed underground.The location and size of the existing overhead facilities shall be provided to the Engineering Division along with written confirmation from the involved utility company(s) that the required deposit to underground the facility(s)has been paid, prior to issuance of a grading permit. All undergrounding of utilities shall be completed prior to issuance of a Certificate of Occupancy. ' 92. All existing utilities shall be shown on the grading/street plans. The existing and proposed service laterals shall be shown from the main line to the property line. The IIJ�-/+-S(p 11111111111III III11111IIIII II II II a4 2a 200 of 31 �R 5 1 Resolution 20935 Page 19 approved original grading/street plans shall be as-built and returned to the City of Palm ' Springs Engineering Division prior to issuance of the certificate of occupancy. 93. The developer is advised to contact all utility purveyors fordetailed requirements forthis project at the earliest possible date. 94. Nothing shall be constructed or planted in the comer cut-off area of any driveway or intersection that does orwill exceed the height required to maintain an appropriate sight distance per Chapter 93.02 of the City of Palm Springs Zoning Code. 95. All trees within the public right-of-way and within 10 feet of the public sidewalk and/or curb shall have City approved deep root barriers installed per City of Palm Springs Engineering specifications. MAP 96. The Title Report prepared for subdivision guarantee for the subject property and the traverse closures forthe existing parcel and all lots created therefrom shall be submitted with the Final Map to the Engineering Department. 97. The Final Map shall be prepared by a licensed Land Surveyor or qualified Civil Engineer and submitted to the Engineering Departmentfor review.Submittal shall be made prior to approval of any grading or improvement plans. The Final Map shall be approved by the City Council prior to issuance of building permits. TRAFFIC 98. The developer shall provide a minimum of 48 inches of sidewalk clearance around all street furniture for handicap accessibility. The developer shall provide same through dedication of additional right-of-wayand widening of the sidewalkorshall be responsible for the relocation of all existing traffic signal/safety light poles, conduit, pull boxes and all appurtenances located on the SUNRISE WAY NORTH and ON-SITE STREET frontages of the subject property. 99. Install a stop sign for egressing vehicles at Sunrise Way North and "M"Street. Install a stop sign for vehicles entering "B"Street at"C" and "D"Streets; for vehicles entering "G" Street at "H"Street; and for vehicles entering "M" Street at 'K" and "L" Streets. 100, Design and install a traffic signal for the Sunrise Way North at San Rafael Road intersection. East-west approaches shall be split phased.A traffic signal plan shall be submitted and approved by the City Engineer. The signal shall be installed and functional prior to release of the 5Y'certificate of occupancy for this project. Developer may enter into a reimbursement agreement with owners of Tract Map 30054 proposed on the east side of Sunrise Way North for reimbursement of 60% of the cost of the traffic signal design and construction.The reimbursement ratio is based on the August 2001 Traffic Study prepared by Wildan. 11111111111111IN 11111 IN 04 29 3 £03100R Page 20 101. The developer shall replace all damaged or destroyed traffic control devices and provide any new traffic control devices required by the City Engineer on the SUNRISE WAY NORTH frontage prior to issuance of a Certificate of Occupancy. 102. Street name signs shall be required at each intersection in accordance with Cityof Palm Springs Standard Drawing Nos. 620 through 625. 103, The developer shall install a 9,500 lumen high pressure sodium vapor safety street light with glare shield on a marbelite pole on the SOUTHWEST cornerofthe"M"Street Main Entry and SUNRISE WAY NORTH with the mast arm over SUNRISE WAY NORTH. The pole and luminaire shall be furnished by the developer. 104. Construction signing, lighting and barricading shall be provided for on all projects as required by City Standards or as directed by the City Engineer. As a minimum, all construction signing, lighting and barricading shall be in accordance with State of California, Department of Transportation, "MANUAL OF TRAFFIC CONTROLS FOR CONSTRUCTION AND MAINTENANCE WORK ZONES"dated 1996,or subsequent additions in force at the time of construction. 105. This property is subject to the Transportation Uniform Mitigation Fee based on the RESIDENTIAL SINGLE FAMILY DETACHED ITE Code B land use. oft II III I I II I I I I III II I II II f 04 29i31 o 09�0FdR 6 £ 31 Executed in Triplicate Bond No. 4402033 Premium: $429.00 CITY OF PALM SPRINGS BOND FOR FAITHFUL PERFORMANCE, LABOR, AND MATERIALS FOR SETTING OF MONUMENTS WHEREAS, the City Council of the City of Palm Springs, State of California, and K. Hovnanian's Four Seasons Palm Springs, LLC, a California Limited Liability Company(hereinafter designated as "Principal") have entered into an agraement whereby Principal agrees to set certain survey monuments, which said agreement, dated ��,'Jry L ,'N1 2005, and identified as Tract Map No. 30058, is hereby referred to and made a part hereof; and WHEREAS, said Principal is required under the terms of said Agreement to furnish a bond for the faithful performance of said Agreement and the payment of the engineer or surveyor for the setting of said monuments, NOW THEREFORE, we, the Principal, and Quanta indemnity company as Surety, are held and firmly bound unto the City of Palm Springs (hereinafter called "City"), and all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of the aforesaid Agreement with respect to the setting of monuments, in the penal sum of -Three Thousand Six Hundred Twenty-Five and Q0/10Q dollars ($53,625.00), lawful money of the United States, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, and for the completion of said setting of monuments, that said surety will pay the same in an amount not exceeding the amount herelnabove set forth, 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. 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 15(commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. The condition of this obligation is such that if the above bonded 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 the said Agreement respecting the setting of monuments 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 of Palm Springs, its officers, agents and employees, as therein stipulated, and shall have provided to the City evidence that the engineer or surveyor,and all said contractors,subcontractors,laborers, materialmen, and other persons employed in the performance of the aforesaid Agreement with respect to the setting of monuments, have been paid for the setting of monuments, then this obligation becomes null and void; otherwise it shall be and remain In full force and effect. As a 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. Monumentation Bond Page 2 The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way 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 the Agreement or to the work or to the specifications. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on January it , 2005. PRINCIPAL K. Hovnanian's Four Seasons Palm Springs, LLC, a California Limited Liability Company r- By: G Signature JAMES HIGHLAND,VICE PRESIDENT By: K.HOVNANIAN COMPANIES OF CALIFORNIA,INC. AIJTHORIZEDIIi$ a and Title SURETY By: Quanta Indemnity Company By: (Surety Name) Attorney in-Fact Q� Victoria M. Campbell (All Signatures Shall Be Notarized) STATE OF California SS. COUNTY OF Orange I On JAN 1 1 2005 before me, Janina Monroe, Notary Public PERSONALLY APPEARED Victoria M Campbell personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowl- edged to me that he/she/they executed the same in his/ :v. 6.Y�:�1�kGlS'iJ�..19aWa��'�.:JLTr her/their authorized capacity(ies), and that by his/her/ .lAMMANK P-M -E their signature(s) on the instrument the person(s), or the ' (omeniasibn "i3[24, ; ' entity upon behalf of which the person(s) acted, executed z Natcory PuE'rlic-G.alliayerin a the instrument. ; i7j`7 C:no°ar'If}a;;:e� y lrlt f P,rlCwi-ngi.L;m'JlmsJun25.2CR8 , WITNESS my hand and official seal. $ignatu e '� Y 6��- �) d Vt�� This area for Official rVotnrin!Seat OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying an the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT nn.E(s) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ATTORNEY-IN-FACT NUMBER OF PAGES ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME aF PERSON(S)CA EN➢T!(IES) SIGNER(S) OTHER THAN NAMED ABOVE 10-081 F.ev.6/94 ALL-PURPOSE ACKNOWLEDGEMENT CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT rt of State of California it ss. t� County of m Once/(iaiAdZ ,I xd➢^-� before me, �o(lln �_ �rFv7dh lwI r Unit 6 Nifmeand Ile IOlhcer le.9*"Jane Doe,Nollry Public') personally appeared � �Ii1i70i�c � {l S��t I C.r�� d �I Nbar ol9n]ndrct> ❑personally known to me Il± ,GNt proved to me on the basis of satisfactory ,n evidence I )I It. to be the person(y� whose name( is/are-, ail ,l'� subscribed to the within instrument and 't) F9f LEIRlEL_ 4­j � acknowledged to me that he/sheilthey executed the same in his/her/their authorized ' II 3 pl•""'•.'�"^i_ "==1 ��u�34e=U,o6s�j, r� ;�'i capacity(�� and that by his/her/their m � 't Ont�e�'oe signature(6) on the instrument the erson or :fl A �' h f p O, P l�c,__.n.� neP ren�s�.� the entity upon behalf of which the person acted, executed the instrument. I it rd [(NSy�hand an51 of cci Deal. ..r .✓P L_.�J. J'I Qnalure 0 Natery Public IIC In �it OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent r'l Vt fraudulent removal and reattachment of this form to another document. �I Description of Attached Document 'l Title or Type of Document: ''I r Document Date: ?I Ili,{ Number of Pages: cil Signers) Other Than Named Above: if Y Capacity(ies) Claimed by Signer Signer's Name: a if Of n❑ Individual Top ohumbhoro hS., ❑ Corporate Officer—Title(s): „I ❑ Partner — ❑ Limited ❑General , ) ❑ Attorney-in-Fact m ❑ Trustee N ❑ Guardian or Conservator io-;l ❑ Other: IS I fp id Signer Is Representing: 0199E National Nolary Association-9350 Be Bolo Ave,P 0 Box 2402 Chalsi CA 91313 2402-www nauonalnolary are Prod No 5907 J Reorder Call Tici t1 800 876 6827 QUANTA INDEMNITY COMPANY [formerly National Farmers Union Standard Insurance Company] New York City,New York 10020 POWER OF ATTORNEY KNOW ALL PERSONS BY TI3ESE PRESENTS: that Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company], a Colorado corporation, (hereinafter the "Company"), does hereby constitute and appoint: Paul Boucher, Keith W.'Newell, Maria A. Quiroz,Janina Monroe,Victoria M. Campbell, Michael Vanasopha, and Michael Chalekson of Los Angeles, California to be its true and lawful Attorney(s)-in-Fact, with full power and authority hereby conferred to sign, seal, and execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar nature issued in the course of its business up to a penal sum not to exceed FIFTY MILLION AND 00/100 DOLLARS ($50,000.000.00) each, and to bind the Company thereby as fully and to the same extent as if the same were signed by the duly authorized officers of the Company. This appointment is made under and executed pursuant to and by authority of the following By-law, which By-law is now in Full force and effect: ARTICLE XVIII- EXECUTION OF POLICIES, BONDS,ETC. Section 2. All bonds, undertakings, contracts, and other instruments, other than as above for and on behalf of the Company which it is authorized by law or its charter to execute, may and shall be executed in the name and on behalf of the Company either by the Chairman or the Deputy Chairman, if any, or the President or a Vice President,jointly with the Secretary or an Assistant Secretary, under their respective designations, except that any one or more officers or attorneys-in-fact designated in any'reso'lution of the Board of Directors or the Executive Committee, or in any power of attorney executed as provided for in Section 3 below, may execute any such bond, undertaking or other obligation as provided in such resolution or power of attorney. Section 3. All powers of attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the Company, either by the Chairman or the Deputy Chairman or the President or a Vice President or an Assistant Vice President, jointly with the Secretary or an Assistant Secretary, under their respective designations. The signature of such officers may be engraved, printed or lithographed. The signature of each of the following officers: Chairman, Deputy Chairman, President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing Assistant Secretaries or attorneys- in-fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Company and the corporate seal of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] has been affixed thereto in New York City, New York this 26" day of March, 2004. Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] By Walda Decreus, Assistant Secretary N1N1 F 2003 d: 0)'��1•.O •,OGORP9:: T STATE OF NEW YORK) ss COUNTY OF NEW YORK) On this 26`h day of March,2004, before me, a Notary Public, personally came WALDA DECREUS, to me known, and acknowledged that she is an Assistant Secretary of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company]; that she knows the seal of said corporation; and that she executed the above Power of Attorney and affixed the corporate seal of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] thereto with the authority and at the direction of said corporation. I i � r Carol E. Cincola Notary Public-State of New York Notary Public No.01C14759623 Qualified in Westchester County My Commission Expires June.30,2006 CERTIFICATE 1, the undersigned, Secretary of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company], do hereby certify that the foregoing Powenof Attorney is still in full force and effect, and further certify that Article XVIII, Sections 2 and 3 of the By-laws of the Company are now in force. IN TESTIMONY WHEREOF I have subscribed my name and affixed the seal of said Company. Dated this day of By r- Martha G. Bannerman,Secretary d: 2003 IMPORTANT DISCLOSURE NOTICE REGARDING TERRORISM RISK INSURANCE ACT OF 2002 Under the provisions of the Terrorism Risk Insurance Act of 2002 ('The Act'), we are providing this disclosure notice for bonds for which a subsidiary of Quanta U.S. Holdings, Inc. is the surety. You are hereby notified that any losses caused by a certified act of terrorism as defined by The Act may be partially reimbursed by the Federal Government under a formula established by The Act. The term "certified act of terrorism" means any act certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States Mission; and to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or influence the policy or affect the conduct of the Federal Government by coercion. The formula established by The Act requires the Federal Government to pay 90% of losses arising from certified acts of terrorism that exceed the statutorily established deductible to be paid by the surety. Acts of terrorism are not excluded from any surety bonds issued on your behalf and your premium charge for terrorism coverage is $0.00. This is a notice regarding your terrorism coverage which should be used for informational purposes only. Please refer to the bond form for the terms and conditions regarding your terrorism coverage. Form Number SUR 10001 (Ed. 4/04) Executed in Triplicate Bond No. 4402034 Premium: $36,672.00 CITY OF PALM SPRINGS FAITHFUL PERFORMANCE BOND WHEREAS, the City Council of the City of Palm Springs, State of California, and K. Hovnanian's Four Seasons Palm Springs, LLC, a California Limited Liability Company (herein designated as "Principal") have entered into an agreement whereby Principal agrees, to install and complete certain designated public improvements, which said agreement, dated G'srrm 1 2005, and identified as Tract Map No, 30056, is hereby referred to and made a part hereof; and WHEREAS, Principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement, NOW, THEREFORE, we, the Principal and Quanta Indemnity company as Surety, are held firmly bound unto the City of Palm Springs, (hereinafter called "City"), in the penal sum of Four Million Five Hundred Eight-Four Thousand and 001100 dollars ($4.584.000.00) 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 the 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 of Palm Springs, 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 a 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 enyjudgment rendered. The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall In anywise 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 the agreement or to the work or to the specifications. Performance Bond Page 2 IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on January 11 2005. PRINCIPAL K. Hovnanian's Four Seasons Palm Spring LLC, a California Limited Liability Company By: J JAMES HIGH4 IS Eft%IDENT Gf K.HOVNANIAN COMPANIES OF CALIFORNIA,INC. AUTHORIZED AGENT By, Name and Title SURETY By: Ouanta Indemnity Company By: (Surety Name) Attorney-in-pact Victoria M. Campbell (All Signatures Shall Be Notarized) STATE OF California 55. COUNTY OF Orange On JAN 1 1 2005 before me, Janina Monroe, Notary Public J � PERSONALLY APPEARED Victoria M Campbell personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowl- edged to me that he/she/they executed the same in his/ her/their authorized capacity(ies), and that by his/her/ their signature(s) on the instrument the person(s), or the r �"-_*' `m ,1CiNIR3A 117©r�d;C9E y t, entity upon behalf of which the person(s) acted, executed Commission 1362405 n the instrument. I�"� RlatItY Public-GAPe)rnia r ,.;�. ¢n St;:nrr�t,d s lr ___ " dN h WITNESS my hand d official seal. r�,,,.,;- .,, ,.7T -�_, SignahlFe This area for Ofjinal Notarial Seat OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT nTLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL C ATTORNEY-IN-FACT NUMBER OF PAGES ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S)OR ENrIY(IES) SIGNER(S) OTHER THAN NAMED ABOVE tD-aet Rk 6/94 ALL-PURPOSE ACKNOWLEDGEMENT CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A State of California ss. l"', county of P141-bj �(, J! On (k06LrA C)C�i_�� before me' "bf-vo,LA Q' it-I'llyi I Data N ,-and bills of Once(3c, Jana Doe,Nota,Pfii personally appeared to Nalrot(ii)of Sii 11 personally known to me E�7proved to me on the basis of satisfactory III" evidence o ol to be the person(' whose name(,) is/are— subscribed to the within instrument and acknowledged to me that he/she/they executed if the same in his/her/their authorized K, capacity(ies), and that by his/her/ther le person(st)-, or signature(li) on the instrument th the entity upon behalf of which the person(k)C�fr.t!, n f a, acted, executed the instrument. WrNESS o y hand,and ffici I'seal. �Trn_atcro arN.tno,Pinata OPTIONAL Though the information below is not required bylaw,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: It; MIN 0 Individual Trio of thrinflo h.. 11 Corporate Officer —Title(s): "r ,j D Partner — El Limited El General Ci El Attorney-in-Pact El Trustee iirj El Guardian or Conservator El Other: f-ii cl Signer Is Representing: it 0 1999 National Nolar,Association-9350 Do Solo Ave,P 0 Box 2402-Chatemorth,CA 91313 2402-eama cationalnotar,r or, Prad No 5907 Hoords,Cal Toil Free 1-1300 B76 6B27 Executed in Triplicate Bond No. 4402034 Premium: Included in cost of performance CITY OF PALM SPRINGS LABOR AND MATERIALS BOND WHEREAS, the City Council of the City of Palm Springs, State of California, and K. Hovnanian's Four Seasons Palm Springs, LLC, a California Limited Liability Company (hereinafter designated as "Principal") have entered into an agreement whereby Principal agrees to install and complete certain designated public Improvements, which said agreement, dated 2005, and identified as Tract Mao No. 30058, is hereby referred to and made a part hereof; and WHEREAS, under the terms of said agreement, principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Palm Springs to secure the claims to which reference is made in Title 15 (commencing with Sectlon 3082)of Part 4 of Division 3 of the Civil Code of the State of California. NOW, THEREFORE, Principal and the undersigned as corporate surety, are held firmly bound unto the City of Palm Springs and all contractors, subcontractors, laborers, materiaimen and other persons employed In the performance of the aforesaid agreement and referred to in the aforesaid Civil Code in the sum of Two Million Two Hundred Ninety-Two Thousand and 00/10Q dollars ($2,292,000.00), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said 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 such 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 15 (commencing with Section 3082) of Part 4 of Division 3 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 vold; 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 said 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. Labor and Materlals Bond Page 2 IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on January 11 2005. PRINCIPAL K. Hovnanian's Four Seasons Palm Springs, LLC, a California Limited Liability Company By: ( Z�/7 „„0 JAMES HIGHLANE*&MWODENT YK HOVNANIAN COMPANIES OF CALIFORNIA,INC. AUTHORIZED AGENT By: _ Name and Title SURETY By: Quanta Indemnity Company By: Wv,-t-TxA0 (Surety Name) Attorney-in-Fact ) Victoria M. Campbell (All Signatures Shall Be Notarized) STATE OF California I COUNTY OF Orange 55. On UAN Y I lil95 before me, Janina Monroe, Notary Public J � PERSONALLY APPEARED Victoria M Campbell personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowl- edged to me that he/she/they executed the same in his/ her/their authorized capacity(ies), and that by his/her/ their signature(s) on the instrument the erson s , or the Sr = - entity upon behalf of which the person(s) acted, executed a J,'utlRap,pr4 ,Nt ra[ the instrument. Gesntrrissinn�4�9�;,�_ta5 , > 4�.Y_�•,t�y t f'�r:t;,yr� F'ublin- CRlifcrrija a YI q ti F Cliv ngt2.COLI:)ta WITNESS my hand and official seal. t �,,,�,,., F`) J I;( `tl:, `ga;;Sne'�°�'Kw"."ya��Jl'na..:s..n;,•r.M. y ,7 ��f I Signature �I N" ��I� � V � This area for Official Natarfuf Seal OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying an the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL Cl CORPORATE OFFICER T(TLE(S) TITLE OR TYPE OF DOCUMENT ❑ PARTNERS) ❑ LIMITED ❑ GENERAL ATTORNEY-IN-FACT NUMBER OF PAGES ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S)OR EN➢lY(IES) SIGNER(S) OTHER THAN NAMED ABOVE ID-081 Fzv.6/94 ALL-PURPOSE ACKNOWLEDGEMENT CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT it i State of California ri;j ss. County of Orr bef re, me,-l/' ikviP Date j Name u,and Ttle of Officer re I g,Pre Do.,Nor. Public') personally appeared —1 Nouls(s)of triInions) El personally known to me K!proved to me on the basis of satisfactory evidence to be the parson(46 whose name is/i subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her4their authorized capacity(ips), and that by his/her/their !,'I c signatureij�) on the instrument the personO, or it the entity upon behalf of which the person(V acted, executed the instrument. h, T � SS hand and offical sea]. Ir ii `SPnoturroof Notary Public Q OPTIONAL Though the Information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document, ,J Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s)Other Than Named Above: hI Capaclty(ies) Claimed by Signer Signer's Name: V 0 Individual Top ii[humb here El Corporate Officer— Titli 01 0 Partner— Ll Limited 11 General El Attorney-in-Fact "I El Trustee Ll Guardian or Conservator D Other: 0] Signer Is Representing: 01999 Noreen Notary Association-9350 Do Solo Ave,PO Dm2402-Chatswonh,CA91313-2402-wwwnationainoWryoM Purd No 5907 'couds,Cal Toll-i 1 800 876 6827 QUANTA INDEMNITY COMPANY [formerly National Farmers Union Standard Insurance Company] New York City,New York 10020 POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS: that Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company], a Colorado corporation, (hereinafter the "Company"), does hereby constitute and appoint: Paul Boucher, Keith W. Newell, Maria A. Quiroz,Janina Monroe, Victoria M. Campbell, Michael Vanasopha,and Michael Chalekson of Los Angeles, California to be its true and lawful Attorney(s)-in-Fact, with full power and authority hereby conferred to sign, seal, and execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar nature issued in the course of its business up to a penal Sum not to exceed FIFTY MILLION AND 00/100 DOLLARS ($50,000,000.00) each, and to bind the Company thereby as fully and to the same extent as if the same were signed by the duly authorized officers of the Company. This appointment is made under and executed pursuant to and by authority of the following By-law, which By-law is now in full force and effect: ARTICLE XVIII- EXECUTION OF POLICIES, BONDS, ETC. Section 2. All bonds, undertakings, contracts, and other instruments, other than as above for and on behalf of the Company which it is authorized by law or its charter to execute, may and shall be executed in the name and on behalf of the Company either by the Chairman or the Deputy Chairman, if any, or the President or a Vice President,jointly with the Secretary or an Assistant Secretary, under their respective designations, except that any one or more officers or attorneys-in-fact designated in any resolution of the Board of Directors or the Executive Committee, or in any power of attorney executed as provided for in 'Seetion 3 beeh*v, may execute any such bond, undertaking or other obligation as provided in such resolution or power of attorney. Section 3. All powers of attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the Company, either by the Chairman or the Deputy Chairman or the President or a Vice President or an Assistant Vice President, jointly with the Secretary or an Assistant Secretary, under their respective designations. The signature of such officers may be engraved, printed or lithographed. The signature of each of the following officers: Chairman, Deputy Chairman, President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing Assistant Secretaries or attorneys- in-fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Company and the corporate seal of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] has been affixed thereto in New York City,New York this 26°i day of March, 2004. Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] By Waldo Deereus,Assistant Secretary �.OZ,N1N1Tj. 0��poa n ¢: 2003 > pp o0J.ovN, "� STATE OF NEW YORK) ss COUNTY OF NEW YORK) On this 26`h day of March, 2004, before me, a Notary Public, personally came WALDA DECREUS, to me known, and acknowledged that she is an Assistant Secretary of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company]; that she knows the seal of said corporation; and that she executed the above Power of Attorney and affixed the corporate seal of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] thereto with the authority and at the direction of said corporation. Carol E. Cinoola Notary Public-State of New York Notary Public No.01 C14759623 Qualified in Westchester County My Commission Expires June 30,2006 CERTIFICATE I, the undersigned, Secretary of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company], do hereby certify that the foregoing Power of Attorney is still in full force and effect, and further certify that Article XVIII, Sections 2 and 3 of the By-laws of the Company are now in force, r IN TESTIMONY WHEREOF I have subscribed my name and affixed the seal of said Company. Dated this 4AN4 6f 2005 BY r-- Martha G. Bannerman,Secretary �9S.,NiNlT�- zz 2003 d y 90 •..,cox ,: IMPORTANT DISCLOSURE NOTICE REGARDING TERRORISM RISK INSURANCE ACT OF 2002 Under the provisions of the Terrorism Risk Insurance Act of 2002 ("The Act'), we are providing this disclosure notice for bonds for which a subsidiary of Quanta U.S. Holdings, Inc. is the surety. You are hereby notified that any losses caused by a certified act of terrorism as defined by The Act may be partially reimbursed by the Federal Government under a formula established by The Act. The term "certified act of terrorism" means any act certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States Mission; and to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or influence the policy or affect the conduct of the Federal Government by coercion. The formula established by The Act requires the Federal Government to pay 90% of losses arising from certified acts of terrorism that exceed the statutorily established deductible to be paid by the surety. Acts of terrorism are not excluded from any surety bonds issued on your behalf and your premium charge for terrorism coverage is $0.00. This is a notice regarding your terrorism coverage which should be used for informational purposes only. Please refer to the bond form for the terms and conditions regarding your terrorism coverage. Form Number SUR 10001 (Ed. 4/04) Executed in Triplicate Bond No. 4402034-M Premium incl in Perf bond CITY OF PALM SPRINGS BOND FOR MAINTENANCE AND WARRANTY OF IMPROVEMENTS WHEREAS, the City Council of the City of Palm Springs, State of California, and K. Hovnanian's Four Seasons Palm Springs, LLC, a California Limited Liability Company (hereinafter designated as "Principal") have entered Into an agreement whereby Principal agrees to install and complete certain designated public Improvements, which said agreement, dated ,rut �,J 2005, and Identified as Tract Mao No, 30068, is hereby referred to and made a part hereof; and WHEREAS, Principal Is required under the terms of said Agreement to maintain and guarantee the costs or repair and/or replacement of defective materials or defective workmanship in such improvements, which guarantee shall remain in effect for a period of one (1) year from date of acceptance of work by the City of Palm Springs (hereinafter called "City'), and to furnish a bond for the faithful performance of said Agreement and the payment of all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of any such maintenance and warranty work, WHEREAS, Principal has completed said work and the City has accepted, or substantially concurrently herewith is accepting, said work, subject to the requirement of delivery of this obligation. NOW THEREFORE, we, the Principal, and Quanta Indemnity company , as Surety, are held and firmly bound unto the City, and all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of the aforesaid Agreement, for one (1) year from and after the date of completion and acceptance of said work, in the penal sum of Six Hundred Eiqht-Seven Thousand Six Hundred and 001100 dollars ($687.600,00), lawful money of the United States, for replacement and repair of any and all defective materials or defective workmanship within said improvements, and the payment of all materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor in connection with any such maintenance or warranty, that said surety will pay the same In an amount not exceeding the amount hereinabove set forth, 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. 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 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. The condition of this obligation is such that if the above bonded 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 the said Agreement respecting the repair and replacement of defective workmanship and materials 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 save harmless the City of Palm Springs, its officers, agents and employees, as therein stipulated, then this obligation becomes null and void; otherwise it shall be and remain In full force and effect. Maintenance & Warranty Bond Page 2 As a part of the obligation secured hereby and in addltlon to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, Including reasonable attorneys fees, incurred by the City In successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. The surety hereby stipulates and agrees that no change, extenslon of time, alteration or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in anyway 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 the Agreement or to the work or to the specifications. IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, on January 11 2006. PRINCIPAL K. Hovnanian's Four Seasons Palm Springs, LLC, a California Limited Liability Company By: Signature By: _ Name and Title SURETY By: Quanta Indemnity Company By: (Surety Name) Attorney-in-Fact Victoria M. Campbell = (All Signatures Shall Be Notarized) : M . STATE OF California SS. COUNTY OF Orange On JAN 1 1 2005 before me, Janina Monroe, Notary Public J � PERSONALLY APPEARED Victoria M Campbell personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowl- edged to me that he/she/they executed the same in his/ her/their authorized capacity(ies), and that by his/her/ JANItNAMONROE their signature(s) on the instrument the person(s), or the l Commission*1g324,95 i-i entity upon behalf of which the person(s) acted, executed � t� 16o ey F a'alu C liFurniu n O the instrument. \ r)n County Fv'y t, rm ' .rfrc 1unzG 7C's9"n E WITNESS my hand and official seal. S igna tur`'e jW``UI✓ M tm This area for Of nal Notarial Seal U OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OFATTACHEO DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TnLE(s) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ATTORNEY-IN-FACT NUMBER OF PAGES ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSONISI OR ENTMi ES) SIGNER(S) OTHER THAN NAMED ABOVE 10-081 R,� 6/94 ALL-PURPOSE ACKNOWLEDGENIENT CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California �•» ss. it County of CVR-u')C-z n _ d I '�I before me,_ Li.4A�.dP 0 �- �(t)`1, Q V's&, 5 19I( M No e ngg itleofOff' (e,gl,'Jan.Coe,Nolary RubLe"J q 11 L(, personally appearedale ,I �( 1 ` Narel(e).61 signege) itr ❑personally known to me Il q® proved to me on the basis of satisfactory nl I<r� evidence fr - -^ '7 to be the person* whose nameO is/area 'I VALERiEL.F4'w9H^9 i subscribed to the within instrument and f acknowledged to me that he/shelthey executed I I �umrNi��i©n, i3©���3` _ I [� �acyr!P°`�"�" s- the same in his/her/their authorized n 1 j� kSraat���otasv4y capacity(iesr, and that by his/her/their 7 __ _ ____ _ __.�.. � signature(s) on the instrument the person('s); or '�f "' " " ' the entity upon behalf of which the person(�)Ili�l it acted, executed the instrument. }I u. IWIf"N SS my hand andoffi�cia�lJseal. l' B,gnaiure o(Qvolary Public — II � �I OPTIONAL Ifl� Though the information below is not required by law,It may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. +� Description of Attached Document to Title or Type of Document: it Document Date: Number of Pages: "I Signer(s)Other Than Named Above: 5 "i Capacity(ies) Claimed by SignerI Signer's Name: a> f ❑ Individual Top or thumb hem ❑ Corporate Officer—Title(s): d'1 ❑ Partner— ❑ Limited ❑General ll ❑ Attorney-in-Fact �5 (J ❑ Trustee ❑ Guardian or Conservator I:di I(I ❑ Other: �)I Jc :n { Signer Is Representing: i. ©1999National NolaryAeaoo,a[ion-9366 Be Solo Ave,PO.Box 2432.Chatsworth,CA91313-2492-wwwarrionaln.laryotg Prod No6991� never,Call Toll-Free1-69p876-6827 QUANTA INDEMNITY COMPANY [formerly National Farmers Union Standard Insurance Company] New York City, New York 10020 POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS: that Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company], a Colorado corporation, (hereinafter the "Company"), does hereby constitute and appoint: Paul Boucher, Keith W. Newell, Maria A. Quiroz,Janina Monroe, Victoria M. Campbell, Michael Vanasopha, and Michael Chalekson of Los Angeles, California to be its true and lawful Attorney(s)-in-Fact, with full power and authority hereby conferred to sign, seal, and execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar nature issued in the course of its business up to a penal sum not to exceed FIFTY MILLION AND 00/100 DOLLARS ($50.000,000.00) each, and to bind the Company thereby as fully and to the same extent as if the same were signed by the duly authorized officers of the Company. This appointment is made under and executed pursuant to and by authority of the following By-law, which By-law is now in full force and effect: ARTICLE XVIII- EXECUTION OF POLICIES, BONDS, ETC. Section 2. All bonds, undertakings, contracts, and other instruments, other than as above for and on behalf of the Company which it is authorized by law or its charter to execute, may and shall be executed in the name and on behalf of the Company either by the Chairman or the Deputy Chairman, if any, or the President or a Vice President,jointly with the Secretary or an Assistant Secretary, under their respective designations, except that any one or more officers or attorneys-in-fact designated in any resolution of the Board of Directors or the Executive Committee, or in any power of attorney executed as provided for in Section 3 below, may execute any such bond, undertaking or other obligation as provided in such resolution or power of attorney. Section 3. All powers of attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the Company, either by the Chairman or the Deputy Chairman or the President or a Vice President or an Assistant Vice President, jointly with the Secretary or an Assistant Secretary, under their respective designations. The signature of such officers may be engraved, printed or lithographed. The signature of each of the following officers: Chairman, Deputy Chairman, President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing Assistant Secretaries or attorneys- in-fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Company and the corporate seal of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] has been affixed thereto in New York City, New York this 26`h day of March, 2004. Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] By Walda Decreus,Assistant Secretary �vf,N1Nrrf. ♦:•„roar"•.n �?'G° ism•.p zt? arms ° 5 '•.�ORh: '�44M1j STATE OF NEW YORK) ss COUNTY OF NEW YORK) On this 261h day of March,2004, before me, a Notary Public, personally came WALDA DECREUS,to me known, and acknowledged that she is an Assistant Secretary of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company]; that she knows the seal of said corporation; and that she executed the above Power of Attorney and affixed the corporate seal of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company] thereto with the authority and at the direction of said corporation. -I �i Lz'.i G1C. Carol E. Clncola Notary Public-State of New York Notary Public No.01C14759623 Qualified in Westchester County My Commission Expires June 30,2006 CERTIFICATE I, the undersigned, Secretary of Quanta Indemnity Company [formerly National Farmers Union Standard Insurance Company], do hereby certify that the foregoing Power of Attorney is still in full force and effect, and further certify that Article XVIII, Sections 2 and 3 of the By-laws of the Company are now in force. 1 2005 ,JAN 1 IN TESTIMONY WHEREOF I have subscribed my name and affixed the seal of said Company. Dated this day of B' y Martha G. Bannerman,Secretary aO- NIp 7Q.30 97O'•.v a 9 200:3 'aU,�'• Cp O�'�� TI IMPORTANT DISCLOSURE NOTICE REGARDING TERRORISM RISK INSURANCE ACT OF 2002 Under the provisions of the Terrorism Risk Insurance Act of 2002 ("The Act"), we are providing this disclosure notice for bonds for which a subsidiary of Quanta U.S. Holdings, Inc. is the surety. You are hereby notified that any losses caused by a certified act of terrorism as defined by The Act may be partially reimbursed by the Federal Government under a formula established by The Act. The term "certified act of terrorism" means any act certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States Mission; and to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or influence the policy or affect the conduct of the Federal Government by coercion. The formula established by The Act requires the Federal Government to pay 90% of losses arising from certified acts of terrorism that exceed the statutorily established deductible to be paid by the surety. Acts of terrorism are not excluded from any surety bonds issued on your behalf and your premium charge for terrorism coverage is $0.00. This is a notice regarding your terrorism coverage which should be used for informational purposes only. Please refer to the bond form for the terms and conditions regarding your terrorism coverage. Form Number SUR 10001 (Ed. 4/04)