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HomeMy WebLinkAbout04586 - BABALU SUBDIVISION IMPROVEMENT PRESCOTT Page 1 of 1 Kathie Hart From: Marcus Fuller Sent: Monday, August 15, 2005 4:30 PM To: Kathie Hart Cc: Jay Thompson; Carol Templeton Subject: RE: Bablu -A4586 Yes, thanks. Sincerely, Marcus L. Fuller, P.E., P.L.S. Assistant Director of Public Works/ Assistant City Engineer City of Palm Springs (760) 323-8253, ext. 8744 marcusf@ci.palm-springs.ca.us From: Kathie Hart Sent: Monday, August 15, 2005 4:30 PM To: Marcus Fuller Cc: Jay Thompson Subject: Bablu -A4586 Marcus: The conditions of subdivision improvement has been satisfied, and the letters of credit have been returned and released. Shall we CLOSE this agreement? i Pls advise. I i I Thx '• (� r I Kathie Hart, CMC Chief Deputy City Clerk i City of Palm Springs I 3200 Tahquitz Canyon Way Palm Springs, CA 92262 KathieH(oci.palm-sprin sg ca.us Office (760) 323-8206 I Fax (760) 322-8332 i I I I I I I I II I 8/15/2005 I QALM SA City of Palm Springs h U kn + * Office of the City Clerk 3200 E.Tah�I [/uitz Canon Wad) • YrynD Palm Springs, California 92262 ^* CD ORAtEO`9 * `I l l �P Tel: (760)323-8204 • pas:(760)322-8332 • Web:www.ci.palm-spungs.ca.us 44 I F O fta August 15, 2005 Mr. Joe Cecala, Vice-President Foothill Independent Bank 510 South Grand Avenue Glendora, CA 91741 Re: Tract Map 30574—772 Prescott Drive (Palm Springs A4586) Dear Mr. Cecala: t The obligations of the subdivision improvement agreement between the City of Palm Springs and Babalu, LLC relating to Tract Map 30574 has been satisfied; therefore, the following Irrevocable Letters of Credit are being released and returned: 1. Faithful Performance, UC No. 02-81-13751A, amount of$71,008.00; 2, Labor and Material, L/C No. 02-81-13751 B, amount of$35,504.13; and 3. Faithful Performance for Setting Monuments, LC No. 02-81-13751C, amount of$5,000. Please feel free to call our office if there are any questions, (760) 323-8204. Sincerely, Kathie Hart, CMC Chief Deputy City Clerk /kdh Encl. Faithful Performance Letter of Credit Labor and Material Letter of Credit Faithful Performance for Setting Monuments Letter of Credit r,: Marcus Fuller, P.E., P.L.S. Asst. City Engineer(w/ Encl.) Carol Templeton Engineering Associate Andy Carpiac, Babalu, LLC. File—A4715 (w/ Encl.) Post Office Box 2743 0 Palm Springs, California 92263-2743 IT FOOTHILL INDEPENDENT BANK MEMBER FDIC 510 SOUTH GRAND AVENUE GLENDORA, CALIFORNIA 91741 (626) 963-8551 • (909)599-9351 FAX(626)914-0731 IRREVOCABLE LETTER OF CREDIT Faithful Performance i Date of Issue: October 2, 2002 I r Our Irrevocable Standby Credit Number: 02-81-13751A i Date of Expiry: October 2, 2003 i Place of Expiry: At our Counters I Applicant: Babalu, LLC i Beneficiary: City of Palm Springs P.O. Box 2743 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263-2743 Amount: USD $71,008.00 U.S. DOLLARS Foothill Independent Bank (Issuer) hereby establishes in favor of Beneficiary this Irrevocable Letter of Credit No. 02-81-13751A available with Foothill Independent Bank) by payment of Beneficiary's draft at sight drawn on Foothill Independent Bank accompanied by a statement from Beneficiary executed by a person purporting to be the City Manager or the City -- Engineer of Beneficiary or authorized agent thereof in one or both of the forms set forth in Exhibit LLI attached hereto. Drafts drawn under this Letter of Credit must bear the clause "Drawn" under Foothill Independent Bank Letter of Credit No. 02-81-13751A dated October 2, 2002. Each draft presented hereunder must be accompanied by this original credit for Foothill Independent Bank's endorsement thereon of the amount of such draft. The documents must be forwarded to Foothill Independent Bank at Issuer's address: 510 S. Grand Avenue, Glendora, CA 91741. Foothill Independent Bank shall have no duty to and shall not investigate into the veracity of any certification to be given under the terms of this Letter of Credit, but shall be entitled to rely solely upon receipt of such certification in permitting draws under this Letter of Credit. Applicant's D U P L I C C ' Nagez sole recourse in the event of any false certification by the Beneficiary shall be against Beneficiary and there shall be no recourse against Foothill Independent Bank, provided that Foothill I Independent Bank has complied with its obligations under this Letter of Credit. I This Letter of Credit shall be automatically extended, without amendment, for an additional period or periods up to twelve (12) months from the present expiration date, unless not less than thirty (30) days prior to any expiration date, Foothill Independent Bank shall notify Beneficiary in writing that either Foothill Independent Bank or Applicant elected not to renew or extend this Letter of Credit for such additional period, nor has Applicant procured a replacement letter of credit, at which time Beneficiary may draw against this Letter of Credit by presenting its draft and certification as stated above. This credit is subject to the Uniform Customs and Practice for Documentary Credits (1983 Revision), International Chamber of Commerce Publication No. 400, and engages us in accordance with the terms hereof. Sincerely, Joe (6cala Lori Lake Senior Vice President Vice President Chief Credit Officer Loan Administrator EXHIBIT"1" I EXAMPLES OF CERTIFICATION I I I I To: Issuer I I Re: LETTER OF CREDIT NO, dated The undersigned hereby represents, warrants and certifies as follows: (ALT 1) ( ) Beneficiary is entitled to draw under this Letter of Credit by reason of a breach or default by Applicant in payment or performance under that certain Subdivision Improve- ment Agreement dated by and between Applicant and Beneficiary. (ALT 2) ( ) Applicant has failed to deliver to Beneficiary either evidence of renewal of this Letter of Credit or a replacement letter of credit and Beneficiary is therefore entitled to draw under this Letter of Credit by reason thereof. CITY OF PALM SPRINGS, CALIFORNIA City Manager City Engineer u NLt 'p FOOTHILL INDEPENDENT BANK MEMBER FDIC 510 SOUTH GRAND AVENUE GLENDORA, CALIFORNIA 91741 (626) 963-8551 (909)599-9351 FAX(626) 914-0731 IRREVOCABLE LETTER OF CREDIT Labor and Material i Date of Issue: October 2, 2002 Our Irrevocable Standby Credit Number: 02-81-13751 B Date of Expiry: October 2, 2003 I Place of Expiry: At our Counters Applicant: Babalu, LLC Beneficiary: City of Palm Springs p P.O. Box 2743 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263-2743 Amount: USD $35,504.13 U,S. DOLLARS Foothill Independent Bank(Issuer) hereby establishes in favor of Beneficiary this Irrevocable Letter of Credit No. 02-81-13751B available with Foothill Independent Bank) by payment of Beneficiary's draft at sight drawn on Foothill Independent Bank accompanied by a statement from Beneficiary executed by a person purporting to be the City Manager or the City "^ Engineer of Beneficiary or authorized agent thereof in one or both of the forms set forth in Exhibit LLI attached hereto. Drafts drawn under this Letter of Credit must bear the clause "Drawn" under Foothill Independent Bank Letter of Credit No. 02-81-13751 B dated October 2, 2002. Each draft presented hereunder must be accompanied by this original credit for Foothill Independent Bank's endorsement thereon of the amount of such draft. The documents must be forwarded to Foothill Independent Bank at Issuer's address: 510 S. Grand Avenue, Glendora, CA 91741. Foothill Independent Bank shall have no duty to and shall not investigate into the veracity of any certification to be given under the terms of this Letter of Credit, but shall be entitled to rely solely upon receipt of such certification in permitting draws under this Letter of Credit. Applicant's Hage sole recourse in the event of any false certification by the Beneficiary shall be against Beneficiary and there shall be no recourse against Foothill Independent Bank, provided that Foothill Independent Bank has complied with its obligations under this Letter of Credit. This Letter of Credit shall be automatically extended, without amendment, for an additional period or periods up to twelve (12) months from the present expiration date, unless not less than thirty (30) days prior to any expiration date, Foothill Independent Bank shall notify Beneficiary in writing that either Foothill Independent Bank or Applicant elected not to renew or extend this Letter of Credit for such additional period, nor has Applicant procured a replacement letter of credit, at which time Beneficiary may draw against this Letter of Credit by presenting its draft and certification as stated above. This credit is subject to the Uniform Customs and Practice for Documentary Credits (1983 Revision), International Chamber of Commerce Publication No. 400, and engages us in accordance with the terms hereof. Sincerely, ? Joe 0ecala Lori Lake Senior Vice President Vice President Chief Credit Officer Loan Administrator \ r t EXHIBIT"I" EXAMPLES OF CERTIFICATION To: Issuer i I I i Re: LETTER OF CREDIT NO. dated The undersigned hereby represents, warrants and certifies as follows: (ALT 1) ( ) Beneficiary is entitled to draw under this Letter of Credit by reason of a breach or default by Applicant in payment or performance under that certain Subdivision Improve- 'ment Agreement dated by and between Applicant and Beneficiary. (ALT 2) ( ) Applicant has failed to deliver to Beneficiary either evidence of renewal of this Letter of Credit or a replacement letter of credit and Beneficiary is therefore entitled to draw under this Letter of Credit by reason thereof. CITY OF PALM SPRINGS, CALIFORNIA City Manager City Engineer FOOTHILL INDEPENDENT BANK MEMBER FDIC 510 SOUTH GRAND AVENUE GLENDORA, CALIFORNIA 91741 (626) 963-8551 • (909)'599-9351 • FAX(626) 914-0731 IRREVOCABLE LETTER OF CREDIT Faithful Performance for Setting Monuments Date of Issue: October 2, 2002 Our Irrevocable Standby Credit Number: 02-81-13751C Date of Expiry: October 2, 2003 Place of Expiry: At our Counters Applicant: Babalu, LLC Beneficiary: City of Palm Springs _= P.O. Box 2743 3200 E. Tahquitz Canyon Way ( Palm Springs, CA 92263-2743 i.0 Amount: IJSD $5,000.00 U.S, DOLLARS LLFoothill Independent Bank (Issuer) hereby establishes in favor of Beneficiary this Irrevocable Letter of Credit No. 02-81-13751C available with Foothill Independent Bank) by payment of Beneficiary's draft at sight drawn on Foothill Independent Bank accompanied by a statement from Beneficiary executed by a person purporting to be the City Manager or the City Engineer of Beneficiary or authorized agent thereof in one or both of the forms set forth in Exhibit "I" attached hereto. Drafts drawn under this Letter of Credit must bear the clause "Drawn" under Foothill Independent Bank Letter of Credit No. 02-81-13751 C dated October 2, 2002. Each draft presented hereunder must be accompanied by this original credit for Foothill Independent Bank's endorsement thereon of the amount of such draft. The documents must be forwarded to Foothill Independent Bank at Issuer's address: 510 S. Grand Avenue, Glendora, CA 91741. Foothill Independent Bank shall have no duty to and shall not investigate into the veracity of any certification to be given under the terms of this Letter of Credit, but shall be entitled to rely solely upon receipt of such certification in permitting draws under this Letter of Credit. Applicant's if of 31l9 h-?`.�✓'� 'I �'i a it+` l i I:. Page2 it sole recourse in the event of any false certification by the Beneficiary shall be against Beneficiary and there shall be no recourse against Foothill Independent Bank, provided that Foothill Independent Bank has complied with its obligations under this Letter of Credit. This Letter of Credit shall be automatically extended, without amendment, for an additional period or periods up to twelve (12) months from the present expiration date, unless not less than thirty (30) days prior to any expiration date, Foothill Independent Bank shall notify Beneficiary in writing that either Foothill Independent Bank or Applicant elected not to renew or extend this Letter of Credit for such additional period, nor has Applicant procured a replacement letter of credit, at which time Beneficiary may draw against this Letter of Credit by presenting its draft and certification as stated above. This credit is subject to the Uniform Customs and Practice for Documentary Credits (1983 Revision), International Chamber of Commerce Publication No. 400, and engages us in accordance with the terms hereof. Sincerely, f Joe Cecala Lori Lake Senior Vice President Vice President Chief Credit Officer Loan Administrator e ,._ ; ; EXHIBIT"I" EXAMPLES OF CERTIFICATION To: Issuer Re: LETTER OF CREDIT NO. dated The undersigned hereby represents, warrants and certifies as follows: (ALT 1) ( ) Beneficiary is entitled to draw under this Letter of Credit by reason of a breach or default by Applicant in payment or performance under that certain Subdivision Improve- ment Agreement dated by and between Applicant and Beneficiary, (ALT 2) ( ) Applicant has failed to deliver to Beneficiary either evidence of renewal of this Letter of Credit or a replacement letter of credit and Beneficiary is therefore entitled to draw under this Letter of Credit by reason thereof. CITY OF PALM SPRINGS, CALIFORNIA City Manager City Engineer ­J�j� City of Palm Springs ✓Gi°? ` II 11 Department of Public Works and Engineering 3200 E Tahquicz Canyon Way • Palm Springs, California 92262 Tel: (760)323-8253 • Pax: (760) 322-8360 Web:www.ci.palm-springs.ca.us August 9, 2005 I Attention: Joe Cecala, Vice President I Foothill Independent Bank rn' 510 South Grand Avenue -e Glendora, CA 91741 Attn: Mr. Joe Cecala Ike: Tract Map 30574: 772 Prescott Drive I Please considerthis letter as the City of Palm Springs'notice that the obligations of the subdivision improvement agreement between the City of Palm Springs and Babalu, LLC, Vitameatavegamin, LLC, and You Got Some Splainin To Do, LLC, related to Tract Map 30574, have been satisfied. The following subdivision securities required by the agreement may now be released: Faithful Performance Letter of Credit (L/C): L/C No. 02-81-13751A; $71,008.00 Labor and Materials Letter of Credit: L/C No. 02-81-13751 B; $35,504.13 Faithful Performance L/C (Monumentation): L/C No. 02-81-13751C; $ 5,000.00 If you have any questions, I can be reached at (760) 323-8253, extension 8741. Sincerely,ecu-ue' //JJ Carol Templeton Engineering Associate cc Andy Carpiac,Babaln,LLC,330 Washington Blvd,Suite 300,Manna del Rey,CA 90292-via facsimile (310)301-4234 Joe Cecala,Foothill Independent Bank,510 South Grand Avenue, Glendora, CA 91714-via facsimile.(626)914-0731 James Thompson, City Clerk TM30574 file Post Office Box 2743 0 Palm Springs, California 92263-2743 Babalu, LLC Subdivision Agreement AGREEMENT #4586 R20479, 10-16-02 SUBDIVISION IMPROVEMENT AGREEMENT by and between CITY OF PALM SPRINGS and BABALU, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY VITAMEATAVEGAMIN, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY YOU GOTSOME SPLAININ TO DO, LLCA CALIFORNIA LIMITED LIABILITY COMPANY TABLE OF CONTENTS 1.Construction Obligations........................................................... 1 1.1 Works of Improvement........................................... 1 1.2 Other Obligations Referenced in Conditions of Tentative Map Approval......................................... 2 1.3 Intent of Plans........................................................ 2 1.4 Survey Monuments................................................ 2 1.5 Performance of Work.............................................. 3 1.6 Changes in the Work.............................................. 3 1.7 Defective Work....................................................... 3 1.8 No Warranty by City............................................... 3 1.9 Authority of the City Engineer................................ 3 1.10 Documents Available at the Site............................ 3 1.11 Inspection............................................................... 3 1.12 Compliance with Law............................................. 4 1.13 Suspension of Work............................................... 4 1.14 Final Acceptance of Works of Improvement........... 4 2. Time for Performance....................................................... 5 2.1 Commencement and Completion Dates................. 5 2.2 Phasing Requirements........................................:... 5 2.3 Force Majeure......................................................... 5 2.4 Continuous Work.................................................... 6 2.5 Reversion to Acreage.............................................. 6 2.6 Time of the Essence................................................ 6 3. Labor................................................................................. 6 3.1 Labor Standards...................................................... 6 3.2 Nondiscrimination................................................... 6 3.3 Licensed Contractors.............................................. 7 3.4 Workers' Compensation.......................................... 7 4. Security............................................................................. 7 4.1 Required Security.................................................... 7 4.2 Form of Security Instruments.................................. 8 4.3 Subdivider's Liability................................................ 9 4.4 Letters of Credit....................................................... 9 4.5 Release of Security Instruments.............................. 10 5. Cost of Construction and Provision of Inspection Service............................................................................... 11 5.1 Subdivider Responsible for All Related Costs of i Construction............................................................ 11 5.2 Payment to City for Cost of Related Inspection and Engineering Services........................................ 11 6. Acceptance of Offers of Dedication................................... 11 7. Warranty of Work.............................................................. 11 8. Default............................................................................... 12 8.1 Remedies Not Exclusive.......................................... 12 8.2 City Right to Perform Work...................................... 12 8.3 Attorney's Fees and Costs....................................... 12 9. Indemnity.......................................................................... 12 10 General Provisions............................................................. 13 10.1 Successors and Assigns......................................... 13 10.2 No Third Party Beneficiaries.................................... 13 10.3 Entire Agreement; Waivers and Amendments....... 13 11. Corporate Authority........................................................... 13 ii SUBDIVISION IMPROVEMENT AGREEMENT THIS SUBDIVISION IMPROVEMENT AGREEMENT (this "Agreement") is entered into this % day of �'�'= d e�� _ 2002, by and between the CITY OF PALM SPRINGS, a municipal corporation of the State of California ("CITY"), and Babalu, LLC, a California Limited Liability Company, Vitameatavegamin, LLC, a California Limited Liability Company, and You Got Some Splainin To Do, LLC, a California Limited Liability Company ("Subdivider"). RECITALS A. Subdivider is the owner of, and has obtained approval of a subdivision map for Tract No. 30574 in the City of Palm Springs, County of Riverside, State of California (the "Property").The map contains conditions of approval for the development of the Property(the "Conditions"). B. Pursuantto the Conditions, Subdivider, bythe Map, has offered dedication to City a five (5) foot wide easement for public utility purposes as shown on the Map. City desires to accept the easement shown on the Map for public utility purposes and certain other improvements 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 offer of dedication of the streets, easements and other improvements and facilities, as shown on the Map, are a material consideration to City in approving the final 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 forthe Property and permitting development of the Property to proceed, Subdivider agrees to timely perform all of its obligations as set forth herein. 1. Construction Obligations. 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 1 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 $71,008.25. 1.2 Other Obligations 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 which have not been satisfied prior to the date of this Agreement are identified on Exhibit "A" hereto. 1.3 Intent of Plans. The intent of the Plans referenced in Section 1.1 is to prescribe a complete work of improvement which Subdivider shall perform or cause to be performed in a manner acceptable to the City Engineer(or his/her designee) and in full compliancewith all codes and the terms of this Agreement. Subdividershall complete a functional oroperable 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 engineerwho will seek approval of the City Engineer for 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 by the City Engineer. The Plans shall be supplemented by such working or shop drawings as are necessary to adequately control thework.Withoutthe City Engineer's priorwritten approval, no change shall be made by Subdivider or Subdivider's contractorto any plan, specification, orworking or shop drawing after it has been stamped as approved. 1.4 Survey Monuments. Before final approval of street improvements, Subdividerwill 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.Subdividershall provide securityforsuch 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 forthe 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 orderextrawork or may make changes by altering or 2 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 protectthe public health,safety, orwelfare.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 by City. The Plans forthe 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 Engineershall havethe 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. 1.10 Documents Available at the Site. Subdivider shall cause its contractorto 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 contractorto furnish the City with every reasonable facility for ascertaining whetheror notthe 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 contractorat anytime before acceptance ofthe 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 thejob 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 orthe contractor of any obligations to fulfill this Agreement as herein provided,and unsuitable materials orwork may be rejected notwithstanding that such materials or work may have been previously overlooked or accepted. 3 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 ofworkfor any causewhatever, Subdivider and its contractor shall be responsible for all materials and shall store them properly if necessary and shall provide suitable drainage and erecttemporary 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. It 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, Citywill inform the contractorof such items.Afterthe 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 requirethe contractor, as a condition to performing further field inspections, to submit in writing a detailed statement of the work performed subsequentto 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 (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 nine (9) months after the Commencement Date. 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 may be amended from time to time. Subdivider acknowledges City's right to withhold the issuance of further building 4 permits on the Property until such phasing requirements are satisfies. 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. 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 longerthan five(5)days priorto City's receipt of a written notice from Subdivider or its Contractor detailing the grounds for Subdivider's claim to a rightto 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 Acreage. 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 rig ht 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 lateroftwo(2)years from the date of this Agreement orwithin 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, 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 5 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 bythe 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 Security. (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)orothersecurity 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 $71,008.25 estimated construction costs listed 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 $35,504.13 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 $5,000.00 of the estimated monumentation cost. 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 far a period of one (1) year following said acceptance("Maintenance and Warranty Security Instrument"),with the amount 6 of such Security Instrument to be equal to $2,402.06 of the estimated construction cost set forth in Section 1.1 or a suitable amount determined by the City Engineer. 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 ofA-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 Subdividerfails to deliver a replacement letter of credit not less than thirty(30) days priorto 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 accordancewith Section 2.1 (otherthan Instruments of Credit, which shall have no defined term or expiration date). (iii) Each Security Instrument shall provide that changes maybe made in the Works of Improvement pursuant to the terms of this 7 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 Cityfrom such realization of any Security Instrument. Notwithstanding thegiving of any Security Instrument orthe subsequent expiration of any Security Instrument oranyfailure by any surety or financial institution to perform its obligations with respectthereto,Subdividershall 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 afterwritten demand therefor,deliverto Citysuch substitute security as City shall require satisfying the requirements in this Section 4. 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 orto hold such funds in an account underthe control of the City,with no interest accruing thereon forthe benefit of the Subdivider. If the City elects to hold the funds in an account pursuant to the foregoing, City may thereafter at anytime 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; 8 (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 Subdividerand City prior to construction of the works. 5.2 Payment to Cityfor Cost of Related Inspection and Engineering Services. Subdivider shall compensate City for all ofCity'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 fordepositand payment of such fees shall be as established bythe 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 9 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 togetherwith any otherwork which may be damaged or displaced in so doing. Should Subdividerfail to remedydefective material and/orworkmanship 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 fora default by Subdivider hereunder, such remedy shall be in addition to, and not exclusive of, City's rightto pursue any other administrative, legal, or equitable remedy to which it may by entitled. 8.2 City Right 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 defaultto completion,City shall havethe right to enter into the Property and perform any ofthe uncompleted work byforce account or contractor both and thereupon recoverfrom Subdivider or any Security Instrument, or both, the full cost and expense thereby incurred by City. 8.3 Attorney's 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. 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 10 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 notextend to any loss resulting from City's sole negligence or wilful misconduct. 10. General Provisions. 10.1 Successors and Assigns. 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 onlythe parties hereto and their respective successors and assigns. Neither City nor Subdivider intend to create anythird 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 hereeto warrant the(1)such party is duly organized and existing, (ii)they are duly authorized to execute and deliverthis 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. 11 IN WITNESS WHEREOF, the parties hereto have executed this Subdivision Improvement Agreement as of the date first above written. DATED: I Q0 `2- �ATT�ESST�: (� CITY OF PALM SPRINGS,CALIFORNIA By,�'� Patricia A. Sanders, City Clerk David Ready, City Mana APPROVED AS TO FORM: City Attorney' CONTRACTOR: (Check One: individual, _X_partnership _corporation) Babalu, LLC, aaCCalifornia Limited Liability Company (Notarize Signature) By: ✓// Andrey Carpiac, MayAging Member Vitam t, La California Limited Liability Co any (Notarize Signature) By: Steve610hren , Managing Member You Got Some Splainin To Do, LLC, a California Limited Liability C mpany (Notarize Signature) By: Clifford W. Lord, j anaging M ber "Subdivider" Mailing Address: Babalu, LLC 330 Washington Blvd., Suite 300 Marina Del Rey, CA 90292 �i �1 i .. n i � � � - .�,, x �� � ., �,.� .. i ,. i a _ r � ��{ ' � � i . a.. ., is ...,�. . i• �11 s. r .. ' lrv%�Y9YK�*#FWK'SlWt.aRANPmNv:aR�Y�1Y��.,:w:M�s.•:p;��a.:•.� MFM r AM ly, !", . " ' ? IASMAMA�UI . , .R, ! ! l,ig Q L CALIFORNIA qg ALL-PURPOSE ry ACKNOWLEDGEMENT STATE OF CALIFORNIA %:. . COUNTY OF Los Angeles On Se o 30, Zo before me, IN Jai DATE NAME,TITLE OF OFFICER-E!.G.,"JANE OE, NOTARY PUBLIC" personally appeared, Andirey Capac. 3-kven 0hren , 6'6rd W, La�(, personally known to me (or proved to me on the basis of satisfactory evidence)to be the person(s) whose name(s) subscribed to the within instrument and acknowledged to me thatbe/she Ell they executed the same in his/lief/their authorized capacity(ies), and that by beher/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s)acted, M.- executed the instrument. F. MARIA E.B=OSA TN ESS my hand and official seal. �\� 1 r '70 ia�., W1 COMM. M Notary California C. LOS ANGELES COUNTY Z MY COMM.UP.Feb 27,2006 (SEAL) yg NOTARY PUBLIC SIGNATURE OPTIONAL INFORMATIONIt A 4k M. . TITLE OR TYPE OF DOCUMENT U DATE OF DOCUMENT NUMBER OF PAGES SIGNER(S)OTHER THAN NAMED ABOVE . ..... :1M =l21I ' i, Ai1 14lh EXHIBIT "A" CONDITIONS OF TENTATIVE MAP APPROVAL APPLICABLE TO PROJECT STREETS 1. Any improvements within the street right-of-way require a City of Palm Springs Encroachment Permit. 2. Submit street improvement plans prepared by a Registered Civil Engineer to the Engineering Department.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, IF applicable: 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. 3. Developershall obtain,forthe City, an emergency vehicle access easementacross the adjacent property identified by Assessor's Parcel Number(APN)505-283-017. Developer shall be responsible for providing a legal description and exhibit of the access easement prepared by a licensed Land Surveyor or Civil Engineer, acceptable to the Fire Chief and the City Engineer. The access easement shall be executed by the property owner(s) of APN 505-283-017 and submitted to the City for approval and recordation with the County Recorder priorto approval of the Final Map. PRESCOTT CIRCLE SOUTHEAST 4. Construct a 6 inch curb and gutter, 18 feet NORTH of centerline along the entire frontage per City of Palm Springs Standard Drawing No. 200. 5. Construct a minimum 24 foot wide driveway approach at the west side for the property in accordance with City of Palm Springs Standard Drawing No. 201. No gated entrance is allowed for this project. 6. Construct a minimum 10 foot wide driveway approach at the east side of the property in accordance with City of Palm Springs Standard Drawing No. 201. 7. Construct a modified driveway approach to accommodate bay parking stalls along the PRESCOTT Cl RCLE SOUTH EAST frontage per City of Palm Springs Standard Drawing No.201 (See Note 5 and Section A-A for depressed top of curb).The stalls shall be located completely behind the property line and shall be a minimum of 19 feet in length. 13 8. Construct a minimum 8 foot wide sidewalk behind the curb along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 210. 9. Remove and replace existing pavement with 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 clean sawcut edge of existing pavement along the entire frontage in accordance with City of Palm Springs Standard Drawing No. 110 and 305. The pavement section shall be designed, using"R"values, by a licensed Soils Engineer and submitted to the City Engineer for approval. SANITARY SEWER 10. Connect all sanitary facilities to the City sewer system. Lateral shall not be connected at manhole. GRADING 11. 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. 12, Submit cut and fill quantities to City Engineer to determine if a Grading Plan is required. If required, the Grading Plan shall be prepared by a Registered Professional and submitted to the Engineering Department for plan check.Grading plan shall be submitted to the Planning Department for comments prior to submittal to the Engineering Department.A PM 10 (dust control) Plan shall be submitted to and approved by the Building Division 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. Copy of Planning Department comments regarding the grading plan. 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 Hydrology Study/Report, IF required by these conditions. 13. Drainage swales shall be provided adjacentto all curbs and sidewalks-3'wide and 6" deep - to keep nuisance water from entering the public streets, roadways, or gutters. 14. The area in which this project is situated is indicative of desert soil conditions found in many areas of Palm Springs. The Engineering Department does not require a soils report.This does not mean that subterranean conditions unknown at this time may not affect construction done on this site. 14 15. Contact the Building Department to get information regarding the preparation of the PM10 (dust control) Plan requirements. 16. 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 a grading plan and involving the import or export of soil 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) DRAINAGE 17. The developer shall accept all stormwater runoff passing through and falling onto the site and conductthis runoff to an approved drainage structure(if available). On- site retention/detention or other facilities approved by the City Engineer shall be required if off-site drainage structures are unavailable or cannot contain the increased stormwater runoff generated by the development of the site. Provide a hydrology study to determine if the increased stormwater runoff due to development of the site exceeds the capacity of offsite drainage structures (if any exist), and to determine required stromwater runoff mitigation measures for this project. 18. The project is subject to flood control and drainage implementation fees. The acreage drainage fee at the present time is$9,212.00 per acre per Resolution No. 15189. Fees shall be paid prior to issuance of a building permit. ON-SITE 19, The minimum pavement section for all on-site streets/parking areas shall be 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. The pavement section shall be designed, using "R" values, determined by a licensed Soils Engineer and submitted with the Fine Grading Plan to the City Engineer for approval. GENERAL 20. Any utility cuts in the existing off-site pavement made by this development shall receive trench replacement pavement to 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. 21. All existing and proposed utility lines that are less than 35 kV on/or adjacent to this project shall be undergrounded. The location and size of the existing overhead facilities shall be provided to the Engineering Department 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 priorto issuance of Certificate of Occupancy. 15 22. All proposed utility lines on/or adjacent to this project shall be undergrounded prior to issuance of a Certificate of Occupancy. 23. All existing utilities shall be shown on the grading/street plans. The existing and proposed service laterals shall be shown from the main linetothe property line.The approved original grading/street plans shall be as-built and returned to the City of Palm Springs Engineering Department prior to issuance of the certificate of occupancy. 24. The developer is advised to contact all utility purveyors fordetailed requirements for this project at the earliest possible date. 25. The developershall take every precaution needed to"Protect-in-Place"any existing Whitewater Mutual Water Company water line(s) that may traverse his project. 26. Nothing shall be constructed or planted in the corner cut-off area of any driveway which does or will exceed the height required to maintain an appropriate sight distance per City of Palm Springs Zoning Code 93.02.00 D. 27. All proposed 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 28. The Title Report prepared for subdivision guarantee for the subject property, the traverse closures for the existing parcel and all lots created therefrom, and copies of record documents shall be submitted with the Final Map to the Engineering Department. 29. The Final Map shall be prepared by a licensed Land Surveyor or qualified Civil Engineer and submitted to the Engineering Department for review. Submittal shall be made prior to issuance of grading or building permits. TRAFFIC 30. The developer shall provide a minimum of48 inches of sidewalk clearance around all street furniture, fire hydrants and other above-ground facilities for handicap accessibility. The developer shall provide same through dedication of additional right-of-way and widening of the sidewalk or shall be responsible for the relocation of all existing traffic signal/safety light poles, conduit, pull boxes and all appurtenances located on the PRESCOTT CIRCLE SOUTHEAST frontages of the subject property. 31. Construction signing, lighting and barricading shall be provided foron 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. 32. This property is subject to the Transportation Uniform Mitigation Fee based on the RESIDENTIAL MUTLIFAMILY ITE Code B land use. 16 FOOTHILL INDEPENDENT BANK MEMBER FDIC 510 SOUTH GRAND AVENUE GLENDORA, CALIFORNIA 91741 (626) 963-8551 0 (909)599-9351 FAX (626) 914-0731 IRREVOCABLE LETTER OF CREDIT Faithful Performance Date of Issue: October 2, 2002 Our Irrevocable Standby Credit Number: 02-81-13751A Date of Expiry: October 2, 2003 Place of Expiry: At our Counters Applicant: Babalu, LLC _ Beneficiary: City of Palm Springs =-' P.O. Box 2743 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263-2743 Amount: USD $71,008.00 U.S. DOLLARS Foothill Independent Bank (Issuer) hereby establishes in favor of Beneficiary this Irrevocable Letter of Credit No. 02-81-13751A available with Foothill Independent Bank) by payment of Beneficiary's draft at sight drawn on Foothill Independent Bank accompanied by a statement from Beneficiary executed by a person purporting to be the City Manager or the City Engineer of Beneficiary or authorized agent thereof in one or both of the forms set forth in Exhibit T attached hereto. Drafts drawn under this Letter of Credit must bear the clause "Drawn" under Foothill Independent Bank Letter of Credit No. 02-81-13751A dated October 2, 2002. Each draft presented hereunder must be accompanied by this original credit for Foothill Independent Bank's endorsement thereon of the amount of such draft. The documents must be forwarded to Foothill Independent Bank at Issuer's address: 510 S. Grand Avenue, Glendora, CA 91741. Foothill Independent Bank shall have no duty to and shall not investigate into the veracity of any certification to be given under the terms of this Letter of Credit, but shall be entitled to rely solely upon receipt of such certification in permitting draws under this Letter of Credit. Applicant's L/C 02-81-13751A Page 2 sole recourse in the event of any false certification by the Beneficiary shall be against Beneficiary and there shall be no recourse against Foothill Independent Bank, provided that Foothill Independent Bank has complied with its obligations under this Letter of Credit. This Letter of Credit shall be automatically extended, without amendment, for an additional period or periods up to twelve (12) months from the present expiration date, unless not less than thirty (30) days prior to any expiration date, Foothill Independent Bank shall notify Beneficiary in writing that either Foothill Independent Bank or Applicant elected not to renew or extend this Letter of Credit for such additional period, nor has Applicant procured a replacement letter of credit, at which time Beneficiary may draw against this Letter of Credit by presenting its draft and certification as stated above. This credit is subject to the Uniform Customs and Practice for Documentary Credits (1983 Revision), International Chamber of Commerce Publication No. 400, and engages us in accordance with the terms hereof. Sincerely, Joe Cecala Lori Lake Senior Vice President Vice President Chief Credit Officer Loan Administrator EXHIBIT"1" EXAMPLES OF CERTIFICATION To: Issuer Re: LETTER OF CREDIT NO. dated The undersigned hereby represents, warrants and certifies as follows: (ALT 1) ( ) Beneficiary is entitled to draw under this Letter of Credit by reason of a breach or default by Applicant in payment or performance under that certain Subdivision Improve- ment Agreement dated by and between Applicant and Beneficiary, (ALT 2) ( ) Applicant has failed to deliver to Beneficiary either evidence of renewal of this Letter of Credit or a replacement letter of credit and Beneficiary is therefore entitled to draw under this Letter of Credit by reason thereof. CITY OF PALM SPRINGS, CALIFORNIA City Manager City Engineer FOOTHILL IINDEPENDINT 6"AP+K MEMBER FDIC 510 SOUTH GRAND AVENUE GLENDORA, CALIFORNIA 91741 (626)963-8551 e (909) 599-9351 FAX(626)914-0731 IRREVOCABLE LETTER OF CREDIT Labor and Material Date of Issue: October 2, 2002 Our Irrevocable Standby Credit Number: 02-81-13751 B Date of Expiry: October 2, 2003 Place of Expiry: At our Counters Applicant: Babalu, LLC Beneficiary: City of Palm Springs P.O. Box 2743 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263-2743 Amount: USD $35,504.13 U.S. DOLLARS Foothill Independent Bank (Issuer) hereby establishes in favor of Beneficiary this Irrevocable Letter of Credit No. 02-81-13751B available with Foothill Independent Bank) by =.) payment of Beneficiary's draft at sight drawn on Foothill Independent Bank accompanied by a statement from Beneficiary executed by a person purporting to be the City Manager or the City Engineer of Beneficiary or authorized agent thereof in one or both of the forms set forth in Exhibit I "I" attached hereto. Drafts drawn under this Letter of Credit must bear the clause "Drawn" under Foothill Independent Bank Letter of Credit No. 02-81-13751 B dated October 2, 2002. Each draft presented hereunder must be accompanied by this original credit for Foothill Independent Bank's endorsement thereon of the amount of such draft. The documents must be forwarded to Foothill Independent Bank at Issuer's address: 510 S. Grand Avenue, Glendora, CA 91741. Foothill Independent Bank shall have no duty to and shall not investigate into the veracity of any certification to be given under the terms of this Letter of Credit, but shall be entitled to rely solely upon receipt of such certification in permitting draws under this Letter of Credit. Applicant's L/C 02-81-13751B Page 2 sole recourse in the event of any false certification by the Beneficiary shall be against Beneficiary and there shall be no recourse against Foothill Independent Bank, provided that Foothill Independent Bank has complied with its obligations under this Letter of Credit. This Letter of Credit shall be automatically extended, without amendment, for an additional period or periods up to twelve (12) months from the present expiration date, unless not less than thirty (30) days prior to any expiration date, Foothill Independent Bank shall notify Beneficiary in writing that either Foothill Independent Bank or Applicant elected not to renew or extend this Letter of Credit for such additional period, nor has Applicant procured a replacement letter of credit, at which time Beneficiary may draw against this Letter of Credit by presenting its draft and certification as stated above. This credit is subject to the Uniform Customs and Practice for Documentary Credits (1983 Revision), International Chamber of Commerce Publication No. 400, and engages us in accordance with the terms hereof. Sincerely, Joe Cecala Lori Lake Senior Vice President Vice President Chief Credit Officer Loan Administrator EXHIBIT"'I" EXAMPLES OF CERTIFICATION To: Issuer Re: LETTER OF CREDIT NO. dated The undersigned hereby represents, warrants and certifies as follows: (ALT 1) ( ) Beneficiary is entitled to draw under this Letter of Credit by reason of a breach or default by Applicant in payment or performance under that certain Subdivision Improve- ment Agreement dated by and between Applicant and Beneficiary. (ALT 2) ( ) Applicant has failed to deliver to Beneficiary either evidence of renewal of this Letter of Credit or a replacement letter of credit and Beneficiary is therefore entitled to draw under this Letter of Credit by reason thereof. CITY OF PALM SPRINGS, CALIFORNIA City Manager City Engineer FOOTHILL INDEPENDENT BANK MEMBER FDIC 510 SOUTH GRAND AVENUE GLENDORA, CALIFORNIA 91741 (626)963-8551 (909) 599-9351 o FAX (626)914-0731 IRREVOCABLE LETTER OF CREDIT Faithful Performance for Setting Monuments Date of Issue: October 2, 2002 Our Irrevocable Standby Credit Number: 02-81-13751C Date of Expiry: October 2, 2003 Place of Expiry: At our Counters Applicant: Babalu, LLC _ Beneficiary: City of Palm Springs P.O. Box 2743 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263-2743 L _ Amount: USD $5,000.00 U.S. DOLLARS Foothill Independent Bank (Issuer) hereby establishes in favor of Beneficiary this Irrevocable Letter of Credit No. 02-81-13751C available with Foothill Independent Bank) by payment of Beneficiary's draft at sight drawn on Foothill Independent Bank accompanied by a statement from Beneficiary executed by a person purporting to be the City Manager or the City Engineer of Beneficiary or authorized agent thereof in one or both of the forms set forth in Exhibit "I' attached hereto. Drafts drawn under this Letter of Credit must bear the clause "Drawn" under Foothill Independent Bank Letter of Credit No. 02-81-13751C dated October 2, 2002. Each draft presented hereunder must be accompanied by this original credit for Foothill Independent Bank's endorsement thereon of the amount of such draft. The documents must be forwarded to Foothill Independent Bank at Issuer's address: 510 S. Grand Avenue, Glendora, CA 91741. Foothill Independent Bank shall have no duty to and shall not investigate into the veracity of any certification to be given under the terms of this Letter of Credit, but shall be entitled to rely solely upon receipt of such certification in permitting draws under this Letter of Credit. Applicant's L/C 02-81-13751 C Page 2 sole recourse in the event of any false certification by the Beneficiary shall be against Beneficiary and there shall be no recourse against Foothill Independent Bank, provided that Foothill Independent Bank has complied with its obligations under this Letter of Credit. This Letter of Credit shall be automatically extended, without amendment, for an additional period or periods up to twelve (12) months from the present expiration date, unless not less than thirty (30) days prior to any expiration date, Foothill Independent Bank shall notify Beneficiary in writing that either Foothill Independent Bank or Applicant elected not to renew or extend this Letter of Credit for such additional period, nor has Applicant procured a replacement letter of credit, at which time Beneficiary may draw against this Letter of Credit by presenting its draft and certification as stated above. This credit is subject to the Uniform Customs and Practice for Documentary Credits (1983 Revision), International Chamber of Commerce Publication No. 400, and engages us in accordance with the terms hereof. Sincerely, Joe Cecala Lori Lake Senior Vice President Vice President Chief Credit Officer Loan Administrator EXHIBIT "1" EXAMPLES OF CERTIFICATION To: Issuer Re: LETTER OF CREDIT NO. dated The undersigned hereby represents, warrants and certifies as follows: (ALT 1) ( ) Beneficiary is entitled to draw under this Letter of Credit by reason of a breach or default by Applicant in payment or performance under that certain Subdivision Improve- ment Agreement dated by and between Applicant and Beneficiary. (ALT 2) ( ) Applicant has failed to deliver to Beneficiary either evidence of renewal of this Letter of Credit or a replacement letter of credit and Beneficiary is therefore entitled to draw under this Letter of Credit by reason thereof. CITY OF PALM SPRINGS, CALIFORNIA City Manager City Engineer