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HomeMy Public PortalAbout10) 7G TTM 72836 9913 Lower Azusa RdCity Council February 16, 2016 Page 2 of2 4. On November 13, 2014, at a noticed public hearing, the Planning Commission reviewed and approved the subdivision. 5. On January 29, 2015, the City Engineer (Transtech) advised the City that the final map prepared for the project was approved from a technical stand point. 6. On September 2, 2015 and December 21, 2015, the developer paid security deposits to guarantee street improvements required for the project. 7. On January 7, 2016, the developers signed and submitted the Subdivision Improvement Agreement. 8. On January 13, 2016 the County of Los Angeles Fire Department approved the Final Map. ANALYSIS: The tentative map for the project was approved in 2014. The project is consistent with the land use designation of the site and with the City's development standards. The final map has been reviewed and signed by Transtech, who certifies the map for technical accuracy and compliance with the Subdivision Map Act. The developer has signed the required Subdivision Improvement Agreement and paid security deposits necessary for the required street improvements. Approval of the final map will allow the developer to finalize the subdivision map and start construction. CITY STRATEGIC GOALS: Approval of final Tract Map No. 72836 will further the City's Strategic Goal of Economic Development. FISCAL IMPACT: Approval of this item will not have an impact on the City's budget for Fiscal Year (FY) 2015-16. ATTACHMENTS: A. Copy of the Subdivision Improvement Agreement B. Copy of Final Tract Map No. 72836 RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: (Document exempt from recording fees pursuant to Cal. Gov. Code § 27383) CITY OF TEMPLE CITY Attn: Bryan Cook, City Manager 970 I Las Tunas Drive Temple City, California 91780 ATTACHMENT A THIS SPACE FOR RECORDER'S USE ONLY SUBDIVISION IMPROVEMENT AGREEMENT FINAL TRACT MAP By and Between THE CITY OF TEMPLE CITY, A Municipal Corporation and SALL-CALL INVESTMENT A California Limited Liability Company DATED January 4, 2016 SUBDIVISION IMPROVEMENT AGREEMENT FINAL TRACT MAP 72836 This Subdivision Improvement Agreement ("Agreement") is entered into as of this 4th day of January, 2016 by and between the City of Temple City, a municipal corporation ("City") and Sail-Call Investment LLC ("Developer"). City and Developer are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the "Parties." RECITALS A. Developer has submitted to City an application for approval of a final tract map for real property located within City, a legal description of which is attached hereto as Exhibit "A". The tract map is identified in City records as Tract Map No. 72836. On November 13, 2014, the City conditionally approved Tract No. 72836. B. Developer has not completed all of the work or made all of the Public Improvements required by the Subdivision Map Act (Government Code sections 66410 et ~.), ("Map Act") the City Ordinances, the conditions of approval for Tract No. 72836, or other ordinances, resolutions, or policies of City requiring construction of improvements in conjunction with the subdivision ofland. C. Pursuant to City Ordinances and the applicable provisions of the Map Act, Developer and City enter into this Agreement for the timely construction and completion of the Public Improvements and the furnishing of the security therefor, acceptable to the City Engineer and City Attorney, for Tract No. 72836. D. City has authority to enter into this Subdivision Improvement Agreement pursuant to Government Code Sections 66499-66499.10. E. Pursuant to Government Code Section 66499, Developer's execution of this Agreement and the provision of the security are made in consideration of City's approval ofthe final map for Tract No. 72836. DEFINED TERMS "Developer" shall mean Sall-Calllnvestment, a California Limited Liability Company. The term "Developer" shall also include all assignees, to the extent permitted under this Agreement, of the rights and obligations of Developer under this Agreement, and any successor-in-interest to Developer having a legal and/or equitable interest in the Property. "Estimated Costs" shall mean the City Engineer's approximation of the actual cost to construct the Public Improvements, including the replacement cost for all landscaping. "Litigation Expenses" shall mean all costs and expenses, to the extent reasonable in amount, actually and necessarily incurred by a party in good faith in the prosecution of an action or Page 1 of 15 proceeding, including, but not limited to, court costs, filing, recording, and service fees, copying costs, exhibit production costs, special media rental costs, attorneys' fees, fees for investigators, witness fees (both lay and expert), travel expenses, deposition and transcript costs and any other cost or expense, the award of which a court of competent jurisdiction may determine to be just and reasonable. "Map Act" shall mean the Subdivision Map Act, Government Code Sections 66410 et seq. "Property" shall mean the all of the real property contained within the boundaries of Tract Map No. 72836 located in the City of Temple City, California, as is more particularly described in the legal description and tract diagram attached hereto and incorporated hereby by reference at Attachment "A". "Public Improvements" shall include, but not be limited to, all grading, roads, streets, paving, curbs and gutters, sidewalks, paseos, pathways, trails, sanitary sewers, utilities, storm drains, detention and retention basins and other drainage facilities, traffic controls, landscaping, street lights and all other facilities required to be constructed and dedicated to the City or other public entity as conditions of approval of Tentative Tract Map No. 72836 and as shown in detail on the plans, and specifications which have been approved by the City and incorporated into Tract Map No. 72836. The Pmties agree that the Public Improvements to be completed by Developer are more specifically described in the diagram or plan attached hereto and incorporated herein by reference as Attachment "B. Notwithstanding, Attachment "B", Developer shall remain obligated to construct and complete all of the Public Improvements required as conditions of approval for Tentative Tract Map 72836. "Required Insurance" shall mean the insurance required to be maintained by Developer under Section 17. "Security" shall mean surety bonds in the amounts and under the terms of Section 12 or other security approved by City Engineer or City Attorney. "Tract No 72836." shall mean the final map prepared and approved by the City tor tentative tract map no. 72836. "Warranty" shall mean the one-year period following completion of the Public Improvements by Developer and the acceptance ofthe Public Improvements by the City in which Developer warrants and guarantees all Public Improvements. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and covenants made by the parties and contained here and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows: I. EFFECTIVENESS. This Agreement shall not be effective unless and until all four (4) of the following conditions are satisfied in the order provided: 1.1 Security. Developer provides City with the Security ofthe type and in the amounts required by this Agreement; Pagc2 of15 1.2 Final Map and Agreement Approval. The City Council of the City ("City Council") approves the final map for Tract No. 72836 and this Agreement; 1.3 Record Agreement. Developer and City execute the Agreement and City records this Agreement in the Recorder's Office of the County of Los Angeles; and 1.4 Record Final Map. Developer records the final map for Tract No. 72836 in the Recorder's Office of the County of Los Angeles. If the above described conditions are not satisfied in the order, manner and within the time provided under this Agreement, this Agreement shall automatically terminate without need of further action by either City or Developer. 2. PUBLIC IMPROVEMENTS. Developer shall construct or have constructed at its own cost, expense, and liability the Public Improvements, as defined herein, within the time and in the manner required under this Agreement. Construction of the Public Improvements shall include any transitions and/or other incidental work deemed necessary for drainage or public safety. The Developer shall be responsible for the replacement, relocation, or removal of any component of any irrigation water or sewer system in conflict with the construction or installation ofthe Public Improvements. Such replacement, relocation, or removal shall be performed to the complete satisfaction of the City Engineer and the owner of such water or sewer system. Developer further promises and agrees to provide all equipment, tools, materials, labor, tests, design work, and engineering services necessary or required by City to fully and adequately complete the Public Improvements. 2.1 Prior Partial Construction of Pub lie Improvements. Where construction of any Public Improvements has been partially completed prior to this Agreement, Developer agrees to complete such Public Improvements or assure their completion in accordance with this Agreement. 2.2 Permits; Notices; Utility Statements. Prior to commencing any work, Developer shall, at its sole cost, expense, and liability, obtain all necessary permits and approvals and give all necessary and incidental notices required for the lawful construction of the Public Improvements and performance ofDeveloper's obligations under this Agreement. Developer shall conduct the work in full compliance with the regulations, rules, and other requirements contained in any permit or approval issued to Developer. Prior to commencing any work, Developer shall file a written statement with the City Clerk and the City Engineer, signed by Developer and each utility which will provide utility service to the Property, attesting that Developer has made all deposits legally required by the utility for the extension and provision of utility service to the Property. 2.3 Pre-approval of Plans and Specifications. Developer is prohibited fi·om commencing work on any Public Improvement until all plans and specifications for such Public Improvement have been submitted to and approved by the City Engineer, or his or her designee. Approval by the City Engineer shall not relieve Developer fi·om ensuring that all Public Improvements conform with all other requirements and standards set forth in this Agreement. 2.4 Quality of Work; Compliance With Laws and Codes. The construction plans and specifications for the Public Improvements shall be prepared in accordance with all Page3 oflS applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements. The Public Improvements shall be completed in accordance with all approved maps, plans, specifications, standard drawings, and special amendments thereto on file with City, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements applicable at the time work is actually commenced. 2.5 Standard of Performance. Developer and its contractors, if any, shall perform all work required to construct the Public Improvements under this Agreement in a skillfi.JI and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Developer represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work. Developer warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the work, and that such licenses, permits, qualifications and approvals shall be maintained throughout the term of this Agreement. 2.6 Alterations to Improvements. All work shall be done and improvements made and completed as shown on approved plans and specifications, and any subsequent alterations thereto. If during the course of construction and installation of the Public Improvements it is determined that the public interest requires alterations in the Public Improvements, Developer shall undertake such design and construction changes as may be reasonably required by City. Any and all alterations in the plans and specifications and the Public Improvements to be completed may be accomplished without giving prior notice thereof to Developer's surety forth is Agreement. 2.7 Other Obligations Referenced in Conditions of Tentative Map Approval. In addition to the foregoing, Developer shall satisfy all of the conditions of approval on the tentative map for the Prope1ty. The conditions of approval which have not been satisfied prior to the date of this Agreement are identified on Exhibit "D" hereto. 3. MAINTENANCE OF PUBLIC IMPROVEMENTS AND LANDSCAPING. City shall not be responsible or liable for the maintenance or care of the Public Improvements until City formally approves and accepts them in accordance with its policies and procedures. City shall exercise no control over the Public Improvements until approved and accepted. Any use by any person of the Public Improvements, or any portion thereof, shall be at the sole and exclusive risk of the Developer at all times prior to City's acceptance of the Public Improvements. Developer shall maintain all the Public Improvements in a state of good repair until they are completed by Developer and approved and accepted by City, and until the security for the performance of this Agreement is released. Maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters, sidewalks, signals, parkways, water mains, and sewers; maintaining all landscaping in a vigorous and thriving condition reasonably acceptable to City; removal of debris fi·mn sewers and storm drains; and sweeping, repairing, and maintaining in good and safe condition all streets and street improvements. It shall be Developer's responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by City. If Developer fails to properly prosecute its maintenance obligation under this section, City may do all work necessary for such maintenance and the cost thereof shall be the responsibility of Developer and its surety under this Agreement. City shall not be responsible or Page 4 of IS " liable for any damages or injury of any nature in any way related to or caused by the Public Improvements or their condition prior to acceptance. 4. CONSTRUCTION SCHEDULE. Unless extended pursuant to this Section 4.1 of this Agreement, Developer shall fully and adequately complete or have completed the Public Improvements within 2 years (24 months) following approval of the final map for Tract No. 72836 or prior to the final date of the constmction permits, whichever occurs first. 4.1 Extensions. City may, in its sole and absolute discretion, provide Developer with additional time within which to complete the Public Improvements. It is understood that by providing the Security required under Section 12.0 et ~�of this Agreement, Developer and its surety consent in advance to any extension of time as may be given by City to Developer, and waives any and all right to notice of such extension(s). Developer's acceptance of an extension of time granted by City shall constitute a waiver by Developer and its surety of all defense of laches, estoppel, statutes of limitations, and other limitations of action in any action or proceeding filed by City following the date on which the Public Improvements were to have been completed hereunder. In addition, as consideration for granting such extension to Developer, City reserves the right to review the provisions of this Agreement, including, but not limited to, the construction standards, the cost estimates established by City, and the sufficiency of the improvement security provided by Developer, and to require adjustments thereto when warranted according to City's reasonable discretion. 4.2 Accrual of Limitations Period. Any limitations period provided by law related to breach of this Agreement or the terms thereof shall not accrue until Developer has provided the City Engineer with written notice of Developer's intent to abandon or otherwise not complete required or agreed upon Public Improvements. 5. GRADING. Developer agrees that any and all grading done or to be done in conjunction with construction of the Public Improvements or development of Tract No. 72836 shall conform to all federal, state, and local laws, ordinances, regulations, and other requirements, including City's grading regulations. All grading, landscaping, and construction activities shall be performed in a manner to control erosion and prevent flooding problems. The City Engineer shall have the authority to require erosion plans to prescribe reasonable controls on the method, manner, and time of grading, landscaping, and construction activities to prevent nuisances to surrounding propetties. Plans shall include without limitation temporary drainage and erosion control requirements, dust control procedures, restrictions on truck and other construction traffic routes, noise abatement procedures, storage of materials and equipment, removal of garbage, trash, and refuse, securing the job site to prevent injury, and similar matters. In order to prevent damage to the Public Improvements by improper drainage or other hazards, the grading shall be completed in accordance with the time schedule for completion ofthe Public Improvements established by this Agreement, and prior to City's approval and acceptance of the Public Improvements and release of the Security as set forth in Section 12.0 et ~�of this Agreement. 6. UTILITIES. Developer shall provide utility services, including water, sewer, power, gas, and telephone service to serve each parcel, lot, or unit of land within Tract No. 72836 in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the regulations, schedules and fees of the utilities or agencies providing such services. Except for commercial or industrial properties, Developer shall also provide cable Page 5 of IS improvements until all of the Public Improvements are completed by Developer and approved by City. Issuance by City of occupancy permits for any buildings or structures located on the Property shall not be construed in any manner to constitute City's acceptance or approval of any Public Improvements. 10.3 Developer's Obligation to Provide As-Built or Record Drawings. Notwithstanding the foregoing, City may not accept any Public Improvements unless and until Developer provides one (I) set of "as-built" or record drawings or plans to the City Engineer for all such Public Improvements. The drawings shall be ce1tified and shall reflect the condition of the Public Improvements as constructed, with all changes incorporated therein. II. WARRANTY AND GUARANTEE. Developer hereby warrants and guarantees all Public Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement, including the maintenance of all landscaping within the Property in a vigorous and thriving condition reasonably acceptable to City, for a period of one (I) year following completion of the work and acceptance by City. During the Warranty, Developer shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the Public Improvements, in accordance with the current ordinances, resolutions, regulations, codes, standards, or other requirements of City, and to the approval of the City Engineer. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of Developer and its surety. As to any Public Improvements which have been repaired, replaced, or reconstructed during the Warranty, Developer and its surety hereby agree to extend the Warranty for an additional one (I) year period following City's acceptance of the repaired, replaced, or reconstructed Public Improvements. Nothing herein shall relieve Developer from any other liability it may have under federal, state, or local law to repair, replace, or reconstruct any Public Improvement following expiration of the Warranty or any extension thereof. Developer's warranty obligation under this section shall survive the expiration or termination of this Agreement. 12. SECURITY; SURETY BONDS. Prior to City's approval and execution of this Agreement, Developer shall provide City with surety bonds in the amounts and under the terms set forth below. The amount ofthe Security shall be based on the City Engineer's Estimated Costs. If City determines at any time prior to Developer's completion of the Public Improvements under Section 4 [Construction Schedule], in its sole and absolute discretion, that the Estimated Costs have changed, Developer shall adjust the Security in the amount requested by City. Developer's compliance with this provision (Section 12.0 et ~-)shall in no way limit or modify Developer's indemnification obligation provided in Section 16.0 of this Agreement. 12.1 Performance Bond. To guarantee the faithful performance of the Public Improvements and all the provisions of this Agreement, to protect City if Developer is in default as set fmth in Section 18.0 tel~-of this Agreement, and to secure Developer's one-year guarantee and warranty of the Public Improvements, including the maintenance of all landscaping in a vigorous and thriving condition, Developer shall provide City a faithful performance bond in the amount ofthirthysixthousandonehundredseventytwo ($36, 172), which sum shall be not less than one hundred percent (I 00%) of the Estimated Costs. 12.2 Partial Release. The City Council may, in its sole and absolute discretion and upon recommendation of the City Engineer, pmtially release a portion or pmtions of the Page 7 oflS Security provided under this section as the Public Improvements are accepted by City, provided that Developer is not in default on any provision of this Agreement or condition of approval for Tract No. 72836, and the total remaining Security is not less than twenty-five percent (25%) of the Estimated Costs. All Security provided under this section shall be released at the end of the Warranty period, or any extension thereof as provided in Section 11.0 of this Agreement, provided that Developer is not in default on any provision of this Agreement or condition of approval for Tract No. 72836. 12.3 Labor & Material Bond. To secure payment to the contractors, subcontractors, laborers, material men, and other persons furnishing labor, materials, or equipment for performance of the Public Improvements and this Agreement, Developer shall provide City a labor and materials bond in the amount of thi1thysixthousandonehundrcdseventytwo ($36,172), which sum shall not be less than one hundred percent (I 00%) of the Estimated Costs. The Security provided under this section may be released by written authorization of the City Engineer after six (6) months from the date City accepts the final Public Improvements. The amount of such Security shall be reduced by the total of all stop notice or mechanic's lien claims of which City is aware, plus an amount equal to twenty percent (20%) of such claims for reimbursement of City's anticipated administrative and legal expenses arising out of such claims. 12.4 Additional Requirements. The surety for any surety bonds provided as Security shall have a current A.M. Best's rating of no less than A: VIII, be a bank or insurance company licensed to transact surety business in California, and shall be satisfactory to City. As part of the obligation secured by the Security and in addition to the face amount of the Security, the Developer or its surety shall secure the costs and reasonable expenses and fees, including reasonable attorney's fees and costs, incurred by City in enforcing the obligations of this Agreement. The Developer and its surety stipulate and agree that no change, extension oftime, alteration, or addition to the terms of this Agreement, the Public Improvements, or the plans and specifications for the Public Improvements shall in any way affect its obligation on the Security. 12.5 Form of Security. The evidence of the Security shall be provided on the forms set fmth in Attachment "C", unless other forms are deemed acceptable by the City Engineer and the City Attorney, and when such forms are completed to the satisfaction of City, the forms and evidence of the Security shall be attached hereto as Attachment "C" and incorporated herein by this reference. 12.6 Developer's Liability. While no action of Developer shall be required in order for City to realize on its security under any Security instrument, Developer 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 under 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, Developer shall be personally liable for performance under this Agreement and for payment ofthe cost of the labor and materials for the improvements required to be constructed or installed hereby and shall, within ten (I 0) days after written demand therefor, deliver to City such substitute Security as City shall require satisfying the requirements in this Section 12. 13. MONUMENT SECURITY. Prior to City's execution of this Agreement, to guarantee payment to the engineer or surveyor for the setting of all subdivision boundaries, lot PageS of IS corners, and street centerline monuments for Tract No. 72836 in compliance with the applicable provisions of City's Municipal and/or Development Code ("Subdivision Monuments"), Developer shall deposit cash with City in the amount ofzero Dollars ($0), which sum shall not be less than one hundred percent (100%) of the costs of setting the Subdivision Monuments as determined by the City Engineer. Said cash deposit may be released by written authorization ofthe City Engineer after all required Subdivision Monuments are accepted by the City Engineer, City has received written acknowledgment of payment in full from the engineer or surveyor who set the Subdivision Monuments, and provided Developer is not in default of any provision of this Agreement or condition of approval for Tract No. 72836. 14. LIEN. To secure the timely performance of Developer's obligations under this Agreement, including those obligations for which security has been provided pursuant to Sections 12.0 et ~·and 13.0 of this Agreement, Developer hereby creates in favor of City a lien against all portions of the Property not dedicated to City or some other governmental agency for a public purpose. As to Developer's default on those obligations for which security has been provided pursuant to Sections 12.0 et ~· and 13.0 of this Agreement, City shall first attempt to collect against such security prior to exercising its rights as a contract lienholder under this section. 15. SIGNS AND ADVERTISING. Developer understands and agrees to City's ordinances, regulations, and requirements governing signs and advertising structures. Developer hereby agrees with and consents to the summary removal by City, without notice to Developer, of all signs or other advertising structures erected, placed, or situated in violation of any City ordinance, regulation, or other requirement. Removal shall be at the expense of Developer and its surety. Developer and its surety shall indemnify and hold City fi·ee and harmless from any claim or demand arising out of or incident to signs, advertising structures, or their removal. 16. INDEMNIFICATION. Developer shall defend, indemnifY, and hold harmless City, its elected officials, officers, employees, and agents fi·om any and all actual or alleged claims, demands, causes of action, liability, loss, damage, or injury, to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state, or local governmental body or agency, arising out of or incident to any acts, omissions, negligence, or willful misconduct of Developer, its personnel, employees, agents, or contractors in connection with or arising out of construction or maintenance of the Public Improvements, or performance of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys' fees, and related costs or expenses, and the reimbursement of City, its elected officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of them. This indemnification excludes only such portion of any claim, demand, cause of action, liability, loss, damage, penalty, fine, or injury, to property or persons, including wrongful death, which is caused solely and exclusively by the gross negligence or willful misconduct of City as determined by a court or administrative body of competent jurisdiction. Developer's obligation to indemnify City shall survive the expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, officers, employees, or agents. 17. INSURANCE. 17.1 Tvoes; Amounts. Developer shall procure and maintain, and shall require its contractors to procure and maintain, during construction of any Public Improvement pursuant Page 9 of 15 to this Agreement, insurance of the types and in the amounts described below. If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Agreement or be no less than two times the specified occurrence limit. 17.1.1 General Liability. Developer and its contractors shall procure and maintain occurrence version general liability insurance, or equivalent form, with a combined single limit of not less than $3,000,000 per occurrence for bodily injury, personal it~ury, and property damage. 17.1.2 Business Automobile Liability. Developer and its contractors shall procure and maintain business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for the ownership, operation, maintenance, use, loading, or unloading of any vehicle owned, leased, hired, or borrowed by the insured or for which the insured is responsible. 17.1.3 Workers' Compensation. Developer and its contractors shall procure and maintain workers' compensation insurance with limits as required by the Labor Code of the State of California and employers' liability insurance with limits of not less than $1,000,000 per occurrence, at all times during which insured retains employees. 17.1.4 Professional Liability. For any consultant or other professional who will engineer or design the Public Improvements, liability insurance for errors and omissions with limits not less than $1,000,000 per occurrence, shall be procured and maintained for a period of five (5) years following completion of the Public Improvements. Such insurance shall be endorsed to include contractual liability. 17.2 Deductiblcs. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected officials, officers, employees, agents, and volunteers; or (b) Developer and its contractors shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses. 17.3 Additional Insured; Separation of Insureds. The Required Insurance shall name City, its elected officials, officers, employees, agents, and volunteers as additional insureds with respect to work performed by or on behalf of Developer or its contractors, including materials, parts, or equipment furnished in connection therewith. The Required Insurance shall contain standard separation of insured provisions, and shall contain no special limitations on the scope of its protection to City, its elected officials, officers, employees, agents, and volunteers. 17.4 Primaty Insurance; Waiver of Subrogation. The Required Insurance shall be primary with respect to any insurance or self-insurance programs covering City, its elected officials, officers, employees, agents, and volunteers. All policies for the Required Insurance shall provide that the insurance company waives all right of recovery by way of subrogation against City in connection with any damage or harm covered by such policy. 17.5 Certificates; Verification. Developer and its contractors shall furnish City with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The cet1ificates and endorsements for each insurance policy shall be signed by a person Page 10 oflS authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by City before work pursuant to this Agreement can begin. City reserves the right to require complete, ce1iified copies of all required insurance policies, at any time. 17.6 Term; Cancellation Notice. Developer and its contractors shall maintain the Required Insurance for the term of this Agreement and shall replace any certificate, policy, or endorsement which will expire prior to that date. All policies shall be endorsed to provide that the Required Insurance shall not be suspended, voided, reduced, canceled, or allowed to expire except on 30 days' prior written notice to City. 17.7 Insurer Rating. Unless approved in writing by City, all Required Insurance shall placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least A: VIII. 18. DEFAULT; NOTICE; REMEDIES. 18.1 Notice. If Developer neglects, refuses, or fails to fulfill or timely complete any obligation, term, or condition of this Agreement, or if City determines there is a violation of any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, City may at any time thereafter declare Developer to be in default or violation of this Agreement and make written demand upon Developer or its surety, or both, to immediately remedy the default or violation. Developer shall commence the work required to remedy the default or violation within ten (I 0) days of the written demand from the City. If the default or violation constitutes an immediate threat to the public health, safety, or welfare, City may provide the demand verbally, and Developer shall commence the required work within twenty-four (24) hours thereof. Immediately upon City's issuance of the demand to remedy the default, Developer and its surety shall be liable to City for all costs of construction and installation of the Public Improvements and all other administrative costs expenses as provided for in Section 9.0 of this Agreement. 18.2 Failure to Remedy; City Action. If the work required to remedy the noticed default or violation is not diligently prosecuted to a substantial completion acceptable to City within a reasonable time designated by the City, City may complete all remaining work, arrange for the completion of all remaining work, and/or conduct such remedial activity as in its sole and absolute discretion it believes is required to remedy the default or violation. All such work or remedial activity shall be at the sole and absolute cost, expense, and liability of Developer and its surety, without the necessity of giving any fmiher notice to Developer or surety. City's right to take such actions shall in no way be limited by the fact that Developer or its surety may have constructed any, or none of the required or agreed upon Public Improvements at the time of City's demand for performance. In the event City elects to complete or arrange for completion of the remaining work and improvements, City may require all work by Developer or its surety to cease in order to allow adequate coordination by City. Notwithstanding the foregoing, if conditions precedent for reversion to acreage can be met and if the interests of City will not be prejudiced thereby, City may also process a reversion to acreage and thereafter recover from Developer or its surety the full cost and expense incurred. 18.3 Other Remedies. No action by City pursuant to Section 18.0 ~~·of this Agreement shall prohibit City fi·om exercising any other right or pursuing any other legal or equitable remedy available under this Agreement or any federal, state, or local law. City may Pagett oftS exercise it rights and remedies independently or cumulatively, and City may pursue inconsistent remedies. City may institute an action for damages, injunctive relief, or specific performance. 19. GENERAL PROVISIONS. 19.1 Authority to Enter Agreement. Each Pmty warrants that the individuals who have signed this Agreement have the legal power, right, and authority make this Agreement and bind each respective Party. 19.2 Cooperation; Further Acts. The Pmties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 19.3 Construction; References; Captions. It being agreed the Pmties or their agents have participated in the preparation of this Agreement, the language ofthis Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing lime, days, or period for performance shall be deemed calendar days and not work days. All references to Developer include all personnel, employees, agents, and subcontractors of Developer, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 19.4 Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice: CITY: City ofTemple City Attn: Bryan Cook, City Manager 970 I Las Tunas Drive Temple City, California 91780 DEVELOPER: SALL-CAL INVESTMENT, LLC Attn: Sharon Wei 5593 Angelus Ave San Gabriel, Ca 91776 Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as ofthe date and time sent provided the original is contemporaneously deposited with United States Postal Service and delivered by regular mail; by messenger, as of the date delivered; and by U.S. Mail first class postage prepaid, as of72 hours after deposit in the U.S. Mail. 19.5 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Pmties. Page 12 oflS 19.6 Waiver. City's failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or City's waiver of any breach of this Agreement, shall not relieve Developer of any of its obligations under this Agreement, whether ofthe same or similar type. The foregoing shall be true whether City's actions are intentional or unintentional. Developer agrees to waive, as a defense, counterclaim or set off, any and all defects, irregularities or deficiencies in the authorization, execution or performance of the Public Improvements or this Agreement, as well as the laws, rules, regulations, ordinances or resolutions of City with regards to the authorization, execution or performance of the Public Improvements or this Agreement. 19.7 Assignment or Transfer of Agreement. Developer shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of City. Any attempt to do so shall be null and void, and any assignee, hypothecatee, or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer. Unless specifically stated to the contrary in City's written consent, any assignment, hypothecation, or transfer shall not release or discharge Developer fi·om any duty or responsibility under this Agreement. 19.8 Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Pmties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation. 19.9 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 19.10 Invalidity; Severability. If any pmtion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 19.11 Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties' activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Los Angeles, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other cou1t or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a pmty to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Developer expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394. 19.12 Attorneys' Fees and Costs. If any arbitration, lawsuit, or other legal action or proceeding is brought by one Party against the other Party in connection with this Agreement or the Property, the prevailing party, whether by final judgment or arbitration award, shall be entitled to and recover fi·om the other party all Litigation Expenses. Any judgment, order, or award entered in such legal action or proceeding shall contain a specific provision providing for the recovery of Litigation Expenses. Page 13 of 15 19.13 Relationship Between The Parties. The Parties hereby mutually agree that neither this Agreement, any map related to Tract No. 72836, nor any other related entitlement, permit, or approval issued by City for the Prope1ty shall operate to create the relationship of pmtnership, joint venture, or agency between City and Developer. Developer's contractors and subcontractors are exclusively and solely under the control and dominion of Developer. Nothing herein shall be deemed to make Developer or its contractors an agent or contractor of City. 19.14 Counterparts. This Agreement may be executed in counterpart originals, which taken together, shall constitute one and the same instrument. 19.15 Effective Date of Agreement. This Agreement shall not become effective until the date it has been formally approved by the City and executed by the appropriate authorities of City and Developer. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. ATTEST: By: .~~~~~~---Peggy Kuo, City Clerk APPROVED AS TO FORM By: .~~~~~~------ Eric S. Vail, City Attorney CITY OF TEMPLE CITY By: ----ccc------cc--~c-c--:c-:--­ Bryan Cook, City Manager Page 14 of15 SALL-CAL INVESTMENT ..---~ . .....-~:;_;; I _./ I I By: C: <'~:"-/-~ .c>~~":, ~-Shal'on Wei--/ / --~- Its: Authorized to sign on behalf of the company NOTE: DEVELOPER'S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S BUSINESS ENTITY. Page 15 oflS EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY TRACT NO. 72836 IN THE CITY OF TEMPLE CITY, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA BEING A SUBDIVISION OF A PORTION OF LOT 12 OF TRACT NO. 9848, AS PER MAP RECORDED IN BOOK 137, PAGES 67 AND 68 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY EXHIBIT "B" LIST OF PUBLIC IMPROVEMENTS TRACT NO. 72836 PUBLIC IMPROVEMENTS Separate plans for improvements within the public right-of-way are not required. However, prior to issuance of a building and/or grading permit, all necessary improvements within the public right-of-way shall be shown on building or grading plans in accordance with established City standards or as directed by the City Engineer and/or his/her designee. The following are required for off-site improvements. The City Engineer may accept payment of in-lieu fees in lieu of the applicant completing some or all of the off- site improvements. 1. Install new driveway approach in accordance with SPPWC Standard Plan 110-2, and as directed by the City Engineer or his/her designee. 2. Relocate existing SCE power pole to be removed for the proposed driveway. 3. Install new concrete sidewalk along the length of the property frontage in accordance with SPPWC Standard Plan 113-2, or to match existing adjacent curb and gutter, and as directed by the City Engineer and/or his/her designee. 4. Remove and replace broken and off grade curb and gutter along the length of the property frontage in accordance with SPPWC Standard Plan 120-2, and as directed by the City Engineer or his/her designee. 5. Rehabilitate existing AC street pavement along the length of the property frontage to the centerline of the street as indicated below, and as directed by the City Engineer or his/her designee: a. Grind existing pavement to a depth of 2" and overlay new AC. 6. Underground all services to the property. EXHIBIT "C" SURETY BONDS AND OTHER SECURITY TRACT NO. 72836 As evidence of understanding the provisions contained in this Agreement, and of the Developer's intent to comply with same, the Developer has submitted the below described security in the amounts required by this Agreement, and has affixed the appropriate signatures thereto: PERFORMANCE BOND PRINCIPAL AMOUNT: $ --'3'--'6-'-17'-"2'--------- Surety: CASHIER'S CHECK #0089501594 DATED 91212015 Attorney-in-fact: Address: MATERIAL AND LABOR BOND PRINCIPAL AMOUNT: $ __:3:_:6-'-17'-"2=-------- Surety: CASHIERS CHECK # 0089501690 DATED 12/21/2015 Attorney-in-fact: Address: CASH MONUMENT SECURITY: $~0~-cc----=------c-~~-~=- Amount deposited per Cash Receipt No. $ 72344 Date: 9/2/2015 AND 68/26194 AND 68/28367 12/2112015 EXHIBIT "D" LIST OF TRACT MAP CONDITIONS OF APPROVAL NOT SATISFIED PUBLIC IMPROVEMENTS Separate plans for improvements within the public right-of-way are not required. However, prior to issuance of a building and/or grading permit, all necessary improvements within the public right-of-way shall be shown on building or grading plans in accordance with established City standards or as directed by the City Engineer and/or his/her designee. The following are required for off-site improvements. The City Engineer may accept payment of in-lieu fees in lieu of the applicant completing some or all of the off- site improvements. 7. Install new driveway approach in accordance with SPPWC Standard Plan 110-2, and as directed by the City Engineer or his/her designee. 8. Relocate existing SCE power pole to be removed for the proposed driveway. 9. Install new concrete sidewalk along the length of the property frontage in accordance with SPPWC Standard Plan 113-2, or to match existing adjacent curb and gutter, and as directed by the City Engineer and/or his/her designee. 1 0. Remove and replace broken and off grade curb and gutter along the length of the property frontage in accordance with SPPWC Standard Plan 120-2, and as directed by the City Engineer or his/her designee. 11. Rehabilitate existing AC street pavement along the length of the property frontage to the centerline of the street as indicated below, and as directed by the City Engineer or his/her designee: b. Grind existing pavement to a depth of 2" and overlay new AC. 12. Underground all services to the property.