HomeMy WebLinkAboutContracts & Agreements_59-2005_CCv0001.pdf MODEL HOME AGREEMENT
Tentative Tract No. 16556
This Agreement is made and entered into this 5th day of April, 2005 by KB Home Greater
Los Angeles Inc., a California corporation, whose business address is 801 Corporate Center Drive,
Pomona, California 92768, ("Builder") and the City of Redlands, a municipal corporation("City").
RECITALS
WHEREAS,Builder is the developer of certain real property for which Tentative Tract No.
16556 has been approved and which is more particularly shown in Exhibit"A," attached hereto and
incorporated herein by this reference ("Property"); and
WHEREAS,Builder desires to construct three(3)model homes on the Property prior to the
recordation of a final map for Tentative Tract No. 16556; and
WHEREAS, Builder agrees to provide security to assure Builder's performance under this
Agreement, in the form of a surety bond from an approved insurance company("Surety") and in a
form acceptable to City;
NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged the City of Redlands and KB Home Greater Los Angeles Inc.hereby agree as follows:
AGREEMENT
Section 1. Model Homes. Builder may construct three (3) model homes on the Property
which shall be used solely for the purpose of display and sale of similar dwelling units to be
constructed within Tentative Tract No. 16556. Such model homes shall not be sold or occupied for
residential purposes until a final map is recorded creating a separate legal lot for each model home.
Section 2. Builder's Obligations. In the event a final map creating a separate lot for each
model home is not recorded by September 1,2005,Builder shall immediately demolish and remove
such model homes including any access paving and parking lots, unless a written extension is
granted in writing by City.
Section 3. Security and Surety Consent. The amount of security for the performance of this
Agreement is Sixty Thousand Dollars($60,000)in the form of a corporate surety bond approved by
City. It is understood that by providing security for this Agreement, Surety consents in advance to
any written extension of time as may be given by City to Builder and waives notices of such
extensions. The making of an application for an extension of time by Builder shall, upon granting
of the application by City, constitute a waiver by Builder and by Surety of all defenses of]aches,
estoppel, statutes of limitation, and other limitations of action in any action or proceeding filed by
City within the period of four years immediately following the date to which the time ofperformance
was extended.
Section 4. City Remedies.
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Section 4. City Remedies.
A. If Builder and Surety fall to demolish and remove the model homes as required by
this Agreement, or fall to comply with any other obligation contained herein, they shall be jointly
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and severally liable to City for any administrative expenses, costs and attorney's fees incurred in
obtaining compliance with this Agreement and such expenses,costs and fees incurred in processing
any action for damages or for any other remedies permitted by law.
B. Upon default of any obligation hereunder,and at any time after any such default,City
may make written demand upon Builder or Surety, or both, to immediately remedy the default or
complete the demolition of the model home and removal work. If the remedial activities or
completion of work are not commenced within seven days after such demand is made and are not
thereafter diligently prosecuted to completion and fullycompleted within thirty days afterthe making
of such demand(or such other time as may be contained in the demand),City may then complete or
arrange for completion of all remaining work or conduct such remedial activity as in the sole
judgement of City may be required, all at the full expense and obligation of Builder and Surety and
all without the necessity of g givinany further notice to Builder or Surety before City performs giving rms or
arranges for the performance of any remaining work and whether or not Builder or Surety have done
any of the required work at the time. In the event City elects to complete or arrange for completion
of the remaining demolition and removal work, the Community Development Director, upon such
election,may require all work by Builder or Surety to cease in order to permit adequate coordination
by City for completing the remaining work.
C. For the purpose of City or its contractor demolishing and removing the model homes
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and other improvements, Builder hereby grants an irrevocable right of entry to City, its officers,
employees,agents and contractors to enter upon the Property and to demolish and remove the model
homes and access paving.
Section 5. Compliance with law. It is agreed that all work done pursuant to this Agreement
shall conform to the rules and regulations of City at the time work is actually done. Demolition
permits shall be obtained prior to the demolition of any model home.
Section 6. Attorneys' Fees. In the event any action is commenced to enforce or interpret
the terms or conditions of this Agreement the prevailing party shall, in addition to any costs and
other relief, be entitled to the recovery of its reasonable attorneys' fees.
Section 7. Governing Law. This Agreement shall be governed by and constructed in
accordance with the laws of the State of California.
Section 8. Termination of Agreement. Upon recordation of a final map creating a separate
lot for each model home this agreement shall automatically terminate without any further action
required. At such time the City shall release the bond to the builder and/or surety.
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IN WITNESS WHEREOF Builder has caused this Agreement to be executed this first day
of March, 2005.
KB Home Greater Los Angeles Inc.
a California corpo 'on
By:
EY SA AMAN
CT OR• ORWARD PLANNING
CITY OF REDLANDS
Gilberto 41311, Mayor/Pro Tem
Attest:
Loi ie Poyze it Clerk
Date: April 5, 2005
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NOTARY ACICNONN"LEDGEMENT
State of California )
)S.S.
County of
On MG[ °!rr before me, r!✓ .. a Notary Public,
Personally appeared '"f � 3 � � / "'" personally known to me (orpreved-#e- on
e ' )to be the person(o)whose name(, )is(a&e)subscribed to the within instrument and
acknowledged to me that .(she,-they)executed the same in his(her,Lhok)authorized capacity(ice and that by 4is
(her, their) signature on the instrument the person(), or the entity upon behalf of which the person(&) acted,
executed the instrument.
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SECRETARY'S CERTIFICATE
KB HOME GREATER LOS ANGELES INC.
CERTIFIED RESOLUTIONS ,
I, Kimberly N. King,do hereby certify that I am the duly elected,qualified and acting Secretary
of KB HOME Greater Los Angeles Inc.,a California corporation.
I do further certify that the resolution attached hereto as Exhibit"A" is a true and complete
representation of such resolution which was duly adopted by the unanimous written consent of
the Board of Directors of this Corporation as of April 9, 2004 and that said resolution has not in
any way been rescinded, modified or revoked, and is still in full force and effect.
WITNESS MY HAND this 14th day of April,2004.
By)KiSml
Nl&gj, tary
EXHIBIT"A"
KB HOME GREATER LOS ANGELES INC.
RESOLUTION ADOPTED AS OF APRIL 9, 2004
BE IT RESOLVED,that Stacey Sassaman, Director,Forward Planning of
this Corporation, acting alone on behalf of this Corporation,be and she is hereby •
authorized and empowered to execute and deliver any and all documents
deemed by her necessary or appropriate in connection with this Corporation's
land improvement and development activities including but not limited to
(a) easements, development agreements,applications for land development
approvals and subdivision approvals, declarations of covenants, conditions and
restrictions, subdivision and tract maps and exhibits thereto,applications and
submissions to obtain preliminary and final subdivision public reports and
supporting documents,consultant agreements, purchase orders and
subcontracts for labor and materials; and (b) any and all other documents or
agreements deemed necessary or appropriate in connection with this
Corporation's ordinary course day-to-day business operations and within the
general intent of the foregoing resolutions.
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EXHIBIT A
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BOND 14411874
Premium: $360.00
Indemnity Company FAITHFUL PERFORMANCE BOND
KNOW ALL PEOPLE BY TME PRESENT that we,KB HOME Greater Los Angeles Inc.,
a California corporation, whose place of business is 801 Corporate Center Drive, Pomona,
California 91768,as Principal,and the Quanta * _(Surety),a corporation organized and doing
business under and by virtue of the laws of the State of California,and duly licensed by the State of
California for the purpose of making, guaranteeing or becoming sole surety upon bonds of
undertakings required or authorized b the laws of the State of California, as Surety, are held and
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firmly bound unto the City of Redlands, California, in the just and full sum of Sixty Thousand
Dollars ($60,000)lawful money of the United States of America for the payment of which, well and
truly to be made, we hereby bind ourselves, and each of our heirs, executors, administrators,
successors and assigns,jointly and severally, firmly by these presents.
WHEREAS, the Principal has applied for building permits for three model homes to be
located on certain real property for which Tentative Tract No. 16556 has been approved in
accordance with the laws of the City of Redlands and subject to the conditions of approval of the
City Council of the City of Redlands; and
WHEREAS,the Principal has executed an Agreement herewith,a copy of which is attached
hereto for the purpose of identification only, whereby the Principal promises the City of Redlands
to immediately demolish and remove the model homes if a final subdivision map creating a separate
lot for each model home is not recorded within the time period specified in said Agreement,
NOW, THEREFORE, if the Principal shall comply with all of the provisions of said
Agreement in accordance with the laws of the City of Redlands,then this obligation shall be null and
void, and otherwise, to remain in full force and effect.
The Surety and Principal agree that the liability of the Principal, and the Surety upon this
bond shall be in effect from the date hereof and remain in effect until completion,to the satisfaction
of the City of Redlands of the performance of all of the terms and conditions of said Agreement.
Such completion shall be evidenced by a statement thereof,signed by the Community Development
Director of the City of Redlands,
The Surety hereby expressly consents to any extension or extensions of time to complete the
performance of the terms and conditions of the Agreement as may be,granted to the Principal by the
City of Redlands, and hereby expressly consents to the waiver of the defenses of statutes of
limitation,laches and estoppel in the event said extension or extensions are granted.
The Surety and Principal further agree that in the event performance of the terms and
conditions of the Agreement are not completed within the time allowed by the Agreement, or any
extension of extensions thereof as maybe granted by the City of Redlands,the City of Redlands may,
at its option, and in addition to any other remedies available by law, complete or arrange for
completion of the performance of the terms and conditions,and all costs and expenses therefore shall
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become a debt due and owning the City of Redlands, as set forth in the Agreement.
The Surety, by executing this Faithful Performance Bond, warrants and alleges that it has
read the Agreement or by signing this bond shall be deemed to have read the Agreement and knows
the contents and all provisions therein contained, and shall be bound by each and every term,
condition and provision contained therein.
IN WFNESS WBEREOP, the Principal and the Surety have caused this Faithful
Performance Bond to be duly executed this 4th_ av of March, 2005.
KB HOME aterLo Angeles Inc.
a a * mia orporation.
By.
{!AC C 3 A AMAN
a Cb�FORWARD PLANNING
Surety: Quanta Indemnity Company
Y.
fycHerrin, Attorney-in-Fact
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NOTARY ACKNOWLEDGEMENT
State of California )
)S'S.
County of )
On before me,_ �, ,��" a Notary Public,
Personally appeared ' �ersonally known to me
t to be the person(4)whose name(&) is(ate)subscribed to the within instrument and
acknowledged to me that 1#(she,gyp)executed the same in his (her, their) authorized capacity 4o4 and that b}-hi6
(her, thy} signature on the instrument the person(�), or the entity upon behalf of which the person(@) acted,
executed the instrument.
Witness my hand and official seal
ME J$SA t.rE 72Z
Commission# 1488720
tcIty Public-CC7MtSTtS
Los County
My Comm.Expires
Signature of Notary
I CALIFORNIA ALL-PURPOSE ACI NOWLEDGMENT
State of California
County of Los Angeles
On March 4, 2005 before me, Tracy Aston, Notary Public,
personally appeared Joyce Herrin personally known to me to be the person
whose name is subscribed to the within instrument, and acknowledged to me that
she executed the same in her authorized capacity, and that by her signature on
the instrument the person, or the entity upon behalf of which the person acted,
executed the instrument.
WITNESS my hand and official seal.
TRACYASTON
14176261
Low-w ExPk
LOS -cf
n. 15,2037 Tracy Aston
QUANTA INDEMNITY COMPANY
[formerly National Farmers Union Standard Insurance Company]
New York City, New York 10020
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS: that Quanta Indemnity Company [formerly National Farmers Union
Standard Insurance Company], a Colorado corporation,(hereinafter the"Company"), does hereby constitute and appoint:
Joyce Herrin
of Los Angeles,California to be its true and lawful Attomey(s)-in-Fact,with full power and authority hereby conferred to
sign, seal,and execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar nature issued in
the course of its business up to apenal sum not to exceed FIFTY MILLION AND 00/100DOLLARS each,
and to bind the Company thereby as fully and to the same extent as if the same were sign. ME22Q�000- ]l
the Company. ed by the duly authorized officers of
This appointment is made under and executed pursuant to and by authority of the following By-law, which By-law is
full force and effect: now in
ARTICLE XVIII-EXECUTION OF POLICIES,BONDS,ETC.
Section 2. All bonds,undertakings, contracts,and other instruments,other than as above for and on behalf of the Company
which it is authorized by law or its charter to execute,may and shall be executed in the name and on behalf of the Company
either by the Chairman or the Deputy Chairman,if any,or the President or a Vice President,jointly with the Secretary or an
Assistant Secretary,under their respective designations,except that any one or more officers or attorneys-in-fact designated in
any resolution of the Board of Directors or the Executive Committee,or in any power of attorney executed as provided for in
Section 3 below,may execute any such bond,undertaking or other obligation as provided in such resolution or power of
attorney.
Section 3. All powers of attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the
Company,either by the Chairman or the Deputy Chairman or the President or a Vice President or an Assistant Vice President,
jointly with the Secretary or an Assistant Secretary,under their respective designations. The signature of such officers may be
engraved,printed or lithographed. The signature of each of the following officers: Chaff Deputy Chairman President,
any Vice President,any Assistant Vice President,any Secretary, any Assistant Secretary rman, p s
icate relating thereto appointing Assistant Secretaries or attorneys-
affixed by facsimile to any power of attorney or to any certif and the seal of the Company may be
in-fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof,
and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon
the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and
binding upon the Company with respect to any bond or undertaking to which it is attached.
IN WITNESS WHEREOF,this Power of Attorney has been subscribed by an authorized officer or official of the Company and
the corporate seal of Quanta Indemnity Company[formerly National Farmers Union Standard Insurance Company]has been
affixed thereto in New York City,New York this 26th day of March 2004.
Quanta Indemnity Company
[formerly National Farmers Union Standard Insurance Company]
By
MN171 Walda Decreus,Assistant Secretary
2 3
STATE OF NEW YORK) ss
COUNTY OF NEW YORK)
On this 26'h day of March, 2004,before me, a Notary Public,personally came WALDA DECREUS, to me known,and
acknowledged that she is an Assistant Secretary of Quanta Indemnity Company[formerly National Farmers Union Standard
Insurance Company];that she knows the seal of said corporation-,and that she executed the above Power of Attorney and
affixed the corporate seal of Quanta Indemnity Company[formerly National Farmers Union Standard Insurance Company]
thereto with the authority and at the direction of said corporation.
411
Carol E.Cincola
Notary Public-State of New York Notary Public
No;01014759623
Qualified in Westchester County
My Commission Expires June 30,2006
CERTIFICATE
1,the undersigned,Secretary of Quanta Indemnity Company[formerly National Farmers Union Standard Insurance Company],
do hereby certify that the foregoing Power of Attorney is still in full force and effect,and further certify that Article XVIII,
Sections 2 and 3 of the By-laws of the Company are now in force.
IN TESTIMONY WHEREOF I have subscribed my name and affixed the seal of said Company. Dated this 4th day of
MarQh 2005
By
Martha G. bannerman,Secretary
.............
2003 :>
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0101K
IMPORTANT DISCLOSURE NOTICE
REGARDING
TERRORISM RISK INSURANCE ACT OF 2002
Under the provisions of the Terrorism Risk Insurance Act of 2002 ("The Act*), we
are providing this disclosure notice for bonds for which a subsidiary of Quanta
U.S. Holdings, Inc. is the surety. You are hereby notified that any losses caused
by a certified act of terrorism as defined by The Act may be partially reimbursed
by the Federal Government under a formula established by The Act.
The term "certified act of terrorism" means any act certified by the Secretary of
the Treasury, in concurrence with the Secretary of State and the Attorney
General of the United States, to be an act of terrorism; to be a violent act or an
act that is dangerous to human life, property or infrastructure; to have resulted in
damage within the United States, or outside the United States in the case of an
air carrier or vessel or the premises of a United States Mission; and to have been
committed by an individual or individuals acting on behalf of any foreign person
or foreign interest, as part of an effort to coerce the civilian population of the
United States or influence the policy or affect the conduct of the Federal
Govemment by coercion_
Theformula established by The Act requires the Federal Government to pay
90% of losses arising from certified acts of terrorism that exceed the statutorily
established deductible to be paid by the surety.
Acts of terrorism are not excluded from any surety bonds issued on your behalf
and your premium charge for terrorism coverage is$0.00.
This is a notice regarding your terrorism coverage which should be used for informational
purposes only. Please refer to the bond form for the terms and conditions regarding your
terrorism coverage.
Form Nurnber WR 10001 (Ed.4104)
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MINUTES of a regular meeting of the City Council of the City of Redlands held in the
Council Chambers, Civic Center, 35 Cajon Street, on April 5, 2005, at
3:00 P.M.
PRESENT Gilberto Gil, Mayor Pro Tern
Pat Gilbreath, Councilmember
Gary George, Councilmember
Jon Harrison, Councilmember
ABSENT Susan Peppler, Mayor
STAFF John Davidson, City Manager; Daniel J. McHugh, City Attorney; Lorrie Poyzer,
City Clerk; Beatrice Sanchez, Deputy City Clerk (evening session); Michael
Reynolds, City Treasurer; Jim Bueermann, Police Chief, Mel Enslow, Fire
Chief(afternoon session); Mitch McKee, Fire Battalion Chief(evening session);
Donald Gee, Redevelopment Agency Director(afternoon session); Tina Kundig,
Finance Director; Ronald C. Mutter, Public Works Director; Maijie Pettus,
Administrative Services Director; Gary G. Phelps, Municipal Utilities Director;
and Jeffrey L. Shaw, Community Development Director
The meeting was opened with an invocation by Councilmember George
followed by the pledge of allegiance.
CONSENT CALENDAR
Minutes - On motion of Councilmember George seconded by Councilmember
Gilbreath, the minutes of the special meeting of March 15, 2005, and the regular
meeting of March 15, 2005, were approved as submitted.
Bills and Salaries - On motion of Councilmember George, seconded by
Councilmember Gilbreath, payment of bills and salaries was acknowledged.
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Planning Commission Actions - On motion of Councilmember George,
seconded by Councilmember Gilbreath, the report of the Planning Commission
meeting held on March 22, 2005, was acknowledged as received.
Model Home Agreement - Tract No 16556 - On motion of Councilmember
George, seconded by Councilmember Gilbreath, the City Council
approved, by AYE votes of all present, a model home agreement for Tract
No. 16566 for property located between San Bernardino and Pennsylvania
Avenues, approximately 300 feet east of University Street, and accepted the
associated faithful performance bond in the amount of$60,000.00 to allow
the development of a three-unit model home complex prior to the
recordation of the final map subject to the conditions recommended by
staff.
April 5, 2005
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